Document:

Warrant Agreement

 Exhibit 4.1 

 
  

 
 WARRANT AGREEMENT 

Dated as of 

June 9, 2010 

between 

STERLING BANCSHARES, INC. 

and 
 AMERICAN
STOCK TRANSFER & TRUST COMPANY, LLC 
 as Warrant Agent 

 
  

Warrants for 

Common Stock 
  

 
  

 
  

 Table of Contents 

 

					
	 	 	 	  	Page
	
	ARTICLE I
	
	DEFINITIONS
	 Section 1.01.
	 	Definitions.	  	1
	 Section 1.02.
	 	Other Definitions.	  	3
	 Section 1.03.
	 	Rules of Construction.	  	3
	
	ARTICLE II
	
	WARRANTS
			
	 Section 2.01.
	 	Form.	  	3
	 Section 2.02.
	 	Execution and Countersignature.	  	5
	 Section 2.03.
	 	Registry.	  	5
	 Section 2.04.
	 	Transfer and Exchange.	  	6
	 Section 2.05.
	 	Definitive Warrants.	  	8
	 Section 2.06.
	 	Replacement Certificates.	  	9
	 Section 2.07.
	 	Outstanding Warrants.	  	9
	 Section 2.08.
	 	Cancellation.	  	9
	 Section 2.09.
	 	CUSIP Numbers.	  	10
	
	ARTICLE III
	
	EXERCISE TERMS
			
	 Section 3.01.
	 	Exercise.	  	10
	 Section 3.02.
	 	Manner of Exercise and Issuance of Shares.	  	10
	 Section 3.03.
	 	Covenant to Make Stock Certificates Available.	  	10
	
	ARTICLE IV
	
	ANTIDILUTION PROVISIONS
			
	 Section 4.01.
	 	Antidilution Adjustments; Notice of Adjustment.	  	11
	 Section 4.02.
	 	Adjustment to Warrant Certificate.	  	11
	
	ARTICLE V
	
	WARRANT AGENT
			
	 Section 5.01.
	 	Appointment of Warrant Agent.	  	11
	 Section 5.02.
	 	Rights and Duties of Warrant Agent.	  	11
	 Section 5.03.
	 	Individual Rights of Warrant Agent.	  	12
	 Section 5.04.
	 	Warrant Agent’s Disclaimer.	  	13
	 Section 5.05.
	 	Compensation and Indemnity.	  	13
	 Section 5.06.
	 	Successor Warrant Agent.	  	13

  

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	ARTICLE VI
	
	MISCELLANEOUS
			
	 Section 6.01.
	 	Persons Benefitting.	  	16
	 Section 6.02.
	 	Amendment.	  	16
	 Section 6.03.
	 	Notices.	  	16
	 Section 6.04.
	 	Governing Law.	  	17
	 Section 6.05.
	 	Successors.	  	17
	 Section 6.06.
	 	Multiple Originals.	  	17
	 Section 6.07.
	 	Inspection of Agreement.	  	18
	 Section 6.08.
	 	Table of Contents.	  	18
	 Section 6.09.
	 	Severability.	  	18
			
	 EXHIBIT A
	 	Form of Warrant	  	

  

 ii 

 WARRANT AGREEMENT dated as of June 9, 2010 (this “Agreement”), between
Sterling Bancshares, Inc. (the “Company”) and American Stock Transfer & Trust Company, LLC as Warrant Agent (the “Warrant Agent”). 

The Company has issued the warrants described herein (each, a “Warrant” and collectively, the
“Warrants”) to the U.S. Department of the Treasury (“Treasury”) in connection with Treasury’s Capital Purchase Program pursuant to the Letter Agreement dated December 12, 2008 between the Company and
Treasury, which agreement incorporates by reference the Securities Purchase Agreement – Standard Terms attached thereto as Exhibit A. Treasury desires to sell all or a portion of the Warrants at any time or from time to time. 

Each Warrant entitles the registered holder thereof (the “Holder”) to purchase one share of Common Stock, subject to the
provisions of this Agreement and the relevant Warrant Certificate. Each Warrant Certificate (including any Global Warrant) shall evidence such number of Warrants as is set forth therein, subject to adjustment pursuant to the provisions of the
Warrant Certificate. 
 The Warrants and the shares of Common Stock issuable upon exercise of the Warrants will be freely
transferable by Holders that are not Affiliates of the Company. The Company desires the Warrant Agent to act on behalf of the Company in connection with the registration, transfer, exchange, redemption, exercise and cancellation of the Warrants as
provided herein and the Warrant Agent is willing to so act. 
 Each party agrees as follows for the benefit of the other party
and for the equal and ratable benefit of the Holders of Warrants: 
 ARTICLE I 

DEFINITIONS 

Section 1.01. Definitions. 

“Affiliate” means, with respect to any Person, any Person directly or indirectly controlling, controlled by or under
common control with, such other Person. For purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”) when used with respect to any
Person, means the possession, directly or indirectly, of the power to cause the direction of management and/or policies of such Person, whether through the ownership of voting securities by contract or otherwise. 

“Agent Members” means the securities brokers and dealers, banks and trust companies, clearing organizations and certain
other organizations that are participants in the Depositary’s system. 
 “business day” means any day
except Saturday, Sunday and (i) at any time when the Warrants are listed on the NASDAQ Stock Market, any day on which the NASDAQ Stock Market is authorized or required by law or other governmental actions to close or (ii) at any time when
the Warrants are not listed on the NASDAQ Stock Market, any day on which banking institutions in the State of New York are authorized or required by law or other governmental actions to close. 

 

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 “Common Stock” means the common stock, par value $1.00 per share, of the
Company. 
 “Definitive Warrant” means a Warrant Certificate in definitive form that is not deposited with the
Depositary or with the Warrant Agent as custodian for the Depositary. 
 “Depositary” means The Depository
Trust Company, its nominees and their respective successors. 
 “Exchange Act” means the U.S. Securities
Exchange Act of 1934, as amended, or any successor statute, and the rules and regulations promulgated thereunder. 

“Exercise Price” has the meaning set forth in the form of Warrant Certificate attached as Exhibit A hereto. 

“Expiration Time” has the meaning set forth in the form of Warrant Certificate attached as Exhibit A hereto. 

“Officer” means the Chief Executive Officer, the President, the Chief Financial Officer, any Vice President, the
Treasurer, any Assistant Treasurer, the Secretary or any Assistant Secretary of the Company. 
 “Officers’
Certificate” means a certificate signed by two Officers. 
 “Opinion of Counsel” means a written
opinion from legal counsel who is reasonably acceptable to the Warrant Agent. Such counsel may be an employee of or counsel to the Company or the Warrant Agent. 

“Person” means an individual, corporation, partnership, joint venture, association, joint-stock company, limited
liability company, limited liability partnership, trust, unincorporated organization, or government or any agency or political subdivision thereof or any other entity. 

“Shares” has the meaning set forth in the form of Warrant Certificate attached as Exhibit A hereto. 

“Transfer Agent” has the meaning set forth in the form of Warrant Certificate attached as Exhibit A hereto. 

“Warrant Certificate” means any fully registered certificate (including a Global Warrant) issued by the Company and
authenticated by the Warrant Agent under this Agreement evidencing Warrants, in the form attached as Exhibit A hereto. 

“Warrant Share Number” has the meaning set forth in the form of Warrant Certificate attached as Exhibit A hereto.

  

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 Section 1.02. Other Definitions. 

 

			
	 Term
	  	Defined in
Section
	 “Agreement”
	  	Recitals
	 “Company”
	  	Recitals
	 “Global Warrant”
	  	2.01(a)
	 “Holders”
	  	Recitals
	 “Registry”
	  	2.03
	 “Warrant”
	  	Recitals
	 “Warrant Agent”
	  	Recitals

 Section 1.03.
Rules of Construction. 
 Unless the text otherwise requires: 

(i) a defined term has the meaning assigned to it; 

(ii) an accounting term not otherwise defined has the meaning assigned to it in accordance with generally accepted
accounting principles as in effect on the date hereof; 
 (iii) “or” is not exclusive; 

(iv) “including” means including, without limitation; and 

(v) words in the singular include the plural and words in the plural include the singular. 

ARTICLE II 

WARRANTS 

Section 2.01. Form. 

(a) Global Warrants. Except as provided in Section 2.04 or 2.05, Warrants issued upon any transfer or exchange thereof shall
be issued in the form of one or more permanent global Warrants in fully registered form with the global securities legend set forth in Exhibit A hereto (each, a “Global Warrant”), which shall be deposited on behalf of the Company
with the Warrant Agent, as custodian for the Depositary (or with such other custodian as the Depositary may direct), and registered in the name of the Depositary or a nominee of the Depositary, duly executed by the Company and countersigned by the
Warrant Agent as hereinafter provided. 
  

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 (b) Book-Entry Provisions. This Section 2.01(b) shall apply only to a Global
Warrant deposited with or on behalf of the Depositary. 
 (i) The Company shall execute and the Warrant Agent
shall, in accordance with Section 2.02, countersign, by either manual or facsimile signature, and deliver one or more Global Warrants that (A) shall be registered in the name of the Depositary or the nominee of the Depositary and
(B) shall be delivered by the Warrant Agent to the Depositary or pursuant to the Depositary’s instructions or held by the Warrant Agent as custodian for the Depositary. Each Global Warrant shall be dated the date of its countersignature by
the Warrant Agent. 
 (ii) Agent Members shall have no rights under this Agreement with respect to any Global
Warrant held on their behalf by the Depositary or by the Warrant Agent as the custodian of the Depositary or under such Global Warrant except to the extent set forth herein or in a Warrant Certificate, and the Depositary may be treated by the
Company, the Warrant Agent and any agent of the Company or the Warrant Agent as the absolute owner of such Global Warrant for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall (A) prevent the Company, the Warrant
Agent or any agent of the Company or the Warrant Agent from giving effect to any written certification, proxy or other authorization furnished by the Depositary or (B) impair, as between the Depositary and the Agent Members, the operation of
customary practices of the Depositary governing the exercise of the rights of a holder of a beneficial interest in any Warrant. The rights of beneficial owners in a Global Warrant shall be exercised through the Depositary subject to the applicable
procedures of the Depositary except to the extent set forth herein or in a Warrant Certificate. 
 (c) Definitive
Securities. Except as provided in Section 2.04 or 2.05, owners of beneficial interests in Global Warrants will not be entitled to receive physical delivery of Definitive Warrants. 

(d) Warrant Certificates. Warrant Certificates shall be in substantially the form attached as Exhibit A hereto and shall be typed,
printed, lithographed or engraved or produced by any combination of such methods or produced in any other manner permitted by the rules of any securities exchange on which the Warrants may be listed, all as determined by the Officer or Officers
executing such Warrant Certificates, as evidenced by their execution thereof. Any Warrant Certificate shall have such insertions as are appropriate or required or permitted by this Agreement and may have such letters, numbers or other marks of
identification and such legends and endorsements, stamped, printed, lithographed or engraved thereon, (i) as the Company may deem appropriate and as are not inconsistent with the provisions of this Agreement, (ii) such as may be required
to comply with this Agreement, any law or any rule of any securities exchange on which the Warrants may be listed, and (iii) such as may be necessary to conform to customary usage. 

 

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 Section 2.02. Execution and Countersignature. 

At least one Officer shall sign the Warrant Certificates for the Company by manual or facsimile signature. 

If an Officer whose signature is on a Warrant Certificate no longer holds that office at the time the Warrant Agent countersigns the
Warrant Certificate, the Warrants evidenced by such Warrant Certificate shall be valid nevertheless. 
 The Warrant Agent shall
initially countersign, by either manual or facsimile signature, and deliver Warrant Certificates entitling the Holders thereof to purchase in the aggregate not more than 2,615,557 shares of Common Stock (subject to adjustment as provided in such
Warrant Certificates) upon a written order of the Company signed by one Officer of the Company. Each Warrant Certificate shall be dated the date of its countersignature by the Warrant Agent. 

At any time and from time to time after the execution of this Agreement, the Warrant Agent shall upon receipt of a written order of the
Company signed by an Officer of the Company countersign, by either manual or facsimile signature, for issue a Warrant Certificate evidencing the number of Warrants specified in such order; provided, however, that the Warrant Agent
shall be entitled to receive an Officers’ Certificate and an Opinion of Counsel of the Company that it may reasonably request in connection with such countersignature of Warrants. Such order shall specify the number of Warrants to be evidenced
on the Warrant Certificate to be countersigned, the date on which such Warrant Certificate is to be countersigned and the number of Warrants then authorized. 

The Warrants evidenced by a Warrant Certificate shall not be valid until an authorized signatory of the Warrant Agent countersigns the
Warrant Certificate either manually or by facsimile signature. Such signature shall be solely for the purpose of authenticating the Warrant Certificate and shall be conclusive evidence that the Warrant Certificate so countersigned has been duly
authenticated and issued under this Agreement. 
 Section 2.03. Registry. 

The Warrants shall be issued in registered form only. The Warrant Agent shall keep a registry (the “Registry”) of the
Warrant Certificates and of their transfer and exchange. The Registry shall show the names and addresses of the respective Holders and the date and number of Warrants evidenced on the face of each of the Warrant Certificates. The Holder of any
Global Warrant will be the Depositary or a nominee of the Depositary in whose name the Global Warrant is registered. The Warrant holdings of Agent Members will be recorded on the books of the Depositary. The beneficial interests in the Global
Warrant held by customers of Agent Members will be reflected on the books and records of such Agent Members and will not be known to the Warrant Agent, the Company or to the Depositary. 

Except as otherwise provided herein or in the Warrant Certificate, the Company and the Warrant Agent may deem and treat any Person in
whose name a Warrant Certificate is registered in the Registry as the absolute owner of such Warrant Certificate for all purposes whatsoever and neither the Company nor the Warrant Agent shall be affected by notice to the contrary. 

 

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 Section 2.04. Transfer and Exchange. 

(a) Transfer and Exchange of Global Warrants. 

(i) Registration of the transfer and exchange of Global Warrants or beneficial interests therein shall be effected through
the book-entry system maintained by the Depositary, in accordance with this Agreement and the Warrant Certificates and the procedures of the Depositary therefor. A transferor of a beneficial interest in a Global Warrant (or the relevant Agent Member
on behalf of such transferor) shall deliver to the Warrant Agent (x) a written order given in accordance with the Depositary’s procedures containing information regarding the account of the Agent Member to be credited with a beneficial
interest in the Global Warrant and (y) a written instruction of transfer in form satisfactory to the Warrant Agent, duly executed by the Holder thereof or by his attorney, duly authorized in writing. Additionally, prior to the Holder
registering the transfer or making the exchange as requested, the requirements for such transfer or exchange to be issued in a name other than the registered Holder shall be met. Such requirements include, inter alia, a signature guarantee from an
eligible guarantor institution participating in a signature guarantee program approved by the Securities Transfer Association, and any other reasonable evidence of authority that may be required by the Warrant Agent. Upon satisfaction of the
conditions in this Clause (i), the Warrant Agent shall, in accordance with such instructions, instruct the Depositary to credit to the account of the Agent Member specified in such instructions a beneficial interest in the Global Warrant and to
debit the account of the Agent Member making the transfer of the beneficial interest in the Warrant being transferred. 

(ii) Notwithstanding any other provisions of this Agreement (other than the provisions set forth in Section 2.05), a
Global Warrant may only be transferred as a whole, and not in part, and only by (i) the Depositary, to a nominee of the Depositary, (ii) a nominee of the Depositary, to the Depositary or another nominee of the Depositary, or (iii) the
Depositary or any such nominee to a successor Depositary or its nominee. 
 (iii) In the event that a Global
Warrant is exchanged and transferred for Definitive Warrants pursuant to Section 2.05, such Warrants may be exchanged only in accordance with such procedures as are substantially consistent with the provisions of this Section 2.04 and the
requirements of any Warrant Certificate and such other procedures as may from time to time be adopted by the Company that are not inconsistent with the terms of this Agreement or of any Warrant Certificate. 

(b) Cancellation or Adjustment of Global Warrant. At such time as all beneficial interests in a Global Warrant have been exchanged
for Definitive Warrants, redeemed, repurchased or canceled, such Global Warrant shall be returned to the Depositary for cancellation or retained and canceled by the Warrant Agent. At any time prior to such cancellation, if any beneficial interest in
a Global Warrant is transferred or exchanged for Definitive Warrants, redeemed, repurchased or canceled, the number of Warrants represented by such Global Warrant shall be reduced and an adjustment shall be made on the books and records of the
Warrant Agent to reflect such reduction. 
  

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 (c) Obligations with Respect to Transfers and Exchanges of Warrants. 

(i) To permit registrations of transfers and exchanges, the Company shall execute and the Warrant Agent shall countersign,
by either manual or facsimile signature, Global Warrants and Definitive Warrants as required pursuant to the provisions of Section 2.02 and this Section 2.04. 

(ii) No service charge shall be made to a Holder for any registration of transfer or exchange, but the Company may require
payment of a sum sufficient to cover any transfer tax, assessments, or similar governmental charge payable in connection therewith. 

(iii) All Warrants issued upon any registration of transfer or exchange pursuant to the terms of this Agreement shall be
the valid obligations of the Company, entitled to the same benefits under this Agreement as the Warrants surrendered upon such registration for transfer or exchange. 

(d) No Obligation of the Warrant Agent. 

(i) The Warrant Agent shall have no responsibility or obligation to any beneficial owner of a Global Warrant, any Agent
Member or other Person with respect to the accuracy of the records of the Depositary or its nominee or of any participant or member thereof, with respect to any ownership interest in the Warrants or with respect to the delivery to any Agent Member,
beneficial owner or other Person (other than the Depositary) of any notice or the payment of any amount, under or with respect to such Warrants. All notices and communications to be given to the Holders and all payments to be made to Holders under
the Warrants shall be given or made only to or upon the order of the registered Holders (which shall be the Depositary or its nominee in the case of a Global Warrant). The rights of beneficial owners in any Global Warrant shall be exercised only
through the Depositary subject to the applicable rules and procedures of the Depositary. The Warrant Agent may rely and shall be fully protected in relying upon information furnished by the Depositary with respect to its members, participants and
any beneficial owners. 
 (ii) The Warrant Agent shall have no obligation or duty to monitor, determine or
inquire as to compliance with any restrictions on transfer imposed under this Agreement or under applicable law with respect to any transfer of any interest in any Warrant (including any transfer between or among the Agent Members or beneficial
owners in any Global Warrant) other than to require delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by, the terms of this Agreement, and to examine the same
to determine substantial compliance as to form with the express requirements hereof. 
  

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 Section 2.05. Definitive Warrants. 

(a) Beneficial interests in a Global Warrant deposited with the Depositary or with the Warrant Agent as custodian for the Depositary
pursuant to Section 2.01 shall be transferred to each beneficial owner thereof in the form of Definitive Warrants evidencing a number of Warrants equivalent to such owner’s beneficial interest in such Global Warrant, in exchange for such
Global Warrant, only if such transfer complies with Section 2.04 and (i) the Depositary notifies the Company that it is unwilling or unable to continue as Depositary for such Global Warrant or if at any time the Depositary ceases to be a
“clearing agency” registered under the Exchange Act and, in each such case, a successor Depositary is not appointed by the Company within 90 days of such notice, (ii) the Company, in its sole discretion, notifies the Warrant Agent in
writing that it elects to cause the issuance of Definitive Warrants under this Agreement, or (iii) the Company shall be adjudged a bankrupt or insolvent or makes an assignment for the benefit of its creditors or institutes proceedings to be
adjudicated a bankrupt or shall consent to the filing of a bankruptcy proceeding against it, or shall file a petition or answer or consent seeking reorganization under Federal bankruptcy laws or any other similar applicable Federal or State law, or
shall consent to the filing of any such petition, or shall consent to the appointment of a receiver or custodian of all or any substantial part of its property, or shall admit in writing its inability to pay or meet its debts as they mature, or if a
receiver or custodian of it or all or any substantial part of its property shall be appointed, or if a public officer shall have taken charge or control of the Company or of its property or affairs, for the purpose of rehabilitation, conservation or
liquidation. 
 (b) Any Global Warrant that is transferable to the beneficial owners thereof in the form of Definitive Warrants
pursuant to this Section 2.05 shall be surrendered by the Depositary to the Warrant Agent to be so transferred, in whole or from time to time in part, without charge, and the Warrant Agent shall countersign, by either manual or facsimile
signature, and deliver to each beneficial owner in the name of such beneficial owner, upon such transfer of each portion of such Global Warrant, Definitive Warrants evidencing a number of Warrants equivalent to such beneficial owner’s
beneficial interest in the Global Warrant. The Warrant Agent shall register such transfer in the Registry, and upon such transfer the surrendered Global Warrant shall be cancelled by the Warrant Agent. 

(c) All Definitive Warrants issued upon registration of transfer pursuant to this Section 2.05 shall be the valid obligations of the
Company, evidencing the same obligations of the Company and entitled to the same benefits under this Agreement and the Global Warrant surrendered for registration of such transfer. 

(d) Subject to the provisions of Section 2.05(b), the registered Holder of a Global Warrant may grant proxies and otherwise
authorize any Person, including Agent Members and Persons that may hold interests through Agent Members, to take any action that a Holder is entitled to take under this Agreement or the Warrants. 

(e) In the event of the occurrence of any of the events specified in Section 2.05(a), the Company will promptly make available to
the Warrant Agent a reasonable supply of Definitive Warrants in definitive, fully registered form. 
  

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 (f) Neither the Company nor the Warrant Agent will be liable or responsible for any
registration or transfer of any Warrants that are registered or to be registered in the name of a fiduciary or the nominee of a fiduciary. 

Section 2.06. Replacement Certificates. 

If a mutilated Warrant Certificate is surrendered to the Warrant Agent or if the Holder of a Warrant Certificate provides proof reasonably
satisfactory to the Company and the Warrant Agent that the Warrant Certificate has been lost, destroyed or wrongfully taken, the Company shall issue and the Warrant Agent shall countersign, by either manual or facsimile signature, a replacement
Warrant Certificate of like tenor and representing an equivalent number of Warrants, if the reasonable requirements of the Warrant Agent and of Section 8-405 of the Uniform Commercial Code as in effect in the State of New York are met. If
required by the Warrant Agent or the Company, such Holder shall furnish an indemnity bond sufficient in the reasonable judgment of the Company and the Warrant Agent to protect the Company and the Warrant Agent from any loss that either of them may
suffer if a Warrant Certificate is replaced. The Company and the Warrant Agent may charge the Holder for their expenses in replacing a Warrant Certificate. Every replacement Warrant Certificate evidences an additional obligation of the Company.

 Section 2.07. Outstanding Warrants. 

The Warrants outstanding at any time are all Warrants evidenced on all Warrant Certificates authenticated by the Warrant Agent except for
those canceled by it and those delivered to it for cancellation. A Warrant ceases to be outstanding if the Company or an Affiliate of the Company holds the Warrant. 

If a Warrant Certificate is replaced pursuant to Section 2.06, the Warrants evidenced thereby cease to be outstanding unless the
Warrant Agent and the Company receive proof satisfactory to them that the replaced Warrant Certificate is held by a bona fide purchaser. 

Section 2.08. Cancellation. 

In the event the Company shall purchase or otherwise acquire Definitive Warrants, the same shall thereupon be delivered to the Warrant
Agent for cancellation. 
 The Warrant Agent and no one else shall cancel and destroy all Warrant Certificates surrendered for
registration of transfer, exchange, replacement, exercise or cancellation and deliver a certificate of such destruction to the Company unless the Company directs the Warrant Agent to deliver canceled Warrant Certificates to the Company. The Company
may not issue new Warrant Certificates to replace Warrant Certificates to the extent they evidence Warrants that have been exercised or Warrants that the Company has purchased or otherwise acquired. 

 

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 Section 2.09. CUSIP Numbers. 

The Company, in issuing the Warrants, may use “CUSIP” numbers (if then generally in use) and, if so, the Warrant Agent shall use
“CUSIP” numbers in notices as a convenience to Holders; provided, however, that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Warrant Certificates or
as contained in any notice and that reliance may be placed only on the other identification numbers printed on the Warrant Certificates. 

ARTICLE III 

EXERCISE TERMS 

Section 3.01. Exercise. 

The Exercise Price of each Warrant, the Warrant Share Number, the number of Warrants evidenced by any Warrant Certificate and the
Expiration Time of each Warrant shall be set forth in the related Warrant Certificate. The Exercise Price of each Warrant and the Warrant Share Number are subject to adjustment pursuant to the terms set forth in the Warrant Certificate. 

Section 3.02. Manner of Exercise and Issuance of Shares. 

Warrants may be exercised in the manner set forth in Section 3 of the Warrant Certificate, and upon any such exercise, Shares shall
be issued in the manner set forth in Section 4 of the Warrant Certificate. 
 Section 3.03. Covenant to Make Stock
Certificates Available. 
 (a) The Warrant Agent is hereby authorized to requisition from time to time from any stock transfer
agents of the Company stock certificates required to honor outstanding Warrants upon exercise thereof in accordance with the terms of this Agreement, and the Company agrees to authorize and direct such transfer agents to comply with all such
requests of the Warrant Agent. The Company shall supply such transfer agents with duly executed stock certificates for such purposes and shall provide or otherwise make available any cash or scrip that may be payable upon exercise of Warrants as
provided herein and in each Warrant Certificate. 
 (b) The Warrant Agent is hereby authorized to create a special account for
the reserve of shares of Common Stock to be issued upon exercise of the Warrants. 
 (c) In connection with the shares of Common
Stock to be issued upon exercise, the Company shall, if so required by the Warrant Agent, provide an opinion of counsel, stating that all such shares, when issued, will be: 

(i) registered, or subject to a valid exemption from registration, under the Securities Act of 1933, as amended, and all
material and necessary State securities law filings will have been made with respect to such shares; and 
 (ii)
validly issued, fully paid and non-assessable. 
  

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 ARTICLE IV 

ANTIDILUTION PROVISIONS 

Section 4.01. Antidilution Adjustments; Notice of Adjustment. 

The Exercise Price and the Warrant Share Number shall be subject to adjustment from time to time as provided in Section 12 of the
Warrant Certificate. Whenever the Exercise Price or the Warrant Share Number is so adjusted or is proposed to be adjusted as provided in Section 12 of the Warrant Certificate, the Company shall deliver to the Warrant Agent the notices or
statements, and shall cause a copy of such notices or statements to be sent or communicated to each Holder pursuant to Section 6.03, as provided in Sections 12(H) and (I) of the Warrant Certificate. 

Section 4.02. Adjustment to Warrant Certificate. 

The form of Warrant Certificate need not be changed because of any adjustment made pursuant to the Warrant Certificate, and Warrant
Certificates issued after such adjustment may state the same Exercise Price and the same Warrant Share Number as are stated in the Warrant Certificates initially issued pursuant to this Agreement. The Company, however, may at any time in its sole
discretion make any change in the form of Warrant Certificate that it may deem appropriate to give effect to such adjustments and that does not affect the substance of the Warrant Certificate, and any Warrant Certificate thereafter issued or
countersigned, whether in exchange or substitution for an outstanding Warrant Certificate or otherwise, may be in the form as so changed. 

ARTICLE V 

WARRANT AGENT 

Section 5.01. Appointment of Warrant Agent. 

The Company hereby appoints the Warrant Agent to act as agent for the Company in accordance with the provisions of this Agreement and the
Warrant Agent hereby accepts such appointment. The Warrant Agent shall not be liable for anything that it may do or refrain from doing in connection with this Agreement, except for its own gross negligence, willful misconduct or bad faith.

 Section 5.02. Rights and Duties of Warrant Agent. 

(a) Agent for the Company. In acting under this Warrant Agreement and in connection with the Warrant Certificates, the Warrant
Agent is acting solely as agent of the Company and does not assume any obligation or relationship of agency or trust for or with any of the holders of Warrant Certificates or beneficial owners of Warrants. 

(b) Counsel. The Warrant Agent may consult with counsel satisfactory to it (who may be counsel to the Company), and the advice of
such counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in accordance with the advice of such counsel. 

 

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 (c) Documents. The Warrant Agent shall be protected and shall incur no liability for
or in respect of any action taken or thing suffered by it in reliance upon any Warrant Certificate, notice, direction, consent, certificate, affidavit, statement or other paper or document reasonably believed by it to be genuine and to have been
presented or signed by the proper parties. 
 (d) No Implied Obligations. The Warrant Agent shall be obligated to perform
only such duties as are specifically set forth herein and in the Warrant Certificates, and no implied duties or obligations of the Warrant Agent shall be read into this Agreement or the Warrant Certificates against the Warrant Agent. The Warrant
Agent shall not be under any obligation to take any action hereunder that may involve it in any expense or liability for which it does not receive indemnity if such indemnity is reasonably requested. The Warrant Agent shall not be accountable or
under any duty or responsibility for the use by the Company of any of the Warrant Certificates countersigned by the Warrant Agent and delivered by it to the Holders or on behalf of the Holders pursuant to this Agreement or for the application by the
Company of the proceeds of the Warrants. The Warrant Agent shall have no duty or responsibility in case of any default by the Company in the performance of its covenants or agreements contained herein or in the Warrant Certificates or in the case of
the receipt of any written demand from a Holder with respect to such default, including any duty or responsibility to initiate or attempt to initiate any proceedings at law or otherwise. 

(e) Not Responsible for Adjustments or Validity of Stock. The Warrant Agent shall not at any time be under any duty or
responsibility to any Holder to determine whether any facts exist that may require an adjustment of the Warrant Share Number or the Exercise Price, or with respect to the nature or extent of any adjustment when made, or with respect to the method
employed herein or in any supplemental agreement provided to be employed, in making the same. The Warrant Agent shall not be accountable with respect to the validity or value of any Shares or of any securities or property that may at any time be
issued or delivered upon the exercise of any Warrant or upon any adjustment pursuant to Section 12 of the Warrant Certificate, and it makes no representation with respect thereto. The Warrant Agent shall not be responsible for any failure of
the Company to make any cash payment or to issue, transfer or deliver any Shares or stock certificates upon the surrender of any Warrant Certificate for the purpose of exercise or upon any adjustment pursuant to Section 12 of the Warrant
Certificate, or to comply with any of the covenants of the Company contained in the Warrant Certificate. 
 (f) If the Warrant
Agent shall receive any notice or demand (other than Notice of Exercise of Warrants) addressed to the Company by the Holder of a Warrant, the Warrant Agent shall promptly forward such notice or demand to the Company. 

Section 5.03. Individual Rights of Warrant Agent. 

The Warrant Agent and any stockholder, director, officer or employee of the Warrant Agent may buy, sell or deal in any of the Warrants or
other securities of the Company or its affiliates or become pecuniarily interested in transactions in which the Company or its 

 

 12 

 
affiliates may be interested, or contract with or lend money to the Company or its affiliates or otherwise act as fully and freely as though it were not the Warrant Agent under this Agreement.
Nothing herein shall preclude the Warrant Agent from acting in any other capacity for the Company or for any other legal entity. 

Section 5.04. Warrant Agent’s Disclaimer. 

The Warrant Agent shall not be responsible for, and makes no representation as to the validity or adequacy of, this Agreement (except the
due and valid authorized execution and delivery of this Agreement by the Warrant Agent) or the Warrant Certificates (except the due countersignature of the Warrant Certificate(s) by the Warrant Agent) and it shall not be responsible for any
statement in this Agreement or the Warrant Certificates other than its countersignature thereon. 
 Section 5.05.
Compensation and Indemnity. 
 (a) The Company agrees to pay the Warrant Agent from time to time reasonable compensation for its
services as agreed and to reimburse the Warrant Agent upon request for all reasonable out-of-pocket expenses incurred by it, including the reasonable compensation and expenses of the Warrant Agent’s agents and counsel as agreed. The Company
shall indemnify the Warrant Agent, its officers, directors, agents and counsel against any loss, liability or expense (including reasonable agents’ and attorneys’ fees and expenses) incurred by it without gross negligence, willful
misconduct or bad faith on its part arising out of or in connection with the acceptance or performance of its duties under this Agreement. The Warrant Agent shall notify the Company promptly of any claim for which it may seek indemnity. The Company
need not reimburse any expense or indemnify against any loss or liability incurred by the Warrant Agent through willful misconduct, gross negligence or bad faith. The Company’s payment obligations pursuant to this Section shall survive the
termination of this Agreement. 
 (b) The Warrant Agent shall be responsible for and shall indemnify and hold the Company
harmless from and against any and all losses, damages, costs, charges, counsel fees, payments, expenses and liability arising out of or attributable to the Warrant Agent’s refusal or failure to comply with the terms of this Agreement, or which
arise out of Warrant Agent’s gross negligence, bad faith or willful misconduct or which arise out of the breach of any representation or warranty of the Warrant Agent hereunder, for which the Warrant Agent is not entitled to indemnification
under this Agreement; provided, however, the Warrant Agent’s aggregate liability hereunder during any term of this Agreement with respect to, arising from, or arising in connection with this Agreement, whether in contract, or in tort, or
otherwise, is limited to, and shall not exceed, the amounts paid hereunder by the Company to the Warrant Agent as fees and charges, but not including reimbursable expenses. 

To secure the Company’s payment obligations under this Agreement, the Warrant Agent shall have a lien prior to the Holders on all
money or property held or collected by the Warrant Agent. 
  

 13 

 Section 5.06. Successor Warrant Agent. 

(a) Company to Provide and Maintain Warrant Agent. The Company agrees for the benefit of the Holders that there shall at all times
be a Warrant Agent hereunder until all the Warrants have been exercised or cancelled or are no longer exercisable. 
 (b)
Resignation and Removal. The Warrant Agent may at any time resign by giving written notice to the Company of such intention on its part, specifying the date on which its desired resignation shall become effective; provided,
however, that such date shall not be less than 60 days after the date on which such notice is given unless the Company otherwise agrees. The Warrant Agent hereunder may be removed at any time by the filing with it of an instrument in writing
signed by or on behalf of the Company and specifying such removal and the date when it shall become effective, which date shall not be less than 60 days after such notice is given unless the Warrant Agent otherwise agrees. Any removal under this
Section shall take effect upon the appointment by the Company as hereinafter provided of a successor Warrant Agent (which shall be (i) a bank or trust company, (ii) organized under the laws of the United States of America or one of the
states thereof, (iii) authorized under the laws of the jurisdiction of its organization to exercise corporate trust powers, (iv) having a combined capital and surplus of at least $50,000,000 (as set forth in its most recent reports of
condition published pursuant to law or to the requirements of any United States federal or state regulatory or supervisory authority) and (v) having an office in the Borough of Manhattan, The City of New York) and the acceptance of such
appointment by such successor Warrant Agent. The obligations of the Company under Section 5.05 shall continue to the extent set forth herein notwithstanding the resignation or removal of the Warrant Agent. 

(c) Company to Appoint Successor. In the event that at any time the Warrant Agent shall resign, or shall be removed, or shall
become incapable of acting, or shall be adjudged bankrupt or insolvent, or shall commence a voluntary case under the Federal bankruptcy laws, as now or hereafter constituted, or under any other applicable Federal or State bankruptcy, insolvency or
similar law or shall consent to the appointment of or taking possession by a receiver, custodian, liquidator, assignee, trustee, sequestrator (or other similar official) of the Warrant Agent or its property or affairs, or shall make an assignment
for the benefit of creditors, or shall admit in writing its inability to pay its debts generally as they become due, or shall take corporate action in furtherance of any such action, or a decree or order for relief by a court having jurisdiction in
the premises shall have been entered in respect of the Warrant Agent in an involuntary case under the Federal bankruptcy laws, as now or hereafter constituted, or any other applicable Federal or State bankruptcy, insolvency or similar law, or a
decree or order by a court having jurisdiction in the premises shall have been entered for the appointment of a receiver, custodian, liquidator, assignee, trustee, sequestrator (or similar official) of the Warrant Agent or of its property or
affairs, or any public officer shall take charge or control of the Warrant Agent or of its property or affairs for the purpose of rehabilitation, conservation, winding up or liquidation, a successor Warrant Agent, qualified as aforesaid, shall be
appointed by the Company by an instrument in writing, filed with the successor Warrant Agent. In the event that a successor Warrant Agent is not appointed by the Company, a successor Warrant Agent, qualified as aforesaid, may be appointed by the
Warrant Agent or the Warrant Agent may petition a court to appoint a successor Warrant Agent. Upon the appointment as aforesaid of a successor Warrant Agent and acceptance by the successor Warrant Agent of such appointment, the Warrant Agent shall
cease to be Warrant Agent hereunder; provided, however, that in the 
  

 14 

 
event of the resignation of the Warrant Agent under this subsection (c), such resignation shall be effective on the earlier of (i) the date specified in the Warrant Agent’s notice of
resignation and (ii) the appointment and acceptance of a successor Warrant Agent hereunder. 
 (d) Successor to
Expressly Assume Duties. Any successor Warrant Agent appointed hereunder shall execute, acknowledge and deliver to its predecessor and to the Company an instrument accepting such appointment hereunder, and thereupon such successor Warrant Agent,
without any further act, deed or conveyance, shall become vested with all the rights and obligations of such predecessor with like effect as if originally named as Warrant Agent hereunder, and such predecessor, upon payment of its charges and
disbursements then unpaid, shall thereupon become obligated to transfer, deliver and pay over, and such successor Warrant Agent shall be entitled to receive, all monies, securities and other property on deposit with or held by such predecessor, as
Warrant Agent hereunder. 
 (e) Successor by Merger. Any entity into which the Warrant Agent hereunder may be merged or
consolidated, or any entity resulting from any merger or consolidation to which the Warrant Agent shall be a party, or any entity to which the Warrant Agent shall sell or otherwise transfer all or substantially all of its assets and business, shall
be the successor Warrant Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto; provided, however, that it shall be qualified as aforesaid. 

Section 5.07. Representations of the Company. The Company represents and warrants to the Warrant Agent that: 

(a) the Company has been duly organized and is validly existing under the laws of the jurisdiction of its incorporation; 

(b) this Agreement has been duly authorized, executed and delivered by the Company and is enforceable against the Company in accordance
with its terms, except as may be limited by bankruptcy, insolvency, moratorium, reorganization and other similar laws affecting the enforcement of creditors’ rights generally; and 

(c) the execution and delivery of this Agreement does not, and the issuance of the Warrants in accordance with the terms of this
Agreement and the Warrant Certificate will not, (i) violate the Company’s certificate of incorporation or by-laws, (ii) violate any law or regulation applicable to the Company or order or decree of any court or public authority having
jurisdiction over the Company, or (iii) result in a breach of any mortgage, indenture, contract, agreement or undertaking to which the Company is a party or by which it is bound, except in the case of (ii) and (iii) for any violations
or breaches that could not reasonably be expected to have a material adverse effect on the Company and its subsidiaries, taken as a whole. 
  

 15 

 ARTICLE VI 

MISCELLANEOUS 

Section 6.01. Persons Benefitting. 

Nothing in this Agreement is intended or shall be construed to confer upon any Person other than the Company, the Warrant Agent and the
Holders any right, remedy or claim under or by reason of this Agreement or any part hereof. 
 Section 6.02. Amendment.

 This Agreement and the Warrants may be amended by the parties hereto without the consent of any Holder for the purpose of
curing any ambiguity, or of curing, correcting or supplementing any defective provision contained herein or therein or adding or changing any other provisions with respect to matters or questions arising under this Agreement or the Warrants as the
Company and the Warrant Agent may deem necessary or desirable; provided, however, that such action shall not adversely affect the rights of any of the Holders in any material respect. Any amendment or supplement to this Agreement or
the Warrants that has a material adverse effect on the interests of any of the Holders or owners of a beneficial interest in a Global Warrant shall require the written consent of the Holders of a majority of the then outstanding Warrants;
provided that the consent of each Holder affected thereby shall be required for any amendment pursuant to which (i) the Exercise Price would be increased or the Warrant Share Number would be decreased (in each case, other than pursuant
to adjustments provided for in Section 12 of the Warrant Certificate), (ii) the time period during which the Warrants are exercisable would be shortened or (iii) any change adverse to the Holder would be made to the anti-dilution
provisions set forth in Article IV of this Agreement or Section 12 of the Warrant Certificate. In determining whether the Holders of the required number of Warrants have concurred in any direction, waiver or consent, Warrants owned by the
Company or by any Affiliate of the Company shall be disregarded and deemed not to be outstanding, except that, for the purpose of determining whether the Warrant Agent shall be protected in relying on any such direction, waiver or consent, only
Warrants that the Warrant Agent knows are so owned shall be so disregarded. Also, subject to the foregoing, only Warrants outstanding at the time shall be considered in any such determination. The Warrant Agent shall have no duty to determine
whether any such amendment would have an effect on the rights or interests of the holders of the Warrants. Upon receipt by the Warrant Agent of an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions precedent to
the execution of the amendment have been complied with and such execution is permitted by this Agreement and the Warrant Certificate, the Warrant Agent shall join in the execution of such amendment; provided, that the Warrant Agent may, but shall
not be obligated to, execute any amendment or supplement which affects the rights or changes or increases the duties or obligations of the Warrant Agent. 

Section 6.03. Notices. 

Any notice or communication shall be in writing and delivered in person or mailed by first-class mail addressed as follows: 

if to the Company: 

Sterling Bancshares, Inc. 

Telephone: (713) 507-2397 

Facsimile: (713) 339-1459 

Attention: James W. Goolsby, Jr.
  

 16 

 with a copy to: 

Locke Lord Bissell & Liddell LLP 

Telephone: (713) 226-1187 

Facsimile: (713) 229-2636

Attention: Gregory C. Hill 

if to the Warrant Agent: 

American Stock Transfer & Trust Company, LLC 

Telephone: (718) 921-8217

Facsimile: (718) 236-4588 

Attention: Susan Silber 

The Company or the Warrant Agent by notice to the other may designate additional or different addresses for subsequent notices or
communications. 
 Unless the Warrant is a Global Warrant, any notice or communication mailed to a Holder shall be mailed to the
Holder at the Holder’s address as it appears on the Registry and shall be sufficiently given if so mailed within the time prescribed. Any notice to the owners of a beneficial interest in a Global Warrant shall be distributed through the
Depositary in accordance with the procedures of the Depositary. Communications to such Holder shall be deemed to be effective at the time of dispatch to the Depositary. 

Failure to provide a notice or communication to a Holder or any defect in it shall not affect its sufficiency with respect to other
Holders. If a notice or communication is provided in the manner provided above, it is duly given, whether or not the intended recipient actually receives it. 

Section 6.04. Governing Law. 

This Agreement will be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and
to be performed entirely within such State. 
 Section 6.05. Successors. 

All agreements of the Company in this Agreement and the Warrants shall bind its successors. All agreements of the Warrant Agent in this
Agreement shall bind its successors. 
 Section 6.06. Multiple Originals. 

The parties may sign any number of copies of this Agreement. Each signed copy shall be an original, but all of them together represent the
same agreement. One signed copy is enough to prove this Agreement. 
  

 17 

 Section 6.07. Inspection of Agreement. 

A copy of this Agreement shall be made available at all reasonable times for inspection by any registered Holder or owner of a beneficial
interest in a Global Warrant at the principal office of the Warrant Agent (or successor warrant agent). 
 Section 6.08.
Table of Contents. 
 The table of contents and headings of the Articles and Sections of this Agreement have been inserted for
convenience of reference only, are not intended to be considered a part hereof and shall not modify or restrict any of the terms or provisions hereof. 

Section 6.09. Severability. 

The provisions of this Agreement are severable, and if any clause or provision shall be held invalid, illegal or unenforceable in whole or
in part in any jurisdiction, then such invalidity or unenforceability shall affect in that jurisdiction only such clause or provision, or part thereof, and shall not in any manner affect such clause or provision in any other jurisdiction or any
other clause or provision of this Agreement in any jurisdiction. 
  

 18 

 IN WITNESS WHEREOF, the parties have caused this Warrant Agreement to be duly executed as of
the date first written above. 
  

			
	 STERLING BANCSHARES, INC.

		
	by	 	 /s/ James W. Goolsby, Jr.

	 Name:
	 	 James W. Goolsby, Jr.

	 Title:
	 	 Executive Vice President and General Counsel

	
	 AMERICAN STOCK TRANSFER & TRUST

COMPANY, LLC,

as Warrant Agent,

		
	by	 	 /s/ Herbert J. Lemmer

	 Name:
	 	 Herbert J. Lemmer

	 Title:
	 	 Vice President

  

 19 

 EXHIBIT A 

FORM OF WARRANT 

UNLESS THIS GLOBAL WARRANT IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
(“DTC”), NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY WARRANT CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 TRANSFERS OF THIS
GLOBAL WARRANT SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL WARRANT SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE
WITH THE RESTRICTIONS SET FORTH IN THE WARRANT AGREEMENT REFERRED TO ON THE REVERSE HEREOF. 
  

 1 

 GLOBAL WARRANT 

representing 

WARRANTS 

to purchase 

2,615,557 Shares of 

Common Stock 

of 

STERLING BANCSHARES, INC. 
  

			
	No.             	  	CUSIP No: 858907 116

 1. DEFINITIONS.
Unless the context otherwise requires, when used herein the following terms shall have the meanings indicated. Any capitalized terms used but not defined herein that are defined in the Warrant Agreement shall have the meanings set forth in the
Warrant Agreement. 
 “Affiliate” means, with respect to any Person, any Person directly or indirectly
controlling, controlled by or under common control with, such other Person. For purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control
with”) when used with respect to any Person, means the possession, directly or indirectly, of the power to cause the direction of management and/or policies of such Person, whether through the ownership of voting securities by contract or
otherwise. 
 “Agent Members” means the securities brokers and dealers, banks and trust companies, clearing
organizations and certain other organizations that are participants in the Depositary’s system. 
 “Board of
Directors” means the board of directors of the Company, including any duly authorized committee thereof. 

“Business Combination” means a merger, consolidation, statutory share exchange or similar transaction that requires the
approval of the Company’s stockholders. 
 “business day” means any day except Saturday, Sunday and
(i) at any time when the Warrants are listed on the NASDAQ Stock Market, any day on which the NASDAQ Stock Market is authorized or required by law or other governmental actions to close or (ii) at any time when the Warrants are not listed
on the NASDAQ Stock Market, any day on which banking institutions in the State of New York are authorized or required by law or other governmental actions to close. 

“Capital Stock” means (A) with respect to any Person that is a corporation or company, any and all shares,
interests, participations or other equivalents (however designated) of capital or capital stock of such Person and (B) with respect to any Person that is not a corporation or company, any and all partnership or other equity interests of such
Person. 
  

 2 

 “Charter” means, with respect to any Person, its certificate or articles of
incorporation, articles of association, or similar organizational document. 
 “Common Stock” means the common
stock, par value $1.00 per share, of the Company. 
 “Company” means Sterling Bancshares, Inc., a corporation
duly organized and existing under the laws of Texas. 
 “Definitive Warrant” means a Warrant Certificate in
definitive form that is not deposited with the Depositary or with the Warrant Agent as custodian for the Depositary. 

“Depositary” means The Depository Trust Company, its nominees and their respective successors. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor statute, and the rules and
regulations promulgated thereunder. 
 “Exercise Price” means $7.18, subject to adjustment as set forth herein.

 “Expiration Time” has the meaning set forth in Section 3. 

“Fair Market Value” means, with respect to any security or other property, the fair market value of such security or
other property as determined by the Board of Directors, acting in good faith. 
 “Global Warrant” means a
Warrant Certificate in global form that is deposited with the Depositary or with the Warrant Agent as custodian for the Depositary. 

“Governmental Entities” means, collectively, all United States and other governmental, regulatory or judicial
authorities. 
 “Issue Date” means December 12, 2008. 

“Market Price” means, with respect to a particular security, on any given day, the last reported sale price regular way
or, in case no such reported sale takes place on such day, the average of the last closing bid and ask prices regular way, in either case on the principal national securities exchange on which the applicable securities are listed or admitted to
trading, or if not listed or admitted to trading on any national securities exchange, the average of the closing bid and ask prices as furnished by two members of the Financial Industry Regulatory Authority, Inc. selected from time to time by the
Company for that purpose. “Market Price” shall be determined without reference to after hours or extended hours trading. If such security is not listed and traded in a manner that the quotations referred to above are available for the
period required hereunder, the Market Price per share of Common Stock shall be deemed to be the fair market value per share of such security as determined in good faith by the Board of Directors in reliance

  

 3 

 
on an opinion of a nationally recognized independent investment banking corporation retained by the Company for this purpose; provided that if any such security is listed or traded on a
non-U.S. market, such fair market value shall be determined by reference to the closing price of such security as of the end of the most recently ended business day in such market prior to the date of determination; and further,
provided that if making such determination requires the conversion of any currency other than U.S. dollars into U.S. dollars, such conversion shall be done in accordance with customary procedures based on the rate for conversion of such
currency into U.S. dollars displayed on the relevant page by Bloomberg L.P. (or any successor or replacement service) on or by 4:00 p.m., New York City time, on such exercise date. For the purposes of determining the Market Price of the Common Stock
on the “trading day” preceding, on or following the occurrence of an event, (i) that trading day shall be deemed to commence immediately after the regular scheduled closing time of trading on the NASDAQ Global Select Market or, if
trading is closed at an earlier time, such earlier time and (ii) that trading day shall end at the next regular scheduled closing time, or if trading is closed at an earlier time, such earlier time (for the avoidance of doubt, and as an
example, if the Market Price is to be determined as of the last trading day preceding a specified event and the closing time of trading on a particular day is 4:00 p.m. and the specified event occurs at 5:00 p.m. on that day, the Market Price would
be determined by reference to such 4:00 p.m. closing price). 
 “Ordinary Cash Dividends”
means a regular quarterly cash dividend on shares of Common Stock out of surplus or net profits legally available therefor (determined in accordance with U.S. GAAP in effect from time to time), provided that Ordinary Cash Dividends shall not
include any cash dividends paid subsequent to the Issue Date to the extent the aggregate per share dividends paid on the outstanding Common Stock in any quarter exceed $0.055 per share of Common Stock, as adjusted for any stock split, stock
dividend, reverse stock split, reclassification or similar transaction. 
 “Person” has the meaning
given to it in Section 3(a)(9) of the Exchange Act and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act. 

“Per Share Fair Market Value” has the meaning set forth in Section 12(B). 

“Pro Rata Repurchases” means any purchase of shares of Common Stock by the Company or any Affiliate thereof pursuant to
(A) any tender offer or exchange offer subject to Section 13(e) or 14(e) of the Exchange Act or Regulation 14E promulgated thereunder or (B) any other offer available to substantially all holders of Common Stock, in the case of both
(A) and (B), whether for cash, shares of Capital Stock of the Company, other securities of the Company, evidences of indebtedness of the Company or any other Person or any other property (including, without limitation, shares of Capital Stock,
other securities or evidences of indebtedness of a subsidiary), or any combination thereof, effected while this Warrant Certificate is outstanding. The “Effective Date” of a Pro Rata Repurchase shall mean the date of acceptance of
shares for purchase or exchange by the Company under any tender or exchange offer which is a Pro Rata Repurchase or the date of purchase with respect to any Pro Rata Repurchase that is not a tender or exchange offer. 

“SEC” means the U.S. Securities and Exchange Commission. 

 

 4 

 “Securities Act” means the Securities Act of 1933, as amended, or any
successor statute, and the rules and regulations promulgated thereunder. 
 “Shares” has the meaning set forth
in Section 2. 
 “trading day” means (A) if the shares of Common Stock are not traded on any national
or regional securities exchange or association or over-the-counter market, a business day or (B) if the shares of Common Stock are traded on any national or regional securities exchange or association or over-the-counter market, a business day
on which such relevant exchange or quotation system is scheduled to be open for business and on which the shares of Common Stock (i) are not suspended from trading on any national or regional securities exchange or association or
over-the-counter market for any period or periods aggregating one half hour or longer; and (ii) have traded at least once on the national or regional securities exchange or association or over-the-counter market that is the primary market for
the trading of the shares of Common Stock. The term “trading day” with respect to any security other than the Common Stock shall have a correlative meaning based on the primary exchange or quotation system on which such security is listed
or traded. 
 “Transfer Agent” means American Stock Transfer & Trust Company, LLC, as transfer agent
of the Company, and any successor transfer agent. 
 “U.S. GAAP” means United States generally accepted
accounting principles. 
 “Warrant” means a right to purchase a number of shares of the Company’s Common
Stock equal to the Warrant Share Number as provided herein. References herein to “Warrant” shall include the Global Warrant where the context requires. 

“Warrant Agent” has the meaning set forth in Section 16. 

“Warrant Agreement” has the meaning set forth in Section 16. 

“Warrant Certificate” means a fully registered certificate evidencing Warrants. 

“Warrantholder” means a registered owner of Warrants as set forth in the Registry. 

“Warrant Share Number” means one share of Common Stock, as subsequently adjusted pursuant to the terms of this Warrant
and the Warrant Agreement. 
  

 5 

 2. NUMBER OF SHARES; EXERCISE PRICE. This certifies that, for value received, Cede & Co.,
and any of its registered assigns, is the registered owner of the number of Warrants set forth on Schedule A hereto, each of which entitles the Warrantholder to purchase from the Company, upon the terms and subject to the conditions hereinafter set
forth, a number of fully paid and nonassessable shares of Common Stock (each a “Share” and collectively the “Shares”) equal to the Warrant Share Number at a purchase price per share equal to the Exercise Price. The
Warrant Share Number and the Exercise Price are subject to adjustment as provided herein, and all references to “Warrant Share Number” and “Exercise Price” herein shall be deemed to include any such adjustment or series of
adjustments. 
 3. EXERCISE OF WARRANT; TERM. Subject to Section 2, to the extent permitted by applicable laws and regulations, all
or a portion of the Warrants evidenced by this Warrant Certificate are exercisable by the Warrantholder, at any time or from time to time after the execution and delivery of this Warrant Certificate by the Company on the date hereof, but in no event
later than 5:00 p.m., New York City time on the tenth anniversary of the Issue Date (the “Expiration Time”), by (A) delivery to the Warrant Agent of a Notice of Exercise in the form annexed hereto, duly completed and
executed (or to the Company or to such other office or agency of the Company in the United States as the Company may designate by notice in writing to the Warrantholders pursuant to Section 18), and (B) payment of the Exercise Price for
the Shares thereby purchased by having the Company withhold, from the shares of Common Stock that would otherwise be delivered to such Warrantholder upon such exercise, Shares issuable upon exercise of the Warrants so exercised equal in value to the
aggregate Exercise Price as to such Shares, based on the Market Price of the Common Stock on the trading day on which such Warrants are exercised and the Notice of Exercise is delivered to the Warrant Agent pursuant to this Section 3. For the
avoidance of doubt, if Warrants are exercised such that the Exercise Price would exceed the value of the Shares issuable upon exercise, no amount shall be due and payable by the Warrantholder to the Company. In the case of a Global Warrant, any
person with a beneficial interest in such Global Warrant shall effect compliance with the requirements in clauses (A) and (B) above through the relevant Agent Member in accordance with procedures of the Depositary. 

In the case of a Global Warrant, whenever some but not all of the Warrants represented by such Global Warrant are exercised in accordance
with the terms thereof and of the Warrant Agreement, such Global Warrant shall be surrendered by the Warrantholder to the Warrant Agent, which shall cause an adjustment to be made to Schedule A to such Global Warrant so that the number of Warrants
represented thereby will be equal to the number of Warrants theretofor represented by such Global Warrant less the number of Warrants then exercised. The Warrant Agent shall thereafter promptly return such Global Warrant to the Warrantholder or its
nominee or custodian. In the case of a Definitive Warrant, whenever some but not all of the Warrants represented by such Definitive Warrant are exercised in accordance with the terms thereof and of the Warrant Agreement, the Warrantholder shall be
entitled, at the request of such Warrantholder, to receive from the Company within a reasonable time, not to exceed three business days, a new Definitive Warrant in substantially identical form for the number of Warrants equal to the number of
Warrants theretofor represented by such Definitive Warrant less the number of Warrants then exercised. 
  

 6 

 If this Warrant Certificate shall have been exercised in full, the Warrant Agent shall
promptly cancel such certificate following its receipt from the Warrantholder or the Depositary, as applicable. 

Notwithstanding anything in this Warrant Certificate to the contrary, in the case of Warrants evidenced by a Global Warrant, any Agent
Member may, without the consent of the Warrant Agent or any other person, on its own behalf and on behalf of any beneficial owner for which it is acting, enforce, and may institute and maintain, any suit, action or proceeding against the Company
suitable to enforce, or otherwise in respect of, its right to exercise, and to receive Shares for, its Warrants as provided in the Global Warrant, and to enforce the Warrant Agreement. 

4. ISSUANCE OF SHARES; AUTHORIZATION; LISTING. Shares issued upon exercise of Warrants evidenced by this Warrant Certificate shall be
(i) issued in such name or names as the exercising Warrantholder may designate and (ii) delivered by the Transfer Agent to such Warrantholder or its nominee or nominees (A) via book-entry transfer crediting the account of such
Warrantholder (or the relevant Agent Member for the benefit of such Warrantholder) through the Depositary’s DWAC system (if the Transfer Agent participates in such system), or (B) otherwise in certificated form by physical delivery to the
address specified by the Warrantholder in the Notice of Exercise. The Company shall use its commercially reasonable efforts to cause its Transfer Agent to be a participant in the Depositary’s DWAC system. The Company shall cause the number of
full Shares to which such Warrantholder shall be entitled to be so delivered by the Transfer Agent within a reasonable time, not to exceed three business days after the date on which Warrants evidenced by this Warrant Certificate have been duly
exercised in accordance with the terms hereof. 
 The Company hereby represents and warrants that any Shares issued upon the
exercise of Warrants evidenced by this Warrant Certificate in accordance with the provisions of Section 3 will be duly and validly authorized and issued, fully paid and nonassessable and free from all taxes, liens and charges (other than liens
or charges created by a Warrantholder, income and franchise taxes incurred in connection with the exercise of the Warrant or taxes in respect of any transfer occurring contemporaneously therewith). The Company agrees that the Shares so issued will
be deemed to have been issued to a Warrantholder as of the close of business on the date on which Warrants evidenced by this Warrant Certificate have been duly exercised, notwithstanding that the stock transfer books of the Company may then be
closed or certificates representing such Shares may not be actually delivered on such date. The Company will at all times until the Expiration Time (or, if such date shall not be a business day, then on the next succeeding business day) reserve and
keep available, out of its authorized but unissued Common Stock, solely for the purpose of providing for the exercise of Warrants evidenced by this Warrant Certificate, the aggregate number of shares of Common Stock then issuable upon exercise
hereof at any time. The Company will (A) procure, at its sole expense, the listing of the Shares issuable upon exercise hereof at any time, subject to issuance or notice of issuance, on all principal stock exchanges on which the Common Stock is
then listed or traded and (B) maintain such listings of such Shares at all times after issuance. The Company will use reasonable best efforts to ensure that the Shares may be issued without violation of any applicable law or regulation or of
any requirement of any securities exchange on which the Shares are listed or traded. 
  

 7 

 5. NO FRACTIONAL SHARES OR SCRIP. No fractional Shares or scrip representing fractional Shares shall
be issued upon any exercise of Warrants evidenced by this Warrant Certificate. In lieu of any fractional Share that would otherwise be issued to a Warrantholder upon the exercise of any Warrants, such Warrantholder shall be entitled to receive a
cash payment equal to the Market Price of the Common Stock on the trading day on which such warrants are exercised representing such fractional Share. The beneficial owners of the Warrants and the Warrantholder, by their acceptance hereof, expressly
waive their right to receive any fraction of a share of Common Stock or a certificate representing a fraction of a share of Common Stock or Warrant Certificate representing a fractional Warrant upon exercise of any Warrant. 

6. NO RIGHTS AS STOCKHOLDERS; TRANSFER BOOKS. Warrants evidenced by this Warrant Certificate do not entitle the Warrantholder or the owner of any
beneficial interest in such Warrants to any voting rights or other rights as a stockholder of the Company prior to the date of exercise hereof. The Company will at no time close its transfer books against transfer of Warrants in any manner which
interferes with the timely exercise hereof. 
 7. CHARGES, TAXES AND EXPENSES. Issuance of Shares in certificated or book-entry form to
the Warrantholder upon the exercise of Warrants evidenced by this Warrant Certificate shall be made without charge to the Warrantholder for any issue or transfer tax or other incidental expense in respect of the issuance of such Shares (other than
liens or charges created by a Warrantholder, income and franchise taxes incurred in connection with the exercise of the Warrant or taxes in respect of any transfer occurring contemporaneously therewith), all of which taxes and expenses shall be paid
by the Company. 
 8. TRANSFER/ASSIGNMENT. This Warrant Certificate and all rights hereunder are transferable, in whole or in part, upon
the books of the Company (or an agent duly appointed by the Company) by the registered holder hereof in person or by duly authorized attorney, and one or more new Warrant Certificates shall be made and delivered by the Company, of the same tenor and
date as this Warrant Certificate but registered in the name of one or more transferees, upon surrender of this Warrant Certificate, duly endorsed, to the office or agency of the Company described in Section 3; provided that if this
Warrant Certificate is a Global Warrant registered in the name of the Depositary, transfers of such Global Warrant may only be made as a whole, and not in part, and only by (i) the Depositary to a nominee of the Depositary, (ii) a nominee
of the Depositary to the Depositary or another nominee of the Depositary or (iii) the Depositary or any such nominee to a successor Depositary or its nominee. All expenses (other than stock transfer taxes) and other charges payable in
connection with the preparation, execution and delivery of the new Warrant Certificates pursuant to this Section 8 shall be paid by the Company. 

If this Warrant Certificate is a Global Warrant, then so long as the Global Warrant is registered in the name of the Depositary, the
holders of beneficial interests in the Warrants evidenced thereby shall have no rights under this Warrant Certificate with respect to the Global Warrant held on their behalf by the Depositary or the Warrant Agent as its custodian, and the Depositary
may be treated by the Company, the Warrant Agent and any agent of the Company or the Warrant Agent as the absolute owner of the Global Warrant for all purposes whatsoever 

 

 8 

 
except to the extent set forth herein. Accordingly, any such owner’s beneficial interest in the Global Warrant will be shown only on, and the transfer of such interest shall be effected only
through, records maintained by the Depositary or the Agent Members, and neither the Company nor the Warrant Agent shall have any responsibility with respect to such records maintained by the Depositary or the Agent Members. Notwithstanding the
foregoing, nothing herein shall (i) prevent the Company, the Warrant Agent or any agent of the Company or the Warrant Agent from giving effect to any written certification, proxy or other authorization furnished by the Depositary or
(ii) impair, as between the Depositary and the Agent Members, the operation of customary practices governing the exercise of the rights of a holder of a beneficial interest in any Warrant. Except as may otherwise be provided in this Warrant
Certificate or the Warrant Agreement, the rights of beneficial owners in a Global Warrant shall be exercised through the Depositary subject to the applicable procedures of the Depositary. Any holder of the Global Warrant shall, by acceptance of the
Global Warrant, agree that transfers of beneficial interests in the Global Warrant may be effected only through a book-entry system maintained by the Depositary, and that ownership of a beneficial interest in the Warrants represented thereby shall
be required to be reflected in book-entry form. 
 A Global Warrant shall be exchanged for Definitive Warrants, and Definitive
Warrants may be transferred or exchanged for a beneficial interest in a Global Warrant, only at such times and in the manner specified in the Warrant Agreement. Subject to the provisions of the Warrant Agreement, the holder of a Global Warrant may
grant proxies and otherwise authorize any person, including Agent Members and persons that may hold beneficial interests in such Global Warrant through Agent Members, to take any action that a Warrantholder is entitled to take under a Warrant or the
Warrant Agreement. 
  

 9 

 9. EXCHANGE AND REGISTRY OF WARRANTS. This Warrant Certificate is exchangeable, upon the surrender
hereof by the Warrantholder to the Company, for a new Warrant Certificate or Warrant Certificates of like tenor and representing the same aggregate number of Warrants. The Company or an agent duly appointed by the Company (which initially shall be
the Warrant Agent) shall maintain a Registry showing the name and address of the Warrantholder as the registered holder of this Warrant Certificate. This Warrant Certificate may be surrendered for exchange or exercise in accordance with its terms,
at the office of the Company or any such agent, and the Company shall be entitled to rely in all respects, prior to written notice to the contrary, upon such Registry. 

10. LOSS, THEFT, DESTRUCTION OR MUTILATION OF WARRANT CERTIFICATE. Upon receipt by the Company of proof reasonably satisfactory to it of the loss,
theft, destruction or mutilation of this Warrant Certificate, and in the case of any such loss, theft or destruction, upon receipt of a bond, indemnity or security reasonably satisfactory to the Company and the Warrant Agent, or, in the case of any
such mutilation, upon surrender and cancellation of this Warrant Certificate, the Company shall make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant Certificate, a new Warrant Certificate of like tenor and representing the
same aggregate number of Warrants as provided for in such lost, stolen, destroyed or mutilated Warrant Certificate. 
 11. SATURDAYS,
SUNDAYS, HOLIDAYS, ETC. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a business day, then such action may be taken or such right may be exercised on the next
succeeding day that is a business day. 
 12. ADJUSTMENTS AND OTHER RIGHTS. The Exercise Price and the Warrant Share Number shall be
subject to adjustment from time to time as follows; provided that if more than one subsection of this Section 12 is applicable to a single event, the subsection shall be applied that produces the largest adjustment and no single event
shall cause an adjustment under more than one subsection of this Section 12 so as to result in duplication: 
 (A) Stock
Splits, Subdivisions, Reclassifications or Combinations. If the Company shall (i) declare and pay a dividend or make a distribution on its Common Stock in shares of Common Stock, (ii) subdivide or reclassify the outstanding shares of
Common Stock into a greater number of shares, or (iii) combine or reclassify the outstanding shares of Common Stock into a smaller number of shares, the Warrant Share Number at the time of the record date for such dividend or distribution or
the effective date of such subdivision, combination or reclassification shall be proportionately adjusted so that the holder of a Warrant after such date shall be entitled to purchase the number of shares of Common Stock which such holder would have
owned or been entitled to receive in respect of the Warrant Share Number had such Warrant been exercised immediately prior to such date. In such event, the Exercise Price in effect immediately prior to the record date for such dividend or
distribution or the effective date of such subdivision, combination or reclassification shall be adjusted by multiplying such Exercise Price by the quotient of (x) the Warrant Share Number immediately prior to such adjustment divided by
(y) the new Warrant Share Number determined pursuant to the immediately preceding sentence. 
  

 10 

 (B) Other Distributions. In case the Company shall fix a record date for the making of a
distribution to all holders of shares of its Common Stock of securities, evidences of indebtedness, assets, cash, rights or warrants (excluding Ordinary Cash Dividends, dividends of its Common Stock and other dividends or distributions referred to
in Section 12(A)), in each such case, the Exercise Price in effect prior to such record date shall be reduced immediately thereafter to the price determined by multiplying the Exercise Price in effect immediately prior to the reduction by the
quotient of (x) the Market Price of the Common Stock on the last trading day preceding the first date on which the Common Stock trades regular way on the principal national securities exchange on which the Common Stock is listed or admitted to
trading without the right to receive such distribution, minus the amount of cash and/or the Fair Market Value of the securities, evidences of indebtedness, assets, rights or warrants to be so distributed in respect of one share of Common Stock (such
subtracted amount and/or Fair Market Value, the “Per Share Fair Market Value”) divided by (y) such Market Price on such date specified in clause (x); such adjustment shall be made successively whenever such a record date is
fixed. In such event, the Warrant Share Number shall be increased to the number obtained by multiplying the Warrant Share Number immediately prior to such adjustment by the quotient of (x) the Exercise Price in effect immediately prior to the
distribution giving rise to this adjustment divided by (y) the new Exercise Price determined in accordance with the immediately preceding sentence. In the case of adjustment for a cash dividend that is, or is coincident with, a regular
quarterly cash dividend, the Per Share Fair Market Value would be reduced by the per share amount of the portion of the cash dividend that would constitute an Ordinary Cash Dividend. In the event that such distribution is not so made, the Exercise
Price and the Warrant Share Number then in effect shall be readjusted, effective as of the date when the Board of Directors determines not to distribute such shares, evidences of indebtedness, assets, rights, cash or warrants, as the case may be, to
the Exercise Price and the Warrant Share Number that would then be in effect if such record date had not been fixed. 
 (C)
Certain Repurchases of Common Stock. In case the Company effects a Pro Rata Repurchase of Common Stock, then the Exercise Price shall be reduced to the price determined by multiplying the Exercise Price in effect immediately prior to the Effective
Date of such Pro Rata Repurchase by a fraction of which the numerator shall be (i) the product of (x) the number of shares of Common Stock outstanding immediately before such Pro Rata Repurchase and (y) the Market Price of a share of
Common Stock on the trading day immediately preceding the first public announcement by the Company or any of its Affiliates of the intent to effect such Pro Rata Repurchase, minus (ii) the aggregate purchase price of the Pro Rata Repurchase,
and of which the denominator shall be the product of (i) the number of shares of Common Stock outstanding immediately prior to such Pro Rata Repurchase minus the number of shares of Common Stock so repurchased and (ii) the Market Price per
share of Common Stock on the trading day immediately preceding the first public announcement by the Company or any of its Affiliates of the intent to effect such Pro Rata Repurchase. In such event, the Warrant Share Number shall be increased to the
number obtained by multiplying the Warrant Share Number immediately prior to such adjustment by the quotient of (x) the Exercise Price in effect immediately prior to the Pro Rata Repurchase giving rise to this adjustment divided by (y) the
new Exercise Price determined in accordance with the immediately preceding sentence. For the avoidance of doubt, no increase to the Exercise Price or decrease in the Warrant Share Number shall be made pursuant to this Section 12(C). 

 

 11 

 (D) Business Combinations or Reclassifications of Common Stock. In case of any Business
Combination or reclassification of Common Stock (other than a reclassification of Common Stock referred to in Section 12(A)), a Warrantholder’s right to receive Shares upon exercise of a Warrant shall be converted into the right to
exercise such Warrant to acquire the number of shares of stock or other securities or property (including cash) which the Common Stock issuable (at the time of such Business Combination or reclassification) upon exercise of such Warrant immediately
prior to such Business Combination or reclassification would have been entitled to receive upon consummation of such Business Combination or reclassification; and in any such case, if necessary, the provisions set forth herein with respect to the
rights and interests thereafter of the Warrantholder shall be appropriately adjusted so as to be applicable, as nearly as may reasonably be, to such Warrantholder’s right to exercise a Warrant in exchange for any shares of stock or other
securities or property pursuant to this paragraph. In determining the kind and amount of stock, securities or the property receivable upon exercise of a Warrant following the consummation of such Business Combination, if the holders of Common Stock
have the right to elect the kind or amount of consideration receivable upon consummation of such Business Combination, then the consideration that a Warrantholder shall be entitled to receive upon exercise shall be deemed to be the types and amounts
of consideration received by the majority of all holders of the shares of Common Stock that affirmatively make an election (or of all such holders if none make an election). For purposes of determining any amount to be withheld pursuant to
Section 3 from stock, securities or the property that would otherwise be delivered to a Warrantholder upon exercise of Warrants following any Business Combination, the amount of such stock, securities or property to be withheld shall have a
Market Price equal to the aggregate Exercise Price as to which such Warrants are so exercised, based on the fair market value of such stock, securities or property on the trading day on which such Warrants are exercised and the Notice of Exercise is
delivered to the Warrant Agent; provided that in the case of any property that is not a security, the Market Price of such property shall be deemed to be its fair market value as determined in good faith by the Board of Directors in reliance
on an opinion of a nationally recognized independent investment banking firm retained by the Company for this purpose; and further, provided that if making such determination requires the conversion of any currency other than U.S.
dollars into U.S. dollars, such conversion shall be done in accordance with customary procedures based on the rate for conversion of such currency into U.S. dollars displayed on the relevant page by Bloomberg L.P. (or any successor or replacement
service) on or by 4:00 p.m., New York City time, on such exercise date. 
 (E) Rounding of Calculations; Minimum Adjustments.
All calculations under this Section 12 shall be made to the nearest one-tenth (1/10th) of a cent or to the nearest one-hundredth (1/100th) of a share, as the case may be. Any provision of this Section 12 to the contrary
notwithstanding, no adjustment in the Exercise Price or the Warrant Share Number shall be made if the amount of such adjustment would be less than $0.01 or one-tenth (1/10th) of a share of Common Stock, but any such amount shall be carried
forward and an adjustment with respect thereto shall be made at the time of and together with any subsequent adjustment which, together with such amount and any other amount or amounts so carried forward, shall aggregate $0.01 or 1/10th of a share
of Common Stock, or more, or on exercise of a Warrant if it shall earlier occur. 
  

 12 

 (F) Timing of Issuance of Additional Common Stock Upon Certain Adjustments. In any case in
which the provisions of this Section 12 shall require that an adjustment shall become effective immediately after a record date for an event, the Company may defer until the occurrence of such event (i) issuing to a Warrantholder of
Warrants exercised after such record date and before the occurrence of such event the additional shares of Common Stock issuable upon such exercise by reason of the adjustment required by such event over and above the shares of Common Stock issuable
upon such exercise before giving effect to such adjustment and (ii) paying to such Warrantholder any amount of cash in lieu of a fractional share of Common Stock; provided, however, that the Company upon request shall deliver to
such Warrantholder a due bill or other appropriate instrument evidencing such Warrantholder’s right to receive such additional shares, and such cash, upon the occurrence of the event requiring such adjustment. 

(G) Other Events. Neither the Exercise Price nor the Warrant Share Number shall be adjusted in the event of a change in the par
value of the Common Stock or a change in the jurisdiction of incorporation of the Company. 
 (H) Statement Regarding
Adjustments. Whenever the Exercise Price or the Warrant Share Number shall be adjusted as provided in Section 12, the Company shall forthwith file at the principal office of the Company a statement showing in reasonable detail the facts
requiring such adjustment and the Exercise Price that shall be in effect and the Warrant Share Number after such adjustment. The Company shall deliver to the Warrant Agent a copy of such statement and shall cause a copy of such statement to be sent
or communicated to the Warrantholders pursuant to Section 18. 
 (I) Notice of Adjustment Event. In the event that the
Company shall propose to take any action of the type described in this Section 12 (but only if the action of the type described in this Section 12 would result in an adjustment in the Exercise Price or the Warrant Share Number or a change
in the type of securities or property to be delivered upon exercise of a Warrant), the Company shall deliver to the Warrant Agent a notice and shall cause such notice to be sent or communicated to the Warrantholders in the manner set forth in
Section 18, which notice shall specify the record date, if any, with respect to any such action and the approximate date on which such action is to take place. Such notice shall also set forth the facts with respect thereto as shall be
reasonably necessary to indicate the effect on the Exercise Price and the number, kind or class of shares or other securities or property which shall be deliverable upon exercise of a Warrant. In the case of any action which would require the fixing
of a record date, such notice shall be given at least 10 days prior to the date so fixed, and in case of all other action, such notice shall be given at least 15 days prior to the taking of such proposed action. Failure to give such notice, or any
defect therein, shall not affect the legality or validity of any such action. 
 (J) Proceedings Prior to Any Action Requiring
Adjustment. As a condition precedent to the taking of any action which would require an adjustment pursuant to this Section 12, the Company shall take any action which may be necessary, including obtaining regulatory, New York Stock Exchange,
NASDAQ Stock Market or other applicable national securities exchange or stockholder approvals or exemptions, in order 

 

 13 

 
that the Company may thereafter validly and legally issue as fully paid and nonassessable all Shares that a Warrantholder is entitled to receive upon exercise of a Warrant pursuant to this
Section 12. 
 (K) Adjustment Rules. Any adjustments pursuant to this Section 12 shall be made successively whenever
an event referred to herein shall occur. If an adjustment in Exercise Price made hereunder would reduce the Exercise Price to an amount below par value of the Common Stock, then such adjustment in Exercise Price made hereunder shall reduce the
Exercise Price to the par value of the Common Stock. 
  

 14 

 13. NO IMPAIRMENT. The Company will not, by amendment of its Charter or through any reorganization,
transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but
will at all times in good faith assist in the carrying out of all the provisions of this Warrant Certificate and in taking of all such action as may be necessary or appropriate in order to protect the rights of the Warrantholder. 

14. GOVERNING LAW. This Warrant Certificate and the Warrants evidenced hereby shall be governed by and construed in accordance with the laws of
the State of New York applicable to contracts made and to be performed entirely within such State. 
 15. BINDING EFFECT;
COUNTERSIGNATURE BY WARRANT AGENT. This Warrant Certificate shall be binding upon any successors or assigns of the Company. This Warrant Certificate shall not be valid until an authorized signatory of the Warrant Agent (as defined below) or its
agent as provided in the Warrant Agreement (as defined below) countersigns this Warrant Certificate. Such signature shall be solely for the purpose of authenticating this Warrant Certificate and shall be conclusive evidence that this Warrant
Certificate has been countersigned under the Warrant Agreement. 
 16. WARRANT AGREEMENT; AMENDMENTS. This Warrant Certificate is issued
under and in accordance with a Warrant Agreement dated as of June 9, 2010 (the “Warrant Agreement”), between the Company and American Stock Transfer & Trust Company, LLC (the “Warrant Agent,” which term
includes any successor Warrant Agent under the Warrant Agreement), and is subject to the terms and provisions contained in the Warrant Agreement, to all of which terms and provisions the beneficial owners of the Warrants and the Warrantholders
consent by acceptance hereof. The Warrant Agreement is hereby incorporated herein by reference and made a part hereof. Reference is hereby made to the Warrant Agreement for a statement of the respective rights, limitations of rights, duties and
obligations of the Company, the Warrant Agent and the Warrantholders and beneficial owners of the Warrants. A copy of the Warrant Agreement may be obtained for inspection by the Warrantholders or beneficial owners of the Warrants upon request to the
Warrant Agent at the address of the Warrant Agent (or successor warrant agent) set forth in the Warrant Agreement. The Warrant Agreement and this Warrant Certificate may be amended and the observance of any term of the Warrant Agreement or this
Warrant Certificate may be waived only to the extent provided in the Warrant Agreement. 
 17. PROHIBITED ACTIONS. 

The Company agrees that it will not take any action which would entitle the Warrantholder to an adjustment of the Exercise Price if the
total number of shares of Common Stock issuable after such action upon exercise of the Warrants evidenced by this Warrant Certificate, together with all shares of Common Stock then outstanding and all shares of Common Stock then issuable upon the
exercise of all outstanding options, warrants, conversion and other rights, would exceed the total number of shares of Common Stock then authorized by its Charter. 

 

 15 

 18. NOTICES. Unless this Warrant Certificate is a Global Warrant, any notice or communication mailed
to the Warrantholder shall be mailed to the Warrantholder at the Warrantholder’s address as it appears in the Registry and shall be sufficiently given if so mailed within the time prescribed. Any notice to holders of a beneficial interest in a
Global Warrant shall be distributed through the Depositary in accordance with the procedures of the Depositary. Communications to such holders shall be deemed to be effective at the time of dispatch to the Depositary. 

[Remainder of page intentionally left blank] 

 

 16 

 IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to be duly executed by a
duly authorized officer. This Warrant Certificate shall not be valid or obligatory for any purpose until it shall have been countersigned by the Warrant Agent. 

Dated:                      

 

			
	STERLING BANCSHARES, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

 Countersigned: 
  

			
	 AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC,

as Warrant Agent

		
	By:	 	  

		 	Authorized Signatory

  

 17 

 Schedule A to Global Warrant 

The initial number of Warrants represented by the Global Warrant is 2,615,557. 

The following decreases in the number of Warrants represented by this Global Warrant have been made as a result of the exercise of
certain Warrants represented by this Global Warrant: 
  

							
	 Date of Exercise

of Warrants
	 	 Number of

Warrants

Exercised
	 	 Total Number of

Warrants Represented

Hereby Following Such

Exercise
	 	 Notation Made

by Warrant Agent

		 		 		 	
		 		 		 	
		 		 		 	

  

 1 

 Form of Notice of Exercise 

(to be executed only upon exercise of Warrants) 

Date:                     

 TO:     Sterling Bancshares, Inc. (the “Company”) 

RE:     Election to Purchase Common Stock 

The undersigned registered holder of              Warrants irrevocably
elects to exercise the number of Warrants set forth below represented by the Global Warrant (or, in the case of a Definitive Warrant, the Warrant Certificate enclosed herewith), and surrenders all right, title and interest in the number of Warrants
exercised hereby to the Company, and directs that the shares of Common Stock or other securities or property delivered upon exercise of such Warrants, and any interests in the Global Warrant or Definitive Warrant representing unexercised Warrants,
be registered or placed in the name and at the address specified below and delivered thereto. 
 Number of
Warrants                                       
          
  

			
	Holder:	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 

 Signature guaranteed by (if a guarantee is
required): 
  

	
	
	 

  

 2 

 Securities and/or check to be issued to: 

If in book-entry form through the Depositary: 
  

			
	 Depositary Account Number:
	  	 

  

			
	 Name of Agent Member:
	  	 

 If in definitive form: 

 

			
	 Social Security Number

or Other Identifying Number:
	 	 
		
	 Name:
	 	 
		
	 Street Address:
	 	 
		
	 City, State and Zip Code:
	 	 

 Any unexercised Warrants evidenced by the
exercising Warrantholder’s interest in the Global Warrant or Definitive Warrant, as the case may be, to be issued to: 
 If in book-entry
form through the Depositary: 
  

			
	 Depositary Account Number:
	 	 

  

			
	 Name of Agent Member:
	 	 

 If in definitive form: 

 

			
	 Social Security Number

or Other Identifying Number:
	  	 
		
	 Name:
	  	 
		
	 Street Address:
	  	 
		
	 City, State and Zip Code:
	  	 

  

 3 

 Form of Assignment 

For value received, the undersigned registered Warrantholder of the within Warrant Certificate hereby sells, assigns and transfers unto
the Assignee(s) named below (including the undersigned with respect to any Warrants constituting a part of the Warrants evidenced by the within Warrant Certificate not being assigned hereby) all of the right, title and interest of the undersigned
under the within Warrant Certificate with respect to the number of Warrants set forth below. 
  

							
	 
Name of Assignees
	 	 Address
	 	 Number of Warrants
	  	Social Security
Number or other

Identifying Number
		 		 		  	
		 		 		  	
		 		 		  	

 and does irrevocably constitute and appoint
                    , the undersigned’s attorney, to make such transfer on the books of the Company maintained for the purpose, with full
power of substitution in the premises. 
 Dated: 

 

			
	Holder:	 	  

	By:	 	  

	Name:	 	  

	Title:	 	  

Signature guaranteed by (if a guarantee is required): 
  

	
	  

  

 4Master Services Agreement between Penson Worldwide, Inc. and Broadridge

 Exhibit 10.1 

NOTE: PORTIONS OF THIS AGREEMENT ARE THE SUBJECT OF A 

CONFIDENTIAL TREATMENT REQUEST BY THE REGISTRANT TO THE 

SECURITIES AND EXCHANGE COMMISSION. SUCH PORTIONS HAVE BEEN 

REDACTED AND ARE MARKED WITH A “[****]” IN PLACE OF THE REDACTED LANGUAGE. 

Broadridge Financial Solutions, Inc. 
  

			
	1981 Marcus Avenue	  	TO BE PREPARED AND
	Lake Success, New York 11042	  	SIGNED IN DUPLICATE

MASTER SERVICES AGREEMENT 
  

			
	Client:	  	Penson Worldwide, Inc.
		
	Address:	  	1700 Pacific Avenue, Suite 1400
	City:	  	Dallas, Texas, 75201

 This Master Services Agreement (this
“Master Services Agreement”), dated as of November 2, 2009 (the “Effective Date”), is made and entered into by and between Penson Worldwide, Inc. (“Penson”) and Broadridge
Financial Solutions, Inc. (“Broadridge”). 
 WHEREAS, in connection with that certain Asset Purchase Agreement, dated
November 2, 2009, (as amended, the “Asset Purchase Agreement”) among Broadridge, Ridge Clearing & Outsourcing Solutions, Inc., Penson and Penson Financial Services, Inc., Client (as defined in Section 1.B
below) will acquire certain correspondent clearing contracts and other assets relating to the clearing business of Ridge (as defined in Section 1.B below) (the “Acquisition”); and 

WHEREAS, in connection with the Acquisition, Ridge desires to perform, and Client desires to have performed by Ridge, the Services (as defined herein) in
connection with the servicing of Client’s and its Affiliates newly acquired, existing and future business in accordance with the terms and conditions set forth in this Master Services Agreement and the Schedules (as defined in Section 1.A
below). 
 NOW THEREFORE, in consideration of the terms and conditions set forth herein, and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties agree as follows: 
  

 

	1.	SCOPE OF AGREEMENT. 

  

	 	A.	Services Schedules. 

  

	 	(i)	Broadridge and Penson shall cause their respective Affiliates to enter into schedules (including, without limitation, any and all Attachments thereto, each a
“Schedule” and collectively, the “Schedules”) in Canada, the United States and the United Kingdom. The Broadridge Affiliate that is a party to a Schedule is referred to in this Agreement (as defined in
Section 1.A (iii) below) as the “Ridge Local Affiliate” and the Client Affiliate that is a party to a Schedule is referred to in this Agreement as the “Client Local Affiliate”. The Client
Local Affiliate for the United States Schedule shall be Penson Financial Services, Inc., the Client Local Affiliate for the Canadian Schedule shall be Penson Financial Services Canada, Inc. and the Client Local Affiliate for the United Kingdom
Schedule shall be Penson Financial Services Ltd. Each Schedule shall be governed by the terms and conditions of this Master Services Agreement as may be amended in accordance with its terms. 

 

	 	(ii)	Notwithstanding the fact that a Schedule is implemented, 

  

	 	(a)	 Broadridge shall (x) be responsible for the performance of all of the Services, and the performance of all obligations of Ridge under this
Agreement, (y) be responsible for the 

  

 Broadridge/Penson Proprietary and Confidential 

 MASTER SERVICES AGREEMENT 

 

	 	
compliance with any provisions of this Agreement applicable to Ridge and (z) if Ridge fails, neglects or refuses to perform any such Services or obligation under or otherwise breaches this
Agreement, perform, or cause to be performed, any such Services or obligation or cure, or cause to be cured, such breach and bear joint and several liability with Ridge; provided, however, that in no event shall Broadridge or any other entity that
is not properly registered or licensed to perform any such Services or obligation be required to perform such Services or obligation; and 

  

	 	(b)	Penson shall (x) be responsible for the performance of all obligations of Client under this Agreement, (y) be responsible for the compliance with any
provisions of this Agreement applicable to Client and (z) if Client fails, neglects or refuses to perform any obligation under or otherwise breaches this Agreement, perform, or cause to be performed, any such obligation or cure, or cause to be
cured, such breach, or bear joint and several liability with Client; provided, however, that in no event shall Penson or any other entity that is not properly registered or licensed to perform any such obligation be required to perform of such
obligation. 

  

	 	(iii)	From time to time during the Term (as defined in Section 2 (Term) below), Broadridge and Penson (or their Affiliates) may elect to enter into additional written
schedules in Canada, the United States, the United Kingdom and such other countries for which Broadridge and Penson may agree from time to time (each, a “Territory” and collectively the “Territories”).
Each such additional schedule shall set forth: 

  

	 	(a)	the Services (defined below) that Ridge shall perform under such schedule; 

 

	 	(b)	specific Software (defined below) that Ridge licenses to Client in connection with Client’s receipt of the Services to be performed by Ridge under the schedule;
and 

  

	 	(c)	other terms and conditions as the parties may agree. 

Each such schedule (when signed by authorized officers of both parties) shall be governed by the terms and conditions of this Master
Services Agreement and deemed a Schedule hereunder. This Master Services Agreement, together with all Exhibits hereto and the Schedules, together with all Attachments thereto, shall be referred to, collectively, as the or this
“Agreement.” 
  

	 	(iv)	In the event of a conflict between the terms and conditions of any Schedule (including, without limitation, any Attachment or Appendix) and the terms and conditions of
this Master Services Agreement, the terms and conditions of the Schedule shall control for the purpose of the relevant Schedule. Except where otherwise indicated, all references in this Master Services Agreement to Sections or Exhibits are to
Sections to, and Exhibits of, this Master Services Agreement. 

  

	 	B.	Certain Defined Terms. 

The term “Affiliate” as used throughout this Agreement means as to any entity, any other entity that, directly or
indirectly, Controls, is Controlled by or is under common Control with such entity. 
 The term “Client”
as used throughout this Agreement means the applicable Client Local Affiliate receiving the Services under the applicable Schedule. For purposes of this Master Services Agreement, the use of the term “Client” shall mean “Penson”
when Penson is obligated to perform on behalf of Client under Section 1.A(ii)(b). 
 The term
“Control” (and derivatives thereof) as used throughout this Agreement means, with respect to any entity, the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of
such entity, whether through the ownership of voting securities (or other ownership interest), by contract or otherwise. 
  

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 The term “Governmental Authority” as used throughout this
Agreement means any governmental, regulatory or administrative body, agency or authority, any court of judicial authority, any arbitrator or any public, private or industry regulatory authority (including, without limitation, any SRO as defined in
the Exchange Act), whether foreign, federal, state or local. 
 The term “Laws” as used throughout this
Agreement means all laws, rules and regulations, including, without limitation, all privacy and data protection laws, rules and regulations, all as enacted, promulgated and amended from time to time by any Governmental Authority.
“Laws” shall also include contractual restrictions or obligations imposed upon a party by a Governmental Authority of which the affected party shall have given notice to the other party. 

The term “Ridge” as used throughout this Agreement means the applicable Ridge Local Affiliate and permitted
subcontractors of the applicable Ridge Local Affiliate performing the Services under the applicable Schedule. For purposes of this Master Services Agreement, the use of the term “Ridge” shall mean “Broadridge” when Broadridge is
obligated to perform on behalf of Ridge under to Section 1.A(ii)(a). 
 The term “Services” as used
throughout this Agreement means the services, products, functions and responsibilities of Ridge that are specified in the Schedules, together with the services, products, functions and responsibilities that are an inherent or customary part of such
specified services, products, functions and responsibilities, even if such inherent or customary services, products, functions and responsibilities are not specifically described in this Agreement. 

The term “Software” as used throughout this Agreement means all of the software and other technology necessary for
Client to access and use the Services, whether owned by Broadridge or Ridge or licensed by Broadridge or Ridge from third parties and including, without limitation, all improvements enhancements, modifications, updates, releases and revisions
provided in connection therewith. 
  

	 	C.	Service Levels. Ridge shall provide the Services and, as applicable, the Software so that they meet or exceed the service levels set forth in each Schedule, any
applicable service level agreement (each a “Service Level Agreement”), or as otherwise agreed to by the parties in writing (the “Service Levels”). Ridge will in the regular course of its business
monitor its performance with respect to such Service Levels and report such performance to Client in writing on a monthly basis or as otherwise required by each Schedule. 

In the event of a Service Level failure by Ridge that is not insignificant, Ridge shall take the following actions, each as soon as
practicable under the circumstances: (a) investigate and report in writing on the root cause of the problem, (b) advise Client in writing of the remedial efforts being undertaken with respect to this failure to meet the Service Level and
provide Client with and implement an improvement plan, (c) execute such remedial efforts, correct the problem and begin meeting the Service Level, (d) advise Client in writing from time to time on the status of Ridge’s remedial
efforts and (e) provide reasonable evidence to Client that the problem has been corrected. 
 Upon a failure by Ridge to
meet a Service Level, Client shall have the right either (a) to receive, subject to the terms and conditions of Attachment C (Service Levels) to the applicable Schedule, a credit in connection with such failure (each, a
“Service Level Credit”) against fees owing by Client under this Agreement, (b) if the acts or omissions or performance that relate to or underlie such failure to meet a Service Level also constitute a breach by
Broadridge or Ridge of any of its obligations under this Agreement, to forgo such Service Level Credit and seek monetary damages, subject to the provisions of Section 15 (Limitation on Liability) below or (c) to pursue any termination or
other remedy available to Penson or Client under this Agreement. 
 Throughout the Term (defined below), Ridge shall seek to
improve the quality, efficiency and effectiveness of the Services to keep pace with technological and operational advances. Ridge shall do this, among other things, by identifying and assessing the implementation of industry practices, ‘best
practice’ techniques and methods in providing the Services. In addition, Ridge shall provide the Services in a manner consistent with Ridge’s operation of its business generally, including, without limitation, training Ridge personnel in
techniques and technologies used generally within the Ridge’s industry and making investments to maintain the currency of the tools, infrastructure and other resources Ridge uses to provide the Services. 

 
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	2.	TERM. 

  

	 	A.	Term. The term of this Master Services Agreement shall begin on the Effective Date and shall continue until the later to occur of (i) all Schedules
hereunder expiring or being terminated and (ii) the end of any applicable Transition Period (as defined below) (the “Term”). 

  

	 	B.	Transition Services. At Client’s request upon termination or expiration of any Schedule for any reason, Ridge shall extend the provision of the Services and
the term of any licenses relating to Software for a period not to exceed twenty-four (24) months (“Transition Period”) beyond the effective date of expiry or termination of such Schedule and in good faith and
commercially reasonable manner agree to provide transition services to Client as requested by Client in writing for an orderly de-conversion of Client from Ridge’s platform (the “Transition Services”). In addition,
during the Transition Period, unless otherwise agreed to by the parties in writing, Ridge shall continue to provide the Services and any Software as they had been provided prior to the termination or expiration of the applicable Schedule in
accordance with the terms and conditions set forth in this Agreement. Any Transition Services to be provided by Ridge as requested in writing by Client during the Transition Period shall be provided to Client in accordance with the then-applicable
rates for the relevant services (unless the applicable Schedule is terminated pursuant to Section 18.A (Ridge’s Material Breach) in which case Transition Services shall be provided at Ridge’s cost and expense) or as otherwise agreed
to by the parties in writing. In the event a Schedule is terminated by Ridge in connection with Client’s failure to pay any fees due under such Schedule (except for payment failures that are subject to a bona fide dispute between the
parties), Ridge shall not be required to provide Transition Services or Services during the Transition Period until Client has cured any payment failures that are not subject to a bona fide dispute between the parties and unless Client pays
for such Transitions Services and Services monthly in advance. 

  

	3.	CHARGES. 

  

	 	A.	Fees. The fees for the Services and Software provided to Client under any Schedule shall be set forth in such Schedule. Except as expressly set forth in this
Agreement, there shall be no fees payable by Penson or Client in respect of Broadridge’s and Ridge’s performance of its obligations pursuant to this Agreement. Without limiting the generality of the foregoing, except as may be otherwise
provided in this Agreement, expenses incurred by Ridge in performing the Services and providing the Software shall not be separately reimbursable by Client. 

 

	 	B.	Fee Increases and Adjustments. Subject to the terms and conditions of any Schedule, Ridge may only increase the charges payable by Client under a Schedule as set
forth in the applicable Schedule. Except as set forth in a Schedule, in no event shall the charges be increased at anytime during the Schedule Term (as such term is defined in the applicable Schedule). 

 

	 	C.	Communications and Third-Party Charges. The communication and other non-Affiliated third-party charges set forth in the Schedules, if any, are based on current
costs that Ridge pays to common carriers and other third parties. Ridge reserves the right to pass on any increase, and shall pass on any decrease, in the charges of third parties not Affiliated with Ridge to Client provided any such increases shall
be passed through only to the extent they are passed through in the applicable Territory to all Ridge customers generally receiving the services of such common carriers and other third parties. Ridge shall use reasonable commercial efforts to
provide Client not less than thirty (30) days prior notice thereof. For clarity, Ridge shall not pass through communication or other charges of any Affiliates of Ridge. 

 

	 	D.	 Taxes. There shall be added to all charges invoiced to Client pursuant to this Agreement amounts equal to any applicable taxes, duties, charges
and other levies of any kind (other than taxes based on Ridge’s income or franchise taxes) applicable in the applicable Territory to the purchase or consumption of the Services, including, without limitation, provincial and local taxes,
(exclusive of taxes based on Ridge’s income and franchise taxes), payable in respect of the Services received by Client. Ridge agrees to reasonably cooperate with Client to enable Client to more accurately determine its tax liability and to
minimize such liability to the extent legally permissible and administratively reasonable. Ridge shall provide and make 

 
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reasonably available to Client any exemption certificates, resale certificates, information regarding out-of-state or out-of-country sales or use of equipment, materials or Services and other
information reasonably requested by Client and reasonably available to Ridge. 

  

	 	E.	Payment. Client shall pay each invoice that Ridge provides to Client thirty (30) days after the date Client receives such invoice, subject to any bona
fide dispute. If Client fails to pay any undisputed amounts under this Agreement when due, Client shall, upon written demand from Ridge, pay interest on such undisputed amounts at the rate of one percent (1%) per month (but in no event more
than the highest interest rate allowable by Law) from the due date until the date of payment. 

  

	 	F.	Rights of Offset. Without prejudice or limitation to any other rights or remedies of Penson or Client, if Penson or Client becomes entitled to receive any
payment, or receive any credit, under or in connection with this Agreement, including, but not limited to, in connection with Service Level Credits, indemnification claims and claims by Penson or Client for breach of this Agreement, Penson or Client
may, in its sole discretion, elect to reduce the principal amount of any note, or multiple notes, issued in connection with the Asset Purchase Agreement by an amount or amounts equal to all or part of such payment or credit in lieu of collection
payment or receiving credit. 

  

	4.	RIDGE RESPONSIBILITIES. Without limitation or prejudice to the provisions of this Master Services Agreement, any Schedule or any Service Level Agreement, in the
performance of any Services under the provisions of a Schedule, Ridge agrees and undertakes to: 

  

	 	A.	perform the Services professionally in accordance with any applicable Service Levels and the applicable provisions of this Agreement; 

 

	 	B.	liaise and communicate in a timely manner with Client through Client’s designated representative or such representative’s designee on matters related to the
Services and assign a qualified Ridge representative with whom Client will communicate. Ridge and Client may change their respective representatives from time to time by giving notice to the other. Ridge shall ensure that the representatives
servicing Client’s account are fully informed about the Services and Client’s business requirements; 

  

	 	C.	in a timely manner, provide Client with its standard user documentation relating to (i) the Services and/or Software, including, without limitation, any changes
thereto and (ii) Ridge’s procedures relating to the Services and use thereof; 

  

	 	D.	to the extent permitted by this Agreement or any applicable user documentation or procedures provided to Client, provide user access to the Services to persons
authorized by Client, such access being governed by Ridge’s reasonable security procedures; 

  

	 	E.	notify Client, and secure Client’s prior approval, if expenses beyond the defined charges within a Schedule or any Statement of Work (as defined below) may be
incurred or expected, unless otherwise specified in this Agreement; 

  

	 	F.	proceed according to Client’s reasonable written instructions for the disposition or delivery to Client of Client Information (as defined herein) or any data
relating to Customers (as defined herein); 

  

	 	G.	provide Penson and Client and their respective employees or authorized contractors with reasonable access to any facilities, machines, supplies or equipment which are
owned, operated or leased by Penson or Client in connection with the Services and which are located on the premises of Broadridge, Ridge or their agents subject to compliance by Penson and Client and their respective employees and authorized
contactors, with Broadridge’s and Ridge’s reasonable security, data center procedures and confidentiality requirements. Broadridge and Ridge will advise Penson and Client in advance of the applicable procedures and requirements;

  
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	 	H.	from time to time, at Client’s request, perform professional services that will be described in a written statement of work executed by both Ridge and Client
(“Statement-of-Work”). Upon the request of Client, Ridge and Client will in good faith, and without undue delay by Ridge, agree to the terms and conditions of a Statement-of-Work that will include, to the extent applicable
and without limitation, the information specified below: 

  

	 	(i)	Project identification, approach and objectives and the agreed-upon scope of the services; 

 

	 	(ii)	The deliverables, including, without limitation, reports, software, services, specifications, lists, plans, manuals, diagrams, flow charts, data and other documents
reports and recommendations, whether in written or electronic form (“Deliverables”) to be developed, delivered, prepared or required specifically for Client under such Statement of Work; 

 

	 	(iii)	Specifications in respect of each Deliverable; 

  

	 	(iv)	Acceptance tests or means proposed for testing Deliverables (“Acceptance Test”); 

 

	 	(v)	If applicable, the fees for the services under such Statement of Work and the applicable payment terms; 

 

	 	(vi)	Identification of project managers and other staffing by the parties, including, without limitation, names and position titles of key Ridge personnel who will be
providing the services (which personnel may be substituted by Ridge); 

  

	 	(vii)	Key project assumptions and responsibilities; 

  

	 	(viii)	Project schedule showing the time frame for all stages of implementation of the services and milestones of the Statement of Work along with all associated milestone
dates and production date, and other remedies for non-performance by Ridge; 

  

	 	(ix)	Description of the hardware and software that may have to be procured by Client or any of Customers (as defined herein) for the provision of the services pursuant to
the Statement of Work, as applicable; 

  

	 	(x)	Maintenance and support services to be provided by Ridge in connection with the Deliverables, if applicable; 

 

	 	(xi)	Applicable Service Levels, if applicable; 

  

	 	(xi)	Training services and training materials to be provided by Ridge under the Statement of Work, if applicable; 

 

	 	(xii)	Any Client resource commitments and responsibilities in addition to those set forth in this Agreement; and 

 

	 	(xiii)	Any other information or agreements deemed relevant by Ridge and Client; 

  

	 	I.	except as otherwise expressly provided in this Agreement and subject to Client providing the resources and materials required for it to receive the Services, provide at
Ridge’s expense, all software, hardware, communication lines and services, equipment, systems and other technology, resources and materials necessary for Ridge to provide the Services to Client in accordance with the provisions of this
Agreement; 

  

	 	J.	subject to Section XIV (Acquisition of or by Another Ridge Local Affiliate Client) and Attachment B (Service Bureau and Operations Support Services Price
Schedule) of the applicable Schedule, increase or decrease the volume of the Services upon Client’s request; 

  

	 	K.	subject to Section XIV (Acquisition of or by Another Ridge Local Affiliate Client) and Attachment B (Service Bureau and Operations Support Services Price
Schedule) of the applicable Schedule, under an existing Schedule provide the Services, in the applicable Territory, to such additional Affiliates of Penson or Client, as may be identified by Penson or Client from time to time to receive the Services
at the rates and in accordance with the terms and conditions set forth in this Agreement (however, in no event shall any Affiliate of Penson or Client be obligated or required to receive Services from Ridge); provided, however, that any conversion
services required for any such Affiliate shall be implemented pursuant to the Change Control Procedures applicable to Mandatory Changes and the Affiliate shall agree to be bound by the terms and conditions of the applicable Schedule;

  

	 	L.	notify Client of any proposed change of the locations from which Ridge provides the Services under a Schedule and obtain Client’s prior consent (which consent
shall not be unreasonably withheld) with respect to any such change in location only if such consent is required by Law; 

  

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	 	M.	use commercially reasonable efforts to obtain the approval of each relevant regulatory or self-regulatory agency or entity, if any, which regulates Ridge’s
performance of the Services and whose approval is necessary for Ridge to perform and deliver the Services in the applicable Territory (including, without limitation, securities and commodities exchanges, associations of securities and/or commodities
dealers, federal, provincial and local Governmental Authorities); 

  

	 	N.	as required by all applicable Laws and Ridge policies in effect from time to time, conduct, in compliance with such Laws and policies, a criminal background check and
drug-screening on, and provide bonding for, each individual who provides Services, at Ridge’s cost and expense, and not allow anyone to perform Services or assign anyone to the account of Penson or Client who has (i) a felony conviction or
(ii) failed a drug test administered by Ridge; and 

  

	 	O.	provide an adequate number of qualified individuals with suitable training, education, experience and skill to perform the Services. 

 

	5.	COMMUNICATIONS LINES AND EQUIPMENT. Subject to receiving Client’s approval, Ridge may procure appropriate communications lines and equipment to enable
Client to access the Services. Where Ridge procures such communication lines or equipment for Client, Ridge shall procure such services from reputable vendors but shall not be responsible for the reliability or continued availability of the
communications lines and equipment used by Client in accessing the Services. Ridge shall replace any such third party vendors in the event that (a) reliability or continued availability is a significant issue or (b) at least fifty percent
(50%) of Ridge’s clients utilizing such services in the applicable Territory request such replacement. 

  

	6.	GOVERNANCE. Broadridge and Penson shall each appoint at least two senior level managers to a joint committee that shall meet no less than monthly to address
issues that may arise in connection with the performance of the Services. In addition to the foregoing, the parties have agreed to the detailed governance provisions set forth in Exhibit C (Governance Structure). 

 

	7.	USE OF THE SERVICES AND TRAINING. 

  

	 	A.	Use of Services. Client shall use the Services in accordance with such rules as may be generally established and communicated by Ridge as applied to all of
Ridge’s customers in the applicable Territory generally and set forth in materials promptly furnished by Ridge to Client in writing, provided, however, that Ridge shall not change the Services or any such rules in a manner that significantly
interferes or significantly negatively impacts Client’s use of the Services or that results in any breach or violation in connection with the Assigned Contracts (as defined in the Asset Purchase Agreement) or establish rules that are
inconsistent with or violate the provisions of this Agreement. Ridge agrees to use commercially reasonable efforts to provide Client with no less than thirty (30) days’ notice of any change to the rules relating to the use of the Services.

 Except with respect to those Model A Clearing services provided by Client to its clients in the U.K., Client
(and Affiliates of Client who have agreed to be bound by the terms and conditions of the applicable Schedule) shall use the Services only for its own business purposes in support of the brokerage or financial services and/or products it provides to
its customers, correspondents and the clients and customers of such correspondents (including, without limitation, the brokerage customers introduced to Client by its correspondents (i.e., broker-dealers or other registered persons clearing or
receiving services through Client) (collectively “Customers”)). For the avoidance of doubt, the foregoing prohibits Client (and Affiliates of Clients who have agreed to be bound by the terms and conditions of the applicable
Schedule), except as expressly permitted by Ridge in writing, or other than as permitted herein, from selling, leasing, licensing, providing as a service bureau or otherwise providing, directly or indirectly, any of the Services or any portion
thereof to any third-party exclusively as a technology services reseller or provider or outsourcer (e.g., acting in the same capacity as Ridge with respect to such third-party) without providing to such third-party Client’s normal course
securities or financial services. 
  

	 	B.	 Approvals. Client will use commercially reasonable efforts to obtain the approval of each relevant regulatory or self-regulatory agency or
entity, if any, which regulates Client and whose approval is 

  

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necessary for Client to receive the Services in the applicable Territory (including, without limitation, securities and commodities exchanges, associations of securities and/or commodities
dealers, federal, provincial and local Governmental Authorities). 

  

	 	C.	Training. Ridge, at its expense, shall provide Client with training in the use of the Services as reasonably requested by Client. 

 

	8.	SOFTWARE. 

  

	 	A.	License Grant. Broadridge and Ridge hereby grant to Client in each Territory during the applicable Schedule Term a limited, non-exclusive, non-transferable
(other than as permitted herein including, without limitation, a permitted assignment), royalty-free license and/or sublicense, as the case may be, to use, and as applicable for Customers to use, the Software and related documentation in connection
with their receipt and use of the Services. The Software and documentation may only be used by Client and its Customers in connection with the Services as permitted in Section 7.A (Use of Services). above except as otherwise permitted by
Broadridge and Ridge. The license of Software shall be to the object code only unless specifically stated otherwise in the Schedule related thereto. Client accepts such license and/or sublicense, as the case may be, from Broadridge and Ridge for the
Software upon the terms and conditions set forth in this Master Services Agreement. Broadridge and Ridge will be responsible for obtaining and maintaining all required consents with respect to the license for the Software in this Section 8.A
(License Grant), including, without limitation, responsibility for the financial costs of obtaining such consents (e.g., for third party access, use, update or relocation consents). 

 

	 	B.	Updates. Broadridge and Ridge agree and undertake to provide the Client with, as and when released and at no additional charges, any and all improvements,
enhancements, modifications, updates, releases and revisions to the Ridge Products (as defined below), including, without limitation, customizations generally made available to Ridge’s other clients, delivered or made available by Broadridge
and Ridge to Ridge’s clients generally using the Services (or applicable portion thereof) or substantially similar services. Client shall use commercially reasonable efforts to implement all improvements, enhancements, modifications, updates,
releases and revisions to the Ridge Products delivered by Broadridge or Ridge to Client within forty-five (45) days after Client’s receipt thereof; provided, however, that the implementation of any such change required by the foregoing
will not significantly impair use of the Services by Client or its Customers as contemplated by this Agreement. Broadridge and Ridge undertake not to modify the Ridge Products in a manner which negatively impacts use of the Ridge Products by Client
or its Customers or receipt of the Services by Client or its Customers as set forth in this Agreement. Client shall not, without the prior consent of Broadridge or Ridge, which shall not be unreasonably withheld or delayed, change or otherwise
modify any Software, except for Client Software (as defined below). 

  

	 	C.	Client Software. Upon Client’s request, Ridge shall use its commercially reasonable efforts to provide Client with custom modification to the Services,
custom software programming with respect to the Software (the “Client Software”) or custom program maintenance, in which case, the terms and conditions governing such custom modification to the Services, Client Software or
custom program maintenance will be set forth in the applicable Schedule or Statement-of-Work (including, without limitation, the ownership thereof and any changes therefor). Any Client Software, custom modification to the Services, custom software
programming, custom program maintenance or other professional services associated with the Client Software shall be provided in a timely manner and on terms and conditions at least no less favorable then those offered to any other customer of Ridge
(including, without limitation, as to priority and resource allocation). 

  

	9.	OWNERSHIP AND USE OF RIDGE PRODUCTS. 

  

	 	A.	 Ownership. Client acknowledges that, as between Client, Broadridge and Ridge, the Ridge Products are and shall remain the exclusive and
confidential property of Broadridge and Ridge. For purposes of this Agreement: “Ridge Products” means the Software and systems provided and owned by Broadridge or Ridge and used to provide the Services, the Ridge websites
used to host and provide Services through the Internet and the Broadridge or Ridge processes and materials and documentation relating to such Software, Services, systems and websites, including, without limitation, (i) any modifications or
enhancements made to the Software, databases that are a part of the Services, or systems used to provide the Services, (ii) any 

 
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plans contemplating further development of the foregoing and (iii) all copyrights, patents, trade secrets and other intellectual and proprietary rights relating to all of the foregoing.
Broadridge and Ridge acknowledge that, as between Client, Broadridge and Ridge, the intellectual property owned or provided by Penson or Client is and shall remain the exclusive and confidential property of Client. For the avoidance of doubt,
nothing in this Agreement shall transfer, grant or provide Broadridge or Ridge or any other person with any rights in intellectual property or confidential information or proprietary rights or data or information of, or provided by, Penson or Client
or any of their Affiliates or any Customers, correspondents or customers and none of such intellectual property or confidential information or proprietary rights or data or information shall be considered Ridge Products or Ridge Information.

  

	 	B.	Use. Client may use the Ridge Products only in conjunction with the Services and Software. Client shall not copy, in whole or in part, the Ridge Products or
related documentation, whether in the form of computer media, printed or in any other form; provided, however, that Client may make an appropriate number of copies of the Ridge Products for back-up, quality assurance, testing, archive and disaster
recovery purposes only or to comply with the requirements of Governmental Authorities. Client shall not make any alteration, change or modification to any of the Ridge Products without Broadridge’s or Ridge’s prior consent in each
instance, which consent shall not be unreasonably withheld or delayed. CLIENT MAY NOT RECOMPILE, DECOMPILE, DISASSEMBLE, OR REVERSE ENGINEER THE RIDGE PRODUCTS (INCLUDING, WITHOUT LIMITATION, THE SOFTWARE). 

 

	 	C.	Return or Destroy. Upon the later of the (a) completion of Transition Services and (b) expiration or termination of a Schedule for any reason, and
subject to the terms and conditions hereof, Client shall return to Ridge or, upon Ridge’s request, use reasonable commercial efforts to destroy, all copies of the Ridge Products that are in its possession that do not relate to any other
existing Schedules, except as otherwise required by applicable Law. Nothing is this Agreement will require the destruction of copies of any records or files containing information that has been created pursuant to any automated archiving or back up
procedure that cannot be reasonably deleted, which records and files will continue to be subject to the confidentiality provisions herein. 

  

	10.	CONFIDENTIALITY. 

  

	 	A.	 Definitions. In connection with this Agreement, including, without limitation, the evaluation of new services contemplated by the parties to be
provided by Ridge under this Agreement, information will be exchanged between and among Broadridge, Ridge, Penson and Client. Broadridge and Ridge shall provide information that may include, without limitation, confidential information relating to
the Ridge Products, trade secrets, strategic information, information about systems and procedures, confidential reports, Ridge customer information, vendor and other third party information, financial information including, without limitation, cost
and pricing, sales strategies, computer software and tapes, programs, source and object codes, and other information that is provided under circumstances reasonably indicating it is confidential (collectively, the “Ridge
Information”), and Penson and Client shall provide information that may include, without limitation, confidential information relating to Penson, Client or any of their Affiliates, customer information, which may include Personal
Information (defined below), to be processed by the Services, and other information, including, without limitation, trade secrets, strategic information, information about systems and procedures, confidential reports, customer information, vendor
and other third party information, financial information including, without limitation, cost and pricing, descriptions of Penson’s or Client’s business (including, without limitation, features of any product or service and details of
implementation of any such business), sales strategies, computer software and tapes, programs, source and object codes, and other information that is provided under circumstances reasonably indicating it is confidential (“Client
Information”) (the Ridge Information and the Client Information collectively referred to herein as the “Information”). Subject to the terms and conditions hereof, Personal Information that is exchanged shall also
be deemed Information hereunder. “Personal Information” means personal information about an identifiable individual including, without limitation, name, address, contact information, age, gender, income, marital status,
finances, health, employment, social insurance number and trading activity or history. Subject to applicable legal and regulatory requirements, Personal Information shall not include the name, title or business address or business telephone number
of an employee of an organization in relation to such individual’s capacity as an employee of an organization. As between the parties hereto, the Information of each party shall remain the exclusive property of such party.

  

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Notwithstanding anything to the contrary, (i) Ridge Information shall not include or contain any Client Information, including, without limitation, Personal Information provided by Penson or
Client, which shall remain the exclusive property of Penson or Client and (ii) Client Information shall not include or contain any Ridge Information, including, without limitation, Personal Information provided by Ridge.

  

	 	B.	Obligations. Subject to the terms and conditions hereof, the receiver of Information (the “Receiver”) shall keep any Information provided
by the other party (the “Provider”) strictly confidential and shall not, without the Provider’s prior consent, disclose such Information in any manner whatsoever, in whole or in part, and shall not duplicate, copy or
reproduce such Information, including, without limitation, by means of photocopying or transcribing of voice recording, except in accordance with the terms and conditions of this Agreement or in connection with its receipt or provision of Services
hereunder. The Receiver shall only use, copy or duplicate the Information as reasonably required to carry out the purposes of this Agreement. 

  

	 	C.	Disclosure Generally. Broadridge and Ridge and Penson and Client agree that the Information shall be disclosed by the Receiver only to: (i) the employees,
agents and consultants of the Receiver and its Affiliates who have a “need to know” such Information in connection with Receiver’s performance or use of the Services, as applicable, and (ii) auditors, counsel, and other
representatives of the Receiver and its Affiliates for the purpose of providing assistance to the Receiver in the ordinary course of Receiver’s performance or use of the Services, as applicable; in each case, who have been informed of the
confidential nature of the Information and agreed to maintain the confidentiality of such Information and who have entered into a written confidentiality agreement with the Receiver on terms and conditions no less restrictive than the
confidentiality terms and conditions set forth in this Agreement. The Receiver will take reasonable steps to prevent a breach of its obligations by any employee or third party. The Receiver shall be liable for any violation of this Section 10
(Confidentiality) by its employees, or any third party to whom Receiver discloses Information of the Provider. 

  

	 	D.	Compelled Disclosure. If the Receiver or anyone to whom the Receiver transmits the Information pursuant to this Agreement becomes compelled, in accordance with
any legal or regulatory requirement, including, without limitation, the requirements of any self-regulatory organization or agency having jurisdiction over such persons or any regulations or requirements relating to fair disclosure pertaining to a
party or its Affiliates, to disclose any of the Information, then the Receiver will provide the Provider with prompt notice before such Information is disclosed (or, in the case of a disclosure by someone to whom the Receiver transmitted the
Information, as soon as the Receiver becomes aware of the compelled disclosure), if not legally prohibited from doing so, so that the Provider may seek a protective order or other appropriate remedy and/or waive compliance with the provisions of
this Agreement. If such protective order or other remedy is not obtained, then the Receiver will furnish only that portion of the Information which the Receiver is advised by reasonable written opinion of counsel is legally required and will
exercise its reasonable efforts to assist the Provider (at Provider’s sole expense) in obtaining a protective order or other reliable assurance that confidential treatment will be accorded to the Information that is disclosed.

  

	 	E.	Exceptions. Except with respect to Personal Information, nothing contained herein shall in any way restrict or impair the right of the Receiver to use, disclose
or otherwise deal with: 

  

	 	(i)	Information which at the time of its disclosure is publicly available, by publication or otherwise, or which the Provider publicly discloses either prior to or
subsequent to its disclosure to the Receiver or which is or becomes part of the public domain without breach of this Agreement by Receiver; 

  

	 	(ii)	Information which the Receiver can show was in the possession of the Receiver, or its parent, subsidiary or Affiliated company, at the time of disclosure and which was
not acquired, directly or indirectly, under any obligation of confidentiality to the Provider; 

  

	 	(iii)	Information which is independently acquired or developed by the Receiver without violation of its obligations hereunder, including, without limitation, Information
obtained from a third party, not known by the Receiver to have an obligation to maintain the confidentiality of such information; or 

  

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 MASTER SERVICES AGREEMENT 

 

	 	(iv)	Information relating to this Agreement in the Receivers’ or its Affiliates’ public securities filings if the Receiver or its Affiliates shall determine that
this Agreement is required to be so disclosed in accordance with applicable securities Laws or any other applicable legal or regulatory requirements. 

In addition, each employee of the Receiver shall be free to use for any purpose, after termination of this Master Services Agreement, any
general knowledge, skill or expertise (but which shall specifically exclude any Information) that (i) is acquired by such employee in performance of a parties obligations hereunder, (ii) remains part of the general knowledge of such
employee after access to the tangible embodiment of the Provider’s Information, (iii) does not contain or include any such Information and (iv) is not otherwise specific to the Provider. 

 

	 	F.	Return or Destroy. Upon the later to occur of the termination of a Schedule for any reason or the completion of the applicable Transition Services, the Receiver
shall return to the Provider, or use reasonable commercial efforts to destroy, any and all copies of Information of the other that are in its possession relating to such terminated Schedule, except for any copies reasonably required to maintain the
Receiver’s customary archives or computer back-up procedures, and as otherwise required by applicable Law. Notwithstanding anything to the contrary, Broadridge and Ridge shall comply with Penson’s instruction relating to return or
disposition of any Client Information in Broadridge’s or Ridge’s possession; provided, however, that, Ridge shall have the right to keep one (1) copy of such Information as may be reasonably required to evidence the fact that it has
provided the Services to Client which records and files will continue to be subject to the confidentiality provisions herein. Client shall pay Ridge (at the rates set forth in the applicable Schedule, or, if no such rates are set forth, at
Ridge’s then current charges) for Ridge’s actual time spent and incidental expenses actually incurred in connection with such return. Additionally, upon termination or expiration of a Schedule, Ridge agrees to store Client Information and
other Client property for a period not to exceed twelve (12) months in a reasonable format required by Client and at Client’s reasonable cost and expense, and Ridge will continue to observe the confidentiality provisions of this Agreement
with respect thereto. 

  

	11.	PERSONAL INFORMATION. 

  

	 	A.	Obligations. Neither Broadridge nor Ridge shall use any Personal Information of Customers or such Customer’s clients except to the extent reasonably
required to carry out its obligations under this Agreement and shall only disclose Personal Information to persons who have been informed of the confidential nature of the Personal Information. Broadridge and Ridge shall have such persons sign
agreements whereby they agree to keep such information strictly confidential and limit any use made of such Personal Information by such persons to those reasons for which it was explicitly disclosed. In connection with Ridge’s provision of the
Services, Ridge shall comply with all privacy and data protection Laws applicable to Ridge or its performance and delivery of the Services, including, without limitation, if applicable, the EU Data Protection Directive and EU Member State
implementing laws, including, without limitation, EU laws that apply to cross-border data transfers and corresponding Laws in the Territories. Broadridge and Penson agree that where, in order to receive Services under this Agreement, a Client Local
Affiliate in the European Economic Area (“EEA”) or Canada will need to transfer data to Ridge in a country not ensuring an adequate level of data protection, in accordance with EU Laws or Canadian Laws, the applicable Client
Local Affiliate and Ridge Local Affiliate will enter into the European Commission’s approved data export clauses for data controller/data processor exports (version 2001) as soon as practicable (and in any event within thirty (30) days)
after the date that the need for such transfer of data is first identified by the parties. For avoidance of doubt, Broadridge and Penson understand and acknowledge that these obligations are in addition to the privacy and security obligations
specified in this Agreement. 

 In addition, Ridge shall have obligations with respect to Compliance Directives
that relate to privacy and data protection Laws as set forth in Section 16.C (Compliance Directives) below. Broadridge and Ridge agree to (and as long as legally permitted) comply with Penson’s commercially reasonable requests in
connection with the treatment, handling and disclosure of Personal Information made available to Ridge by Client, including, without limitation, any information relating to Customers. 

 
 Broadridge/Penson Proprietary and Confidential 

 

 11 

 MASTER SERVICES AGREEMENT 

 

 In addition and notwithstanding anything to the contrary herein or otherwise, with
respect to Personal Information provided or otherwise made available to Broadridge or Ridge by Penson, Client or Client’s Affiliates and Customers, Broadridge and Ridge agree: 

(i) not to use the Personal Information for any purposes other than those related to the performance of Broadridge’s or Ridge’s
obligations under this Agreement; 
 (ii) to promptly forward any individual’s request for access to Personal Information to
Penson and Client, and to reasonably co-operate with Penson or Client (at Penson’s or Client’s expense) in responding to such access request, including, without limitation, providing information regarding the use and disclosure of such
Personal Information by Broadridge or Ridge; 
 (iii) to promptly notify Penson and Client of any complaints received or any
notices of investigation or non-compliance from any Governmental Authority related to the collection, use or disclosure of Personal Information, and to reasonably co-operate with Penson and Client and reasonably assist in any such investigation, all
at Penson’s and Client’s expense; 
 (iv) that as between Penson and Client and Broadridge and Ridge, Penson and Client
are and remain the exclusive owners of all right and title in and to the Personal Information and shall be and remain in complete control of the collection, use and disclosure of the Personal Information. No access to or custody over Personal
Information by Broadridge or Ridge or other persons as permitted in this Agreement shall be construed in any manner as providing control, power, authority or any other rights with respect to such Personal Information. Control of all Personal
Information is vested solely in Penson and Client and their permitted assigns and nothing in this Agreement shall in any way be construed to grant control of the Personal Information to Broadridge and Ridge, or any subsidiary, Affiliate,
subcontractor or third party except to the extent expressly permitted by this Agreement. Broadridge and Ridge shall at all times adhere to the written directions of Client (and its assignees) with respect to the Personal Information, so long as such
written directions are lawful. Under no circumstances shall Broadridge or Ridge enter into any relationship, contractual or otherwise, with another person (other than regulatory authorities, or as required by applicable Law or the order of any
court) involving sharing or access to the Personal Information, except as set out in this Agreement or approved by Penson or Client in advance; and 

(v) upon the expiration or termination of a Schedule or upon Penson’s or Client’s request, to cease any and all use of the
Personal Information and other data of Customers or any Affiliates’ customers and their respective clients disclosed under such Schedule and all copies thereof, and return same to Penson or Client or destroy same in a manner designated by
Penson or Client or otherwise agreed by the parties, except that Ridge may retain one (1) copy for legal and audit purposes provided such copy is protected as Personal Information and confidential information in accordance with this Agreement.

  

	 	B.	Security Measures. In connection with providing the Services, Broadridge and Ridge shall (i) establish, implement and maintain commercially reasonable
measures to protect the security, confidentiality and integrity of Personal Information of Penson’s or Client’s customers against anticipated threats, unauthorized access, disclosure or use, and improper disposal and (ii) provide
Penson or Client with information regarding such security measures upon the reasonable request of Penson or Client. 

  

	 	C.	 Security Breaches. Each party shall promptly provide the other party with notice of (i) any disclosure, access to or use of any Personal
Information relating to such other party’s customers or employees in breach of this Master Services Agreement and (ii) any unauthorized intrusion into systems containing such other party’s Personal Information. The party who had
possession or control of the applicable Personal Information at the time of the breach or intrusion shall at its cost and expense (1) investigate and respond to, and remediate the effects of, the breach or intrusion in accordance with
applicable Laws and such party’s own policies and procedures, and using commercially reasonable efforts and (2) provide the other party with assurance reasonably satisfactory to such other party that such breach or intrusion shall not
recur. The response and remediation required under the preceding sentence may include, to the extent applicable, (A) developing and delivering legal notices required by any applicable Laws, (B) making available a toll free telephone number
or numbers (or where not available, a dedicated telephone number or numbers) where 

  

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 MASTER SERVICES AGREEMENT 

 

	 	
affected individuals may receive individual specific assistance and information relating to the breach or intrusion and (C) providing free credit reports, and/or credit monitoring/repair
services for affected individuals for the longer of one (1) year or the period required by applicable Laws following the announcement or disclosure of the breach or intrusion or notice to the affected individuals. Client shall have the right to
participate in any security investigation relating to the Personal Information of any customer of Penson or Client. Notwithstanding the foregoing or anything in this Agreement to the contrary, neither party shall be precluded from immediately
pursuing any rights or remedies it may have under or relating to privacy, security or confidentiality. 

  

	12.	DATA SECURITY AND ACCESS. 

  

	 	A.	Data Security Measures. Broadridge and Ridge will maintain commercially reasonable security measures, including, without limitation, without limitation those
described in Exhibit B (Ridge Data Security Measures) attached hereto, designed to ensure that access to the Penson or Client files is available only to Penson or Client and those entities that process information contained in the Penson
or Client files in order for Ridge to execute the Services (e.g., Canadian stock exchanges, clearing agencies, NYSE and DTC). Subject to the foregoing and Section 16 (Laws and Governmental Regulations), Broadridge and Ridge reserve the right to
issue and change procedures from time to time to improve file security. Broadridge or Ridge, as applicable, will notify Penson or Client, as applicable, prior to making any such changes and obtain Penson’s or Client’s prior consent (which
consent shall not be unreasonably withheld) with respect to the change only if such consent is required by Law. 

  

	 	B.	Loss or Alteration. Broadridge and Ridge will take commercially reasonable precautions to prevent the loss of or alteration of the Penson and Client files
retained by Broadridge and Ridge which shall include commercially reasonable data back-up procedures. Penson and Client will keep copies of the source documents of the Penson and Client files delivered to Broadridge or Ridge and will maintain
procedures external to the Broadridge and Ridge systems for the identification of such losses and for the reconstruction of lost or altered Penson and Client files, to the extent deemed necessary by Penson and Client. 

 

	 	C.	Audits. Ridge’s practices relating to audits of the Services shall be set forth in the Schedule relating to such Services. Except as otherwise provided
in the applicable Schedule relating to specific Services, Ridge shall have an independent third party audit performed annually describing Ridge’s security and control policies and procedures with respect to the Services consistent with past
practices. 

  

	 	D.	Personnel. Ridge personnel and contactors performing services at any Client location will observe and comply with Client’s security procedures, rules,
regulations, policies, working hours and holiday schedules of which they have actual notice and Ridge will use its commercially reasonable efforts to minimize any disruption to Client’s normal business operations while performing services at
any Client location. 

  

	 	E.	Security Breaches. Broadridge and Ridge shall promptly provide Penson or Client, as applicable, with notice of any breach of data security involving Penson or
Client files or Information, as applicable, in the possession of Broadridge or Ridge or any of their Affiliates or subcontractors and shall at its cost and expense (1) investigate and respond to, and remediate the effects of, the security
breach in accordance with applicable Laws and Broadridge’s and Ridge’s policies and procedures, and using commercially reasonable efforts, (2) provide Penson and Client with assurance reasonably satisfactory to such other party that
such breach or intrusion shall not recur, (3) promptly furnish to Penson and Client full details that Broadridge or Ridge has or may obtain regarding such unauthorized access and use reasonable efforts to assist Penson and Client in
investigating or preventing the reoccurrence of any such access and (4) cooperate with Penson and Client in any litigation and investigation against third parties deemed reasonably necessary by Penson and Client to protect its rights.

  

	 	F.	 Ownership and Access to Client Data. As between Penson and Client and Broadridge and Ridge, Penson and Client shall own all right, title and
interest in and to all Client Information, files and data, including, without limitation, any and all Client Information, files or data resulting from the performance of the Services. Penson and Client shall at all times have the right to access and
use the Client Information, files and data. Broadridge and Ridge shall deliver Client Information, files and data, or cause the same to be delivered to Penson and Client, upon demand in accordance with Attachment B (Service Bureau and

  

Broadridge/Penson Proprietary and Confidential 
  

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 MASTER SERVICES AGREEMENT 

 

	 	
Operations Support Services Price Schedule) to the applicable Schedule or as otherwise agreed by the parties, and upon the later of the expiration or termination of the applicable Schedule or the
completion of the Transition Services (at Ridge’s cost). Broadridge and Ridge shall deliver such Information, files and data in the format and on the media in use as of the date of the demand or time of required delivery, as applicable.

  

	13.	WARRANTY. 

  

	 	A.	Conformance with Specifications. Broadridge and Ridge warrant to Penson and Client that the Services, the Software and the Client Software, if any, will conform
to their respective functional and technical specifications. Such specifications are subject to amendment by mutual agreement, from time to time, in which case the Services, Software and Client Software will conform to their respective modified
functional and technical specifications; provided, however, that any such amendment shall not significantly impair or reduce the functionality of the Services or Client’s use of such Services. This warranty shall not extend to Software or
Client Software to the extent that the failure to perform is caused by an alteration or modification by anyone other than Broadridge or Ridge or their agents or otherwise authorized by Broadridge or Ridge or their agents. 

 

	 	B.	Right to Furnish. Penson and Client represent and warrant to Broadridge and Ridge that they have the right to furnish the Client Information and any other
materials provided to Broadridge and Ridge in connection with Broadridge and Ridge performing their obligations as contemplated herein and in the Schedules (neither Penson nor Client shall be deemed to have furnished to Broadridge or Ridge any
Client Information relating to any of the Assigned Contracts (as defined in the Asset Purchase Agreement) as of the Effective Date). Broadridge and Ridge represent and warrant to Client that they have the right (including, without limitation, under
the Assigned Contracts) to provide the Services, Software, Ridge Information and any other services provided to Penson and Client under this Agreement in connection with Broadridge and Ridge performing its obligations as contemplated herein and in
the Schedules. 

  

	 	C.	Professional Performance. Ridge warrants to Client that the Services shall be performed in a diligent, professional and workmanlike manner and by competent and
skilled personnel duly qualified to carry out their responsibilities required for the applicable service. 

  

	 	D.	Viruses. Broadridge and Ridge represent, warrant, and covenant to Penson and Client that they shall use their commercially reasonable efforts to ensure that the
Software does not include, and it shall use commercially available virus scanning software to detect the inclusion of, any computer code, program, or programming device designed to disrupt, modify, delete, damage, deactivate, disable, harm, or
otherwise impede the operation of the Software, or any other associated programs, firmware, hardware, computer system, or network (sometimes referred to as “Trojan horses,” “viruses,” or
“worms”), or any other similar harmful, malicious, or hidden procedures, routines, or mechanisms that would intentionally cause such Software to cease functioning or to damage or corrupt data, storage media, programs,
equipment, or communications, or otherwise interfere with Penson’s or Client’s operations (collectively, “Destructive Elements”). If Broadridge or Ridge detect any such Destructive Elements in the Software,
Broadridge or Ridge agree to eliminate such Destructive Elements as promptly as reasonably practicable and shall notify Penson and Client thereof as soon as possible. 

 

	 	E.	No Conflict with Assigned Contracts. Broadridge and Ridge represent and warrant to Penson and Client that the transactions contemplated by this Agreement
(including, without limitation, the performance of the Services by Ridge in accordance with the provisions of this Agreement), do not conflict with or violate, or otherwise result in a breach of, the provisions of any of the Assigned Contracts.
Broadridge and Ridge represent, warrant and covenant to Penson and Client that they shall not implement any changes to the Services that will, or will be likely to, result in a breach under any of the Assigned Contracts. 

 

	 	F.	Disclaimer. EXCEPT AS SPECIFICALLY PROVIDED IN THIS MASTER SERVICES AGREEMENT OR ANY SCHEDULE, THERE ARE NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, INCLUDING,
WITHOUT LIMITATION, ANY IMPLIED WARRANTIES MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. 

  

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	14.	INDEMNITY. 

  

	 	A.	Broadridge Indemnity. Broadridge shall indemnify, defend and hold harmless Penson and its Affiliates and its and their respective directors, officers, employees,
agents, successors and permitted assigns (“Client Indemnitees”) from and against any and all losses, damages, liabilities, demands, claims, actions, proceedings and related expenses (including, without limitation, reasonable
attorneys’ fees and expenses) (referred to collectively hereinafter as “Losses”) incurred by Client Indemnitees arising out of or resulting from third-party claims related to: 

 

	 	(i)	any infringement by the Services or the Software of any patent, copyright, trademark, service mark, trade secret or other intellectual property rights in the
Territories (“Intellectual Property Right”) of any third party. With respect to claims under this Subsection (i), if Client is enjoined or otherwise prohibited from using the Services or such Software, Broadridge or
Ridge shall, at their sole expense and at their option, (a) procure for Client the right to continue using the Services or such Software, or (b) substitute a non-infringing version of the services or such Software so that the Services or
such Software becomes non-infringing and still conforms in all material respects to its applicable functional and technical specifications or any documentation provided hereunder, or, if neither of the foregoing options is available in a
commercially reasonable solution, then Ridge may terminate the infringing Services and/or Software and eliminate the charges for the terminated Services and/or Software and if Ridge elects to terminate such Services or Software, and as a result of
such termination, the Services and/or Software under the applicable Schedule are adversely affected in a material manner, then Client may terminate the applicable Schedule. Notwithstanding the foregoing, Broadridge or Ridge shall have no liability
for any claims of infringement of any Intellectual Property Right to the extent such infringement is caused by (x) Client’s use of the Software in combination with software, data or services not supplied by Broadridge or Ridge as part of
this Agreement or otherwise authorized by Broadridge or Ridge, or (y) any modification or attempted modification of such Software made by anyone other than Broadridge or Ridge or its agents or without Ridge’s or its agents’
authorization; 

  

	 	(ii)	Broadridge or Ridge’s failure to comply with any Ridge Laws; 

  

	 	(iii)	any fines or penalties assessed by any Governmental Authority resulting from the implementation of any change by Ridge or the establishment of any new or modified rule
by Ridge for which Ridge is responsible under Section 16.F (Implementation of Changes in Laws) below; 

  

	 	(iv)	physical injury to persons or tangible personal property caused by the fault or negligence of Broadridge’s or Ridge’s officers, employees, agents, or
representatives; 

  

	 	(v)	any claim or assertion by any of the individuals performing the Services including, without limitation, any claim or assertion that Client Indemnitees should be deemed
the “employer” or “joint employer” of any of the individuals performing Services under this Agreement, but excluding any claim or assertion that is the subject of Penson’s indemnification obligation under
Section 14.B(ii) or Section 14.B(iii) below; or 

  

	 	(vi)	any claims brought against Penson or Client by Ridge’s suppliers arising from or related to Ridge’s provision of providing the Services hereunder, but
excluding any claim or assertion that is the subject of Penson’s indemnification obligation under Section 14.B(iii) below. 

  

	 	B.	Penson Indemnity. Penson shall indemnify, defend and hold harmless Broadridge and its Affiliates and its and their respective directors, officers, employees,
agents, successors and permitted assigns (“Ridge Indemnitees”) from and against any and all Losses incurred by Ridge Indemnitees arising out of or resulting from any third-party claims related to: 

 

	 	(i)	Data or information provided by Penson or Client so long as such claims relate to the data or information at the time they were initially provided to Broadridge or
Ridge by Penson or Client and in the form they were initially provided to Broadridge or Ridge by Penson or Client; 

  

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 15 

 MASTER SERVICES AGREEMENT 

 

	 	(ii)	Penson or Client’s failure to comply with any Client Laws; 

  

	 	(iii)	physical injury to persons or tangible personal property caused by the fault or negligence of Penson’s or Client’s officers, employees, agents or
representatives; 

  

	 	(iv)	any Customer Dispute (as defined below) with respect to the Services, except to the extent that such Customer Dispute arise from (a) Broadridge or Ridge’s
gross negligence, willful misconduct or fraud; (b) a Ridge operational error for which Ridge is responsible under Section 15.B (Historical Losses) (below); (c) a claim for which Penson or Client is indemnified under Section 14.A
(Ridge Indemnity); or (d) a matter that would give rise to an indemnification obligation of Broadridge or Ridge under the Asset Purchase Agreement. For purposes of the forgoing, a “Customer Dispute” shall mean any error,
controversy, dispute or discrepancy between Penson or Client and any of its Customers, any Customers’ accounts, any counterparty to a transaction by Penson or Client, and any of its correspondents or any of their Customers or related to the
Customers or any Customers accounts or clearing broker proprietary accounts; 

  

	 	(v)	any claims brought against Broadridge or Ridge by Client’s suppliers arising from or related to Ridge’s provision of the Services hereunder, but excluding any
claim or assertion that is the subject of Broadridge’s indemnification obligation under Section 14.A(iv) above; or 

  

	 	(vi)	Penson or Client exercising its right to directly, or through an agent, take control of a Service pursuant to Section 19.O (Step In Rights) below.

  

	 	C.	Indemnity Procedures. A party seeking indemnity under this Section 14 (Indemnity) shall: (i) promptly after receiving notice of the commencement of a
claim or litigation for which indemnity may be sought under this Section 14 (Indemnity), give the indemnifying party prompt notice thereof, together with any and all documentation received related to such claim or litigation; (ii) give the
indemnifying party full control over the defense and settlement of any claim or litigation for which indemnification is sought under this Section 14 (Indemnity), except to extent such claim involves a proceeding with any Governmental Authority
or action by or against any customer of Penson or Client; and (iii) reasonably cooperate with the indemnifying party, at the indemnifying party’s expense, to facilitate the defense or settlement of any such claim or litigation; provided,
however, that a failure to comply with the foregoing procedures shall relieve the indemnifying party from its obligation to indemnify solely to the extent that such failure results in prejudice to the indemnifying party. The party seeking
indemnification may participate in the defense or negotiations at its own expense to protect its interests, except to extent such claim involves a proceeding with any Governmental Authority or action by or against any customer of Penson or Client.
The indemnifying party shall not enter into any settlement agreement that impairs the rights or expands the obligations or admits wrongdoing of the party seeking indemnification without the prior consent of such party; provided, however, that the
indemnifying party may settle any claim or cause of action to the extent such claim seeks monetary damages if the indemnifying party agrees to pay such monetary damages and that the other party to this Agreement is not required to admit wrongdoing
or is not otherwise negatively impacted by the settlement of such claim or cause of action. 

  

	15.	LIMITATION OF LIABILITY. 

  

	 	A.	Errors and Omissions. Broadridge’s and Ridge’s sole and exclusive liability to Penson and Client and Penson’s and Client’s sole and exclusive
remedy, for any claims arising out of errors or omissions in the processing of data by Ridge pursuant to the Existing Technology Services, Transferred Technology Services and Additional Technology Services (each, as defined in the applicable
Schedule), notwithstanding the form of such claims (including, without limitation, breach, negligence, misrepresentation, or other contract or tort claim), shall be: (i) to re-perform the applicable Services and (ii) to provide Client with
any applicable Service Level credits, or termination rights, as applicable, to which Client is entitled under the Service Level Agreement. For the avoidance of doubt, this provision shall not apply to the actual conversion services (prior to Client
going live on the Services) to be agreed to by the parties in the Statement-of-Work relating to the conversion services. 

  

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	 	B.	[****]. The foregoing limitation on Broadridge’s and Ridge’s liability shall not apply to errors and omissions in connection with such support Services
resulting from fraud, gross negligence or willful misconduct or criminal act of Broadridge, Ridge or its contractors or agents. 

  

	 	C.	Damages Cap. In no event shall either Broadridge’s (for any breach by Broadridge or Ridge) or Penson’s (for any breach by Penson or Client) entire
aggregate liability under this Agreement arising from or relating to any and all claims and causes of actions arising under this Agreement exceed the applicable Damages Cap (defined below), regardless of the basis on which such party is entitled to
claim damages (including, without limitation, breach, negligence, misrepresentation, or other contract or tort claim); provided, however, that the limitation set forth in this Section 15.C (Damages Cap) shall not apply to:

  

	 	(i)	Errors and omissions covered by Section 15.A (Errors and Omissions) above (for which the limitation of liabilities are set forth in such Section 15.A above);

  

	 	(ii)	[****]; 

  

	 	(iii)	Indemnification obligations of Broadridge and Ridge in Section 14 (Indemnity) (for which there is no Damages Cap); 

 

	 	(iv)	The failure of Penson, Client, Broadridge or Ridge to make payments (including, without limitation, taxes) or apply credits due under this Agreement (for which there is
no Damages Cap); 

  

	 	(v)	Any claims relating to a party’s (including, without limitation, its contractors’ and agents’) fraud, gross negligence or willful misconduct (for which
there is no Damages Cap); 

  

	 	(vi)	[****]; or 

  

	 	(vii)	A party’s intentional repudiation of this Agreement including, without limitation, Broadridge’s or Ridge’s intentional repudiation of its obligation to
perform the Services or Transition Services (for which there is no Damages Cap). 

 As used herein,
“Damages Cap” means: 
 (a) for all claims and breaches, other than those referenced
in the following clause, the sum of all of the fees paid and payable by Client (excluding pass-through expenses, if any) under this Agreement in the aggregate during the [****] prior to the date of the first event, act or omission giving rise to or
the basis for the claim; provided, however, that until the end of the first Contract Year, the Damages Cap shall not be less than [****]; or 

(b) an amount equal to the product determined by multiplying (i) [****] by (ii) the amount of the Damages
Cap determined under the preceding clause (a), for breaches of Section 7.A (Use of the Services) or Section 17 (Non-Competition and Non-Solicitation) by either party hereto. 

FOR THE AVOIDANCE OF DOUBT, THE LIMITATIONS SET FORTH ABOVE ARE CUMULATIVE, WITH ALL APPLICABLE LIABILITIES BEING AGGREGATED TO DETERMINE
SATISFACTION OF THE APPLICABLE DAMAGES CAP. THE EXISTENCE OF MULTIPLE CLAIMS, WHETHER BROUGHT CONCURRENTLY OR SEPARATELY, SHALL NOT ENLARGE THE APPLICABLE DAMAGES CAP. 
  

	 	D.	Indirect Damages Waiver. EXCEPT AS SET FORTH BELOW IN THIS SECTION 15.D (INDIRECT DAMAGES WAIVER), IN NO EVENT WILL BROADRIDGE (FOR ANY BREACH BY BROADRIDGE OR
RIDGE) OR PENSON (FOR ANY BREACH BY PENSON OR CLIENT) HAVE ANY LIABILITY UNDER THIS AGREEMENT, REGARDLESS OF THE BASIS ON WHICH SUCH PARTY IS ENTITLED TO CLAIM DAMAGES (INCLUDING, WITHOUT LIMITATION, BREACH, NEGLIGENCE, MISREPRESENTATION, OR OTHER
CONTRACT OR TORT CLAIM), FOR ANY INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES (INCLUDING, WITHOUT LIMITATION, LOST PROFITS OR LOST SAVINGS THAT ARE NOT DIRECT DAMAGES, LOSS OF GOODWILL OR DAMAGE TO REPUTATION), EVEN IF FORESEEABLE OR EVEN IF THE
OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 

  

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 The foregoing disclaimer shall not be applicable to: 

 

	 	(i)	Any claims relating to a party’s (including, without limitation, its contractors’ and agents’) fraud, gross negligence or willful misconduct;

  

	 	(ii)	Any party’s breach of Section 10 (Confidentiality), Section 11 (Personal Information) or Section 12 (Data Security and Access), which breach results
in an unauthorized access or disclosure of, (a) with respect to Penson and Client, Ridge Information and (b) with respect to Broadridge and Ridge, Client Information, Personal Information or Client files; provided, however, that in no
event shall either Broadridge’s (for any breach by Broadridge or Ridge) or Penson’s (for any breach by Penson or Client) entire liability under this Section 15.D(ii) for all claims and causes of action arising under this Agreement
exceed any amount equal to the sum of all of the fees paid and payable by Client (excluding pass-through expenses, if any) under this Agreement in the aggregate during the [****] prior to the date of the first event, act or omission giving rise to
or the basis for the claim; provided, however, that until the end of the first Contract Year, the liability cap under this Section 15.D(ii) shall not be less than [****]; 

 

	 	(iii)	A party’s intentional repudiation of this Agreement including, without limitation, Broadridge or Ridge’s intentional repudiation of its obligation to perform
the Services or Transition Services; 

 provided, however, that in no event shall Broadridge or Penson have any
liability under this Agreement under any circumstances for lost profits or lost savings that are not direct damages, loss of goodwill or damage to reputation. 

Amounts paid by either party to a third party in connection with an indemnity under this Agreement shall be deemed to be the direct
damages of such party, without regard to the nature of the claim which gave rise to such obligation to indemnify or the characterization of such amounts in the applicable third party claim, action or proceeding (provided, however, that all such
liability for the indemnities are not subject to the Damages Cap). In addition, if a party is obligated to incur costs or expenses in fulfilling its obligations under Section 11.C (Security Breaches) or Section 12.E (Security Breaches)
above, such party cannot seek to avoid such obligation through a claim or assertion that the disclaimer set forth above in this Section 15.D (Indirect Damages Waiver) relieves such party of such obligation. 

 

	 	E.	Ridge Subcontractors and Third Party Vendors. Ridge shall notify Client of any proposed subcontracting of the Services, and obtain Client’s prior consent
(which consent shall not be unreasonably withheld) with respect to any such subcontracting only if such consent is required by Law. Ridge shall be liable for the acts and omissions of any of its Affiliates or subcontractors that perform any portion
of the Services hereunder to the same extent Ridge is liable for its own employees hereunder. For the avoidance of doubt, Ridge shall not be liable to Client for the acts or omissions of non-Affiliated third parties that are not subcontractors, such
as non-Affiliated vendors (e.g., data providers, data communication carriers and utilities and for the avoidance of doubt, subcontractors shall not be considered vendors as used in this sentence), that provide services or facilities to be used in
association with the Services or to or from which Ridge sends or receives Client Information in connection with providing the Services, and which are listed in a Schedule (or for which Ridge otherwise obtains Client’s prior consent, not to be
unreasonably withheld); provided, however, that Ridge shall use commercially reasonable efforts to enter into contractual agreements with all of its subcontractors and third party vendors in order to ensure compliance with the applicable
requirements relating to the use and disclosure of Information and Personal Information. 

  

	16.	LAWS AND GOVERNMENTAL REGULATIONS. 

  

	 	A.	 Client Laws. As used in this Agreement, “Client Laws” means (a) SARBOX (defined below) and other similar Laws that
govern the maintenance and assessment of a company’s internal financial auditing controls, in each case as applicable to Penson or Client, (b) Laws specifically promulgated for implementation by companies in the business of providing
correspondent clearing services to brokers, 

  

Broadridge/Penson Proprietary and Confidential 
  

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 MASTER SERVICES AGREEMENT 

 

	 	
dealers or other financial intermediaries, whether on a fully-disclosed or omnibus basis, including, without limitation, services subject to FINRA Rule 3230, NYSE Rule 382 or comparable rules or
laws of any other Governmental Authority, (c) Laws that pertain to the operation of the business of Penson or Client, (d) privacy and data protection Laws that are applicable to Penson or Client or Client’s receipt or use of the
Services or the performance of its obligations under this Agreement and (e) Laws that are specifically applicable to the receipt and use of the Services by Client. Penson and Client shall comply with all Client Laws in connection with
Client’s receipt and use of the Services and the performance of their obligations under this Agreement; provided, however, that nothing herein shall excuse or otherwise limit the responsibilities of Broadridge or Ridge pursuant to this
Agreement. As used herein, the term “SARBOX” means the Sarbanes-Oxley Act of 2002 and any rules and regulations promulgated thereunder (as enacted, promulgated and amended from time to time). 

 

	 	B.	Ridge Laws. As used in this Agreement, “Ridge Laws” means (a) Laws that pertain to the operation of Broadridge’s or
Ridge’s business by Broadridge or Ridge; (b) Laws that regulate Broadridge or Ridge in their capacity as a provider of the Services; or (c) privacy and data protection Laws applicable to Broadridge or Ridge or their performance and
delivery of the Services or the performance of their obligations under this Agreement. In connection with their performance and delivery of the Services and their performance of their obligations under this Agreement, Broadridge and Ridge shall
comply with all applicable Ridge Laws. If Broadridge or Ridge becomes aware of its non-compliance with any Ridge Law, to the extent such non-compliance impacts the Services or the Agreement, Broadridge and Ridge shall promptly notify Penson and
Client. Unless such non-compliance is caused by Penson or Client, Broadridge or Ridge shall promptly implement such changes as may be necessary to correct such non-compliance at Broadridge’s or Ridge’s sole cost and expense.

  

	 	C.	Compliance Directives. From time to time Penson or Client may request Ridge as to the manner in which Ridge should implement compliance with any Client Laws and
as to any changes in Ridge’s rules, policies, procedures or processes relating to such compliance that Penson or Client instructs Ridge to make (each, a “Compliance Directive”). Ridge is authorized to act and rely on,
and shall promptly implement, each Compliance Directive in the performance and delivery of the Services including, without limitation, required changes to the Software and Ridge Products, in accordance with the Change Control Procedures applicable
to Mandatory Changes. 

  

	 	D.	Changes in Laws. Each party shall identify and notify the other party of any change in any Ridge Law or Client Law, as applicable, that affect the delivery,
receipt or use of Services of which it may become aware. 

  

	 	E.	Financial Responsibility for Changes to the Services. To the extent that at least fifty percent (50%) of the Ridge clients in the applicable Territory
receiving the Services request that Ridge make a change to the Services as a result of a new or modified Law or a change in Law that affect Ridge’s clients or Penson’s clients, Ridge shall make such change to the Services to ensure
compliance with such new Law or such change in Law at no additional charge to Client. In the event that (a) Penson or Client requests that Ridge make such a change and (b) the Steering Committee does not agree that such change is required
for regulatory compliance purposes, then Ridge shall make such change, at Penson’s or Client’s cost and expense as determined pursuant to the Change Control Procedures set forth in Section IV (Change Control) of Exhibit C
(Governance Structure); provided, however, that in the event (i) the Steering Committee subsequently requests that Ridge make such change or (ii) at least fifty percent (50%) of the Ridge clients in the applicable Territory receiving
the Services request such change, in each case, within twelve (12) months after Penson’s or Client’s request for such change, Ridge shall credit Penson or Client such costs and expenses paid to Ridge by Penson or Client for such
change. 

  

	 	F.	Implementation of Changes in Laws. Notwithstanding anything to the contrary in this Agreement, 

 

	 	(i)	 if Ridge implements a change to the Services pursuant to Section 16.C (Compliance Directives) or Section 16.E (Financial Responsibility for
Changes to the Services) and Ridge fails to implement such change in accordance with the written instructions of Penson or Client or the Steering Committee (as applicable) for such change or implements such change in the production environment prior
to Penson’s, Client’s or the Steering Committee’s (as applicable) written acceptance of the implementation 

 
 Broadridge/Penson Proprietary and Confidential 

 

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 MASTER SERVICES AGREEMENT 

 

	 	
of the change, then in accordance with Section 14.A(iii) Ridge shall be liable for any fines or penalties assessed against Penson, Client or any of its Affiliates by a Governmental Authority
to the extent resulting from Ridge’s implementation of the change; 

  

	 	(ii)	if Ridge implements a change to the Services and Ridge implements such change in the production environment without Penson’s, Client’s or the Steering
Committee’s (as applicable) written acceptance of the implementation of the change, then in accordance with Section 14.A(iii) Ridge shall be liable for any fines or penalties assessed against Client or any of its Affiliates by a
Governmental Authority to the extent resulting from Ridge’s implementation of the change; or 

  

	 	(iii)	if Ridge establishes a new or modified rule relating to the use of the Services that is inconsistent with or violates any applicable Law, then in accordance with
Section 14.A(iii) Ridge shall be liable for any fines or penalties assessed against Penson, Client or any of their Affiliates by a Governmental Authority to the extent resulting from Ridge’s establishment of such new or modified rule.

  

	 	G.	Services in Violation of Laws. Subject to the provisions hereof, if providing any of the Services to Client hereunder is determined or adjudicated, by any court
or Governmental Authority having jurisdiction (by a binding final ruling or order), to constitute a violation of any material Laws or governmental regulations, Ridge shall use commercially reasonable efforts to modify the relevant Services in order
to make such Services compliant with the relevant Laws or regulations without material loss of functionality or performance. Where making such Services compliant with such Laws or regulations is not possible, Ridge or Client may, upon reasonable
notice to the other party, terminate the provision of such Services, and in any such case, Ridge agrees to provide a refund to Client of any fees paid in advance by Client for such Services, and the applicable Schedule shall be deemed terminated or
amended to eliminate such Services and the fees adjusted accordingly. 

 Client shall have the right to terminate
the applicable Schedule if Client’s primary regulators in the applicable Territory prohibit or deny approval, in a final written ruling or order, for Client to receive the Services from Ridge. Any such termination shall be on a “no
fault” basis and for greater certainty, Client will have no obligation to pay any termination charges, liquidated damages or other damages or sums set forth hereunder as a result of such termination. For the avoidance of doubt, Client shall be
responsible for any use it may make of the Services to assist it in complying with Client Laws, provided, however, that Broadridge and Ridge shall remain responsible for the performance of their obligations under this Agreement, including, without
limitation as provided in Section 16.F (Implementation of Changes in Laws). 
  

	17.	NON-COMPETITION AND NON-SOLICITATION. 

  

	 	A.	Non-Competition. 

  

	 	(i)	During the Term and for one (1) year following the expiration or termination thereof (including, without limitation, any Transition Period), unless terminated by
Broadridge for Penson’s or Client’s breach of this Agreement, neither Broadridge nor any of its Affiliates shall, directly or indirectly, own, manage, operate, join, control, finance or participate in the ownership, management, operation,
control or financing of, or be connected as an advisor, partner, agent, representative, consultant or otherwise with or use or permit its name, trade name, service name or service mark to be used in connection with, any Restricted Client Business
(defined below). 

 As used herein, the term “Restricted Client Business” means
correspondent clearing services including, without limitation, with respect to (a) correspondent clearing services subject to FINRA Rule 3230, NYSE Rule 382 or comparable rules of any other Governmental Authority or (b) any business or
enterprise involving or engaged in the business as a broker or dealer or future commissions merchant in providing securities, futures, commodities or foreign exchange transaction execution, clearance, settlement or financing (including, without
limitation, margin and portfolio margining) to brokers, dealers, other professional traders or financial intermediaries, or customers. 
  

Broadridge/Penson Proprietary and Confidential 
  

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 MASTER SERVICES AGREEMENT 

 

	 	(ii)	It is recognized by Broadridge that the Restricted Client Business as engaged in by Penson, Client and their Affiliates is and will continue to be international in
scope, and that geographical limitations on this non-competition covenant (and the non-solicitation covenant set forth in Section 17.B (No Solicitation) below) are therefore not appropriate. 

 

	 	(iii)	The restriction in Section 17.A(i), however, shall not be construed to prohibit Broadridge or any of its Affiliates from: 

 

	 	(a)	conducting or engaging in Model A Clearing services in the U.K., where Broadridge or any of its Affiliates provides, or will provide simultaneously therewith,
processing services to the same client or its affiliates in at least one (1) other country; 

  

	 	(b)	maintaining a broker-dealer for purposes other than to provide Restricted Client Business; and 

 

	 	(c)	owning not more than 5% of any class of securities of any corporation which is engaged in the Restricted Client Business having a class of securities registered
pursuant to the Securities Exchange Act of 1934 as amended from time to time (the “Exchange Act”); provided, however, that such ownership represents a passive investment and that neither Ridge nor any of its Affiliates nor
any group of persons including, without limitation, Ridge or any of its Affiliates in any way, either directly or indirectly, manages or exercises control of any such corporation, guarantees any of its financial obligations, otherwise takes any part
in its business other than exercising its rights as a shareholder, or seeks to do any of the foregoing. 

  

	 	(iv)	The parties acknowledge and agree that the agreements and covenants set forth in this Section 17.A (Non-Competition) are: (a) necessary to protect the
legitimate business interests of Penson, Client, Broadridge and Ridge, (b) reasonable as to time, geographic area and scope of activity and do not impose a greater restraint on the activities of either party than is reasonably necessary to
protect such legitimate business interests of Penson, Client, Broadridge and Ridge and (c) reasonable in light of the consideration and other value provided under the Asset Purchase Agreement and this Agreement. 

 

	 	(v)	The parties acknowledge that (a) the foregoing agreements and covenants are an essential element of this Agreement between the parties, (b) that the foregoing
agreements and covenants are a key part of the overall consideration in connection with this Agreement and (c) that in the absence of such limitations the terms and conditions set forth in this Agreement would be substantially different.

  

	 	(vi)	The parties hereby waive any and all right to, contest the validity of any agreement or covenant in Section 17.A(i) above, including, without limitation, the
breadth of its geographic or business coverage or the length of its term, without first procuring an unqualified opinion from a law firm with attorneys licensed to practice in the applicable geographic area stating that such agreement or covenant is
unenforceable in such geographic area. 

  

	 	(vii)	If, notwithstanding the foregoing, any of the above agreements and covenants in Section 17.A(i) (or any items or elements thereof) are held to be unreasonable,
invalid, or otherwise unenforceable, in whole or in part, Penson, Client, Broadridge and Ridge each agree that any court or authority so finding will have the authority to reform, redraft, blue pencil or otherwise modify any and all portions ruled
to be unreasonable, invalid or unenforceable, whether as to time, scope, geography or otherwise, so that the covenant or covenants, as so reformed, will be applicable and enforceable to the fullest extent allowed by Law. The agreements and covenants
contained in Section 17.A(i) and each provision thereof are severable and distinct agreements, covenants and provisions. The invalidity or unenforceability of any such agreement, covenant or provision as written shall not invalidate or render
unenforceable the remaining agreements, covenants or provisions hereof, and any such invalidity or unenforceability in any jurisdiction shall not invalidate or render unenforceable such agreement, covenant or provision in any other jurisdiction. The
existence of any claim or cause of action by a party against another (or any of its respective Affiliates) will not constitute a defense to the enforcement by a party of such agreements, covenants or provisions. 

 
 Broadridge/Penson Proprietary and Confidential 

 

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 MASTER SERVICES AGREEMENT 

 

	 	B.	No Solicitation. 

  

	 	(i)	During the Term, neither Broadridge nor any of its Affiliates shall, either directly or indirectly, (a) call on or solicit or entice, or attempt to solicit or
entice, any person, firm, corporation or other entity who or which at any time during the Term is a customer or client, or potential customer or client, of Penson or any of its Affiliates with respect to the provision of the Restricted Client
Business, (b) influence, or attempt to influence, any person, firm, corporation or other entity who or which at any time during the Term was or is a customer or client of Penson or any of its Affiliates to stop doing business with Penson or any
of its Affiliates in connection with the Restricted Client Business (except that Broadridge may take such actions with respect to clients or customers of Penson or any of its Affiliates who have initiated contact with Broadridge or one of its
Affiliates for business other than the Restricted Client Business) or (c) influence, or attempt to influence, any person, firm, corporation or other entity who or which at any time during the Term was or is a customer or client, or potential
customer or client, of Penson or any of its Affiliates to do business with a competing entity to provide the Restricted Client Business. The restriction in this Section 17.B(i) shall not be construed to prohibit Broadridge or any of its
Affiliates from continuing to call on solicit any person, firm, corporation or other entity who or which was the subject of active calls or solicitation by Broadridge or one of its Affiliates during the six (6) month period immediately prior to
the Effective Date. 

  

	 	(ii)	During the Term, neither Penson nor any of its Affiliates shall, either directly or indirectly, (a) call on or solicit or entice, or attempt to solicit or entice,
any person, firm, corporation or other entity who or which at any time during the Term is a customer or client, or potential customer or client, of Broadridge or any of its Affiliates with respect to the provision of transaction processing or
outsourcing business by Broadridge or its Affiliates, (b) influence, or attempt to influence, any person, firm, corporation or other entity who or which at any time during the Term was or is a customer or client of Broadridge or any of its
Affiliates to stop doing business with Broadridge in connection with the transaction procession or outsourcing business by Broadridge or its Affiliates or (c) influence, or attempt to influence, any person, firm, corporation or other entity who
or which at any time during the Term was or is a customer or client, or potential customer or client, of Broadridge or any of its Affiliates to do business with a competing entity to provide the transaction processing or outsourcing business by
Broadridge or its Affiliates. The restriction in this Section 17.B(ii) shall not be construed to prohibit Penson or any of its Affiliates from continuing to call on solicit any person, firm, corporation or other entity who or which was the
subject of active calls or solicitation by Penson or one of its Affiliates during the six (6) month period immediately prior to the Effective Date. 

  

	 	C.	Equitable Remedies. In the event of a breach or a threatened breach by either party of any of the provisions of Section 17.A (Non-Competition) or
Section 17.B (No Solicitation), each party acknowledges that the other party will suffer irreparable damage or injury not fully compensable by money damages, or the exact amount of which may be impossible to obtain, and, therefore, will not
have an adequate remedy available at law. Accordingly, the non-breaching party will be entitled to obtain such injunctive relief or other equitable remedy, without the necessity of posting bond therefor, from any court of competent jurisdiction as
may be necessary or appropriate to prevent or curtail any such breach, threatened or actual. The foregoing will be in addition to any other rights the non-breaching party may have at law or in equity, including, without limitation, the right to sue
for damages. 

  

	18.	TERMINATION. 

  

	 	A.	Ridge’s Material Breach. 

  

	 	(i)	Penson may terminate this Master Services Agreement or any Schedule, in whole or by service, upon notice to Broadridge if Broadridge or Ridge materially breaches this
Master Services Agreement or the Asset Purchase Agreement and fails to cure such breach (if such breach is capable of cure) within thirty (30) days following notice from Penson specifying the nature of such breach in reasonable detail. [****].
If a Schedule is terminated by service, the pricing under such Schedule shall be adjusted to account for such terminated service by an amount agreed to in good faith by Broadridge, Ridge, Penson and Client. 

 
 Broadridge/Penson Proprietary and Confidential 

 

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 MASTER SERVICES AGREEMENT 

 

	 	(ii)	Penson may terminate this Master Services Agreement or any Schedule, in whole or by service, upon notice to Broadridge if Ridge materially breaches such Schedule and
fails to cure such breach (if such breach is capable of cure) within thirty (30) days following notice from Penson specifying the nature of such breach in reasonable detail. Penson may also terminate this Master Services Agreement or a
Schedule, in whole or by service, upon notice to Broadridge if Ridge commits numerous or repeated breaches of its duties or obligations under such Schedule, even if individually cured, where the collective impact would constitute a material breach
of such Schedule, and Ridge either (a) fails to successfully implement corrective actions and give notice of the details of such corrective actions to Penson within thirty (30) days after notice of the collective breach from Penson or
(b) after implementing such corrective actions, Ridge continues to commit breaches of the type that were addressed by implementation of such corrective actions and the collective impact of such continued breaches would constitute a material
breach of such Schedule. If a Schedule is terminated by service, the pricing under such Schedule shall be adjusted to account for such terminated service by an amount agreed to in good faith by Broadridge, Ridge, Penson and Client.

  

	 	B.	Client’s Material Breach. Broadridge may terminate this Master Services Agreement or the applicable Schedule upon notice to Penson if Penson or Client
materially breaches its obligations under this Master Services Agreement or such Schedule with respect to Sections 3 (Charges), 7.A (Use of Services), 8.A (License Grant), 9 (Ownership and User of Ridge Products),
10 (Confidentiality) or 11 (Personal Information) and fails to cure such breach (if such breach is capable of cure) within thirty (30) days following notice from Broadridge specifying the nature of such breach in reasonable detail. If
Broadridge terminates this Master Services Agreement or a Schedule pursuant to this Section 18.B (Client’s Material Breach), Broadridge may, in its sole discretion, require Penson or Client immediately to pay all undisputed amounts then
due under this Agreement or the applicable Schedule in respect of periods to the date of termination. 

  

	 	C.	Insolvency. This Master Services Agreement or the applicable Schedule shall terminate immediately upon the occurrence of any of the following events:

  

	 	(i)	(a) a party applies for or consents to the appointment of a receiver, trustee or liquidator for substantially all of its assets, or such a receiver, trustee or
liquidator is appointed for the other party; (b) a party has filed against it an involuntary petition for bankruptcy that has not been dismissed within sixty (60) days thereof, or files a voluntary petition for bankruptcy or a petition or
answer seeking reorganization; (c) a party admits in writing its inability to pay its debts as they mature; or (d) a party makes an assignment for the benefit of creditors; or 

 

	 	(ii)	a party becomes subject to a consent decree, settlement agreement, enforcement decision, stipulation, letter of acceptance, waiver and consent, or other order from a
governmental regulatory body, self-regulatory organization, exchange, or other financial services regulatory or self-regulatory authority that makes it impossible or impractical for Broadridge or Ridge to perform or Penson or Client to receive the
Services. 

  

	 	D.	Force Majeure Event. Penson may terminate a Schedule upon notice to Broadridge in the event a Force Majeure Event (as defined below) continues to prevent the
performance of the Services under such Schedule for more than a period of thirty (30) days. 

  

	 	E.	Termination Relating to [****]. If at any time the total aggregate liability of Broadridge (for any breach by Broadridge or Ridge) for claims that are due
and payable under this Agreement, taken as a whole, exceeds [****], then Penson may terminate this Master Services Agreement or any Schedule, in whole or by service, by giving Broadridge notice of termination. If a Schedule is terminated by service,
the pricing under such Schedule shall be adjusted to account for such terminated service by an amount agreed to in good faith by Broadridge, Ridge, Client and Penson. 

 
 Broadridge/Penson Proprietary and Confidential 

 

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 MASTER SERVICES AGREEMENT 

 

	 	F.	Termination Relating to [****]. If Ridge fails for any reason to provide any Service [****] of this Agreement and does not, within [****] after receipt of
a notice from Penson or Client with respect to such failure, cure such failure, then Penson may, upon notice to Broadridge, terminate this Master Services Agreement or any Schedule, in whole or by service, effective as of the termination date
specified in the notice. If a Schedule is terminated by service, the pricing under such Schedule shall be adjusted to account for such terminated service by an amount agreed to in good faith by Broadridge, Ridge, Penson and Client.

  

	 	G.	Termination Relating to Service Levels. Notwithstanding anything to the contrary, the Service Level Agreement shall specify mutually agreed-to termination rights
with respect to Service Level failures. 

  

	 	H.	Additional Termination Rights. Penson’s termination rights described herein are in addition to, and shall not limit, the termination rights of the
applicable Client Local Affiliate in the applicable Schedule. 

  

	 	I.	Timely Exercise of Termination Rights. Subject to other provisions of this Agreement, if a party is entitled to terminate this Master Services Agreement or a
Schedule pursuant to this Section 18 (Termination), such party shall exercise its right to terminate this Master Services Agreement or the Schedule within [****] after the executive officers (as defined in Section 16 of the Exchange Act)
of such party have actual knowledge of such breach or such party shall be deemed to have waived its right to terminate this Master Services Agreement or the Schedule; provided, however, that upon notice from the party that is seeking to terminate
this Master Services Agreement or the Schedule to the other party, such [****] period may be stayed for up to [****] (or such longer period as may be agreed by the parties) during which time the parties shall use good faith efforts to resolve any
issue giving rise to the alleged termination right. 

  

	 	J.	Termination Fees. Except as set forth in Sections IV.B (Client Local Affiliate’s Termination) of any Schedule, no termination fees or termination charges of
any type shall be payable by Penson or Client to Broadridge or Ridge in connection with the expiration or any termination of this Master Services Agreement or Schedule in whole or by service. 

 

	 	K.	Survival. Upon expiration or termination of this Master Services Agreement, the following sections shall survive: 1.A (ii) (Services Schedules), 1.B
(Certain Defined Terms)), 2.B (Transition Services), 3 (Charges) (with respect to periods to and including the effective date of expiration or termination), 5 (Communications Lines and Equipment), 9.A (Ownership),
9.C (Return or Destroy), 10 (Confidentiality), 11 (Personal Information), 12 (Data Security and Access), 14 (Indemnity), 15 (Limitation of Liability), 16 (Laws and Governmental Regulation), 17.A (Non-Competition), the last
sentence of Section 18.B (Client’s Material Breach), 18.K (Survival), 18J (Termination Fees), 19 (General) and any additional provisions of this Master Services Agreement and a Schedule that by their nature continue to survive
any expiration or termination of this Master Services Agreement or such Schedule. 

  

	 	L.	Failure to Close Asset Purchase Agreement. The Agreement shall terminate automatically without payment of any termination fees or termination charges by either
party pursuant to this Agreement in the event the Asset Purchase Agreement is terminated in accordance with its terms. 

  

	19.	GENERAL. 

  

	 	A.	No Inducements. Each party acknowledges that it has not been induced to enter into this Master Services Agreement or any of the Schedules by any representation
or warranty not set forth in this Master Services Agreement or the Schedules. 

  

	 	B.	Assignment. Neither this Master Services Agreement or any Schedule, nor any of the rights, duties or obligations hereunder, may be delegated or assigned by a
party hereto or thereto without the prior consent of the other party hereto except to an Affiliate or as part of any corporate reorganization, including, without limitation, any merger, consolidation acquisition or amalgamation in which all or
substantially all of its assets or equity ownership are transferred or as part of any sale of all or substantially all of the capital stock or assets. 

 
 Broadridge/Penson Proprietary and Confidential 

 

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 This Master Services Agreement and each Schedule shall be binding upon and shall inure
to the benefit of the parties hereto and thereto and their respective successors and permitted assigns. 
  

	 	C.	Severability. If any provision of this Agreement (or any portion hereof) is held to be invalid, illegal or unenforceable, then the validity, legality or
enforceability of the remainder of this Agreement shall not in any way be affected or impaired thereby. 

  

	 	D.	Notices. All notices, consents, approvals, agreements, authorizations, acceptances, rejections, requests and waivers under this Agreement must be in writing and
shall be forwarded by registered or certified mail or nationally recognized overnight courier and sent to Broadridge, Ridge, Penson and Client at the addresses set forth on the first page of this Master Services Agreement or to any other address
designated in writing hereafter. In the case of notices to Penson or Client, Attention: President, with a copy to Penson Financial Services, Inc, 1700 Pacific Ave., Ste. 1400 Dallas, TX 75201, Attention: General Counsel. Any notice to Broadridge or
Ridge shall be sent Attention: President, with a copy to Ridge Clearing & Outsourcing, Inc., 1981 Marcus Avenue, Lake Success, New York 11042, Attention: General Counsel. 

 

	 	E.	Headings. The headings in this Master Services Agreement and the Schedules are intended for convenience of reference and shall not affect their interpretation.

  

	 	F.	Counterparts. This Master Services Agreement and any Schedule may be executed in counterparts, each of which shall be deemed an original agreement, but all of
which together shall constitute one and the same instrument. This Master Services Agreement and any Schedule may be executed by facsimile signature. 

  

	 	G.	Equitable Relief. In the event of a breach or a threatened breach by either party or any of its Affiliates of any of the provisions of Section 7.A (Use of
the Service), Sections 9 (Ownership and Use of Ridge Products), 10 (Confidentiality), 11 (Personal Information) or 17 (Non-Competition and Non-Solicitation), each party acknowledges that the other party may suffer irreparable damage
or injury not fully compensable by money damages, or the exact amount of which may be impossible to obtain, and, therefore, may not have an adequate remedy available at law. Accordingly, the non-breaching party will be entitled to seek to obtain
such injunctive relief or other equitable remedy, without the necessity of posting bond therefor, from any court of competent jurisdiction as may be necessary or appropriate to prevent or curtail any such breach, threatened or actual. The foregoing
right will apply without having to follow any dispute resolution process or procedure set forth elsewhere in this Agreement. The foregoing will be in addition to any other rights the non-breaching party may have under this Agreement, at Law or in
equity, including, without limitation, the right to sue for damages or terminate this Agreement. 

  

	 	H.	Governing Law. This Master Services Agreement and the Schedules shall be governed by, and construed and enforced in accordance with, the Laws of New York
applicable to agreements wholly to be executed and to be performed therein. 

  

	 	I.	Independent Contractor. Broadridge and Ridge are independent contractors and their personnel are not Penson’s or Client’s agents or employees for
federal, provincial, or local tax purposes or any other purposes. Broadridge and Ridge, and not Penson or Client, are solely responsible for the compensation of personnel assigned to perform Services hereunder, and payment of worker’s
compensation, disability, and other similar benefits, unemployment and other similar insurance, for withholding income and payroll taxes and for verifying the work eligibility of each person performing services hereunder. 

 

	 	J.	Relationship of Parties. Nothing contained in this Master Services Agreement or any Schedule, nor shall any activity hereunder, create a general or limited
partnership, association, joint venture or agency relationship between Penson and Broadridge or the applicable Client Local Affiliate and Ridge Local Affiliate. 

 

	 	K.	Cumulative Remedies; Waiver. The enumeration herein of specific remedies shall not be exclusive of any other remedies. Subject to Section 18.I (Timely
Exercise of Termination Rights), the waiver by either party of a breach of or a default under any provision of this Agreement shall not be effective unless in writing and shall not be construed as a waiver of any subsequent breach of or default
under the same or any other provision of this Agreement. 

  

Broadridge/Penson Proprietary and Confidential 
  

 25 

 MASTER SERVICES AGREEMENT 

 

	 	L.	Third-Party Beneficiaries. This Master Services Agreement is by and between Broadridge and Penson only (and the Schedules are by and between the applicable Ridge
Local Affiliate and the applicable Client Local Affiliate only) and, except as otherwise provided in Sections 14 (Indemnity) and 15 (Limitation of Liability), above, is not intended to confer and shall not confer any benefits or rights
upon any other persons not expressly made parties hereto, including, without limitation, customers of Penson or service providers of Broadridge. 

  

	 	M.	Force Majeure. In no event shall either party be liable or deemed to be in default for any delay or failure to perform under this Agreement resulting directly or
indirectly from any cause beyond its reasonable control, including, without limitation, acts of God, acts of the public enemy, acts of the governments, fires, floods, epidemics, quarantine restrictions, acts of terrorism, riots and freight embargoes
(“Force Majeure Event”); provided that (1) the non-performing party (and the suppliers and contractors of such party) are without material fault in causing the default or delay and (2) the default or delay cannot be
reasonably circumvented by the non-performing party through the use of commercially reasonable alternative sources, workarounds, plans or other means (including, without limitation, with respect to Ridge, by Ridge meeting its obligations to provide
disaster recovery and business continuity services, except to the extent that provision of such services is itself prevented by a Force Majeure Event). Notwithstanding the foregoing, in every case the party claiming excusable delay shall use its
commercially reasonable efforts to prevent and mitigate the effect and length of such Force Majeure Event. Performance times under this Agreement shall be considered extended for a period of time equivalent to the time lost because of any delay
which is excusable under this Section 19.M (Force Majeure). If Ridge fails to provide the Services due to a Force Majeure Event for more than five (5) days, the fees under this Agreement shall be adjusted in a manner such that Penson and
Client are not responsible for the payment of any fees (or other charges) for Services that Ridge fails to provide. 

  

	 	N.	Disaster Recovery and Business Continuity. Ridge shall maintain the disaster recovery and business continuity services as set forth in Attachment E
(Disaster Recovery; Business Continuity) to the applicable Schedule. Ridge shall implement its disaster recovery and business continuity plans as required, including, without limitation, in the event of a Force Majeure Event (except to the extent
that provision of such services is itself prevented by a Force Majeure Event, in accordance therewith). 

  

	 	O.	Step In Rights. If Ridge fails to provide any Services and such failure would give rise to a right for Penson to terminate this Master Services Agreement or a
Schedule pursuant to Section 18.A (Ridge’s Material Breach), Penson or Client may, subject to following, take control of the part of the Services that is impacted and, in doing so, may take such other action as is reasonably necessary to
restore the Services. In no event may Penson or Client, or its agents, take control of any of the Services pursuant to this Section 19.O (Step In Rights) to the extent doing so would cause Broadridge or Ridge to be in breach of any agreement it
has with any third party. If Penson or Client’s election to take control of the part of the Services that is impacted will require Penson or Client to enter Ridge locations, the provisions of Exhibit D (Step In Rights) shall apply. Ridge
shall cooperate fully with Penson or Client and its agents and provide all reasonable assistance at no charge to Penson or Client to restore such Services as soon as possible, including, without limitation, giving Penson or Client and its agents all
requested access to Ridge’s premises, equipment, software (including, without limitation, third-party software) and materials. Penson or Client shall disrupt Ridge’s operations or compromise the confidentiality of any other clients of
Ridge. 

  

	 	P.	Integration; No Modification. This Master Services Agreement, the Schedules and the agreements, instruments and documents referred to in this Master Services
Agreement and the Schedules contain the entire agreement of the parties with respect to its subject matter and supersede all existing agreements and all other oral, written or other communications between them concerning their subject matter. This
Master Services Agreement and the Schedules shall not be modified in any way except by a writing signed by both parties. 

  

Broadridge/Penson Proprietary and Confidential 
  

 26 

 MASTER SERVICES AGREEMENT 

 

	 	Q.	Use of Name; Press. Each party agrees that neither it nor any of its Affiliates will display or use any of the other party’s or such party’s
Affiliates’ trade-marks, trade names, logos or any other intellectual property or issue any press release or other public statement or notice identifying the other party or its Affiliates or any Customers as customers or otherwise relating to
this Agreement or the relationship between Broadridge and Ridge and Penson and Client and/or their Affiliates without the prior consent of the other party, which consent shall not be unreasonably withheld. In the event that a party is required to
disclose this Agreement or its existence by Law or to one of its regulators (e.g., publicly filing this Agreement with the United States Securities and Exchange Commission) the parties shall inform each other in writing of such requirement and
cooperate in good faith in order for this Agreement to be redacted and afforded as much confidential treatment as is feasible. Any consent of by either party required by this Section 19.P (Integration; No Modification) shall be obtained from an
officer holding a title of Executive Vice President or higher. 

  

	 	R.	Claims. Any claims by Broadridge or a Ridge Local Affiliate under this Master Services Agreement or a Schedule shall be brought by Broadridge and Broadridge
shall enforce the applicable provisions of this Master Services Agreement or a Schedule to the same extent as a Ridge Local Affiliate as if such Ridge Local Affiliate was a party to this Master Services Agreement. As such, in no event shall a Ridge
Local Affiliate be entitled to bring any claim against Penson, or the applicable Client Local Affiliate, under this Master Services Agreement or a Schedule. Notwithstanding the foregoing provisions of this paragraph, a Ridge Local Affiliate may
bring a claim against the Client Local Affiliate that is party to such Schedule in the applicable Territory only to the extent such claim is required by Law to be brought in such Territory. Broadridge shall in such instance remain responsible for
and shall oversee such claim and such claim shall be subject to the limitations on liability in this Master Services Agreement. 

Any claims by Penson or a Client Local Affiliate under this Master Services Agreement or a Schedule shall be brought by Penson and Penson
shall enforce the applicable provisions of this Master Services Agreement or a Schedule to the same extent as a Client Local Affiliate as if such Client Local Affiliate was a party to this Master Services Agreement. As such, in no event shall a
Client Local Affiliate be entitled to bring any claim against Broadridge, or the applicable Ridge Local Affiliate, under this Master Services Agreement or a Schedule. Notwithstanding the foregoing provisions of this paragraph, a Client Local
Affiliate may bring a claim against the Ridge Local Affiliate that is party to such Schedule in the applicable Territory only to the extent such claim is required by Law to be brought in such Territory. Penson shall in such instance remain
responsible for and shall oversee such claim and such claim shall be subject to the limitations on liability in this Master Services Agreement. 

For clarity, Broadridge and Penson shall be entitled to the benefit of all rights, defenses, counterclaims and other protections to which
the Ridge Local Affiliate or Client Local Affiliate, as applicable, may be entitled with respect to any such cause of action under this Master Services Agreement or a Schedule. 

 

	 	S.	 Audit. Broadridge and Ridge shall maintain such books and records as are (a) necessary to demonstrate Broadridge’s and Ridge’s
compliance with its obligations under this Agreement, (b) necessary to verify Service volumes and fees and (c) necessary to comply with all applicable Ridge Laws and (d) necessary to document any Compliance Directives implemented
pursuant to the provisions of Section 16.C (Compliance Directives) above. Broadridge and Ridge shall provide to Penson, Client and their auditors access at all reasonable times and after reasonable notice (not to exceed thirty (30) days
unless a shorter period is required by a Governmental Authority) to any Ridge service location, to Ridge personnel providing the Services, and to data and records relating to the Services and Broadridge’s or Ridge’s performance under this
Agreement, for the purposes of performing audits and inspections of (i) Broadridge’s or Ridge’s compliance with the provisions of this Agreement, including, without limitation, the fees charged to Client and (ii) Penson, Client
and their businesses to verify the integrity of Client Information and to examine the Software and Ridge Products and systems that process, store, support and transmit that Information. Additionally, during the Term, Broadridge and Ridge shall
obtain and have performed and provide Penson’s and Client’s internal and external auditors and regulators with attested locally applicable audit reports (e.g., Model A / Model B Assurance Report on Internal Controls (AAF), Canadian
Institute of Chartered Accountants Section 5970 and SAS-70 Type II audit reports) (the “Audit Reports”) on an annual basis each for a period to end on
September 30th of each calendar year and delivered no
later than November 15th of each calendar year.
Broadridge and Ridge shall additionally provide Penson’s and 

  

Broadridge/Penson Proprietary and Confidential 
  

 27 

 MASTER SERVICES AGREEMENT 

 

	 	
Client’s internal and external auditors, at Penson’s and Client’s request with any reasonable additional information and assistance as may be reasonably requested by Penson and
Client (including, without limitation, with requests, reports and information relating to compliance with SARBOX or equivalent regulatory requirements). 

  

	 	T.	Insurance. Ridge shall, throughout the Term and the Transition Period, directly or through the insurance programs of Broadridge, maintain in full force and
effect from a third party that is rated “A-” or better in Best’s Insurance Guide at a minimum the following insurance coverage for its operations worldwide: 

 

	 	(i)	A policy of workers’ compensation insurance (as required by the applicable Law) on its employees. Such policy shall provide statutory limits and contain
employer’s liability coverage in an amount not less than U.S. $1,000,000. 

  

	 	(ii)	Commercial general liability insuring against bodily injury, property damage, contractors’ completed operations and contractual liability with a combined single
limit of not less than U.S. $1,000,000 per claim. 

  

	 	(iii)	Professional liability and errors and omissions insurance in an amount not less than U.S. $25,000,000 per claim. 

 

	 	(iv)	Comprehensive crime insurance, including, without limitation, employee dishonesty and computer fraud, with coverage limits of at least U.S. $10,000,000 in the annual
aggregate. The policy shall provide coverage for fraud or dishonesty by Ridge personnel whether acting alone or in collusion with others, and whether acting from Ridge service locations or remote locations. 

 

	 	(v)	Umbrella/Excess liability coverage of not less than U.S. $25,000,000 over the coverages shown above. 

Penson and Client shall be named as additional insureds under the policies described in Section 19.T(ii) under which the
aforesaid insurance is provided. Insurance carried on a claims made basis shall be maintained for two (2) years after the expiration or termination of the Term. For the avoidance of doubt, any policy amounts or limitations shall not in any
event be construed as limitations on Ridge’s liability under this Agreement, nor shall they be construed as expanding Broadridge’s or Ridge’s liability under this Agreement. Ridge shall furnish Penson and Client with certificates of
insurance evidencing the above coverages and providing for at least thirty (30) days prior notice to Penson and Client of cancellation or non-renewal; provided, however, that Ridge shall not be obligated to provide such notice if, concurrently
with such cancellation or non-renewal, Ridge provides self insurance as described below or obtains coverage from another insurer meeting the requirements described above. Notwithstanding the foregoing, so long as Ridge maintains a credit rating that
is not significantly worse than its credit rating as of the Effective Date, Ridge reserves the right to self insure coverage, in whole or in part, in the amounts and categories designated above, in lieu of Ridge’s obligations to maintain
insurance as set forth above, at any time. 

*                    *  
                  *                    * 

 
 Broadridge/Penson Proprietary and Confidential 

 

 28 

 MASTER SERVICES AGREEMENT 

 

			
	 BROADRIDGE FINANCIAL SOLUTIONS, INC.
  

Approved by: /s/ John Hogan

(signature –Authorized Officer)
  

Name: John Hogan
 (type or
print)
  
 Title: President

(type or print)
  

Dated as of: November 2, 2009
	  	 PENSON WORLDWIDE, INC.
  

Approved by: /s/ Daniel P. Son

(signature –Authorized Officer)
  

Name: Daniel P. Son
 (type or
print)
  
 Title: President

(type or print)
  

Dated as of: November 2, 2009

THIS AGREEMENT SHALL BECOME EFFECTIVE UPON BEING SIGNED BY AN AUTHORIZED OFFICER OF BOTH BROADRIDGE AND PENSON. 

 
 Broadridge/Penson Proprietary and Confidential 

 

 29 

 MASTER SERVICES AGREEMENT 

 

 Exhibit A 

Intentionally left blank. 
  

Broadridge/Penson Proprietary and Confidential 
  

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 MASTER SERVICES AGREEMENT 

 

 Exhibit B 

Ridge Data Security Measures 

Broadridge and Ridge will carry out the following procedures to protect Client Information: 

 

	1.	Maintain a Corporate Security Policy reviewed regularly and approved by Broadridge Executive Management and Ridge Executive Management. 

 

	2.	Protect against threats or hazards to confidentiality, availability, and integrity of data and systems through the use of static and or dynamic vulnerability assessment
tools. 

  

	3.	Employ public or financial industry standards of encryption, when communicating Client Information over untrusted networks, or when transporting confidential
information on mobile devices, USB media, and backup media. 

  

	4.	Prohibit unauthorized physical access to systems as well as employ facilities protection measures to deter, prevent and track unauthorized access.

  

	5.	Develop operational processes to ensure segregation of duties and maintain access controls to critical resources. 

 

	6.	Develop internal processes to limit and track all administrative functions. 

 

	7.	Develop documented procedures for system configuration to eliminate potential for unauthorized access. 

 

	8.	Employ firewall security and prohibit system administrative functions through remote internet access to the firewall. 

 

	9.	Employ a documented process and application development standards based upon reasonable security development practices. 

 

	10.	Perform backups of system, application, and data with reasonable procedures and frequency. Maintain backup information in secure off-site storage.

  

	11.	Employ industry reasonable best practices procedures to ensure personnel security and ensure personnel understanding of security processes and procedures.

  

	12.	Develop documented procedures for the retention and destruction of computer media and documents in electronic or paper form. 

 

	13.	Perform background checks on all of its new hires who are involved in performing the Services under this Agreement in accordance with Broadridge’s and Ridge’s
policies. 

  

	14.	Implement and maintain an information security program with a dedicated program manager. 

 

	15.	The program shall have the stated objective of continuously improving and monitoring performance of current and future security initiatives. 

 

	16.	Comply with legislative and regulatory requirements based on the jurisdiction of the information. 

 

	17.	Monitor and log all access to data center facilities. 

  

	18.	Implement and maintain adequate system logging to monitor and control changes to the production environment. 

 

	19.	Implement and maintain adequate application logging to monitor and control all changes to the production data and operational environment. 

 

	20.	Implement data destruction procedures to eliminate the risk of data compromise on decommissioned systems and media. (similar to 12 – but it sounds like they are
aiming for e-discovery). 

  

	21.	Implement and maintain a training program for developers, administrators, and IT staff which covers topics specific to their duties and expertise (secure development,
server hardening, etc.). 

  
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 Exhibit C 

Governance Structure 
  

	I.	INTRODUCTION 

 This Exhibit provides the
Governance Structure, which details: (i) those roles and responsibilities of both parties that are required to maintain an effective working relationship and (ii) reporting mechanisms to be established and implemented by the parties to
enable Penson and Client to review and evaluate the performance of the Services by Ridge as part of Penson’s and Client’s ongoing duties to supervise and control their business activities as a clearing broker and to conduct continuing due
diligence with respect to Ridge’s ability to provide the Services. 
 The Governance Structure is intended to: 

 

	 ̈	Set forth the procedure for reporting by Ridge, and the related monitoring of the performance of the Services. 

 

	 ̈	Maintain current knowledge of business direction and strategy. 

  

	 ̈	Maintain control of all Changes, and changes that are made to business processes or any of the Services and manage associated financial, technical and operational
risks. 

  

	 ̈	Maintain disciplined management regarding cost, quality and each party’s compliance with its contractual commitments and the Laws and Rules.

  

	 ̈	Provide general oversight and consolidated performance reporting. 

  

	 ̈	Provide a clear route for program reporting; issue escalation and resolution and risk management. 

 

	II.	GOVERNANCE BODIES AND RESPONSIBILITIES 

Governance Structure 
 The following joint
governance bodies (“Governance Bodies”) will be established no later than ninety (90) days after the Effective Date: 

 ̈ Executive Governance Committee 

 ̈ Business Governance Committees 

 

	2.1.1	Meetings: The parties agree that meetings within and among the various Governance Bodies shall be part of the normal operations and are necessary (i) to provide
the most effective level for the performance of duties under the Schedule and (ii) as part of Penson’s and Client’s ongoing duties to supervise and control its business activities as a clearing broker and to conduct continuing due
diligence with respect to Ridge’s ability to provide the Services. Meetings of the various Governance Bodies may be held either in person or telephonically. As a general rule, meetings shall be held in person, with telephone meetings being the
exception and only as mutually agreed to by the parties. The venue for meetings shall take into account both parties’ mutual interest in minimizing costs, and each party shall be responsible for its own costs and expenses with regard to
attendance at meetings. The frequency of meetings for each Governance Body is set forth below. 

  

	2.1.2	Members: The members of each Governance Body are set forth below. If a party’s representative in a Governance Body ceases to be a member of such Governance Body,
that party shall, within thirty (30) days, notify the other party of the replacement who shall be an individual of equivalent standing and expertise. The other party’s consent to such proposal may not unreasonably be withheld or delayed.

  
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 Executive Governance Committee 

The Executive Governance Committee (“EGC”) shall not be involved in day-to-day management of this Master Services Agreement or a
Schedule, but shall retain overall accountability for this Agreement in addition to the business relationship. 
  

	2.2.1	Key Responsibilities: The following key responsibilities shall be subject to and in accordance with the terms and conditions of this Agreement:

  

	 ̈	To monitor and direct the strategic relationship between Penson and Client and Broadridge and Ridge. 

 

	 ̈	To provide an “interface” to the executive teams of the parties by providing regular feedback on progress and achievements to executive meetings.

  

	 ̈	To review long term plans, business trends and directions. 

  

	 ̈	To oversee compliance with terms and conditions of this Agreement and monitor that regulatory developments are addressed. 

 

	 ̈	To consult on specified material industrial or public relations matters in connection with the Services. 

 

	 ̈	To review overall performance of the Services including, without limitation, financial performance investments and the effectiveness of gain/risk share arrangements.

  

	 ̈	To resolve issues and/or disagreements escalated by the Business Governance Committees. 

 

	 ̈	To examine and authorize Changes. 

  

	 ̈	To examine and authorize proposals for amendments to the Schedules. 

  

	 ̈	To review new policies or changes to existing policies. 

  

	2.2.2	Specific Functions 

  

	 ̈	Review of select reports that are reflective of the performance of Ridge in fulfilling the agreed upon Service Levels, in maintaining accurate books and records, and
adherence to various polices, procedures and regulations. 

  

	 ̈	Review of the results of select, completed SRO examinations and audit reports of Broadridge and Ridge and Penson and Client business units. 

 

	 ̈	Review of the feedback provided by key business stakeholders within Penson and Client and Penson’s and Client’s introducing brokers. 

 

	 ̈	The EGC will also address: 

  

	 	•	 	 The Service Levels being provided by Ridge 

  

	 	•	 	 Broadridge’s and Ridge’s and Penson’s and Client’s adherence to existing polices, procedures and the Laws and Rules

  

	 	•	 	 The resolution of any unresolved disputes and controversies between the parties 

 

	 	•	 	 The results of all audits conducted by Penson and Client as well as all SRO examinations 

 

	 	•	 	 Broadridge’s, Ridge’s and Penson’s and Client’s readiness in preparing for new regulations and/or industry mandates

  

	 	•	 	 Any changes in the strategic direction of Broadridge or Ridge 

 
 Broadridge/Penson Proprietary and Confidential 

 

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 MASTER SERVICES AGREEMENT 

 

	2.2.3	Meetings: Meetings shall take place quarterly, until otherwise agreed by the parties. Each meeting of the EGC shall be attended by at least two members from each of
Broadridge and Ridge and Penson and Client. 

  

	2.2.4	Unresolved Disputes: In the event that the EGC cannot arrive at a mutually agreeable solution to any dispute or disagreement that is escalated to it, the dispute or
disagreement shall be submitted to non-binding mediation prior to and as a condition precedent to the commencement of litigation under the Schedule. Said mediation shall be conducted by and in accordance with the mediation procedures of FINRA. The
costs of the mediation shall be borne equally by the parties. All statements of any nature made in connection with this mediation shall be privileged and shall be inadmissible in any subsequent arbitral proceeding involving or relating to the claims
at issue in the mediation. 

  

	2.2.5	Members of the EGC: 

 The members
of the EGC shall include an equal number of executive officers from both parties. 
 Business Governance Committees 

 

	2.3.1	Structure: 

  

	 ̈	The parties to each Schedule shall establish a Business Governance Committee. 

 

	2.3.2	Purpose: 

  

	 ̈	Provide operational leadership for the Services, including, without limitation, the delivery of the Services and initial strategic initiatives.

  

	2.3.3	Key Responsibilities: The following key responsibilities shall be subject to and in accordance with the terms and conditions of the applicable Schedule:

  

	 ̈	Regularly establish audit and review responsibilities of Broadridge and Ridge, in accordance with the applicable Schedule. 

 

	 ̈	Draft and update template Certification Reports, and Corrective Action Certifications. 

 

	 ̈	Approve Services plans and guide overall activities. 

  

	 ̈	Review and approve business and technical proposals that impact the business case for the Services. 

 

	 ̈	Review select reports to monitor performance of the Services, including, without limitation, adherence to Service Level Agreements, the agreed-upon code of conduct and
to all laws. 

  

	 ̈	Review dependencies between Service areas. 

  

	 ̈	Assess operational and financial risk. 

  

	 ̈	Identify certain material current or future events that may affect Services. 

 

	 ̈	Resolve conflicts relating to Services where these are escalated by management of the parties. 

 

	 ̈	Discuss and implement Changes, projects or new services that should be agreed at a level above the day-to-day management team; part of this role shall be to coordinate
the scope of “Change” in the context of its impact on units in the field and on central functions. 

  

	 ̈	Prepare and implement any necessary amendments to the applicable Schedule within the authority of the team (which shall not include any authority to agree to any new
Services). 

  
 Broadridge/Penson Proprietary and
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 MASTER SERVICES AGREEMENT 

 

	 ̈	Monitor compliance with the Laws and Rules and address routine compliance issues. 

 

	2.3.4	Members of the Business Governance Committee: 

The members of the Business Governance Committee (“BGC”) shall include an equal number of senior officers from
both parties to the applicable Schedule. 
  

	2.3.5	Meeting 

 The BGC meetings shall
be held monthly or as either party to the applicable Schedule may reasonably request. Relevant Penson and Client representatives and Broadridge and Ridge representatives shall also participate and provide input as required. 

 

	III.	REPORTS 

 To facilitate Penson’s and
Client’s ongoing duties to supervise and control its business activities as a clearing broker and to conduct continuing due diligence with respect to Ridge’s ability to provide the Services, Broadridge and Ridge shall provide or cause to
be provided to Penson and Client copies of mutually agreed-upon reports. All reports are run daily, except where noted. 
 The parties agree to
update the list of reports from time to time as the parties deem necessary to effect the purposes described above, in each case as mutually agreed by the parties in writing. 

 

	IV.	CHANGE CONTROL 

 Changes 

The parties recognize that during the Term there may be changes to the Services (as agreed upon by Ridge and Client) or the terms and conditions of this
Agreement (as agreed upon by Broadridge and Penson) either on a temporary or permanent basis (each, a “Change”). Any such Changes shall be addressed and processed through the “Change Control Procedure”
set forth below. Except as set forth in this Section IV regarding Mandatory Changes or as otherwise expressly agreed between the parties in writing, until any Change is agreed between Ridge and Client or Broadridge and Penson, as applicable, in
accordance with the Change Control Procedure, Ridge shall continue to perform the Services and be paid the amounts set forth under this Agreement as if the Change had not been requested. Notwithstanding the preceding sentences of this Section IV or
any provision of the Schedule (including, without limitation, the Attachments) to the contrary, the parties shall consider all proposed Change Requests in good faith through the Governance Structure, but shall not be required to agree to the terms
and conditions of any proposed Change. 
 Change Control Procedure 

 

	4.1	All Change Requests (defined below) and Changes shall be dealt with in accordance with the procedure set forth below. Changes shall be effective only if made in writing
and signed by an officer of the parties who is authorized to execute such documents under the terms and conditions of the Schedule and in accordance with this Exhibit. 

 

	4.2	At any time and for any reason, either party may request a Change (each, a “Change Request”). Each Change Request shall be submitted in writing
to the other party, and shall specify in reasonable detail: 

  

	 	(a)	any proposed Change; 

  

	 	(b)	the impact of the proposed Change on the existing Services; 

  

	 	(c)	any amendment to this Schedule required by the proposed Change; 

  

	 	(d)	other details which the other party might reasonably agree to include in the Change Request; and 

 

	 	(e)	any other details set forth in the Change Request and Approval Form (defined below). 

 

	4.3	If Broadridge or Ridge submits the Change Request, it must set forth, if appropriate, in reasonable detail any proposed adjustments to the fees and/or any other pricing
mechanisms to be charged or used under the applicable Schedule, including, without limitation, any additional costs or expenses which shall be incurred by Penson or Client if and to the extent that the Change Request is approved.

  
 Broadridge/Penson Proprietary and
Confidential 
  

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 MASTER SERVICES AGREEMENT 

 

	4.4	If Penson or Client submits a Change Request, Broadridge and Ridge shall evaluate the Change Request and, within ten (10) business days, submit a response setting
forth in reasonable detail: 

  

	 	(a)	with respect to Changes other than Mandatory Changes, whether or not Broadridge and Ridge are prepared in principle to agree to the proposed Changes;

  

	 	(b)	any adjustments to the fees and/or other pricing mechanisms to be charged or used under the applicable Schedule that Broadridge and Ridge may propose, including,
without limitation, any additional costs or expenses that shall be incurred by Penson or Client in the event the Change Request is approved; and 

  

	 	(c)	a good faith estimate of the effective date for the Change. 

  

	4.5	If Broadridge or Ridge requires more time to respond, due to the nature or complexity of Penson’s or Client’s proposed Change Request or otherwise, Broadridge
or Ridge shall so inform Penson or Client and Broadridge or Ridge shall have a reasonable amount of additional time to respond. 

  

	4.6	If Broadridge or Ridge submits a Change Request, Penson and Client shall evaluate the Change Request and, within ten (10) business days, submit a response setting
out in reasonable detail: 

  

	 	(a)	whether or not Client are prepared in principle to agree to the proposed Changes; and 

 

	 	(b)	Penson’s and Client’s response to Broadridge’s or Ridge’s proposed Changes, including, without limitation, any proposed Changes to the Service
Charges and/or other pricing mechanisms provided in the applicable Schedule. 

  

	4.7	If Penson or Client requires more time to respond because of the size or complexity of Broadridge’s or Ridge’s proposed Change Request or otherwise, Penson or
Client shall so inform Broadridge or Ridge and Penson or Client shall have a reasonable amount of additional time to respond. 

  

	4.8	Once a response to the Change Request has been submitted, the parties shall discuss the proposed Change and any related matters. 

 

	4.9	Changes shall become effective upon execution and delivery by both parties of an amendment to this Master Services Agreement or the applicable Schedule affecting such
Change, which amendment shall be executed promptly and shall include all relevant changes to this Master Services Agreement or the applicable Schedule. 

  

	4.9	Each party shall bear its respective costs associated with proposing, considering, responding to or otherwise dealing with Change Requests and responses in accordance
with this Exhibit, unless the parties otherwise agree in writing. 

 Mandatory Changes 

Notwithstanding any provision to the contrary in this Section IV or elsewhere in this Agreement, any of the following Changes shall be considered a
“Mandatory Change”: Changes that (a) involves a request by Penson or Client for the provision of Services to a new Affiliate of Penson, (b) are necessary to implement new or modified Penson or Client policies, which
will in any event be processed as a Change, (c) are necessary to effect compliance with a new or modified Client Law, Compliance Directive or Ridge Law or (d) are identified in this Agreement as a Mandatory Change or a Change that is to be
implemented in accordance with the Change Control Procedures applicable to Mandatory Changes. Upon receipt of a request for a Mandatory Change, and subject to the “Development Scheduling” Service Level, Broadridge or Ridge shall provide a
fee estimate for each Mandatory Change and provide the schedule when such change will be implemented. If such schedule is not acceptable to Penson or Client, Broadridge or Ridge and Penson and Client shall negotiate in good faith an accelerated
schedule for the implementation of such change. Notwithstanding any provision to the contrary in this Section IV, all Mandatory Changes shall be implemented (i.e., neither party shall have the right to refuse to approve or implement such Change) in
accordance with the Change Control Procedures. Any dispute or disagreement regarding any Mandatory Change (including, without limitation, issues regarding fees, Service Levels, specifications for

  

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 MASTER SERVICES AGREEMENT 

 

 
deliverables and the implementation of the Mandatory Change) shall not delay the implementation of the Mandatory Change. For the avoidance of doubt, the Change Control Procedures applicable to
Mandatory Changes shall not apply to, and shall not relieve Broadridge or Ridge from, changes Broadridge or Ridge is otherwise required to make pursuant to this Agreement. 

 

	V.	FEE DISPUTES 

 In accordance with
Section 3.E (Payment) of this Master Services Agreement, Client may withhold the portion of an invoice for particular fees, subject to a bona fide dispute. Upon receipt of a Dispute Notice, the parties shall immediately meet (including,
without limitation, by telephone conference) to attempt to resolve the dispute. If the parties are unable to resolve the dispute at such meeting (a “Payment Dispute”) then either party may implement the following expedited
payment dispute escalation procedures: 
  

	5.1	Either party may initiate the expedited process by an arbitrator by sending notice of such request to the other party and describing the dispute or referencing this
Section 5.1 (a “Dispute Notice”). 

  

	5.2	For five (5) business days after delivery of the Dispute Notice, the parties each shall use good faith efforts to mutually agree upon an arbitrator. If the parties
are not able to agree upon an arbitrator within such period of time, such arbitrator shall be selected in accordance with the International Institute for Conflict Prevention and Resolution for Non-Administered Arbitration, or its successor.

  

	5.3	The arbitrator shall possess at least fifteen (15) years of relevant experience in a law firm or corporate law department of over twenty-five (25) lawyers or
a judge of a court of general jurisdiction. The arbitrator shall not have represented or acted on behalf of either party, or be otherwise affiliated with or interested in either party. 

 

	5.4	Upon selection of the arbitrator, the parties shall agree on a schedule to present the dispute to the arbitrator and obtain a decision as described herein, during a
time frame of no more than twenty (20) days. In the event the parties cannot agree upon a schedule, the arbitrator shall provide a schedule. Each party shall simultaneously submit a memorandum to the arbitrator that is not more than ten
(10) pages in length, accompanied by relevant documents and not more than three (3) affidavits. After receiving and reviewing the memoranda and supporting information, the arbitrator shall conduct a hearing of no more than four
(4) hours, that shall include not more than two representatives of each party, at which the parties may present their case and shall submit to questioning by the arbitrator. The arbitrator shall render his or her decision within seventy-two
(72) hours of the hearing. 

  

	5.5	The standard under which the arbitrator shall render his or her decision shall be whether there exists a good faith basis for Client to withhold the disputed charges
under the terms and conditions of this Master Services Agreement and the applicable Schedule. The arbitrator shall issue his or her decision in the form of a ruling on that single issue, and shall not provide any written basis or support for his or
her opinion. If the arbitrator determines that Client had a good faith basis for withholding the disputed fees, then such sums shall remain in Client’s possession. If the arbitrator determines that Client did not have a good faith basis for
withholding the disputed charges, then Client shall pay such disputed fees to Broadridge or Ridge, under reservation of rights, within ten (10) days after the date of the arbitrator’s decision. After the arbitrator renders such decision,
each party may pursue any and all rights associated with the Payment Dispute through the dispute escalation procedures set forth in this Exhibit. The decision of the arbitrator shall have no force or effect other than for the limited purposes stated
in this Section 5. 

  

	5.6	The decision of the arbitrator and all communications, memoranda and supporting documentation exchanged in connection with the procedures set forth in this
Section 5 shall be exchanged on a without prejudice basis and the decision of the arbitrator and briefs of the parties shall be inadmissible in any respect in any subsequent proceeding. All communications, memoranda, supporting documentation,
and the arbitrator’s decision shall be deemed Information under this Agreement. 

  

	5.7	The arbitrator shall be compensated at his or her applicable billing rate, which shall be split equally between the parties. Any costs incurred by either party shall be
borne by that party. 

  
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Proprietary and Confidential 
  

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 MASTER SERVICES AGREEMENT 

 

	5.8	A party’s failure to commence or pursue the expedited procedures set forth in this Section 5 shall not constitute, operate or be construed as a waiver of any
right the party may have under this Agreement. 

  

	VI.	ACCEPTANCE 

 Without prejudice or limitation to
any other rights or remedies of Client, new Ridge Products shall be subject to acceptance testing by Client to verify that such Ridge Products conform to the specifications provided in connection with such Ridge Products (the “Acceptance
Criteria”). When Ridge notifies Client that a Ridge Product is ready for testing for conformance with the Acceptance Criteria, Client may elect to test the Ridge Product to determine whether they comply in all material respects with the
Acceptance Criteria. Client shall have thirty (30) business days to complete such testing. Upon completion of such testing, Client shall promptly notify Ridge whether it has accepted such Ridge Product (“Accept”), or
whether it has identified discrepancies with the Acceptance Criteria (“Reject”). If Client Accepts the Ridge Product it shall issue a notice thereof. If Client Rejects the Ridge Product, Client shall provide notice setting
forth a list of items that Client claims must be corrected and Ridge shall use commercially reasonable efforts to correct such Ridge Product and the testing process shall resume as set forth above. If Client does not provide notice to Ridge after
such thirty (30) day period, then the Ridge Products shall be deemed to be accepted. 
  

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 Exhibit D 

Step In Rights 
  

	1.1	If Penson or Client wishes to take action, either itself, through an Affiliate or using a third party acting on its behalf, and such action involves onsite access at a
Ridge location, Penson or Client shall notify Broadridge or Ridge of the following: 

  

	 	(a)	the action it wishes to be taken; 

  

	 	(b)	the reason for such action together with supporting evidence; 

  

	 	(c)	the date it wishes to commence such action; and 

  

	 	(d)	the estimated time period which it believes will be necessary for such action. 

 

	1.2	Following service of such notice and subject to compliance with the other terms and conditions of this Exhibit and the Agreement, Penson or Client shall take such
action as notified under Section 1.1 above and any consequential additional action as it reasonably believes is necessary (together, the “Required Action”) and Broadridge and Ridge shall give all reasonable assistance to
Penson or Client while it is taking the Required Action. Penson or Client shall exercise its rights under this Exhibit reasonably and in a manner that complies with applicable standard policies and procedures applicable to onsite access at the Ridge
locations (including, without limitation, policies relating to access to other customers’ data). 

  

	1.3	Before ceasing the Required Action, if Penson or Client intends to hand the Services back to Ridge, Penson or Client shall deliver notice to Broadridge, specifying in
reasonable detail (to the extent that it is reasonably practicable in the circumstances): 

  

	 	(a)	the action it has taken; and 

  

	 	(b)	the date it plans to conclude such action 

(the “Step Out Notice”). 
  

	1.4	Unless otherwise agreed by Broadridge or Ridge, Penson’s or Client’s right to have onsite access to the Ridge locations for the purpose of exercising step in
rights under this Exhibit shall expire six (6) months after the date that Client first has taken any Required Action onsite at a Ridge location, but only if Penson or Client has not delivered a Step Out Notice prior to the date of such
expiration. 

  

	1.5	To the extent Penson or Client takes over responsibility for any of the Services while onsite at a Ridge location during the exercise of its step in rights, then Ridge
shall not be responsible for meeting the Service Levels that are associated with such Services, to the extent that Penson’s or Client’s actions result in a failure to achieve Service Levels. Penson’s or Client’s exercise of its
step in rights shall not constitute a waiver by Penson or Client of any termination rights or rights to pursue a claim for damages arising out of the failure that led to the step in rights being exercised. 

 
 Broadridge/Penson Proprietary and Confidential 

 

 39 

 NOTE: PORTIONS OF THIS AGREEMENT ARE THE SUBJECT OF A 

CONFIDENTIAL TREATMENT REQUEST BY THE REGISTRANT TO THE 

SECURITIES AND EXCHANGE COMMISSION. SUCH PORTIONS HAVE BEEN 

REDACTED AND ARE MARKED WITH A “[****]” IN PLACE OF THE REDACTED LANGUAGE. 

Schedule A (United States) 

SERVICE BUREAU AND OPERATIONS SUPPORT SERVICES SCHEDULE 

To The Master Services Agreement 

between 

BROADRIDGE FINANCIAL SOLUTIONS, INC. 

and 

PENSON WORLDWIDE, INC. 

This schedule (the “Schedule”), dated as of November 2, 2009 (the “Schedule Effective Date”),
between Ridge Clearing & Outsourcing Solutions, Inc. (“Ridge Local Affiliate”) and Penson Financial Services, Inc. (“Client Local Affiliate”), to the Master Services Agreement, dated as of the
date hereof, between Broadridge Financial Solutions, Inc. and Penson Worldwide, Inc., sets forth the terms and conditions, in addition to the terms and conditions in the Master Services Agreement, under which Ridge Local Affiliate will provide
service bureau and operations support services to Client Local Affiliate to assist and support Client Local Affiliate in functioning as a clearing firm. Each of Client Local Affiliate and Ridge Local Affiliate agrees to comply with and fulfill all
terms and conditions applicable to it under the Master Services Agreement. 
 Unless otherwise defined herein, all capitalized terms shall have
the meanings given to them in the Master Services Agreement. In the event of a conflict between the terms and conditions of this Schedule and the terms and conditions of the Master Services Agreement, the terms and conditions of this Schedule shall
govern. The term “Client Local Affiliate” as used in this Schedule includes all Affiliates, divisions and subsidiaries of Client Local Affiliate. Except where otherwise indicated, all references in this Schedule to Sections
or Attachments are to Sections to, and Attachments of, this Schedule. The term “party” as used in this Schedule means Ridge Local Affiliate or Client Local Affiliate, as applicable. The term “parties” as used in this Schedule
means Ridge Local Affiliate and Client Local Affiliate. 
  

	I.	SUBMISSION OF SCHEDULE 

A. During the Schedule Term, Client Local Affiliate and Ridge Local Affiliate shall each be subject, to the extent applicable to such
party, to the provisions of federal, state and local laws, rules and regulations and the constitution, by-laws, rules, regulations and stated policies of the Securities and Exchange Commission (“SEC”), the Financial
Regulatory Authority (“FINRA”), the New York Stock Exchange, Inc. (“NYSE”), and any other securities exchange, commission, association, regulatory or self-regulatory organization
(“SRO”) vested with authority over Client Local Affiliate or Ridge Local Affiliate (to the extent applicable to a party, the “Laws and Rules”). Each party shall perform its obligations under this
Schedule in accordance with the Laws and Rules. 
 B. Client Local Affiliate shall submit this Schedule to FINRA, or any other
SRO, as required, on behalf of itself and Ridge Local Affiliate for review and, if necessary, approval. This Schedule shall not become effective until the date upon which all necessary SRO approvals as to both parties are received (the
“Approval Date”); provided, however, that if no SRO approvals are required for this Schedule to become effective, this Schedule shall become effective as of the Schedule Effective Date. In the event that any such approval is
required and this Schedule is not so approved, the parties shall negotiate in good faith to 
  

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amend this Schedule as may be needed to obtain such approval. This Schedule will be effective in connection with the Acquired Correspondents (“correspondents receiving services under the
Assigned Contracts (as such term is defined in the Asset Purchase Agreement)”) upon the later of the Approval Date and the Closing Date (as defined in the Asset Purchase Agreement.) 

C. Ridge Local Affiliate acknowledges that Client Local Affiliate has regulatory responsibilities as a clearing firm, including, among
other things, a duty to supervise the types of business in which it engages. To assist Client Local Affiliate in satisfying such obligations, Ridge Local Affiliate agrees to provide, at the reasonable request of Client Local Affiliate, performance
reports with respect to the Services and full access to relevant books and records, information and Ridge Local Affiliate personnel engaged in providing the Services. Ridge Local Affiliate acknowledges that Client Local Affiliate is required, from
time to time, to prepare and file reports with the SEC, FINRA, NYSE and other SROs or Governmental Authorities. To assist Client Local Affiliate in satisfying such requirements, Ridge Local Affiliate agrees to provide Client Local Affiliate with
information in its possession that is necessary for Client Local Affiliate to prepare and file any such reports. 
 D. This
Schedule is not intended, and shall not be construed, to limit, reduce, or otherwise change any regulatory, contractual or other obligation that Client Local Affiliate owes to a correspondent or to its customers. 

 

	II.	SERVICES TO BE PERFORMED BY RIDGE LOCAL AFFILIATE 

A. Subject to the second paragraph of Section 16.G of the Master Services Agreement and Section I.B, Ridge Local Affiliate will
perform the services, functions and responsibilities described in Attachment A in accordance with the terms and conditions of this Schedule and the Master Services Agreement. Attachment A is hereby incorporated in and made an
integral part of this Schedule. Any additional services to be performed by Ridge Local Affiliate shall be subject to the written agreement of the parties. 

B. Ridge Local Affiliate represents and warrants that, in providing the Services, the Transferred Operations Support Services (as defined
in Attachment A) and the Additional Technology Services (as defined in Attachment A) to the Acquired Correspondents, Ridge Local Affiliate will be providing to the Acquired Correspondents services, products and systems of an
identical or higher quality to the services, products and systems provided by Ridge Local Affiliate to such Acquired Correspondents immediately prior to the Schedule Effective Date. 

C. This Schedule and the Master Services Agreement are intended to create an exclusive arrangement between Client Local Affiliate and
Ridge Local Affiliate with respect to the Services utilized by Client Local Affiliate as of the applicable Live Date in the Territory for which a pricing schedule is included in this Schedule except (A) as otherwise set forth in this Schedule
and the Master Services Agreement and (B) in the event that (i) Client Local Affiliate or a Customer of Client Local Affiliate is prohibited by Law from receiving Services from Ridge Local Affiliate in the Territory, (ii) Client Local
Affiliate obtains a business and in connection therewith is contractually required to use an alternative system (and not the Services) as a condition of obtaining such business or (iii) during any time period that Ridge Local Affiliate is in
material breach of this Schedule and has failed to cure such breach within thirty (30) days following notice from Client Local Affiliate specifying the nature of such breach in reasonable detail. 

 

	III.	CONVERSION 

 A.
Conversion of Client Correspondents. In connection with the conversion of the correspondents of Client Local Affiliate, other than the Acquired Correspondents, (“Client Correspondents”) to Ridge Local Affiliate, the
parties agree to the following: 
  

	 	(i)	 Client Local Affiliate shall provide Ridge Local Affiliate with Client Local Affiliate’s requirements with respect to the Client Local Affiliate
files and Service Levels applicable to the Client Correspondents (the “Client Requirements”) after the Schedule Effective 

 
 Ridge Clearing & Outsourcing Solutions, Inc. 

 

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Date. The parties shall enter into a statement of work (the “Conversion SOW”) that will describe Client Local Affiliate’s migration to Ridge Local Affiliate’s
service delivery and technology platform no later than [****] after Ridge Local Affiliate’s receipt of the Client Requirements. The Conversion SOW will define the Target Live Date for each Service and describe specific implementation activities
and procedures required to migrate Client Correspondents to the Ridge Local Affiliate, including, without limitation, development, implementation and integration of Software and other software and development and integration of correspondent
clearing functionalities, reporting and monitoring systems and such other services as may be set forth in the Conversion SOW (the “Conversion Services”). Without limiting the generality of the foregoing, the Conversion SOW
shall (1) specify that Ridge Local Affiliate will convert the applicable Client Local Affiliate files to make them compatible with the Services and the other services, as may be required in respect of the migration of Client Local
Affiliate’s Customers to the Services and (2) describe the development and integration of correspondent clearing functionalities by Ridge Local Affiliate. The Conversion Services shall be provided at no charge to Client Local Affiliate by
Ridge Local Affiliate. 

  

	 	(ii)	The parties shall cooperate and provide each other with all information and assistance reasonably required in connection with the Conversion Services. Each party will
assign a liaison person to assist and cooperate with the other party in connection with the Conversion Services (which person may be replaced by a party at its sole discretion from time to time by way of notice to the other party).

  

	IV.	TERM OF SCHEDULE 

 A.
Schedule Term. The term of this Schedule (the “Schedule Term”) shall begin on the Schedule Effective Date and shall continue for a period of ten (10) years after the last Live Date with respect to the Schedules
under the Master Services Agreement for the U.S., U.K. or Canada (for clarity, the Schedule Term of the Schedules under the Master Services Agreement for the U.S., U.K. and Canada shall be coterminous with each other); provided, however, that this
Schedule’s effective date is subject to its review and approval by the applicable regulatory agency as described in Section I.A. The “First Billable Date” for the Services shall mean: (i) for the Services
provided in connection with the Acquired Correspondents, the later of the Approval Date and the Closing Date (as such term is defined in the Asset Purchase Agreement); and (ii) for the Services provided in connection with the Client
Correspondents, the Live Date for such Service. The “Live Date” for a Service is defined as the first date upon which Ridge Local Affiliate processes trades utilizing the applicable Service on behalf of Client Correspondents
in accordance with the provisions and requirements of this Schedule and the Master Services Agreement (excluding any beta testing or similar testing of the system). The Schedule Term shall automatically extend following its scheduled expiration date
unless (1) either party gives notice of termination at least one hundred eighty (180) days prior to the scheduled expiration date, in which case the Schedule Term shall expire on the scheduled expiration date or (2) either party gives
notice of termination at any time after the date that is one hundred eighty (180) days prior to the scheduled expiration date of the Schedule Term (including any time beyond the scheduled expiration date), in which case the Schedule Term shall
expire on the date specified in such notice of termination, which date must be at least one hundred eighty (180) days after the date of such notice. 

B. Client Local Affiliate’s Termination. 
  

	 	(i)	Client Local Affiliate may terminate this Schedule for convenience upon one hundred twenty (120) days notice to Ridge Local Affiliate. In the event of any such
termination or in the event Ridge terminates this Schedule pursuant to Section 18.B of the Master Services Agreement, Client Local Affiliate shall pay to Ridge Local Affiliate prior to the effective date of such termination, as liquidated
damages and not as a penalty, an amount equal to [****] of the Base Fee (as such Base Fee is adjusted by Section II of Attachment B-1, but not as increased or decreased in connection with Section III of
Attachment B-1) that Client Local Affiliate would otherwise be obligated to pay under this Schedule if this Schedule had not been terminated, from and after the effective date of termination through the end of this Schedule Term.

  
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	 	(ii)	Client Local Affiliate may terminate this Schedule in the event of a Service Level Termination Event upon notice to Ridge Local Affiliate, and, in such event, no
termination fees or termination charges of any type shall be payable by Client Local Affiliate to Ridge Local Affiliate. 

No later than [****] after the Schedule Effective Date, the parties shall define a Service Level Termination Event. 

 

	 	(iii)	Client Local Affiliate may terminate this Schedule for a Change in Control of Client Local Affiliate or any Affiliate that directly or indirectly Controls such Client
Local Affiliate (the “Applicable Client Entity”) upon [****] notice to Ridge Local Affiliate. In the event of any such termination, Client Local Affiliate shall pay to Ridge Local Affiliate prior to the effective date of such
termination, as liquidated damages and not as a penalty, an amount equal to the lesser of (a) [****] of the Base Fee (as such Base Fee is adjusted by Section II of Attachment B-1, but not as increased or decreased in connection
with Section III of Attachment B-1) that Client Local Affiliate would otherwise be obligated to pay under this Schedule if this Schedule had not been terminated, from and after the effective date of termination through the end of
the Schedule Term and (b) U.S. [****]. 

 “Change in Control” shall mean the
(a) consolidation or merger of an Applicable Client Entity with or into any entity (other than the consolidation or merger of an Applicable Client Entity with a third party entity in which such Applicable Client Entity is the surviving entity;
provided, however, that the holders of the then-outstanding voting securities of such Applicable Client Entity prior to any such consolidation or merger hold securities that represent immediately after such consolidation or merger greater than fifty
percent (50%) of the combined voting power of the then-outstanding voting securities of such Applicable Client Entity thereafter), (b) sale, transfer or other disposition of all or substantially all of the assets of an Applicable Client
Entity or (c) acquisition by any individual, entity, or group of individuals or entities acting in concert, of beneficial ownership of fifty percent (50%) or more (or such lesser percentage that constitutes the power to direct or cause the
direction of the management and policies of an Applicable Client Entity) of the outstanding voting securities or other ownership interests of an Applicable Client Entity. 

C. Failure To Go Live. If the Services in connection with the Client Correspondents do not go live by the Target Live Date set
forth in the Conversion SOW or any other date agreed to by the parties as set forth in writing, through no fault of Ridge Local Affiliate (or its subcontractors) or a Force Majeure Event (as defined in the Master Services Agreement) or a delay in
obtaining an approval described in Section I.B, then Client Local Affiliate shall pay to Ridge Local Affiliate, as liquidated damages and not as a penalty, an amount equal to a percentage of the Base Fee that Client Local Affiliate would
otherwise be obligated to pay if the Services had commenced on the Target Live Date as follows (each, a “Failure To Go Live Monthly Payment”): (i) if the Services do not go live by the [****] following the Target Live
Date, [****] of the Base Fee for such [****]; (ii) if the Services do not go live by the [****] following the Target Live Date, [****] of the Base Fee for such [****]; (iii) if the Services do not go live by the [****] following the Target
Live Date, [****] of the Base Fee for such [****]; (iv) if the Services do not go live by the [****] following the Target Live Date, [****] of the Base Fee for such [****]; (v) if the Services do not go live by the [****] following the
Target Live Date, [****] of the Base Fee for such [****]; and (vi) if the Services do not go live by the [****] following the Target Live Date, [****] of the Base Fee for such [****] and for each [****] thereafter until the Services go live.

 D. Early Go Live. If the Services go live prior to the Target Live Date or any other date agreed to by the parties as
set forth in writing, then the Base Fees with respect to the Services shall be reduced by an 
  

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amount equal to a percentage of the Base Fee for each [****] until the Target Live Date as follows: (i) if the Services go live [****] or more prior to the Target Live Date, [****] of the
Base Fee for such [****] and for each [****] prior to such [****]; (ii) if the Services go live [****] prior to the Target Live Date, [****] of the Base Fee for such [****]; (iii) if the Services go live [****] prior to the Target Live
Date, [****] of the Base Fee for such [****]; (iv) if the Services go live [****] prior to the Target Live Date, [****] of the Base Fee for such [****]; (v) if the Services go live [****] prior to the Target Live Date, [****] of the Base
Fee for such [****]; and (vi) if the Services go live [****] prior to the Target Live Date, [****] of the Base Fee for such [****]. 

E. Failure to Deliver. If Ridge Local Affiliate fails to deliver the Services (compliant with the Statement of Work and
specifications) by the Target Live Date, through no fault of Client Local Affiliate (or its subcontractors) or a Force Majeure Event (as defined in the Master Services Agreement) or a delay in obtaining an approval described in Section I.B (a
“Failure to Deliver”), then Ridge Local Affiliate shall pay Client Local Affiliate, as liquidated damages and not as a penalty, an amount equal to a percentage of the amount Client Local Affiliate pays in connection with
(a) the Client Local Affiliate personnel performing the operational support services described in Appendix 3 and (b) the services Client Local Affiliate outsourced to third parties, including, without limitation, as set forth in
Appendix 4, in each case, on a [****] basis until such time as Ridge Local Affiliate delivers the Services (compliant with the Statement of Work and specifications); provided, however, that such amount Client Local Affiliate pays is
consistent with amounts Client Local Affiliate historically paid for such services, including any non-recurring expense or cost (collectively, the “Historical Amount”), as follows: (i) if the Services do not go live by
the [****] following the Target Live Date, [****] of the Historical Amount; (ii) if the Services do not go live by the [****] following the Target Live Date, [****] of the Historical Amount for such [****]; and (iii) if the Services do not
go live by the [****] following the Target Live Date, [****] of the Historical Amount for such [****] and for each [****] thereafter. 

If a Failure to Deliver requires Client Local Affiliate to extend or renew any Disclosed Agreement (as defined below), then:
(1) Client Local Affiliate shall use commercially reasonable efforts to obtain a month-to-month extension of such Disclosed Agreement and, if it is unable to obtain a month-to-month extension, promptly notify Ridge Local Affiliate of its
inability to obtain a month-to-month extension and use commercially reasonable efforts to minimize any early termination fees due under such extension or renewal (whether by contractual right or continuing such Disclosed Agreement past the
expiration date); (2) during the period from and after the first day of such extension or renewal (whether by contractual right or continuing such Disclosed Agreement past the expiration date) and until and including the final Live Date with
respect to the Services applicable to such Disclosed Agreement, Ridge Local Affiliate shall be responsible for any incremental increase in the fees due under such Disclosed Agreement as a result of such extension or renewal (in addition to the
Historical Amounts calculated in accordance with the first paragraph of this Section IV.E); and (3) from and after the final Live Date with respect to the Services applicable to such Disclosed Agreement, Ridge Local Affiliate shall be
responsible for any early termination fees, fees for services and other amounts payable under such Disclosed Agreement. A “Disclosed Agreement” is defined as those agreements between Client Local Affiliate and a third-party
service provider that Client Local Affiliate discloses to Ridge Local Affiliate, including the applicable termination date and extension options of each such agreement, prior to the parties’ execution of the Conversion SOW. 

 

	V.	CHARGES 

  

	 	A.	The fees for the Services are set forth in Attachment B hereto. Attachment B is hereby incorporated in and made an integral part of this
Schedule. All fees and charges set forth in Attachment B are in U.S. dollars. 

  

	 	B.	 The monthly charge for the Services shall be equal to 1/12th of the Base Fee plus any Tiered Fees, as set forth in Attachment B, and shall
be payable commencing on the First Billable Date for the relevant Services. The monthly charge shall not be increased at anytime during the Schedule Term, except (i) as set forth in Attachment B and (ii) Ridge Local Affiliate
shall have the right to 

  

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pass through increases, and shall pass through decreases, relating to the charges of third party service providers, including, without limitation, communication and other third party service
provider charges (excluding charges of Ridge Local Affiliates) and federal, provincial, and local governmental fees, to the extent that the parties imposing such fees have increased or decreased the same and provided any such increases shall be
passed through only to the extent they are passed through to all Ridge Local Affiliate customers receiving the Services. 

  

	 	C.	[****]. 

  

	VI.	NO PARTNERSHIP OR AGENCY; NO SPECIAL TREATMENT 

Neither this Schedule nor any activity hereunder shall create a general or limited partnership, association, joint venture, branch or
agency relationship between Client Local Affiliate and Ridge Local Affiliate. Client Local Affiliate shall not hold itself out as an agent of Ridge Local Affiliate or of any subsidiary or company controlled directly or indirectly by or affiliated
with Ridge Local Affiliate, nor shall it employ Ridge Local Affiliate’s name in any manner that creates the impression that the relationship created or intended between them is anything other than that of service provider and clearing broker.
Except as reasonably necessary to provide the Services, Ridge Local Affiliate shall not hold itself out as an agent of Client Local Affiliate or of any subsidiary or company controlled directly or indirectly by or affiliated with Client Local
Affiliate, nor shall it employ Client Local Affiliate’s name in any manner that creates the impression that the relationship created or intended between them is anything other than that of service provider and clearing broker. Neither party
shall, without the prior approval of the other party, place any advertisement in any newspaper, publication, periodical or any other media if such advertisement in any manner makes reference to the other party or to the arrangements contemplated by
this Schedule. Neither party shall, without the prior approval of the other party (which approval shall not be unreasonably withheld), furnish any link to the website(s) of the other party or its Affiliates. For the avoidance of doubt,
nothing herein shall prevent the disclosure of (i) Ridge Local Affiliate’s name or the Services to be performed under the Master Services Agreement or this Schedule to any of Client Local Affiliate’s regulators or customers or
(ii) a party’s name or the services it offers to the extent necessary to carry out each party’s obligations under the Master Services Agreement, this Schedule or Marketing Agreement. 

Nothing herein shall cause Ridge Local Affiliate to be construed as or deemed to be a fiduciary with respect to Client Local Affiliate,
any correspondent of Client Local Affiliate, or any customer of Client Local Affiliate or its correspondents. 
 This Schedule is
not intended, nor shall it be construed, to bestow upon either party any special treatment regarding any other arrangements, agreements or understandings that exist or may hereafter exist between the parties or their affiliates. Neither party shall
have any obligation to deal with the other in any capacity other than as set forth in this Schedule. 
  

	VII.	SERVICE LEVELS 

 Ridge
Local Affiliate shall provide the Services in accordance with the terms and conditions set forth in Section 1.C of the Master Services Agreement and with respect to Service Levels set forth in Attachment C hereto and any other
Service Level agreement that may be agreed between the parties from time to time with respect to the Territory. Attachment C is hereby incorporated in and made an integral part of this Schedule. Ridge Local Affiliate agrees that the
Service Levels set forth in Attachment C shall be at least as stringent as any service levels provided by Ridge Local Affiliate to its other clients in the U.S. 

 

	VIII.	EXCHANGE OF INFORMATION 

Throughout the Schedule Term, each party shall promptly supply the other with information in its possession necessary or appropriate to
enable the other party properly to perform its obligations under this Schedule and as a registered broker-dealer. 
  

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	IX.	RECORDS RETENTION 

 The
information that Ridge Local Affiliate generates on behalf of Client Local Affiliate are the books and records of Client Local Affiliate. Notwithstanding anything to the contrary in the Master Services Agreement, Ridge Local Affiliate will maintain
and preserve such information in accordance with the agreed-upon record retention policy set forth in Attachment G and the Laws and Rules. Any additional retention period(s) shall be directed by Client Local Affiliate and shall be
subject to the mutual written agreement of the parties. Attachment G is hereby incorporated in and made an integral part of this Schedule. 
  

	X.	GOVERNANCE 

 Ridge Local
Affiliate and Client Local Affiliate shall each appoint at least two (2) senior level managers to a joint committee that shall meet no less than monthly to address issues that may arise in connection with the performance of the Services. In
addition to the foregoing but without prejudice to the obligations of the parties under this Schedule or the Master Services Agreement, the parties have agreed to the detailed governance provisions set forth in Exhibit C to the Master
Services Agreement. 
 Ridge Local Affiliate shall provide to Client Local Affiliate the reports set forth in
Attachment F. Attachment F is hereby incorporated in and made an integral part of this Schedule. 
  

	XI.	TAPE RECORDING 

 Unless
otherwise prohibited by applicable Law, the parties shall have the right to record telephone conversations between themselves, and waive any right to further notice of any such recording. The parties agree to make such recordings available to each
other upon reasonable notice. 
  

	XII.	THIRD PARTY VENDOR SERVICES 

Client Local Affiliate may contract directly with and in such case will be responsible for (i) complying with the terms and
conditions of use relating to additional third party products or services not affiliated with Ridge Local Affiliate set forth in Attachment A that it elects to receive or access through Ridge Local Affiliate from time to time and
(ii) the costs relating thereto as applicable, other than those third party products or services integrated into the Services or provided as part of the Services. If third party products or services, including, without limitation, data, are
provided by or through Ridge Local Affiliate to Client Local Affiliate or integrated into the Services or provided as part of the Services, Ridge Local Affiliate shall obtain and warrants and represents that it has the full right, title or license
required to provide such product or service to Client Local Affiliate. Additionally, Ridge Local Affiliate hereby grants to Client Local Affiliate and customers of Client Local Affiliate the right to use such product or service during, and for the
purposes of, and in accordance with, the Master Services Agreement and this Schedule. 
 Client Local Affiliate shall be
responsible for complying with the terms and conditions of use (to the extent such terms and conditions of use are provided by Ridge Local Affiliate to Client Local Affiliate) relating to the third party products or services that it receives or
accesses through Ridge Local Affiliate and the costs relating thereto. If (i) any third party products or services, or Ridge-owned products or services, provided by Ridge Local Affiliate become unavailable and require replacement,
(ii) Ridge Local Affiliate, upon notice to Client Local Affiliate (and upon Client Local Affiliate’s consent, if and to the extent such consent is required by Law), elects to replace any third party products or services or Ridge-owned
products or services provided by Ridge Local Affiliate with new or different third party products or services or Ridge-owned products or services or (iii) at least fifty percent (50%) of Ridge Local Affiliate’s clients utilizing such
products or services in the Territory request such replacement, in each case, Ridge Local Affiliate shall replace such products or services with equivalent or enhanced products or services without increased cost. 

Client Local Affiliate may contract directly with any vendor or subcontractor of Ridge Local Affiliate for the services provided by such
vendor or subcontractor through Ridge Local Affiliate; provided, however, that (a) such contract does not violate Ridge Local Affiliate’s obligations to such vendor or subcontractor and (b) Client Local Affiliate shall be responsible
for the cost of any transition services (including, without limitation, any incremental costs resulting from the transition) in connection therewith. 
  

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	XIII.	OBLIGATIONS FOR RECEIPT OF DATA 

Client Local Affiliate may be using data set forth in Attachment D hereto provided by FT Interactive Data Corporation
(“FT Interactive”). In such case, Client Local Affiliate agrees to the provisions attached hereto as Attachment D relating to its use of FT Interactive Data Corporation data in respect of the Services.
Attachment D is hereby incorporated in and made an integral part of this Schedule. Client Local Affiliate shall be under no obligation to receive FT Interactive Data Corporation data through Ridge Local Affiliate and to such extent, the
previous sentence shall not apply and Ridge Local Affiliate shall not be responsible for the provision of such services to Client Local Affiliate in such case or have any liability for such non-Ridge Local Affiliate FT Interactive Data Corporation
services that Client Local Affiliate decides to receive. Ridge Local Affiliate warrants and represents that it has full right, title or license required to provide such data to Client Local Affiliate for use in the Services. Additionally, Ridge
Local Affiliate hereby grants to Client Local Affiliate the right to use and store such data pursuant to the terms and conditions of Attachment D, for the purposes of Client Local Affiliate providing services to its customers in the course of
Client Local Affiliate’s standard commercial operations. 
  

	XIV.	ACQUISITION OF OR BY ANOTHER RIDGE LOCAL AFFILIATE CLIENT 

In the event that Client Local Affiliate acquires, or is acquired by, by stock, acquisition of substantially all the assets of, merger, or
consolidation (a “Business Combination”), a Client Local Affiliate of Ridge Local Affiliate’s Brokerage Services Group that receives trade processing services substantially similar to the Services provided under this
Schedule (the “Other Entity”), and Client Local Affiliate and the Other Entity, or the resulting entity as the case may be, consolidate the trade processing carried out under this Schedule with the trade processing carried
out by the Other Entity prior to the termination or expiration of the Client Local Affiliate’s or the Other Entity’s schedule relating to trade processing services substantially similar to the Services provided under this Schedule so that
it is processed by Ridge Local Affiliate as one entity, all service charges, including, without limitation, the Base Fee and any other applicable tiered fees applicable for the brokerage processing services provided by Ridge Local Affiliate shall be
renegotiated in good faith between Ridge Local Affiliate and Client Local Affiliate. Otherwise, the Ridge Local Affiliate agreements with Client Local Affiliate and the Other Entity agreements in place prior to the Business Combination shall remain
in effect for the respective services provided by Ridge Local Affiliate or any other Ridge Local Affiliate’s Brokerage Services Group entity until the termination or expiration of such agreements. For clarity and notwithstanding anything to the
contrary, Client Local Affiliate and the Other Entity shall be free to consolidate their trade processing after the termination or expiration of either of their agreements or relevant Schedule with Ridge Local Affiliate or any entity of the Ridge
Local Affiliate Brokerage Services Group without restriction and without any obligation to renegotiate any fees relating to trade processing or otherwise. In the event Client Local Affiliate participates in a Business Combination with an entity that
is not a client of Ridge Local Affiliate’s Brokerage Services Group that receives trade processing and/or operations support services substantially similar to the Services provided under this Schedule, all rates in Attachment B
(including, without limitation, the Base Fee and any other applicable tiered fees applicable for the brokerage processing services) provided by Ridge Local Affiliate shall remain as set forth in Attachment B, subject to the adjustments
described therein. 
  

	XV.	CLIENT LOCAL AFFILIATE RESPONSIBILITIES 

Client Local Affiliate shall be responsible, to the extent necessary for the Services it is receiving, in connection with the use of the
Services for the following: 
  

	 	A.	User security administration for the Services in accordance with, and as set forth in, the relevant product specifications and user documentation.

  

	 	B.	Forms and supplies required by Ridge Local Affiliate in connection with the performance of the Services, which are agreed to by the parties in writing. Ridge Local
Affiliate shall provide Client Local Affiliate with reasonable advance notice of any such requirements. 

  

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	 	C.	Equipment, other than equipment provided by Ridge Local Affiliate, at Client Local Affiliate’s location required in use of the Services (e.g., printers, terminals)
as identified by Ridge Local Affiliate in writing. 

  

	 	D.	Dial backup ISDN circuits or other equivalent backup solution selected by Client Local Affiliate. 

 

	 	E.	Third party telecommunications services not otherwise set forth in Attachment B. 

 

	 	F.	Hardware, software, and telecommunications products required to interface to the Services (e.g., terminal emulation software), other than any such hardware, software,
and telecommunications products provided by Ridge Local Affiliate. 

  

	 	G.	Special equipment, which Client Local Affiliate may elect to place at Ridge Local Affiliate locations, if required by Client Local Affiliate, specific to Client Local
Affiliate’s use of the Services as agreed to by the parties in writing. 

  

	 	H.	Use commercially reasonable efforts to obtain the approval of each relevant regulatory or self-regulatory agency or entity, if any, with regulates Client Local
Affiliate’s receipt of the Services (including, without limitation, securities and commodities exchanges, associations of securities and/or commodities dealers, federal, provincial and local Governmental Authorities). 

For the avoidance of doubt, Ridge Local Affiliate shall not be responsible for its failure to provide Services solely to the extent caused
by the failure of Client Local Affiliate to perform the above listed requirements. Ridge Local Affiliate shall (i) provide Client Local Affiliate with reasonable notice of Client Local Affiliate’s failure to perform any of its
responsibilities set forth in this Schedule and (ii) use commercially reasonable efforts to perform notwithstanding Client Local Affiliate’s failure to perform, subject to Client Local Affiliate reimbursing Ridge Local Affiliate for any
reasonable incremental cost to Ridge Local Affiliate in connection with such efforts. 
  

	XVI.	REQUIRED PROVISION OF SYBASE, INC. 

Client Local Affiliate acknowledges and agrees that the Sybase SQL Server Program and the Sybase Replication Server Program (the
“Programs”) to the extent incorporated into the Services and used in connection with Ridge Local Affiliate’s BPS Advantage product, if selected and received by Client Local Affiliate, shall only be used by the Client
Local Affiliate as set forth below to read, in a view-only format, the Services, and the Programs shall not be downloaded or used to create or alter tables, schemas or databases or otherwise develop or modify in any way the applications or
performance of other programming tasks. Notwithstanding the foregoing, Client Local Affiliate may access the Programs through Ridge Local Affiliate tools or third party tools; provided, however, that any access shall be restricted to the following:
Client Local Affiliate may access the Services embedding a copy of the Programs which are deployed on Ridge Local Affiliate’s premises or Client Local Affiliate’s site, provided, however, that in either instance, Client Local Affiliate
shall not (i) copy the application(s) embedding the Programs, (ii) use the Programs other than to process Client Local Affiliate’s own transactions, transactions for entities that are correspondents or customers of the Client Local
Affiliate and transactions for entities that operate on a fully disclosed basis through Client Local Affiliate as correspondents, or (iii) access the Programs for general development. Client Local Affiliate may also develop applications against
the BPS Advantage database using tools supplied by Ridge Local Affiliate, Sybase or other third parties. 
  

	XVII.	SEVERABILITY 

 If any
provision of this Schedule should be held invalid or unenforceable in a court of law in any jurisdiction, such invalidity or unenforceability shall not affect the enforceability of this Schedule or any other provision thereof. In addition, the
parties agree that it is their intention that such provision shall be construed in a manner designed to effectuate the purposes of this Schedule to the fullest extent enforceable under applicable Law. The parties further agree that such ruling shall
not affect the construction of that provision or any other of the provisions in any other jurisdiction. 
  

	XVIII.	DISASTER RECOVERY; BUSINESS CONTINUITY 

Ridge Local Affiliate shall maintain the disaster recovery and business continuity services as set forth in Attachment E.
Attachment E is hereby incorporated in and made an integral part of this Schedule. 
  

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	XIX.	[****] 

 [****].

  

	XX.	ACQUIRED CORRESPONDENTS 

In addition, except for services for finance, conversions, legal/compliance, sales/relationship management and risk management (which
services shall be provided by Client Local Affiliate), following the Schedule Effective Date and until such time that Client Local Affiliate is completely converted to the Broadridge platform, Ridge Local Affiliate shall provide all Services to
Client Local Affiliate hereunder in a substantially similar manner and in accordance with the Service Levels that Ridge Local Affiliate provided with respect to the Acquired Correspondents prior to the Schedule Effective Date. 

 

	XXI.	CHANGES TO THE MASTER SERVICES AGREEMENT 

The following general changes shall be made to the Master Services Agreement when incorporating the terms and conditions of the Master
Services Agreement into this Schedule: NONE. 
 *    *    *    *

  
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 IN WITNESS WHEREOF the parties have executed this Schedule as of the date first written
above. 
  

			
	RIDGE CLEARING & OUTSOURCING SOLUTIONS, INC.
		
	By:	 	 /s/Joseph Barra

		 	 Name: Joseph Barra

		 	 Title: President

	
	PENSON FINANCIAL SERVICES, INC.
		
	By:	 	 /s/ Daniel P. Son

		 	 Name: Daniel P. Son

		 	 Title: Vice Chairman

  

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 ATTACHMENT A 

DESCRIPTION OF OUTSOURCED SERVICES 

Ridge Local Affiliate shall provide the following services to Client Local Affiliate in connection with this Schedule: 

 

	(1)	All of the operational support services and functions with respect to the business transferred to Client Local Affiliate under the Asset Purchase Agreement, as set
forth in Appendix 1 (the “Transferred Operations Support Services”). 

  

	(2)	All of the operational support services and functions set forth in Appendix 1-A during the period following the Schedule Effective Date and until such time that
Client Local Affiliate is completely converted to the Broadridge platform (the “Transitional Transferred Operations Support Services”). 

 

	(3)	The Ridge technology and processing platform, including, without limitation, the services and functions set forth in Appendix 2 (the “Transferred
Technology Services”). 

  

	(4)	Subject to the last paragraph of this Attachment, the operational support services and functions with respect to Client Local Affiliate’s business immediately
prior to the Schedule Effective Date as set forth in Appendix 3 (the “Existing Operations Support Services”). 

  

	(5)	Subject to the last paragraph of this Attachment, all of the technology and processing services and functions that Client Local Affiliate outsourced to third parties
immediately prior to the Effective Date (provided, however, that Ridge Local Affiliate has the right to exclude certain technologies, processing services or functions in the event Ridge Local Affiliate does not offer a comparable technology,
processing service or function), including, without limitation, the services provided by the third parties set forth in Appendix 4 (the “Existing Technology Services”). 

 

	(6)	The additional technology services and functions necessary to support the Transferred Operations Support Services and Transferred Technology Services, as set forth in
Appendix 5 (the “Additional Technology Services”). 

 The parties agree to work in good faith to
revise Appendix 3 and Appendix 4 prior to the Closing Date in order to add or remove in-scope Existing Operations Support Services and Existing Technology Services as deemed necessary and appropriate by Client in Client’s
sole discretion; provided, however, that any such changes to Appendix 3 and Appendix 4 shall not in any event cause a reduction in the Base Fee with respect to the Existing Operations Support Services plus the Existing Technology
Services (as described in Section I(2) of Attachment B-1) below U.S. [****] in the aggregate for the Existing Operations Support Services and the Existing Technology Services provided under this Schedule and the “Service Bureau and
Operations Support Services” Schedules for Canada and the United Kingdom. 
  

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 Appendix 1 to Attachment A 

Transferred Operations Support Services 

[****] 
  

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 Appendix 1-A to Attachment A 

Transitional Transferred Operations Support Services 

[****] 
  

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 Appendix 2 to Attachment A 

Transferred Technology Services 

[****] 
  

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 Appendix 3 to Attachment A 

Existing Operations Support Services – U.S. 

[****] 
  

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 Appendix 4 to Attachment A 

Existing Technology Services – U.S. 

[****] 
  

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 Appendix 5 to Attachment A 

Additional Technology Services 

[****] 
  

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 ATTACHMENT B 

Service Bureau and Operations Support Services Price Schedule 

 

	1.	Charges for the Services. The charges for the Services are set forth in Attachment B-1. 

 

	2.	Changes to Schedule B. The parties agree, subject to the Change Control Procedures set forth in Exhibit C to the Master Services Agreement, that any
changes that the Client Local Affiliate makes from time to time that result in the addition or removal of specific Service functions (including, without limitation, material changes required by Applicable Law or by a regulatory body) may require
changes to the charges payable by Client Local Affiliate. 

  

	3.	Postage. Notwithstanding anything herein to the contrary, postage shall be billed to Client Local Affiliate on a pass-through basis. 

 

	4.	Customization. Any customization work shall be provided pursuant to a rate schedule to be agreed upon by the parties no later than the Closing Date.

  
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 Attachment B-1 

Base Fee and Tiered Fees 

[****] 
  

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 Attachment B-2 

Third Party Providers 

[****] 
  

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 ATTACHMENT C 

SERVICE LEVELS 
  

	I.	INTRODUCTION 

 In order to maintain the
specified Service Levels for the Services set forth in Attachment C-1, the parties have agreed that certain defined Service Levels (the “SLAs”) are to be established and measured as set forth below. SLAs related
to the Services shall be established by the parties no later than [****] after the Schedule Effective Date. New Service Levels may be added during the Schedule Term, and existing Service Levels may be modified or eliminated, by the mutual agreement
of the parties from time to time. 
  

	II.	OPERATIONS 

  

	A.	General 

 Commencing on the Live Date and
subject to this Section II, Ridge Local Affiliate’s provision of the Services shall be in accordance with the Service Levels identified in Attachment C-1. 

The Service Levels set forth in Attachment C-1 shall (i) meet or exceed in all material respects the service levels required under the
Acquired Correspondents’ agreements transferred to Client Local Affiliate under the Asset Purchase Agreement and (ii) be at least at levels that will enable Client Local Affiliate to avoid breaches of any agreements with the Client
Correspondents existing as of the date hereof. 
 B. Reports; Performance Review; Corrective Action 

(a) Ridge Local Affiliate shall, wherever the parties agree to use objective data, utilize continuous measurement and data capture and
shall prepare a reasonably detailed report with respect to the Service Levels) (each, a “Service Level Report”). Service Level Reports shall be provided to Client Local Affiliate on a monthly basis. 

(b) Ridge Local Affiliate and Client Local Affiliate shall meet at least quarterly to review Ridge Local Affiliate’s performance
with respect to the Services during the immediately preceding quarterly period and the Service Level Reports connected therewith, and, with respect to Ridge Local Affiliate’s failure to achieve any Service Levels, the parties shall
(1) jointly formulate a formal action plan for corrective action, as applicable, and (2) agree upon the appropriate consequences if such action plan does not prevent subsequent instances of the same Service Level failures. 

(c) The specific criteria for each Service Level shall be detailed in the applicable SLA set forth in Attachment C-1.
Prior to Live Date, the parties shall modify such Service Levels, create such additional Service Levels, or modify the method used to measure performance (including, without limitation, appropriate objective data, quality control process or other
methods) as the parties mutually agree in writing. 
 (d) [****], the parties shall measure actual Ridge Local Affiliate
performance levels in the manner previously agreed to by the parties, and review the method used to measure performance and such performance. The parties shall discuss in good faith any appropriate modifications to the method used to measure
performance, the Service Levels or any remedial steps required to be taken by Ridge Local Affiliate in light of such review and shall, at least once annually during the Schedule Term, engage in such good faith discussions to determine any
appropriate modifications to the method used to measure performance, the Service Levels or any remedial steps required to be taken by Ridge Local Affiliate in light of such review. 

 

	C.	Changes to the Service Levels 

(a) The parties acknowledge that the Service Levels shall be subject to continuous improvement and that changing circumstances may
necessitate modifications to service, expectations and responsibilities. Accordingly, the parties shall, at least once annually during the Schedule Term, engage in good faith discussions to determine if (i) any modifications to the existing
Service Levels are necessary or advisable, (ii) any existing Service Levels should be deleted and (iii) any new Service Levels should be added. 
  

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 (b) For all new Service Levels, the parties shall mutually agree upon the Service Level
targets and the methodology and tools used to measure performance. The parties shall mutually agree on any Service Level target based on [****] of measurements of the applicable Service Level utilizing the agreed upon methodology and tools. Any
dispute regarding the establishment of such Service Level targets or the methodology and tools used to measure performance shall be resolved by the Executive Governance Committee. In addition, the Executive Governance Committee shall review Service
Level targets and performance and shall give weight to Client Local Affiliate’s recommendations for continuous improvement of Service Level targets, based on, among other things, advances in technology. 

 

	D	Service Level Credits 

 The amount of
Service Level Credits credited to Client Local Affiliate with respect to all Category 1 service level failures occurring in a single month shall not exceed, in total, [****] of the monthly charges payable in connection with the Schedule for that
month (the “Service Level Credit Pool – Category 1”). The amount of Service Level Credits credited to Client Local Affiliate with respect to all other service level failures occurring in a single month shall not exceed,
in total, [****] of the monthly charges payable in connection with the Schedule for that month (the “Service Level Credit Pool – All Other Categories”, and together with the Services Level Credit Pool – Category 1,
the “Service Level Credit Pools”). The Service Level Credit Pools shall be allocated to various Service Levels as set forth in Attachment C-1. The parties shall, at least once annually during the Schedule Term, engage
in good faith discussions to determine if any modification to the allocation of the Service Level Credit Pools set forth in Attachment C-1 are necessary or advisable. 

 

	E.	Root-Cause Analysis 

 In the event Ridge
Local Affiliate has a Service Level failure that is not insignificant, Ridge Local Affiliate shall perform a root-cause analysis as described in Section 1.C of the Master Services Agreement. 

 

	F.	Excuse 

 Ridge Local Affiliate shall be
excused from performing any Service or obligation hereunder, including, without limitation, the attainment of any Service Level, if and to the extent Ridge Local Affiliate’s failure to perform such Service or obligation is caused by Client
Local Affiliate’s or its agents’ act or omission, including, without limitation, (a) Client Local Affiliate providing incomplete or inaccurate data, specifications or requirements; and (b) failures, errors or defects in
facilities, equipment, materials or other resources provided by Client Local Affiliate, including, without limitation, telecommunications, hardware, infrastructure and network connectivity. 

 
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 Attachment C-1 

SLAs 
 The parties shall
include a Service Level for development work no later than [****] after the Schedule Effective Date. 
  

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 ATTACHMENT D 

No Warranty and Limitation on Liability Provisions 

Required by Users of Third Party Data 

No Warranties 
 EXCEPT IN CONNECTION WITH
CONTRACTS OF THIRD PARTY DATA SUPPLIERS WITHOUT CONTRACTUAL RESTRICTIONS SIMILAR TO THOSE BELOW, NO THIRD PARTY DATA SUPPLIERS MAKE ANY WARRANTIES, EXPRESS OR IMPLIED, AS TO MERCHANTABILITY, FITNESS OR ANY OTHER MATTER. 

Limitation on Liability 
 (a) No third
party data supplier shall have any liability to Client Local Affiliate, or any other third party, for errors, omissions or malfunctions in the services provided by such third party data supplier, other than the obligation to endeavor, upon receipt
of notice from Client Local Affiliate, to correct a malfunction, error, or omission in any such services. 
 (b) Client Local Affiliate
acknowledges that the services provided by any third party data supplier are intended for use as an aid to institutional investors, registered brokers or professionals of similar sophistication in making informed judgments concerning securities.

 Client Local Affiliate accepts responsibility for, and acknowledges it exercises its own independent judgment in, its selection of any of the
services provided by any third party data supplier, its selection of the use or intended use of such, and any results obtained. Nothing contained herein shall be deemed to be a waiver of any rights existing under applicable law for the protection of
investors. 
 (c) Client Local Affiliate shall indemnify Ridge Local Affiliate’s third party data suppliers (including, without limitation,
FT Interactive) against and hold such third party data suppliers harmless from any and all losses, damages, liability, costs, including, without limitation, attorney’s fees, resulting directly or indirectly from any claim or demand against such
third party data suppliers by a third party arising out of or related to the accuracy or completeness of any services received by Client Local Affiliate, or any data, information, service, report, analysis or publication derived therefrom. No third
party data supplier shall be liable for any claim or demand against Client Local Affiliate by a third party. 
 (d) As between a third party
data supplier and Client Local Affiliate, neither party shall be liable for (i) any special, indirect or consequential damages (even if advised of the possibility of such), (ii) any delay by reason of circumstances beyond its control,
including, without limitation, acts of civil or military authority, national emergencies, labor difficulties, fire, mechanical breakdown, flood or catastrophe, acts of God, insurrection, war, riots, or failure beyond its control of transportation or
power supply, or (iii) any claim that arose more than one (1) year prior to the institution of suit therefor. 
  

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 ATTACHMENT E 

DISASTER RECOVERY; BUSINESS CONTINUITY 

To be agreed upon by the parties within [****] after the Schedule Effective Date. 

 
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 ATTACHMENT F 

REPORTS 
 To be agreed
upon by the parties within [****] after the Schedule Effective Date. 
  

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 ATTACHMENT G 

RECORD RETENTION POLICY 

To be agreed upon by the parties within [****] after the Schedule Effective Date. 

 
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 NOTE: PORTIONS OF THIS AGREEMENT ARE THE SUBJECT OF A 

CONFIDENTIAL TREATMENT REQUEST BY THE REGISTRANT TO THE 

SECURITIES AND EXCHANGE COMMISSION. SUCH PORTIONS HAVE BEEN 

REDACTED AND ARE MARKED WITH A “[****]” IN PLACE OF THE REDACTED LANGUAGE. 

Schedule A (Canada) 

SERVICE BUREAU AND OPERATIONS SUPPORT SERVICES SCHEDULE 

To The Master Services Agreement 

between 

BROADRIDGE FINANCIAL SOLUTIONS, INC. 

and 

PENSON WORLDWIDE, INC. 

This schedule (the “Schedule”), dated as of November 2, 2009 (the “Schedule Effective Date”),
between Broadridge Financial Solutions (Canada) Inc. (“Ridge Local Affiliate”) and Penson Financial Services Canada Inc. (“Client Local Affiliate”), to the Master Services Agreement, dated as of the
date hereof, between Broadridge Financial Solutions, Inc. and Penson Worldwide, Inc., sets forth the terms and conditions, in addition to the terms and conditions in the Master Services Agreement, under which Ridge Local Affiliate will provide
service bureau and operations support services to Client Local Affiliate to assist and support Client Local Affiliate in functioning as a clearing firm. Each of Client Local Affiliate and Ridge Local Affiliate agrees to comply with and fulfill all
terms and conditions applicable to it under the Master Services Agreement. Simultaneously with the execution of this Schedule, this Schedule supersedes and replaces the Master Services Agreement, dated June 30, 2009, between Penson Financial
Services Canada Inc. and Broadridge Financial Services (Canada) Inc. and the BPS Canadian Services Bureau Schedule, dated June 30, 2009, between Penson Financial Services Canada Inc. and Broadridge Financial Services (Canada) Inc. (the
“Existing Canadian Agreement”). 
 Unless otherwise defined herein, all capitalized terms shall have the meanings given
to them in the Master Services Agreement. In the event of a conflict between the terms and conditions of this Schedule and the terms and conditions of the Master Services Agreement, the terms and conditions of this Schedule shall govern. The term
“Client Local Affiliate” as used in this Schedule includes all Affiliates, divisions and subsidiaries of Client Local Affiliate. Except where otherwise indicated, all references in this Schedule to Sections or Attachments are
to Sections to, and Attachments of, this Schedule. The term “party” as used in this Schedule means Ridge Local Affiliate or Client Local Affiliate, as applicable. The term “parties” as used in this Schedule means Ridge Local
Affiliate and Client Local Affiliate. 
  

	I.	SUBMISSION OF SCHEDULE 

A. During the Schedule Term, Client Local Affiliate and Ridge Local Affiliate shall each be subject, to the extent applicable to such
party, to the provisions of federal, state and local laws, rules and regulations and the constitution, by-laws, rules, regulations and stated policies of the Investment Industry Regulatory Organization of Canada (“IIROC”),
the Canadian Investors Protection Fund (“CIPF”), the Ontario Securities Commission (“OSC”), the Autorité des Marchés Financiers (“AMF”), the Montréal
Exchange (“ME”) and any other securities exchange, commission, association, regulatory or self-regulatory organization (“SRO”) vested with authority over Client Local Affiliate or Ridge Local Affiliate
(to the extent applicable to a party, the “Laws and Rules”). Each party shall perform its obligations under this Schedule in accordance with the Laws and Rules. 

B. Client Local Affiliate shall submit this Schedule to the IIROC, or any other SRO, as required, on behalf of itself and Ridge Local
Affiliate for review and, if necessary, approval. This Schedule shall not 
  

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become effective until the date upon which all necessary SRO approvals as to both parties are received (the “Approval Date”); provided, however, that if no SRO approvals
are required for this Schedule to become effective, this Schedule shall become effective as of the Schedule Effective Date. In the event that any such approval is required and this Schedule is not so approved, the parties shall negotiate in good
faith to amend this Schedule as may be needed to obtain such approval. 
 C. Ridge Local Affiliate acknowledges that Client Local
Affiliate has regulatory responsibilities as a clearing firm, including, among other things, a duty to supervise the types of business in which it engages. To assist Client Local Affiliate in satisfying such obligations, Ridge Local Affiliate agrees
to provide, at the reasonable request of Client Local Affiliate, performance reports with respect to the Services and full access to relevant books and records, information and Ridge Local Affiliate personnel engaged in providing the Services. Ridge
Local Affiliate acknowledges that Client Local Affiliate is required, from time to time, to prepare and file reports with the IIROC, CIPF and other SROs or Governmental Authorities. To assist Client Local Affiliate in satisfying such requirements,
Ridge Local Affiliate agrees to provide Client Local Affiliate with information in its possession that is necessary for Client Local Affiliate to prepare and file any such reports. 

D. This Schedule is not intended, and shall not be construed, to limit, reduce, or otherwise change any regulatory, contractual or other
obligation that Client Local Affiliate owes to a correspondent or to its customers. 
  

	II.	SERVICES TO BE PERFORMED BY RIDGE LOCAL AFFILIATE 

A. Subject to the second paragraph of Section 16.G of the Master Services Agreement and Section I.B, Ridge Local Affiliate will
perform the services, functions and responsibilities described in Attachment A in accordance with the terms and conditions of this Schedule and the Master Services Agreement. Attachment A is hereby incorporated in and made an
integral part of this Schedule. Any additional services to be performed by Ridge Local Affiliate shall be subject to the written agreement of the parties. 

B. Intentionally left blank. 

C. This Schedule and the Master Services Agreement are intended to create an exclusive arrangement between Client Local Affiliate and
Ridge Local Affiliate with respect to the Services utilized by Client Local Affiliate as of the applicable Live Date in the Territory for which a pricing schedule is included in this Schedule except (A) as otherwise set forth in this Schedule
and the Master Services Agreement and (B) in the event that (i) Client Local Affiliate or a Customer of Client Local Affiliate is prohibited by Law from receiving Services from Ridge Local Affiliate in the Territory, (ii) Client Local
Affiliate obtains a business and in connection therewith is contractually required to use an alternative system (and not the Services) as a condition of obtaining such business or (iii) during any time period that Ridge Local Affiliate is in
material breach of this Schedule and has failed to cure such breach within thirty (30) days following notice from Client Local Affiliate specifying the nature of such breach in reasonable detail. 

 

	III.	CONVERSION 

 A.
Conversion of Client Correspondents. In connection with the conversion of the correspondents of Client Local Affiliate (“Client Correspondents”) to Ridge Local Affiliate, the parties agree to the following: 

 

	 	(i)	 Client Local Affiliate shall provide Ridge Local Affiliate with Client Local Affiliate’s requirements with respect to the Client Local Affiliate
files and Service Levels applicable to the Client Correspondents (the “Client Requirements”) after the Schedule Effective Date. The parties shall enter into a statement of work (the “Conversion SOW”)
that will describe Client Local Affiliate’s migration to Ridge Local Affiliate’s service delivery and technology platform no later than [****] after Ridge Local Affiliate’s receipt of the Client Requirements. The Conversion SOW will
define the Target Live Date for each Service 

  

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and describe specific implementation activities and procedures required to migrate Client Correspondents to the Ridge Local Affiliate, including, without limitation, development, implementation
and integration of Software and other software and development and integration of correspondent clearing functionalities, reporting and monitoring systems and such other services as may be set forth in the Conversion SOW (the “Conversion
Services”). Without limiting the generality of the foregoing, the Conversion SOW shall (1) specify that Ridge Local Affiliate will convert the applicable Client Local Affiliate files to make them compatible with the Services and
the other services, as may be required in respect of the migration of Client Local Affiliate’s Customers to the Services and (2) describe the development and integration of correspondent clearing functionalities by Ridge Local Affiliate.
The Conversion Services shall be provided at no charge to Client Local Affiliate by Ridge Local Affiliate. 

  

	 	(ii)	The parties shall cooperate and provide each other with all information and assistance reasonably required in connection with the Conversion Services. Each party will
assign a liaison person to assist and cooperate with the other party in connection with the Conversion Services (which person may be replaced by a party at its sole discretion from time to time by way of notice to the other party).

  

	IV.	TERM OF SCHEDULE 

 A.
Schedule Term. The term of this Schedule (the “Schedule Term”) shall begin on the Schedule Effective Date and shall continue for a period of ten (10) years after the last Live Date with respect to the Schedules
under the Master Services Agreement for the U.S., U.K. or Canada (for clarity, the Schedule Term of the Schedules under the Master Services Agreement for the U.S., U.K. and Canada shall be coterminous with each other); provided, however, that this
Schedule’s effective date is subject to its review and approval by the applicable regulatory agency as described in Section I.A. The “Live Date” for a Service is defined as the first date upon which Ridge Local
Affiliate processes trades utilizing the applicable Service on behalf of Client Correspondents in accordance with the provisions and requirements of this Schedule and the Master Services Agreement (excluding any beta testing or similar testing of
the system). The Schedule Term shall automatically extend following its scheduled expiration date unless (1) either party gives notice of termination at least one hundred eighty (180) days prior to the scheduled expiration date, in which
case the Schedule Term shall expire on the scheduled expiration date or (2) either party gives notice of termination at any time after the date that is one hundred eighty (180) days prior to the scheduled expiration date of the Schedule
Term (including any time beyond the scheduled expiration date), in which case the Schedule Term shall expire on the date specified in such notice of termination, which date must be at least one hundred eighty (180) days after the date of such
notice. 
 B. Client Local Affiliate’s Termination. 

 

	 	(i)	Client Local Affiliate may terminate this Schedule for convenience upon one hundred twenty (120) days notice to Ridge Local Affiliate. In the event of any such
termination or in the event Ridge terminates this Schedule pursuant to Section 18.B of the Master Services Agreement, Client Local Affiliate shall pay to Ridge Local Affiliate prior to the effective date of such termination, as liquidated
damages and not as a penalty, an amount equal to [****] of the Base Fee (but not as increased or decreased in connection with Section III of Attachment B-1) that Client Local Affiliate would otherwise be obligated to pay under this
Schedule if this Schedule had not been terminated, from and after the effective date of termination through the end of this Schedule Term. 

  

	 	(ii)	Client Local Affiliate may terminate this Schedule in the event of a Service Level Termination Event upon notice to Ridge Local Affiliate, and, in such event, no
termination fees or termination charges of any type shall be payable by Client Local Affiliate to Ridge Local Affiliate. 

  

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 No later than [****] after the Schedule Effective Date, the parties shall define a
Service Level Termination Event. 
  

	 	(iii)	Client Local Affiliate may terminate this Schedule for a Change in Control of Client Local Affiliate or any Affiliate that directly or indirectly Controls such Client
Local Affiliate (the “Applicable Client Entity”) upon [****] notice to Ridge Local Affiliate. In the event of any such termination, Client Local Affiliate shall pay to Ridge Local Affiliate prior to the effective date of such
termination, as liquidated damages and not as a penalty, an amount equal to the lesser of (a) [****] of the Base Fee (but not as increased or decreased in connection with Section III of Attachment B-1) that Client Local
Affiliate would otherwise be obligated to pay under this Schedule if this Schedule had not been terminated, from and after the effective date of termination through the end of the Schedule Term and (b) U.S. [****]. 

“Change in Control” shall mean the (a) consolidation or merger of an Applicable Client Entity with or into
any entity (other than the consolidation or merger of an Applicable Client Entity with a third party entity in which such Applicable Client Entity is the surviving entity; provided, however, that the holders of the then-outstanding voting securities
of such Applicable Client Entity prior to any such consolidation or merger hold securities that represent immediately after such consolidation or merger greater than fifty percent (50%) of the combined voting power of the then-outstanding
voting securities of such Applicable Client Entity thereafter), (b) sale, transfer or other disposition of all or substantially all of the assets of an Applicable Client Entity or (c) acquisition by any individual, entity, or group of
individuals or entities acting in concert, of beneficial ownership of fifty percent (50%) or more (or such lesser percentage that constitutes the power to direct or cause the direction of the management and policies of an Applicable Client
Entity) of the outstanding voting securities or other ownership interests of an Applicable Client Entity. 
 C. Failure To Go
Live. If the Services in connection with the Client Correspondents do not go live by the Target Live Date set forth in the Conversion SOW or any other date agreed to by the parties as set forth in writing, through no fault of Ridge Local
Affiliate (or its subcontractors) or a Force Majeure Event (as defined in the Master Services Agreement) or a delay in obtaining an approval described in Section I.B, then Client Local Affiliate shall pay to Ridge Local Affiliate, as liquidated
damages and not as a penalty, an amount equal to a percentage of the Base Fee that Client Local Affiliate would otherwise be obligated to pay if the Services had commenced on the Target Live Date as follows (each, a “Failure To Go Live
Monthly Payment”): (i) if the Services do not go live by the [****] following the Target Live Date, [****] of the Base Fee for such [****]; (ii) if the Services do not go live by the [****] following the Target Live Date,
[****] of the Base Fee for such [****]; (iii) if the Services do not go live by the [****] following the Target Live Date, [****] of the Base Fee for such [****]; (iv) if the Services do not go live by the [****] following the Target Live
Date, [****] of the Base Fee for such [****]; (v) if the Services do not go live by the [****] following the Target Live Date, [****] of the Base Fee for such [****]; and (vi) if the Services do not go live by the [****] following the
Target Live Date, [****] of the Base Fee for such [****] and for each [****] thereafter until the Services go live. 
 D.
Early Go Live. If the Services go live prior to the Target Live Date or any other date agreed to by the parties as set forth in writing, then the Base Fees with respect to the Services shall be reduced by an amount equal to a percentage of
the Base Fee for each [****] until the Target Live Date as follows: (i) if the Services go live [****] or more prior to the Target Live Date, [****]of the Base Fee for such [****] and for each [****] prior to such [****]; (ii) if the
Services go live [****] prior to the Target Live Date, [****] of the Base Fee for such [****]; (iii) if the Services go live [****] prior to the Target Live Date, [****] of the Base Fee for such [****]; (iv) if the Services go live [****]
prior to the Target Live Date, [****] of the Base Fee for such [****]; (v) if the Services go live [****] prior to the Target Live Date, [****] of the Base Fee for such [****]; and (vi) if the Services go live [****] prior to the Target
Live Date, [****] of the Base Fee for such [****]. 
  
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Financial Solutions (Canada) Inc. 
  

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 E. Failure to Deliver. If Ridge Local Affiliate fails to deliver the Services
(compliant with the Statement of Work and specifications) by the Target Live Date, through no fault of Client Local Affiliate (or its subcontractors) or a Force Majeure Event (as defined in the Master Services Agreement) or a delay in obtaining an
approval described in Section I.B (a “Failure to Deliver”), then Ridge Local Affiliate shall pay Client Local Affiliate, as liquidated damages and not as a penalty, an amount equal to a percentage of the amount
Client Local Affiliate pays in connection with (a) the Client Local Affiliate personnel performing the operational support services described in Appendix 3 and (b) the services Client Local Affiliate outsourced to third parties,
including, without limitation, as set forth in Appendix 4, in each case, on a [****] basis until such time as Ridge Local Affiliate delivers the Services (compliant with the Statement of Work and specifications); provided, however, that such
amount Client Local Affiliate pays is consistent with amounts Client Local Affiliate historically paid for such services, including any non-recurring expense or cost (collectively, the “Historical Amount”), as follows:
(i) if the Services do not go live by the [****] following the Target Live Date, [****] of the Historical Amount; (ii) if the Services do not go live by the [****] following the Target Live Date, [****] of the Historical Amount for such
[****]; and (iii) if the Services do not go live by the [****] following the Target Live Date, [****] of the Historical Amount for such [****] and for each [****] thereafter. 

If a Failure to Deliver requires Client Local Affiliate to extend or renew any Disclosed Agreement (as defined below), then:
(1) Client Local Affiliate shall use commercially reasonable efforts to obtain a month-to-month extension of such Disclosed Agreement and, if it is unable to obtain a month-to-month extension, promptly notify Ridge Local Affiliate of its
inability to obtain a month-to-month extension and use commercially reasonable efforts to minimize any early termination fees due under such extension or renewal (whether by contractual right or continuing such Disclosed Agreement past the
expiration date); (2) during the period from and after the first day of such extension or renewal (whether by contractual right or continuing such Disclosed Agreement past the expiration date) and until and including the final Live Date with
respect to the Services applicable to such Disclosed Agreement, Ridge Local Affiliate shall be responsible for any incremental increase in the fees due under such Disclosed Agreement as a result of such extension or renewal (in addition to the
Historical Amounts calculated in accordance with the first paragraph of this Section IV.E); and (3) from and after the final Live Date with respect to the Services applicable to such Disclosed Agreement, Ridge Local Affiliate shall be
responsible for any early termination fees, fees for services and other amounts payable under such Disclosed Agreement. A “Disclosed Agreement” is defined as those agreements between Client Local Affiliate and a third-party
service provider that Client Local Affiliate discloses to Ridge Local Affiliate, including the applicable termination date and extension options of each such agreement, prior to the parties’ execution of the Conversion SOW. 

 

	V.	CHARGES 

  

	 	A.	The fees for the Services are set forth in Attachment B hereto. Attachment B is hereby incorporated in and made an integral part of this Schedule.
Unless otherwise indicated, all fees and charges set forth in Attachment B are in Canadian dollars. Notwithstanding the immediately preceding sentence, for purposes of calculating the aggregate amounts in connection with the last
paragraph in Attachment A and paragraph six of Section III to Attachment B-1, such calculation shall be in U.S. dollars using the exchange rate published in the Wall Street Journal on the Schedule Effective Date.

  

	 	B.	The monthly charge for the Services shall be equal to 1/12th of the Base Fee plus any Tiered Fees, as set forth in Attachment B, and shall be payable
commencing on the Live Date for the relevant Services. The monthly charge shall not be increased at anytime during the Schedule Term, except (i) as set forth in Attachment B and (ii) Ridge Local Affiliate shall have the right
to pass through increases, and shall pass through decreases, relating to the charges of third party service providers, including, without limitation, communication and other third party service provider charges (excluding charges of Ridge Local
Affiliates) and federal, provincial, and local governmental fees, to the extent that the parties imposing such fees have increased or decreased the same and provided any such increases shall be passed through only to the extent they are passed
through to all Ridge Local Affiliate customers receiving the Services. 

  

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	 	C.	[****]. 

  

	VI.	NO PARTNERSHIP OR AGENCY; NO SPECIAL TREATMENT 

Neither this Schedule nor any activity hereunder shall create a general or limited partnership, association, joint venture, branch or
agency relationship between Client Local Affiliate and Ridge Local Affiliate. Client Local Affiliate shall not hold itself out as an agent of Ridge Local Affiliate or of any subsidiary or company controlled directly or indirectly by or affiliated
with Ridge Local Affiliate, nor shall it employ Ridge Local Affiliate’s name in any manner that creates the impression that the relationship created or intended between them is anything other than that of service provider and clearing broker.
Except as reasonably necessary to provide the Services, Ridge Local Affiliate shall not hold itself out as an agent of Client Local Affiliate or of any subsidiary or company controlled directly or indirectly by or affiliated with Client Local
Affiliate, nor shall it employ Client Local Affiliate’s name in any manner that creates the impression that the relationship created or intended between them is anything other than that of service provider and clearing broker. Neither party
shall, without the prior approval of the other party, place any advertisement in any newspaper, publication, periodical or any other media if such advertisement in any manner makes reference to the other party or to the arrangements contemplated by
this Schedule. Neither party shall, without the prior approval of the other party (which approval shall not be unreasonably withheld), furnish any link to the website(s) of the other party or its Affiliates. For the avoidance of doubt,
nothing herein shall prevent the disclosure of (i) Ridge Local Affiliate’s name or the Services to be performed under the Master Services Agreement or this Schedule to any of Client Local Affiliate’s regulators or customers or
(ii) a party’s name or the services it offers to the extent necessary to carry out each party’s obligations under the Master Services Agreement, this Schedule or Marketing Agreement. 

Nothing herein shall cause Ridge Local Affiliate to be construed as or deemed to be a fiduciary with respect to Client Local Affiliate,
any correspondent of Client Local Affiliate, or any customer of Client Local Affiliate or its correspondents. 
 This Schedule is
not intended, nor shall it be construed, to bestow upon either party any special treatment regarding any other arrangements, agreements or understandings that exist or may hereafter exist between the parties or their affiliates. Neither party shall
have any obligation to deal with the other in any capacity other than as set forth in this Schedule. 
  

	VII.	SERVICE LEVELS 

 Ridge
Local Affiliate shall provide the Services in accordance with the terms and conditions set forth in Section 1.C of the Master Services Agreement and with respect to Service Levels set forth in Attachment C hereto and any other
Service Level agreement that may be agreed between the parties from time to time with respect to the Territory. Attachment C is hereby incorporated in and made an integral part of this Schedule. Ridge Local Affiliate agrees that the Service
Levels set forth in Attachment C shall be at least as stringent as any service levels provided by Ridge Local Affiliate to its other clients in Canada. 
  

	VIII.	EXCHANGE OF INFORMATION 

Throughout the Schedule Term, each party shall promptly supply the other with information in its possession necessary or appropriate to
enable the other party properly to perform its obligations under this Schedule and as a registered broker-dealer. 
  

	IX.	RECORDS RETENTION 

 The
information that Ridge Local Affiliate generates on behalf of Client Local Affiliate are the books and records of Client Local Affiliate. Notwithstanding anything to the contrary in the Master Services Agreement, Ridge Local Affiliate will maintain
and preserve such information in accordance with the agreed-upon record retention policy set forth in Attachment G and the Laws and Rules. Any additional retention period(s) shall be directed by Client Local Affiliate and shall be
subject to the mutual written agreement of the parties. Attachment G is hereby incorporated in and made an integral part of this Schedule. 
  

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	X.	GOVERNANCE 

 Ridge Local
Affiliate and Client Local Affiliate shall each appoint at least two (2) senior level managers to a joint committee that shall meet no less than monthly to address issues that may arise in connection with the performance of the Services. In
addition to the foregoing but without prejudice to the obligations of the parties under this Schedule or the Master Services Agreement, the parties have agreed to the detailed governance provisions set forth in Exhibit C to the Master
Services Agreement. 
 Ridge Local Affiliate shall provide to Client Local Affiliate the reports set forth in
Attachment F. Attachment F is hereby incorporated in and made an integral part of this Schedule. 
  

	XI.	TAPE RECORDING 

 Unless
otherwise prohibited by applicable Law, the parties shall have the right to record telephone conversations between themselves, and waive any right to further notice of any such recording. The parties agree to make such recordings available to each
other upon reasonable notice. 
  

	XII.	THIRD PARTY VENDOR SERVICES 

Client Local Affiliate may contract directly with and in such case will be responsible for (i) complying with the terms and
conditions of use relating to additional third party products or services not affiliated with Ridge Local Affiliate set forth in Attachment A that it elects to receive or access through Ridge Local Affiliate from time to time and
(ii) the costs relating thereto as applicable, other than those third party products or services integrated into the Services or provided as part of the Services. If third party products or services, including, without limitation, data, are
provided by or through Ridge Local Affiliate to Client Local Affiliate or integrated into the Services or provided as part of the Services, Ridge Local Affiliate shall obtain and warrants and represents that it has the full right, title or license
required to provide such product or service to Client Local Affiliate. Additionally, Ridge Local Affiliate hereby grants to Client Local Affiliate and customers of Client Local Affiliate the right to use such product or service during, and for the
purposes of, and in accordance with, the Master Services Agreement and this Schedule. 
 Client Local Affiliate shall be
responsible for complying with the terms and conditions of use (to the extent such terms and conditions of use are provided by Ridge Local Affiliate to Client Local Affiliate) relating to the third party products or services that it receives or
accesses through Ridge Local Affiliate and the costs relating thereto. If (i) any third party products or services, or Ridge-owned products or services, provided by Ridge Local Affiliate become unavailable and require replacement,
(ii) Ridge Local Affiliate, upon notice to Client Local Affiliate (and upon Client Local Affiliate’s consent, if and to the extent such consent is required by Law), elects to replace any third party products or services or Ridge-owned
products or services provided by Ridge Local Affiliate with new or different third party products or services or Ridge-owned products or services or (iii) at least fifty percent (50%) of Ridge Local Affiliate’s clients utilizing such
products or services in the Territory request such replacement, in each case, Ridge Local Affiliate shall replace such products or services with equivalent or enhanced products or services without increased cost. 

Client Local Affiliate may contract directly with any vendor or subcontractor of Ridge Local Affiliate for the services provided by such
vendor or subcontractor through Ridge Local Affiliate; provided, however, that (a) such contract does not violate Ridge Local Affiliate’s obligations to such vendor or subcontractor and (b) Client Local Affiliate shall be responsible
for the cost of any transition services (including, without limitation, any incremental costs resulting from the transition) in connection therewith. 
  

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	XIII.	OBLIGATIONS FOR RECEIPT OF DATA 

Client Local Affiliate may be using data set forth in Attachment D hereto provided by FT Interactive Data Corporation
(“FT Interactive”). In such case, Client Local Affiliate agrees to the provisions attached hereto as Attachment D relating to its use of FT Interactive Data Corporation data in respect of the Services.
Attachment D is hereby incorporated in and made an integral part of this Schedule. Client Local Affiliate shall be under no obligation to receive FT Interactive Data Corporation data through Ridge Local Affiliate and to such extent, the
previous sentence shall not apply and Ridge Local Affiliate shall not be responsible for the provision of such services to Client Local Affiliate in such case or have any liability for such non-Ridge Local Affiliate FT Interactive Data Corporation
services that Client Local Affiliate decides to receive. Ridge Local Affiliate warrants and represents that it has full right, title or license required to provide such data to Client Local Affiliate for use in the Services. Additionally, Ridge
Local Affiliate hereby grants to Client Local Affiliate the right to use and store such data pursuant to the terms and conditions of Attachment D, for the purposes of Client Local Affiliate providing services to its customers in the course of
Client Local Affiliate’s standard commercial operations. 
  

	XIV.	ACQUISITION OF OR BY ANOTHER RIDGE LOCAL AFFILIATE CLIENT 

In the event that Client Local Affiliate acquires, or is acquired by, by stock, acquisition of substantially all the assets of, merger, or
consolidation (a “Business Combination”), a Client Local Affiliate of Ridge Local Affiliate’s Brokerage Services Group that receives trade processing services substantially similar to the Services provided under this
Schedule (the “Other Entity”), and Client Local Affiliate and the Other Entity, or the resulting entity as the case may be, consolidate the trade processing carried out under this Schedule with the trade processing carried
out by the Other Entity prior to the termination or expiration of the Client Local Affiliate’s or the Other Entity’s schedule relating to trade processing services substantially similar to the Services provided under this Schedule so that
it is processed by Ridge Local Affiliate as one entity, all service charges, including, without limitation, the Base Fee and any other applicable tiered fees applicable for the brokerage processing services provided by Ridge Local Affiliate shall be
renegotiated in good faith between Ridge Local Affiliate and Client Local Affiliate. Otherwise, the Ridge Local Affiliate agreements with Client Local Affiliate and the Other Entity agreements in place prior to the Business Combination shall remain
in effect for the respective services provided by Ridge Local Affiliate or any other Ridge Local Affiliate’s Brokerage Services Group entity until the termination or expiration of such agreements. For clarity and notwithstanding anything to the
contrary, Client Local Affiliate and the Other Entity shall be free to consolidate their trade processing after the termination or expiration of either of their agreements or relevant Schedule with Ridge Local Affiliate or any entity of the Ridge
Local Affiliate Brokerage Services Group without restriction and without any obligation to renegotiate any fees relating to trade processing or otherwise. In the event Client Local Affiliate participates in a Business Combination with an entity that
is not a client of Ridge Local Affiliate’s Brokerage Services Group that receives trade processing and/or operations support services substantially similar to the Services provided under this Schedule, all rates in Attachment B
(including, without limitation, the Base Fee and any other applicable tiered fees applicable for the brokerage processing services) provided by Ridge Local Affiliate shall remain as set forth in Attachment B, subject to the adjustments
described therein. 
  

	XV.	CLIENT LOCAL AFFILIATE RESPONSIBILITIES 

Client Local Affiliate shall be responsible, to the extent necessary for the Services it is receiving, in connection with the use of the
Services for the following: 
  

	 	A.	User security administration for the Services in accordance with, and as set forth in, the relevant product specifications and user documentation.

  

	 	B.	Forms and supplies required by Ridge Local Affiliate in connection with the performance of the Services, which are agreed to by the parties in writing. Ridge Local
Affiliate shall provide Client Local Affiliate with reasonable advance notice of any such requirements. 

  

	 	C.	Equipment, other than equipment provided by Ridge Local Affiliate, at Client Local Affiliate’s location required in use of the Services (e.g., printers, terminals)
as identified by Ridge Local Affiliate in writing. 

  

	 	D.	Dial backup ISDN circuits or other equivalent backup solution selected by Client Local Affiliate. 

 

	 	E.	Third party telecommunications services not otherwise set forth in Attachment B. 

 
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	 	F.	Hardware, software, and telecommunications products required to interface to the Services (e.g., terminal emulation software), other than any such hardware, software,
and telecommunications products provided by Ridge Local Affiliate. 

  

	 	G.	Special equipment, which Client Local Affiliate may elect to place at Ridge Local Affiliate locations, if required by Client Local Affiliate, specific to Client Local
Affiliate’s use of the Services as agreed to by the parties in writing. 

  

	 	H.	Use commercially reasonable efforts to obtain the approval of each relevant regulatory or self-regulatory agency or entity, if any, with regulates Client Local
Affiliate’s receipt of the Services (including, without limitation, securities and commodities exchanges, associations of securities and/or commodities dealers, federal, provincial and local Governmental Authorities). 

For the avoidance of doubt, Ridge Local Affiliate shall not be responsible for its failure to provide Services solely to the extent caused
by the failure of Client Local Affiliate to perform the above listed requirements. Ridge Local Affiliate shall (i) provide Client Local Affiliate with reasonable notice of Client Local Affiliate’s failure to perform any of its
responsibilities set forth in this Schedule and (ii) use commercially reasonable efforts to perform notwithstanding Client Local Affiliate’s failure to perform, subject to Client Local Affiliate reimbursing Ridge Local Affiliate for any
reasonable incremental cost to Ridge Local Affiliate in connection with such efforts. 
  

	XVI.	REQUIRED PROVISION OF SYBASE, INC. 

Client Local Affiliate acknowledges and agrees that the Sybase SQL Server Program and the Sybase Replication Server Program (the
“Programs”) to the extent incorporated into the Services and used in connection with Ridge Local Affiliate’s BPS Advantage product, if selected and received by Client Local Affiliate, shall only be used by the Client
Local Affiliate as set forth below to read, in a view-only format, the Services, and the Programs shall not be downloaded or used to create or alter tables, schemas or databases or otherwise develop or modify in any way the applications or
performance of other programming tasks. Notwithstanding the foregoing, Client Local Affiliate may access the Programs through Ridge Local Affiliate tools or third party tools; provided, however, that any access shall be restricted to the following:
Client Local Affiliate may access the Services embedding a copy of the Programs which are deployed on Ridge Local Affiliate’s premises or Client Local Affiliate’s site, provided, however, that in either instance, Client Local Affiliate
shall not (i) copy the application(s) embedding the Programs, (ii) use the Programs other than to process Client Local Affiliate’s own transactions, transactions for entities that are correspondents or customers of the Client Local
Affiliate and transactions for entities that operate on a fully disclosed basis through Client Local Affiliate as correspondents, or (iii) access the Programs for general development. Client Local Affiliate may also develop applications against
the BPS Advantage database using tools supplied by Ridge Local Affiliate, Sybase or other third parties. 
  

	XVII.	SEVERABILITY 

 If any
provision of this Schedule should be held invalid or unenforceable in a court of law in any jurisdiction, such invalidity or unenforceability shall not affect the enforceability of this Schedule or any other provision thereof. In addition, the
parties agree that it is their intention that such provision shall be construed in a manner designed to effectuate the purposes of this Schedule to the fullest extent enforceable under applicable Law. The parties further agree that such ruling shall
not affect the construction of that provision or any other of the provisions in any other jurisdiction. 
  

	XVIII.	DISASTER RECOVERY; BUSINESS CONTINUITY 

Ridge Local Affiliate shall maintain the disaster recovery and business continuity services as set forth in Attachment E.
Attachment E is hereby incorporated in and made an integral part of this Schedule. 
  

	XIX.	INTENTIONALLY LEFT BLANK 

  

	XX.	INTENTIONALLY LEFT BLANK 

  

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	XXI.	CHANGES TO THE MASTER SERVICES AGREEMENT 

The following general changes shall be made to the Master Services Agreement when incorporating the terms and conditions of the Master
Services Agreement into this Schedule: NONE. 
  
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Solutions (Canada) Inc. 
  

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 IN WITNESS WHEREOF the parties have executed this Schedule as of the date first written above.

  

			
	BROADRIDGE FINANCIAL SOLUTIONS (CANADA) INC.
		
	By:	 	 /s/ Michael Dignam

		 	Name: Michael Dignam
		 	Title: President

  

			
	PENSON FINANCIAL SERVICES CANADA INC.
		
	By:	 	 /s/ Philip A. Pendergraft

		 	Name: Philip A. Pendergraft
		 	Title: Director

  

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 ATTACHMENT A 

DESCRIPTION OF OUTSOURCED SERVICES 

Ridge Local Affiliate shall provide the following services to Client Local Affiliate in connection with this Schedule: 

 

	(1)	Subject to the last paragraph of this Attachment, the operational support services and functions with respect to Client Local Affiliate’s business immediately
prior to the Schedule Effective Date as set forth in Appendix 3 (the “Existing Operations Support Services”). 

  

	(2)	Subject to the last paragraph of this Attachment, all of the technology and processing services and functions that Client Local Affiliate outsourced to third parties
immediately prior to the Effective Date (provided, however, that Ridge Local Affiliate has the right to exclude certain technologies, processing services or functions in the event Ridge Local Affiliate does not offer a comparable technology,
processing service or function), including, without limitation, the services provided by the third parties set forth in Appendix 4 (the “Existing Technology Services”). Notwithstanding anything to the contrary herein,
the Existing Technology Services shall include the services set forth in the Existing Canadian Agreement (including the services described in the Pricing Schedule thereto), including, without limitation all Software, technology and order and
transaction types provided to Client Local Affiliate in connection therewith. 

 The parties agree to work in good faith to revise
Appendix 3 and Appendix 4 prior to the Closing Date in order to add or remove in-scope Existing Operations Support Services and Existing Technology Services as deemed necessary and appropriate by Client in Client’s sole
discretion; provided, however, that any such changes to Appendix 3 and Appendix 4 shall not in any event cause a reduction in the Base Fee with respect to the Existing Operations Support Services plus the Existing Technology
Services (as described in Section I(1) of Attachment B-1) below U.S. [****] in the aggregate for the Existing Operations Support Services and the Existing Technology Services provided under this Schedule and the “Service Bureau and
Operations Support Services” Schedules for the United Kingdom and the U.S. 
  

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 Appendix 1 to Attachment A 

Intentionally left blank. 
  

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 Appendix 2 to Attachment A 

Intentionally left blank. 
  

Broadridge Financial Solutions (Canada) Inc. 
  

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 Appendix 3 to Attachment A 

Existing Operations Support Services - Canada 

[****] 
  

Broadridge Financial Solutions (Canada) Inc. 
  

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 Appendix 4 to Attachment A 

Existing Technology Services - Canada 

[****] 
  

Broadridge Financial Solutions (Canada) Inc. 
  

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 Appendix 5 to Attachment A 

Intentionally left blank. 
  

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 ATTACHMENT B 

Service Bureau and Operations Support Services Price Schedule 

 

	1.	Charges for the Services. The charges for the Services are set forth in Attachment B-1. 

 

	2.	Changes to Schedule B. The parties agree, subject to the Change Control Procedures set forth in Exhibit C to the Master Services Agreement, that any
changes that the Client Local Affiliate makes from time to time that result in the addition or removal of specific Service functions (including, without limitation, material changes required by Applicable Law or by a regulatory body) may require
changes to the charges payable by Client Local Affiliate. 

  

	3.	Postage. Notwithstanding anything herein to the contrary, postage shall be billed to Client Local Affiliate on a pass-through basis. 

 

	4.	Customization. Any customization work shall be provided pursuant to a rate schedule to be agreed upon by the parties no later than the Closing Date.

  
 Broadridge Financial Solutions (Canada) Inc.

  

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 Attachment B-1 

Base Fee and Tiered Fees 

[****] 
  

	II.	Intentionally left blank. 

 [****]

  
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 ATTACHMENT C 

SERVICE LEVELS 
  

	I.	INTRODUCTION 

 In order to maintain the
specified Service Levels for the Services set forth in Attachment C-1, the parties have agreed that certain defined Service Levels (the “SLAs”) are to be established and measured as set forth below. SLAs related
to the Services shall be established by the parties no later than [****] after the Schedule Effective Date. New Service Levels may be added during the Schedule Term, and existing Service Levels may be modified or eliminated, by the mutual agreement
of the parties from time to time. 
  

	II.	OPERATIONS 

  

	A.	General 

 Commencing on the Live Date and
subject to this Section II, Ridge Local Affiliate’s provision of the Services shall be in accordance with the Service Levels identified in Attachment C-1. 

 

	B.	Reports; Performance Review; Corrective Action 

(a) Ridge Local Affiliate shall, wherever the parties agree to use objective data, utilize continuous measurement and data capture and
shall prepare a reasonably detailed report with respect to the Service Levels) (each, a “Service Level Report”). Service Level Reports shall be provided to Client Local Affiliate on a monthly basis. 

(b) Ridge Local Affiliate and Client Local Affiliate shall meet at least quarterly to review Ridge Local Affiliate’s performance
with respect to the Services during the immediately preceding quarterly period and the Service Level Reports connected therewith, and, with respect to Ridge Local Affiliate’s failure to achieve any Service Levels, the parties shall
(1) jointly formulate a formal action plan for corrective action, as applicable, and (2) agree upon the appropriate consequences if such action plan does not prevent subsequent instances of the same Service Level failures. 

(c) The specific criteria for each Service Level shall be detailed in the applicable SLA set forth in Attachment C-1.
Prior to Live Date, the parties shall modify such Service Levels, create such additional Service Levels, or modify the method used to measure performance (including, without limitation, appropriate objective data, quality control process or other
methods) as the parties mutually agree in writing. 
 (d) [****], the parties shall measure actual Ridge Local Affiliate
performance levels in the manner previously agreed to by the parties, and review the method used to measure performance and such performance. The parties shall discuss in good faith any appropriate modifications to the method used to measure
performance, the Service Levels or any remedial steps required to be taken by Ridge Local Affiliate in light of such review and shall, at least once annually during the Schedule Term, engage in such good faith discussions to determine any
appropriate modifications to the method used to measure performance, the Service Levels or any remedial steps required to be taken by Ridge Local Affiliate in light of such review. 

 

	C.	Changes to the Service Levels 

(a) The parties acknowledge that the Service Levels shall be subject to continuous improvement and that changing circumstances may
necessitate modifications to service, expectations and responsibilities. Accordingly, the parties shall, at least once annually during the Schedule Term, engage in good faith discussions to determine if (i) any modifications to the existing
Service Levels are necessary or advisable, (ii) any existing Service Levels should be deleted and (iii) any new Service Levels should be added. 

(b) For all new Service Levels, the parties shall mutually agree upon the Service Level targets and the methodology and tools used to
measure performance. The parties shall mutually agree on any Service Level target based on [****] of measurements of the applicable Service Level utilizing the agreed upon methodology and tools.

  
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Financial Solutions (Canada) Inc. 
  

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Any dispute regarding the establishment of such Service Level targets or the methodology and tools used to measure performance shall be resolved by the Executive Governance Committee. In
addition, the Executive Governance Committee shall review Service Level targets and performance and shall give weight to Client Local Affiliate’s recommendations for continuous improvement of Service Level targets, based on, among other things,
advances in technology. 
  

	D	Service Level Credits 

 The amount of
Service Level Credits credited to Client Local Affiliate with respect to all Category 1 service level failures occurring in a single month shall not exceed, in total, [****] of the monthly charges payable in connection with the Schedule for that
month (the “Service Level Credit Pool – Category 1”). The amount of Service Level Credits credited to Client Local Affiliate with respect to all other service level failures occurring in a single month shall not exceed,
in total, [****] of the monthly charges payable in connection with the Schedule for that month (the “Service Level Credit Pool – All Other Categories”, and together with the Services Level Credit Pool – Category 1,
the “Service Level Credit Pools”). The Service Level Credit Pools shall be allocated to various Service Levels as set forth in Attachment C-1. The parties shall, at least once annually during the Schedule Term, engage
in good faith discussions to determine if any modification to the allocation of the Service Level Credit Pools set forth in Attachment C-1 are necessary or advisable. 

 

	E.	Root-Cause Analysis 

 In the event Ridge
Local Affiliate has a Service Level failure that is not insignificant, Ridge Local Affiliate shall perform a root-cause analysis as described in Section 1.C of the Master Services Agreement. 

 

	F.	Excuse 

 Ridge Local Affiliate shall be
excused from performing any Service or obligation hereunder, including, without limitation, the attainment of any Service Level, if and to the extent Ridge Local Affiliate’s failure to perform such Service or obligation is caused by Client
Local Affiliate’s or its agents’ act or omission, including, without limitation, (a) Client Local Affiliate providing incomplete or inaccurate data, specifications or requirements; and (b) failures, errors or defects in
facilities, equipment, materials or other resources provided by Client Local Affiliate, including, without limitation, telecommunications, hardware, infrastructure and network connectivity. 

 
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 Attachment C-1 

SLAs 
 The parties shall
include a Service Level for development work no later than [****] after the Schedule Effective Date. 
  

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 ATTACHMENT D 

No Warranty and Limitation on Liability Provisions 

Required by Users of Third Party Data 

No Warranties 
 EXCEPT IN CONNECTION WITH
CONTRACTS OF THIRD PARTY DATA SUPPLIERS WITHOUT CONTRACTUAL RESTRICTIONS SIMILAR TO THOSE BELOW, NO THIRD PARTY DATA SUPPLIERS MAKE ANY WARRANTIES, EXPRESS OR IMPLIED, AS TO MERCHANTABILITY, FITNESS OR ANY OTHER MATTER. 

Limitation on Liability 
 (a) No third
party data supplier shall have any liability to Client Local Affiliate, or any other third party, for errors, omissions or malfunctions in the services provided by such third party data supplier, other than the obligation to endeavor, upon receipt
of notice from Client Local Affiliate, to correct a malfunction, error, or omission in any such services. 
 (b) Client Local Affiliate
acknowledges that the services provided by any third party data supplier are intended for use as an aid to institutional investors, registered brokers or professionals of similar sophistication in making informed judgments concerning securities.

 Client Local Affiliate accepts responsibility for, and acknowledges it exercises its own independent judgment in, its selection of any of the
services provided by any third party data supplier, its selection of the use or intended use of such, and any results obtained. Nothing contained herein shall be deemed to be a waiver of any rights existing under applicable law for the protection of
investors. 
 (c) Client Local Affiliate shall indemnify Ridge Local Affiliate’s third party data suppliers (including, without limitation,
FT Interactive) against and hold such third party data suppliers harmless from any and all losses, damages, liability, costs, including, without limitation, attorney’s fees, resulting directly or indirectly from any claim or demand against such
third party data suppliers by a third party arising out of or related to the accuracy or completeness of any services received by Client Local Affiliate, or any data, information, service, report, analysis or publication derived therefrom. No third
party data supplier shall be liable for any claim or demand against Client Local Affiliate by a third party. 
 (d) As between a third party
data supplier and Client Local Affiliate, neither party shall be liable for (i) any special, indirect or consequential damages (even if advised of the possibility of such), (ii) any delay by reason of circumstances beyond its control,
including, without limitation, acts of civil or military authority, national emergencies, labor difficulties, fire, mechanical breakdown, flood or catastrophe, acts of God, insurrection, war, riots, or failure beyond its control of transportation or
power supply, or (iii) any claim that arose more than one (1) year prior to the institution of suit therefor. 
  

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 ATTACHMENT E 

DISASTER RECOVERY; BUSINESS CONTINUITY 

To be agreed upon by the parties within [****] after the Schedule Effective Date. 

 
 Broadridge Financial Solutions (Canada) Inc. 

 

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 ATTACHMENT F 

REPORTS 
 To be agreed
upon by the parties within [****] after the Schedule Effective Date. 
  

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 ATTACHMENT G 

RECORD RETENTION POLICY 

To be agreed upon by the parties within [****] after the Schedule Effective Date. 

 
 Broadridge Financial Solutions (Canada) Inc. 

 

 26 

 NOTE: PORTIONS OF THIS AGREEMENT ARE THE SUBJECT OF A 

CONFIDENTIAL TREATMENT REQUEST BY THE REGISTRANT TO THE 

SECURITIES AND EXCHANGE COMMISSION. SUCH PORTIONS HAVE BEEN 

REDACTED AND ARE MARKED WITH A “[****]” IN PLACE OF THE REDACTED LANGUAGE. 

Schedule A (United Kingdom) 

SERVICE BUREAU AND OPERATIONS SUPPORT SERVICES SCHEDULE 

To The Master Services Agreement 

between 

BROADRIDGE FINANCIAL SOLUTIONS, INC. 

and 

PENSON WORLDWIDE, INC. 

This schedule (the “Schedule”), dated as of November 2, 2009 (the “Schedule Effective Date”),
between Ridge Clearing & Outsourcing Solutions Limited (“Ridge Local Affiliate”) and Penson Financial Services Ltd. (“Client Local Affiliate”), to the Master Services Agreement, dated as of
the date hereof, between Broadridge Financial Solutions, Inc. and Penson Worldwide, Inc., sets forth the terms and conditions, in addition to the terms and conditions in the Master Services Agreement, under which Ridge Local Affiliate will provide
service bureau and operations support services to Client Local Affiliate to assist and support Client Local Affiliate in functioning as a clearing firm. Each of Client Local Affiliate and Ridge Local Affiliate agrees to comply with and fulfill all
terms and conditions applicable to it under the Master Services Agreement. 
 Unless otherwise defined herein, all capitalized terms shall have
the meanings given to them in the Master Services Agreement. In the event of a conflict between the terms and conditions of this Schedule and the terms and conditions of the Master Services Agreement, the terms and conditions of this Schedule shall
govern. The term “Client Local Affiliate” as used in this Schedule includes all Affiliates, divisions and subsidiaries of Client Local Affiliate. Except where otherwise indicated, all references in this Schedule to Sections
or Attachments are to Sections to, and Attachments of, this Schedule. The term “party” as used in this Schedule means Ridge Local Affiliate or Client Local Affiliate, as applicable. The term “parties” as used in this Schedule
means Ridge Local Affiliate and Client Local Affiliate. 
  

	I.	SUBMISSION OF SCHEDULE 

A. During the Schedule Term, Client Local Affiliate and Ridge Local Affiliate shall each be subject, to the extent applicable to such
party, to the provisions of federal, state and local laws, rules and regulations and the constitution, by-laws, rules, regulations and stated policies of the Financial Services Authority (“FSA”), the London Stock Exchange
Group plc (“LSE”) and any other securities exchange, commission, association, regulatory or self-regulatory organization (“SRO”) vested with authority over Client Local Affiliate or Ridge Local
Affiliate (to the extent applicable to a party, the “Laws and Rules”). Each party shall perform its obligations under this Schedule in accordance with the Laws and Rules. 

B. This Schedule shall not become effective until the date upon which all necessary SRO approvals as to both parties are received (the
“Approval Date”); provided, however, that if no SRO approvals are required for this Schedule to become effective, this Schedule shall become effective as of the Schedule Effective Date. In the event that any such approval is
required and this Schedule is not so approved, the parties shall negotiate in good faith to amend this Schedule as may be needed to obtain such approval. 

C. Ridge Local Affiliate acknowledges that Client Local Affiliate has regulatory responsibilities as a clearing firm, including, among
other things, a duty to supervise the types of business in which it engages. 
  

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To assist Client Local Affiliate in satisfying such obligations, Ridge Local Affiliate agrees to provide, at the reasonable request of Client Local Affiliate, performance reports with respect to
the Services and full access to relevant books and records, information and Ridge Local Affiliate personnel engaged in providing the Services. Ridge Local Affiliate acknowledges that Client Local Affiliate is required, from time to time, to prepare
and file reports with the FSA, LSE and other SROs or Governmental Authorities. To assist Client Local Affiliate in satisfying such requirements, Ridge Local Affiliate agrees to provide Client Local Affiliate with information in its possession that
is necessary for Client Local Affiliate to prepare and file any such reports. 
 D. This Schedule is not intended, and shall not
be construed, to limit, reduce, or otherwise change any regulatory, contractual or other obligation that Client Local Affiliate owes to a correspondent or to its customers. 

 

	II.	SERVICES TO BE PERFORMED BY RIDGE LOCAL AFFILIATE 

A. Subject to the second paragraph of Section 16.G of the Master Services Agreement and Section I.B, Ridge Local Affiliate will
perform the services, functions and responsibilities described in Attachment A in accordance with the terms and conditions of this Schedule and the Master Services Agreement. Attachment A is hereby incorporated in and made an
integral part of this Schedule. Any additional services to be performed by Ridge Local Affiliate shall be subject to the written agreement of the parties. 

B. Intentionally left blank. 

C. This Schedule and the Master Services Agreement are intended to create an exclusive arrangement between Client Local Affiliate and
Ridge Local Affiliate with respect to the Services utilized by Client Local Affiliate as of the applicable Live Date in the Territory for which a pricing schedule is included in this Schedule except (A) as otherwise set forth in this Schedule
and the Master Services Agreement and (B) in the event that (i) Client Local Affiliate or a Customer of Client Local Affiliate is prohibited by Law from receiving Services from Ridge Local Affiliate in the Territory, (ii) Client Local
Affiliate obtains a business and in connection therewith is contractually required to use an alternative system (and not the Services) as a condition of obtaining such business or (iii) during any time period that Ridge Local Affiliate is in
material breach of this Schedule and has failed to cure such breach within thirty (30) days following notice from Client Local Affiliate specifying the nature of such breach in reasonable detail. 

 

	III.	CONVERSION 

 A.
Conversion of Client Correspondents. In connection with the conversion of the correspondents of Client Local Affiliate (“Client Correspondents”) to Ridge Local Affiliate, the parties agree to the following: 

 

	 	(i)	 Client Local Affiliate shall provide Ridge Local Affiliate with Client Local Affiliate’s requirements with respect to the Client Local Affiliate
files and Service Levels applicable to the Client Correspondents (the “Client Requirements”) after the Schedule Effective Date. The parties shall enter into a statement of work (the “Conversion SOW”)
that will describe Client Local Affiliate’s migration to Ridge Local Affiliate’s service delivery and technology platform no later than [****] after Ridge Local Affiliate’s receipt of the Client Requirements. The Conversion SOW will
define the Target Live Date for each Service and describe specific implementation activities and procedures required to migrate Client Correspondents to the Ridge Local Affiliate, including, without limitation, development, implementation and
integration of Software and other software and development and integration of correspondent clearing functionalities, reporting and monitoring systems and such other services as may be set forth in the Conversion SOW (the “Conversion
Services”). Without limiting the generality of the foregoing, the Conversion SOW shall (1) specify that Ridge Local Affiliate will convert the applicable Client Local Affiliate files to make them compatible with the Services and
the other services, as may be 

  

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required in respect of the migration of Client Local Affiliate’s Customers to the Services and (2) describe the development and integration of correspondent clearing functionalities by
Ridge Local Affiliate. The Conversion Services shall be provided at no charge to Client Local Affiliate by Ridge Local Affiliate. 

  

	 	(ii)	The parties shall cooperate and provide each other with all information and assistance reasonably required in connection with the Conversion Services. Each party will
assign a liaison person to assist and cooperate with the other party in connection with the Conversion Services (which person may be replaced by a party at its sole discretion from time to time by way of notice to the other party).

  

	IV.	TERM OF SCHEDULE 

 A.
Schedule Term. The term of this Schedule (the “Schedule Term”) shall begin on the Schedule Effective Date and shall continue for a period of ten (10) years after the last Live Date with respect to the Schedules
under the Master Services Agreement for the U.S., U.K. or Canada (for clarity, the Schedule Term of the Schedules under the Master Services Agreement for the U.S., U.K. and Canada shall be coterminous with each other); provided, however, that this
Schedule’s effective date is subject to its review and approval by the applicable regulatory agency as described in Section I.A. The “Live Date” for a Service is defined as the first date upon which Ridge Local
Affiliate processes trades utilizing the applicable Service on behalf of Client Correspondents in accordance with the provisions and requirements of this Schedule and the Master Services Agreement (excluding any beta testing or similar testing of
the system). The Schedule Term shall automatically extend following its scheduled expiration date unless (1) either party gives notice of termination at least one hundred eighty (180) days prior to the scheduled expiration date, in which
case the Schedule Term shall expire on the scheduled expiration date or (2) either party gives notice of termination at any time after the date that is one hundred eighty (180) days prior to the scheduled expiration date of the Schedule
Term (including any time beyond the scheduled expiration date), in which case the Schedule Term shall expire on the date specified in such notice of termination, which date must be at least one hundred eighty (180) days after the date of such
notice. 
 B. Client Local Affiliate’s Termination. 

 

	 	(i)	Client Local Affiliate may terminate this Schedule for convenience upon one hundred twenty (120) days notice to Ridge Local Affiliate. In the event of any such
termination or in the event Ridge terminates this Schedule pursuant to Section 18.B of the Master Services Agreement, Client Local Affiliate shall pay to Ridge Local Affiliate prior to the effective date of such termination, as liquidated
damages and not as a penalty, an amount equal to [****] of the Base Fee (but not as increased or decreased in connection with Section III of Attachment B-1) that Client Local Affiliate would otherwise be obligated to pay under this
Schedule if this Schedule had not been terminated, from and after the effective date of termination through the end of this Schedule Term. 

  

	 	(ii)	Client Local Affiliate may terminate this Schedule in the event of a Service Level Termination Event upon notice to Ridge Local Affiliate, and, in such event, no
termination fees or termination charges of any type shall be payable by Client Local Affiliate to Ridge Local Affiliate. 

No later than [****] after the Schedule Effective Date, the parties shall define a Service Level Termination Event. 

 

	 	(iii)	 Client Local Affiliate may terminate this Schedule for a Change in Control of Client Local Affiliate or any Affiliate that directly or indirectly
Controls such Client Local Affiliate (the “Applicable Client Entity”) upon [****] notice to Ridge Local Affiliate. In the event of any such termination, Client Local Affiliate shall pay to Ridge Local Affiliate prior to the
effective date of such termination, as liquidated damages and not as a penalty, an amount equal to the lesser of (a) [****] of the Base Fee (but not as 

 
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increased or decreased in connection with Section III of Attachment B-1) that Client Local Affiliate would otherwise be obligated to pay under this Schedule if this Schedule had
not been terminated, from and after the effective date of termination through the end of the Schedule Term and (b) U.S. [****]. 

“Change in Control” shall mean the (a) consolidation or merger of an Applicable Client Entity with or into
any entity (other than the consolidation or merger of an Applicable Client Entity with a third party entity in which such Applicable Client Entity is the surviving entity; provided, however, that the holders of the then-outstanding voting securities
of such Applicable Client Entity prior to any such consolidation or merger hold securities that represent immediately after such consolidation or merger greater than fifty percent (50%) of the combined voting power of the then-outstanding
voting securities of such Applicable Client Entity thereafter), (b) sale, transfer or other disposition of all or substantially all of the assets of an Applicable Client Entity or (c) acquisition by any individual, entity, or group of
individuals or entities acting in concert, of beneficial ownership of fifty percent (50%) or more (or such lesser percentage that constitutes the power to direct or cause the direction of the management and policies of an Applicable Client
Entity) of the outstanding voting securities or other ownership interests of an Applicable Client Entity. 
 C. Failure To Go
Live. If the Services in connection with the Client Correspondents do not go live by the Target Live Date set forth in the Conversion SOW or any other date agreed to by the parties as set forth in writing, through no fault of Ridge Local
Affiliate (or its subcontractors) or a Force Majeure Event (as defined in the Master Services Agreement) or a delay in obtaining an approval described in Section I.B, then Client Local Affiliate shall pay to Ridge Local Affiliate, as liquidated
damages and not as a penalty, an amount equal to a percentage of the Base Fee that Client Local Affiliate would otherwise be obligated to pay if the Services had commenced on the Target Live Date as follows (each, a “Failure To Go Live
Monthly Payment”): (i) if the Services do not go live by the [****] following the Target Live Date, [****] of the Base Fee for such [****]; (ii) if the Services do not go live by the [****] following the Target Live Date,
[****] of the Base Fee for such [****]; (iii) if the Services do not go live by the [****] following the Target Live Date, [****] of the Base Fee for such [****]; (iv) if the Services do not go live by the [****] following the Target Live
Date, [****] of the Base Fee for such [****]; (v) if the Services do not go live by the [****] following the Target Live Date, [****] of the Base Fee for such [****]; and (vi) if the Services do not go live by the [****] following the
Target Live Date, [****] of the Base Fee for such [****] and for each [****] thereafter until the Services go live. 
 D.
Early Go Live. If the Services go live prior to the Target Live Date or any other date agreed to by the parties as set forth in writing, then the Base Fees with respect to the Services shall be reduced by an amount equal to a percentage of
the Base Fee for each [****] until the Target Live Date as follows: (i) if the Services go live [****] or more prior to the Target Live Date, [****] of the Base Fee for such [****] and for each [****] prior to such [****]; (ii) if the
Services go live [****] prior to the Target Live Date, [****] of the Base Fee for such [****]; (iii) if the Services go live [****] prior to the Target Live Date, [****] of the Base Fee for such [****]; (iv) if the Services go live [****]
prior to the Target Live Date, [****] of the Base Fee for such [****]; (v) if the Services go live [****] prior to the Target Live Date, [****] of the Base Fee for such [****]; and (vi) if the Services go live [****] prior to the Target
Live Date, [****] of the Base Fee for such [****]. 
 E. Failure to Deliver. If Ridge Local Affiliate fails to deliver the
Services (compliant with the Statement of Work and specifications) by the Target Live Date, through no fault of Client Local Affiliate (or its subcontractors) or a Force Majeure Event (as defined in the Master Services Agreement) or a delay in
obtaining an approval described in Section I.B (a “Failure to Deliver”), then Ridge Local Affiliate shall pay Client Local Affiliate, as liquidated damages and not as a penalty, an amount equal to a percentage of
the amount Client Local Affiliate pays in connection with (a) the Client Local Affiliate personnel performing the operational support services described in Appendix 3 and (b) the services Client Local Affiliate outsourced to third
parties, including, without limitation, as set forth in Appendix 4, in each case, on a [****] basis until such time as Ridge Local Affiliate delivers the Services (compliant with the 

 
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Statement of Work and specifications); provided, however, that such amount Client Local Affiliate pays is consistent with amounts Client Local Affiliate historically paid for such services,
including any non-recurring expense or cost (collectively, the “Historical Amount”), as follows: (i) if the Services do not go live by the [****] following the Target Live Date, [****] of the Historical Amount;
(ii) if the Services do not go live by the [****] following the Target Live Date, [****] of the Historical Amount for such [****]; and (iii) if the Services do not go live by the [****] following the Target Live Date, [****] of the
Historical Amount for such [****] and for each [****] thereafter. 
 If a Failure to Deliver requires Client Local Affiliate to
extend or renew any Disclosed Agreement (as defined below), then: (1) Client Local Affiliate shall use commercially reasonable efforts to obtain a month-to-month extension of such Disclosed Agreement and, if it is unable to obtain a
month-to-month extension, promptly notify Ridge Local Affiliate of its inability to obtain a month-to-month extension and use commercially reasonable efforts to minimize any early termination fees due under such extension or renewal (whether by
contractual right or continuing such Disclosed Agreement past the expiration date); (2) during the period from and after the first day of such extension or renewal (whether by contractual right or continuing such Disclosed Agreement past the
expiration date) and until and including the final Live Date with respect to the Services applicable to such Disclosed Agreement, Ridge Local Affiliate shall be responsible for any incremental increase in the fees due under such Disclosed Agreement
as a result of such extension or renewal (in addition to the Historical Amounts calculated in accordance with the first paragraph of this Section IV.E); and (3) from and after the final Live Date with respect to the Services applicable to
such Disclosed Agreement, Ridge Local Affiliate shall be responsible for any early termination fees, fees for services and other amounts payable under such Disclosed Agreement. A “Disclosed Agreement” is defined as those
agreements between Client Local Affiliate and a third-party service provider that Client Local Affiliate discloses to Ridge Local Affiliate, including the applicable termination date and extension options of each such agreement, prior to the
parties’ execution of the Conversion SOW. 
  

	V.	CHARGES 

  

	 	A.	The fees for the Services are set forth in Attachment B hereto. Attachment B is hereby incorporated in and made an integral part of this Schedule.
Unless otherwise indicated, all fees and charges set forth in Attachment B are in British pounds sterling. Notwithstanding the immediately preceding sentence, for purposes of calculating the aggregate amounts in connection with the last
paragraph in Attachment A and paragraph four of Section III to Attachment B-1, such calculation shall be in U.S. dollars using the exchange rate published in the Wall Street Journal on the Schedule Effective Date.

  

	 	B.	The monthly charge for the Services shall be equal to 1/12th of the Base Fee plus any Tiered Fees, as set forth in Attachment B, and shall be payable
commencing on the Live Date for the relevant Services. The monthly charge shall not be increased at anytime during the Schedule Term, except (i) as set forth in Attachment B and (ii) Ridge Local Affiliate shall have the right
to pass through increases, and shall pass through decreases, relating to the charges of third party service providers, including, without limitation, communication and other third party service provider charges (excluding charges of Ridge Local
Affiliates) and federal, provincial, and local governmental fees, to the extent that the parties imposing such fees have increased or decreased the same and provided any such increases shall be passed through only to the extent they are passed
through to all Ridge Local Affiliate customers receiving the Services. 

  

	 	C.	[****]. 

  

	VI.	NO PARTNERSHIP OR AGENCY; NO SPECIAL TREATMENT 

Neither this Schedule nor any activity hereunder shall create a general or limited partnership, association, joint venture, branch or
agency relationship between Client Local Affiliate and Ridge Local Affiliate. Client Local Affiliate shall not hold itself out as an agent of Ridge Local Affiliate or of any subsidiary or company controlled directly or indirectly by or affiliated
with Ridge Local Affiliate, nor shall it employ 
  

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Ridge Local Affiliate’s name in any manner that creates the impression that the relationship created or intended between them is anything other than that of service provider and clearing
broker. Except as reasonably necessary to provide the Services, Ridge Local Affiliate shall not hold itself out as an agent of Client Local Affiliate or of any subsidiary or company controlled directly or indirectly by or affiliated with Client
Local Affiliate, nor shall it employ Client Local Affiliate’s name in any manner that creates the impression that the relationship created or intended between them is anything other than that of service provider and clearing broker. Neither
party shall, without the prior approval of the other party, place any advertisement in any newspaper, publication, periodical or any other media if such advertisement in any manner makes reference to the other party or to the arrangements
contemplated by this Schedule. Neither party shall, without the prior approval of the other party (which approval shall not be unreasonably withheld), furnish any link to the website(s) of the other party or its Affiliates. For the avoidance
of doubt, nothing herein shall prevent the disclosure of (i) Ridge Local Affiliate’s name or the Services to be performed under the Master Services Agreement or this Schedule to any of Client Local Affiliate’s regulators or customers
or (ii) a party’s name or the services it offers to the extent necessary to carry out each party’s obligations under the Master Services Agreement, this Schedule or Marketing Agreement. 

Nothing herein shall cause Ridge Local Affiliate to be construed as or deemed to be a fiduciary with respect to Client Local Affiliate,
any correspondent of Client Local Affiliate, or any customer of Client Local Affiliate or its correspondents. 
 This Schedule is
not intended, nor shall it be construed, to bestow upon either party any special treatment regarding any other arrangements, agreements or understandings that exist or may hereafter exist between the parties or their affiliates. Neither party shall
have any obligation to deal with the other in any capacity other than as set forth in this Schedule. 
  

	VII.	SERVICE LEVELS 

 Ridge
Local Affiliate shall provide the Services in accordance with the terms and conditions set forth in Section 1.C of the Master Services Agreement and with respect to Service Levels set forth in Attachment C hereto and any other
Service Level agreement that may be agreed between the parties from time to time with respect to the Territory. Attachment C is hereby incorporated in and made an integral part of this Schedule. Ridge Local Affiliate agrees that the Service
Levels set forth in Attachment C shall be at least as stringent as any service levels provided by Ridge Local Affiliate to its other clients in the United Kingdom. 

 

	VIII.	EXCHANGE OF INFORMATION 

Throughout the Schedule Term, each party shall promptly supply the other with information in its possession necessary or appropriate to
enable the other party properly to perform its obligations under this Schedule and as a registered broker-dealer. 
  

	IX.	RECORDS RETENTION 

 The
information that Ridge Local Affiliate generates on behalf of Client Local Affiliate are the books and records of Client Local Affiliate. Notwithstanding anything to the contrary in the Master Services Agreement, Ridge Local Affiliate will maintain
and preserve such information in accordance with the agreed-upon record retention policy set forth in Attachment G and the Laws and Rules. Any additional retention period(s) shall be directed by Client Local Affiliate and shall be
subject to the mutual written agreement of the parties. Attachment G is hereby incorporated in and made an integral part of this Schedule. 
  

	X.	GOVERNANCE 

 Ridge Local
Affiliate and Client Local Affiliate shall each appoint at least two (2) senior level managers to a joint committee that shall meet no less than monthly to address issues that may arise in connection with the performance of the Services. In
addition to the foregoing but without prejudice to the obligations of the parties under this Schedule or the Master Services Agreement, the parties have agreed to the detailed governance provisions set forth in Exhibit C to the Master
Services Agreement. 
  
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 Ridge Local Affiliate shall provide to Client Local Affiliate the reports set forth in
Attachment F. Attachment F is hereby incorporated in and made an integral part of this Schedule. 
  

	XI.	TAPE RECORDING 

 Unless
otherwise prohibited by applicable Law, the parties shall have the right to record telephone conversations between themselves, and waive any right to further notice of any such recording. The parties agree to make such recordings available to each
other upon reasonable notice. 
  

	XII.	THIRD PARTY VENDOR SERVICES 

Client Local Affiliate may contract directly with and in such case will be responsible for (i) complying with the terms and
conditions of use relating to additional third party products or services not affiliated with Ridge Local Affiliate set forth in Attachment A that it elects to receive or access through Ridge Local Affiliate from time to time and
(ii) the costs relating thereto as applicable, other than those third party products or services integrated into the Services or provided as part of the Services. If third party products or services, including, without limitation, data, are
provided by or through Ridge Local Affiliate to Client Local Affiliate or integrated into the Services or provided as part of the Services, Ridge Local Affiliate shall obtain and warrants and represents that it has the full right, title or license
required to provide such product or service to Client Local Affiliate. Additionally, Ridge Local Affiliate hereby grants to Client Local Affiliate and customers of Client Local Affiliate the right to use such product or service during, and for the
purposes of, and in accordance with, the Master Services Agreement and this Schedule. 
 Client Local Affiliate shall be
responsible for complying with the terms and conditions of use (to the extent such terms and conditions of use are provided by Ridge Local Affiliate to Client Local Affiliate) relating to the third party products or services that it receives or
accesses through Ridge Local Affiliate and the costs relating thereto. If (i) any third party products or services, or Ridge-owned products or services, provided by Ridge Local Affiliate become unavailable and require replacement,
(ii) Ridge Local Affiliate, upon notice to Client Local Affiliate (and upon Client Local Affiliate’s consent, if and to the extent such consent is required by Law), elects to replace any third party products or services or Ridge-owned
products or services provided by Ridge Local Affiliate with new or different third party products or services or Ridge-owned products or services or (iii) at least fifty percent (50%) of Ridge Local Affiliate’s clients utilizing such
products or services in the Territory request such replacement, in each case, Ridge Local Affiliate shall replace such products or services with equivalent or enhanced products or services without increased cost. 

Client Local Affiliate may contract directly with any vendor or subcontractor of Ridge Local Affiliate for the services provided by such
vendor or subcontractor through Ridge Local Affiliate; provided, however, that (a) such contract does not violate Ridge Local Affiliate’s obligations to such vendor or subcontractor and (b) Client Local Affiliate shall be responsible
for the cost of any transition services (including, without limitation, any incremental costs resulting from the transition) in connection therewith. 
  

	XIII.	OBLIGATIONS FOR RECEIPT OF DATA 

Client Local Affiliate may be using data set forth in Attachment D hereto provided by FT Interactive Data Corporation
(“FT Interactive”). In such case, Client Local Affiliate agrees to the provisions attached hereto as Attachment D relating to its use of FT Interactive Data Corporation data in respect of the Services.
Attachment D is hereby incorporated in and made an integral part of this Schedule. Client Local Affiliate shall be under no obligation to receive FT Interactive Data Corporation data through Ridge Local Affiliate and to such extent, the
previous sentence shall not apply and Ridge Local Affiliate shall not be responsible for the provision of such services to Client Local Affiliate in such case or have any liability for such non-Ridge Local Affiliate FT Interactive Data Corporation
services that Client Local Affiliate decides to receive. Ridge Local Affiliate warrants and represents that it has full right, title or license 

 
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required to provide such data to Client Local Affiliate for use in the Services. Additionally, Ridge Local Affiliate hereby grants to Client Local Affiliate the right to use and store such data
pursuant to the terms and conditions of Attachment D, for the purposes of Client Local Affiliate providing services to its customers in the course of Client Local Affiliate’s standard commercial operations. 

 

	XIV.	ACQUISITION OF OR BY ANOTHER RIDGE LOCAL AFFILIATE CLIENT 

In the event that Client Local Affiliate acquires, or is acquired by, by stock, acquisition of substantially all the assets of, merger, or
consolidation (a “Business Combination”), a Client Local Affiliate of Ridge Local Affiliate’s Brokerage Services Group that receives trade processing services substantially similar to the Services provided under this
Schedule (the “Other Entity”), and Client Local Affiliate and the Other Entity, or the resulting entity as the case may be, consolidate the trade processing carried out under this Schedule with the trade processing carried
out by the Other Entity prior to the termination or expiration of the Client Local Affiliate’s or the Other Entity’s schedule relating to trade processing services substantially similar to the Services provided under this Schedule so that
it is processed by Ridge Local Affiliate as one entity, all service charges, including, without limitation, the Base Fee and any other applicable tiered fees applicable for the brokerage processing services provided by Ridge Local Affiliate shall be
renegotiated in good faith between Ridge Local Affiliate and Client Local Affiliate. Otherwise, the Ridge Local Affiliate agreements with Client Local Affiliate and the Other Entity agreements in place prior to the Business Combination shall remain
in effect for the respective services provided by Ridge Local Affiliate or any other Ridge Local Affiliate’s Brokerage Services Group entity until the termination or expiration of such agreements. For clarity and notwithstanding anything to the
contrary, Client Local Affiliate and the Other Entity shall be free to consolidate their trade processing after the termination or expiration of either of their agreements or relevant Schedule with Ridge Local Affiliate or any entity of the Ridge
Local Affiliate Brokerage Services Group without restriction and without any obligation to renegotiate any fees relating to trade processing or otherwise. In the event Client Local Affiliate participates in a Business Combination with an entity that
is not a client of Ridge Local Affiliate’s Brokerage Services Group that receives trade processing and/or operations support services substantially similar to the Services provided under this Schedule, all rates in Attachment B
(including, without limitation, the Base Fee and any other applicable tiered fees applicable for the brokerage processing services) provided by Ridge Local Affiliate shall remain as set forth in Attachment B, subject to the adjustments
described therein. 
  

	XV.	CLIENT LOCAL AFFILIATE RESPONSIBILITIES 

Client Local Affiliate shall be responsible, to the extent necessary for the Services it is receiving, in connection with the use of the
Services for the following: 
  

	 	A.	User security administration for the Services in accordance with, and as set forth in, the relevant product specifications and user documentation.

  

	 	B.	Forms and supplies required by Ridge Local Affiliate in connection with the performance of the Services, which are agreed to by the parties in writing. Ridge Local
Affiliate shall provide Client Local Affiliate with reasonable advance notice of any such requirements. 

  

	 	C.	Equipment, other than equipment provided by Ridge Local Affiliate, at Client Local Affiliate’s location required in use of the Services (e.g., printers, terminals)
as identified by Ridge Local Affiliate in writing. 

  

	 	D.	Dial backup ISDN circuits or other equivalent backup solution selected by Client Local Affiliate. 

 

	 	E.	Third party telecommunications services not otherwise set forth in Attachment B. 

 

	 	F.	Hardware, software, and telecommunications products required to interface to the Services (e.g., terminal emulation software), other than any such hardware, software,
and telecommunications products provided by Ridge Local Affiliate. 

  

	 	G.	Special equipment, which Client Local Affiliate may elect to place at Ridge Local Affiliate locations, if required by Client Local Affiliate, specific to Client Local
Affiliate’s use of the Services as agreed to by the parties in writing. 

  

	 	H.	Use commercially reasonable efforts to obtain the approval of each relevant regulatory or self-regulatory agency or entity, if any, with regulates Client Local
Affiliate’s receipt of the Services (including, without limitation, securities and commodities exchanges, associations of securities and/or commodities dealers, federal, provincial and local Governmental Authorities). 

 
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 For the avoidance of doubt, Ridge Local Affiliate shall not be responsible for its
failure to provide Services solely to the extent caused by the failure of Client Local Affiliate to perform the above listed requirements. Ridge Local Affiliate shall (i) provide Client Local Affiliate with reasonable notice of Client Local
Affiliate’s failure to perform any of its responsibilities set forth in this Schedule and (ii) use commercially reasonable efforts to perform notwithstanding Client Local Affiliate’s failure to perform, subject to Client Local
Affiliate reimbursing Ridge Local Affiliate for any reasonable incremental cost to Ridge Local Affiliate in connection with such efforts. 
  

	XVI.	REQUIRED PROVISION OF SYBASE, INC. 

Client Local Affiliate acknowledges and agrees that the Sybase SQL Server Program and the Sybase Replication Server Program (the
“Programs”) to the extent incorporated into the Services and used in connection with Ridge Local Affiliate’s BPS Advantage product, if selected and received by Client Local Affiliate, shall only be used by the Client
Local Affiliate as set forth below to read, in a view-only format, the Services, and the Programs shall not be downloaded or used to create or alter tables, schemas or databases or otherwise develop or modify in any way the applications or
performance of other programming tasks. Notwithstanding the foregoing, Client Local Affiliate may access the Programs through Ridge Local Affiliate tools or third party tools; provided, however, that any access shall be restricted to the following:
Client Local Affiliate may access the Services embedding a copy of the Programs which are deployed on Ridge Local Affiliate’s premises or Client Local Affiliate’s site, provided, however, that in either instance, Client Local Affiliate
shall not (i) copy the application(s) embedding the Programs, (ii) use the Programs other than to process Client Local Affiliate’s own transactions, transactions for entities that are correspondents or customers of the Client Local
Affiliate and transactions for entities that operate on a fully disclosed basis through Client Local Affiliate as correspondents, or (iii) access the Programs for general development. Client Local Affiliate may also develop applications against
the BPS Advantage database using tools supplied by Ridge Local Affiliate, Sybase or other third parties. 
  

	XVII.	SEVERABILITY 

 If any
provision of this Schedule should be held invalid or unenforceable in a court of law in any jurisdiction, such invalidity or unenforceability shall not affect the enforceability of this Schedule or any other provision thereof. In addition, the
parties agree that it is their intention that such provision shall be construed in a manner designed to effectuate the purposes of this Schedule to the fullest extent enforceable under applicable Law. The parties further agree that such ruling shall
not affect the construction of that provision or any other of the provisions in any other jurisdiction. 
  

	XVIII.	DISASTER RECOVERY; BUSINESS CONTINUITY 

Ridge Local Affiliate shall maintain the disaster recovery and business continuity services as set forth in Attachment E.
Attachment E is hereby incorporated in and made an integral part of this Schedule. 
  

	XIX.	INTENTIONALLY LEFT BLANK 

  

	XX.	INTENTIONALLY LEFT BLANK 

  

	XXI.	CHANGES TO THE MASTER SERVICES AGREEMENT 

The following general changes shall be made to the Master Services Agreement when incorporating the terms and conditions of the Master
Services Agreement into this Schedule: NONE. 

*            *          
  *            * 
  

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 IN WITNESS WHEREOF the parties have executed this Schedule as of the date first written above.

  

			
	RIDGE CLEARING & OUTSOURCING SOLUTIONS LIMITED
		
	By:	 	 /s/ Joseph Barra

		 	Name: Joseph Barra
		 	Title: Director
	
	PENSON FINANCIAL SERVICES LTD.
		
	By:	 	 /s/ Philip A. Pendergraft

		 	Name: Philip A. Pendergraft
		 	Title: Director

  

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 ATTACHMENT A 

DESCRIPTION OF OUTSOURCED SERVICES 

Ridge Local Affiliate shall provide the following services to Client Local Affiliate in connection with this Schedule: 

 

	(1)	Subject to the last paragraph of this Attachment, the operational support services and functions with respect to Client Local Affiliate’s business immediately
prior to the Schedule Effective Date as set forth in Appendix 3 (the “Existing Operations Support Services”). 

  

	(2)	Subject to the last paragraph of this Attachment, all of the technology and processing services and functions that Client Local Affiliate outsourced to third parties
immediately prior to the Effective Date (provided, however, that Ridge Local Affiliate has the right to exclude certain technologies, processing services or functions in the event Ridge Local Affiliate does not offer a comparable technology,
processing service or function), including, without limitation, the services provided by the third parties set forth in Appendix 4 (the “Existing Technology Services”). 

The parties agree to work in good faith to revise Appendix 3 and Appendix 4 prior to the Closing Date in order to add or remove
in-scope Existing Operations Support Services and Existing Technology Services as deemed necessary and appropriate by Client in Client’s sole discretion; provided, however, that any such changes to Appendix 3 and Appendix 4
shall not in any event cause a reduction in the Base Fee with respect to the Existing Operations Support Services plus the Existing Technology Services (as described in Section I(1) of Attachment B-1) below U.S. [****] in the aggregate
for the Existing Operations Support Services and the Existing Technology Services provided under this Schedule and the “Service Bureau and Operations Support Services” Schedules for Canada and the U.S. 

 
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 Appendix 1 to Attachment A 

Intentionally left blank. 
  

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 Appendix 2 to Attachment A 

Intentionally left blank. 
  

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 Appendix 3 to Attachment A 

Existing Operations Support Services – U.K. 

[****] 
  

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 Appendix 4 to Attachment A 

Existing Technology Services – U.K. 

[****] 
  

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 Appendix 5 to Attachment A 

Intentionally left blank. 
  

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 ATTACHMENT B 

Service Bureau and Operations Support Services Price Schedule 

 

	1.	Charges for the Services. The charges for the Services are set forth in Attachment B-1. 

 

	2.	Changes to Schedule B. The parties agree, subject to the Change Control Procedures set forth in Exhibit C to the Master Services Agreement, that any
changes that the Client Local Affiliate makes from time to time that result in the addition or removal of specific Service functions (including, without limitation, material changes required by Applicable Law or by a regulatory body) may require
changes to the charges payable by Client Local Affiliate. 

  

	3.	Postage. Notwithstanding anything herein to the contrary, postage shall be billed to Client Local Affiliate on a pass-through basis. 

 

	4.	Customization. Any customization work shall be provided pursuant to a rate schedule to be agreed upon by the parties no later than the Closing Date.

  
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 Attachment B-1 

Base Fee and Tiered Fees 

[****] 
  

	II.	Intentionally left blank. 

[****] 
  

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 ATTACHMENT C 

SERVICE LEVELS 
  

	I.	INTRODUCTION 

 In order to maintain the
specified Service Levels for the Services set forth in Attachment C-1, the parties have agreed that certain defined Service Levels (the “SLAs”) are to be established and measured as set forth below. SLAs related
to the Services shall be established by the parties no later than [****] after the Schedule Effective Date. New Service Levels may be added during the Schedule Term, and existing Service Levels may be modified or eliminated, by the mutual agreement
of the parties from time to time. 
  

	II.	OPERATIONS 

  

	A.	General 

 Commencing on the Live Date and
subject to this Section II, Ridge Local Affiliate’s provision of the Services shall be in accordance with the Service Levels identified in Attachment C-1. 

 

	B.	Reports; Performance Review; Corrective Action 

(a) Ridge Local Affiliate shall, wherever the parties agree to use objective data, utilize continuous measurement and data capture and
shall prepare a reasonably detailed report with respect to the Service Levels) (each, a “Service Level Report”). Service Level Reports shall be provided to Client Local Affiliate on a monthly basis. 

(b) Ridge Local Affiliate and Client Local Affiliate shall meet at least quarterly to review Ridge Local Affiliate’s performance
with respect to the Services during the immediately preceding quarterly period and the Service Level Reports connected therewith, and, with respect to Ridge Local Affiliate’s failure to achieve any Service Levels, the parties shall
(1) jointly formulate a formal action plan for corrective action, as applicable, and (2) agree upon the appropriate consequences if such action plan does not prevent subsequent instances of the same Service Level failures. 

(c) The specific criteria for each Service Level shall be detailed in the applicable SLA set forth in Attachment C-1.
Prior to Live Date, the parties shall modify such Service Levels, create such additional Service Levels, or modify the method used to measure performance (including, without limitation, appropriate objective data, quality control process or other
methods) as the parties mutually agree in writing. 
 (d) [****], the parties shall measure actual Ridge Local Affiliate
performance levels in the manner previously agreed to by the parties, and review the method used to measure performance and such performance. The parties shall discuss in good faith any appropriate modifications to the method used to measure
performance, the Service Levels or any remedial steps required to be taken by Ridge Local Affiliate in light of such review and shall, at least once annually during the Schedule Term, engage in such good faith discussions to determine any
appropriate modifications to the method used to measure performance, the Service Levels or any remedial steps required to be taken by Ridge Local Affiliate in light of such review. 

 

	C.	Changes to the Service Levels 

(a) The parties acknowledge that the Service Levels shall be subject to continuous improvement and that changing circumstances may
necessitate modifications to service, expectations and responsibilities. Accordingly, the parties shall, at least once annually during the Schedule Term, engage in good faith discussions to determine if (i) any modifications to the existing
Service Levels are necessary or advisable, (ii) any existing Service Levels should be deleted and (iii) any new Service Levels should be added. 

(b) For all new Service Levels, the parties shall mutually agree upon the Service Level targets and the methodology and tools used to
measure performance. The parties shall mutually agree on any Service Level target based on [****] of measurements of the applicable Service Level utilizing the agreed upon methodology and tools.

  
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Any dispute regarding the establishment of such Service Level targets or the methodology and tools used to measure performance shall be resolved by the Executive Governance Committee. In
addition, the Executive Governance Committee shall review Service Level targets and performance and shall give weight to Client Local Affiliate’s recommendations for continuous improvement of Service Level targets, based on, among other things,
advances in technology. 
  

	D	Service Level Credits 

 The amount of
Service Level Credits credited to Client Local Affiliate with respect to all Category 1 service level failures occurring in a single month shall not exceed, in total, [****] of the monthly charges payable in connection with the Schedule for that
month (the “Service Level Credit Pool – Category 1”). The amount of Service Level Credits credited to Client Local Affiliate with respect to all other service level failures occurring in a single month shall not exceed,
in total, [****] of the monthly charges payable in connection with the Schedule for that month (the “Service Level Credit Pool – All Other Categories”, and together with the Services Level Credit Pool – Category 1,
the “Service Level Credit Pools”). The Service Level Credit Pools shall be allocated to various Service Levels as set forth in Attachment C-1. The parties shall, at least once annually during the Schedule Term, engage
in good faith discussions to determine if any modification to the allocation of the Service Level Credit Pools set forth in Attachment C-1 are necessary or advisable. 

 

	E.	Root-Cause Analysis 

 In the event Ridge
Local Affiliate has a Service Level failure that is not insignificant, Ridge Local Affiliate shall perform a root-cause analysis as described in Section 1.C of the Master Services Agreement. 

 

	F.	Excuse 

 Ridge Local Affiliate shall be
excused from performing any Service or obligation hereunder, including, without limitation, the attainment of any Service Level, if and to the extent Ridge Local Affiliate’s failure to perform such Service or obligation is caused by Client
Local Affiliate’s or its agents’ act or omission, including, without limitation, (a) Client Local Affiliate providing incomplete or inaccurate data, specifications or requirements; and (b) failures, errors or defects in
facilities, equipment, materials or other resources provided by Client Local Affiliate, including, without limitation, telecommunications, hardware, infrastructure and network connectivity. 

 
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 Attachment C-1 

SLAs 
 The parties shall
include a Service Level for development work no later than [****] after the Schedule Effective Date. 
  

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 ATTACHMENT D 

No Warranty and Limitation on Liability Provisions 

Required by Users of Third Party Data 

No Warranties 
 EXCEPT IN CONNECTION WITH
CONTRACTS OF THIRD PARTY DATA SUPPLIERS WITHOUT CONTRACTUAL RESTRICTIONS SIMILAR TO THOSE BELOW, NO THIRD PARTY DATA SUPPLIERS MAKE ANY WARRANTIES, EXPRESS OR IMPLIED, AS TO MERCHANTABILITY, FITNESS OR ANY OTHER MATTER. 

Limitation on Liability 
 (a) No third
party data supplier shall have any liability to Client Local Affiliate, or any other third party, for errors, omissions or malfunctions in the services provided by such third party data supplier, other than the obligation to endeavor, upon receipt
of notice from Client Local Affiliate, to correct a malfunction, error, or omission in any such services. 
 (b) Client Local Affiliate
acknowledges that the services provided by any third party data supplier are intended for use as an aid to institutional investors, registered brokers or professionals of similar sophistication in making informed judgments concerning securities.

 Client Local Affiliate accepts responsibility for, and acknowledges it exercises its own independent judgment in, its selection of any of the
services provided by any third party data supplier, its selection of the use or intended use of such, and any results obtained. Nothing contained herein shall be deemed to be a waiver of any rights existing under applicable law for the protection of
investors. 
 (c) Client Local Affiliate shall indemnify Ridge Local Affiliate’s third party data suppliers (including, without limitation,
FT Interactive) against and hold such third party data suppliers harmless from any and all losses, damages, liability, costs, including, without limitation, attorney’s fees, resulting directly or indirectly from any claim or demand against such
third party data suppliers by a third party arising out of or related to the accuracy or completeness of any services received by Client Local Affiliate, or any data, information, service, report, analysis or publication derived therefrom. No third
party data supplier shall be liable for any claim or demand against Client Local Affiliate by a third party. 
 (d) As between a third party
data supplier and Client Local Affiliate, neither party shall be liable for (i) any special, indirect or consequential damages (even if advised of the possibility of such), (ii) any delay by reason of circumstances beyond its control,
including, without limitation, acts of civil or military authority, national emergencies, labor difficulties, fire, mechanical breakdown, flood or catastrophe, acts of God, insurrection, war, riots, or failure beyond its control of transportation or
power supply, or (iii) any claim that arose more than one (1) year prior to the institution of suit therefor. 
  

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 ATTACHMENT E 

DISASTER RECOVERY; BUSINESS CONTINUITY 

To be agreed upon by the parties within [****] after the Schedule Effective Date. 

 
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 ATTACHMENT F 

REPORTS 
 To be agreed
upon by the parties within [****] after the Schedule Effective Date. 
  

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 ATTACHMENT G 

RECORD RETENTION POLICY 

To be agreed upon by the parties within [****] after the Schedule Effective Date. 

 
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