Document:

Ex-10.1 Amendment No. 2

 

EXHIBIT 10.1

AMENDMENT NO. 2

     THIS AMENDMENT NO. 2, dated as of April 17, 2008 (this “Amendment”), of that certain
Credit Agreement referenced below is by and among HEALTHCARE REALTY TRUST INCORPORATED, a Maryland
corporation (the “Borrower”), the Lenders and BANK OF AMERICA, N.A., as Administrative
Agent. Capitalized terms used but not otherwise defined herein shall have the meanings provided in
the Credit Agreement.

W I T N E S S E T H

     WHEREAS, a $400 million revolving credit facility has been established in favor of the
Borrower pursuant to the terms of that Credit Agreement dated as of January 25, 2006, as amended by
Amendment No. 1 and Consent dated as of March 16, 2007 (as amended and modified, the “Credit
Agreement”), among the Borrower, the Lenders identified therein, and Bank of America, N.A., as
Administrative Agent;

     WHEREAS, the Borrower has requested certain consent with respect to, and modification of,
certain terms of the Credit Agreement; and

     WHEREAS, the Lenders have agreed to the requested consent and modification on the terms and
conditions set forth herein;

     NOW, THEREFORE, in consideration of these premises and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

     1. Amendments to Credit Agreement. The Credit Agreement is hereby amended in the
following respects:

     1.1 Defined Terms.

     (a) The following defined term is hereby added to Section 1.01:

     “Amendment No. 2 Effectiveness Date” means the date of Amendment No. 2
to this Credit Agreement, being April 17, 2008.

     (b) The following defined term is hereby amended and restated in its entirety to read
as follows:

     “Consolidated Leverage Ratio” means the ratio of Consolidated Total
Debt to the sum of (a) Consolidated Total Capital plus (b) accumulated
depreciation determined on a consolidated basis in accordance with GAAP.

     1.2 Consolidated Tangible Net Worth. Subsection (f) of Section 6.16 is hereby amended
and restated in its entirety to read as follows:

     (f) Consolidated Tangible Net Worth. Permit Consolidated Tangible Net Worth as
of the end of any fiscal quarter to be less than the sum of (i) $520 million, plus
(ii) an amount equal to 85% of the net cash proceeds received from Equity Transactions
occurring after the Amendment No. 2 Effectiveness Date.

4

 

     1.3 Schedules to Credit Agreement. Schedule 5.07 (Material Subsidiaries and Specified
Affiliates) and Schedule 5.12 (Indebtedness) to the Credit Agreement are amended to read as
Schedule 5.07 and Schedule 5.12 attached hereto, respectively.

     2. Conditions Precedent. This Amendment shall be effective immediately upon receipt
by the Administrative Agent of each of the following:

     (a) counterparts of this Amendment duly executed by the Borrower, the Administrative
Agent and the Required Lenders; and

     (b) an amendment fee, for the benefit of each Lender consenting to this Amendment, in
an amount equal to eight basis points (0.08%) of the aggregate Commitments of each such
consenting Lender and all other fees due in connection herewith, which fees shall be deemed
fully earned on the Amendment No. 2 Effectiveness Date.

     3. Effectiveness of Amendment. Upon satisfaction of the condition precedent set forth
in Section 2 hereof, all references to the Credit Agreement in each of the Credit Documents
shall hereafter mean the Credit Agreement as amended by this Amendment. Except as specifically
amended hereby or otherwise agreed, the Credit Agreement is hereby ratified and confirmed and shall
remain in full force and effect according to its terms.

     4. Representations and Warranties; Defaults. The Borrower affirms the following:

     (a) all necessary action to authorize the execution, delivery and performance of this
Amendment has been taken;

     (b) after giving effect to this Amendment, the representations and warranties set forth
in the Credit Agreement and the other Credit Documents are true and correct in all material
respects as of the date hereof (except those which expressly relate to an earlier period);
and

     (c) after giving effect to this Amendment, no Default or Event of Default shall exist.

     5. Full Force and Effect. Except as modified hereby, all of the terms and provisions
of the Credit Agreement and the other Credit Documents (including schedules and exhibits thereto)
shall remain in full force and effect.

     6. Expenses. The Borrower agrees to pay all reasonable costs and expenses of the
Administrative Agent in connection with the preparation, execution and delivery of this Amendment,
including the reasonable fees and expenses of Moore & Van Allen, PLLC.

     7. Counterparts. This Amendment may be executed in any number of counterparts, each
of which when so executed and delivered shall be deemed an original, and it shall not be necessary
in making proof of this Amendment to produce or account for more than one such counterpart.

     8. Governing Law. This Amendment shall be governed by, and construed in accordance
with, the law of the State of North Carolina applicable to agreements made and to be performed
entirety within such state; provided that the Administrative Agent and each Lender shall retain all
rights arising under federal law.

5

 

     IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Amendment to
be duly executed and delivered as of the date first above written.

	 	 	 	 	 
	BORROWER:	HEALTHCARE REALTY TRUST

    INCORPORATED

 	 
	 	By:  	/s/ Scott W. Holmes
 	 
	 	 	Name:  	Scott W. Holmes 	 
	 	 	Title:  	Executive Vice President and Chief Financial
Officer 	 
	 

HEALTHCARE
REALTY TRUST INCORPORATED
AMENDMENT NO. 2

 

 

	 	 	 	 	 
	ADMINISTRATIVE AGENT:	BANK OF AMERICA, N.A.,

as Administrative Agent

 	 
	 	By:  	/s/ Jill Hogan
 	 
	 	 	Name:  	Jill Hogan 	 
	 	 	Title:  	Vice President 	 
	 

HEALTHCARE
REALTY TRUST INCORPORATED
AMENDMENT NO. 2

 

 

	 	 	 	 	 
	LENDERS:	BANK OF AMERICA, N.A., as L/C Issuer, Swing Line

Lender and as a Lender

 	 
	 	By:  	/s/ Jill Hogan
 	 
	 	 	Name:  	Jill Hogan 	 
	 	 	Title:  	Vice President 	 
	 

HEALTHCARE
REALTY TRUST INCORPORATED
AMENDMENT NO. 2

 

 

	 	 	 	 	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Cynthia A. Bean
 	 
	 	 	Name:  	Cynthia A. Bean 	 
	 	 	Title:  	Vice President 	 
	 

HEALTHCARE
REALTY TRUST INCORPORATED
AMENDMENT NO. 2

 

 

	 	 	 	 	 
	 	UBS LOAN FINANCE LLC

 	 
	 	By:  	/s/ Irja R. Otsa
 	 
	 	 	Name:  	Irja R. Otsa 	 
	 	 	Title:  	Associate Director 	 
	 
	 	 	 
	 	By:  	                                              /s/ Mary E. Evans
 	 
	 	 	Name:  	Mary E. Evans 	 
	 	 	Title:  	Associate Director 	 
	 

HEALTHCARE
REALTY TRUST INCORPORATED
AMENDMENT NO. 2

 

 

	 	 	 	 	 
	 	CALYON NEW YORK BRANCH

 	 
	 	By:  	/s/ Jonathan Rollins
 	 
	 	 	Name:  	Jonathan Rollins 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	                                              /s/ Priya Vrat
 	 
	 	 	Name:  	Priya Vrat 	 
	 	 	Title:  	Director 	 
	 

HEALTHCARE
REALTY TRUST INCORPORATED
AMENDMENT NO. 2

 

 

	 	 	 	 	 
	 	LASALLE BANK NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Jill Hogan
 	 
	 	 	Name:  	Jill Hogan 	 
	 	 	Title:  	Vice President 	 
	 

HEALTHCARE
REALTY TRUST INCORPORATED
AMENDMENT NO. 2

 

 

	 	 	 	 	 
	 	KEYBANK NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Nicolas Caussade
 	 
	 	 	Name:  	Nicolas Caussade 	 
	 	 	Title:  	Vice President 	 
	 

HEALTHCARE
REALTY TRUST INCORPORATED
AMENDMENT NO. 2

 

 

	 	 	 	 	 
	 	SUNTRUST BANK

 	 
	 	By:  	/s/ Helen C. Hartz
 	 
	 	 	Name:  	Helen C. Hartz 	 
	 	 	Title:  	Vice President 	 
	 

HEALTHCARE
REALTY TRUST INCORPORATED
AMENDMENT NO. 2

 

 

	 	 	 	 	 
	 	REGIONS BANK

 	 
	 	By:  	/s/ Craig Gardella
 	 
	 	 	Name:  	Craig Gardella 	 
	 	 	Title:  	Senior Vice President 	 
	 

HEALTHCARE
REALTY TRUST INCORPORATED
AMENDMENT NO. 2

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, NATIONAL

   ASSOCIATION

 	 
	 	By:  	/s/ Vanessa Chiu
 	 
	 	 	Name:  	Vanessa Chiu 	 
	 	 	Title:  	Vice President 	 
	 

HEALTHCARE
REALTY TRUST INCORPORATED
AMENDMENT NO. 2

 

 

	 	 	 	 	 
	 	FIFTH THIRD BANK, N.A.

 	 
	 	By:  	/s/ John Strimpolla
 	 
	 	 	Name:  	John Strimpolla 	 
	 	 	Title:  	Vice President 	 
	 

HEALTHCARE
REALTY TRUST INCORPORATED
AMENDMENT NO. 2

 

 

	 	 	 	 	 
	 	PINNACLE NATIONAL BANK

 	 
	 	By:  	/s/ Todd Carter
 	 
	 	 	Name:  	Todd Carter 	 
	 	 	Title:  	Senior Vice President 	 
	 

HEALTHCARE
REALTY TRUST INCORPORATED
AMENDMENT NO. 2

 

 

Schedule 5.07

MATERIAL SUBSIDIARIES AND SPECIFIED AFFILIATES

As of December 31, 2007:

	 	 	 	 	 
	SUBSIDIARIES OF HEALTHCARE REALTY TRUST INCORPORATED
	ENTITY	 	INCORPORATED	 	QUALIFIED
	Healthcare Realty Services
Incorporated — 1,000 shares
of Common Stock, $.01 par
value, 100% owned by Borrower

	 	Alabama
	 	Arizona

California

Colorado

Connecticut

District of Columbia

Florida

Georgia

Hawaii

Illinois

Kansas

Louisiana

Maryland

Michigan

Mississippi

Missouri

Nevada

Oklahoma

Pennsylvania

Tennessee

Texas

Virginia

Wyoming
	 
	 	 	 	 
	HRT of Roanoke, Inc.

1,000 shares of Common Stock,
$1.00 par value, 100% owned
by Borrower

	 	Virginia	 	 
	 
	 	 	 	 
	Pennsylvania HRT, Inc.

1,000 shares of Common Stock,
$.01 par value, 100% owned by
Borrower

	 	Pennsylvania	 	 
	 
	 	 	 	 
	HR Acquisition I Corporation
- 10 shares of Common Stock,
$.01 par value, 100% owned by
Borrower

	 	Maryland
	 	Alabama

Arizona

Arkansas

California

Connecticut

Florida

Georgia

Hawaii

Illinois

Michigan

Missouri

Mississippi

North Carolina

New Jersey

Nevada

Ohio

Oklahoma

South Carolina

3

 

	 	 	 	 	 
	SUBSIDIARIES OF HEALTHCARE REALTY TRUST INCORPORATED
	ENTITY	 	INCORPORATED	 	QUALIFIED
	 

	 	 	 	Tennessee

Virginia

Washington

Wyoming

	 
	 	 	 	 
	HRT of Illinois, Inc.

1,000 shares of Common Stock,
$1.00 par value, 100% owned
by Borrower

	 	Delaware
	 	Illinois
	 
	 	 	 	 
	HRT of Tennessee, Inc.

1,000 shares of Common Stock,
$.01 par value, 100% owned by
Borrower

	 	Tennessee	 	 
	 
	 	 	 	 
	HRT of Alabama, Inc.

100,000 shares of Common
Stock, $.01 par value, 100%
owned by Borrower

	 	Alabama	 	 
	 
	 	 	 	 
	San Antonio SSP, Ltd. 
(1%
general partnership interest
held by HR of San Antonio,
Inc. and 24.3% limited
partnership interest held by
HR Interests, Inc.)

	 	Texas	 	 

[SCHEDULE 5.07 CONTINUES ON THE FOLLOWING PAGE]

4

 

Schedule 5.07 (Continued)

Subsidiaries of HR Acquisition I Corporation (HRAIC)

Set forth below is a complete and accurate list of all of the Material Subsidiaries of HRAIC, a
100% wholly owned Subsidiary of the Borrower.

	 	 	 	 	 
	SUBSIDIARIES OF HR Acquisition I Corporation (HRAIC)
	ENTITY	 	INCORPORATED	 	QUALIFIED
	HR
Acquisition of Pennsylvania, Inc. 

1,000 shares of Common Stock, $.01
par value, 100% owned by HRAIC

	 	Pennsylvania	 	 
	 
	 	 	 	 
	HR of Los Angeles, Ltd.

(66.67% interest owned by HRAIC)

	 	Alabama
	 	California
	 
	 	 	 	 
	HR of Las Vegas, Ltd.
 (99% interest
owned by HRAIC)

	 	Alabama
	 	Texas

Nevada
	 
	 	 	 	 
	HR Acquisition of San Antonio, Ltd.

(99% interest owned by HRAIC)

	 	Alabama
	 	Texas
	 
	 	 	 	 
	HRT Properties of Texas, Ltd.

(99% interest owned by HRAIC)

	 	Texas	 	 
	 
	 	 	 	 
	HR of Sarasota, Ltd. (99% interest
owned by HRAIC)

	 	Alabama
	 	Florida

5

 

Schedule 5.12

INDEBTEDNESS

Other than as set forth below, there is no material Debt of the Borrower and its Material
Subsidiaries outstanding as of the date indicated.

	 	 	 	 	 	 	 	 	 
	 	     As of December 31, 2005	     As of February 29, 2008
	Senior Notes due 2014
	 	$	300,000,000	 	 	$	300,000,000	 
	 
	Senior Notes due 2011
	 	$	300,000,000	 	 	$	300,000,000	 
	 
	Senior Notes due 2006
	 	$	29,400,000	 	 	 	-0-	 
	 
	$300 million Line of Credit due 2006
	 	$	73,000,000	 	 	$	132,000,000	 
	 
	Mortgage Notes payable with various Maturities
	 	$	70,709,000	 	 	$	48,848,251	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	$	773,109,000	 	 	$	780,848,251	 
	 
	 	 	 	 	 	 

6exv10w1

 

EXECUTION COPY

Exhibit 10.1

INVESTMENT AGREEMENT

By and Between

LEUCADIA NATIONAL CORPORATION

and

JEFFERIES GROUP, INC.

Dated as of April 20, 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	Section 1.01. Definitions
	 	 	1	 
	 
	 	 	 	 
	Section 1.02. General Interpretive Principles
	 	 	3	 
	 
	 	 	 	 
	ARTICLE II SALE AND PURCHASE OF THE SECURITIES
	 	 	3	 
	 
	 	 	 	 
	Section 2.01. Sale and Purchase of the Securities
	 	 	3	 
	 
	 	 	 	 
	Section 2.02. Closing
	 	 	3	 
	 
	 	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES
	 	 	4	 
	 
	 	 	 	 
	Section 3.01. Representations and Warranties of Jefferies
	 	 	4	 
	 
	 	 	 	 
	Section 3.02. Representations and Warranties of Leucadia
	 	 	8	 
	 
	 	 	 	 
	ARTICLE IV ADDITIONAL AGREEMENTS OF THE PARTIES
	 	 	12	 
	 
	 	 	 	 
	Section 4.01. Taking of Necessary Action
	 	 	12	 
	 
	 	 	 	 
	Section 4.02. Securities Laws; Legends
	 	 	12	 
	 
	 	 	 	 
	Section 4.03. Regulatory Matters
	 	 	13	 
	 
	 	 	 	 
	Section 4.04. Share Listing
	 	 	14	 
	 
	 	 	 	 
	Section 4.05. Registration Rights Agreement; Letter Agreement
	 	 	14	 
	 
	 	 	 	 
	ARTICLE V ADDITIONAL AGREEMENTS
	 	 	14	 
	 
	 	 	 	 
	Section 5.01. Leucadia Closing Deliverables
	 	 	14	 
	 
	 	 	 	 
	Section 5.02. Jefferies Closing Deliverables
	 	 	14	 
	 
	 	 	 	 
	ARTICLE VI MISCELLANEOUS
	 	 	14	 
	 
	 	 	 	 
	Section 6.01. Survival of Representations and Warranties
	 	 	14	 
	 
	 	 	 	 
	Section 6.02. Notices
	 	 	14	 
	 
	 	 	 	 
	Section 6.03. Entire Agreement; Third Party Beneficiaries; Amendment
	 	 	15	 
	 
	 	 	 	 
	Section 6.04. Counterparts
	 	 	16	 
	 
	 	 	 	 
	Section 6.05. Governing Law
	 	 	16	 
	 
	 	 	 	 
	Section 6.06. Public Announcements
	 	 	16	 
	 
	 	 	 	 
	Section 6.07. Expenses
	 	 	16	 
	 
	 	 	 	 
	Section 6.08. Successors and Assigns
	 	 	16	 
	 
	 	 	 	 
	Section 6.09. Remedies; Waiver
	 	 	16	 
	 
	 	 	 	 
	Section 6.10. Consent to Jurisdiction
	 	 	16	 
	 
	 	 	 	 
	Section 6.11. Severability
	 	 	17	 
	 
	 	 	 	 
	Section 6.12. Headings
	 	 	17	 

 

 

Exhibits

A — Form of Standstill Agreement

 

 ii

 

 

INVESTMENT AGREEMENT

     INVESTMENT AGREEMENT (the “Agreement”), dated as of April 20, 2008 , by and between
Leucadia National Corporation, a New York corporation (“Leucadia”), and Jefferies Group,
Inc., a Delaware corporation (“Jefferies”). Capitalized terms not otherwise defined where
used shall have the meanings ascribed thereto in Article I.

     WHEREAS, Jefferies has agreed to purchase, and Leucadia has agreed to sell, subject to the
terms and conditions of this Agreement, the Leucadia Shares (as defined below) in exchange for the
Jefferies Shares (as defined below) and cash;

     WHEREAS, Jefferies and Leucadia desire to set forth certain agreements herein.

     NOW THEREFORE, in consideration of the premises and the representations, warranties and
agreements herein contained and intending to be legally bound hereby, the parties hereby agree as
follows:

ARTICLE I

Definitions

     Section 1.01. Definitions. As used in this Agreement, the following terms shall have
the meanings set forth below:

     “Affiliate” or “affiliate” shall mean, with respect to any Person, any other
Person which directly or indirectly controls or is controlled by or is under common control with
such Person. As used in this definition, “control” (including its correlative meanings,
“controlled by” and “under common control with”) shall mean possession, directly or indirectly, of
power to direct or cause the direction of management or policies (whether through ownership of
securities or partnership or other ownership interests, by contract or otherwise). To the extent
that any such term is used in relation to or in connection with any statute and the definition of
such term in such statute is broader or different, then, in such context, such term shall have the
meaning set forth in such statute.

     “Agreement” shall have the meaning set forth in the preamble hereto.

     “Ancillary Documents” shall mean the Standstill Agreement and the Registration Rights
Agreements.

     “Closing” and “Closing Date” shall have their meanings set forth in Section
2.02(a).

     “DGCL” shall mean the Delaware General Corporation Law.

     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

     “GAAP” shall mean generally accepted accounting principles in the United States of
America.

 

 

     “Governmental Entity” shall mean any court, administrative agency or commission or
other governmental authority or instrumentality, whether federal, state, local or foreign, and any
applicable industry self-regulatory organization.

     “HSR Act” shall mean the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
amended.

     “Jefferies” shall have the meaning set forth in the preamble hereto.

     “Jefferies Common Stock” shall mean the common stock, par value $.0001 per share, of
Jefferies.

     “Jefferies Shares” shall have the meaning set forth in Section 2.01.

     “Leucadia” shall have the meaning set forth in the preamble hereto.

     “Leucadia Common Stock” shall mean the common shares, par value $1.00 per share, of
Leucadia.

     “Leucadia Shares” shall have the meaning set forth in Section 2.01.

     “Leucadia Voting Debt” shall have the meaning set forth in Section 3.02(e).

     “Material Adverse Effect” shall mean any material adverse effect on (a) the financial
condition, results of operations, assets, liabilities or business of Jefferies and its Subsidiaries
taken as a whole or Leucadia and its Subsidiaries taken as a whole, as the case may be,
(provided, however, that, with respect to this clause (a), a “Material Adverse
Effect” shall not be deemed to include any effects to the extent resulting from (i) changes, after
the date hereof, in generally accepted accounting principles or regulatory accounting requirements
applicable to banks or savings associations and their holding companies generally, (ii) changes,
after the date hereof, in laws, rules or regulations of general applicability or interpretations
thereof by Governmental Entities, (iii) actions or omissions of Jefferies taken with the prior
written consent of Leucadia or actions or omissions of Leucadia taken with the prior written
consent of Jefferies, as the case may be, or (iv) changes, after the date hereof, in general
economic or market conditions generally affecting the other companies in the industries in which
Jefferies and its Subsidiaries, or Leucadia and its Subsidiaries, as the case may, operate, except,
with respect to clauses (i), (ii) and (iv), to the extent that the effects of such changes are
disproportionately adverse to the financial condition, results of operations, assets, liabilities
or business of Jefferies and its Subsidiaries, taken as a whole, or Leucadia and its Subsidiaries,
taken as a whole), (b) the ability of Jefferies or Leucadia to perform its respective obligations
under this Agreement or the Ancillary Documents or (c) the validity or enforceability of this
Agreement or any of the Ancillary Documents or the rights or remedies of Jefferies or Leucadia
hereunder and thereunder.

     “NYSE” shall mean the New York Stock Exchange.

     “Person” or “person” shall mean an individual, corporation, association,
partnership, group (as such term is used in Section 13(d)(3) of the Exchange Act), trust, joint
venture,

2

 

business trust or unincorporated organization, or a government or any agency or political
subdivision thereof.

     “Registration Rights Agreements” shall mean the separate registration rights
agreements to be executed by Jefferies and Leucadia, which shall each be consistent with the terms
set forth in Annex A to Exhibit A of this Agreement.

     “Reports” shall mean all periodic reports, registration statements and proxy
statements, together with any amendments required to be made with respect thereto, that were
required to be filed with the SEC under the Securities Act or the Exchange Act.

     “SEC” shall mean the United States Securities and Exchange Commission.

     “Securities Act” shall mean the Securities Act of 1933, as amended.

     “Standstill Agreement” shall mean the standstill agreement executed by Jefferies and
Leucadia at the Closing, which shall be in the form attached hereto as Exhibit A.

     “Subsidiary” shall mean those certain entities listed on Exhibit 21 to the most recent
Annual Report on Form 10-K as filed with the SEC by Jefferies or Leucadia, as the case may be.

     “Transactions” shall have the meaning set forth in Section 3.01(c).

     Section 1.02. General Interpretive Principles. Whenever used in this Agreement,
except as otherwise expressly provided or unless the context otherwise requires, any noun or
pronoun shall be deemed to include the plural as well as the singular and to cover all genders.
The name assigned this Agreement and the section captions used herein are for convenience of
reference only and shall not be construed to affect the meaning, construction or effect hereof.
Whenever the words “include,” “includes,” or “including” are used in this Agreement, they shall be
deemed to be followed by the words “without limitation.” Unless otherwise specified, the terms
“hereto,” “hereof,” “herein” and similar terms refer to this Agreement as a whole (including the
exhibits, schedules and disclosure statements hereto), and references herein to Articles or
Sections refer to Articles or Sections of this Agreement.

ARTICLE II

Sale and Purchase of the Securities

     Section 2.01. Sale and Purchase of the Securities. Subject to all of the terms and
conditions of this Agreement, and in reliance upon the representations and warranties hereinafter
set forth, at the Closing provided for in Section 2.02 hereof, Leucadia will sell to Jefferies, and
Jefferies will purchase from Leucadia, 10,000,000 shares of Leucadia Common Stock (the
“Leucadia Shares”), for an aggregate purchase price of (i) $100,021,353 and (ii) 26,585,310
shares of Jefferies Common Stock (the “Jefferies Shares”).

     Section 2.02. Closing. (a) Subject to the satisfaction or waiver of the conditions
set forth in this Agreement, the purchase and sale of the Leucadia Shares hereunder (the
“Closing”) shall take place at the offices of Morgan, Lewis & Bockius LLP at 101 Park
Avenue, New York,

3

 

New York 10178, on April 21, 2008 beginning at 9 A.M. (New York time) or such other place and
date as the parties hereto may agree upon (the date that the Closing occurs, the “Closing
Date”).

     (b) At the Closing: (i) Leucadia will deliver to Jefferies certificates for the Leucadia
Shares registered in the name of Jefferies or its nominee; (ii) Jefferies, in full payment for the
Leucadia Shares, will deliver to Leucadia immediately available funds, by wire transfer to such
account as Leucadia shall specify, in the amount of $100,021,353 and certificates for the Jefferies
Shares registered in the name of Leucadia or its nominee; and (iii) each party shall take or cause
to happen such other actions, and shall execute and deliver such other instruments or documents, as
shall be required under Article V.

ARTICLE III

Representations and Warranties

     Section 3.01. Representations and Warranties of Jefferies. Except as disclosed in the
Reports filed with or furnished to the SEC by Jefferies prior to the date hereof, Jefferies
represents and warrants to, and agrees with, Leucadia, as of the date hereof (or as of such earlier
date in the case of any representation or warranty expressly made as of an earlier date), as
follows:

     (a) Organization and Good Standing of Jefferies; Organizational Documents. Jefferies
is duly incorporated, validly existing and in good standing under the laws of the State of Delaware
and has all requisite corporate power and authority and governmental authorizations to own, operate
and lease its properties and to carry on its business as it is being conducted on the date of this
Agreement. Jefferies is duly licensed or qualified as a foreign corporation for the transaction of
business and is in good standing under the laws of each other jurisdiction in which it owns or
leases properties, or conducts any business, so as to require such qualification, except where the
failure to be so licensed or qualified in any such jurisdiction would not reasonably be expected to
have a Material Adverse Effect.

     (b) Organization of Subsidiaries. Each Subsidiary of Jefferies is duly incorporated
and validly existing under the laws of its jurisdiction of organization, and has all requisite
corporate power and authority and governmental authorizations to own, operate and lease its
properties and to carry on its business as it is now being conducted, and is duly licensed or
qualified to do business in each other jurisdiction in which it owns or leases properties, or
conducts any business, so as to require such qualification, except where the failure to be so
authorized, licensed or qualified in any such jurisdiction, individually or in the aggregate, would
not reasonably be expected to have a Material Adverse Effect.

     (c) Authorization; No Conflicts. (i) Jefferies has full corporate power and
authority to execute and deliver this Agreement and the Ancillary Documents and to consummate the
transactions contemplated hereby and thereby (the “Transactions”). The execution, delivery
and performance by Jefferies of this Agreement and each Ancillary Document and the consummation of
the Transactions have been duly authorized by the Board of Directors of Jefferies. No other
corporate proceedings on the part of Jefferies are necessary to authorize the execution, delivery

4

 

and performance by Jefferies of this Agreement and each Ancillary Document and consummation of
the Transactions. This Agreement has been, and at or prior to the Closing or at such time as such
Ancillary Document is entered into, each Ancillary Document to which it is a party will be, duly
and validly executed and delivered by Jefferies. This Agreement is, and upon its execution at or
prior to the Closing or at such time as such Ancillary Document is entered into, each Ancillary
Document to which it is a party will be, a valid and binding obligation of Jefferies, enforceable
against it in accordance with its terms.

     (ii) The execution, delivery and performance of this Agreement and the Ancillary Documents,
the consummation by Jefferies of the Transactions and the compliance by Jefferies with any of the
provisions hereof and thereof will not conflict with, violate or result in a breach of any
provision of, or constitute a default (or an event which, with notice or lapse of time or both
would constitute a default) under, or result in the termination of or accelerate the performance
required by, or result in a right of termination or acceleration under, (A) any provision of the
Amended and Restated Certificate of Incorporation or By-laws of Jefferies or the certificate of
incorporation, charter, by-laws or other governing instrument of any Subsidiary of Jefferies or (B)
any mortgage, note, indenture, deed of trust, lease, loan agreement or other agreement or
instrument or any permit, concession, grant, franchise, license, judgment, order, decree, ruling,
injunction, statute, law, ordinance, rule or regulation applicable to Jefferies or any of its
Subsidiaries or any of their respective properties or assets.

     (d) Consents. No consent, approval, order or authorization of, or registration,
declaration or filing with, any Governmental Entity is required on the part of Jefferies or any of
its Subsidiaries in connection with the execution, delivery and performance by Jefferies of this
Agreement and the Ancillary Documents to which it is a party and the consummation by Jefferies of
the Transactions.

     (e) Capitalization. The authorized capital stock of Jefferies consists of (i)
500,000,000 shares of Jefferies Common Stock of which, as of April 18, 2008, 133,059,610 shares
were issued and outstanding and (ii) 10,000,000 shares of preferred stock, par value $.0001, of
Jefferies, of which 125,000 shares, designated as 3.25% Series A Cumulative Convertible Preferred
Stock, were issued and outstanding as of April 18, 2008. As of April 18, 2008, Jefferies held
31,542,113 shares of Jefferies Common Stock in its treasury. As of December 31, 2007 there were
38,426,001 shares of Jefferies Common Stock reserved for issuance in connection with employee
benefit, stock option and dividend reinvestment and stock purchase plans and 23,733,127 shares of
Jefferies Common Stock remaining available for future issuance under such employee benefit, stock
option and dividend reinvestment and stock purchase plans. As of the three months ended December
31, 2007 and March 31, 2008, the weighted average number of shares of Jefferies Common Stock
outstanding (basic and diluted treasury method) was 140,726,000 and 141,784,000, respectively. All
of the issued and outstanding shares of Jefferies capital stock have been duly and validly
authorized and issued and are fully paid and nonassessable, and are not subject to preemptive
rights. No bonds, debentures, notes or other indebtedness having the right to vote on any matters
on which the stockholders of Jefferies may vote (“Jefferies Voting Debt”) are issued and
outstanding. Other than as set forth in this subsection (e) or pursuant to this Agreement or the
Certificate of Designations for the 3.25% Series A Cumulative Convertible Preferred Stock, (A) no
equity securities or Jefferies Voting Debt of Jefferies are or may be required to be issued by
reason of

5

 

any options, warrants, rights to subscribe to, calls or commitments of any character
whatsoever, (B) there are outstanding no securities or rights convertible into or exchangeable for
any equity securities or Jefferies Voting Debt of Jefferies and (C) there are no contracts,
commitments, understandings or arrangements by which Jefferies is bound to issue additional equity
securities or Jefferies Voting Debt or options, warrants or rights to purchase or acquire any
additional equity securities or Jefferies Voting Debt.

     (f) Reports; Financial Statements; Controls.

     (i) Since January 1, 2005, Jefferies has filed all Reports, and has paid all fees and
assessments due and payable in connection therewith. As of their respective dates, the Reports
complied in all material respects with applicable requirements of the Securities Act or the
Exchange Act and the published rules and regulations of the SEC and did not as of the date of
filing thereof with the SEC contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary in order to make the statements therein,
in light of the circumstances under which they were made, not misleading.

     (ii) Each of the consolidated balance sheets, and the related consolidated statements of
income, changes in stockholders’ equity and cash flows, included in the Reports filed with the SEC
under the Exchange Act fairly present in all material respects the consolidated financial position
of Jefferies and its consolidated Subsidiaries as of the dates shown and the results of the
consolidated operations, changes in stockholders’ equity and cash flows of Jefferies and its
consolidated Subsidiaries for the respective fiscal periods or as of the respective dates therein
set forth, subject, in the case of any unaudited financial statements, to normal recurring year-end
audit adjustments, complied as to form, as of their respective dates of filing with the SEC, in all
material respects with applicable accounting requirements and with the published rules and
regulations of the SEC with respect thereto and have been prepared in accordance with GAAP
consistently applied during the periods involved, except as otherwise set forth in the notes
thereto.

     (iii) Jefferies (A) has implemented and maintains disclosure controls and procedures (as
defined in Rule 13a-15(e) of the Exchange Act) to ensure that material information relating to
Jefferies, including its consolidated Subsidiaries, is made known to the chief executive officer
and the chief financial officer of Jefferies by others within those entities, and (B) has
disclosed, based on its most recent evaluation prior to the date hereof, to Jefferies outside
auditors and the audit committee of Jefferies Board of Directors (x) any significant deficiencies
and material weaknesses in the design or operation of internal controls over financial reporting
(as defined in Rule 13a-15(f) of the Exchange Act) that are reasonably likely to adversely affect
Jefferies ability to record, process, summarize and report financial information and (y) any fraud,
whether or not material, that involves management or other employees who have a significant role in
Jefferies internal controls over financial reporting.

     (g) Absence of Certain Changes. Since January 1, 2008 until the date hereof, and
except as publicly disclosed by Jefferies in the Reports filed by it with the SEC and publicly
available prior to the date hereof, and except for its results of operations for the three month
period ended March 31, 2008 previously disclosed to Leucadia, (i) Jefferies and its Subsidiaries
have conducted their respective businesses in all material respects in the ordinary course,

6

 

consistent with prior practice, (ii) except for publicly disclosed ordinary dividends on the
Jefferies Common Stock and the 3.25% Series A Cumulative Convertible Preferred Stock, Jefferies has
not made or declared any distribution in cash or in kind to its stockholders or issued any shares
of its capital stock or other equity interests and (iii) no event or events have occurred that,
individually or in the aggregate, has had or would reasonably be expected to have a Material
Adverse Effect.

     (h) No Undisclosed Liabilities, etc. Neither Jefferies nor its Subsidiaries has any
liabilities or obligations of any nature (absolute, accrued, contingent or otherwise) which are not
fully reflected or reserved against in the financial statements described in Section 3.01(f),
except for liabilities that have arisen since December 31, 2007 in the ordinary and usual course of
business and consistent with past practice and that, individually or in the aggregate, have not had
and would not reasonably be expected to have a Material Adverse Effect.

     (i) Compliance with Applicable Law. Each of Jefferies and its Subsidiaries holds all
licenses, franchises, permits and authorizations necessary for the lawful conduct of its business
under, and has complied in all material respects and is not in default or violation in any respect
of, any law, statute, order, rule, regulation, policy or guideline of any Federal, state or local
governmental authority applicable to Jefferies or such Subsidiary, other than such non-compliance,
defaults or violations that, individually or in the aggregate, have not had and would not
reasonably be expected to have a Material Adverse Effect.

     (j) Legal Proceedings. Except as set forth in the Reports filed and publicly
available prior to the date hereof, neither Jefferies nor any of its Subsidiaries is a party to
any, and there are no pending, or to the knowledge of Jefferies, threatened, legal, administrative,
arbitral or other proceedings, claims, actions or governmental investigations of any nature against
Jefferies or any of its Subsidiaries or to which any of their assets are subject (i) that,
individually or in the aggregate, has had or would reasonably be expected to have a Material
Adverse Effect or (ii) relating to or which challenges the validity or propriety of the
Transactions. Neither Jefferies nor any of its Subsidiaries is subject to any order, judgment or
decree of a Governmental Entity that, individually or in the aggregate, has had or would reasonably
be expected to have a Material Adverse Effect.

     (k) State Takeover Laws. Jefferies’ Board of Directors has taken all action necessary
to render inapplicable to Leucadia the restrictions on “business combinations” set forth in Section
203 of the DGCL and, to the knowledge of Jefferies, any similar “moratorium,” “control share,”
“fair price,” “takeover” or “interested stockholder” law applicable to transactions between
Leucadia and Jefferies.

     (l) Status of Jefferies Shares. The Jefferies Shares have been duly authorized by all
necessary corporate action. When issued and sold against receipt of the consideration therefor,
the Jefferies Shares will be validly issued, fully paid and nonassessable, will not subject the
holders thereof to personal liability and will not be subject to preemptive rights of any other
stockholder of Jefferies.

     (m) Offering of Securities. Neither Jefferies nor any Person acting on its behalf has
offered the Jefferies Shares for sale to, solicited any offers to buy any of the Jefferies Shares
or

7

 

from or otherwise approached or negotiated with respect to any of the Jefferies Shares with
any Person other than Leucadia. Neither Jefferies nor any Person acting on its behalf has taken or
will take any action (including, without limitation, any offering of any securities of Jefferies
under circumstances which would require the integration of such offering with the offering of any
of the Jefferies Shares under the Securities Act and the rules and regulations of the SEC
thereunder) which might subject the offering, issuance or sale of any of the Jefferies Shares to
the registration requirements of the Securities Act.

     (n) Securities Act. Jefferies is acquiring the Leucadia Shares solely for the purpose
of investment and not with a view to, or for resale in connection with, any distribution thereof in
violation of the Securities Act.

     (o) Brokers and Finders. Neither Jefferies nor any of its Subsidiaries nor any of
their respective officers, directors, employees or agents has utilized any broker, finder,
placement agent or financial advisor or incurred any liability for any fees or commissions in
connection with any of the Transactions.

     (p) Ownership of Leucadia Stock. As of the date hereof, Jefferies and it Subsidiaries
beneficially own (determined in accordance with Rule 13d-3 of the Exchange Act) an aggregate of
6,181 shares of Leucadia Common Stock and $17,794,000 principal amount of Leucadia’s 3-3/4%
Convertible Senior Subordinated Debt that is currently convertible into 774,775 shares of Leucadia
Common Stock. After giving effect to the issuance of Leucadia Common Stock pursuant to the
Transactions, the shares of Leucadia Common Stock beneficially owned by Jefferies will represent
less than 5% of Leucadia Common Stock then outstanding as determined in accordance with Rule 13d-3.

     Section 3.02. Representations and Warranties of Leucadia. Except as disclosed in the
Reports filed with or furnished to the SEC by Leucadia prior to the date hereof, Leucadia
represents and warrants to, and agrees with, Jefferies, as of the date hereof (or as of such
earlier date in the case of any representation or warranty expressly made as of an earlier date),
as follows:

     (a) Organization and Good Standing of Leucadia; Organizational Documents.
(i) Leucadia is duly incorporated, validly existing and in good standing under the laws of the
State of New York and has all requisite corporate power and authority and governmental
authorizations to own, operate and lease its properties and to carry on its business as it is being
conducted on the date of this Agreement. Leucadia is duly licensed or qualified as a foreign
corporation for the transaction of business and is in good standing under the laws of each other
jurisdiction in which it owns or leases properties, or conducts any business, so as to require such
qualification, except where the failure to be so licensed or qualified in any such jurisdiction
would not reasonably be expected to have a Material Adverse Effect.

     (b) Organization and Good Standing of Subsidiaries. Each Subsidiary of Leucadia is
duly incorporated and validly existing under the laws of its jurisdiction of organization, and has
all requisite corporate power and authority and governmental authorizations to own, operate and
lease its properties and to carry on its business as it is now being conducted, and is duly
licensed or qualified to do business in each other jurisdiction in which it owns or leases
properties, or

8

 

conducts any business, so as to require such qualification, except where the failure to be so
authorized, licensed or qualified in any such jurisdiction, individually or in the aggregate, would
not reasonably be expected to have a Material Adverse Effect.

     (c) Authorization; No Conflicts. Leucadia has full corporate power and authority to
execute and deliver this Agreement and the Ancillary Documents and to consummate the Transactions.
The execution, delivery and performance by Leucadia of this Agreement and each Ancillary Document
and the consummation of the Transactions have been duly authorized by the Board of Directors of
Leucadia. No other corporate proceedings on the part of Leucadia are necessary to authorize the
execution, delivery and performance by Leucadia of this Agreement and each Ancillary Document and
consummation of the Transactions. This Agreement has been, and at or prior to the Closing, each
Ancillary Document to which it is a party will be, duly and validly executed and delivered by
Leucadia. This Agreement is, and upon its execution at or prior to the Closing each Ancillary
Document to which it is a party will be, a valid and binding obligation of Leucadia, enforceable
against it in accordance with its terms.

     (i) The execution, delivery and performance of this Agreement and the Ancillary Documents, the
consummation by Leucadia of the Transactions and the compliance by Leucadia with any of the
provisions hereof and thereof will not conflict with, violate or result in a breach of any
provision of, or constitute a default (or an event which, with notice or lapse of time or both
would constitute a default) under, or result in the termination of or accelerate the performance
required by, or result in a right of termination or acceleration under, (A) any provision of the
Restated Certificate of Incorporation or By-laws of Leucadia or the certificate of incorporation,
charter, by-laws or other governing instrument of any Subsidiary of Leucadia or (B) any mortgage,
note, indenture, deed of trust, lease, loan agreement or other agreement or instrument or any
permit, concession, grant, franchise, license, judgment, order, decree, ruling, injunction,
statute, law, ordinance, rule or regulation applicable to Leucadia or any of its Subsidiaries or
any of their respective properties or assets.

     (d) Consents. No consent, approval, order or authorization of, or registration,
declaration or filing with, any Governmental Entity is required on the part of Leucadia or any of
its Subsidiaries in connection with the execution, delivery and performance by Leucadia of this
Agreement and the Ancillary Documents to which it is a party and the consummation by Leucadia of
the Transactions.

     (e) Capitalization.

     (i) The authorized capital stock of Leucadia consists of (i) 600,000,000 shares of Leucadia
Common Stock of which, as of March 31, 2008, 222,610,840 shares were issued and outstanding and
(ii) 6,000,000 shares of preferred stock, par value $1.00 per share, of Leucadia, of which no
shares were issued and outstanding as of March 31, 2008. As of March 31, 2008, Leucadia held
56,886,204 shares of Leucadia Common Stock in its treasury. As of March 31, 2008 there were
22,649,801 shares of Leucadia Common Stock reserved for issuance in connection with outstanding
warrants, the Company’s stock option plan and the Company’s outstanding 3-3/4 % Convertible Senior
Subordinated Debt. All of the issued and outstanding shares of Leucadia capital stock have been
duly and validly authorized and issued and are fully paid and nonassessable, and are not subject to
preemptive rights. No bonds, debentures, notes or

9

 

other indebtedness having the right to vote on any matters on which the stockholders of
Leucadia may vote (“Leucadia Voting Debt”) are issued and outstanding. Other than as set
forth in this subsection (e) or pursuant to this Agreement or the 3-3/4 % Convertible Senior
Subordinated Debt, (A) no equity securities or Leucadia Voting Debt of Leucadia are or may be
required to be issued by reason of any options, warrants, rights to subscribe to, calls or
commitments of any character whatsoever, (B) there are outstanding no securities or rights
convertible into or exchangeable for any equity securities or Leucadia Voting Debt of Leucadia and
(C) there are no contracts, commitments, understandings or arrangements by which Leucadia is bound
to issue additional equity securities or Leucadia Voting Debt or options, warrants or rights to
purchase or acquire any additional equity securities or Leucadia Voting Debt.

     (f) Reports; Financial Statements; Controls.

     (i) Since January 1, 2005, Leucadia has filed all Reports, and has paid all fees and
assessments due and payable in connection therewith. As of their respective dates, the Reports
complied in all material respects with applicable requirements of the Securities Act or the
Exchange Act and the published rules and regulations of the SEC and did not as of the date of
filing thereof with the SEC contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary in order to make the statements therein,
in light of the circumstances under which they were made, not misleading.

     (ii) Each of the consolidated balance sheets, and the related consolidated statements of
income, changes in stockholders’ equity and cash flows, included in the Reports filed with the SEC
under the Exchange Act fairly present in all material respects the consolidated financial position
of Leucadia and its consolidated Subsidiaries as of the dates shown and the results of the
consolidated operations, changes in stockholders’ equity and cash flows of Leucadia and its
consolidated Subsidiaries for the respective fiscal periods or as of the respective dates therein
set forth, subject, in the case of any unaudited financial statements, to normal recurring year-end
audit adjustments, complied as to form, as of their respective dates of filing with the SEC, in all
material respects with applicable accounting requirements and with the published rules and
regulations of the SEC with respect thereto and have been prepared in accordance with GAAP
consistently applied during the periods involved, except as otherwise set forth in the notes
thereto.

     (iii) Leucadia (A) has implemented and maintains disclosure controls and procedures (as
defined in Rule 13a-15(e) of the Exchange Act) to ensure that material information relating to
Leucadia, including its consolidated Subsidiaries, is made known to the chief executive officer and
the chief financial officer of Leucadia by others within those entities, and (B) has disclosed,
based on its most recent evaluation prior to the date hereof, to Leucadia outside auditors and the
audit committee of Leucadia Board of Directors (x) any significant deficiencies and material
weaknesses in the design or operation of internal controls over financial reporting (as defined in
Rule 13a-15(f) of the Exchange Act) that are reasonably likely to adversely affect Leucadia ability
to record, process, summarize and report financial information and (y) any fraud, whether or not
material, that involves management or other employees who have a significant role in Leucadia
internal controls over financial reporting.

10

 

     (g) Absence of Certain Changes. Since January 1, 2008 until the date hereof, and
except as publicly disclosed by Leucadia in the Reports filed by it with the SEC and publicly
available prior to the date hereof, and except as previously disclosed to Jefferies in connection
with the Transactions, (i) Leucadia and its Subsidiaries have conducted their respective businesses
in all material respects in the ordinary course, consistent with prior practice, (ii) except for
publicly disclosed ordinary dividends on the Leucadia Common Stock, Leucadia has not made or
declared any distribution in cash or in kind to its stockholders or issued any shares of its
capital stock or other equity interests and (iii) no event or events have occurred that,
individually or in the aggregate, has had or would reasonably be expected to have a Material
Adverse Effect.

     (h) No Undisclosed Liabilities, etc. Neither Leucadia nor its Subsidiaries has any
liabilities or obligations of any nature (absolute, accrued, contingent or otherwise) which are not
fully reflected or reserved against in the financial statements described in Section 3.02(f),
except for liabilities that have arisen since December 31, 2007 in the ordinary and usual course of
business and consistent with past practice and that, individually or in the aggregate, have not had
and would not reasonably be expected to have a Material Adverse Effect.

     (i) Compliance with Applicable Law. Each of Leucadia and its Subsidiaries holds all
licenses, franchises, permits and authorizations necessary for the lawful conduct of its business
under, and has complied in all material respects and is not in default or violation in any respect
of, any law, statute, order, rule, regulation, policy or guideline of any Federal, state or local
governmental authority applicable to Leucadia or such Subsidiary, other than such non-compliance,
defaults or violations that, individually or in the aggregate, have not had and would not
reasonably be expected to have a Material Adverse Effect.

     (j) Legal Proceedings. Except as set forth in the Reports filed and publicly
available prior to the date hereof, neither Leucadia nor any of its Subsidiaries is a party to any,
and there are no pending, or to the knowledge of Leucadia, threatened, legal, administrative,
arbitral or other proceedings, claims, actions or governmental investigations of any nature against
Leucadia or any of its Subsidiaries or to which any of their assets are subject (i) that,
individually or in the aggregate, has had or would reasonably be expected to have a Material
Adverse Effect or (ii) relating to or which challenges the validity or propriety of the
Transactions. Neither Leucadia nor any of its Subsidiaries is subject to any order, judgment or
decree of a Governmental Entity that, individually or in the aggregate, has had or would reasonably
be expected to have a Material Adverse Effect.

     (k) Status of Leucadia Shares. The Leucadia Shares have been duly authorized by all
necessary corporate action. When issued and sold against receipt of the consideration therefor,
the Leucadia Shares will be validly issued, fully paid and nonassessable, will not subject the
holders thereof to personal liability and will not be subject to preemptive rights of any other
stockholder of Leucadia.

     (l) Offering of Securities. Neither Leucadia nor any Person acting on its behalf has
offered the Leucadia Shares for sale to, solicited any offers to buy any of the Leucadia Shares or
from or otherwise approached or negotiated with respect to any of the Leucadia Shares with any
Person other than Jefferies. Neither Leucadia nor any Person acting on its behalf has taken or

11

 

will take any action (including, without limitation, any offering of any securities of
Leucadia under circumstances which would require the integration of such offering with the offering
of any of the Leucadia Shares under the Securities Act and the rules and regulations of the SEC
thereunder) which might subject the offering, issuance or sale of any of the Leucadia Shares to the
registration requirements of the Securities Act.

     (n) Securities Act. Leucadia is acquiring the Jefferies Shares solely for the purpose
of investment and not with a view to, or for resale in connection with, any distribution thereof in
violation of the Securities Act.

     (m) Brokers and Finders. Neither Leucadia nor any of its Subsidiaries nor any of
their respective officers, directors, employees or agents has utilized any broker, finder,
placement agent or financial advisor or incurred any liability for any fees or commissions in
connection with any of the Transactions.

     (n) Ownership Interest in Jefferies. As of the date hereof, Leucadia beneficially
owns in the aggregate 4,265,800 shares of Jefferies Common Stock.

     (o) Antitrust. The waiting period (and any extension thereof) applicable to the
Transactions under the HSR Act and any other clearances or approvals required under applicable
competition, merger control, antitrust or similar law have been granted, terminated or have
expired, without any conditions, restrictions, requirements or change of regulation or any other
action taken.

ARTICLE IV

Additional Agreements of the Parties

     Section 4.01. Taking of Necessary Action. Subject to the conditions set forth in
Article V hereof, each of the parties hereto agrees to use all reasonable best efforts promptly to
take or cause to be taken all action and promptly to do or cause to be done all things necessary,
proper or advisable under applicable laws and regulations to consummate and make effective the
Transactions. Each party shall execute and deliver both before and after the Closing such further
certificates, agreements and other documents and take such other actions as the other party may
reasonably request to consummate or implement the Transactions or to evidence such events or
matters.

     Section 4.02. Securities Laws; Legends. (a) Leucadia acknowledges and agrees that as
of the date hereof that the Jefferies Shares have not been registered under the Securities Act or
the securities laws of any state and that they may be sold or otherwise disposed of only if
registered under the Securities Act or pursuant to an exemption therefrom. Leucadia acknowledges
that, except as provided in the Ancillary Documents, Leucadia has no right to require Jefferies to
register the Jefferies Shares. Leucadia further acknowledges and agrees that each certificate for
the Leucadia shall bear a legend substantially as set forth in paragraph (c) of this Section 4.02.

     (b) Jefferies acknowledges and agrees that as of the date hereof that the Leucadia Shares have
not been registered under the Securities Act or the securities laws of any state and

12

 

that they may be sold or otherwise disposed of only if registered under the Securities Act or
pursuant to an exemption therefrom. Jefferies acknowledges that, except as provided in the
Ancillary Documents, Jefferies has no right to require Leucadia to register the Leucadia Shares.
Jefferies further acknowledges and agrees that each certificate for the Leucadia Shares shall bear
a legend substantially as set forth in paragraph (c) of this Section 4.02.

     (c) Certificates for the Jefferies Shares and the Leucadia Shares shall bear legends in
substantially the following form:

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933. THE SHARES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE
SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
FOR THESE SHARES UNDER THE SECURITIES ACT OF 1933 OR AN OPINION OF COMPANY’S COUNSEL
THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT.

     (d) When issued pursuant hereto, the certificates evidencing the Jefferies Shares and the
Leucadia Shares shall also bear any legend required by any applicable state blue sky law.

     Section 4.03. Regulatory Matters.

     (a) Leucadia and Jefferies shall use commercially reasonable efforts to promptly prepare and
file all necessary documentation, to effect all applications, notices, petitions and filings, and
to obtain as promptly as practicable all permits, consents, approvals and authorizations of all
third parties and Governmental Entities which are necessary or advisable to consummate the
Transactions. Jefferies and Leucadia shall have the right to consult the other, in each case
subject to applicable laws relating to the exchange of information, with respect to any filing made
with, or written materials submitted to, any third party or any Governmental Entity in connection
with the Transactions. In exercising the foregoing right, each of the parties hereto shall act
reasonably and as promptly as practicable. The parties hereto agree that they will consult with
each other with respect to the obtaining of all permits, consents, approvals and authorizations of
all third parties and Governmental Entities necessary or advisable to consummate the Transactions
and each party will keep the other apprised of the status of matters relating to completion of the
Transactions.

     (b) Leucadia and Jefferies shall, upon request, furnish each other with all information
concerning themselves, their Subsidiaries, directors, officers and stockholders and such other
matters as may be reasonably necessary or advisable in connection with any statement, filing,
notice or application made by or on behalf of Leucadia, Jefferies or any of their respective
Subsidiaries to any Governmental Entity in connection with the Transactions.

     (c) Leucadia and Jefferies shall promptly furnish the other with copies of written
communications received by them or their Subsidiaries from, or delivered by any of the foregoing
to, any Governmental Entity in respect of the Transactions (other than in respect of information
filed or otherwise submitted confidentially to any such Governmental Entity).

13

 

     (d) Leucadia and Jefferies shall, and shall cause their Subsidiaries to, use commercially
reasonable efforts (i) to take, or cause to be taken, all actions necessary, proper or advisable to
comply promptly with all legal requirements that may be imposed on them or their Subsidiaries with
respect to the Transactions and, subject to the conditions set forth in Article V hereof, to
consummate the Transactions and (ii) subject to the conditions set forth in Article V hereof, to
obtain (and to cooperate with the other party to obtain) any consent, authorization, order or
approval of, or any exemption by, any Governmental Entity and any other third party which is
required to be obtained by Jefferies or Leucadia or any of their respective Subsidiaries in
connection with the Transactions, and to comply with the terms and conditions of such consent,
authorization, order or approval.

     Section 4.04. Share Listing. Each of Jefferies and Leucadia shall promptly use its
reasonable best efforts to cause the Jefferies Shares and the Leucadia Shares, respectively, to be,
upon official notice of issuance, listed on the NYSE.

     Section 4.05. Registration Rights Agreements; Letter Agreement. As soon as reasonably
practicable after the date hereof, Leucadia and Jefferies shall execute (i) Registration Rights
Agreements consistent with the terms described in Annex A to Exhibit A of this Agreement, and (ii)
a letter agreement providing that no request of Leucadia or its subsidiaries for any additional
capital investment in Jefferies High Yield Holdings, LLC shall be made without the unanimous
consent of the Board of Directors of Jefferies, including Leucadia’s designees to the Jefferies
Board of Directors (the “Letter Agreement”).

ARTICLE V

Additional Agreements

     Section 5.01. Leucadia Closing Deliverables. At the Closing, Leucadia shall have
executed and delivered to Jefferies the Standstill Agreement, in the form attached hereto as
Exhibit A.

     Section 5.02. Jefferies Closing Deliverables. At the Closing, Jefferies shall have
executed and delivered to Leucadia the Standstill Agreement, in the form attached hereto as
Exhibit A.

ARTICLE VI

Miscellaneous

     Section 6.01. Survival of Representations and Warranties. All representations and
warranties shall survive the Closing Date for a period of twelve months following the Closing Date,
and all covenants and agreements shall survive the Closing Date until the expiration of any
applicable statutes of limitation.

     Section 6.02. Notices. All notices and other communications hereunder shall be in
writing and shall be deemed to have been duly given, if delivered personally, by telecopier or sent
by overnight courier as follows:

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	 	 	(a)	 	If to Leucadia, to:
	 
	 	 	 	 	 	 
	 	 	 	 	Leucadia National Corporation

315 Park Avenue South

New York, New York 10010
	 
	 	 	 	 	 	 
	 

	 	 	 	Attention:
	 	Joseph S. Steinberg
	 

	 	 	 	 	 	315 Park Avenue South
	 

	 	 	 	 	 	New York, New York 10010
	 

	 	 	 	 	 	Fax: (212) 598-4869
	 
	 	 	 	 	 	 
	 	 	 	 	With copies to:
	 
	 	 	 	 	Weil, Gotshal & Manages, LLP
	 	 	 	 	767 Fifth Avenue
	 	 	 	 	New York, New York 10153-0119
	 
	 	 	 	 	 	 
	 

	 	 	 	Attention:
	 	Andrea A. Bernstein, Esq.
	 

	 	 	 	 	 	Fax: (212) 310-8007
	 
	 	 	 	 	 	 
	 	 	(b)	 	If to Jefferies, to:
	 
	 	 	 	 	 	 
	 	 	 	 	Jefferies Group, Inc.
	 	 	 	 	520 Madison Avenue
	 	 	 	 	New York, New York 10021
	 
	 	 	 	 	 	 
	 	 	 	 	Attention: General Counsel
	 	 	 	 	Fax: (212) 284-2280
	 
	 	 	 	 	 	 
	 	 	 	 	With a copy to:
	 
	 	 	 	 	 	 
	 	 	 	 	Morgan, Lewis & Bockius LLP
	 	 	 	 	101 Park Avenue
	 	 	 	 	New York, New York 10178
	 
	 	 	 	 	 	 
	 

	 	 	 	Attention:
	 	Stephen P. Farrell, Esq.
	 

	 	 	 	 	 	Robert W. Dickey, Esq.
	 

	 	 	 	 	 	Fax: (212) 309-6001

or to such other address or addresses as shall be designated in writing. All notices shall be
effective when received.

     Section 6.03. Entire Agreement; Third Party Beneficiaries; Amendment. This Agreement,
the Registration Rights Agreements, and the Standstill Agreement and the documents described herein
and therein or attached or delivered pursuant hereto or thereto set forth the entire agreement
between the parties hereto with respect to the Transactions, and are not intended to and shall not
confer upon any person other than the parties hereto any rights or

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remedies hereunder. Any provision of this Agreement may be amended or modified in whole or in
part at any time by an agreement in writing between the parties hereto executed in the same manner
as this Agreement. No failure on the part of any party to exercise, and no delay in exercising,
any right shall operate as a waiver thereof nor shall any single or partial exercise by any party
of any right preclude any other or future exercise thereof or the exercise of any other right. No
investigation by Leucadia or Jefferies prior to or after the date hereof shall prevent or limit
Leucadia or Jefferies from exercising any right hereunder or be deemed to be a waiver of any such
right.

     Section 6.04. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to constitute any original, but all of which together
shall constitute one and the same documents.

     Section 6.05. Governing Law. This Agreement shall be governed by, and interpreted in
accordance with, the laws of the State of New York.

     Section 6.06. Public Announcements. Subject to each party’s disclosure obligations
imposed by law, each of the parties hereto will cooperate with each other in the development and
distribution of all news releases and other public information disclosures with respect to this
Agreement and any of the Transactions, and no party hereto will make any such news release or
public disclosure without first consulting with the other party hereto.

     Section 6.07. Expenses. Each party hereto shall bear its own costs and expenses
(including attorneys’ fees) incurred in connection with this Agreement and the Ancillary Documents
and the Transactions.

     Section 6.08. Successors and Assigns. Except as otherwise expressly provided herein,
the provisions hereof shall inure to the benefit of, and be binding upon, Jefferies’ successors and
assigns and Leucadia’s successors and assigns, and no other person; provided, that, subject
to applicable law, Leucadia may assign its rights under this Agreement to any of its Affiliates,
but no such assignment shall relieve Leucadia of its obligations hereunder.

     Section 6.09. Remedies; Waiver. To the extent permitted by law, all rights and
remedies existing under this Agreement or any Ancillary Documents are cumulative to, and are
exclusive of, any rights or remedies otherwise available under applicable law. No failure on the
part of any party to exercise, or delay in exercising, any right hereunder shall be deemed a waiver
thereof, nor shall any single or partial exercise preclude any further or other exercise of such or
any other right.

     Section 6.10. Consent to Jurisdiction. Each of the parties hereto (a) consents to
submit itself to the personal jurisdiction of any Federal or state court located in the Borough of
Manhattan in the City of New York, New York in the event any dispute arises out of this Agreement,
any of the Ancillary Documents or the Transactions, (b) agrees that it will not attempt to deny or
defeat such personal jurisdiction by motion or other request for leave from any such court and (c)
agrees that it will not bring any action relating to this Agreement, any of the Ancillary Documents
or the Transactions in any court other than a Federal or state court located in the Borough of
Manhattan in the City of New York, New York.

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     Section 6.11. Severability. If any provision of this Agreement is determined to be
invalid, illegal, or unenforceable, the remaining provisions of this Agreement shall remain in full
force and effect provided that the economic and legal substance of, any of the Transactions is not
affected in any manner materially adverse to any party. In the event of any such determination,
the parties agree to negotiate in good faith to modify this Agreement to fulfill as closely as
possible the original intent and purpose hereof. To the extent permitted by law, the parties
hereby to the same extent waive any provision of law that renders any provision hereof prohibited
or unenforceable in any respect.

     Section 6.12. Headings. The headings of Articles and Sections contained in this
Agreement are for reference purposes only and are not part of this Agreement.

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     IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto or by their
respective duly authorized officers, all as of the date first above written.

	 	 	 	 	 
	 	LEUCADIA NATIONAL CORPORATION

 	 
	 	By:  	/s/ Barbara L. Lowenthal
 	 
	 	 	Name:  	Barbara L. Lowenthal 	 
	 	 	Title:  	Vice President 	 
	 
	 	JEFFERIES GROUP, INC.

 	 
	 	By:  	/s/ Richard B. Handler
 	 
	 	 	Name:  	Richard B. Handler 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

[Investment Agreement Signature Page]

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Exhibit A

Form of Standstill Agreement

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