Document:

Exhibit 4.1

CIT GROUP INC.

Issuer

THE BANK OF NEW YORK

Trustee

______________________

FIRST SUPPLEMENTAL INDENTURE

______________________

Dated as of January 31, 2007

6.10% Junior Subordinated Notes due March 15, 2067

 

 

 

 

TABLE OF CONTENTS

 

	 Page

	 Article
        I DEFINITIONS
	
      1

	 Article
        II GENERAL TERMS AND CONDITIONS OF THE NOTES
	
      9

	
       
	
      Section
        2.1
	
      Designation
        and Principal Amount
	
      9

	
       
	
      Section
        2.2
	
      Final
        Maturity
	
      10

	
       
	
      Section
        2.3
	
      Form
        and Payment
	
      10

	
       
	
      Section
        2.4
	
      Interest.
	
      10

	 Article
        III REDEMPTION OF THE NOTES
	
      12

	
       
	
      Section
        3.1
	
      Optional
        Redemption
	
      12

	
       
	
      Section
        3.2
	
      Redemption
        Procedure for Notes
	
      12

	
       
	
      Section
        3.3
	
      No
        Sinking Fund
	
      12

	 Article
        IV OPTIONAL DEFERRAL OF INTEREST AND TRIGGER EVENTS
	
      12

	
       
	
      Section
        4.1
	
      Optional
        Deferral of Interest
	
      13

	
       
	
      Section
        4.2
	
      Trigger
        Events
	
      13

	 Article
        V EVENTS OF DEFAULT
	
      14

	
       
	
      Section
        5.1
	
      Events
        of Default
	
      14

	 Article
        VI COVENANTS
	
      15

	
       
	
      Section
        6.1
	
      Certain
        Restrictions on Company Payments
	
      15

	
       
	
      Section
        6.2
	
      Obligation
        to Effect Certain Sales of Common Stock or Qualifying Preferred Stock;
        Alternative Payment Mechanism
	
      17

	
       
	
      Section
        6.3
	
      Posting
        of Financial Statements
	
      18

	 Article
        VII SUBORDINATION
	
      18

	
       
	
      Section
        7.1
	
      Agreement
        to Subordinate
	
      18

	 Article
        VIII FORM OF NOTE
	
      19

	
       
	
      Section
        8.1
	
      Form
        of Note
	
      19

 

 

	 Article
        IX ORIGINAL ISSUE OF NOTES
	
      26

	
       
	
      Section
        9.1
	
      Original
        Issue of Notes
	
      26

	 Article
        X LIMITATION ON CLAIMS
	
      26

	
       
	
      Section
        10.1
	
      Limitation
        on Claim for Deferred Interest Due to a Trigger Event in Bankruptcy
	
      26

	 Article
        XI MISCELLANEOUS
	
      27

	
       
	
      Section
        11.1
	
      Ratification
        of Indenture
	
      27

	
       
	
      Section
        11.2
	
      Governing
        Law
	
      27

	
       
	
      Section
        11.3
	
      Separability
	
      27

	
       
	
      Section
        11.4
	
      Counterparts
	
      27

	
       
	
      Section
        11.5
	
      Resignation;
        Appointment of Successor Trustee
	
      27

	
       
	
      Section
        11.6
	
      Recitals
	
      27

 

 

 

 

 

FIRST SUPPLEMENTAL INDENTURE, dated as of January 31, 2007 (the “First Supplemental Indenture”), between CIT Group Inc., a corporation duly organized and existing under the laws of the State of Delaware (the “Company”), and The Bank of New York (as successor to JPMorgan Chase Bank, N.A.), as trustee (the “Trustee”), amending and supplementing the Indenture, dated as of January 20, 2006 between the Company and the Trustee, governing the issuance of subordinated debt securities (the “Base Indenture”).

WHEREAS, the Company executed and delivered the Base Indenture to the Trustee to provide for the future issuance of the Company’s subordinated unsecured notes or other evidence of indebtedness (the “Securities”), to be issued from time to time in one or more series as might be determined by the Company under the Base Indenture;

WHEREAS, pursuant to the terms of the Base Indenture and this First Supplemental Indenture (together, the “Indenture”), the Company desires to provide for the establishment of a new series of its Securities to be known as its 6.10% Junior Subordinated Notes due March 15, 2067 (the “Notes”), which shall be in the form of junior subordinated notes, with specific terms and provisions, the form and substance of such Notes and the terms, provisions and conditions thereof to be set forth as provided in the Indenture; and

WHEREAS, the Company has requested that the Trustee execute and deliver this First Supplemental Indenture, and all requirements necessary to make this First Supplemental Indenture a valid instrument in accordance with its terms, and to make the Notes, when executed by the Company and authenticated and delivered by the Trustee, the valid obligations of the Company, have been done and performed, and the execution and delivery of this First Supplemental Indenture have been duly authorized in all respects.

NOW THEREFORE, in consideration of the purchase and acceptance of the Notes by the Holders thereof, and for the purpose of setting forth, as provided in the Indenture, the form and substance of the Notes and the terms, provisions and conditions thereof, the Company covenants and agrees with the Trustee as follows:

ARTICLE I

 

DEFINITIONS

Section
  1.1      Definitions.
  Unless the context otherwise requires:

(a)          a term not defined herein that is defined in the Base Indenture has the same meaning when used in this First Supplemental Indenture;

(b)          the definition of any term in this First Supplemental Indenture that is also defined in the Base Indenture shall supersede the definition of such term in the Base Indenture;

(c)          a
  term defined anywhere in this First Supplemental Indenture has the same meaning
  throughout;

(d)          the
  singular includes the plural and vice versa;

 

 
1

 

 

 

(e)          headings are for convenience of reference only and do not affect interpretation;

(f)           the following terms have the meanings given to them in this Section 1.1(f):

“Alternative Payment Mechanism” has the meaning provided in Section 6.2(a) hereof.

“Average Four Quarters Fixed Charge Ratio” means, with respect to the Company on a consolidated basis, as of any fiscal quarter end: (a) the sum, for each of the prior four fiscal quarters inclusive of such fiscal quarter end, of the quotient of (x) Adjusted Earnings before Interest and Taxes and (y) Fixed Charges divided by (b) 4.  For purposes of this definition, “Adjusted Earnings before Interest and Taxes” means, with respect to the Company on a consolidated basis, earnings, as of any fiscal quarter end, excluding (i) income taxes, (ii) interest expense, (iii) extraordinary items, (iv) goodwill impairment and (v) amounts related to discontinued operations. 

“Business Day” means any day which is not a Saturday, a Sunday or a legal holiday or a day on which banking institutions or trust companies located in New York City are authorized or obligated by law to close, and with respect to the Floating Rate Period, a day that is also a London Banking Day.

“Calculation Agent” means, initially, The Bank of New York.

“Commercially Reasonable Efforts” means, with respect to the offer and sale of securities, commercially reasonable efforts to complete such offer and sale of the securities to third parties that are not Subsidiaries of the Company in public offerings or private placements, provided that the Company shall be deemed to have made such Commercially Reasonable Efforts during a Market Disruption Event or for so long as the Company is prevented from selling shares of its Common Stock or Qualifying Preferred Stock in accordance with the Alternative Payment Mechanism because its does not have shares available for issuance, regardless of whether the Company makes any offers or sales during such time period.  For the avoidance of doubt, the Company shall not be considered to have made Commercially Reasonable Efforts to effect a sale of such
securities if the Company determines to not pursue or complete such sale due to pricing, dividend rate or dilution considerations.

“Company” shall have the meaning set forth in the preamble of this First Supplemental Indenture.

“Comparable Treasury Issue” means the U.S. Treasury security selected by the Quotation Agent as having a term comparable to the period from the applicable Redemption Date to March 15, 2017 that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities with a term comparable to such period.

“Comparable Treasury Price” means, with respect to a Redemption Date (1) the average of five Reference Treasury Dealer Quotations for such Redemption Date, after excluding 

 

2

 

 

the highest and lowest Reference Treasury Dealer Quotations, or (2) if the Quotation Agent obtains fewer than five such Reference Treasury Dealer Quotations, the average of all such quotations.

“Compounded Interest” means interest on any accrued and unpaid interest on the Notes, to the extent permitted by applicable law, compounded semi-annually (during a Fixed Rate Period) or quarterly (during a Floating Rate Period) at the applicable Coupon Rate.

“Coupon Rate” means the Fixed Rate during the Fixed Rate Period and the Floating Rate during the Floating Rate Period.

“Depositary”, with respect to the Notes, means The Depository Trust Company or any successor clearing agency.

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

“Final Maturity” has the meaning provided in Section 2.2 hereof.

“First Supplemental Indenture” has the meaning provided in the preamble hereto.

“Fixed Charges” means, as of any fiscal quarter end on a consolidated basis, the sum of the Company’s (x) interest expense and (y) preferred dividends.

“Fixed Rate” has the meaning provided in Section 2.4(a) hereof.

“Fixed Rate Period” means the period from, and including, the date of initial issuance of the Notes up to, but not including, March 15, 2017.

“Floating Rate” has the meaning provided in Section 2.4(b) hereof.

“Floating Rate Period” means the period from, and including, March 15, 2017 up to, but not including, the Final Maturity or earlier redemption.

“Foregone Interest” has the meaning provided in Section 10.1 hereof.

“H.15(519)” means the weekly statistical release designated as such, or any successor publication, published by the Federal Reserve System Board of Governors, available through the Board of Governors of the Federal Reserve System’s website at http://www.federalreserve.gov/releases/H15/ or any successor site or publication.

“Indenture” has the meaning set forth in the preamble of this First Supplemental Indenture.

“Interest Payment Date” means (i) during the Fixed Rate Period, each March 15 and September 15, commencing September 15, 2007, and ending on March 15, 2017; and (ii) during the Floating Rate Period, each March 15, June 15, September 15 and December 15, commencing June 15, 2017.

 

 

3

 

 

 

“Interest Payment Period” means during the Fixed Rate Period, any semi-annual period, and during the Floating Rate Period, any quarterly period, during which interest accrues pursuant to this Indenture.

“London Banking Day” means any day on which dealings in deposits in U.S. dollars are transacted in the London interbank market.

“Make-Whole Redemption Amount” means the sum of (i) the present value of the aggregate principal amount outstanding of the Notes to be redeemed on the Interest Payment Date falling on March 15, 2017 and (ii) the present values of scheduled semi-annual interest payments from, but not including, the applicable Redemption Date through and including the Interest Payment Date on March 15, 2017, in each case discounted to the applicable Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury rate plus (x) in the case of a Tax Event or a Rating Agency Event, 50 basis points or (y) in all other cases, 20 basis points, plus, in each case, any accrued and unpaid
interest, together with any Compounded Interest to the applicable Redemption Date, as calculated by
the Quotation Agent; provided, however that in no event will the Make-Whole Redemption Amount be less than the Par Redemption Amount.

“Mandatorily Deferred Interest” has the meaning provided in Section 4.2 hereof.

“Mandatory Deferral” has the meaning provided in Section 4.2 hereof.

“Market Disruption Event” means, with respect to the offer and sale of securities, the occurrence or existence of any of the following events or sets of circumstances:

	
             
 	
            (i)
 	
            the Company would be required to obtain the consent or approval of its shareholders or a regulatory body (including, without limitation, any securities exchange) or governmental authority to issue shares of its Common Stock or Qualifying Preferred Stock and such consent or approval has not yet been obtained despite the Company’s commercially reasonable efforts to obtain such consent or approval;
 

	
             
 	
            (ii)
 	
            trading in securities generally on the New York Stock Exchange or any other national securities exchange or over-the-counter market on which the Company’s Common Stock or Qualifying Preferred Stock is then listed or traded, or trading in any of the Company’s securities (or any options or futures contracts related to the Company’s securities) on any exchange or in the over-the-counter market, is suspended or the settlement of such trading generally is materially disrupted or minimum prices are established on any such exchange or such market by the Commission, by such exchange or by any other regulatory body or governmental authority having jurisdiction such that trading shall have been materially disrupted;
 

	
             
 	
            (iii)
 	
            a material disruption or banking moratorium occurs or has been declared in commercial banking or securities settlement or clearance services in the United States;
 

 

 

4

 

 

 

	
             
 	
            (iv)
 	
            there is such a material adverse change in general domestic or international economic, political or financial conditions, including, without limitation, as a result of terrorist activities, or the effect of international conditions on the financial markets in the United States is such, that trading in any of the Company’s securities is materially disrupted; or
 

	
             
 	
            (v)
 	
            an event occurs and is continuing as a result of which the offering document for such offer and sale of securities would, in the Company’s reasonable judgment, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading and either (1) the disclosure of that event at such time, in the Company’s reasonable judgment, would have a material adverse effect on its business or (2) the disclosure relates to a previously undisclosed proposed or pending material business transaction, the disclosure of which would impede the Company’s ability to consummate such transaction, provided that no single suspension period contemplated by this clause (v) may exceed 90 consecutive days and multiple suspension periods
contemplated by this clause (v) may not exceed an aggregate of 180 days in any 360-day period.
 

“Notes” shall have the meaning set forth in the recitals of this First Supplemental Indenture.

“Optional Deferral” has the meaning provided in Section 4.1 hereof.

“Optional Deferral Period” has the meaning provided in Section 4.1 hereof.

“Optionally Deferred Interest” has the meaning provided in Section 4.1 hereof.

“Other Covenant Default” has the meaning provided in Section 5.1(b) hereof.

“Other Covenant Default Notice” has the meaning provided in Section 5.1(c) hereof.

“Par Redemption Amount” means a cash redemption price of 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, together with any Compounded Interest, on such Notes to the applicable Redemption Date.

“Primary Treasury Dealer” means any primary U.S. government securities dealers in New York City.

“Parity Debt Securities” has the meaning provided in Section 6.1 hereof.

“Parity Guarantees” has the meaning provided in Section 6.1 hereof.

“Paying Agent” means, initially, The Bank of New York.

 

5

 

 

 

“Qualifying Preferred Stock” means perpetual Preferred Stock of the Company that ranks pari passu with or junior to all of the Company’s other outstanding Preferred Stock and either (1) (x) is subject to the requirement that if the Company redeems or defeases, or if the Company or its Affiliates purchase, any such perpetual Preferred Stock, the Company shall intend to redeem, defease or purchase such  perpetual preferred stock only to the extent that the aggregate amount of such perpetual Preferred Stock to be redeemed, defeased or purchased is equal to or less than the net proceeds the Company or its Affiliates have received during the six months prior to the date of such redemption, purchase or defeasance from the sale or issuance to third-party purchasers of qualifying securities and (y) has a provision that
prohibits the Company from making any distributions thereon upon the Company’s failure to satisfy one or more financial tests that has been recognized as meaningful by each nationally recognized statistical rating organization that provides a rating on any of the Company’s securities or (2) is subject to a replacement capital covenant, as identified by the Company’s board of directors, that restricts the Company from redeeming, defeasing or purchasing such perpetual Preferred Stock except to the extent of certain specified percentages of the net proceeds of specified securities that have terms and provisions at the time of redemption, defeasance or purchase that are as, or more, equity-like than the securities then being redeemed, defeased or purchased, raised within the six month period prior to the applicable redemption, defeasance or purchase date.  As used in this definition only, “qualifying securities” means:  (i) the Company’s Common
Stock or (ii) other securities or combinations of securities which rank equally with or junior to the Qualifying Preferred Stock and have equal or greater equity characteristics as the Qualifying Preferred Stock, at the date of purchase, except that if the Company issues securities to any of its Subsidiaries, such securities will be deemed to be qualifying securities only if such Subsidiary receives net proceeds in an equal or greater amount from the contemporaneous issuance to a person other than the Company or its other Subsidiaries of securities having the characteristics described above.

“Quotation Agent” means one of the Reference Treasury Dealers appointed by the Company.

“Rating Agency Event” means a change by any nationally recognized statistical rating organization within the meaning of Rule 15c3-1 under the Exchange Act that as of January 24, 2007 published a rating for the Company (a “Rating Agency”) to its equity credit criteria for securities such as the Notes, as such criteria was in effect on January 24, 2007 (the “Current Criteria”), which change results in a lower equity credit being given to the Notes as of the date of such change than the equity credit that would have been assigned to the Notes as of the date of such change by such Rating Agency pursuant to its Current Criteria.

“Reference Treasury Dealer” means each of (1) Lehman Brothers Inc. and (2) any one or more additional Primary Treasury Dealers selected by the Company, and their respective successors; provided, however, that if any Reference Treasury Dealer ceases to be a Primary Treasury Dealer, the Company shall substitute another Primary Treasury Dealer.

“Reference Treasury Dealer Quotation” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Quotation Agent at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date.

 

6

 

 

 

“Securities” has the meaning set forth in the recitals of this First Supplemental Indenture.

“Securities Act” means the Securities Act of 1933, as amended.

“Senior Indebtedness” means, solely for purposes of Article 16 of the Base Indenture, all Indebtedness of the Company outstanding at any time, except (a) the Notes, (b) Indebtedness as to which, by the terms of the instrument creating or evidencing the same, it is provided expressly that such Indebtedness is subordinated to, or ranks pari passu with, the Notes, (c) Indebtedness of the Company to an Affiliate of the Company, (d) interest accruing after the filing of a petition initiating any proceeding relating to the Company referred to in Section 5.1(6) and 5.1(7) of the Base Indenture unless such interest is an allowed claim enforceable against the Company in a proceeding under federal or state bankruptcy laws, (e) any Indebtedness issued in violation of the instrument creating the same, (f) any
guarantee of any Indebtedness and (g) the Company’s 7.70% Junior Subordinated Debentures due 2027 issued pursuant to an indenture dated as of February 25, 1997 between the Company, as successor in interest to The CIT Group Holdings, Inc., and The Bank of New York, as Trustee, which shall rank pari passu with the Notes. In furtherance, and not in limitation, of the foregoing, “Senior Indebtedness” shall also include “Senior Subordinated Indebtedness” as defined herein.

“Senior Subordinated Indebtedness” means the Indebtedness represented by the Securities and all other Indebtedness of the Company, whether outstanding at the date hereof or incurred hereafter, which in each case is subordinate only to Senior Indebtedness (as defined in the Base Indenture).  

“Share Cap Amount” means, initially 50,000,000 shares of the Company’s Common Stock, as such amount may be increased by the Company in accordance with Section 6.2(a).  If the issued and outstanding shares of the Company’s common stock shall have been changed into a different number of shares or a different class by reason of any stock split, reverse stock split, stock dividend, reclassification, recapitalization, split-up, combination, exchange of shares or other similar transaction, then the share cap amount shall be correspondingly adjusted.  

“Tangible Equity Amount” means, as of any fiscal quarter end, the Company’s total stockholders’ equity, as reflected on the Company’s consolidated balance sheet as of such fiscal quarter end, excluding (i) goodwill and (ii) other intangible assets.

“Tax Event” means the receipt by the Company of an opinion of counsel to the effect that, as a result of (a) any amendment, clarification or change in U.S. law or regulation, (b) any judicial decision, official administrative pronouncement, ruling, regulatory procedure, notice or announcement, including any notice or announcement of intent to adopt such procedures or regulations or (c) a threatened challenge asserted in connection with an audit of the Company or any of its Subsidiaries, or a threatened challenge asserted in writing against any other taxpayer that has raised capital through the issuance of securities that substantially similar to the Notes, in each case, by any legislative body, court, governmental agency
or regulatory authority, on or after the date of the original issuance of the Notes, there is more
than an insubstantial increase in the risk that interest payable on the Notes is not, or at any time subsequent to the Company’s receipt of such opinion will not be, currently deductible, in whole or in part, by the Company for U.S. federal income tax purposes.

“Telerate Page 3750” means the display on Moneyline Telerate, Inc. on page 3750 or any successor service or page for the purpose of displaying the London interbank offered rates of major banks.

 

7

 

 

 

“Total Managed Assets” means, with respect to the Company on a consolidated basis, as of any fiscal quarter end, total balance sheet assets plus securitized receivables. 

“Three-Month LIBOR,” with respect to an Interest Payment Period, means the rate (expressed as a percentage per year) for deposits in U.S. dollars for a three-month period that appears on Telerate Page 3750 as of 11:00 a.m. (London time) on the second London Banking Day immediately preceding the first day of such Interest Payment Period.

If Three-Month LIBOR cannot be determined as described above, the Company will select four major banks in the London interbank market.  The Company will request that the principal London offices of those four selected banks provide their offered quotations to prime banks in the London interbank market at approximately 11:00 a.m., London time, on the second London Banking Day immediately preceding the first day of the applicable Interest Payment Period.  These quotations will be for deposits in U.S. dollars for a three-month period.  Offered quotations must be based on a principal amount equal to an amount that is representative of a single transaction in U.S. dollars in the market at the time.

If two or more quotations are provided, Three-Month LIBOR for the Interest Payment Period will be the arithmetic mean of the quotations.  If fewer than two quotations are provided, the Company will select three offered rates quoted by three major banks in New York City, on the second London Banking Day immediately preceding the first day of the applicable Interest Payment Period.  The rates quoted will be for loans to leading European banks in U.S. dollars for a three-month period.  Rates quoted must be based on a principal amount equal to an amount that is representative of a single transaction in U.S. dollars in the market at the time.  If at least three New York City banks selected by the Company are quoting rates, Three-Month LIBOR for the Interest Payment Period will be the arithmetic
mean of the quotations.  If fewer than three New York City banks selected by the Company are quoting
rates, Three-Month LIBOR for the applicable Interest Payment Period will be the same as for the immediately preceding Interest Payment Period or, if the immediately preceding Interest Payment Period is an Interest Payment Period during the Fixed Rate Period, the same as for the most recent quarter for which Three-Month LIBOR can be determined.

“Treasury Rate” means the yield, under the heading that represents the average for the week immediately prior to the Redemption Date, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication that is published weekly by the Board of Governors of the Federal Reserve System and that establishes yields on actively traded U.S. Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the end of the relevant Interest Payment Period, yields for the two published maturities most closely corresponding to the
Comparable Treasury Issue will be determined and the Treasury Rate will be interpolated or extrapolated
from such yields on a straight line basis, rounding to the nearest month).  If such release (or any successor release) is not published during the week preceding the calculation date or does not contain such yields, “Treasury Rate” means the rate per year equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price 

8

 

 

for such Redemption Date.  The Treasury Rate will be calculated on the third Business Day preceding the Redemption Date.

“Trigger Determination Date” means the thirtieth day prior to each Interest Payment Date.

“Trigger Event” means the existence as of a Trigger Determination Date, as determined by the Company, of either of the following conditions, each determined in accordance with U.S. GAAP as applied and reflected in the Company’s relevant financial statements as of the relevant date of determination:

(i)           the Tangible Equity Amount is less than 5.5% of Total Managed Assets for the Company’s most recently completed fiscal quarter; or

(ii)          the Average Four Quarters Fixed Charge Ratio for the Company’s most recently completed fiscal quarter is less than or equal to 1.10.

provided, however, that if because of a change in U.S. GAAP that results in a change in accounting principle or a restatement (x) either of the Tangible Equity Amount or Total Managed Assets is higher or lower than it would have been absent such change, then, for purposes of the calculations described in clause (i) above, commencing with the fiscal quarter for which such changes in U.S. GAAP becomes effective, such Tangible Equity Amount or Total Managed Assets, as applicable, shall be calculated on a pro forma basis as if such change had not occurred; or (y) the Average Four Quarters Fixed Charge Ratio as of a fiscal quarter end is higher or lower than it would have been absent such change, then, for purposes of the calculations described in clause (ii) above, and for so long as such calculations
are required to be performed, the Average Four Quarters Fixed Charge Ratio shall be calculated on
a pro forma basis as if such change had not occurred.

“Trigger Period” has the meaning provided in Section 4.2 hereof.

“Trustee” shall have the meaning set forth in the preamble of this First Supplemental Indenture.

“U.S.” means the United States.

“U.S. GAAP” means, at any date or for any period, U.S. generally accepted accounting principles as in effect on such date or for such period.

ARTICLE II

 

GENERAL TERMS AND CONDITIONS OF THE NOTES

Pursuant to Section 3.1 of the Base Indenture, the Notes are hereby established with the following terms and other provisions:

Section
  2.1       Designation and Principal Amount.
  (a) There is hereby authorized a series of Securities designated the 6.10% Junior
  Subordinated Notes due March 15, 2067, 

9

 

 

which shall be junior subordinated notes issued by the Company under the Indenture, up to an initial aggregate principal amount of $500,000,000, which amount shall be as set forth in any written order of the Company for the authentication and delivery of Notes pursuant to Section 3.3 of the Base Indenture.

(b)          The Company may, from time to time, subject to compliance with any other applicable provisions of this First Supplemental Indenture but without the consent of the Holders, create and issue pursuant to this First Supplemental Indenture an unlimited principal amount of additional Securities (in excess of any amounts theretofore issued) having the same terms and conditions to those of the other outstanding Securities, except that any such additional Securities (i) may have a different issue date and issue price from other outstanding Securities and (ii) may have a different amount of interest payable on the first Interest Payment Date after issuance than the amount payable on
other outstanding Securities.  Such additional Securities shall constitute part of the same series of
Securities hereunder, unless any such adjustment pursuant to this Section 2.1(b) shall cause such additional Securities to constitute, as determined pursuant to an opinion of counsel, a different class of securities than the original series of Securities for U.S. federal income tax purposes.

Section 2.2        Final Maturity.  The date on which the principal of the Notes becomes due and payable is March 15, 2067 (the “Final Maturity”).

Section 2.3        Form and Payment.  The Notes shall be issued as Registered Securities without Coupons and shall be initially issued in the form of one or more permanent global Notes, in the form as set forth in Article VIII.  The Notes shall be issued in denominations of $2,000 and integral multiples of $1,000 in excess thereof.  Payment of any principal (and premium, if any) and interest on Notes issued as global Notes shall be payable by the Company through the Paying Agent to the Depositary in immediately available funds.

Section
  2.4      Interest.

(a)          Fixed Rate Period.   (i) Subject to Article IV, during the Fixed Rate Period, the Notes will bear interest, accruing from, and including, the date of initial issuance, at the per annum rate of 6.10% (the “Fixed Rate”), payable semi-annually in arrears on each Interest Payment Date.

(ii)          The amount of interest payable for any full Interest Payment Period during the Fixed Rate Period will be computed on the basis of a 360-day year of twelve thirty-day months, and the amount of interest payable for any period shorter than a full Interest Payment Period for which interest is computed will be computed on the basis of thirty-day months and, for periods of less than a thirty-day month, the actual number of days elapsed per thirty-day month.

(iii)        In the event that any Interest Payment Date during a Fixed Rate Period is not a Business Day, payment of the interest payable on such Interest Payment Date shall be made on the next succeeding day that is a Business Day without any interest or other payment in respect of any such delay.

 

10

 

 

 

(b)          Floating Rate Period.  (i) Subject to Article IV, during a Floating Rate Period, the Notes will bear interest at the per annum rate of Three-Month LIBOR plus a margin equal to 1.815% (the “Floating Rate”), payable quarterly in arrears on each Interest Payment Date.

(ii)          The amount of interest payable will be computed on the basis of a 360-day year and the actual number of days elapsed in each quarterly Interest Payment Period.  All percentages resulting from any interest rate calculation will be rounded upward or downward, as appropriate, to the next higher or lower one-hundred-thousandth of a percentage point.

(iii)        If a scheduled Interest Payment Date during a Floating Rate Period is not a Business Day, such Interest Payment Date shall be postponed to the next succeeding day that is a Business Day; provided that if such Business Day is in the next succeeding calendar month, such Interest Payment Date shall be the immediately preceding Business Day.

(c)          The Calculation Agent will calculate the applicable Floating Rate and the amount of interest payable on each quarterly Interest Payment Date during the Floating Rate Period.  Promptly upon such determination, the Calculation Agent will notify the Company and, if the Trustee is not then serving as the Calculation Agent, the Trustee, of the Floating Rate for the new quarterly Interest Payment Period.  The Floating Rate determined by the Calculation Agent, absent manifest error, will be binding and conclusive on the Company and the holders of the Notes and the Trustee.

(d)          Interest will accrue and compound semi-annually at the Fixed Rate during the Fixed Rate Period and quarterly at the Floating Rate during the Floating Rate Period from and including the date of initial issuance or the last Interest Payment Date in respect of which interest has been paid or duly provided for, as applicable, to, but not including, the next succeeding Interest Payment Date on which the interest is actually paid, an earlier Redemption Date or the Final Maturity, as the case may be.  Otherwise than in connection with the Final Maturity of, early redemption of, or the payment in whole or in part of Defaulted Interest on the Notes, interest on the Notes may be paid only on an Interest Payment Date.

(e)          To the extent permitted by applicable law, interest not paid when due hereunder, including, without limitation, any Optionally Deferred Interest or Mandatorily Deferred Interest, will accrue Compounded Interest until paid.  References to “interest” in the Base Indenture and this First Supplemental Indenture include references to such Compounded Interest.

(f)           Interest shall be payable on each Interest Payment Date to the person in whose name the Note is registered at the close of business on the Business Day next preceding such Interest Payment Date; provided, that  Optionally Deferred Interest or  Mandatorily Deferred Interest shall be payable to the person in whose name the Note is registered at the close of business on the Business Day next preceding the Interest Payment Date on which such Optionally Deferred Interest or Mandatorily Deferred Interest is paid.  In the event the Notes do not remain in book-entry only form or are not in the form of a global Note, the Company shall 

11

 

 

select the applicable record dates, which will be at least one Business Day before the applicable Interest Payment Date.

ARTICLE III

 

REDEMPTION OF THE NOTES

Section 3.1        Optional Redemption.  The Company shall have the right, at its option, to redeem the Notes for cash, in whole or in part, on or after March 15, 2017, at a cash redemption price equal to the Par Redemption Amount.  Prior to March 15, 2017, the Company shall have the right, at its option, to redeem the Notes in whole or in part (or upon the occurrence of a Tax Event or a Rating Agency Event, in whole but not in part) at a cash redemption price equal to the applicable Make-Whole Redemption Amount.  Notwithstanding the foregoing, the Company may not redeem in part unless all accrued and unpaid interest, together with any Compounded Interest, has been paid in full on all Notes for all Interest Payment Periods terminating on or before the Redemption Date.

Section 3.2        Redemption Procedure for Notes.  Solely with respect to the Notes, Section 11.4 of the Base Indenture is hereby amended and supplemented as follows:

	
             
  	
            (i)
 	
            by replacing the first sentence of the first paragraph with the following:
 

Notice of redemption shall be given in the manner provided in Section 1.6, not less than fifteen days and not more than 60 days prior to the Redemption Date to the Holders of Notes to be redeemed.

	
             
  	
            (ii)
 	
            by replacing the third paragraph with the following:
 

Each notice shall state:  (i) the Redemption Date; (ii) the Redemption Price; (iii) that the Notes are being redeemed pursuant to the Indenture or the terms of the Notes together with the facts permitting such redemption; (iv) if less than all outstanding Notes are to be redeemed, the identification (and, in the case of partial redemption, the principal amounts) of the particular Notes to be redeemed; (v) if any Note is to be redeemed in part only, that, upon surrender of such Note, a new Note or Notes of authorized denominations shall be issued for the principal amount thereof remaining unredeemed; (vi) the place or places where the Notes are to be redeemed; and (vii) that, on the Redemption Date, the Par Redemption Amount or the applicable Make-Whole
Redemption Amount (as the case may be) shall become due and payable upon each Note or portion thereof to
be redeemed and interest thereon shall cease to accrue on and after the Redemption Date.

Section 3.3        No Sinking Fund.  The Notes are not entitled to the benefit of any sinking fund.

 

12

 

 

 

ARTICLE IV

 

OPTIONAL DEFERRAL OF INTEREST AND TRIGGER EVENTS

Section 4.1        Optional Deferral of Interest.  (a)  So long as no Event of Default or Trigger Event has occurred and is continuing, the Company may elect at any time during the term of the Notes, and from time to time, to defer one or more payments of interest on such Notes (an “Optional Deferral,” any such deferred interest, “Optionally Deferred Interest” and the period during which such Optionally Deferred Interest is deferred, an “Optional Deferral Period”) for up to ten consecutive years (including any time an Optional Deferral is suspended pursuant to Section 4.2 hereof), provided that any such deferral may not extend beyond the Final
Maturity.  The Company may pay Optionally Deferred Interest (including Compounded Interest thereon) out of any source of funds.  Optionally Deferred Interest will continue to accrue and compound semi-annually or quarterly, as applicable, to the extent permitted by applicable law, at the applicable Coupon Rate.  There is no limit on the number of times or the aggregate number of years of Optional Deferral that the Company may elect, so long as no single Optional Deferral Period (together with any period of Mandatory Deferral) extends beyond ten consecutive years (or the Final Maturity, if earlier), at which time the Company shall pay all accrued and unpaid interest on the Notes.  For the avoidance of doubt, during any period of Optional Deferral or Mandatory Deferral, (i) accrued and unpaid interest on the Notes will continue to accrue Compounded Interest and (ii) the restrictions on payment by the Company of dividends and other distributions on capital stock pursuant to Section 6.1 hereof will
apply.

(b)          The Company shall provide a notice of any Optional Deferral not more than sixty and not less than fifteen days prior to the relevant Interest Payment Date.  Subject to Section 4.2(b) hereof, a notice of Optional Deferral, once given, shall be irrevocable and the deferral of interest payments on the related Interest Payment Date will be considered an Optional Deferral, unless a Trigger Event has occurred as of the thirtieth day prior to such Interest Payment Date.

Section 4.2        Trigger Events.  (a)  If and to the extent that a Trigger Event has occurred and is continuing, and regardless of any notice of Optional Deferral that has been previously delivered, the Company shall use Commercially Reasonable Efforts to satisfy payment of interest on the Notes (excluding any Optionally Deferred Interest (including Compounded Interest thereon), which may remain unpaid or be paid out of any source of funds) in accordance with the Alternative Payment Mechanism, and to the extent payment of interest is not made pursuant thereto, the Company shall be required to mandatorily defer interest (a “Mandatory Deferral” and any such deferred
interest, “Mandatorily Deferred Interest”).
If a Market Disruption Event prevents the Company from making such interest payment in accordance with the Alternative Payment Mechanism, the Company shall defer payments of interest until the termination of the Market Disruption Event, but not later than ten consecutive years after the first date on which the Company deferred interest (whether due to an Optional Deferral or Mandatory Deferral) or the Final Maturity.  Any interest that is accrued and unpaid during a period when a Trigger Event has occurred and is continuing (a “Trigger Period”) will continue to accrue and compound semi-annually or quarterly, as applicable, to the extent permitted by applicable law, at the applicable Coupon Rate.  Non-payment of interest (whether due to an Optional Deferral or Mandatory Deferral) may not continue for more than ten 

13

 

 

consecutive years or extend beyond the Final Maturity of the Notes.  If a Trigger Event occurs after commencement of an Optional Deferral, the Optional Deferral will be deemed suspended during the Trigger Period.  After the Trigger Period is no longer continuing, the Company’s right of Optional Deferral will resume, subject to the limitations set forth herein.

In the event that a Trigger Period is no longer continuing, the Company may pay subsequent interest in cash from any source of funds.  Notwithstanding the foregoing, any Mandatorily Deferred Interest, together with any Compounded Interest on Mandatorily Deferred Interest, that accrued during the continuance of a Trigger Period may only be satisfied in accordance with the provisions of the Alternative Payment Mechanism, except upon the Final Maturity or an Event of Default with respect to the Notes in which case the Company may pay such interest with cash from any source; provided, however, that any accrued and unpaid interest will in all events be due and payable upon the Final Maturity or redemption of the Notes, except for Foregone Interest (if any).

During a Trigger Period, the restrictions on interest payments from sources other than the Alternative Payment Mechanism will continue until neither of the conditions in clauses (i) and (ii) of the definition of “Trigger Event” exists as of a subsequent Trigger Determination Date.

(b)          By not later than the fifteenth day prior to each Interest Payment Date during a Trigger Period, the Company will give notice of the continuance of such Trigger Period to the Holders of the Notes.  Such notice will, in addition to stating that payments of interest must be in accordance with the Alternative Payment Mechanism or otherwise deferred, set forth the results of the financial tests that caused the Trigger Event.

ARTICLE V

 

EVENTS OF DEFAULT

Section 5.1        Events of Default.  (a)  Section 5.1 of the Base Indenture is hereby amended and supplemented with respect to the Notes by deleting clauses (1), (3), (4), (5) and (8) thereof and adding the following additional Events of Default:

(i)           default for thirty calendar days in the payment of any interest on the Notes when it becomes due and payable; provided, however, that a default under this provision will not arise with respect to any Interest Payment Date if the Company has properly deferred the interest otherwise payable on such date in connection with an Optional Deferral or a Mandatory Deferral in accordance with Article IV; and

(ii)          any non-payment of interest on the Notes, whether due to an Optional Deferral or Mandatory Deferral, or a combination thereof, that continues for more than ten consecutive years, without all accrued and unpaid interest (including Compounded Interest) having been paid in full.

(b)          For the avoidance of doubt, Events of Default with respect to the Notes do not include failure to comply with or breach of the Company’s other covenants set forth in the Indenture, including Article X (other than Section 10.1) of the Base Indenture and Article VI hereof, with respect to the 

14

 

 

Notes (an “Other Covenant Default”), including the covenant to sell shares of the Company’s Common Stock or Qualifying Preferred Stock through the Alternative Payment Mechanism to meet certain interest payment obligations or the requirement imposed on the Company not to use sources (other than the Alternative Payment Mechanism) for the payment of Mandatorily Deferred Interest.

(c)          Holders of the Notes may not themselves institute a proceeding against the Company on account of an Other Covenant Default unless the Trustee fails to institute such a proceeding.  However, the Holders of a majority in principal amount of the Notes may direct the Trustee to bring such a proceeding if an Other Covenant Default continues for a period of ninety days after delivery of written notice to the Company from the Trustee or to the Company and the Trustee from the Holders of a majority in principal amount of the Notes (“Other Covenant Default Notice”), subject to the terms hereof.  Except with respect to the covenants described in Article VIII and Article X (other than Section 10.1) of the Base Indenture and Article VI hereof, the Trustee shall not be required to take
any action in case of an Other Covenant Default (other than to give notice of such default to the Holders of the Notes) unless so directed by the Holders.  In case of the Company’s breach of covenant described in  Article VIII and Article X (other than Section 10.1) of the Base Indenture and Article VI hereof, such breach, after its continuance for ninety days after delivery of notice, will be treated as an Event of Default with respect to the Notes, and the Trustee will have all of the rights, duties and obligations, and the Holders of the Notes will have all of the rights, in respect of such breach of covenant as if such breach of covenant were such an Event of Default, except that there will be no right to accelerate the payment of the Notes pursuant to Section 5.2 of the Base Indenture or otherwise.

(d)          Subject to the provisions of Section 5.1(c) hereof, as to Other Covenant Defaults, the provisions of Section 5.7 of the Base Indenture shall apply with respect to limitations on suits, proceedings and remedies.

(e)          Section 5.3 of the Base Indenture is hereby amended with respect to the Notes by deleting clauses (1) thereof and adding the following in its place thereof:

 “(1)       default is made in the payment of any installment of interest on any Security or any Coupon appertaining thereto when such interest shall have become due and payable and such default continues for a period of 30 days; provided, however, that a default under this provision will not arise with respect to any Interest Payment Date if the Company has properly deferred the interest otherwise payable on such date in connection with an Optional Deferral or a Mandatory Deferral in accordance with Article IV, or”

ARTICLE VI

 

COVENANTS

Article 10 of the Base Indenture is hereby supplemented with respect to the Notes by the following additional covenants of the Company:

Section
  6.1       Certain Restrictions on Company Payments.
  On any date on which accrued interest on the Notes through the most recent Interest
  Payment Date has not been paid in full and until such time as all accrued and
  unpaid interest on the Notes, together with any 

15

 

 

Compounded Interest, is paid in full, the Company shall not, and shall not permit any of its Subsidiaries to, declare or pay any dividends or any distributions on, or make any payments of interest, principal or premium, or any guarantee payments on, or redeem, purchase, acquire or make a liquidation payment on, any capital stock of the Company, debt securities that rank equal or junior to the Notes or guarantees that rank equal or junior to the Notes, in each case other than:

	
             
 	
            (i)
 	
            purchases of the Company’s capital stock in connection with employee or agent benefit plans or under any dividend reinvestment plan;
 

	
             
 	
            (ii)
 	
            purchases or repurchases of shares of the Company’s capital stock pursuant to a contractually binding requirement to buy stock existing prior to the beginning of any Optional Deferred Period or Mandatory Deferral Period, including under a contractually binding stock repurchase plan;
 

	
             
 	
            (iii)
 	
            in connection with the reclassification of any class or series of the Company’s  capital stock, or the exchange or conversion of one class or series of the Company’s capital stock for or into another class or series of the Company’s capital stock;
 

	
             
 	
            (iv)
 	
            the purchase of fractional interests in shares of the Company’s capital stock in connection with the conversion or exchange provisions of such capital stock or the security into or for which such capital stock is being converted or exchanged;
 

	
             
 	
            (v)
 	
            dividends or distributions in the form of the Company’s capital stock or rights to acquire the Company’s capital stock (where in each case such capital stock is the same stock on which the dividend or distribution is being paid or ranks pari passu or junior to such capital stock), or repurchases or redemptions of Common Stock solely from the issuance or exchange of Common Stock;
 

	
             
 	
            (vi)
 	
            any declaration of a dividend in connection with the implementation of a shareholder rights plan, or issuances of capital stock under any such plan in the future, or redemptions or repurchases of any rights outstanding under a shareholder rights plan;
 

	
             
 	
            (vii)
 	
            acquisitions of the Company’s capital stock previously issued in connection with acquisitions of businesses made by the Company (which acquisitions of the Company’s capital stock are made by the Company in connection with the satisfaction of indemnification obligations of the sellers of such businesses);
 

	
             
 	
            (viii)
 	
            the payment of any dividend within 60 days after the date of declaration thereof, if the date of declaration was prior to the beginning of any interest deferral period, whether optional or mandatory;
 

	
             
 	
            (ix)
 	 any
        payment of current interest in respect of debt securities that rank equally
        with the Notes (“Parity Debt Securities”) having
        the same interest payment date as the Notes made ratably to the holders
        of one or more series of such
 

 

16

 

 

 

	 	 	 Parity Debt
      Securities and the Notes in proportion to the respective amounts due on
      such Parity Debt Securities, on the one hand, and on the Notes, on the other
      hand;
	  
	 (x)
	 any
        payment of principal in respect of Parity Debt Securities having the same
        Final Maturity as the Notes made ratably to the holders of one or more
        series of such Parity Debt Securities and the Notes in proportion to the
        respective amounts due on such Parity Debt Securities, on the one hand,
        and on the Notes, on the other hand; or

	
             
 	
            (xi)
 	
            any payment in respect of guarantees that rank equally with the Notes (“Parity Guarantees”) made ratably to the beneficiaries of one or more of such Parity Guarantees and the Holders of the Notes in proportion to the respective accrued and unpaid amounts due on such Parity Guarantees, on the one hand, and accrued and unpaid amounts on the Notes, on the other hand.
 

Section
  6.2       Obligation
  to Effect Certain Sales of Common Stock or Qualifying Preferred Stock; Alternative
  Payment Mechanism. (a) If, as of a Trigger Determination
  Date, a Trigger Event has occurred and for so long as it is continuing (regardless
  of whether a notice of an Optional Deferral has been delivered), the Company
  shall make Commercially Reasonable Efforts to effect sales of (i) the Company’s
  Common Stock (which may include treasury shares and shares of Common Stock sold
  pursuant to any dividend reinvestment plan or employee benefit plan of the Company)
  in an aggregate amount not exceeding the Share Cap Amount or (ii) Qualifying
  Preferred Stock, such that the Company will have raised an aggregate amount
  of net proceeds from such sales, together with any other sales of such securities
  over the 180-day period prior to the next Interest Payment Date, that is sufficient
  to satisfy accrued and unpaid interest (including any Compounded Interest) on
  the Notes (excluding any Optionally Deferred Interest (including Compounded
  Interest thereon), which may remain unpaid or be paid out of any source of funds)
  on such Interest Payment Date, and the Company shall satisfy such accrued and
  unpaid interest (including any Compounded Interest) on the Notes on such Interest
  Payment Date to the extent, and only to the extent, of the amount of such aggregate
  net proceeds (the “Alternative Payment Mechanism”);
  provided that (i) in no event shall the sale of Qualified Preferred Stock in
  connection with Alternative Payment Mechanism in the aggregate exceed 25% of
  the original aggregate principal amount of the Notes and (ii) the Company may,
  in its discretion, increase the Share Cap Amount (including through the increase
  of its authorized share capital, if necessary) if the Company determines
  that such increase is necessary to allow it to issue sufficient shares of its
  Common Stock to satisfy its obligations to pay Mandatorily Deferred Interest
  on the Notes pursuant to the Alternative Payment Mechanism; provided, further,
  that the Company’s obligation to make Commercially Reasonable Efforts to
  sell its Common Stock or Qualifying Preferred Stock to satisfy its obligation
  to pay interest (x) is subject to the occurrence of a Market Disruption Event,
  (y) does not apply to any Optionally Deferred Interest (including Compounded
  Interest thereon) and (z) does not apply at the Final Maturity or if an Event
  of Default with respect to the Notes has occurred and is continuing. To the
  extent that the amount of such proceeds is insufficient to satisfy all such
  accrued and unpaid interest (including Compounded Interest on Mandatorily Deferred
  Interest) on such Interest Payment Date, the Company shall be required to mandatorily
  defer any accrued and unpaid interest (other than Optionally Deferred Interest (including Compounded Interest thereon)). If a Market Disruption Event prevents
  the Company from making interest payments in

 

17

 

 

accordance with the Alternative Payment Mechanism, the Company shall be required
  to defer payments of interest until the earliest of (i) the termination
  of the Market Disruption Event, (ii) the date ten consecutive years after
  the first date on which the Company, either due to an Optional Deferral or a
  Mandatory Deferral, deferred interest, and (iii) the Final Maturity.

(b)          In the event that net proceeds received by the Company pursuant to the Alternative Payment Mechanism are not sufficient to satisfy the full amount of Mandatorily Deferred Interest on any Interest Payment Date, such net proceeds will be paid to the Holders of the Notes on a pro rata basis.

(c)          Any interest payment made pursuant to the provisions of this Section 6.2 will first be allocated to payment of the interest due on the Interest Payment Date for the current period.  Any payment of interest in excess of the amount of the interest due on the Interest Payment Date for the current period will be applied first against any then existing accrued and unpaid interest with respect to prior interest periods for which interest must be paid pursuant to the Alternative Payment Mechanism, in chronological order beginning with the earliest Interest Payment Period for which interest has not been paid in full and for which such interest must be paid pursuant to the Alternative Payment
Mechanism, including Compounded Interest.  In the event that the Company defers an interest payment on the
Notes and on other securities that rank equally with the Notes and contain similar requirements to pay interest pursuant to the Alternative Payment Mechanism, the Company shall apply any net proceeds so raised on a pro rata basis towards its obligations to pay interest on the Notes and such equally ranking securities in proportion to the total amounts that are due on the Notes and such securities, or on such other basis as any regulatory authority may instruct (taking into account the availability of proceeds of preferred shares or other securities to settle deferred interest under any such other equally ranking securities).

Section 6.3        Posting of Financial Statements.  If at any relevant time or for any relevant period, the Company is not a reporting company under the Exchange Act, then for any such relevant dates and periods the Company shall prepare and post on its Web site at www.cit.com the financial statements that it would have been required to file with the SEC had it continued to be a reporting company under the Exchange Act, in each case on or before the dates that the Company would have been required to file such financial statements had the Company continued to be a “large accelerated filer” within the meaning of Rule 12b-2 under the Exchange Act.

ARTICLE VII

 

SUBORDINATION

Section
  7.1       Agreement to Subordinate. Solely
  for the purposes of the Notes, Section 16.1 of the Base Indenture is hereby
  amended by deleting the third paragraph of such Section and inserting the following
  in its place: 

The Indebtedness represented by the Securities shall not be deemed to constitute “Senior Indebtedness,” as such term is defined herein. 

 

18

 

 

 

ARTICLE VIII

 

FORM OF NOTE

Section 8.1        Form of Note.  The Notes and the Trustee’s Certificate of Authentication to be endorsed thereon are to be substantially in the following forms:

(FORM OF FACE OF NOTE)

[IF THE NOTE IS TO BE A GLOBAL NOTE, INSERT - THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE CLEARING AGENCY OR A NOMINEE OF THE CLEARING AGENCY.  THIS NOTE IS EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE CLEARING AGENCY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS A WHOLE BY THE CLEARING AGENCY TO A NOMINEE OF THE CLEARING AGENCY OR BY A NOMINEE OF THE CLEARING AGENCY TO THE CLEARING AGENCY OR ANOTHER NOMINEE OF THE CLEARING AGENCY) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.]

[UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT HEREON IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

CIT GROUP INC.

6.10% Junior Subordinated Notes due March 15, 2067

	
            No.  R-1
 	
             
 	
            $__________
 
	
             
 	
             
 	
            CUSIP No.  ____________
 
	
             
 	
             
 	
             
 

CIT
  GROUP INC., a corporation organized and existing under the laws of Delaware
  (hereinafter called the “Company”,
  which term includes any successor corporation under the Indenture hereinafter
  referred to), for value received, hereby promises to pay to _____________________,
  or registered assigns, the principal sum of _________ dollars ($_______) on
  March 15, 2067 (the “Final Maturity”).
  Notwithstanding the preceding sentence, in the event that the Final Maturity
  is not a Business Day, then the Final Maturity will be the next succeeding day
  which is a Business Day. The Company further promises to pay interest on said
  principal sum from January 31, 2007 or from the most recent interest payment
  date to which interest has been paid or duly provided for. To, but not including,
  March 15, 2017 or earlier redemption (the “Fixed
  Rate 

19

 

 

Period”), each Outstanding Note will bear interest at the per annum rate of 6.10% (the “Fixed Rate”) payable (subject to the interest deferral provisions of the First Supplemental Indenture) semi-annually in arrears on March 15 and September 15 of each year (each such date, an “Fixed Rate Interest Payment Date”), commencing on September 15, 2007, and (to the extent that payment of such interest is enforceable under applicable law) on any overdue installment of interest at such interest rate, compounded semi-annually.  The amount of interest payable for any full Interest Payment Period during the Fixed Rate Period will be computed on the basis of a
360-day year of twelve thirty-day months, and the amount of interest payable for any period shorter than
a full Interest Payment Period for which interest is computed will be computed on the basis of thirty-day months and, for periods of less than a thirty-day month, the actual number of days elapsed per thirty-day month.  From March 15, 2017 up to but not including the Final Maturity or earlier redemption (the “Floating Rate Period”), the Notes will bear interest at the per annum rate of Three-Month LIBOR plus a margin equal to 1.815% (the “Floating Rate”), payable quarterly in arrears on March 15, June 15, September 15 and December 15 (a “Floating Rate Interest Payment Date” and together with a Fixed Rate Interest Payment Date, an “Interest Payment Date”),
commencing June 15, 2017.  The amount of interest payable during the Floating Rate Period will be computed
on the basis of a 360-day year and the actual number of days elapsed in each quarterly Interest Payment Period.  All percentages resulting from any interest rate calculation will be rounded upward or downward, as appropriate, to the next higher or lower one-hundred-thousandth of a percentage point.  Interest will accrue and compound semi-annually at the Fixed Rate during the Fixed Rate Period and quarterly at the Floating Rate during the Floating Rate Period from and including the date of initial issuance or the last Interest Payment Date in respect of which interest has been paid or duly provided for, as applicable, to, but not including, the next succeeding Interest Payment Date on which the interest is actually paid, an earlier Redemption Date or the Final Maturity, as the case may be.  If any Interest Payment Date during the Fixed Rate Period is not a Business Day, then the Interest Payment Date shall be the immediately succeeding Business Day, without any interest or other
payment in respect of any such delay, and if any Interest Payment Date during the Floating Rate Period is not a Business Day, then the Interest Payment Date shall be the immediately succeeding Business Day, except that if during the Floating Rate Period such Business Day is in the next succeeding calendar month, then such Interest Payment Date will be the immediately preceding Business Day.  If this Note has been issued upon transfer of, or exchange for, or in replacement of a predecessor Note, interest on this Note shall accrue from the last Interest Payment Date to which interest was paid on such predecessor Note or, if no interest was paid on any such predecessor Note, from January 31, 2007.  The interest (including Compounded Interest) on this Note shall be payable at the office or agency of the Company maintained for that purpose in the Borough of Manhattan, The City of New York, in any coin or currency of the United States of America which at the time of payment is legal
tender for payment of public and private debts; provided, however, that payment of interest may be made at the option of the Company by check mailed to the registered Holder at such address as shall appear in the Security Register or by transfer to an account maintained by the payee with a bank located in the United States.  Payment of the principal of, and interest, if any, on this Note due to the Holder hereof at Final Maturity will be made in U.S. dollars, in immediately available funds, upon surrender of this Note to the Company, the corporate trust office or Paying Agent.

The indebtedness evidenced by this Note is, to the extent provided in the Indenture, subordinate and junior in right of payment to the prior payment in full of all Senior 

20

 

 

Indebtedness, and this Note is issued subject to the provisions of the Indenture with respect thereto.  Each Holder of this Note, by accepting the same, (a) agrees to and shall be bound by such provisions, (b) authorizes and directs the Trustee on his behalf to take such action as may be necessary or appropriate to acknowledge or effectuate the subordination so provided and (c) appoints the Trustee his attorney-in-fact for any and all such purposes.  Each Holder hereof, by his acceptance hereof, hereby waives all notice of the acceptance of the subordination provisions contained herein and in the Indenture by each Holder of Senior Indebtedness, whether now outstanding or hereafter incurred, and waives reliance by each such Holder upon said provisions.

Reference is hereby made to the further provisions of this Note set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.

Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal.

Dated: January __, 2007

	 	 
	 	CIT GROUP INC.
	 	 
	 	 
	 	 
	  
	 By:
	 
	 	 	Name:
	 	 	Title:

 

Attest:

 

________________________

Name:

Title:

 

This is one of the Notes referred to in the within mentioned Indenture.

 

	 	THE BANK OF NEW YORK

 

21

 

 

 

	  
	 By:
	 
	 	 	Authorized Signatory

 

 

22

 

 

 

[REVERSE OF NOTE]

This Note is one of a duly authorized issue of securities of the Company (herein called the “Notes”), issued and to be issued in one or more series under an Indenture, dated as of January 20, 2006 (herein called the “Base Indenture”), between the Company and JPMorgan Chase Bank, N.A., as amended and supplemented by a First Supplemental Indenture, dated as of January 31, 2007 (the “First Supplemental Indenture”) between the Company and the Bank of New York, as successor trustee (herein called the “Trustee”, which term includes any successor trustee under the Indenture) (the Base Indenture together with the
Supplemental Indenture, the “Indenture”), to which
Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Trustee, the Company and the Holders of the Notes, and of the terms upon which the Notes are, and are to be, authenticated and delivered.  This Note is one of the series designated on the face hereof, limited in aggregate principal amount to $ _______.

All terms used in this Note that are defined in the Indenture shall have the meanings assigned to them in the Indenture.

The Company shall have the right, at its option, to redeem the Notes for cash, in whole or in part, on or after March 15, 2017 at a cash redemption price equal to the Par Redemption Amount.  Prior to March 15, 2017, the Company shall have the right, at its option, to redeem the Notes in whole or in part (or upon the occurrence of a Tax Event or a Rating Agency Event, in whole but not in part) at a cash redemption price equal to the applicable Make-Whole Redemption Amount.  Any redemption will be made upon not less than fifteen days nor more than sixty days notice before the date fixed for redemption to the registered Holder of the Notes.  

The Notes are not entitled to the benefit of any sinking fund.

If an Event of Default with respect to Notes of this series shall occur and be continuing, the principal of the Notes of this series may be declared due and payable in the manner, with the effect and subject to the conditions provided in the Indenture.

The Indenture contains provisions for satisfaction, discharge and defeasance at any time of the entire indebtedness of this Note upon compliance by the Company with certain conditions set forth in the Indenture.

The Indenture permits, with certain exceptions as therein provided, the Company and the Trustee at any time to enter into a supplemental indenture or indentures for the purpose of modifying in any manner the rights and obligations of the Company and of the Holders of the Securities, with the consent of the Holders of not less than a majority in principal amount of the Outstanding Securities of each series to be affected by such supplemental indenture.  The Indenture also contains provisions permitting Holders of not less than a majority in principal amount of the Outstanding Securities of any series, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by 

 

23

 

 

the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note.

So long as no Event of Default or Trigger Event has occurred and is continuing under the Indenture, the Company may elect at any time during the term of the Notes, and from time to time, to defer one or more payments of interest on such Notes (an “Optional Deferral,” any such deferred interest, “Optionally Deferred Interest,” and the period during which such Optionally Deferred Interest is deferred, an “Optional Deferral Period”) for up to ten consecutive years (including any time an Optional Deferral is suspended pursuant to Section 4.2 of the First Supplemental Indenture), provided that any such deferral may not extend beyond the Final Maturity.  The Company may pay Optionally Deferred Interest (including
Compounded Interest thereon) out of any source of funds.  Optionally Deferred Interest will continue to accrue and compound semi-annually or quarterly, as applicable, to the extent permitted by applicable law, at the applicable Coupon Rate.  During any period of Optional Deferral or Mandatory Deferral, accrued and unpaid interest on the Notes will continue to accrue Compounded Interest at the applicable Coupon Rate and the restrictions on payment by the Company of dividends and other distributions on capital stock pursuant to Section 6.1 of the First Supplemental Indenture will apply.  There is no limit on the number of times or the aggregate number of years of Optional Deferral that the Company may elect, so long as no single Optional Deferral Period (together with any period of Mandatory Deferral) extends beyond ten consecutive years (or the Final Maturity, if earlier), at which time the Company shall pay all accrued and unpaid interest on the Notes.

If and to the extent that a Trigger Event has occurred and is continuing, and regardless of any notice of Optional Deferral that has been previously delivered, the Company shall use Commercially Reasonable Efforts to satisfy payment of interest on the Notes (excluding any Optionally Deferred Interest (including Compounded Interest thereon), which may remain unpaid or be paid out of any source of funds) only to the extent that such interest is paid in accordance with the Alternative Payment Mechanism set forth in Section 6.2 of the First Supplemental Indenture, and to the extent payment of interest is not made pursuant thereto, the Company shall be required to mandatorily defer interest (a “Mandatory Deferral” and any such deferred interest, “Mandatorily Deferred Interest”).  If a Market Disruption Event prevents the Company from making such interest payments in accordance with the Alternative Payment Mechanism, the Company shall defer such payments of interest until the termination of the Market Disruption Event, but not later than ten consecutive years after the first date on which the Company deferred interest (whether due to an Optional Deferral or Mandatory Deferral) or the Final Maturity.  Any interest that is accrued and unpaid during a period when a Trigger Event has occurred and is continuing (a “Trigger Period”) will continue to accrue and compound semi-annually or quarterly, as applicable, to the extent permitted by applicable law, at the applicable Coupon Rate.

In the event that a Trigger Period is no longer continuing, the Company may pay subsequent interest in cash from any source of funds.  Notwithstanding the foregoing, any Mandatorily Deferred Interest, together with any Compounded Interest on Mandatorily Deferred Interest, that accrued during the continuance of a Trigger Period may only be satisfied in accordance with the provisions of the Alternative Payment Mechanism, except upon the Final 

 

24

 

 

Maturity or an Event of Default with respect to the Notes in which case the Company may pay such interest with cash from any source; provided, however, that any accrued and unpaid interest will in all events be due and payable upon the Final Maturity or redemption of the Notes, except for Foregone Interest (if any). 

During a Trigger Period, the restrictions on interest payments from sources other than the Alternative Payment Mechanism will continue until neither of the conditions in clauses (i) and (ii) of the definition of “Trigger Event” exists as of the thirtieth day prior to an Interest Payment Date.  

Each Holder of a Note, by such Holder’s acceptance thereof, agrees that upon any payment or distribution of assets to creditors of the Company upon any liquidation, dissolution, winding up, reorganization, or in connection with any insolvency, receivership or proceeding with respect to the Company, such Holder shall not have a claim for, and thus no right to receive, interest that is unpaid due to a Trigger Event (including Compounded Interest) and has not been settled through the application of the Alternative Payment Mechanism, to the extent that the aggregate amount thereof (including Compounded Interest) exceeds two years of accrued and unpaid Mandatorily Deferred Interest.

Except as provided in the immediately preceding paragraph and Article X of the First Supplemental Indenture, no reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of (and premium, if any) and interest on this Note at the times, place and rate, and in the coin or currency, herein prescribed.

The Notes are issuable only in registered form without coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof.  As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note is registrable in the Securities Register, upon surrender of this Note for registration of transfer at the office or agency of the Company maintained under Section 10.2 of the Base Indenture duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Securities Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes of this series, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees.  No service charge shall be made for any such registration
of transfer or exchange, but the Company may require payment of a sum sufficient to cover any stamp tax or other governmental charge payable in connection therewith.

The Bank of New York will initially act as Paying Agent and Calculation Agent. The Company may appoint and change any Paying Agent or Calculation Agent without notice, other than notice to the Trustee.  The Company or any of its Subsidiaries or any of their Affiliates may act as Paying Agent or Calculation Agent.

Prior to due presentment of this Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, 

 

25

 

 

and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

No recourse shall be had for the payment of the principal of or the interest on this Note, or for any claim based hereon, or otherwise in respect hereof, or based on or in respect of the Indenture, against any incorporator, shareholder, officer or director, past, present or future, as such, of the Company or of any predecessor or successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issuance hereof, expressly waived and released.

The Company agrees and, by its acceptance of this Note or a beneficial interest therein, the Holder of, and any Person that acquires a beneficial interest in, this Note agrees to treat this Note as indebtedness for United States federal, state and local tax purposes.

This Note shall not be valid or become obligatory for any purpose until the Trustee’s certificate of authentication hereon shall have been signed by an authorized officer of the Trustee or its duly authorized agent under the Indenture.

THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

ARTICLE IX

 

ORIGINAL ISSUE OF NOTES

Section
  9.1       Original Issue
  of Notes. Notes in the initial aggregate principal amount not to exceed
  $500,000,000, except as provided in Section 2.1(b) hereof, may, upon execution
  of this First Supplemental Indenture, be executed by the Company and delivered
  to the Trustee for authentication, and the Trustee shall thereupon authenticate
  and deliver said Notes to or upon the written order of the Company, signed by
  an Authorized Officer of the Company.

The Company shall file with the Trustee promptly at the end of each calendar year (i) a written notice specifying the amount of original issue discount (including daily rates and accrual periods) accrued on Outstanding Securities as of the end of the year and (ii) such other specific information relating to such original issue discount as may then be relevant under the Internal Revenue Code of 1986, as amended from time to time.

ARTICLE X

 

LIMITATION ON CLAIMS

Section
  10.1     Limitation
  on Claim for Deferred Interest Due to a Trigger Event in Bankruptcy.
  Each Holder of a Note, by such Holder’s acceptance thereof, agrees that
  upon any payment or distribution of assets to creditors of the Company upon
  any liquidation, dissolution, winding up, reorganization, or in connection with
  any insolvency, receivership or proceeding with respect to the Company, such
  Holder shall not have a claim for, and thus no right to receive, interest that
  is unpaid due to a Trigger Event (including Compounded 

 

26

 

 

Interest) and has not been settled through the application of the Alternative Payment Mechanism, to the extent that the aggregate amount thereof (including Compounded Interest) exceeds two years of accrued and unpaid Mandatorily Deferred Interest.  Amounts to which the Holders of the Notes would have been entitled to receive hereunder, but for operation of this Section 10.1, are referred to as “Foregone Interest.”

ARTICLE XI

 

MISCELLANEOUS

Section
  11.1     Ratification
  of Indenture. The Base Indenture as amended and supplemented
  by this First Supplemental Indenture, is in all respects ratified and confirmed,
  and this First Supplemental Indenture shall be deemed part of the Base Indenture
  in the manner and to the extent herein and therein provided.

Section
  11.2     Governing Law. This First Supplemental Indenture
  and each Note shall be deemed to be a contract made under the laws of the State
  of New York, and for all purposes shall be construed in accordance with the
  laws of said State applicable to contracts made and to be performed entirely
  within said State.

Section
  11.3     Separability. In case any one or more of
  the provisions contained in this First Supplemental Indenture or in the Notes
  shall for any reason be held to be invalid, illegal or unenforceable in any
  respect, such invalidity, illegality or unenforceability shall not affect any
  other provisions of this First Supplemental Indenture or of the Notes; this
  First Supplemental Indenture and the Notes shall be construed as if such invalid
  or illegal or unenforceable provision had never been contained herein or therein.

Section
  11.4     Counterparts. This First Supplemental Indenture
  may be executed in any number of counterparts each of which shall be an original;
  but such counterparts shall together constitute but one and the same instrument.

Section
  11.5     Resignation; Appointment
  of Successor Trustee. With respect to the Notes and all other Securities
  theretofore or hereinafter authenticated and delivered under this Indenture,
  JPMorgan Chase Bank, N.A. (the “Former Trustee”) hereby tenders resignation
  and the Company hereby appoints The Bank of New York, herein referred to as
  the “Trustee,” as successor trustee pursuant to Section 6.8 of the
  Base Indenture. The Trustee hereby accepts appointment as successor trustee
  pursuant to Section 6.9 of the Base Indenture and shall become vested with all
  rights, powers, trusts and duties hereunder of the Former Trustee.

Section
  11.6     Recitals. The Trustee
  makes no representations as to the validity or sufficiency of this First Supplemental
  Indenture or of the Notes. The recitals and statements herein and in the Notes
  (except in the Trustee’s certificate of authentication) are deemed to be
  those of the Company and not those of the Trustee, and the Trustee assumes no
  responsibility for their correctness.

 

[Signature Page Follows]

 

27

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be duly executed by their respective officers thereunto duly authorized, on the date or dates indicated in the acknowledgments and as of the day and year first above written.

 

	 	CIT GROUP INC.
	 	 
	 	 
	 	 
	 	 
	 	 
	  
	 By:
	/s/ Glenn A. Votek
	 	 	Name: Glenn A. Votek
	 	 	Title: Executive Vice President and 

Treasurer
	 	 
	 	 
	 	 
	 	 
	 	 
	 	THE BANK OF NEW YORK 
	 	 	as Trustee
	 	 
	 	 
	 	 
	 	 
	 	By:	/s/ L. O’Brien
	 	 	Name: L. O’Brien
	 	 	Title: Vice President
	 	 
	 	 
	 	 
	 	 
	 	 
	 	JPMORGAN CHASE BANK, N.A., 
	 	 	as Former Trustee
	 	 
	 	 
	 	 
	 	 
	 	 
	 	By:	/s/ T. Foley 
	 	 	Name: T. Foley
	 	 	Title: Vice PresidentEXHIBIT 10.1

STOCK PURCHASE AGREEMENT 

dated as of

 January 31, 2007 

between

GREAT-WEST LIFECO INC.

and

MARSH & McLENNAN COMPANIES, INC.

relating to the purchase and sale 

of

PUTNAM INVESTMENTS TRUST

TABLE OF CONTENTS

	 	 	 	 	Page
	 
	
ARTICLE 1	
	
DEFINITIONS	
	
Section		
1.01.		 		
Definitions		
1	
	
Section		
1.02.		 		
Other Definitional and Interpretative Provisions		
16	
	
ARTICLE 2
	
PURCHASE AND SALE
	
Section		
2.01.		 		
Purchase and Sale		
17	
	
Section		
2.02.		 		
Closing		
19	
	
Section		
2.03.		 		
Adjustment Account		
20	
	
Section		
2.04.		 		
Estimates of Closing Stockholders’ Equity and Aggregate		 	
	 		 	 	Closing Revenue Run-Rate;
	      Pre-Closing Adjustment of Aggregate 	 	
	 		 	 	Purchase Price 	
20	
	
Section		
2.05.		 		
Post-Closing Calculation of Closing Stockholders’ Equity and		 	
	 		 	 	Closing Revenue Run-Rate	
21	
	
Section		
2.06.		 		
Post-Closing Adjustment of Aggregate Purchase Price		
23	
	
Section		
2.07.		 		
Certain Structuring Considerations		
24	
	
Section		
2.08.		 		
Withholding; Gross-up		
27	
	
ARTICLE 3	
	
REPRESENTATIONS AND WARRANTIES OF SELLER	
	
Section		
3.01.		 		
Corporate Existence and Power		
28	
	
Section		
3.02.		 		
Corporate Authorization		
28	
	
Section		
3.03.		 		
Governmental Authorization		
28	
	
Section		
3.04.		 		
Noncontravention		
29	
	
Section		
3.05.		 		
Capitalization		
29	
	
Section		
3.06.		 		
Ownership of Shares		
30	
	
Section		
3.07.		 		
Subsidiaries		
30	
	
Section		
3.08.		 		
Financial Statements		
30	
	
Section		
3.09.		 		
Absence of Certain Changes		
31	
	
Section		
3.10.		 		
No Undisclosed Material Liabilities		
31	
	
Section		
3.11.		 		
Material Contracts		
32	
	
Section		
3.12.		 		
Intercompany Arrangements		
34	
	
Section		
3.13.		 		
Litigation		
35	
	
Section		
3.14.		 		
Compliance with Laws and Court Orders; Regulatory Matters		
35	
	
Section		
3.15.		 		
Clients		
38	
	
Section		
3.16.		 		
Variable Product Parties		
43	

	
Section		
3.17.		 		
Properties		
43	
	
Section		
3.18.		 		
Tax Representations		
43	
	
Section		
3.19.		 		
Intellectual Property		
45	
	
Section		
3.20.		 		
Insurance Coverage		
47	
	
Section		
3.21.		 		
Employee Benefit Plans		
48	
	
Section		
3.22.		 		
Environmental Matters		
51	
	
Section		
3.23.		 		
Finders’ Fees		
52	
	
Section		
3.24.		 		
Assets Under Management		
52	
	
ARTICLE 4	
	
REPRESENTATIONS AND WARRANTIES OF BUYER	
	
Section		
4.01.		 		
Corporate Existence and Power		
52	
	
Section		
4.02.		 		
Authorization		
52	
	
Section		
4.03.		 		
Governmental Authorization		
52	
	
Section		
4.04.		 		
Noncontravention		
53	
	
Section		
4.05.		 		
Financing		
53	
	
Section		
4.06.		 		
Purchase for Investment		
53	
	
Section		
4.07.		 		
Litigation		
53	
	
Section		
4.08.		 		
Finders’ Fees		
53	
	
Section		
4.09.		 		
Inspections; No Other Representations		
54	
	
ARTICLE 5	
	
COVENANTS OF SELLER	
	
Section		
5.01.		 		
Conduct of the Company		
54	
	
Section		
5.02.		 		
Access to Information and Cooperation		
56	
	
Section		
5.03.		 		
Notices of Certain Events		
57	
	
Section		
5.04.		 		
Non-Compete; Non-Solicitation		
58	
	
Section		
5.05.		 		
Directors and Officers; Other Relationships		
59	
	
Section		
5.06.		 		
Arrangements with respect to Transitional Services and		 	
	 		 	 	Shared Facility	
60	
	
Section		
5.07.		 		
Certain Assets		
60	
	
Section		
5.08.		 		
Insurance		
62	
	
ARTICLE 6	
	
COVENANTS OF BUYER
	
Section		
6.01.		 		
Confidentiality		
62	
	
Section		
6.02.		 		
Access and Cooperation		
63	
	
Section		
6.03.		 		
Director and Officer Liability		
64	
	
Section		
6.04.		 		
Section 15(f) of the Investment Company Act		
66	
	
Section		
6.05.		 		
Notices of Certain Events		
67	
	 	 	 	 	 

ii

  

  

	
ARTICLE 7	
	
COVENANTS OF BUYER AND SELLER	
	
Section		
7.01.		 		
Reasonable Best Efforts; Further Assurances		
67	
	
Section		
7.02.		 		
Certain Filings and Actions		
68	
	
Section		
7.03.		 		
Public Announcements		
68	
	
Section		
7.04.		 		
Client and Other Consents		
69	
	
Section		
7.05.		 		
Intercompany Accounts and Arrangements		
73	
	
Section		
7.06.		 		
Amendment to Defined Contribution Plan Services Agreement		
73	
	
ARTICLE 8	
	
TAX MATTERS	
	
Section		
8.01.		 		
Tax Covenants		
74	
	
Section		
8.02.		 		
Tax Sharing		
77	
	
Section		
8.03.		 		
Cooperation on Tax Matters		
77	
	
Section		
8.04.		 		
Tax Indemnification by Seller		
77	
	
Section		
8.05.		 		
Tax Treatment of Certain Items		
79	
	
Section		
8.06.		 		
Certain Canadian Tax Covenants		
80	
	
Section		
8.07.		 		
Tax Indemnities		
80	
	
ARTICLE 9	
	
EMPLOYEE BENEFITS	
	
Section		
9.01.		 		
WARN Act		
81	
	
ARTICLE 10	
	
CONDITIONS TO CLOSING	
	
Section		
10.01.		 		
  Conditions to Obligations of Buyer and Seller		
81	
	
Section		
10.02.		 		
  Conditions to Obligation of Buyer		
81	
	
Section		
10.03.		 		
  Conditions to Obligation of Seller		
82	
	
ARTICLE 11	
	
SURVIVAL; INDEMNIFICATION	
	
Section		
11.01.		 		
  Survival		
82	
	
Section		
11.02.		 		
  Indemnification		
83	
	
Section		
11.03.		 		
  Procedures		
84	
	
Section		
11.04.		 		
  Calculation of Damages		
87	
	
Section		
11.05.		 		
  Assignment of Claims		
87	
	
Section		
11.06.		 		
  Exclusivity		
87	
	
Section		
11.07.		 		
  General		
88	

iii

	
ARTICLE 12	
	
TERMINATION	
	
Section		
12.01.		 		
Grounds for Termination		
88	
	
Section		
12.02.		 		
Effect of Termination		
89	
	
ARTICLE 13	
	
MISCELLANEOUS	
	
Section		
13.01.		 		
Notices		
89	
	
Section		
13.02.		 		
Amendments and Waivers		
91	
	
Section		
13.03.		 		
Expenses		
91	
	
Section		
13.04.		 		
Successors and Assigns		
91	
	
Section		
13.05.		 		
Governing Law		
91	
	
Section		
13.06.		 		
Jurisdiction		
92	
	
Section		
13.07.		 		
WAIVER OF JURY TRIAL		
92	
	
Section		
13.08.		 		
Counterparts; Effectiveness; Third Party Beneficiaries		
92	
	
Section		
13.09.		 		
Entire Agreement		
92	
	
Section		
13.10.		 		
Severability		
93	
	
Section		
13.11.		 		
Disclosure Schedules		
93	
	 	 	 	 
	
Schedule A		 		
Aggregate Base Revenue Run-Rate		 	
	
Schedule B		 		
Closing Balance Sheet Accounting Principles		 	
	
Schedule C		 		
Retained Matters		 	
	 	 	 	 
	
Exhibit A		 		
Form of Adjustment Account Agreement		 	
	
Exhibit B		 		
Term Sheet for Arrangements for Transitional Services		 	
	
Exhibit C		 		
Term Sheet for Lease Assignment and Sublease		 	
	
Exhibit D		 		
Form of Amended and Restated DC Plan Services Agreement		 	

iv

STOCK PURCHASE AGREEMENT

     AGREEMENT (this “Agreement”) dated as of January 31, 2007 between Great-West Lifeco Inc., a corporation organized under the laws of
Canada (“Buyer”), and Marsh & McLennan Companies, Inc., a Delaware corporation (“Seller”).

W I T N E S S E T H :

     WHEREAS, Seller is the record and beneficial owner of all of the issued and outstanding Class A Shares of Putnam Investments Trust, a Massachusetts business trust (the “Company”);

     WHEREAS, Seller desires to sell the Class A Shares to Buyer, and Buyer desires to purchase the Class A Shares from Seller, upon the terms and subject to the conditions hereinafter set forth;
and

     WHEREAS, upon the closing of the purchase and sale of the Class A Shares hereunder, and pursuant to the terms and conditions of the Equity Partnership Plan, all of the issued and outstanding Class B
Shares of the Company and Company Options shall be cancelled in consideration of the payments provided for in this Agreement.

     NOW, THEREFORE, in consideration of the promises and of the mutual covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties, intending to be legally bound, hereby agree as follows:

ARTICLE 1

DEFINITIONS

     Section 1.01. Definitions. (a) As used herein, the following terms have the following meanings:

     “Adjustment Account” means the account established pursuant to the Adjustment Account Agreement.

     “Adjustment Account Agent” means The Bank of New York, or if The Bank of New York is unable or unwilling to act, such other Person
as is mutually agreed to between Buyer and Seller.

     “Adjustment Account Agreement” means the Adjustment Account Agreement to be entered into among Buyer, Seller and the Adjustment
Account Agent, which shall be substantially in the form of Exhibit A hereto.

     “Adjustment Amount” means $20,000,000.

     “Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common
control with such Person; provided that no Company Entity shall be considered an Affiliate of Seller.

     “Aggregate Base Revenue Run-Rate” means the sum, calculated as set forth on Schedule A, of the Base Revenue Run-Rates for all
Clients set forth on Schedule A.

     “Aggregate Closing Revenue Run-Rate” means the sum of the Closing Revenue Run-Rates for all Consenting Clients. Aggregate Closing
Revenue Run-Rate shall be calculated on a basis consistent with the calculation of Aggregate Base Revenue Run-Rate.

     “Applicable Law” means, with respect to any Person, any domestic or foreign federal, state or local law (statutory, common or
otherwise), constitution, treaty, convention, ordinance, code, rule, regulation, order, injunction, judgment, decree, ruling or other similar requirement enacted, adopted, promulgated or applied by a Governmental Authority that is binding upon or
applicable to such Person, as amended unless expressly specified otherwise.

     “Balance Sheet” means the unaudited consolidated balance sheet of the Company Entities as of September 30, 2006.

     “Balance Sheet Date” means September 30, 2006.

     “Base Assets Under Management” means, with respect to a Client, the amount of assets under management by any Company Entity for
such Client as of the Base Date, as adjusted as follows: (i) any assets under management for any account for which a Company Entity acts as both investment adviser and sub-adviser shall be counted only once, (ii) any assets under management for any
set of accounts one of which invests in the other if a Company Entity acts as investment adviser to both shall be counted only once and (iii) assets under management that are subject to a withdrawal notice (which is recorded as such in the
Company’s internal reporting systems in the ordinary course consistent with past practices) that has not been revoked (as recorded in the Company’s internal reporting systems in the ordinary course consistent with past practices) prior to
the Base Date shall be excluded.

     “Base Date” means December 31, 2006.

2

     “Base Revenue Run-Rate” means, with respect to a Client, the product of (x) the amount of Base Assets Under Management multiplied
by (y) the aggregate annualized rate of investment advisory, sub-advisory or management fees (after giving effect to, and taking into account, any fee or expense waivers, caps or limitations), determined as set forth in Schedule A, as of the Base
Date that are computed primarily by reference to the assets of such Client under the management of any Company Entity.

     “Business Day” means a day, other than Saturday, Sunday or other day on which commercial banks in New York, New York are authorized
or required by Applicable Law to close.

     “Buyer Disclosure Schedules” means the disclosure schedules delivered by Buyer to Seller concurrently with the execution of this
Agreement.

     “Canadian Tax Act” means the Income Tax Act (Canada) and regulations
made thereunder, as now in effect and as they may be amended from time to time prior to the Closing Date.

     “Class A Ownership Percentage” means 100% less the Class B Ownership Percentage.

     “Class B Ownership Percentage” means the fraction (expressed as a percentage) that results from dividing (i) the number of Class B
Shares on a fully diluted basis by (ii) the sum of the number of Class A Shares and the number of Class B Shares on a fully diluted basis, in each case outstanding immediately prior to Closing. For these purposes, “fully diluted” shall be
calculated by adding to the actual number of outstanding Class B Shares a number of shares equal to the quotient obtained by dividing (x) the excess (if any) of (A) the product of the number of Class B Shares underlying all In-the-Money Company
Options and the Per Class B Share Price over (B) the aggregate exercise prices of such In-the-Money Company Options by (y) the Per Class B Share Price.

     “Class A Share” means a Class A common share, par value $0.01 per share, of the Company.

     “Class B Share” means a Class B common share, par value $0.01 per share, of the Company.

     “Client” of a Company Entity means any Person, including any Fund, to which such Company Entity provides investment management
services or Investment Advisory Services pursuant to an Investment Advisory Agreement.

     “Closing Adjusted Assets Under Management” means, with respect to a Client, the amount of assets under management by any Company
Entity for such 

3

Client as of the Base Date (or, in the case of a Person that becomes a Client after such date, or a Client as of such date that establishes a new account after the Base Date, as of the date of the applicable Investment Advisory
Agreements for such Client or such new account, as applicable), as adjusted to reflect additions and withdrawals from such account made by such Client from and after such date through and including the Closing Date. For purposes of the foregoing,
(i) for the avoidance of doubt, ordinary course dividends by Funds to their investors shall not constitute “withdrawals”, (ii) the reinvestment of capital gain distributions shall not constitute “additions”, (iii) any assets
under management for any account for which a Company Entity acts as both investment adviser and sub-adviser shall be counted only once, (iv) any assets under management for any set of accounts one of which invests in the other if a Company Entity
act as investment adviser to both shall be counted only once, (v) any net increase since the Base Date in the amount of assets invested in any Sponsored Fund by Seller or any of its controlled Affiliates acting as principal on its own behalf or in a
fiduciary capacity on behalf of clients where Seller or such controlled Affiliate has investment discretion with respect to such investment shall be excluded (it being understood and agreed that assets invested by defined contribution or defined
benefit plans sponsored or maintained by Seller or any of its controlled Affiliates shall not fall within the scope of this exclusion) and (vi) withdrawals and redemptions shall be taken into account when they are actually funded out of the
applicable account or, if earlier, the date on which the applicable Company Entity receives a withdrawal notice (which is recorded as such in the Company’s internal reporting systems in the ordinary course consistent with past practices) that
has not been revoked (as recorded in the Company’s internal reporting systems in the ordinary course consistent with past practices) prior to the Closing Date. For the avoidance of doubt, the calculation of Closing Adjusted Assets Under
Management is intended to exclude any increase or decrease in assets under management resulting from market appreciation or depreciation or currency fluctuations from and after the Base Date (or in the case of a Person that becomes a Client after
such date, or a Client as of such date that establishes a new account after the Base Date, as of the date such Person becomes a Client or establishes such new account, as applicable).

     “Closing Date” means the date of the Closing.

     “Closing Revenue Run-Rate” means, with respect to a Client, the product of (x) the Closing Adjusted Assets Under Management for
such Client multiplied by (y) the aggregate annualized rate of investment advisory, sub-advisory or management fees (after giving effect to, and taking into account, any fee or expense waivers, caps or limitations), determined on a basis consistent
with Schedule A, as of the Closing Date that are computed primarily by reference to the assets of such Client under the management of a Company Entity.

4

     “Closing Stockholders’ Equity” means the consolidated stockholders’ equity of the Company Entities as shown on the
Closing Balance Sheet, determined as set forth in Section 2.05(a) .

     “Code” means the United States Internal Revenue Code of 1986, as amended.

     “Company Entities” means the Company and its Subsidiaries, and a “Company Entity” means any of them.

     “Company Intellectual Property Rights” means all Intellectual Property Rights owned by the Company Entities.

     “Company Option” means an option to acquire Class B Shares issued under the Equity Partnership Plan.

     “Company Products” means all of the investment advisory products sponsored, advised or subadvised by any Company Entity, including
any of such investment products as are Funds, or other pooled investment vehicles, wrap fee programs (as defined in Rule 204-3 under the Investment Advisers Act) or separately managed accounts.

     “Consenting Client” means each Client who has given consent or is deemed to have consented in accordance with Section 7.04 (or who
is not required under Applicable Law or the applicable Investment Advisory Agreement to consent) to (i) the assignment or deemed assignment of its Investment Advisory Agreement as a result of the purchase of the Class A Shares by Buyer pursuant to
this Agreement or (ii) in the case of a Public Fund, the continued management of such Public Fund by a Company Entity following the Closing.

     “CRA” means the Canada Revenue Agency.

     “CRA Comfort Letter” means written advice from the CRA stating that no notification under either subsection 116(1) or (3) of the
Canadian Tax Act is required, and no purchaser’s liability exists under subsection 116(5) of the Canadian Tax Act, with respect to any disposition of the Class A Shares, the Class B Shares or the In-the-Money Company Options resulting from the
transactions contemplated by this Agreement (including, for the avoidance of doubt, any transaction occurring by reason of a General Restructuring Step).

     “CRA Tax Ruling” means an advance income tax ruling issued by the CRA, and any amendments thereto received from the CRA, confirming
that the NRT Rules do not apply in respect of the Company, whether to deem the Company to be a resident of Canada for any purpose under the Canadian Tax Act or otherwise, by reason of the transactions contemplated by this Agreement 

5

(including, for the avoidance of doubt, any transaction occurring by reason of a General Restructuring Step and, as applicable, any other transactions occurring after the Closing with respect to the Company) or
otherwise.

     “Designated Firm” means a Canadian law firm designated by Seller and reasonably acceptable to Buyer; provided that, there shall be no more than two Designated Firms.

     “Designated Plans” means the Putnam Executive Deferred Compensation Plan, Putnam Investments Operating Heads Incentive Compensation
Plan, Partners Incentive Compensation Plan, Putnam Investments Profit Growth Incentive Compensation Plan, Executive Deferred Co-Investment Program (consisting of Putnam, Investments Employees’ Securities Company II LLC and Putnam Investments,
Executive Deferred Bonus Plan), Putnam Voluntary Deferral Plan, The PanAgora Asset Management Deferred Compensation Plan, the Employee Plans disclosed on Schedule 3.21(e) and the other Employee Plans that are individual agreements disclosed on
Schedule 3.21(a) .

     “Employee Plan” means, excluding any Foreign Plan, any (x) “employee benefit plan”, as defined in Section 3(3) of ERISA;
(y) any employment, consultancy or severance agreement, plan or policy; or (z) any other agreement, plan or policy providing for compensation, bonuses, profit-sharing, equity or equity-based compensation or other forms of incentive or deferred
compensation, vacation benefits, insurance, health and welfare, vision or prescription benefits, disability or sick leave benefits, life insurance, employee assistance program, supplemental unemployment benefits and post-employment or retirement
benefits (including compensation, pension or insurance benefits); in each case which is sponsored, maintained, administered or contributed to by the Company or any ERISA Affiliate and primarily covers any current or former employee, director or
independent contractor of a Company Entity or covers substantially all of one or more classes of Company Entity service providers. For the avoidance of doubt, no plan maintained or administered by a Governmental Authority shall constitute an
Employee Plan.

     “Environmental Laws” means any Applicable Law that has as its principal purpose the protection of the environment or public
health.

     “Equity Partnership Plan” means the Putnam Investments Trust Equity Partnership Plan, as amended and restated as of September 6,
2005, and as further amended and restated pursuant to the terms of this Agreement.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

6

     “ERISA Affiliate” means any other entity which, together with the Company, would be treated as a single employer under Section 414
of the Code.

     “Estimated Revenue Run-Rate Adjustment Amount” means the product of (x) the Aggregate Purchase Price multiplied by (y) the
Estimated Revenue Run-Rate Adjustment Percentage.

     “Estimated Revenue Run-Rate Adjustment Percentage” shall be equal to:

        (i) if the Estimated Closing Run-Rate Percentage is equal to or more than 93%, zero;

        (ii) if the Estimated Closing Run-Rate Percentage is less than 93% but equal to or more than 85%, the excess of 93% over the Estimated Closing Run-Rate Percentage; and

        (iii) if the Estimated Closing Run-Rate Percentage is less than 85%, the sum of (A) two multiplied by the excess of 85% over the Estimated Closing Run-Rate Percentage and (B) 8%.

     For purposes of the foregoing, the “Estimated Closing Run-Rate Percentage” means the fraction (expressed as a percentage) the
numerator of which is the Estimated Closing Revenue Run-Rate and the denominator of which is the Aggregate Base Revenue Run-Rate; provided that in no event shall the Estimated Closing
Run-Rate Percentage be less than 82.5% . In no event shall the Estimated Revenue Run-Rate Adjustment Percentage exceed 13%.

     “Final Closing Revenue Run-Rate” means the Aggregate Closing Revenue Run-Rate (i) as shown in Buyer’s calculation delivered
pursuant to Section 2.05(a), if no notice of disagreement with respect thereto is duly delivered pursuant to Section 2.05(b); or (ii) if such a notice of disagreement is delivered, (A) as agreed by Buyer and Seller pursuant to Section 2.05(c) or (B)
in the absence of such agreement, as shown in the Accounting Referee’s calculation delivered pursuant to Section 2.05(c); provided that in no event shall Final Closing Revenue Run-Rate
be more than Seller’s calculation of Aggregate Closing Revenue Run-Rate delivered pursuant to Section 2.05(b) or less than Buyer’s calculation of Aggregate Closing Revenue Run-Rate delivered pursuant to Section 2.05(a) .

     “Final Determination” shall mean (i) any final determination of liability in respect of a Tax that, under applicable law, is not
subject to further appeal, review or modification through proceedings or otherwise (including the expiration of a statute of limitations or a period for the filing of claims for refunds, amended returns or appeals from adverse determinations),
including a “determination” as 

7

defined in Section 1313(a) of the Code or execution of an Internal Revenue Service Form 870AD or (ii) the payment of Tax by Buyer, Seller or any of their Affiliates, whichever is responsible for payment of such Tax under
applicable law, with respect to any item disallowed or adjusted by a Taxing Authority, provided that such responsible party determines that no action should be taken to recoup such payment
and the other party agrees.

     “Final Revenue Run-Rate Adjustment Amount” means the product of (x) the Aggregate Purchase Price multiplied by (y) the Final
Revenue Run-Rate Adjustment Percentage.

     “Final Revenue Run-Rate Adjustment Percentage” shall be equal to:

        (i) if the Closing Run-Rate Percentage is equal to or more than 93%, zero;

        (ii) if the Closing Run-Rate Percentage is less than 93% but equal to or more than 85%, the excess of 93% over the Closing Run-Rate Percentage; and

        (iii) if the Closing Run-Rate Percentage is less than 85%, the sum of (A) two multiplied by the excess of 85% over the Closing Run-Rate Percentage and (B) 8%.

     For purposes of the foregoing, the “Closing Run-Rate Percentage” means the fraction (expressed as a percentage) the numerator of
which is the Final Closing Revenue Run-Rate and the denominator of which is the Aggregate Base Revenue Run-Rate; provided that in no event shall the Closing Run-Rate Percentage be less than
82.5% . In no event shall the Final Revenue Run-Rate Adjustment Percentage exceed 13%.

     “Final Stockholders’ Equity” means the Closing Stockholders’ Equity (i) as shown in Buyer’s calculation delivered
pursuant to Section 2.05(a), if no notice of disagreement with respect thereto is duly delivered pursuant to Section 2.05(b); or (ii) if such a notice of disagreement is delivered, (A) as agreed by Buyer and Seller pursuant to Section 2.05(c) or (B)
in the absence of such agreement, as shown in the Accounting Referee’s calculation delivered pursuant to Section 2.05(c); provided that in no event shall Final Stockholders’ Equity
be more than Seller’s calculation of Closing Stockholders’ Equity delivered pursuant to Section 2.05(b) or less than Buyer’s calculation of Closing Stockholders’ Equity delivered pursuant to Section 2.05(a) .

     “Finance Comfort Letter” means a letter from the Department of Finance (Canada) providing that it will recommend to the Minister of
Finance (Canada) that the Company be prescribed as an “exempt foreign trust” under the 

8

NRT Rules (effective prior to the Company’s first “specified time” (as defined in the NRT Rules) in 2007) or publication in the Canada Gazette that the Company has been prescribed as an “exempt foreign
trust” under the NRT Rules (effective prior to the Company’s first “specified time” (as defined in the NRT Rules) in 2007).

     “Foreign Plan” shall mean any employee benefit plan, program or arrangement presently maintained, or contributed to, by a Company
Entity, for the benefit of any current or former employee, director or independent contractor of a Company Entity, including any such plan required to be maintained or contributed to by Applicable Law of the relevant jurisdiction, which would be an
Employee Plan, but for the fact that such plan is maintained outside the jurisdiction of the United States. For the avoidance of doubt, no plan maintained or administered by a Governmental Authority shall constitute a Foreign Plan.

     “Fund” means each Public Fund and each Private Fund.

     “GAAP” means generally accepted accounting principles in the United States in effect at the time any applicable financial
statements were prepared or any act requiring the application of GAAP was performed.

     “Governmental Authority” means any transnational, domestic or foreign federal, state or local governmental authority, department,
court, board or other regulatory authority, agency, self-regulatory organization or official, including any political subdivision thereof.

     “Gross-Up Conditions” means, with respect to a Class B Holder, (1) that such Class B Holder is entitled to the benefits of a
comprehensive Tax treaty between Canada and the Class B Holder’s country of residence; (2) that such Class B Holder (A) has authorized a Designated Firm to act as its representative to submit, and to deal with the CRA with respect to, the
Pre-Closing Notification in respect of such Class B Holder’s Class B Shares and In-the-Money Company Options and (B) has instructed the Designated Firm to keep Buyer reasonably informed regarding the status of such filing and CRA’s review
thereof and consult with Buyer if any difficulties arise in connection with obtaining a Pre-Closing Clearance Certificate in respect of such Class B Holder’s Class B Shares and In-the-Money Company Options; (3) that such Class B Holder has
submitted to the CRA as promptly as practical and in any event no more than 45 days after the date hereof, a Pre-Closing Notification in respect of such Class B Holder’s Class B Shares and In-the-Money Company Options and a valid claim for a
full treaty exemption from Canadian Tax on the disposition of such Class B Holder’s Class B Shares and In-the-Money Company Options, as the case may be; (4) that such Class B Holder has promptly submitted to the CRA upon request proof of its
residency and other documentation required by the CRA and has otherwise used its reasonable best efforts to obtain the Pre-Closing Clearance Certificate in 

9

respect of such Class B Holder’s Class B Shares and In-the-Money Company Options from the CRA and (5) that such Class B Holder has provided a written undertaking to Buyer to file the appropriate Tax returns to claim a Tax
refund with respect to any amounts withheld under subsection 116(5) of the Canadian Tax Act and to pay over the net amount received as described in Section 2.08(d) (as if the references therein to Seller were to such Class B Holder).

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

     “Intellectual Property Rights” means any and all intellectual property rights and other similar proprietary rights in any
jurisdiction, whether registered or unregistered, including all rights and interests pertaining to or deriving from: (i) patents and patent applications, reexaminations, extensions and counterparts claiming priority therefrom (collectively,
“Patents”); inventions, invention disclosures, discoveries and improvements, whether or not patentable; (ii) computer software and firmware, including data files, source code,
application programming interfaces, object code and software-related specifications and documentation; (iii) copyrights; (iv) trade secrets (including, those trade secrets defined in the Uniform Trade Secrets Act and under corresponding foreign
statutory law and common law); (v) trademarks, trade names, service marks, service names, certification marks, brands, trade dress, and logos, and the goodwill associated with any of the foregoing; (vi) databases and data compilations and all
documentation relating to the foregoing, including manuals, memoranda and records; and (vii) domain names and uniform resource locators; in each case, including any registrations of, applications to register, and renewals and extensions of, any of
the foregoing with or by any governmental authority in any jurisdiction.

     “In-the-Money Company Option” means a Company Option whose exercise price is less than the Per Class B Share Price.

     “Investment Advisers Act” means the Investment Advisers Act of 1940, as amended, and the rules and regulations
thereunder.

     “Investment Advisory Agreement” means an agreement under which a Company Entity acts as an investment adviser or sub-adviser to, or
manages any investment or trading account of, any Client.

     “Investment Advisory Services” means investment advice, management, or advisory or sub-advisory services regarding securities and
commodities including the provision of the Company Products.

     “Investment Company Act” means the Investment Company Act of 1940, as amended, and the rules and regulations thereunder.

10

     “knowledge of Seller” means the actual knowledge of Seller, after reasonable inquiry.

     “Licensed Intellectual Property Rights” means all Intellectual Property Rights owned by a third party and licensed or sublicensed
to the Company Entities.

     “Lien” means, with respect to any property or asset, any mortgage, lien, pledge, charge, security interest or encumbrance in
respect of such property or asset.

     “Material Adverse Effect” means a material adverse effect on (a) the business, assets, results of operations or financial condition
of the Company Entities, taken as whole, or (b) the ability of Seller to consummate the transactions contemplated hereby; provided that, with respect to clause (a), any such effect
attributable to or resulting from the following shall not constitute a Material Adverse Effect and shall be excluded from any determination as to whether a Material Adverse Effect has occurred or would reasonably be expected to occur or exist: (i)
this Agreement or the transactions contemplated by this Agreement, including any action required to be taken by Seller or any Company Entity under this Agreement, or taken with the prior written consent of Buyer, or the announcement or consummation
of this Agreement or such transactions contemplated by this Agreement, (ii) changes or conditions affecting the investment management industry generally, including changes in regulatory conditions (to the extent not affecting the Company Entities in
a disproportionate manner), (iii) changes in general economic or securities market conditions generally (to the extent not affecting the Company Entities in a disproportionate manner), (iv) war, terrorist act, other armed hostilities, calamities,
natural disasters or crisis (to the extent not affecting the Company Entities in a disproportionate manner), (v) changes in Applicable Law or accounting principles, (vi) reduction in assets under management or revenue run-rate in and of itself (for
the avoidance of doubt, any underlying cause for any such reduction shall not be excluded by this clause (vi)) or (vii) any failure to meet any projections or forecasts in and of itself (for the avoidance of doubt, any underlying cause for any
failure to meet projections or forecasts shall not be excluded by this clause (vii)).

     “New Client” means any Client for whom the Company Entities first enter into an Investment Advisory Agreement for the provision of
investment management or Investment Advisory Services following the Base Date and prior to the Closing.

     “Non-U.S. Corporations” means Putnam Investments Australia Pty Limited, Putnam International Distributors, Ltd., Putnam Investments
Argentina, S.A., Putnam International Advisory Company, S.A., Putnam Investments Canada

11

Inc., Putnam Investments Securities Co., Ltd., Putnam Investments Limited (Ireland), Putnam Investments Limited (United Kingdom), New Flag UK Holdings Limited and New Flag Asset Management Limited.

     “NRT Rules” means section 94 of the Canadian Tax Act, including, for the avoidance of doubt, as it is proposed to be amended by
Bill C-33.

     “1934 Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

     “Permitted Liens” means (i) Liens for taxes, assessments and similar charges that are not yet due or are being contested in good
faith and for which adequate reserves have been established in accordance with GAAP, (ii) mechanic’s, materialman’s, carrier’s, worker’s, repairer’s, warehouseman’s and other similar Liens arising or incurred in the
ordinary course of business or that are not yet due and payable or are being contested in good faith and (iii) other Liens which would not reasonably be expected to materially detract from the value or utility of the affected property.

     “Person” means an individual, corporation, partnership, limited liability company, association, trust or other entity or
organization, including a Governmental Authority.

     “Pre-Closing Clearance Certificate” means a certificate issued by the Minister of National Revenue (Canada) pursuant to subsection
116(2) of the Canadian Tax Act in respect of the disposition of Class A Shares, Class B Shares or In-the-Money Company Options, as the case may be, in connection with the transactions contemplated by this Agreement (excluding any transaction
occurring by reason of a General Restructuring Step).

     “Pre-Closing Notification” means a notification to the CRA pursuant to subsection 116(1) of the Canadian Tax Act in respect of the
disposition of Class A Shares, Class B Shares or In-the Money Company Options, as the case may be, in connection with the transactions contemplated by this Agreement (excluding any transaction occurring by reason of a General Restructuring
Step).

     “Pre-Closing Tax Period” means any Tax period ending on or before the close of business on the Closing Date; and, with respect to a
Tax period that begins on or before the close of business on the Closing Date and ends thereafter, the portion of such Tax period ending on the close of business on the Closing Date.

     “Preferred Share” means a preferred share, par value $0.01 per share, of the Company.

12

     “Private Fund” means any pooled investment vehicle for which a Company Entity acts as investment adviser, investment sub-adviser,
general partner, managing member, trustee, manager or sponsor that is not registered as such with any Governmental Authority.

     “Public Fund” means any pooled investment vehicle (including each portfolio or series thereof, if any) for which a Company Entity
acts as investment adviser, investment sub-adviser, general partner, managing member, trustee, manager or sponsor, and which is registered as such with any Governmental Authority.

     “Public Fund Board” means the board of directors or trustees (or Persons performing similar functions) of a Public Fund.

     “SEC” means the Securities and Exchange Commission.

     “Seller Disclosure Schedules” means the disclosure schedules delivered by Seller to Buyer concurrently with the execution of this
Agreement.

     “Seller Group” means, with respect to federal income Taxes, the affiliated group of corporations (as defined in Section 1504(a) of
the Code) of which Seller is a member and, with respect to state, local or foreign income or franchise Taxes, the consolidated, combined or unitary group of which Seller or any of its Affiliates is a member.

     “Sponsored Fund” means any Fund a majority of the officers of which are employees of the Company Entities or of which a Company
Entity serves as trustee; with respect to a Private Fund, where a Company Entity serves as investment adviser, general partner, managing member, trustee, manager or person performing a similar role; or with respect to a Public Fund that is not a
U.S. Public Fund, where a Company Entity serves as investment manager. For the avoidance of doubt, a Fund with respect to which a Company Entity is acting as sub-adviser or sub-manager or with authority delegated to it by another investment adviser
shall not be deemed for that reason alone to be a Sponsored Fund.

     “Sponsored Private Fund” means any Private Fund that is a Sponsored Fund.

     “Sponsored Public Fund” means any Public Fund that is a Sponsored Fund.

     “Sponsored U.S. Public Fund” means any U.S. Public Fund that is a Sponsored Fund.

13

     “Subsidiary” means, with respect to any Person, any entity of which securities or other ownership interests having ordinary voting
power to elect a majority of the board of directors or other persons performing similar functions are at the time directly or indirectly owned by such Person; provided that no Fund shall be
considered a Subsidiary of the Company.

     “Tax” means (i) all federal, state and local and all foreign taxes of any kind whatsoever, including income, gross receipts,
windfall profits, value added, severance, property, production, sales, use, duty, license, excise, franchise, employment, unemployment, escheat, withholding or other taxes, together with any interest, penalty, addition to tax or additional amount
imposed by any governmental authority (domestic or foreign) responsible for the imposition of any such tax (a “Taxing Authority”) and (ii) any liability for the payment of any
amount of the type described in the immediately preceding clause (i) as a result of (A) a Company Entity being a member of an affiliated, consolidated or combined group with any other corporation at any time on or prior to the Closing Date or (B) as
a result of a Company Entity being a successor to another Person by merger or other transaction on or before the Closing Date.

     “Tax Sharing Agreement” means the Tax Matters Agreement, dated as of September 30, 1997, by and between Seller and the Company, as
amended as of January 1, 2001.

     “U.S. Public Fund” means a Public Fund registered as an investment company under the Investment Company Act.

     “Variable Product” means any variable insurance product, including any variable annuity or variable life insurance
product.

     “Variable Product Party” means any insurance company, or Affiliate of such insurance company, that issues, distributes, or provides
services with respect to a Variable Product for which a Company Product is used or available as an underlying investment option.

     “WARN Act” means the Worker Adjustment and Retraining Notification Act.

     (b) Each of the following terms is defined in the Section set forth opposite such term:

	
Term		 
		
Section	
	

		 		

	
	
Accounting Referee		 
		
2.05	
	
Affiliate Arrangement		 
		
3.12	
	
Aggregate Purchase Price		 
		
2.01	
	
Agreement		 
		
Preamble	

14

	
Term		 
		
Section	
	

		 		

	
	
Allocation Statement		 
		
8.01	
	
Buyer		 
		
Preamble	
	
Buyer Straddle Return		 
		
8.01	
	
Claim		 
		
11.03	
	
Class A Purchase Price		 
		
2.01	
	
Class B Holders		 
		
2.07	
	
Closing		 
		
2.02	
	
Closing Balance Sheet		 
		
2.05	
	
Closing Run-Rate Schedule		 
		
2.05	
	
Company		 
		
Recitals	
	
Company Filings		 
		
3.14	
	
Company Returns		 
		
3.18	
	
Company Securities		 
		
3.05	
	
Company Tax Loss		 
		
8.04	
	
Competing Business		 
		
5.04	
	
Confidentiality Agreement		 
		
6.01	
	
D&O Indemnified Person		 
		
6.03	
	
Damages		 
		
11.02	
	
DC Plan Services Agreement		 
		
5.07	
	
Electing Company Entity		 
		
8.01	
	
Equity Plans		 
		
3.21	
	
Estimated Closing Revenue Run-Rate		 
		
2.04	
	
Estimated Closing Stockholders’ Equity		 
		
2.04	
	
Financial Statements		 
		
3.08	
	
Form 8023		 
		
8.01	
	
Fund Filings		 
		
3.15	
	
General Restructuring Step		 
		
2.07	
	
Grantor Trust		 
		
2.02	
	
HIPAA		 
		
3.21	
	
Indemnified Party		 
		
11.03	
	
Indemnifying Party		 
		
11.03	
	
Intercompany Account Settlement Amount		 
		
7.05	
	
Minority Interests		 
		
3.07	
	
Negative Consent Notice		 
		
7.04	
	
Notice		 
		
7.04	
	
NRT Exemption Confirmation		 
		
2.07	
	
Outside Date		 
		
12.01	
	
Per Class A Share Price		 
		
2.01	
	
Per Class B Share Price		 
		
2.01	
	
Patents		 
		
1.01	
	
Permits		 
		
3.14	
	
Post-Closing Continuing Client		 
		
2.06	
	
Potential Contributor		 
		
11.05	

15

	
Term		 
		
Section
	
	

		 		

	
	
Price Allocation		 
		
8.01
	
	
Retained Matters		 
		
11.02
	
	
Satisfaction Date		 
		
2.02
	
	
Section 338(h)(10) Election		 
		
8.01
	
	
Seller		 
		
Preamble
	
	
Specified MHRS DC Client		 
		
5.04
	
	
Subchapter M		 
		
3.15
	
	
Subsidiary Securities		 
		
3.07
	
	
Target Stockholders’ Equity		 
		
2.04
	
	
Tax Benefit		 
		
8.04
	
	
Tax Proceeding		 
		
8.04
	
	
Third Party Claim		 
		
11.03
	
	
Trust Amount		 
		
2.02
	
	
Unvested Class B Share Trust Payment		 
		
2.01
	
	
Unvested Option Trust Payment		 
		
2.01
	
	
Vested Class B Share Closing Payment		 
		
2.01
	
	
Vested Class B Share Trust Payment		 
		
2.01
	
	
Vested Option Closing Payment		 
		
2.01
	
	
Vested Option Trust Payment		 
		
2.01
	
	
Vested Option Shares		 
		
2.01
	
	
Warranty Breach		 
		
11.02
	
	
Withholding Restructuring Step		 
		
2.07
	

     Section 1.02. Other Definitional and Interpretative Provisions. The words “hereof”, “herein” and “hereunder”
and words of like import used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. The captions herein are included for convenience of reference only and shall be ignored in the
construction or interpretation hereof. References to Articles, Sections, Exhibits and Schedules are to Articles, Sections, Exhibits and Schedules of this Agreement unless otherwise specified. All Exhibits and Schedules annexed hereto or referred to
herein are hereby incorporated in and made a part of this Agreement as if set forth in full herein. Any capitalized terms used in any Exhibit or Schedule but not otherwise defined therein shall have the meaning set forth in this Agreement. Any
singular term in this Agreement shall be deemed to include the plural, and any plural term the singular. Whenever the words “include”, “includes” or “including” are used in this Agreement, they shall be deemed to be
followed by the words “without limitation”, whether or not they are in fact followed by those words or words of like import. The word “or” shall not be exclusive. “Writing”, “written” and comparable terms
refer to printing, typing and other means of reproducing words (including electronic media) in a visible form. References to any agreement or contract are to that agreement or contract as amended, modified or supplemented from time to time in
accordance with the terms hereof and thereof. References to 

16

any Person include the successors and permitted assigns of that Person. References to “$” or “dollars” means, unless otherwise specified, United States dollars. References from or through any date mean,
unless otherwise specified, from and including or through and including, respectively. The “consent” of a party under this Agreement shall be deemed to have been given if any executive officer of such party gives such consent.

ARTICLE 2

PURCHASE AND SALE

     Section 2.01. Purchase and Sale. (a) Upon the terms and subject to the conditions of this Agreement, Seller agrees to sell to Buyer, and
Buyer agrees to purchase from Seller, all of the issued and outstanding Class A Shares, free and clear of any Liens, at the Closing for the purchase price set forth in Section 2.01(b)(i) . In addition, effective at Closing, all of the issued and
outstanding Class B Shares and Company Options shall be cancelled in accordance with the terms of the Equity Partnership Plan in consideration of the payments set forth in Section 2.01(b)(ii) .

     (b) The aggregate amount payable by Buyer pursuant to Section 2.01(a) for the purchase of the Class A Shares, and in consideration of the cancellation of the Class B Shares and the Company Options, is
$3,900,000,000 in cash (the “Aggregate Purchase Price”). The Aggregate Purchase Price shall be paid as provided in Section 2.02, shall be subject to adjustment as provided in
Sections 2.04 and 2.06, and shall be allocated (after giving effect to the redemption of certain Class A Shares pursuant to Section 7.05) among the Class A Shares, the Class B Shares and the Company Options outstanding immediately prior to Closing
as follows:

        (i) for the Class A Shares, the Class A Ownership Percentage of the Aggregate Purchase Price (the “Class A Purchase Price”, and the
    Class A Purchase Price divided by the number of Class A Shares outstanding immediately prior to Closing, the “Per Class A Share Price”);

        (ii) for the Class B Shares and the Company Options, the Class B Ownership Percentage of the Aggregate Purchase Price, allocated among the Class B Shares and the Company Options as follows:

  
          (A) for each Class B Share that is vested immediately prior to Closing (including as a result of the transactions contemplated by this Agreement), (1) an amount equal to the Fair Market Value of a
      Class B Share (as defined, for purposes of this Agreement, in the Equity Partnership Plan) as of September 30, 

  

17

  
    
      2006 (the “Vested Class B Share Closing Payment”) plus (2) an amount equal to the excess of the Per Class A Share Price over the Fair Market Value of a Class B
        Share (the “Vested Class B Share Trust Payment” and, together with the Vested Class B Share Closing Payment, the “Per Class B Share
          Price”);

          (B) for each Class B Share that is not vested immediately prior to Closing, an amount equal to the Per Class A Share Price (the “Unvested Class B Share Trust
      Payment”);

          (C) for each Company Option that is vested immediately prior to Closing (including as a result of the transactions contemplated by this Agreement), (1) an amount equal to the product of (x) the number
      of Class B Shares subject to such Company Option (“Vested Option Shares”) and (y) the excess, if any, of the Fair Market Value of a Class B Share over the exercise price per Class
        B Share for such Company Option (the “Vested Option Closing Payment”) plus (2) an amount equal to the product of (x) the number of Vested Option Shares and (y) an amount equal to
          the excess of the Per Class A Share Price over the greater of (X) the Fair Market Value of a Class B Share and (Y) the exercise price per Class B Share for such Company Option (the “Vested Option Trust
            Payment”); and

          (D) for each Company Option that is not vested immediately prior to Closing, an amount equal to the product of (1) the number of Class B Shares subject to such Company Option and (2) the excess of the
      Per Class A Share Price over the exercise price per Class B Share for such Company Option (the “Unvested Option Trust Payment”).

  

     For the avoidance of doubt, all Company Options that are not In-the-Money Company Options shall, effective at Closing, be cancelled in accordance with the terms of the Equity Partnership Plan for no
consideration.

     The parties hereby agree that the aggregate amount payable by Buyer pursuant to clauses (i) and (ii) above in respect of the purchase of the Class A Shares and the cancellation of the Class B Shares
and Company Options shall equal the Aggregate Purchase Price, as adjusted as provided in Sections 2.04 and 2.06.

     (c) No later than three Business Days prior to the date on which the Closing is scheduled to occur, Seller shall deliver to Buyer a certificate setting forth the allocation, in accordance with Section
2.01(b), of the Aggregate 

18

Purchase Price at Closing pursuant to Section 2.02, which allocation shall be reasonably acceptable to Buyer.

     Section 2.02. Closing. The closing (the “Closing”) of the purchase and
sale of the Class A Shares hereunder shall take place at 9:00 a.m. (EST) at the offices of Davis Polk & Wardwell, 450 Lexington Avenue, New York, New York, as soon as possible, but in no event (subject to the proviso at the end of this sentence)
later than five Business Days, after satisfaction of the conditions set forth in Article 10 (or waiver by the party or parties entitled to the benefit of such conditions) (the day of such satisfaction or waiver, the “Satisfaction Date”), or at such other time or place as Buyer and Seller may agree; provided that if, assuming the Closing occurred on the
Satisfaction Date, the Estimated Closing Revenue Run-Rate would be less than 93% of the Aggregate Base Revenue Run-Rate, Seller may require, by delivering written notice to Buyer no later than five Business Days prior to the anticipated Closing
Date, that the Closing be delayed until a date specified by Seller no later than 30 days following the Satisfaction Date (but in no event later than the Outside Date). At the Closing:

     (a) Seller shall settle the net intercompany account balance between Seller and the Company Entities as of the Closing in accordance with Section 7.05(a) . 

     (b) Buyer shall deliver to Seller the Class A Purchase Price in immediately available funds by wire transfer to an account of Seller with a bank in New York City designated by Seller, by notice to
Buyer, which notice shall be delivered not later than two Business Days prior to the Closing Date.

     (c) Buyer shall deliver (on behalf of the Company in accordance with the Equity Partnership Plan) the aggregate Vested Class B Share Closing Payment and the aggregate Vested Option Closing Payment in
immediately available funds by wire transfer to the holders of the Class B Shares and Company Options immediately prior to Closing in accordance with a schedule to be delivered by Seller to Buyer not later than two Business Days prior to the Closing
Date.

     (d) Buyer shall deposit (on behalf of the Company in accordance with the Equity Partnership Plan), or shall cause to be deposited, an amount equal to the aggregate Vested Class B Share Trust Payment,
the aggregate Unvested Class B Share Trust Payment, the aggregate Vested Option Trust Payment and the aggregate Unvested Option Trust Payment (collectively, the “Trust Amount”)
less (pursuant to Section 2.03(a)) the Adjustment Amount, by wire transfer of immediately available funds into one or more grantor trusts established by the Company pursuant to the terms and
conditions of the Equity Partnership Plan prior to Closing (each, a “Grantor Trust”) in accordance with a schedule to be delivered by Seller to Buyer not later than two Business
Days prior to the Closing Date.

19

     (e) Buyer shall deposit, or shall cause to be deposited, the Adjustment Amount by wire transfer of immediately available funds with the Adjustment Account Agent.

     (f) Seller shall deliver to Buyer certificates (to the extent certificated) for the Class A Shares duly endorsed or accompanied by stock powers duly endorsed in blank, with any required transfer
stamps affixed thereto.

     For the avoidance of doubt, the amounts payable by Buyer at Closing pursuant to this Section 2.02 shall reflect any adjustments to the Aggregate Purchase Price based on the Estimated Closing
Stockholders’ Equity and the Estimated Closing Revenue Run-Rate pursuant to Section 2.04.

     Section 2.03. Adjustment Account. (a) Buyer and Seller agree that at the Closing, the Adjustment Amount shall be withheld from the Trust
Amount, and such withheld amount shall be deposited with the Adjustment Account Agent by wire transfer of immediately available funds pursuant to Section 2.02(e) . The Adjustment Amount shall be applied by the Adjustment Account Agent in accordance
with the terms of the Adjustment Account Agreement to pay any amounts owing under Section 2.06, with any remaining funds to be paid in accordance with Section 2.03(b) .

     (b) Immediately following the determination of Final Stockholders’ Equity and Final Closing Revenue Run-Rate, any remaining funds in the Adjustment Account (after any payments from, or deposits
into, the Adjustment Account pursuant to Section 2.05) shall be released from the Adjustment Account for payment to the appropriate Grantor Trust.

     Section 2.04. Estimates of Closing Stockholders’ Equity and Aggregate Closing Revenue Run-Rate; Pre-Closing Adjustment of Aggregate Purchase Price. (a) No later than four Business Days prior to the date on which the Closing is scheduled to occur, Seller shall cause to be prepared by the Company’s Chief Financial Officer and shall deliver to Buyer (i) a certificate of the
Company’s Chief Financial Officer setting forth a good faith estimate of the Closing Balance Sheet and, based on such estimated Closing Balance Sheet, a good faith estimate of Closing Stockholders’ Equity (the “Estimated Closing Stockholders’ Equity”) and (ii) a good faith estimate of the Aggregate Closing Revenue Run-Rate (“Estimated Closing Revenue
Run-Rate”). Seller shall also deliver to Buyer copies of all work papers and other documents used in the calculation of Estimated Closing Stockholders’ Equity and Estimated Closing Revenue Run-Rate as
necessary to allow Buyer and Seller to review the adjustments to the Aggregate Purchase Price under Section 2.04(b) and (c) determined on the basis of the certificate of the Company’s Chief Financial Officer referred to above. The certificates
and estimates of the Company’s Chief Financial Officer delivered pursuant to this Section 2.04(a) and pursuant to Section 2.05(a) shall be based on 

20

his actual knowledge, and shall not give rise to any personal or other liability whatsoever to him.

     (b) If Target Stockholders’ Equity exceeds Estimated Closing Stockholders’ Equity, the Aggregate Purchase Price shall be decreased by the amount of such excess. If Estimated Closing
Stockholders’ Equity exceeds Target Stockholders’ Equity, the Aggregate Purchase Price shall be increased by the amount of such excess. “Target Stockholders’ Equity”
means $544,367,000.

     (c) If the Estimated Closing Revenue Run-Rate is less than 93% of the Aggregate Base Revenue Run Rate, then the Aggregate Purchase Price shall be reduced by the Estimated Revenue Run-Rate Adjustment
Amount.

     Section 2.05. Post-Closing Calculation of Closing Stockholders’ Equity and Closing Revenue Run-Rate. (a) As promptly as practicable,
but no later than 45 days, after the Closing Date, Buyer will cause to be prepared by the Company’s Chief Financial Officer and delivered to Seller (i) the consolidated balance sheet of the Company Entities as of the close of business on the
Business Day immediately prior to the Closing Date prepared in accordance with the accounting principles, policies, practices and methodologies used in connection with the preparation of the Balance Sheet, except as set forth in Schedule B (the
“Closing Balance Sheet”) and (ii) a schedule, prepared on a basis consistent with the preparation of, and in a form consistent with, Schedule A, setting forth a calculation of the
Aggregate Closing Revenue Run-Rate (prepared in accordance with the methodology used in the calculation of the Aggregate Base Revenue Run-Rate as set forth in Schedule A and the definition of Closing Adjusted Assets Under Management) (the
“Closing Run-Rate Schedule”). Each of the Closing Balance Sheet and Closing Run-Rate Schedule will be accompanied by a certificate of the Company’s Chief Financial Officer
specifying that it was prepared in accordance with the provisions of this Section and setting forth Buyer’s calculation of Closing Stockholders’ Equity and the Aggregate Closing Revenue Run-Rate, as applicable, in reasonable
detail.

     (b) If Seller disagrees with Buyer’s calculations of Closing Stockholders’ Equity or Aggregate Closing Revenue Run-Rate delivered pursuant to Section 2.05(a), Seller may, within 45 days
after delivery of the documents referred to in Section 2.05(a), deliver a notice to Buyer disagreeing with such calculations and which specifies Seller’s calculations of such amounts and, in reasonable detail, Seller’s grounds for such
disagreement. Any such notice of disagreement shall specify those items or amounts as to which Seller disagrees, and Seller shall be deemed to have agreed with all other items and amounts contained in the Closing Balance Sheet and the calculation of
Closing Stockholders’ Equity or in the Closing Run-Rate Schedule and the calculation of 

21

the Aggregate Closing Revenue Run-Rate, as applicable, delivered pursuant to Section 2.05(a) .

     (c) If a notice of disagreement shall be duly delivered pursuant to Section 2.05(b), Buyer and Seller shall, during the 15 days following such delivery, use their reasonable best efforts to reach
agreement on the disputed items or amounts in order to determine, as may be required, the amount of Closing Stockholders’ Equity or Aggregate Closing Revenue Run-Rate, as applicable, which amounts shall not be less than the amounts thereof
shown in Buyer’s calculations delivered pursuant to Section 2.05(a) nor more than the amounts thereof shown in Seller’s calculation delivered pursuant to Section 2.05(b) . If Buyer and Seller are unable to reach such agreement during such
period, they shall promptly thereafter cause independent accountants of internationally recognized standing reasonably satisfactory to Buyer and Seller (who shall not have any material relationship with Buyer or Seller) (the “Accounting Referee”) promptly to review this Agreement and the disputed items or amounts for the purpose of calculating Closing Stockholders’ Equity or Aggregate Closing Revenue Run-Rate, as
applicable. In making such calculations, the Accounting Referee shall consider only those items or amounts in the Closing Balance Sheet or Buyer’s calculation of Closing Stockholders’ Equity, or in the Closing Run-Rate Schedule or
Buyer’s calculation of Aggregate Closing Revenue Run-Rate, as applicable, as to which Seller has disagreed. The Accounting Referee shall deliver to Buyer and Seller, as promptly as practicable (but in all events no later than 45 days after the
matter is referred to the Accounting Referee), a report setting forth the Accounting Referee’s calculation of Closing Stockholders’ Equity or Aggregate Closing Revenue Run-Rate, as applicable. Such report shall be final and binding upon
Buyer and Seller. The cost of such review and report shall be allocated between Seller and Buyer in the same proportion that the aggregate amount of the items unsuccessfully disputed by each (as finally determined by the Accounting Referee) bears to
the total amount of the disputed items.

     (d) Buyer and Seller agree that they will, and agree to cause their respective independent accountants and each Company Entity to, cooperate and assist in the preparation of the Closing Balance Sheet
and Closing Run-Rate Schedule and the calculation of Closing Stockholders’ Equity and Aggregate Closing Revenue Run-Rate and in the conduct of the reviews referred to in this Section 2.05, including the making available to the extent necessary
of books, records, work papers and personnel.

     (e) For the avoidance of doubt, the calculation of Closing Stockholders’ Equity to be made pursuant to this Section 2.05, and the purchase price adjustment to be made pursuant to Section 2.06(a),
is only meant to reflect changes in stockholders’ equity (as adjusted) of the Company Entities from the date of the Balance Sheet to the date of the Closing Balance Sheet. Neither 

22

Section 2.05 nor Section 2.06(a) is intended to be used to adjust for errors or omissions that may be found with respect to the Balance Sheet or any inconsistencies between the Balance Sheet, on the one hand, and GAAP, on the
other, for which Article 11 shall be the sole and exclusive remedy.

     Section 2.06. Post-Closing Adjustment of Aggregate Purchase Price. (a) If Estimated Closing Stockholders’ Equity exceeds Final
Stockholders’ Equity, Buyer shall be entitled to receive a payment (i) from Seller equal to the Class A Ownership Percentage of the amount of such excess and (ii) from the Adjustment Account in accordance with the terms of the Adjustment
Account Agreement equal to the Class B Ownership Percentage of the amount of such excess, in each case in the manner and with interest as provided in Section 2.06(d) . If Final Stockholders’ Equity exceeds Estimated Closing Stockholders’
Equity, Buyer shall (i) pay the Class A Ownership Percentage of the amount of such excess to Seller and (ii) deposit the Class B Ownership Percentage of the amount of such excess to the Adjustment Account, in each case in the manner and with
interest as provided in Section 2.06(d) .

     (b) If the Final Revenue Run-Rate Adjustment Amount exceeds the Estimated Revenue Run-Rate Adjustment Amount, Buyer shall be entitled to receive a payment (i) from Seller equal to the Class A
Ownership Percentage of the amount of such excess and (ii) from the Adjustment Account in accordance with the terms of the Adjustment Account Agreement equal to the Class B Ownership Percentage of the amount of such excess, in each case in the
manner and with interest as provided in Section 2.06(d) . If the Estimated Revenue Run-Rate Adjustment Amount exceeds the Final Revenue Run-Rate Adjustment Amount, Buyer shall (i) pay the Class A Ownership Percentage of the amount of such excess to
Seller and (ii) deposit the Class B Ownership Percentage of the amount of such excess to the Adjustment Account, in each case in the manner and with interest as provided in Section 2.06(d) .

     (c) Notwithstanding anything in this Agreement to the contrary, for purposes of determining Final Closing Revenue Run-Rate and the Final Revenue Run-Rate Adjustment Amount, any Post-Closing Continuing
Clients shall be treated as Consenting Clients as of the Closing Date. “Post-Closing Continuing Client” means a Client that (i) was not a Consenting Client as of the Closing Date,
but that has not, on or prior to the date that is 30 days after the Closing Date, terminated its Investment Advisory Agreement (or has, on or before such date, entered into a new Investment Advisory Agreement with the Company or any of its
Subsidiaries), (ii) continues to be a Client of the Company or any of its Subsidiaries as of such date and (iii) has not submitted to a Company Entity a withdrawal notice (which is recorded as such in the Company’s internal reporting systems in
the ordinary course consistent with past practices) that has not been revoked (as recorded in the Company’s internal reporting systems in the ordinary course consistent with past practices) prior to such date.

23

     (d) Any payment pursuant to Section 2.06(a) or (b) shall be made at a mutually convenient time and place within 10 days after the Final Stockholders’ Equity or Final Closing Revenue Run-Rate, as
applicable, has been determined, by wire transfer of immediately available funds. Any payment that is made to Buyer from the Adjustment Account shall be made to the account of Buyer designated by Buyer in writing, and shall be accompanied by the
portion of interest earned on funds in the Adjustment Account that is attributable to such payment. Any payment that is to be made to Buyer by Seller shall be made to the account of Buyer designated by Buyer in writing, and shall be accompanied by
an interest payment on such amount from and including the Closing Date to but excluding the date of payment at a rate per annum equal to the Prime Rate as published in the Wall Street Journal, Eastern Edition in effect from time to time during the
period from the Closing Date to the date of payment. Any payment that is to be made by Buyer shall be made to the account of Seller, designated by Seller in writing, and the account(s) of one or more Grantor Trusts designated by the Company’s
Chief Financial Officer, and shall be accompanied by an interest payment on such amount from and including the Closing Date to but excluding the date of payment at a rate per annum equal to the average daily Prime Rate as published in the Wall
Street Journal, Eastern Edition in effect from time to time during the period from the Closing Date to the date of payment.

     Section 2.07. Certain Structuring Considerations. (a) Buyer and Seller shall cooperate and use their reasonable best efforts to obtain a
Finance Comfort Letter, a CRA Tax Ruling or a CRA Comfort Letter (any of a Finance Comfort Letter, a CRA Tax Ruling or CRA Comfort Letter being referred to herein as an “NRT Exemption Confirmation”) as promptly as practical after the date hereof. All determinations with respect to the process for obtaining any such NRT Exemption Confirmation shall be made jointly by Buyer and Seller, each acting reasonably, in good faith
and reasonably taking into account the interests of the Class B Holders. Any such NRT Exemption Confirmation shall be in form and substance reasonably acceptable to Buyer and Seller.

     (b) Seller will make a Pre-Closing Notification in respect of the disposition of the Class A Shares as promptly as practical after the date hereof and in any event no later than 20 days after the date
hereof and will deliver to Buyer prior to the Closing Date any Pre-Closing Clearance Certificate that is received by Seller in respect of the disposition of the Class A Shares. Seller will use reasonable best efforts to obtain the Pre-Closing
Clearance Certificate in respect of the disposition of the Class A Shares from the CRA. Seller will keep Buyer reasonably informed regarding the status of its Pre-Closing Notification in respect of the disposition of the Class A Shares and
CRA’s review thereof, and consult with Buyer in the event any difficulties arise. Seller will provide Buyer with an opportunity to review and comment on Seller’s Pre-Closing Notification in respect of the disposition of the Class A Shares
and any other written correspondence with CRA before it is submitted to CRA. Seller will use its 

24

reasonable best efforts to cause each holder of a Class B Share and each holder of an In-the-Money Company Option (collectively, the “Class B Holders”), to make
a Pre-Closing Notification in respect of the disposition of such Class B Holder’s Class B Shares and In-the-Money Company Options and to deliver to Buyer prior to the Closing Date any Pre-Closing Clearance Certificate that is received by such
Class B Holder in respect of the disposition of such Class B Holder’s Class B Shares and In-the-Money Company Options.

     (c) Provided that Buyer has used its reasonable best efforts to obtain an NRT Exemption Confirmation, if, on the Satisfaction Date, (i) Buyer and Seller have not received an NRT Exemption Confirmation
and (ii) Seller has not received a Pre-Closing Clearance Certificate, then:

  
          (A) Buyer and Seller agree that the Closing shall be delayed until the earliest to occur of (w) the receipt of an NRT Exemption Confirmation, (x) the receipt by Seller of a Pre-Closing Clearance
      Certificate, (y) the date on which the Withholding Restructuring Steps (as defined herein) occur and (z) five days prior to the Outside Date (it being understood (i) that the Closing shall occur as promptly as practical after such earliest date and
      (ii) that if no Withholding Restructuring Step has occurred by the time described in clause (z) hereof, the Closing shall be consummated without regarding to any Withholding Restructuring Step);

          (B) As promptly as practical after the Satisfaction Date, Buyer shall use reasonable best efforts to propose an alternative method of effecting the transactions contemplated hereby that is designed to
      assure that Buyer and the Company are not required to withhold any amounts from the Aggregate Purchase Price pursuant to subsection 116(5) of the Canadian Tax Act (any such modification, a “Withholding Restructuring
        Step”);

          (C) Seller agrees to implement, as promptly as practical after Buyer proposes a Withholding Restructuring Step pursuant to clause (B) of this Section 2.07(c), such Withholding Restructuring Step to
      the greatest extent permitted by Applicable Law; and

          (D) Seller and Buyer agree to amend this Agreement, on terms and conditions acceptable to Buyer and Seller, to provide for the occurrence of such Withholding Restructuring Step;

  

25

provided that (I) no Withholding Restructuring Step shall affect the amount of the Aggregate Purchase Price and (II) Seller shall have no obligation to agree to any such Withholding Restructuring
Step unless Buyer agrees to indemnify Seller and each Class B Holder and their respective officers, directors, employees and Affiliates for any and all Damages incurred by any of them arising by reason of Seller’s agreement to consummate such
Withholding Restructuring Step or the consummation of such Withholding Restructuring Step (including any incremental Taxes of Seller, a Class B Holder or such other person that are attributable to such Withholding Restructuring Step, any costs
associated with amending this Agreement to provide for such Withholding Restructuring Step and any costs of implementing such Withholding Restructuring Step) (it being understood that, notwithstanding the foregoing provisions of this clause (II),
Seller will bear a reasonable level of legal costs in connection with the modifications contemplated by this Section 2.07(c)) .

     (d) Prior to the Closing, Buyer and Seller agree (i) to discuss in good faith certain modifications to the method of effecting the transactions contemplated hereby, including Buyer’s acquisition
of the Company, as well as certain transactions concerning the Company and its Affiliates anticipated to be effected before or following completion of the transactions contemplated hereby (including (W) the manner in which the Class B Shares and
In-the-Money Company Options are acquired, (X) the conversion of certain Company Entities to limited partnerships prior to Closing, (Y) the separate purchase by Buyer of Company Entities other than the Company and (Z) the acquisition of the Company
by Buyer by way of a forward merger under Applicable Law) that are intended to maximize the Tax efficiency to Buyer and its Affiliates of the transactions contemplated hereby (each such modification, a “General
Restructuring Step”) and (ii) to the extent that Buyer and Seller agree to effect General Restructuring Steps, to amend this Agreement, on terms and conditions acceptable to Buyer and Seller, to provide for the
occurrence of such General Restructuring Steps; provided that (A) Seller shall have no obligation to agree to consummate any General Restructuring Step if Seller, in its sole discretion,
acting in good faith, determines that it or the Class B Holders are adversely affected thereby; (B) no General Restructuring Step shall affect the amount of the Aggregate Purchase Price; (C) Buyer shall agree to indemnify Seller and each Class B
Holder and their respective officers, directors, employees and affiliates for any and all Damages incurred by any of them arising by reason of Seller’s agreement to consummate such General Restructuring Step or the consummation of such General
Restructuring Step (including any additional Taxes of Seller, a Class B Holder or such other person that are attributable to such General Restructuring Step, any costs associated with amending this Agreement to provide for such General Restructuring
Step and any costs of implementing such General Restructuring Step) (it being understood that, notwithstanding the foregoing provisions of this clause (C), Seller will bear a reasonable level of legal costs in 

26

connection with the good faith consideration contemplated by this Section 2.07(d)) and (D) no such General Restructuring Step shall impede or delay the consummation of the transactions contemplated by this Agreement.

     Section 2.08. Withholding; Gross-up. (a) Buyer shall be entitled to deduct and withhold from the consideration otherwise payable to the
holders of the Class A Shares, the Class B Shares and the In-the-Money Company Options pursuant to this Agreement such amounts as are required to be deducted and withheld with respect to the making of such payment under the Code, or under any
provision of state, local or foreign Tax law. Except as set forth in Sections 2.08(b) and (c), to the extent that amounts are so deducted and withheld by Buyer and paid over to the appropriate Taxing Authority, such deducted and withheld amounts
shall be treated for all purposes of this Agreement as having been paid to the holder of the Class A Shares, the Class B Shares or the In-the-Money Company Options, as the case may be, in respect of which such deduction and withholding was made by
Buyer.

     (b) If Buyer or the Company shall be entitled by law to deduct or withhold any amount under subsection 116(5) of the Canadian Tax Act in respect of the Class A Purchase Price, (i) Buyer (on behalf of
itself or the Company, as applicable), shall make such deductions or withholdings (including deductions and withholdings applicable to such additional sums payable under this Section 2.08(b)), (ii) Buyer shall pay additional amounts to Seller so
that the net amount received by Seller, after provision for such deductions and withholdings (including deductions and withholdings applicable to any such additional sums payable under this Section 2.08(b)) and any Taxes payable upon receipt of any
such additional sums payable under this Section 2.08(b), is equal to the amount Buyer would have received had no such deductions or withholdings been made with respect to the payment of the Class A Purchase Price, (iii) Buyer (on behalf of itself or
the Company, as applicable) shall pay the full amount deducted or withheld to the relevant Taxing Authority in accordance with applicable law and (iv) Buyer (on behalf of itself or the Company, as applicable) shall furnish to Seller an original or a
certified copy of a receipt evidencing payment thereof.

     (c) If (x) Buyer or the Company shall be entitled by law to deduct or withhold any amount under subsection 116(5) of the Canadian Tax Act in respect of any amount payable to a Class B Holder and (y)
the Gross-Up Conditions with respect to such Class B Holder have been satisfied, (i) Buyer (on behalf of itself or the Company, as applicable) shall make such deductions or withholdings (including deductions and withholdings applicable to such
additional sums payable under this Section 2.08(c)), (ii) the amount otherwise payable to such Class B Holder shall be increased as necessary so that the net amount received by such Class B Holder, after provision for such deductions and
withholdings (including deductions and withholdings applicable to any such additional sums payable under this Section 2.08(c)) and any Taxes payable upon receipt of any 

27

such additional sums payable under this Section 2.08(c), is equal to the amount it would have received had no such deductions or withholdings been made with respect to the payment to such Class B Holder, (iii) Buyer (on behalf of
itself or the Company, as applicable) shall pay the full amount deducted or withheld to the relevant Taxing Authority in accordance with applicable law and (iv) Buyer (on behalf of itself or the Company, as applicable) shall furnish such Class B
Holder with an original or a certified copy of a receipt evidencing payment thereof.

     (d) If any amounts are withheld by Buyer pursuant to Sections 2.08(b), to the extent permitted by Applicable Law, Seller will file the appropriate Tax returns to claim a refund of such Taxes. Seller
shall promptly pay over the amount of any such refund received to Buyer (including any interest paid or credited by the relevant taxing or governmental authority with respect to such refund), net of all out-of-pocket expenses and Taxes incurred by
Seller by reason of the receipt of such refund.

ARTICLE 3

REPRESENTATIONS AND WARRANTIES OF SELLER

     Except as set forth, subject to Section 13.11, in the Seller Disclosure Schedules, Seller represents and warrants to Buyer that:

     Section 3.01. Corporate Existence and Power. Seller is a corporation and the Company is a business trust each duly organized, validly
existing and in good standing under the laws of its jurisdiction of organization and each has all organizational powers to carry on its business as now conducted. The Company is duly qualified to do business as a foreign corporation and is in good
standing in each jurisdiction where such qualification is necessary, except for those jurisdictions where failure to be so qualified would not, individually or in the aggregate, reasonably be expected to be material.

     Section 3.02. Corporate Authorization. The execution, delivery and performance by Seller of this Agreement and the consummation of the
transactions contemplated by this Agreement are within Seller’s corporate powers and have been duly authorized by all necessary corporate action on the part of Seller. This Agreement constitutes a valid and binding agreement of Seller,
enforceable against Seller in accordance with its terms, except to the extent such enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or similar laws from time to time in effect
generally affecting the enforcement of creditors’ rights and remedies and general principles of equity.

     Section 3.03. Governmental Authorization. The execution, delivery and performance by Seller of this Agreement and the consummation of the

28

transactions contemplated by this Agreement require no action or approval by or in respect of, or filing with, any Governmental Authority other than (i) compliance with any applicable requirements of the HSR Act and applicable
foreign anti-trust, competition law and similar clearances, (ii) the filings and approvals set forth on Schedule 3.03, and (iii) any such action, approval or filing as to which the failure to make or obtain would not reasonably be expected to
prevent, enjoin or impair Seller’s ability to consummate the transactions contemplated by this Agreement or perform its obligations under this Agreement, or be material.

     Section 3.04. Noncontravention. The execution, delivery and performance by Seller of this Agreement and the consummation of the transactions
contemplated by this Agreement do not and will not (i) violate the certificate of incorporation or bylaws or other organizational documents of Seller or any Company Entity, (ii) assuming compliance with the matters referred to in Section 3.03 and
receipt of all required consents and approvals from Clients, violate any Applicable Law to which Seller, a Company Entity or any Sponsored Fund is subject, (iii) require any consent or other action by any Person under, constitute a default under, or
give rise to any right of termination, cancellation or acceleration of any right or obligation of a Company Entity or to a loss of any benefit to which a Company Entity is entitled under any provision of any agreement or other instrument binding
upon such Company Entity or (iv) result in the creation or imposition of any Lien on the equity or any asset of a Company Entity, with such exceptions, in the case of each of clauses (ii) through (iv), as would not, individually or in the aggregate,
reasonably be expected to prevent, enjoin or impair Seller’s ability to consummate the transactions contemplated by this Agreement or perform its obligations under this Agreement, or be material.

     Section 3.05. Capitalization. (a) The authorized capital stock of the Company consists of 200,000,000 Class A Shares, 19,000,000 Class B
Shares and 10,000,000 Preferred Shares.

     (b) As of the date of this Agreement, there are outstanding 87,834,958 Class A Shares, 7,243,089 Class B Shares, Company Options with respect to 6,425,843 Class B Shares and no Preferred
Shares.

     (c) All outstanding shares of capital stock of the Company have been duly authorized and validly issued and are fully paid and non-assessable. Except as set forth in this Section 3.05, as of the date
of this Agreement there are no outstanding (i) ownership interests in the Company, (ii) securities of the Company convertible into or exchangeable for ownership interests in the Company or (iii) options or other rights to acquire from the Company,
or other obligation of the Company to issue, any ownership interests in the Company or securities convertible into or exchangeable for ownership interests in the Company (the items in clauses (i) through (iii) being referred to collectively as the
“Company 

29

Securities”). Other than pursuant to the terms of the Equity Partnership Plan, there are no outstanding obligations of Seller or any Company Entity to repurchase, redeem or otherwise acquire
any Company Securities.

     Section 3.06. Ownership of Shares. Seller is the record and beneficial owner of all of the issued and outstanding Class A Shares, free and
clear of any Lien, and will transfer and deliver to Buyer at the Closing valid title to such Class A Shares free and clear of any Lien. At the Closing, following the cancellation of the Class B Shares and the Company Options pursuant to the terms of
the Equity Partnership Plan, there will be no Company Securities issued and outstanding other than the Class A Shares transferred to Buyer pursuant to Section 2.02.

     Section 3.07. Subsidiaries. (a) Each Subsidiary of the Company is an entity duly organized, validly existing and, with respect to
jurisdictions that recognize the concept of “good standing,” in good standing under the laws of the jurisdiction of its organization and has all organizational powers to carry on its business as now conducted. Each Subsidiary is duly
qualified to do business as a foreign corporation or other entity and is in good standing in each jurisdiction where such qualification is necessary, except for those jurisdictions where failure to be so qualified would not, individually or in the
aggregate, reasonably be expected to be material. All Subsidiaries of the Company and their respective jurisdictions of organization are identified on Schedule 3.07. There are no other Subsidiaries of the Company except as identified on Schedule
3.07.

     (b) All of the outstanding ownership interests in each Subsidiary of the Company as set forth on Schedule 3.07, are owned, directly or indirectly, by the Company free and clear of any Lien. There are
no outstanding (i) securities of any Company Entity convertible into or exchangeable for ownership interests in any Subsidiary of the Company or (ii) options or other rights to acquire from any Company Entity or other obligation of any Company
Entity to issue, any ownership interests in any Subsidiary of the Company or securities convertible into or exchangeable for ownership interests in any such Subsidiary (the items in clauses 3.07(b)(i) and 3.07(b)(ii) being referred to collectively
as the “Subsidiary Securities”). There are no outstanding obligations of any Company Entity to repurchase, redeem or otherwise acquire any outstanding Subsidiary
Securities.

     (c) Schedule 3.07(c) sets forth each Person, other than a Subsidiary or a Company Product, in which the Company, directly or through one or more Subsidiaries, owns an equity interest (the
“Minority Interests”). All of the Minority Interests as set forth on Schedule 3.07(c) are owned, directly or through one or more Subsidiaries, by the Company free and clear of any
Lien.

     Section 3.08. Financial Statements. (a) Seller has previously delivered to Buyer the audited consolidated balance sheets as of December 31,
2005, December 31, 2004 and December 31, 2003 and the related audited consolidated 

30

statements of income and cash flows for the years ended December 31, 2005 and December 31, 2004 and the unaudited interim consolidated balance sheet as of September 30, 2006 and the related unaudited interim consolidated
statements of income and cash flows for the nine months ended September 30, 2006 of the Company Entities (collectively, the “Financial Statements”). The Financial Statements fairly
present in all material respects in conformity with GAAP applied on a consistent basis (except as may be indicated in the notes thereto), the consolidated financial position of the Company Entities as of the dates thereof and their consolidated
results of operations and cash flows for the periods then ended (subject to normal year-end adjustments in the case of any unaudited interim financial statements).

     (b) The Company Entities maintain in all material respects internal controls over financial reporting to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with GAAP, all other accounting standards applicable to the Company Entities in each jurisdiction in which the relevant Company Entities operate, and all Applicable
Laws.

     (c) There are no “off balance sheet arrangements” (as defined by item 303(a)(4) of Regulation S-K promulgated by the SEC) in respect of any Company Entity.

     Section 3.09. Absence of Certain Changes. Since the Balance Sheet Date through the date of this Agreement, the business of the Company
Entities has been conducted in the ordinary course consistent with past practices and there has not been any action taken by any Company Entity that, if taken during the period from the date of this Agreement through Closing without Buyer’s
consent, would constitute a breach of Section 5.01. Since December 31, 2005, there has not been any event, occurrence or development which, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect.

     Section 3.10. No Undisclosed Material Liabilities. There are no liabilities of any Company Entity of any kind, other than (i) liabilities
provided for in the Balance Sheet or disclosed in the notes to the Financial Statements for the nine months ended September 30, 2006, (ii) liabilities disclosed in, related to or arising under any agreements or instruments disclosed in Schedules
3.04, 3.11, 3.12, 3.16, 3.19, 3.20 and 3.21 (other than as a result of a breach thereof by a Company Entity), (iii) liabilities incurred in the ordinary course of business since the Balance Sheet Date and that are consistent in nature, type and
amount with any such liability regularly incurred in the ordinary course of business consistent with past practice and (iv) other undisclosed liabilities which would not, individually or in the aggregate, reasonably be expected to be
material.

31

     Section 3.11. Material Contracts. (a) As of the date of this Agreement, no Company Entity is a party to or bound by:

        (i) any Investment Advisory Agreement with a Sponsored Public Fund that accounts for revenue to the Company Entities of $5,000,000 or more on an annualized basis;

        (ii) any Investment Advisory Agreement with a Sponsored Private Fund that accounts for revenue to the Company Entities of $2,000,000 or more on an annualized basis;

        (iii) any Investment Advisory Agreement with a Client other than a Sponsored Public Fund or a Sponsored Private Fund that accounts for revenue to the Company Entities of $2,000,000 or more on an
    annualized basis;

        (iv) (A) any principal underwriter agreement, custody agreement or shareholder servicing agreement, or (B) any fund services, transfer agent, administrative, accounting or any other similar agreement
    that accounts for revenue to the Company Entities of $2,000,000 or more on an annualized basis, in each case, with any Sponsored Public Fund or Sponsored Private Fund covered by clauses (i) and (ii) above;

        (v) (A) any participation agreement with a Variable Product Party or (B) any other agreement with a Variable Product Party or relating to a Variable Product that (i) accounts for revenue to the
    Company Entities of $10,000,000 or more on an annualized basis or (ii) provides for annual payments by the Company Entities of $2,000,000 or more (excluding payments under agreements relating to sub-accounting services, networking services,
    or sales meetings or other forms of compensation permitted under relevant NASD rules);

        (vi) any agreement under which such Company Entity is obligated, directly or indirectly, to make any capital contribution or other investment in any Person in an amount of $2,000,000 or
    more;

        (vii) any agreement that provides for earn-outs or other similar contingent obligations that, as of the date of this Agreement, would reasonably be expected to exceed $2,000,000;

        (viii) any agreement relating to the provision by the Company Entities of Investment Advisory Services, or any material agreement not relating to the provision by the Company Entities of Investment
    Advisory Services, in each case which contains (A) a “clawback” or similar undertaking by such Company Entity requiring the reimbursement or 

32

  
    refund of any fees or (B) a “most favored nation” or similar provision binding on such Company Entity;

        (ix) any lease (whether of real or personal property) providing for annual rentals of $2,000,000 or more;

        (x) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets providing for aggregate payments by the Company Entities of $6,000,000 or more;

        (xi) any sales or distribution agreement (or series of agreements with a party or related parties) that provides for annual payments by the Company Entities of $4,000,000 or more (excluding
    payments under agreements relating to sub-accounting services, networking services, or sales meetings or other forms of compensation permitted under relevant NASD rules);

        (xii) any joint venture, strategic alliance, partnership or other similar agreement or arrangement involving a sharing of profits or expenses or payments based on revenues or assets under management
    of any Company Entity or Fund that accounts for revenue to the Company Entities of $2,000,000 or more on an annualized basis;

        (xiii) any agreement relating to the acquisition or disposition of any business for a purchase price in excess of $5,000,000 (whether by merger, sale of stock, sale of assets or otherwise) under
    which the Company Entities are subject to ongoing obligations as of the date of this Agreement;

        (xiv) any agreement relating to indebtedness for borrowed money (whether incurred, assumed, guaranteed or secured by any asset), except any such agreement with an aggregate outstanding principal
    amount not exceeding $2,000,000;

        (xv) any agreement under which any Person has directly or indirectly guaranteed or otherwise agreed to be responsible for indebtedness, liabilities or obligations of any Company Entity in excess of
    $5,000,000;

        (xvi) (A) any agreement that limits the freedom of any Company Entity to compete in any line of business or with any Person or in any area or (B) any agreement relating to the provision by the Company
    Entities of Investment Advisory Services, or any material agreement not relating to the provision by the Company Entities of Investment Advisory Services,

33

  
    in each case which requires any Company Entity to deal exclusively with any Person;

        (xvii) any material Affiliate Arrangement or material contract with any director, officer or employee of any Company Entity, other than any Employee Plan or Foreign Plan;

        (xviii) any agreement providing for future payments or acceleration or vesting of payments, in each case in excess of $5,000,000 that are conditioned, in whole or in part, on a change in control
    of the Company;

        (xix) any other agreement of a type that is not covered by the other clauses of this Section 3.11(a) that (A) by its terms does not terminate or is otherwise not cancelable within 90 days without
    penalty, cost or liability and (B) requires aggregate payments by the Company Entities in excess of $5,000,000 per year for, or aggregating $10,000,000 over the life of, any such agreement;

        (xx) any agreement (A) to cap fees or other payments or to waive expenses or (B) to reimburse or assume fees and expenses in excess of $2,000,000 on an annual basis; or

        (xxi) any other agreement, commitment, arrangement or plan not made in the ordinary course of business that is material.

     (b) Each agreement, contract, plan, lease, arrangement or commitment required to be disclosed pursuant to this Section is a valid and binding agreement of the applicable Company Entity and, to the
knowledge of Seller, of any other party thereto, enforceable in accordance with its terms (except to the extent such enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or similar
laws from time to time in effect generally affecting the enforcement of creditors’ rights and remedies and general principles of equity) and is in full force and effect, and no Company Entity or, to the knowledge of Seller, any other party
thereto is in default (or with the giving of notice or the passage of time or both, would be in default) or breach in any material respect under the terms of any such agreement, contract, plan, lease, arrangement or commitment.

     Section 3.12. Intercompany Arrangements. (a) There is no material agreement or arrangement between any Company Entity or Sponsored Fund, on
the one hand, and Seller or any of its controlled Affiliates, on the other hand (each an “Affiliate Arrangement”).

34

     (b) Neither Seller nor any of its Subsidiaries (other than the Company Entities) owns any material property or asset used in the conduct of the business of the Company Entities. To the knowledge of
Seller, no director or officer of any Company Entity (i) owns any economic or ownership interest in any material Client or any material supplier, lessor or lessee (other than personal investments that do not represent a controlling interest) or (ii)
has received any loans from or otherwise is a debtor of, or made loans or otherwise is a creditor of, any Company Entity or any Fund.

     Section 3.13. Litigation. There is no action, suit, audit, investigation (including any governmental or regulatory investigation or inquiry)
or proceeding pending against, or to the knowledge of Seller, threatened against, Seller, any Company Entity, any Sponsored Fund or any of their respective properties before any arbitrator or any Governmental Authority which would reasonably be
expected to prohibit or impair the ability of Seller to consummate the transactions contemplated hereby, result in the granting of material injunctive or equitable relief or material governmental sanctions against any Company Entity or any Sponsored
Fund or result in liability of any Company Entity or any Sponsored Fund in excess of $2,000,000 individually or in excess of $20,000,000 in the aggregate.

     Section 3.14. Compliance with Laws and Court Orders; Regulatory Matters. (a) Each Company Entity, Employee Plan and Foreign Plan is in
compliance in all material respects with all Applicable Laws.

     (b) Each of the Company Entities holds all material governmental licenses, authorizations, permits, consents, approvals, exemptions and orders (“Permits”) necessary for the operation of its business. All such material Permits are in full force and effect and have not been suspended, cancelled, modified or revoked. To the knowledge of Seller,
each such material Permit can be renewed in the ordinary course of business by the applicable Company Entity. Since January 1, 2004, none of the Company Entities has received any written or, to the knowledge of Seller, oral notification from any
Governmental Authority asserting that such Person is not in compliance in any material respect with any of the Applicable Laws that such Governmental Authority enforces or that such Governmental Authority intends to suspend, cancel, materially
modify (outside the ordinary course) or revoke any material Permit. Each of the Company Entities has timely filed all material regulatory reports, schedules, forms, registrations and other documents, together with any amendments required under
Applicable Law to be made with respect thereto (“Company Filings”), that it was required under Applicable Law to file since January 1, 2004 with Governmental Authorities and has
paid all material fees and assessments due and payable in connection therewith. The information contained in such Company Filings complied with applicable filing requirements, as to form and content, in all material respects at the time of filing.
Each employee of any Company Entity or any Sponsored Fund 

35

who is required to be registered or licensed as a registered representative, investment adviser representative, “person associated” with an investment adviser or broker dealer, sales person or a like Person with any
Governmental Authority is duly registered as such and such registration is in full force and effect, except as would not, individually or in the aggregate, reasonably be expected to be material.

     (c) Each Subsidiary of the Company identified as such in Schedule 3.14(c) is, and at all times required by the Investment Advisers Act during its existence has been, duly registered as an investment
adviser under the Investment Advisers Act. Each Subsidiary of the Company that is required to be is, and at all times required by Applicable Law (other than the Investment Advisers Act) has been, duly registered, licensed or qualified as an
investment adviser in each state or any other jurisdiction where the conduct of its business required such registration, licensing or qualification, except as would not, individually or in the aggregate, reasonably be expected to be material. No
Company Entity not identified in Schedule 3.14(c) is an “investment adviser” required to register as such under the Investment Advisers Act or any other Applicable Law and is subject to any material liability or disability by reason of any
failure to be so registered, licensed or qualified.

     (d) Each Subsidiary of the Company identified in Schedule 3.14(d) is, and at all times required by Applicable Law has been, duly chartered as a trust company or bank having fiduciary powers necessary
for the conduct of its business; is and at all times required by Applicable Law has satisfied the requirements to be considered a “bank” under the Investment Company Act and the Investment Advisers Act; and is and at all times required by
Applicable Law has been well managed and well capitalized as those terms are used in the FDIC’s regulations or otherwise in good standing with the bank regulatory authorities.

     (e) Each Subsidiary of the Company that is required to be is, and at all times required by Applicable Law has been, duly registered, licensed or qualified as a broker or dealer in each jurisdiction
where the conduct of its business required such registration, licensing or qualification, except as would not, individually or in the aggregate, reasonably be expected to be material. No Company Entity not identified in Schedule 3.14(e) is required
to be registered, licensed or qualified as a broker or dealer under any Applicable Law and is subject to any material liability or disability by reason of any failure to be so registered, licensed or qualified.

     (f) (i) With respect to each Company Entity that serves in a capacity described in Section 9(a) or 9(b) of the Investment Company Act with respect to a U.S. Public Fund, (A) such Company Entity is not
(taking into account any applicable exemption) ineligible under such Section 9(a) or 9(b) to serve in such capacity and (B) there is no proceeding or investigation pending and served on a 

36

Company Entity or, to the knowledge of Seller, pending and not so served, or threatened, by any Governmental Authority, which would result in (1) the ineligibility of such Company Entity to serve in such capacity under such
Section 9(a) or 9(b) or (2) the ineligibility under such Section 9(b) of an “affiliated person” (as defined in Section 2(a)(3) of the Investment Company Act) of such Company Entity to serve as an “affiliated person” of such
Company Entity.

        (ii) With respect to each Company Entity that acts as an investment adviser within the meaning of the Investment Advisers Act, (A) such Company Entity is not (taking into account any applicable
    exemption) ineligible pursuant to Section 203(e) of the Investment Advisers Act to act as an investment adviser, (B) to the knowledge of Seller, no “person associated” (as defined in Section 202(a)(17) of the Investment Advisers Act) with
    such Company Entity is (taking into account any applicable exemption) ineligible under Section 203(f) of the Investment Advisers Act to serve as a “person associated” with an investment adviser and (C) there is no proceeding or
    investigation pending and served on a Company Entity or, to the knowledge of Seller, pending and not so served, or threatened, by any Governmental Authority, which would result in (1) the ineligibility under such Section 203(e) of such Company
    Entity to act as an investment adviser or (2) the ineligibility under such Section 203(f) of such “person associated” with such Company Entity to serve as a “person associated” with an investment adviser. No Company Entity is
    required to disclose any information to Clients or prospective Clients under Rule 206(4)-4 under the Investment Advisers Act.

        (iii) With respect to each Company Entity that acts as a broker or dealer within the meaning of the 1934 Act, (A) such Company Entity is not (taking into account any applicable exemption) ineligible
    pursuant to Section 15(b)(4) of the 1934 Act to act as a broker or dealer, (B) to the knowledge of Seller, no “person associated” (as defined in Section 3(a)(18) of the 1934 Act) with such Company Entity is (taking into account any
    applicable exemption) ineligible under Section 15(b)(6) of the 1934 Act to serve as a “person associated” with a broker or dealer and (C) there is no proceeding or investigation pending and served on a Company Entity or, to the knowledge
    of Seller, pending and not so served or threatened by any Governmental Authority, which would result in (1) the ineligibility under such Section 15(b)(4) of such Company Entity to act as a broker or dealer or (2) the ineligibility under such Section
    15(b)(6) of such “person associated” with such Company Entity to serve as a “person associated” with a broker or dealer.

     (g) Copies of all material inspection reports or similar documents furnished to any Company Entity or Sponsored Fund by any Governmental

37

Authority and any material written responses thereto (in both cases) since January 1, 2001 have been made available to Buyer.

     (h) Prior to the date of this Agreement, Seller has made available to Buyer a true and correct copy of each material no-action letter and material exemptive order issued by the SEC to any Company
Entity or Sponsored U.S. Public Fund that remains applicable to its business as currently conducted.

     (i) The Company Entities and Sponsored Funds are in compliance in all material respects with Applicable Law relating to (i) the use of corporate funds for contributions, payments, gifts or
entertainment and (ii) the making of expenditures relating to political activity to government officials or others, and no Company Entity or Sponsored Fund has established or maintained any unlawful or unrecorded funds in a manner contrary to
Applicable Law in any material respect. The Company Entities and Sponsored Funds are in compliance in all material respects with Applicable Law relating to anti-money laundering (including regulations of the Office of Foreign Asset Control of the
U.S. Department of Treasury).

     Section 3.15. Clients. (a) Schedule 3.15(a) sets forth a complete and correct list, as of the date of this Agreement, of each Public Fund,
each Private Fund and each other Client (other than natural persons and investment vehicles of natural persons that invest through separately managed accounts opened through a broker-dealer or other financial institution). Each Sponsored U.S. Public
Fund is, and at all times required under Applicable Law has been, duly registered with the SEC as an investment company under the Investment Company Act. Each Sponsored Public Fund is, and at all times required under Applicable Law has been, duly
registered as a pooled investment vehicle with such Governmental Authorities as are required under Applicable Law, except as would not, individually or in the aggregate, reasonably be expected to be material. No Sponsored Private Fund is required to
register as an investment company under the Investment Company Act.

     (b) Each Sponsored Fund is duly organized, validly existing and, with respect to jurisdictions that recognize the concept of “good standing,” in good standing under the laws of the
jurisdiction of its organization and has the requisite corporate, trust, company or partnership power and authority to own its properties and to carry on its business conducted as of the date of this Agreement, and is qualified to do business in
each jurisdiction where it is required to be so qualified under Applicable Law, except where failure to be so qualified would not, individually or in the aggregate, reasonably be expected to be material.

     (c) The shares or units of each Sponsored Public Fund (i) have been issued and sold by such Sponsored Public Fund in compliance in all material respects with Applicable Law, (ii) are and were
qualified in all material respects 

38

for public offering and sale by such Sponsored Public Fund in each jurisdiction where offers are made to the extent required under Applicable Law and (iii) have been duly authorized and validly issued in all material respects and
are fully paid and non-assessable.

     (d) All outstanding shares or interests of each Sponsored Private Fund have been issued and sold by such Sponsored Private Funds in compliance in all material respects with Applicable Law.

     (e) Each Sponsored Public Fund has all material permits, licenses, certificates of authority, orders and approvals of, and has made all material filings, applications and registrations with,
Governmental Authorities that are required by Applicable Law in order to permit it to carry on its respective business as presently conducted, and such material permits, licenses, certificates of authority, registrations, orders and approvals are in
full force and effect.

     (f) Each Sponsored Fund is in compliance in all material respects with all Applicable Law. The registration statement of each Sponsored U.S. Public Fund under the Investment Company Act and/or the
Securities Act has, at all times when such registration statement was effective since January 1, 2004, complied in all material respects with the requirements of the Investment Company Act and the Securities Act then in effect and neither such
registration statement nor any amendments thereto contained, at any time when such registration statement was in use since January 1, 2004, an untrue statement of a material fact or omitted to state a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, except in each case as would not, individually or in the aggregate, reasonably be expected to be material. Neither the private
placement memorandum of each Sponsored Private Fund nor any amendments thereto contained, at the time such private placement memorandum or, as applicable, any amendment, was in use since January 1, 2004, an untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, except in each case as would not, individually or in the
aggregate, reasonably be expected to be material.

     (g) Each Sponsored Fund has filed all material registrations, reports, prospectuses, proxy statements, statements of additional information, financial statements, statements, notices and other
material filings required to be filed by it within the past two years with any Governmental Authority, including all material amendments or supplements to any of the above, in each case to the extent related to its business (the
“Fund Filings”). The Fund Filings complied in all material respects with the requirements of Applicable Law. To the knowledge of Seller, the information contained in the Fund
Filings does not contain any untrue 

39

statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make any material statement made therein, in light of the circumstances, not misleading. The financial
statements, including, without limitation, the statement of assets and liabilities, the statement of operations and the statement of changes in net assets, and the notes thereto set forth in any such Fund Filings or sent to any investor fairly
present, in all material respects, the financial position of each Sponsored Fund as at the dates of such statements and the results of its operations for the periods covered thereby in accordance with GAAP consistently applied (except as noted
therein). Since the end of the period covered by any such Fund Filing and except as addressed by another Fund Filing, there has occurred no event or condition which would (i) require any Sponsored Fund to file an additional Fund Filing (other than a
Fund Filing of the type required to be filed periodically in the ordinary course) or (ii) require any Sponsored Fund to conduct a meeting of its shareholders (other than a meeting held or to be held in the ordinary course of such Fund), in each case
other than with respect to the transactions contemplated by this Agreement.

     (h) No Company Entity or any person who is an “affiliated person” (as defined in the Investment Company Act) or, to the knowledge of Seller, an “interested person” (as defined in
the Investment Company Act) of any Company Entity, receives or is entitled to receive any compensation directly or indirectly (i) from any person in connection with the purchase or sale of securities or other property to, from or on behalf of a U.S.
Public Fund or (ii) from any U.S. Public Fund or its security holders, except, in any such case, in material compliance with Applicable Law (including Section 17(e) of the Investment Company Act and the regulations thereunder). The respective
Company Entities and Sponsored U.S. Public Funds are in material compliance with Applicable Law regulating such compensation arrangements, including disclosure thereof. 

     (i) As to each U.S. Public Fund, there has been in full force and effect an investment advisory agreement between such Fund and a Company Entity at all times when a Company Entity has acted as an
investment adviser to such Fund, except in each case as would not, individually or in the aggregate, reasonably be expected to be material. Each agreement pursuant to which any Company Entity has, since January 1, 2004, received compensation
respecting its activities in connection with each U.S. Public Fund was duly approved and has been duly renewed in accordance with the applicable provisions of the Investment Company Act, except in each case as would not, individually or in the
aggregate, reasonably be expected to be material. Each Company Entity providing Investment Advisory Services to a U.S. Public Fund under an investment advisory agreement is not in material breach of such agreement. As to each Sponsored U.S. Public
Fund that pays fees under Rule 12b-1 under the Investment Company Act, there has been in full force and effect a Rule 12b-1 Plan authorizing such payment at all times since the commencement of payment of such fees, except in each case as would not,
individually or in the aggregate, reasonably be expected 

40

to be material. Each Rule 12b-1 Plan pursuant to which any Sponsored U.S. Public Fund pays fees was duly approved and has been duly renewed in accordance with the applicable provisions of the Investment Company Act and rules
thereunder, except in each case as would not, individually or in the aggregate, reasonably be expected to be material. All 12b-1 fees paid by a Sponsored U.S. Public Fund are in accordance with the applicable Rule 12b-1 Plan, except in each case as
would not, individually or in the aggregate, reasonably be expected to be material. The proceeds of all 12b-1 fees paid by a U.S. Public Fund and used by a Company Entity have been used by such Company Entity for a proper purpose in accordance with
Applicable Law and the terms of the applicable Rule 12b-1 Plan, except in each case as would not, individually or in the aggregate, reasonably be expected to be material.

     (j) There are no material consent judgments or orders of a Governmental Authority or judicial orders on or with regard to any Sponsored Fund currently in effect.

     (k) Since January 1, 2004, (i) each Sponsored Fund has been operated in compliance with its respective investment objectives, investment policies and offering document descriptions in all material
respects, (ii) any Company Entity that has provided Investment Advisory Services to any Fund that is not a Sponsored Fund has done so in compliance in all material respects with its respective investment objectives, investment policies and offering
document descriptions from time to time provided to the Company Entities by the sponsor of such Fund, and (iii) any Company Entity that has provided Investment Advisory Services to any Client that is not a Fund has done so in compliance in all
material respects with such Client’s Investment Advisory Agreement with the Company Entities.

     (l) (i) (A) All material federal, state, foreign and other material Tax returns, dividend reporting forms and other Tax-related reports of the Sponsored Funds required by Applicable Law to have been
filed by the Closing Date shall have been filed in a timely manner and are or will be correct in all material respects, (B) all material Taxes shown as due or required to be shown as due on such returns, forms and reports, or any other Taxes due,
and any interest and/or penalties, shall have been paid or provision shall have been made for the payment thereof, (C) none of the Sponsored Funds is under audit and no assessment for Taxes or other amounts has been proposed or asserted with respect
to any of the Sponsored Funds, and (D) provision has been or will be made for any material Taxes, or interest or penalties, for which returns and/or payments are not due on or before the Closing Date.

        (ii) To the knowledge of Seller, each Sponsored U.S. Public Fund has elected to be treated as a “regulated investment company” under Subchapter M of Chapter 1 of Subtitle A of the Code
    (“Subchapter M”), 

41

  
    and each Sponsored U.S. Public Fund has qualified for all taxable years as a “regulated investment company” under the Code and has complied with all applicable provisions of law necessary to preserve and retain such
    Sponsored U.S. Public Fund’s election and status as a regulated investment company.

        (iii) Each Sponsored U.S. Public Fund has been (or will be) eligible to compute and has computed (or will compute) its federal income tax under Section 852 of the Code, and will have distributed (or
    will distribute pursuant to the provisions of Section 855 of the Code) substantially all of (A) its investment company taxable income (computed without regard to any deduction for dividends paid), (B) any net capital gain (after reduction for any
    capital loss carryover) and (C) the excess of (1) its investment income excludible from gross income under Section 103 of the Code over (2) its deductions disallowed under Sections 265 and 171 of the Code (net tax-exempt income), for all taxable
    years of the Sponsored U.S. Public Funds ending prior to or on the Closing Date.

        (iv) Each Sponsored U.S. Public Fund that is a tax-exempt municipal bond Sponsored U.S. Public Fund has satisfied the requirements of Section 852(b)(5) of the Code and is qualified to pay exempt
    interest dividends as defined therein.

        (v) Each Sponsored U.S. Public Fund has properly complied with the designation requirements with respect to the character of dividends paid to shareholders under Sections 852, 854 and 855 of the
    Code.

        (vi) Each Sponsored U.S. Public Fund that has made any election with respect to foreign taxes under Section 853 of the Code has properly complied with the requirements for making such election and
    proper designation of such Taxes.

        (vii) Each Sponsored U.S. Public Fund that is an underlying investment for any variable annuity contract and/or variable life insurance contract has satisfied and will continue to satisfy through the
    Closing Date, the diversification and other requirements of Section 817(h) of the Code and the Treasury Regulations thereunder.

        (viii) Each Sponsored U.S. Public Fund has complied, in all material respects, with (A) any and all United States and or state Tax reporting and information return obligations; (B) the collection and
    maintenance of Forms W-9 and/or Forms W-8, as applicable, and (C) obligations with respect to backup withholding on payments to 

42

  
    shareholders and/or withholding on payments to non-resident aliens and other foreign shareholders as required under the Code.

     (m) Each Company Entity has complied in all material respects with (A) all applicable Tax and ERISA reporting requirements with respect to all Clients for which it provides services, including but not
limited to, qualified retirement plans, college savings plans, and individual retirement arrangements, (B) the collection and maintenance of all applicable withholding forms relating to such Clients and (C) all withholding obligations required under
the Code with respect to payments to such Clients.

     Section 3.16. Variable Product Parties. (a) Schedule 3.16(a) sets forth a complete and correct list, as of the date of this Agreement, of
each Variable Product Party with which a Company Entity has any participation arrangement or agreement.

     (b) Schedule 3.16(b) sets forth a complete and correct list, as of the date of this Agreement, of all variable products for which the Putnam Variable Trust is the sole underlying fund investment
option, together with the amount of assets of the Putnam Variable Trust outstanding under each such product as of the Base Date.

     Section 3.17. Properties. The Company Entities do not own any real property. The applicable Company Entity has (and immediately after the
consummation of the transactions contemplated hereby, will have) good and valid title to, or in the case of leased property and assets has (and immediately after the consummation of the transactions contemplated hereby, will have) good and valid
leasehold interests in, or otherwise has (and immediately after the consummation of the transactions contemplated hereby, will have) full and sufficient and legally enforceable rights to use all properties and assets (whether real, personal,
tangible or intangible) used or held for use in connection with, necessary for the conduct of, or otherwise material to, the business of the Company Entities except for properties and assets disposed of in the ordinary course of business or as
permitted by this Agreement or where the failure to have such good and valid title, valid leasehold interests or other rights would not, individually or in the aggregate, reasonably be expected to be material. None of such property or assets is
subject to any Lien, other than Permitted Liens. Each Company Entity has maintained all tangible property or assets in good repair, working order and operating condition subject only to ordinary wear and tear.

     Section 3.18. Tax Representations. (a) (i) All Tax returns, statements, reports and forms (collectively, the “Company Returns”) that are material and required to be filed with any Taxing Authority on or before the Closing Date with respect to any Pre-Closing Tax Period by, or with respect to, any Company
Entity have been, or will be, timely filed on or before the Closing Date; (ii) the Company

43

Entities have timely paid all Taxes shown as due and payable on the Company Returns that have been filed; (iii) the Company Returns that have been filed are true, correct and complete in all material respects; (iv) the charges,
accruals and reserves for Taxes with respect to the Company Entities reflected on the books of the Company Entities are adequate to cover material Tax liabilities accruing through the end of the last period for which the Company Entities ordinarily
record items on their respective books; and (v) there is no action, suit, proceeding, investigation, audit or claim now proposed or pending against or with respect to any Company Entity in respect of any material Tax.

     (b) None of the Company Entities has waived any statute of limitations applicable to any Tax return, which period (after giving effect to such extension or waiver) has not yet expired. There are no
Liens for Taxes (other than Taxes not yet due and payable) upon any assets of any Company Entity. Each Company Entity has withheld and paid all material Taxes required to have been withheld and paid in connection with any amounts paid or owing to
any employee, independent contractor, creditor, stockholder, or other third party. Seller has delivered or made available to Buyer correct and complete copies of all Federal, state and foreign income Tax returns (prepared on a pro forma basis in the
case of consolidated, combined or unitary Tax returns) filed by the Company Entities with respect to taxable periods beginning after December 31, 2002 and copies of all examination reports received with respect to any Company Entity with respect to
any taxable period beginning after December 31, 2002. No claim has ever been made by a Governmental Authority in a jurisdiction where a Company Entity does not file Tax returns that such Company Entity is or may be subject to taxation in that
jurisdiction. None of the Company Entities will be required to include any material item of income in, or exclude an item of deduction from, taxable income for any taxable period (or portion thereof) ending after the Closing Date as a result of any
(A) change in method of accounting for a taxable period ending on or prior to the Closing Date; (B) closing agreement or similar agreement with respect to Taxes executed prior to the Closing; (C) installment sale or open transaction disposition made
on or prior to the Closing Date; or (D) prepaid amount received on or prior to the Closing Date.

     (c) From January 1, 2007 to the date hereof, (i) the Company has not received dividends or other income distributions from Putnam, LLC or any other Company Entity and Putnam, LLC has not redeemed,
acquired or cancelled any of the limited liability company interests in it held by the Company, and (ii) the Company has not directly received any interest, rent, royalties or management fees. This representation and warranty will not survive the
Closing if a Finance Comfort Letter or CRA Tax Ruling is obtained prior to the Closing Date.

     (d) As of the date hereof, Seller is a resident of the United States for the purposes of the Canada-United States Income Tax Convention (1980), as 

44

amended, and, as such, is entitled under current law to all the benefits provided therein for a resident of the United States.

     Section 3.19. Intellectual Property. (a) Schedule 3.19(a) sets forth a complete and correct list of (i) all registrations and applications
for registration included in the Company Intellectual Property Rights, specifying, as to each such item, as applicable, the jurisdiction and number of each such application and/or registration and (ii) all material software applications included in
the Company Intellectual Property Rights. Schedule 3.19(a)(iii) sets forth a list of certain material unregistered trademarks used in the conduct of the business of the Company Entities as currently conducted. Notwithstanding the foregoing, for the
avoidance of doubt, Seller makes no representations whatsoever as to the completeness of Schedule 3.19(a)(iii) .

     (b) Schedule 3.19(b) sets forth a complete and correct list of all material agreements under which a Company Entity (i) uses or has the right to use any Intellectual Property Rights owned by a third
party (other than agreements for commercially-available software that are subject to “shrink wrap” or other similar user licenses) or (ii) has licensed or sublicensed to others the right to use any Company Intellectual Property Rights
(other than (x) non-exclusive end user licenses granted to the Company’s customers in the normal course of business, (y) non-exclusive limited use trademark licenses granted to the Company Entities’ clients, distributors or strategic
partners in the ordinary course of business, or (z) any non-disclosure agreements entered into in the normal course of business).

     (c) The Company Entities have exclusive right, title and interest in and to all Company Intellectual Property Rights free and clear of any Lien. To the knowledge of Seller, the Company Intellectual
Property Rights and the Licensed Intellectual Property Rights together constitute all the Intellectual Property Rights necessary to or otherwise used in the conduct of the business of the Company Entities as currently conducted. The registrations of
all material Company Intellectual Property Rights set forth on Schedule 3.19(a) are held and/or recorded in the applicable Company Entity’s name, are validly registered, legally enforceable and in full force, and are not subject to any
cancellation or reexamination proceeding. Each agreement set forth on Schedule 3.19(b) is a valid and binding agreement of the applicable Company Entity and, to the knowledge of Seller, of any other party thereto, enforceable in accordance with its
terms, and no Company Entity or, to the knowledge of Seller, any other party thereto is in default or breach in any respect under the terms of any such agreement, except for any such defaults or breaches which would not, individually or in the
aggregate, reasonably be expected to be material.

     (d) Except as would not, individually or in the aggregate, reasonably be expected to be material, the conduct of the business of the Company Entities as currently conducted does not infringe upon,
misappropriate, violate or conflict in 

45

any material way with the Intellectual Property Rights of any other third party Person (other than with respect to Patent rights). To the knowledge of Seller, the conduct of the business of the Company Entities as currently
conducted does not infringe upon, misappropriate, violate or conflict in any material way with the Patent rights of any other third party Person. Since January 1, 2004: (i) the Company Entities have not received any notice alleging that any Company
Intellectual Property Rights are invalid or unenforceable or challenging the Company Entities’ ownership of the Company Intellectual Property Rights or asserting that the Company Entities are infringing or misappropriating the Intellectual
Property Rights of any third party Person; and (ii) there is and has been no action, suit or proceeding pending, or, to the knowledge of Seller, threatened, against any Company Entity (A) challenging or seeking to deny or restrict the rights of any
Company Entity in any Company Intellectual Property Right or Licensed Intellectual Property Right, or (B) alleging that any Company Entity has infringed, misappropriated or otherwise violated any Intellectual Property Right of any third party. No
Company Intellectual Property Right is subject to any material outstanding judgment, injunction, order, decree or agreement restricting the use thereof by any Company Entity or restricting the licensing thereof by any Company Entity to any Person;
provided that the foregoing representation shall be limited to the knowledge of Seller as relates to any judgment, injunction, order, decree or agreement, as applicable, to which a Company
Entity is not a party.

     (e) To the knowledge of Seller, no third party is infringing or otherwise violating any Company Intellectual Property Rights in a manner that would materially adversely affect such Company
Intellectual Property Rights, and, since January 1, 2004, no Company Entity has sent any notice to or asserted or threatened any action or claim against any Person involving or relating to any alleged material violation of any Company Intellectual
Property Rights. The Company Entities have taken all reasonable and appropriate steps in accordance with normal industry practice (i) to protect and maintain all material Intellectual Property Rights used or held for use by the Company Entities in
the conduct of the business of the Company Entities as currently conducted and (ii) to preserve the confidentiality of any Company Intellectual Property, the value of which is dependent upon maintaining the confidential nature thereof.

     (f) The Company Entities have in place and practice a policy by which any Company Intellectual Property Rights developed in whole or in part by any employee of the Company Entities in the course of
his or her employment are owned by the Company Entities. The Company Entities take commercially reasonable steps, in accordance with normal industry practice, to have each outside consultant, who is or has been involved in the development of any
Company Intellectual Property Rights, enter into an appropriate agreement assigning or granting the right to use to a Company Entity all rights to any 

46

Intellectual Property Rights developed on behalf of such Company Entity by such outside consultant in the course of his or her employment.

     (g) Except as would not, individually or in the aggregate, reasonably be expected to be material, the Company Entities’ practices regarding the collection, dissemination and use of personal
customer information in connection with the business or operations of the business or assets are and have been in accordance in all material respects with any applicable contractual agreements with customers or applicable privacy policies published
by the Company Entities or otherwise communicated by, and in a manner binding upon, the Company Entities to their respective customers.

     (h) Except as would not, individually or in the aggregate, reasonably be expected to be material, no material Company Intellectual Property Rights developed by or on behalf of the Company Entities,
and, to the knowledge of Seller, no material Company Intellectual Property Rights acquired from third parties, were developed in whole or in part (i) pursuant to, or in connection with, the development of any professional, technical or industry
standard, (ii) under contract with any government authority, (iii) using any government funding, or funding of a university, college or other educational institution or research center or (iv) to the knowledge of Seller, incorporating any software,
software development toolkits, databases, libraries, scripts, or other, similar modules of software that are subject to “open source” or similar license terms, including but not limited to the GNU General Public License and the GNU Limited
General Public License and that would subject the Company Entities to any obligation, in favor of any third party, for the Company Entities to disclose or distribute any such Company Intellectual Property Rights in source code form, to license any
such Company Intellectual Property Rights for the purpose of making derivative works, or to distribute any such Company Intellectual Property Rights without charge.

     Section 3.20. Insurance Coverage. Seller has made available to Buyer a list of all material insurance policies and fidelity bonds relating
to the assets, business, operations, employees, officers or directors of the Company Entities, each of which is listed on Schedule 3.20 and which is effective as of the date of this Agreement. Such insurance policies are in full force and effect and
such policies (or replacement policies of substantially the same character and coverage) will continue in force to the Closing Date. As of the date of this Agreement, there are no outstanding written notices of cancellation of any material insurance
policy maintained in favor of a Company Entity (excluding, for the avoidance of doubt, statutory notices of expiration and other such notices given in accordance with Applicable Law). As of the date of this Agreement, there are no material claims by
the Company Entities pending under any of such policies or bonds as to which coverage has been questioned, denied or disputed by the underwriters of such 

47

policies or bonds or in respect of which such underwriters have reserved their rights.

     Section 3.21. Employee Benefit Plans. (a) Schedule 3.21(a) contains a list of all material Employee Plans. The Company has made available to
Buyer copies of each material Employee Plan (and, if applicable, related trust or funding agreements or insurance policies), and all amendments thereto and written interpretations thereof have been furnished to Buyer together with the most recent
annual report (Form 5500 including, if applicable, Schedule B thereto) and Form 990, if applicable, prepared in connection with any such plan or trust.

     (b) None of the Company, any ERISA Affiliate and any predecessor thereof sponsors, maintains, contributes to, or has in the past six years sponsored, maintained, contributed to or incurred any
liability to any (i) employee benefit plan subject to Title IV of ERISA or Part 3, Subtitle B of Title I of ERISA, (ii) multiemployer plan, as defined in Section 3(37) of ERISA, (iii) funded welfare benefit plan within the meaning of Section 419 of
the Code, or (iv) any Employee Plan that is now or at any time has been a plan or arrangement that has two or more contributing sponsors at least two of whom are not under common control, within the meaning of Section 4063 of ERISA.

     (c) Each Employee Plan which is intended to be qualified under Section 401(a) of the Code has received a favorable determination letter, or has pending or has time remaining in which to file, an
application for such determination from the Internal Revenue Service, and neither Seller nor the Company is aware of any reason why any such determination letter should be revoked or not be reissued. The Company has made available to Buyer copies of
the most recent Internal Revenue Service determination letters with respect to each such Employee Plan. Each Employee Plan has been maintained in compliance with its terms and with the requirements prescribed by any and all statutes, orders, rules
and regulations, including ERISA and the Code, which are applicable to such Employee Plan, except as would not be material. No events have occurred with respect to any Employee Plan that could result in payment or assessment by or against any
Company Entity of any material charges or taxes including excise taxes under Sections 4972, 4976, 4977, 4979, 4980B, 4980D, 4980E or 5000 of the Code, if applicable, except as would not be material.

     (d) No Employee Plan provides death or medical benefits, beyond termination of service or retirement other than (i) coverage mandated by Applicable Law or (ii) death or retirement benefits under an
Employee Plan qualified under Section 401(a) of the Code. Neither any Company Entity nor any ERISA Affiliate has made a written or oral representation to any current or former employee promising or guaranteeing any employer paid continuation of
medical, dental, life or disability coverage for any period of time beyond retirement or termination of employment.

48

     (e) No Employee Plan exists that, as a result of the transactions contemplated by this Agreement (whether alone or in connection with other events), would result in the payment, individually or in the
aggregate of a material nature, to any current or former employee, director or independent contractor of any Company Entity of any money or other property or could result in the acceleration or provision of any other rights or benefits, individually
or in the aggregate of a material nature, to any current or former employee, director or independent contractor of any Company Entity.

     (f) Since the Balance Sheet Date, no Company Entity has effectuated (i) a “plant closing” (as defined in the WARN Act) affecting any site of employment or one or more facilities or operating
units within any site of employment or facility of any Company Entity, (ii) a “mass layoff” (as defined in the WARN Act) or (iii) such other transaction, layoff, reduction in force or employment terminations sufficient in number to trigger
application of any similar state or local law which would be material.

     (g) Each Company Entity and each ERISA Affiliate has complied in all material respects with the notice and continuation coverage requirements of section 4980B of the Code and the regulations
thereunder with respect to each Employee Plan that is a group health plan within the meaning of section 5000(b)(1) of the Code. Each Employee Plan is in compliance in all material respects with the applicable provisions of the Health Insurance
Portability and Accountability Act of 1996 (“HIPAA”) and the regulations issued thereunder.

     (h) Except as set forth on Schedule 3.13, with respect to each Employee Plan, except as would not be material (i) there are no pending audits or investigations by any Governmental Authority, no
termination proceedings, and no pending or, to the knowledge of Seller, any Company Entity or any ERISA Affiliate, (A) threatened claims (except for individual claims for benefits payable in the normal operation of the Employee Plans), suits or
proceedings asserting any rights or claims to benefits under any Employee Plan or (B) any facts which would reasonably be expected to give rise to any liability in the event of any such audit, investigation, claim, suit or proceeding, and (ii) all
reports, returns and similar documents required to be filed with any government agency or distributed to any Employee Plan participant have been duly and timely filed or distributed.

     (i) Neither the Employee Plans, any trusts created thereunder, any Company Entity or any ERISA Affiliate, nor any employee of the foregoing, nor, to the knowledge of any Company Entity or any ERISA
Affiliate, any trustee, administrator or other fiduciary thereof, has engaged in a “prohibited transaction” (as such term is defined in section 4975 of the Code or section 406 of ERISA) or any other activity that could subject any thereof
to any material Tax or penalty (including the Taxes or penalties on prohibited transactions imposed by section 4975 of the Code) or any material sanctions imposed under Title I of ERISA.

49

     (j) No payment which is or may be made in connection with the transactions contemplated by this Agreement by, from or with respect to any Employee Plan, to any employee, former employee, director or
agent of any Company Entity or any ERISA Affiliate, either alone or in conjunction with any other payment, event or occurrence, (i) will or could properly be characterized as an “excess parachute payment” under section 280G of the Code (or
any corresponding provision of any Applicable Law) and (ii) will not be fully deductible as a result of section 162(m) of the Code (or any corresponding provision of any Applicable Law).

     (k) No awards (and no agreement or promise by a Company Entity to make awards) under any Employee Plan that provides for the granting of equity, equity-based rights, equity derivatives or options to
purchase equity (“Equity Plans”) have been granted with an effective grant date that is other than the date on which the committee or other administrator of such Equity Plans
having authority thereunder to make such awards, (i) has taken all necessary corporate action to complete such awards (unless such committee or other administrator has specified a future grant date on the date it so acts and such action has been (or
will be) completed prior to such future grant date), and (ii) has timely communicated all of the terms of the awards to the recipients in accordance with the Company Entities’ customary human resource practices and applicable accounting
standards. In addition, no awards made under the Equity Plans have been (or will be) altered in any manner that would result in or have the effect of failing to comply with the foregoing sentence.

     (l) Except where it would not be material, each Company Entity has properly classified for all purposes (including for all Tax purposes and for purposes of determining eligibility to participate in
any Employee Plan) all employees, leased employees, consultants and independent contractors, and has withheld and paid all applicable Taxes and made all appropriate filings in connection with services provided by such persons to the Company
Entities.

     (m) (i) All liabilities of each Employee Plan for any period before the Closing Date are either funded or are properly accrued and reflected on the financial statements of Seller and (ii) all
contributions to each Employee Plan, for any period before the Closing Date that have not yet been, but will be required to be, made are properly accrued and reflected on the financial statements of Seller.

     (n) Schedule 3.21(n) sets forth a list of all material Foreign Plans and (i) the Company Entities and each of the Foreign Plans are in compliance in all material respects with the provisions of the
Applicable Laws of each jurisdiction in which any of the Foreign Plans are maintained and have obtained from the government or governments having jurisdiction with respect to such plan any required or available determinations that such plans are in
compliance with the Applicable Laws and regulations of any government, (ii) each Foreign Plan has 

50

been administered at all times, in all material respects, in accordance with its terms, in each case, except as would not be material, and (iii) the assets or book reserves of each Foreign Plan that provides retirement, medical or
life insurance benefits following retirement are at least equal to the liabilities of any such Foreign Plan.

     (o) Except as set forth on Schedule 3.13 and except as would not be material, with respect to each Foreign Plan, there are no pending audits or investigations by any Governmental Authority and no
pending or, to the knowledge of Seller, any Company Entity or any ERISA Affiliate, (i) threatened claims (except for individual claims for benefits payable in the normal operation of the Foreign Plans), suits or proceedings asserting any rights or
claims to benefits under any Foreign Plan, or (ii) any facts which could reasonably be expected to give rise to any liability in the event of any such audit, investigation, claim, suit or proceeding.

     (p) Except as would not be material, all contributions to, and payments from, each Foreign Plan (other than payments to be made from a trust, insurance contract or other funding medium) which may have
been required to be made in accordance with the terms of any such Foreign Plan or the Applicable Law of the jurisdiction in which such Foreign Plan is maintained, have been timely made. Except as would not be material, all such contributions to the
Foreign Plans, and all payments under the Foreign Plans, for any period before the Closing Date that have not yet been, but will be required to be, made are properly accrued and reflected on the financial statements of the employer maintaining such
plan.

     Section 3.22. Environmental Matters. Except as to matters which would not, individually or in the aggregate, reasonably be expected to be
material:

     (a) (i) no written notice, order, request for information, complaint or penalty has been received by any Company Entity and (ii) there are no judicial, administrative or other actions, suits or
proceedings pending or threatened, in the case of each of (i) and (ii), which allege a violation of any Environmental Law or liability under Environmental Law and relate to the Company Entities;

     (b) each Company Entity has all environmental permits necessary for its operations to comply with all applicable Environmental Laws and is in compliance with the terms of such permits and with all
applicable Environmental Laws;

     (c) there has been no release or threatened release of any hazardous or toxic material substance or waste, pollutant or contaminant (i) by any Company Entity or (ii) in any property owned or leased by
any Company Entity in violation of Environmental Laws or which requires remediation under applicable Environmental Laws; and

51

     (d) there has been no written environmental audit conducted within the past five years in the possession or control of Seller or any Company Entity of any property owned or leased by any Company
Entity on or prior to the date of this Agreement which has not been delivered to Buyer prior to the date of this Agreement.

     Section 3.23. Finders’ Fees. Except for Goldman, Sachs & Co. and Merrill Lynch & Co. whose fees and expenses will be paid by
Seller, there is no investment banker, broker, finder or other intermediary which has been retained by or is authorized to act on behalf of Seller or the Company Entities who might be entitled to any fee or commission in connection with the
transactions contemplated by this Agreement.

     Section 3.24. Assets Under Management. The Base Assets Under Management and the Aggregate Base Revenue Run-Rate, in each case as of the Base
Date, are as set forth on Schedule A.

ARTICLE 4

REPRESENTATIONS AND WARRANTIES OF BUYER

     Except as set forth in the Buyer Disclosure Schedules, Buyer represents and warrants to Seller that:

     Section 4.01. Corporate Existence and Power. Buyer is a corporation duly incorporated, validly existing and in good standing under the laws
of its jurisdiction of incorporation and has all corporate powers and all material governmental licenses, authorizations, permits, consents and approvals required to carry on its business as now conducted.

     Section 4.02. Authorization. The execution, delivery and performance by Buyer of this Agreement and the consummation of the transactions
contemplated by this Agreement are within the corporate or other organizational powers of Buyer and have been duly authorized by all necessary corporate, stockholder or other organizational action on the part of Buyer. This Agreement constitutes a
valid and binding agreement of Buyer, enforceable against Buyer in accordance with its terms, except to the extent such enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or similar
laws from time to time in effect generally affecting the enforcement of creditors’ rights and remedies and general principles of equity.

     Section 4.03. Governmental Authorization. The execution, delivery and performance by Buyer of this Agreement and the consummation of the
transactions contemplated by this Agreement require no material action or approval by or in respect of, or material filing with, any Governmental Authority 

52

other than (i) compliance with any applicable requirements of the HSR Act and applicable foreign anti-trust, competition law and similar clearances and (ii) any such action, approval or filing as to which the failure to make or
obtain would not reasonably be expected to prevent, enjoin or materially impair Buyer’s ability to consummate the transactions contemplated by this Agreement or perform its obligations under this Agreement.

     Section 4.04. Noncontravention. The execution, delivery and performance by Buyer of this Agreement and the consummation of the transactions
contemplated by this Agreement do not and will not (i) violate the certificate of incorporation or bylaws of Buyer, (ii) assuming compliance with the matters referred to in Section 4.03, violate any Applicable Law, (iii) require any consent or other
action by any Person under, constitute a default under, or give rise to any right of termination, cancellation or acceleration of any right or obligation of Buyer or to a loss of any benefit to which Buyer is entitled under any provision of any
agreement or other instrument binding upon Buyer or (iv) result in the creation or imposition of any material Lien on any asset of Buyer, except, in the case of clauses (ii) through (iv), for any of the foregoing as would not prevent or materially
impair Buyer’s ability to consummate the transactions contemplated hereby or Buyer’s performance of its obligations hereunder.

     Section 4.05. Financing. Buyer has, and will have prior to the Closing, sufficient cash, available lines of credit or other sources of
immediately available funds to enable it to make payment at Closing of the Aggregate Purchase Price and any other amounts to be paid by it hereunder.

     Section 4.06. Purchase for Investment. Buyer is purchasing the Class A Shares for investment for its own account and not with a view to, or
for sale in connection with, any distribution thereof. Buyer (either alone or together with its advisors) has sufficient knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risks of its
investment in the Class A Shares and is capable of bearing the economic risks of such investment.

     Section 4.07. Litigation. There is no action, suit, investigation (including any governmental or regulatory investigation or inquiry) or
proceeding pending against, or to the knowledge of Buyer threatened against or affecting, Buyer, its Affiliates or any of their respective properties by or before any arbitrator or any Governmental Authority which in any manner challenges or seeks
to, or would otherwise reasonably be expected to prevent, enjoin or materially impair Buyer’s ability to consummate the transactions contemplated by this Agreement or Buyer’s performance of its obligations under this Agreement.

     Section 4.08. Finders’ Fees. Except for Morgan Stanley whose fees and expenses will be paid by Buyer, there is no investment banker,
broker, finder or 

53

other intermediary that has been retained by or is authorized to act on behalf of Buyer who might be entitled to any fee or commission in connection with the transactions contemplated by this Agreement.

     Section 4.09. Inspections; No Other Representations. Buyer has undertaken such investigation and has been provided with and has evaluated
such documents and information as it has deemed necessary to enable it to make an informed and intelligent decision with respect to the execution, delivery and performance of this Agreement. Buyer agrees to accept the Company Entities in the
condition they are in on the Closing Date based upon its own inspection, examination and determination with respect thereto as to all matters, and without reliance upon any express or implied representations or warranties of any nature made by or on
behalf of or imputed to Seller, except as expressly set forth in this Agreement. Without limiting the generality of the foregoing, Buyer acknowledges that Seller makes no representation or warranty with respect to (i) any projections, estimates or
budgets delivered to or made available to Buyer of future assets under management, future revenues, future results of operations (or any component thereof), future cash flows or future financial condition (or any component thereof) of the Company
Entities or the future business and operations of the Company Entities or (ii) any other information or documents made available to Buyer or its counsel, accountants or advisors with respect to any Company Entity or their respective businesses or
operations, except as expressly set forth in this Agreement.

ARTICLE 5

COVENANTS OF SELLER

     Seller agrees that:

     Section 5.01. Conduct of the Company. From the date of this Agreement until the Closing Date, Seller shall cause the Company Entities to
conduct their businesses in the ordinary course consistent with past practice and to use their reasonable best efforts to (i) preserve intact their business organizations, (ii) maintain satisfactory relationships with their clients, customers,
landlords, suppliers and others with whom they do business and (iii) keep available the services of their present officers and employees. Without limiting the generality of the foregoing, from the date of this Agreement until the Closing Date,
except as disclosed on Schedule 5.01 or as required by Applicable Law or Governmental Authority, Seller will not, without the prior written consent of Buyer not to be unreasonably withheld, permit any Company Entity:

     (a) adopt or propose any change in its certificate of incorporation or bylaws (or other similar organizational documents);

54

     (b) split, combine or reclassify any shares of capital stock of any Company Entity or declare, set aside or pay any dividend or other distribution with respect to, or issue, repurchase, redeem or
acquire, any Company Securities or Subsidiary Securities, other than (i) the declaration or payment of any dividend or other distribution by a Company Entity to another Company Entity, (ii) the declaration or payment of any cash dividend by the
Company in the ordinary course consistent with past practices, (iii) the issuance of any Class B Shares upon the exercise of Company Options that are outstanding on the date of this Agreement, (iv) the repurchase or redemption of Class B Shares and
Company Options pursuant to the terms of the Equity Partnership Plan, or (v) the issuance of Class B Shares and Company Options in connection with the Company’s annual compensation awards consistent with past practice;

     (c) merge or consolidate with any other Person or acquire an amount of assets from any other Person in a single transaction or series of related transactions having a value in excess of
$20,000,000 except pursuant to existing contracts or commitments;

     (d) sell, lease, license, assign or otherwise dispose of any assets or property to any other Person in a single transaction or series of related transactions having a value in excess of
$10,000,000 except pursuant to existing contracts or commitments;

     (e) sell, lease, license, assign or otherwise dispose of any Intellectual Property Rights owned by any Company Entity in a single transaction or a series of related transactions having a value in
excess of $5,000,000;

     (f) create, incur, assume, guarantee or otherwise be liable with respect to any indebtedness for borrowed money in excess of $20,000,000 in any single transaction or series of related
transactions;

     (g) enter into any contract, agreement, transaction or understanding requiring payment from a Company Entity in excess of $5,000,000 individually which is not terminable within 90 days without
penalty;

     (h) make any loan, advance or capital contributions to or investment in any Person other than loans, advances or capital contributions to or investments made in the ordinary course of
business;

     (i) except as required by an existing Employee Plan or agreement, (i) make or agree to make any material increase in compensation or benefits payable in the aggregate to officers and investment
professionals of the Company Entities, (ii) grant or agree to grant any material severance or termination pay or enter into any agreement to make or grant any material severance or termination pay or pay any material bonus to any officer or
investment professional of a Company Entity,

55

(iii) grant or agree to grant or accelerate the time of vesting or payment of any awards under an Employee Plan or (iv) establish, adopt, amend, modify or terminate any Employee Plan, in each case of clauses (i) through (iv) other
than in the ordinary course of business consistent with past practice;

     (j) settle, or offer or propose to settle, any litigation, investigation, arbitration, proceeding or other claim involving or against any Company Entity that (i) involves non-monetary relief that
would restrict the operations of the Company Entities after the Closing in any material manner or (ii) requires the Company Entities to pay amounts after the Closing in excess of $20,000,000;

     (k) make any material changes in any method of accounting or accounting principles or practice, except for any such change required by reason of a change in GAAP;

     (l) other than in the ordinary course of business consistent with past practice, make, change or reverse any material Tax election, settle or compromise any material Tax liability of any Company
Entity or Sponsored Fund or enter into any closing agreement with respect to any material Tax; or

     (m) agree or commit to do any of the foregoing.

     Section 5.02. Access to Information and Cooperation. (a) From the date of this Agreement until the Closing Date, Seller will (i) give, and
will cause the Company Entities to give, Buyer, its counsel, financial advisors, auditors and other authorized representatives reasonable access to the offices, properties, books and records of the Company Entities and to the books and records of
Seller relating to the Company Entities, (ii) furnish, and will cause the Company Entities to furnish, to Buyer, its counsel, financial advisors, auditors and other authorized representatives such financial and operating data and other information
relating to the Company Entities as such Persons may reasonably request and (iii) instruct the employees of the Company Entities to cooperate with Buyer in its investigation of the Company Entities. Any investigation pursuant to this Section shall
be conducted in such manner as not to interfere unreasonably with the conduct of the business of Seller or the Company Entities. Notwithstanding the foregoing, (A) Buyer shall not have access to personnel records of the Company Entities relating to
individual performance or evaluation records, medical histories or other information which in Seller’s good faith opinion could subject Seller or any Company Entity to risk of liability and (B) neither Seller nor any Company Entity shall be
obligated to provide access to, or to disclose, any information to Buyer if the Company reasonably determines that such access or disclosure would jeopardize the attorney-client privilege of Seller or any Company Entity, violate any Applicable Law
or contractual confidentiality obligations. All requests for information made pursuant to this Section 5.02 shall be directed to an executive 

56

officer of Seller or such Person as may be designated by Seller’s executive officers.

     (b) Seller shall, and shall cause its controlled Affiliates to, on and after the Closing Date, use reasonable best efforts to afford to Buyer and its Affiliates and their respective counsel, financial
advisors, auditors and other designated representatives (subject to confidentiality commitments to Seller and its Affiliates) reasonable access to their books and records to the extent necessary (i) to permit Buyer to determine any matter relating
to its rights and obligations hereunder or (ii) in connection with any insurance claim, or legal, administrative or other proceeding by any Governmental Authority, arising out of any Company Entity’s business and operations in which Buyer or
any of its Affiliates may from time to time be involved (but in each case only to the extent such books and records are required to be retained under Applicable Law) (other than with respect to disputes between Buyer, on the one hand, and Seller, on
the other hand); provided (i) that any such access by Buyer shall not unreasonably interfere with the conduct of the business of Seller or its Affiliates and (ii) neither Seller nor any of
its controlled Affiliates shall be obligated to provide access to, or to disclose, any information to Buyer if Seller or such Affiliate reasonably determines that such access or disclosure would jeopardize the attorney-client privilege of Seller or
such Affiliate or violate any Applicable Law or contractual confidentiality obligations.

     Section 5.03. Notices of Certain Events. Seller shall promptly notify Buyer of:

     (a) any notice or other communication from any Person alleging that the consent of such Person is or may be required in connection with the transactions contemplated by this Agreement;

     (b) any notice or other communication from any Governmental Authority in connection with the transactions contemplated by this Agreement;

     (c) any actions, suits, claims, investigations or proceedings commenced or, to its knowledge, threatened, relating to Seller or any Company Entity that, if pending or threatened on the date of this
Agreement, would have been required to have been disclosed pursuant to Sections 3.13, 3.14, 3.18, 3.19(c), 3.19(d), 3.19(e), 3.21 and 3.22, as the case may be, or that would reasonably be expected to prohibit or impair the ability of Seller to
consummate the transactions contemplated by this Agreement;

     (d) any inaccuracy of any representation or warranty contained in this Agreement at any time during the term hereof that would reasonably be expected to cause the condition set forth in Section
10.02(b) not to be satisfied; and

57

     (e) any failure of Seller to comply in any material respect with or satisfy any covenant, condition or agreement to be complied with or satisfied by it hereunder;

provided that the delivery of any notice pursuant to this Section 5.03 shall not limit or otherwise affect the remedies available hereunder to Buyer.

     Section 5.04. Non-Compete; Non-Solicitation. (a) As a separate and independent covenant, Seller agrees that, without the consent of
Buyer:

        (i) for a period of three years after the Closing Date, it shall not, and it shall cause its controlled Affiliates not to:

  
          (A) directly or indirectly acquire 20% or more of the equity securities in, or acquire (whether by ownership of voting securities, contract or otherwise) the power to elect a majority of the board of
      directors or other persons performing similar functions of, a Competing Business; provided that nothing herein shall prohibit the direct or indirect acquisition by Seller or any of its
        controlled Affiliates of any interest (whether by ownership of voting securities, contract or otherwise) in a Person having not more than 20% of its revenues (based on its most recent annual financial statements) attributable to a Competing
        Business; provided, further, that in the event of an acquisition contemplated by the immediately preceding proviso during the three
          year period from the Closing Date, (i) Seller shall, within two years of such acquisition, enter into a definitive agreement to divest such Competing Business (or portion thereof such that it no longer constitutes a Competing Business), it being
          understood that if any such definitive agreement is thereafter terminated prior to consummation of the divestiture, Seller shall effect such divestiture as promptly as reasonably practicable, and (ii) the duration of the non-solicitation covenant
          set forth in clause (B) below shall be extended so that it remains in effect for at least one year following such acquisition; or

          (B) solicit any Person who is, as of the Closing Date, employed by any Company Entity to leave the employment of such Company Entity; provided that the use of (1) general, non-targeted employment advertising or (2) an independent search firm that contacts any such Person without direction or advice by Seller or its controlled Affiliates, shall be deemed to be not in violation
      of this Section; and

  

58

        (ii) for a period of five years after the Closing Date, it shall cause Mercer Global Investments, and any other multi-manager asset management business controlled by Seller, not to solicit any
    Specified MHRS DC Client (who remains a client of Mercer HR Services at the time of solicitation and was not a client of Mercer Global Investments as of the Closing Date) for the purpose of becoming a client of Mercer Global Investments’ (or
    any such other business’) defined contribution plan business; provided that, for the avoidance of doubt, the foregoing is intended to prohibit such solicitation only, and shall not
      otherwise be construed as precluding Mercer Global Investments from providing Investment Advisory Services to any such clients or from having its mutual funds included within such clients’ plan platforms.

     “Competing Business” means an asset management business which has in excess of $20 billion of assets under management invested
in publicly traded securities through any combination of the following investment advisory products: (i) retail mutual funds, (ii) institutional separate accounts and (iii) institutional collective funds maintained by a bank or a trust company. For
the avoidance of doubt, a multi-manager or a fund-of-funds business shall not constitute a Competing Business, and any assets under management through multi-manager or fund-of-funds products shall be disregarded in determining whether an asset
management business constitutes a Competing Business.

     “Specified MHRS DC Client” means an institutional defined contribution plan client, a Midmarket Client (as such term is defined in
the DC Plan Services Agreement) or a Taft-Hartley Client (as such term is defined in the DC Plan Services Agreement) of Mercer HR Services which (i) includes Company mutual funds on the list of mutual funds that are made available for investment by
its plan participants and (ii) was a client of Mercer HR Services as of the Closing Date.

     (b) Seller acknowledges that a breach or threatened breach of its obligations under this Section 5.04 would cause Buyer and its Affiliates irreparable injury and that monetary damages would be an
inadequate remedy; therefore Buyer shall have the right to an injunction or other equitable relief in any court of competent jurisdiction enjoining such breach or threatened breach. The existence and exercise of this right shall not preclude any
other rights and remedies Buyer may have at law, in equity or otherwise.

     Section 5.05. Directors and Officers; Other Relationships. At the Closing, Seller shall cause to be delivered to Buyer duly signed
resignations and terminations, as appropriate, effective immediately after the Closing, of (i) unless otherwise requested by Buyer, any directors or officers of the Company Entities who are directors or officers of Seller or its controlled
Affiliates or (ii) any other controlled Affiliates of Seller who serve as a general partner, or in a similar capacity for any Company Entity.

59

     Section 5.06. Arrangements with respect to Transitional Services and Shared Facility. Buyer and Seller shall negotiate in good faith
definitive agreements to be entered into between the Company and Seller (or appropriate Affiliates thereof), effective as of the Closing, with respect to (i) transitional services substantially on the terms set forth on the term sheet attached as
Exhibit B hereto and (ii) the lease assignment and sublease with respect to the leased premises described in Exhibit C hereto, substantially on the terms set forth in the term sheet attached as Exhibit C hereto, and in each case containing such
other terms as Buyer and Seller may mutually agree.

     Section 5.07. Certain Assets. (a) At or around Closing, Seller shall make a written statement to (i) the ERISA investment fiduciary for The
Marsh & McLennan Companies Retirement Plan, The Marsh & McLennan Companies Stock Investment Plan and The Mercer HR Services Retirement Plan and (ii) the plan trustees of the three U.K. tax-qualified defined benefit retirement plans
maintained by Seller for the benefit of its eligible employees employed in the U.K., regarding the positive aspects of the transactions contemplated by this Agreement with respect to the Company Entities and the Company mutual funds that are
available for investment through such plans, and shall recommend to such ERISA investment fiduciary and plan trustees that they view such transactions positively with respect to the Company Entities and such Company mutual funds. Seller shall
provide Buyer with a reasonable opportunity to review and comment on such statement and recommendation. In addition, during the period beginning on the Closing Date and ending on the third anniversary of the Closing Date, Seller shall not take any
position, in its dealings, as the corporate sponsor of such plans, with such ERISA investment fiduciary and plan trustees with respect to the availability of the Company mutual funds for investment through such plans or whether the plan assets that
are managed by the Company in such plans as of the Closing Date should continue to be managed by the Company; provided that, for the avoidance of doubt, Buyer understands and agrees that
Mercer Investment Consulting provides investment advice to the ERISA investment fiduciary and plan trustees in the ordinary course and will not be bound in any way by this provision when providing such advice. Buyer understands that Seller is not
authorized to bind any ERISA investment fiduciaries, the UK trustees or such fiduciaries’ or trustees’ delegates, and in particular that such persons are obligated to carry out their duties consistent with the requirements of ERISA, the
Code and Applicable Law.

     (b) Seller agrees that for the period beginning on the Closing Date and ending on the fifth anniversary of the Closing Date, it shall continue to make money market mutual funds managed by the Company
available for the investment of Seller’s corporate excess cash in connection with Seller’s cash management activities in the ordinary course consistent with past practices.

60

     (c) Without limiting the obligations of Buyer and Seller under Section 7.06, Buyer and Seller shall negotiate in good faith, with a view to entering into prior to Closing, modifications to certain
provisions of the Defined Contribution Plan Services Standards Marketing and Agency Services Agreement dated December 31, 2004 among Putnam Fiduciary Trust Company, Putnam Retail Management Limited Partnership, Mercer Trust Company and Mercer HR
Outsourcing, LLC (the “DC Plan Services Agreement”) relating to administrative matters (e.g., with respect to time
periods for notices and termination, service level details, access provisions, maintenance of records), to incorporate commercially standard and customary terms for such type of agreements entered into by unaffiliated third parties; provided that no such modification shall modify the material commercial terms of the DC Plan Services Agreement (including the fees payable to Mercer HR Services by the Company Entities thereunder as set
forth on Exhibit E thereto, and other economic terms). In addition, Buyer and Seller shall negotiate in good faith further modifications to the DC Plan Services Agreement with a view to establishing a mutually satisfactory long-term and sustainable
relationship between Mercer HR Services and the Company with respect to the matters covered by the DC Plan Services Agreement (it being understood that the parties shall be under no obligation to agree to any such modifications).

     (d) For the period beginning on the Closing Date and ending on the fifth anniversary of the Closing Date, Seller shall cause Mercer Investment Consulting not to initiate a program of systematic
solicitation of the Specified MHRS DC Clients (who remain clients of Mercer HR Services at the time of solicitation and who were not clients of Mercer Investment Consulting as of the Closing Date) with respect to the provision of investment
consulting services for defined contribution plans; provided that, for the avoidance of doubt, the foregoing is intended to prohibit such a program of systematic solicitation only, and shall
not otherwise be construed as precluding Mercer Investment Consulting from providing investment consulting services to any such clients.

     (e) For the period beginning on the Closing Date and ending on December 31, 2009 (or, if Seller and Buyer agree to extend the DC Plan Services Agreement on mutually satisfactory customary and market
terms, ending on the fifth anniversary of the Closing Date), in recognition of the shared interest that the parties have in the ongoing success of Mercer HR Services’ defined contribution plan business and in retaining Company mutual funds on
the defined contribution plan platforms of the Company’s clients, Seller shall cause Mercer HR Services not to recommend, without reasonable cause, that any Specified MHRS DC Client remove Company mutual funds from such client’s defined
contribution plan platform (and any such recommendation shall be made after consultation on a case by case basis with the Company regarding the reasons for such recommendation).

61

     (f) For the period beginning on the Closing Date and ending on December 31, 2009, Buyer shall cause the Company Entities to exclusively refer potential defined contribution plan clients with 100 or
more eligible participants to Mercer HR Services as the Company’s preferred provider of recordkeeping, trust and custody and other administrative services, to the extent consistent with the needs of such clients and past practices.

     (g) Seller shall, from the date of this Agreement until the Closing Date (and for a reasonable transition period after the Closing Date), cooperate in good faith with Buyer in its efforts to develop
and maintain a strong relationship with Nissay Asset Management Corporation with a view towards the continued success of the existing business alliance between the Company and Nissay Asset Management Corporation.

     Section 5.08. Insurance. The parties hereby agree that the Company Entities shall have the right to assert claims for any damages, losses,
expenses or liabilities of the Company Entities under insurance policies maintained by Seller with third-party insurers (under which the Company Entities are listed “additional insureds”) arising out of insured incidents to the extent
occurring (and, as applicable, with respect to which claims are made) from the date coverage thereunder first commenced until the Closing Date to the extent that the terms and conditions of any such policies so allow; provided that (i) Seller shall administer and control such claims generally in a manner consistent with past practices, (ii) Seller may, at any time, without liability or obligation to Buyer, amend,
commute, terminate, buy-out or otherwise modify such policies as part of a general amendment, commutation, termination, buy-out or modification not directed at the Company Entities and (iii) such claims shall be subject to any applicable
deductibles, retentions, self-insurance provisions or any payment or reimbursement obligations in respect thereof, and the exhaustion of existing aggregate limits.

ARTICLE 6

COVENANTS OF BUYER

     Buyer agrees that:

     Section 6.01.
Confidentiality. Prior to the Closing Date
and after any termination of this Agreement, Buyer and its Affiliates will hold
in  confidence, pursuant and subject to the terms of the letter agreement dated
as of September 30, 2006, between Buyer and Seller, on behalf of the Company
(the “Confidentiality
Agreement”), all “Evaluation Material” (as
defined in the Confidentiality Agreement), including, to the extent constituting “Evaluation
Material”, all documents and information concerning Seller and its Affiliates,
 including the Company Entities (including documents and information relating
to

62

clients, prospective clients, distributors and strategic business partners) furnished to, or prepared by, Buyer, its Affiliates or any of their respective officers, directors, employees, accountants, counsel, consultants, advisors
and agents and other representatives in connection with the transactions contemplated by this Agreement.

     Section 6.02. Access and Cooperation. (a) Buyer shall, and shall cause its controlled Affiliates and each Company Entity to, on and after
the Closing Date, to use reasonable best efforts to afford to Seller and its Affiliates and their respective counsel, financial advisors, auditors and other designated representatives (subject to confidentiality commitments to Buyer and its
Affiliates) reasonable access to their books and records to the extent necessary (i) to permit Seller to determine any matter relating to its rights and obligations hereunder, (ii) in connection with any other insurance claim, or legal,
administrative or other proceeding, arising out of any Company Entity’s business and operations in which Seller or any of its Affiliates may from time to time be involved (but in each case only to the extent such books and records are required
to be retained under Applicable Law) (other than with respect to proceedings involving disputes between Buyer, on the one hand, and Seller, on the other hand) or (iii) in connection with the preparation of any reports filed or furnished by Seller
pursuant to the 1934 Act, including any financial statements or schedules included or incorporated by reference therein; provided that any such access by Seller shall not unreasonably
interfere with the conduct of the business of Buyer or the Company Entities.

     (b) Buyer shall cause each Company Entity, on and after the Closing Date, to afford promptly to Seller and its Affiliates and their respective counsel, financial advisors, auditors and other
designated representatives reasonable access to and/or copies of (or, if necessary, originals of) their books, records, employees and auditors to the extent reasonably requested in connection with the Retained Matters; provided that any such access by Seller shall not unnecessarily interfere with the conduct of the business of Buyer or the Company Entities.

     (c) From and after the Closing Date, Buyer shall cause each Company Entity to make available to Seller and its Affiliates and their respective counsel, financial advisors, auditors and other
designated representatives, upon request, the officers and employees of the Company Entities as witnesses, and shall otherwise cooperate with Seller and its Affiliates, and furnish or cause to be furnished such records, information and testimony,
and attend such conferences, discovery proceedings, preparation sessions, hearings, trials or appeals, in each case to the extent required in connection with the Retained Matters; provided
that any such cooperation by Buyer shall not unnecessarily interfere with the conduct of the business of Buyer or the Company Entities. Without limiting the generality of the foregoing, it is understood that Buyer will cause the Company Entities to
execute all complaints and other court or similar papers reasonably requested in order to 

63

assist Seller and its Affiliates in connection with the Retained Matters. Prior to the Closing Date, Buyer and Seller shall enter into (or cause to be put in place) reasonable arrangements designed to ensure that the employees of
the Company Entities whose cooperation is required in connection with the Retained Matters, including those listed on Schedule 6.02(c), are available to Seller and its Affiliates for purposes of providing the cooperation and assistance to Seller and
its Affiliates as contemplated by this Section 6.02(c) (provided that such cooperation and assistance shall not interfere with such employees’ performance of their duties at the Company Entities beyond what Seller reasonably believes necessary
or appropriate in connection with the Retained Matters), both during their employment with the Company Entities and after any termination of employment (including incorporating in the terms of any separation agreement or other arrangements entered
into in connection with any such termination of employment of any such employee appropriate terms specifically designed to require such terminated employee’s continued cooperation with Seller and its Affiliates after such
termination).

     (d) From and after the Closing Date, (i) Buyer shall, and shall cause the Company Entities to, retain all information and records relating to the Retained Matters until final resolution of the matters
to which such information and records relate and (ii) prior to destroying or disposing of any such information or records, or other information in the possession of the Company Entities as of the Closing Date that relate to any action, suit,
investigation or proceeding or any governmental or regulatory investigation or inquiry (in each case whether pending or threatened) relating to Seller or its Affiliates, (i) Buyer shall provide not less than 30 days’ prior written notice to
Seller, specifying the information and records proposed to be destroyed or disposed of, and (ii) if Seller shall request in writing prior to the scheduled date for such destruction or disposal that any of the information and records proposed to be
destroyed or disposed of be delivered to Seller, Buyer shall promptly arrange for the delivery of such of the information and records as was requested.

     (e) Seller shall bear all reasonable out-of-pocket costs and expenses of the Company Entities (excluding general overhead and employee benefits), upon presentation of invoices therefor, which are
reasonably incurred by them in connection with the provision of information, witnesses or cooperation pursuant to clauses (b) through (d) above.

     Section 6.03. Director and Officer Liability. Buyer shall, and shall cause the Company to, do the following:

     (a) For six years after the Closing, the Company shall indemnify and hold harmless the present and former officers and directors (or equivalent members of the governing body of the Company) of the
Company and such other employees of the Company who are covered by the indemnification provisions of 

64

the organizational documents of the Company or any of its Subsidiaries, or under any Applicable Law, immediately prior to the date of this Agreement (each a “D&O Indemnified
Person”) in respect of acts or omissions occurring at or prior to the Closing to the fullest extent permitted by Applicable Law or provided under the Company’s organizational documents in effect on the date of
this Agreement.

     (b) For six years after the Closing, the Company shall provide officers’ and directors’ liability insurance in respect of acts or omissions occurring prior to the Closing covering each
D&O Indemnified Person covered as of the date of this Agreement by the Company’s officers’ and directors’ liability insurance policy on terms with respect to coverage and amount which, in all material respects, shall not be less
favorable than those of such policy in effect on the date of this Agreement; provided that if Buyer instead elects to acquire a six-year “tail” prepaid policy (on terms with
respect to coverage and amount which, in all material respects, shall not be less favorable than those in effect on the date of this Agreement) at Closing, Buyer shall not be required to expend more than $7,000,000 for such policy;
provided, further, that if the cost of such “tail” policy exceeds such amount, Buyer shall acquire a policy with the
greatest coverage available for a cost not exceeding that amount. Notwithstanding the foregoing, the parties hereto agree that the insurance coverage that would otherwise be required to be provided pursuant to this Section may be reduced, after the
Closing, with the prior written approval of Persons representing a majority of the directors of the Company immediately prior to the Closing who are still serving at such time.

     (c) If Buyer, the Company or any of their respective successors or assigns (i) consolidates with or merges into any other Person and shall not be the continuing or the surviving corporation or entity
of such consolidation or merger, or (ii) transfers or conveys all or substantially all of its properties and assets to any person, then, and in each such case, to the extent necessary, proper provision shall be made so that the successors and
assigns of Buyer or the Company, as the case may be, shall assume the obligations set forth in this Section.

     (d) Subject to Applicable Law, the rights of each D&O Indemnified Person under this Section shall be in addition to any rights, including indemnification rights and rights to advancement of
expenses, such person may have under, and all limitations of liability existing in favor of the D&O Indemnified Persons as provided in, the organizational documents of the Company or any of its Subsidiaries, or under any Applicable Law or under
any agreement of any D&O Indemnified Person with the Company or any of its Subsidiaries. The rights in this Section shall survive the Closing in full force and effect thereafter, without any amendment thereto which is adverse in any material
respect to such D&O Indemnified Person, and are intended to benefit, and shall be enforceable by, each D&O Indemnified Person. The obligations of Buyer or the Company under this Section shall not be terminated or modified in such a manner

65

as to materially adversely affect the rights of any D&O Indemnified Person under this Section without the consent of such affected D&O Indemnified Person. Buyer shall cause the Company to perform all of the obligations of
the Company under this Section.

     Section 6.04. Section 15(f) of the Investment Company Act. (a) Buyer acknowledges that Seller has entered into this Agreement in reliance
upon the benefits and protections provided by Section 15(f) of the Investment Company Act. Buyer shall not take, and shall use reasonable best efforts to cause its Affiliates not to take, any action that would have the effect, directly or
indirectly, of causing the requirements of any of the provisions of Section 15(f) of the Investment Company Act not to be met in respect of the transactions contemplated by this Agreement, and shall not fail to take, and, after the Closing, shall
use reasonable best efforts to cause its Affiliates not to fail to take, any action if the failure to take such action would have the effect, directly or indirectly, of causing the requirements of any of the provisions of Section 15(f) of the
Investment Company Act not to be met in respect of the transactions contemplated by this Agreement. In that regard, Buyer shall conduct its business and shall, subject to applicable fiduciary duties in relation to any Public Fund, use its reasonable
best efforts to cause each of its respective Affiliates to conduct its business so as to assure that:

        (i) for a period of not less than three years after the Closing, at least 75% of the members of the boards of directors or trustees of each U.S. Public Fund are not (A) “interested persons”
    (within the meaning of Section 15(f) of the Investment Company Act) of the investment adviser of such U.S. Public Fund after the Closing or (B) “interested persons” (within the meaning of Section 15(f) of the Investment Company Act) of the
    investment adviser of such U.S. Public Fund immediately prior to the Closing; and

        (ii) for a period of not less than two years after the Closing, there shall not be imposed on any U.S. Public Fund an “unfair burden” (for purposes of Section 15(f) of the Investment Company
    Act) as a result of the transactions contemplated by this Agreement, or any terms, conditions or understandings applicable thereto.

     (b) For a period of three years from the Closing, Buyer shall not engage, and shall use reasonable best efforts to cause its Affiliates not to engage, in any transaction that would constitute an
“assignment” (as defined in the Investment Company Act) to a third party of any Investment Advisory Agreement between Buyer or any of its Affiliates and any U.S. Public Fund managed or advised by any Company Entity as of the date of this
Agreement, without first obtaining a covenant in all material respects the same as that contained in this Section. Notwithstanding anything to the contrary contained herein, the covenants of the 

66

parties hereto contained in this Section are intended only for the benefit of such parties and for no other Person.

     Section 6.05. Notices of Certain Events. Buyer shall promptly notify Seller of:

     (a) any notice or other communication from any Person alleging that the consent of such Person is or may be required in connection with the transactions contemplated by this Agreement;

     (b) any notice or other communication from any Governmental Authority in connection with the transactions contemplated by this Agreement;

     (c) any actions, suits, claims, investigations or proceedings commenced or, to its knowledge, threatened, relating to Buyer or any of its Subsidiaries that, if pending or threatened on the date of
this Agreement, would have been required to have been disclosed pursuant to Section 4.07 or that would reasonably be expected to prohibit or materially impair the ability of Buyer to consummate the transactions contemplated by this
Agreement;

     (d) any inaccuracy of any representation or warranty contained in this Agreement at any time during the term hereof that would reasonably be expected to cause the condition set forth in Section
10.03(b) not to be satisfied;

     (e) any failure of Buyer to comply in any material respect with or satisfy any covenant, condition or agreement to be complied with or satisfied by it hereunder; and

     (f) to the extent reasonably required for Seller’s Tax purposes, any payments that are made pursuant to the Designated Plans, including the dates of such payments, the names of the recipients and
the amounts that are paid;

provided that the delivery of any notice pursuant to this Section 6.05 shall not limit or otherwise affect the remedies available hereunder to Seller.

ARTICLE 7

COVENANTS OF BUYER AND SELLER

     Buyer and Seller agree that:

     Section 7.01. Reasonable Best Efforts; Further Assurances. Subject to the terms and conditions of this Agreement, Buyer and Seller will use
their reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary or desirable under Applicable Law or otherwise to

67

consummate the transactions contemplated by this Agreement. Seller and Buyer agree, and Seller, prior to the Closing, and Buyer, after the Closing, agree to cause the Company Entities, to execute and deliver such other documents,
certificates, agreements and other writings and to take such other actions as may be necessary or desirable in order to consummate or implement expeditiously the transactions contemplated by this Agreement.

     Section 7.02. Certain Filings and Actions. (a) Seller and Buyer shall cooperate with one another (i) in determining whether any action by or
in respect of, or filing with, any Governmental Authority is required, or any actions, consents, approvals or waivers are required to be obtained from parties to any material contracts, in connection with the consummation of the transactions
contemplated by this Agreement and (ii) in taking such actions or making any such filings, furnishing information required in connection therewith and seeking timely to obtain any such actions, consents, approvals or waivers.

     (b) In furtherance and not in limitation of the foregoing, each of Buyer and Seller shall (i) make an appropriate filing of a Notification and Report Form pursuant to the HSR Act with respect to the
transactions contemplated by this Agreement as promptly as practicable and in any event within ten Business Days of the date of this Agreement and to supply as promptly as practicable any additional information and documentary material that may be
requested pursuant to the HSR Act and to take all other actions necessary to cause the expiration or termination of the applicable waiting periods under the HSR Act as soon as practicable, and (ii) furnish the other party hereto with copies of all
documents (except documents or portions thereof for which confidential treatment has been requested or given) and correspondence (A) prepared by or on behalf of such party for submission to any Governmental Authority and (B) received by or on behalf
of such party from any Governmental Authority, in each case in connection with the transactions contemplated hereby and (iii) use its reasonable best efforts to consult with and keep the other parties hereto informed as to the status of such
matters. To the extent that any application, notice, registration or request so filed by any party contains any significant information relating to the other party hereto or the Company Entities, prior to submitting such application, notice,
registration or request to any Governmental Authority, such party will permit the other parties to review such information and will consider in good faith the suggestions of such other parties with respect thereto.

     Section 7.03. Public Announcements. The parties agree to consult with each other before issuing any press release or making any public
statement with respect to this Agreement or the transactions contemplated by this Agreement and, except for any press releases and public announcements the making of which may be required by Applicable Law or any listing agreement with any national
securities exchange or stock exchange, will not issue any such press release or make any such public statement without the prior consent of the other party (for 

68

the avoidance of doubt, it is understood and agreed that the provisions of this Section 7.03 do not prohibit Buyer, Seller or any of their respective Affiliates from discussing this Agreement or the transactions contemplated by
this Agreement with, among others, their customers (including prospective customers), plan sponsors or brokers; provided that (i) such discussions do involve a press release or constitute a
public statement and (ii) in the case of any such discussion by Buyer or any of its Affiliates, the provisions of Section 6.01 shall apply).

     Section 7.04. Client and Other Consents. (a) Public Funds. Subject in each case
to the requirements of Applicable Law and the fiduciary duties of the Company Entities and each Public Fund Board,

        (i) With respect to each U.S. Public Fund and the U.S. Public Fund Board thereof, Seller shall use its reasonable best efforts, or cause the Company Entities to use their reasonable best efforts, (A)
    to request, as promptly as practical following the date of this Agreement, such U.S. Public Fund Board to approve (and to recommend that the shareholders of such U.S. Public Fund approve) a new Investment Advisory Agreement with the relevant Company
    Entity, to be effective at the Closing, containing terms, taken as a whole, that are substantially comparable to the terms of the existing Investment Advisory Agreement between such U.S. Public Fund and the relevant Company Entity; (B) to request,
    as promptly as practical following receipt of the approval and recommendation described in clause (A) above, such U.S. Public Fund Board to call a special meeting of the shareholders of such U.S. Public Fund to be held as promptly as reasonably
    practical for the purpose of voting upon a proposal to approve (in the requisite manner) such new Investment Advisory Agreement; (C) to prepare and to file (or to cause to be prepared and filed) with the SEC and all other applicable Governmental
    Authorities, as promptly as practical following receipt of the approval and recommendation described in clause (A) above, all registration statements and proxy solicitation materials required to be distributed to the shareholders of such U.S. Public
    Fund with respect to the actions recommended for shareholder approval by such U.S. Public Fund Board and to mail (or to cause to be mailed) such proxy solicitation materials as promptly as practical after clearance thereof by the SEC (if
    applicable); and (D) to submit (or to request such U.S. Public Fund Board to submit), as promptly as practical following the mailing of the proxy materials to the shareholders of such U.S. Public Fund for a vote at a shareholders meeting the
    proposal described in clause (B) above.

        (ii) With respect to each Public Fund other than a U.S. Public Fund, Seller shall use its reasonable best efforts, or shall cause the Company to use its reasonable best efforts, to obtain, in
    accordance with 

69

  
    Applicable Law and as promptly as practical following the date of this Agreement, such approvals, consents or other actions, if any, by the boards of directors or comparable governing bodies, regulating or self-regulating
      authorities or shareholders required by Applicable Law or the arrangements governing such Public Fund so that after the Closing a Company Entity may continue managing such Public Fund on terms, taken as a whole, that are substantially comparable to
    the terms of the existing Investment Advisory Agreement between such Public Fund and the applicable Company Entity.

        (iii) Buyer and Seller agree that (A) a U.S. Public Fund shall be deemed to have consented for all purposes under this Agreement to the continued management of such U.S. Public Fund by a Company
    Entity following the Closing, if a new Investment Advisory Agreement has been approved by the U.S. Public Fund Board and the shareholders of such U.S. Public Fund in the manner contemplated by clauses (i)(A)-(D) of this subsection (a); and (B) a
    Public Fund other than a U.S. Public Fund shall be deemed to have consented for all purposes under this Agreement to the continued management of such Public Fund by a Company Entity following the Closing if the consents and approvals described in
    clause (ii) of this subsection (a) shall have been obtained, unless, for purposes of both clauses (A) and (B), at any time prior to the Closing the respective Public Fund Board notifies any Company Entity, in writing, that such Public Fund has
    terminated its existing, interim or new Investment Advisory Agreement prior to or following the Closing (which termination is recorded as such in the Company’s internal reporting systems in the ordinary course consistent with past practices),
    and such termination has not been revoked (as recorded in the Company’s internal reporting systems in the ordinary course consistent with past practices).

        (iv) Seller agrees that the information that is contained in the proxy materials/prospectus to be furnished to the shareholders of any Public Fund (other than information that is or will be provided
    by or on behalf of Buyer or its Affiliates specifically for inclusion in such proxy materials/prospectus) to the extent shareholder approval is required under Applicable Law or the applicable Investment Advisory Agreement for the purpose of
    providing consent or approving any interim or new Investment Advisory Agreement will not contain, at the time the proxy materials/prospectus are first mailed to the shareholders of any Public Fund or at the time of the meeting thereof, any untrue
    statement of a material fact, or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. Buyer agrees that the information
    provided by it or its Affiliates (or on their behalves) in writing for inclusion in the proxy materials/prospectus to be furnished to the 

  70

  
    shareholders of any Public Fund to the extent shareholder approval is required under Applicable Law or the applicable Investment Advisory Agreement for the purpose of providing consent or approving any interim or new Investment
      Advisory Agreement will not contain, at the time the proxy materials/prospectus are first mailed to the shareholders of any Public Fund or at the time of the meeting thereof, any untrue statement of a material fact, or omit to state any material
      fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. Each of Seller and Buyer shall have the right to review in advance and to approve (such
      approval not to be unreasonably withheld) all the information relating to it and any of its Affiliates proposed to appear in any registration statement or proxy statement or any amendment or supplement thereto submitted to the SEC or such other
    applicable Governmental Authority in connection with the transactions contemplated by this Agreement.

     (b) Private Funds and Non-Fund Clients. (i) If consent or other action is required by Applicable Law or by the Investment Advisory Agreement
of any Client other than a Public Fund for the Investment Advisory Agreement with such Client to continue after Closing, as promptly as practicable following the date of this Agreement, Seller shall, or shall cause the Company or appropriate Company
Entity to, send a notice (“Notice”) complying with Applicable Law and the terms of such Client’s Investment Advisory Agreement informing such Client of the transactions
contemplated by this Agreement and requesting such consent in writing or take other required action.

        (ii) Buyer and Seller agree that any consent required for any Investment Advisory Agreement with a Client (other than a Public Fund) to continue after the Closing shall be deemed given for all
    purposes under this Agreement (A) if written consent is required under Applicable Law or the respective Investment Advisory Agreement, upon receipt of the written consent requested in the Notice prior to the Closing Date or (B) if Consent other than
    written Consent is permitted under Applicable Law and the respective Investment Advisory Agreement, (x) upon receipt of a written consent requested in the Notice prior to the Closing Date or (y) if no such written consent is received, if 45 days
    shall have passed since the sending of written notice (“Negative Consent Notice”) to such Client (which Negative Consent Notice may be included in the Notice) requesting written
      consent as aforesaid and informing such Client: (I) of the intention to complete the transactions contemplated by this Agreement, which will result in a deemed assignment of such Client’s Investment Advisory Agreement; (II) of the applicable
      Company Entity’s intention to continue to provide the advisory services pursuant to the existing Investment Advisory Agreement with such Client after the Closing if such Client does not terminate such agreement prior to the Closing; and (III)
      that the 

71

  
    consent of such Client will be deemed to have been granted if such Client continues to accept such advisory services for a period of at least 45 days after the sending of the Negative Consent Notice without termination;    provided that, in any case under clause (A) or (B), no consent shall be deemed to have been given for any purpose under this Agreement if at any time prior to the Closing such Client
        notifies the Company in writing that such Client has not so consented or has terminated, or given notice of termination of its Investment Advisory Agreement (which is recorded as such in the Company’s internal reporting systems in the ordinary
        course consistent with past practices), and in each case such notice has not been revoked (as recorded in the Company’s internal reporting systems in the ordinary course consistent with past practices).

        (iii) Buyer shall be provided a reasonable opportunity to review and comment on all consent materials to be used by the Company or any Company Entity prior to distribution. The Company shall promptly
    upon their receipt make available to Buyer copies of any and all substantive correspondence between it and Clients or representatives or counsel of such Clients relating to the consent solicitation provided for in this Section 7.04.

        (iv) Seller agrees that the information that is contained in any Notice to be furnished to any Client other than a Public Fund (and other than information that is or will be provided in writing by or
    on behalf of Buyer or its Affiliates specifically for inclusion in such Notice) to the extent consent or other action is required under Applicable Law or the applicable Investment Advisory Agreement for the purpose of having the Investment Advisory
    Agreement continue after Closing will be true, correct and complete in all material respects. Buyer agrees that the information provided by it or its Affiliates (or on their behalves) in writing for inclusion in any Notice to be furnished to any
    Client other than a Public Fund to the extent consent or other action is required under Applicable Law or the applicable Investment Advisory Agreement for the purpose of having the Investment Advisory Agreement continue after Closing will be true,
    correct and complete in all material respects.

     (c) Other Consents. Seller and Buyer shall cooperate with one another (i) in determining if consent or other action of any Person (other than
a Client in its capacity as a Client) is required by any Applicable Law or by any agreement with a Variable Product Party set forth in Schedule 3.16, or any other material agreement that terminates on assignment, for the agreement with such Person
to continue after Closing, and (ii) to the extent such notice, consent or action is determined to be required, as promptly as practicable following the date of this Agreement, Seller shall, or shall cause the Company Entities to, send a Notice
complying with Applicable Law and the terms of such agreement informing such

72

Person of the transactions contemplated by this Agreement and requesting, if required, such Person’s consent in writing or that such Person take such other required action (including appropriate Board action where
applicable).

     (d) In connection with obtaining the client and other consents and other actions required by subsections (a), (b) and (c) of this Section 7.04, at all times prior to the Closing, the Company shall
keep Buyer informed of the status of obtaining such client and other consents and, upon Buyer’s request, make available to Buyer copies of all such executed client or other consents. In addition, prior to entering into a new Investment Advisory
Agreement with any New Client or any new agreement with a Variable Product Party set forth in Schedule 3.16, Seller shall, or shall instruct the Company Entities to, inform each potential New Client or counterparty to such agreement of the
transactions contemplated by this Agreement in a manner reasonably acceptable to Buyer and use its reasonable best efforts to include in the applicable contract a provision disclosing the transactions contemplated by this Agreement and the consent
of the New Client or counterparty thereto (to the extent permitted by Applicable Law).

     Section 7.05. Intercompany Accounts and Arrangements. (a) At Closing, Seller shall settle the net intercompany account between the Company
Entities, on the one hand, and Seller and its Affiliates, on the other hand, as of the Closing (irrespective of the terms of payment of such intercompany accounts) in the manner provided in this Section. Immediately prior to Closing, Seller shall
cause the net intercompany account balance (including amounts relating to intercompany payables and receivables for Taxes) owing from Seller to the Company (which shall be adjusted to (x) add any assets and (y) deduct any liabilities, in each case
as set forth on the consolidated balance sheet of the Company Entities immediately prior to Closing, that relate to the Retained Matters) (as so adjusted, the “Intercompany Account Settlement Amount”), to be cancelled in consideration of the redemption of a number of Class A Shares owned by Seller with an aggregate value (valued at the Per Class A Share Price) equal to the Intercompany Account Settlement Amount.

     (b) Except as set forth on Schedule 7.05(b), all agreements or arrangements between any Company Entity, on the one hand, and Seller or any of its controlled Affiliates, on the other hand, shall be
terminated as of the Closing.

     Section 7.06. Amendment to Defined Contribution Plan Services Agreement. Buyer and Seller hereby agree that, concurrently with Closing,
Seller shall, and shall cause the Company (and applicable Seller Affiliates, if any) to, enter into an amendment to the DC Plan Services Agreement in the form of Exhibit D hereto.

73

ARTICLE 8

TAX MATTERS

     Section 8.01. Tax Covenants. (a) (i) Seller agrees to make a timely, effective and irrevocable election under Section 338(h)(10) of the Code
and under any comparable statutes in any other jurisdiction with respect to the Company Entities that are eligible under Applicable Law to make such an election (other than a Company Entity with respect to which Buyer and Seller mutually agree in
writing after the date hereof not to make a Section 338(h)(10) Election) (the “Section 338(h)(10) Election” and a Company Entity with respect to which a Section 338(h)(10) Election
is to be made, an “Electing Company Entity”), and to file such election in accordance with applicable regulations. No later than 90 days following the Closing Date, Seller shall
deliver to Buyer an Internal Revenue Service Form 8023 (“Form 8023”) with respect to each Electing Company Entity filled out and executed by Seller and any of its Affiliates
required to execute the Form 8023 and in a form reasonably satisfactory to Buyer, along with any equivalent forms required under state or local Tax law requested by Buyer and in a form reasonably satisfactory to Buyer. Buyer shall execute such Forms
8023 and analogous state or local forms and shall promptly deliver such forms to the appropriate Internal Revenue Service Center or state or local taxing authority. Within 30 days after the determination of Closing Stockholders’ Equity, Buyer
shall deliver to Seller a statement (the “Allocation Statement”) allocating the ADSP (as such term is defined in Treasury Regulations Section 1.338 -4) of the assets of the
Electing Company Entities in accordance with the Treasury regulations promulgated under Section 338(h)(10). Seller shall have the right to review the Allocation Statement. If within 45 days after receipt of the Allocation Statement, Seller notifies
Buyer in writing that Seller disagrees with the allocation of one or more items reflected in the Allocation Statement, Buyer and Seller will negotiate in good faith to resolve such dispute. If Buyer and Seller fail to resolve such dispute within 30
days, the Accounting Referee shall determine whether the allocation was correct and, if not correct, shall appropriately revise the Allocation Statement. If Seller does not respond within 45 days, or upon resolution of the disputed items, the
allocation reflected on the Allocation Statement (as such may have been adjusted) shall be the “Price Allocation” and shall be binding on the parties hereto. Seller and Buyer agree
to act in accordance with the Section 338(h)(10) Election and the Price Allocation in the preparation, filing and audit of any Tax return (including the filing of any Internal Revenue Service Form 8883) unless otherwise required by a change in
Applicable Law or a Final Determination.

        (ii) Buyer agrees to make a timely, effective and irrevocable election under Section 338(g) of the Code with respect to the Non-U.S. Corporations, to file such election in accordance with applicable
    regulations and to provide Seller with a notice of each such election 

74

  
    (including a copy of the applicable Form 8023) in accordance with Treasury Regulations Section 1.338 -2(e)(4).

     (b) Except as expressly provided in Section 8.01(a), Buyer covenants that it will not cause or permit any Company Entity or any Affiliate of Buyer (i) to take any action on the Closing Date other than
in the ordinary course of business, including but not limited to the distribution of any dividend or the effectuation of any redemption that could give rise to any Tax liability or reduce any Tax asset of the Seller Group or give rise to any loss of
Seller or the Seller Group under this Agreement, or (ii) to make or change any Tax election, amend any Company Return or take any Tax position on any Company Return, take any action, omit to take any action or enter into any transaction, merger or
restructuring that results in any increased Tax liability or reduction of any Tax asset of Seller (other than any of the foregoing actions taken in the ordinary course in accordance with the past practice of such Company Entity) or the Seller Group
in respect of any Pre-Closing Tax Period.

     (c) Seller shall include the Company Entities in Seller’s consolidated federal Tax return and in any combined state Tax return through the close of business on the Closing Date. All Tax returns
required to be filed after the Closing Date with respect to any Company Entity (excluding Tax returns filed by any Company Entity separately from any member of the Seller Group (other than a Company Entity)) with respect to any taxable period ending
on or before the Closing Date will be prepared by Seller and filed by Seller when due (taking into account applicable extensions). All such Tax returns shall, so far as they relate to a Company Entity, be prepared in accordance with the past
practice and custom of such Company Entity.

     (d) (i) All Tax returns of the Company Entities other than those required to be filed by Seller pursuant to Section 8.01(c) will be filed by Buyer. No later than 60 days prior to the due date for any
Tax return (taking into account applicable extensions) with respect to a Company Entity that (A) relates to a Pre-Closing Tax Period and (B) is required to be filed by Buyer pursuant to this Section 8.01(d) (each such Tax return, a
“Buyer Straddle Return”), Buyer shall provide Seller with a draft of such Buyer Straddle Return. Seller shall provide Buyer with comments, if any, to such Buyer Straddle Return no
later than 30 days following Seller’s receipt of the draft of such Buyer Straddle Return, which comments Buyer shall consider in good faith in connection with the filing of such Buyer Straddle Return. Buyer and Seller shall negotiate in good
faith to resolve any disputed items with respect to such Buyer Straddle Return within 10 days of Buyer’s receipt of Seller’s comments. If Buyer and Seller fail to resolve such dispute within 10 days, the appropriate treatment of such items
shall be determined by the Accounting Referee, and such Buyer Straddle Return shall be filed in accordance with the Accounting Referee’s determination. No later than five Business Days prior to the due date of such Tax return (taking into
account 

75

applicable extensions), Seller shall reimburse Buyer for the portion of the Taxes related to such Tax return that are allocable to the portion of the taxable period ending on the Closing Date, but only to the extent that such
amount was not reflected as a liability on the Closing Balance Sheet. All Buyer Straddle Returns will be filed by Buyer when due in accordance with applicable laws.

        (ii) The date for the delivery of draft Buyer Straddle Returns from Buyer to Seller pursuant to subsection (d)(i) above shall not apply to any Buyer Straddle Return required to be filed within 90 days
    following the Closing Date (taking into account applicable extensions). In the case of such Buyer Straddle Returns, Buyer shall attempt in good faith to provide Seller with a draft of such Tax Return reasonably in advance of the filing deadline, and
    Seller and Buyer shall follow the procedures set forth in subsection (d)(i) mutatis mutandis with respect to resolving any disputes with respect to such Buyer Straddle Returns and
      Seller’s reimbursement of Buyer for Seller’s allocable share of the Taxes. If Buyer and Seller are unable to resolve any such dispute prior to the filing deadline for such Buyer Straddle Return, (A) Buyer shall have the right to timely
      file the Tax Return prepared on such basis as Buyer shall reasonably determine and shall pay the amount of Taxes shown as due thereon, (B) Buyer and Seller shall continue to resolve any such remaining disputes in accordance with the procedures set
      forth in subsection (d)(i) above mutatis mutandis, and (C) Seller shall reimburse Buyer for the portion of the Taxes allocable to the portion of the taxable period ending on the Closing Date
        within five Business Days following the final determination of issues relating to such Buyer Straddle Return to the extent that such amount was not reflected as a liability on the Closing Balance Sheet.

     (e) If Seller notifies Buyer in writing that Seller reasonably believes that a Company Entity is entitled to receive a Tax refund or credit from a Taxing Authority with respect to a Pre-Closing Tax
Period, Seller shall have the right to pursue such refund, at Seller’s expense, and Buyer shall take such actions, as promptly as reasonably practical, as are reasonably necessary to cooperate with Seller in making a claim to such Taxing
Authority for such refund or credit, provided that, to the extent that any position taken on such a refund claim could have an adverse effect on any Company Entity for any taxable period (or
the portion of any taxable period) beginning following the Closing Date, Seller’s right to pursue such refund shall be subject to Buyer’s right to consent to the making of such refund claim, which consent shall not be unreasonably withheld
or delayed. Buyer shall promptly pay or cause to be paid to Seller all refunds of Taxes and interest thereon received by Buyer, any Affiliate of Buyer or any Company Entity attributable to Taxes paid by Seller or any Company Entity (or any
predecessor or Affiliate of Seller) with respect to any Pre-Closing Tax Period. Buyer shall have no obligation to make any payment pursuant to this Section 8.01(e) with respect to any refunds related to a non-income Taxes to the extent that the
amount of such 

76

refund (plus all other refunds of non-income Taxes) is less than the total amount of such refunds taken into account on the Closing Balance Sheet.

     (f) All transfer, documentary, sales, use, stamp, registration and other such Taxes and fees (including any penalties and interest) incurred in connection with transactions contemplated by this
Agreement (including any real property transfer Tax and any similar Tax) shall be borne 50% by Buyer and 50% by Seller and Buyer will, at its own expense, file all necessary Returns and other documentation with respect to all such Taxes and fees,
and, if required by applicable law, Seller will, and will cause its Affiliates to, join in the execution of any such Returns and other documentation.

     Section 8.02. Tax Sharing. Any and all existing Tax sharing agreements between a Company Entity and any Person (including the Tax Sharing
Agreement) shall be terminated as of the Closing Date. After such date, none of Seller, any Affiliate of Seller and any Company Entity shall have any further rights or liabilities thereunder. This Agreement shall be the sole Tax sharing agreement
relating to the Company Entities for all Pre-Closing Tax Periods.

     Section 8.03. Cooperation on Tax Matters. Buyer and Seller agree to furnish or cause to be furnished to each other, upon request, as
promptly as practicable, such information (including access to books and records) and assistance relating to the Company Entities as is reasonably necessary for the filing of any return (including any report required pursuant to Section 6043A of the
Code and all Treasury Regulations promulgated thereunder), for the preparation for any audit, and for the prosecution or defense of any claim, suit or proceeding relating to any proposed adjustment. Buyer and Seller agree to retain or cause to be
retained all books and records pertinent to the Company Entities until the applicable period for assessment under applicable law (giving effect to any and all extensions or waivers) has expired, and to abide by or cause the abidance with all record
retention agreements entered into with any Taxing Authority. Buyer agrees to give Seller reasonable notice prior to transferring, discarding or destroying any such books and records relating to Tax matters and, if Seller so requests, Buyer shall
allow Seller to take possession of such books and records. Buyer and Seller shall cooperate with each other in the conduct of any audit or other proceedings involving the Company for any Tax purposes and each shall execute and deliver such powers of
attorney and other documents as are necessary to carry out the intent of this subsection.

     Section 8.04. Tax Indemnification by Seller. (a) Seller shall indemnify Buyer against and hold it harmless from any (i) Tax of any Company
Entity relating to a Pre-Closing Tax Period (including any income Taxes incurred by a Company Entity solely by reason of the Section 338(h)(10) Election), and (ii) liabilities, costs and expenses (including reasonable expenses of investigation and
attorneys’ fees and expenses) arising out of or incident to the imposition, 

77

assessment or assertion of any such Tax, including those incurred in the contest in good faith in appropriate proceedings relating to the imposition, assessment or assertion of any such Tax, in each case incurred or suffered by
Buyer, any of its Affiliates or, effective upon the Closing, the Company Entities (the sum of (i) and (ii) being referred to as a “Company Tax Loss”); provided that Seller shall have no obligation to make any payment pursuant to this Section 8.04 in respect of any Company Tax Loss with respect to a non-income Tax to the extent that the amount of such
Company Tax Loss (plus all other Company Tax Losses in respect of non-income Taxes) is less than the total amount of Tax liabilities taken into account on the Closing Balance Sheet. In the case of any taxable period ending after the Closing Date,
the Taxes attributable to the Pre-Closing Tax Period shall (i) in the case of real property, personal property and other ad valorem Taxes be determined on a per diem basis, (ii) in the case of other Taxes imposed under the laws of Canada or a
political subdivision thereof or therein, be determined on the assumption that this Agreement had not been entered into, the transactions contemplated by this Agreement (including, for the avoidance of doubt, any transaction occurring by reason of a
Withholding Restructuring Step or a General Restructuring Step) had not occurred and any transaction or event occurring after the completion of any transaction contemplated by this Agreement (including, for the avoidance of doubt, any transaction
occurring by reason of a Withholding Restructuring Step or a General Restructuring Step) had not occurred, and (iii) in the case of other Taxes, be determined on the basis of a closing of the books as of the close of the Closing Date as if the
taxable period ended on the Closing Date.

     (b) If Seller’s indemnification obligation in respect of such Company Tax Loss arises in respect of an adjustment which makes allowable to Buyer, any of its Affiliates or, effective upon the
Closing, any Company Entity any deduction, amortization, exclusion from income or other allowance (a “Tax Benefit”) which would not, but for such adjustment, be allowable, then any
payment by Seller to Buyer in respect of such Company Tax Loss shall be reduced by the amount of any such Tax Benefit actually realized by Buyer, its Affiliates or such Company Entity, as the case may be (net of any Tax detriment incurred with
respect to the receipt of indemnification payments).

     (c) Any payment by Seller pursuant to this Section 8.04 shall be made not later than 15 days after receipt by Seller of written notice from Buyer stating that any Company Tax Loss has been paid by
Buyer, any of its Affiliates or, effective upon the Closing, any Company Entity and the amount thereof and of the indemnity payment requested.

     (d) If Buyer becomes aware of any suit, proceeding, audit, claim or demand for Taxes in respect of which indemnity is, or may reasonably be expected to be, sought pursuant to this Section 8.04 (a
“Tax Proceeding”), Buyer shall notify Seller of such Tax Proceeding within 10 days of receipt of written 

78

notice thereof, or such earlier time that would allow Seller to timely respond to such claim or demand (provided that Buyer’s inadvertent failure to give such notice
on a timely basis shall relieve Seller of its indemnification obligation only to the extent that it is actually prejudiced thereby), and shall give Seller such information with respect thereto as Seller may reasonably request. Seller may, at its own
expense, participate in and, within 10 days following receipt of written notice of such Tax Proceeding, upon notice to Buyer, assume the defense of any such Tax Proceeding. If Seller assumes such defense, Seller shall have the sole discretion as to
the conduct of such defense; provided that (i) Buyer shall have the right (but not the duty) to participate in the defense thereof and to employ counsel, at its own expense, separate from
the counsel employed by Seller and (ii) Seller shall not settle such Tax Proceeding without prior written consent of Buyer, which consent shall not be unreasonably withheld or delayed. Seller shall keep Buyer reasonably informed of the conduct of
any such Tax Proceeding it controls. Whether or not Seller chooses to defend or prosecute any claim, all of the parties hereto shall cooperate in the defense or prosecution thereof.

     (e) Provided that Seller shall have assumed control of the conduct of a Tax Proceeding pursuant to Section 8.04(d), Seller shall not be liable under this Section 8.04 for any Tax the payment of which
was made without Seller’s prior written consent.

     Section 8.05. Tax Treatment of Certain Items. Any amount paid by Seller or Buyer under Section 2.04, Section 2.06, Article 8 or Article 11
will be treated as an adjustment to the Aggregate Purchase Price for Tax purposes. Buyer and Seller agree for income Tax purposes that (i) the income Tax deduction attributable to the Vested Class B Share Closing Payment and the Vested Class B
Option Closing Payment shall be allocable to the taxable year of the Company ending on the Closing Date, (ii) neither Seller nor any of its Affiliates (including with respect to the taxable period ending on the Closing Date, the Company) shall
include in ADSP, nor shall Buyer or any of its Affiliates (including with respect to taxable periods beginning after the Closing Date, the Company) include in AGUB (as such term is defined in Treasury Regulations Section 1.338 -5), any amount in
respect of Buyer’s contribution to a Grantor Trust of the Vested Class B Share Trust Payment, the Unvested Class B Share Trust Payment, the Vested Option Trust Payment or the Unvested Option Trust Payment (or any payments made thereafter to
beneficiaries of any such Grantor Trust) and (iii) any income Tax deduction attributable to the Vested Class B Share Trust Payment, the Unvested Class B Share Trust Payment, the Vested Option Trust Payment and the Unvested Option Trust Payment shall
be allocable to a taxable year of the Company that begins after the Closing Date. None of Buyer, Seller or any of their Affiliates shall take any position for Tax purposes inconsistent with this Section 8.05, unless required by a change in
Applicable Law or a Final Determination to the contrary.

79

     Section 8.06. Certain Canadian Tax Covenants. (a) If no Finance Comfort Letter, CRA Tax Ruling or CRA Comfort Letter is obtained, Buyer
covenants that neither it nor any of its Affiliates will engage in any transaction or permit any transaction within its control to occur after the Closing that would cause the NRT Rules to apply in respect of the Company.

     (b) If a CRA Tax Ruling is obtained, each party covenants that (i) it will fulfill, and will cause any person controlled by it after the Closing to fulfill, all representations or undertakings
provided by it or them to the CRA in connection with the CRA Tax Ruling or contained in the CRA Tax Ruling, and (ii) it will not take any action, omit to take any action or enter into any transaction that could cause the CRA Tax Ruling not to apply
in full.

     (c) If a Finance Comfort Letter, CRA Tax Ruling or CRA Comfort Letter is obtained, each party will file all Tax returns and other information in a manner consistent with such Finance Comfort Letter,
CRA Tax Ruling or CRA Comfort Letter, as the case may be.

     (d) Seller covenants that it will take commercially reasonable efforts to ensure that, from the date hereof until the Closing, (i) the Company will not receive dividends or other income distributions
from Putnam, LLC or any other Company Entity and Putnam, LLC will not redeem, acquire or cancel any of the limited liability company interests in it held by the Company, and (ii) the Company will not directly receive any interest, rent, royalties or
management fees. Any and all obligations under this covenant shall terminate upon receipt of a Finance Comfort Letter or CRA Tax Ruling and Buyer shall have no further rights (including any claim for Damages) with respect to this covenant after such
date.

     (e) Buyer agrees to cause the trustees of the Company to designate any amount payable to Seller or Class B Holders on a redemption of Class A Shares or Class B Shares or In-the-Money Options, as the
case may be, in connection with the transactions contemplated by this Agreement (including, for the avoidance of doubt, any transaction occurring by reason of a General Restructuring Step) as a return of capital and not a distribution of income of
the Company, and otherwise make any permissible designations so that no part of such amounts are treated as income of the Company payable to Seller or Class B Holders for any Canadian Tax purposes.

     Section 8.07. Tax Indemnities. For the avoidance of doubt, Seller’s obligation to indemnify Buyer with respect to Taxes of the Company
Entities shall be governed by this Article 8 (and not Article 11).

80

ARTICLE 9

EMPLOYEE BENEFITS

     Section 9.01. WARN Act. Seller shall retain full responsibility for compliance with the WARN Act, and be solely responsible for furnishing
any required notice of any “plant closing” or “mass layoff,” as applicable, which arise as a result of any facility closings, reductions in work force, terminations or other actions, that the Company Entities may cause or
initiate on or before the Closing Date. At Seller’s reasonable request Buyer will cooperate with Seller as is reasonably necessary to enable Seller to fulfill its responsibilities under this Section 9.01.

ARTICLE 10

CONDITIONS TO CLOSING

     Section 10.01. Conditions to Obligations of Buyer and Seller. The obligations of Buyer and Seller to consummate the Closing are subject to
the satisfaction (or waiver by Buyer and Seller) of the following conditions:

     (a) Any applicable waiting period under the HSR Act relating to the transactions contemplated by this Agreement shall have expired or been terminated.

     (b) No provision of any Applicable Law shall prohibit the consummation of the Closing.

     Section 10.02. Conditions to Obligation of Buyer. The obligation of Buyer to consummate the Closing is subject to the satisfaction (or
waiver by Buyer) of the following further conditions:

     (a) Seller shall have performed in all material respects all of its obligations hereunder required to be performed by it on or prior to the Closing Date;

     (b) The representations and warranties of Seller contained in (i) the second sentence of Section 3.09 shall be true and correct at and as of the Closing Date as if made at and as of such date (except
for representations and warranties that are made as of a specific date, which representations and warranties shall be true at and as of such respective specific date); (ii) Sections 3.01, 3.02, 3.05, 3.06 and 3.23 (without regard to materiality and
Material Adverse Effect qualifiers contained therein) shall be true and correct in all material respects at and as of the Closing Date as if made at and as of such date (except for representations and warranties that are made as of a specific date,
which representations and warranties shall be true in all material respects at and as of such respective 

81

specific date); and (iii) any other Section of this Agreement (without regard to materiality and Material Adverse Effect qualifiers contained therein) shall be true at and as of the Closing Date, as if made at and as of such date
(except for representations and warranties that are made as of a specific date, which representations and warranties shall be true at and as of such respective specific date), with only such exceptions as would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect;

     (c) Buyer shall have received a certificate signed by any executive officer of Seller to the effect that the conditions specified in paragraphs (a) and (b) above have been fulfilled;

     (d) The Estimated Closing Revenue Run-Rate shall be no less than 82.5% of the Aggregate Base Revenue Run-Rate; and

     (e) Buyer shall have received a certification signed by Seller to the effect that Seller is not a “foreign person” as defined in Section 1445 of the Code.

     Section 10.03. Conditions to Obligation of Seller. The obligation of Seller to consummate the Closing is subject to the satisfaction (or
waiver by Seller) of the following further conditions:

     (a) Buyer shall have performed in all material respects all of its obligations hereunder required to be performed by it at or prior to the Closing Date;

     (b) The representations and warranties of Buyer contained in (i) Section 4.02 shall be true and correct at and as of the Closing Date as if made at and as of such date and (ii) any other Section of
this Agreement (without regard to materiality qualifiers contained therein) shall be true in all material respects at and as of the Closing Date, as if made at and as of such date; and

     (c) Seller shall have received a certificate signed by any executive officer of Buyer to the effect that the conditions specified in paragraphs (a) and (b) above have been fulfilled.

ARTICLE 11

SURVIVAL; INDEMNIFICATION

     Section 11.01. Survival. The representations and warranties of the parties hereto contained in this Agreement or in any certificate or other
writing delivered pursuant hereto or in connection herewith shall survive the Closing until the 24 month anniversary of the Closing Date, except that (a) the representations and warranties set forth in Sections 3.01, 3.02, 3.06, 3.23, 4.01, 4.02 and
4.08 shall 

82

survive indefinitely and (b) the representations and warranties set forth in Section 3.15(l), Section 3.15(m) and Section 3.21 shall survive until 60 days after the expiration of the applicable statute of limitations (giving
effect to any extension or waiver thereof). The covenants and agreements of the parties hereto contained in this Agreement or in any certificate or other writing delivered pursuant hereto or in connection herewith shall survive the Closing
indefinitely or for the shorter period explicitly specified therein, except that for such covenants and agreements that survive for such shorter period, breaches thereof shall survive indefinitely or until the latest date permitted by law.
Notwithstanding the preceding sentences, any breach of representation, warranty, covenant or agreement in respect of which indemnity may be sought under this Agreement shall survive the time at which it would otherwise terminate pursuant to the
preceding sentences, if written notice of the inaccuracy or breach thereof giving rise to such right of indemnity (setting forth the basis therefor in reasonable detail) shall have been given to the party against whom such indemnity may be sought
prior to such time.

     Section 11.02. Indemnification. (a) Effective at and after the Closing, Seller hereby indemnifies Buyer, its Affiliates and their respective
officers, directors and employees against and agrees to hold each of them harmless from any and all damages, losses, expenses, liabilities, costs or penalties (including reasonable expenses of investigation and reasonable attorneys’ fees and
expenses in connection with any claim, action, suit, investigation, proceeding or inquiries, whether known or unknown, whether involving a third party claim or a claim solely between the parties hereto and including for the avoidance of doubt any
indemnification or expense reimbursement to any D&O Indemnified Person, and including, but only to the extent expressly provided in Section 11.04(b)(ii), consequential and punitive damages) (collectively, “Damages”) suffered by any of them resulting from, caused by or arising out of (i) any misrepresentation or breach of warranty (other than the representations and warranties set forth in Section 3.18)
(each such misrepresentation and breach of warranty a “Warranty Breach”) made by Seller pursuant to this Agreement, (ii) any breach of covenant or agreement made or to be performed
by Seller pursuant to this Agreement (other than a covenant or agreement set forth in Article 8), or (iii) (A) the matters identified in Schedule C, (B) any claim, action, suit, investigation, proceeding or inquiry arising before or within three
years of the Closing Date, that results from the same specific conduct (i.e., the same particular actions or conduct at the same particular time and involving the same mutual funds)
involving “excessive fees” purportedly violating Section 36(b) of the Investment Company Act that is the subject of the John J. Vaughn et al. v. Putnam Investment Management, LLC et al. matters identified in Schedule C and (C) any claim, action, suit, investigation, proceeding or inquiry arising before December 31, 2008, that results from any alleged
“market timing” activity (including frequent trading and late trading) in trading by any Person in Company mutual funds as that term is used in the Order on Consent, dated November 13, 2003, of the US Securities and Exchange 

83

Commission (In the Matter of Putnam Investment Management, LLC, Administrative Proceeding, File no. 3-11317), and the Administrative Complaint, filed by the Commonwealth of Massachusetts, Office of the Secretary of the
Commonwealth, Securities Division on October 28, 2003 (In the matter of: Putnam Investment Management, Inc, Putnam Investment Management, LLC, et al, Docket No. E-2003-061) to the extent, but only to the extent, occurring prior to the Closing
(collectively the “Retained Matters”); provided that with respect to indemnification by Seller for Warranty Breaches
pursuant to this Section, (x) Seller shall not be liable unless the aggregate amount of Damages with respect to such Warranty Breaches exceeds $19,500,000 and then only to the extent of such excess and (y) Seller’s maximum liability for all
such Warranty Breaches shall not exceed $975,000,000.

     (b) Effective at and after the Closing, Buyer hereby indemnifies Seller, its Affiliates and their respective officers, directors and employees against and agrees to hold each of them harmless from any
and all Damages suffered by any of them resulting from, caused by or arising out of (i) any Warranty Breach by Buyer or (ii) any breach of covenant or agreement made or to be performed by Buyer pursuant to this Agreement; provided that with respect to indemnification by Buyer for Warranty Breaches pursuant to this Section, (x) Buyer shall not be liable unless the aggregate amount of Damages with respect to such Warranty
Breaches exceeds $19,500,000 and then only to the extent of such excess and (y) Buyer’s maximum liability for all such Warranty Breaches shall not exceed $975,000,000.

     Section 11.03. Procedures. (a) The party seeking indemnification under Section 11.02 (the “Indemnified
Party”) agrees to give prompt written notice to the party against whom indemnity is sought (the “Indemnifying Party”) of the assertion of any
claim, or the commencement of any suit, action or proceeding (“Claim”) in respect of which indemnity may be sought under such Section and will provide the Indemnifying Party such
information with respect thereto that the Indemnifying Party may reasonably request. The failure to so notify the Indemnifying Party shall not relieve the Indemnifying Party of its obligations hereunder, except to the extent such failure shall have
materially adversely prejudiced the Indemnifying Party.

     (b) If any claim or demand by an Indemnified Party under this Article 11 relates to a Claim filed or made against an Indemnified Party by a third party (a “Third
Party Claim”), the Indemnifying Party may elect to control and appoint lead counsel for the defense of such Third Party Claim (unless the Third Party Claim seeks an injunction or other equitable relief against the
Indemnified Party) at its expense; provided that if the parties to any Third Party Claim shall include both an Indemnifying Party and an Indemnified Party, and the Indemnified Party shall
have been advised by its outside counsel that there are available different or additional defenses to the Indemnified Party, the 

84

Indemnified Party shall have the right to select separate counsel (consisting of, with respect to any claim or related claims, one law firm and one local counsel) and to participate in the defense of such action on its behalf, at
the expense of the Indemnifying Party. Subject to the foregoing, if the Indemnifying Party elects to compromise or defend such Third Party Claim, it shall within 30 days of the receipt of notice of such Third Party Claim from the Indemnified Party
(or sooner, if the nature of the Claim so requires) notify the Indemnified Party of its intent to do so. If the Indemnifying Party (i) advises such Indemnified Party in writing that the Indemnifying Party will not elect to defend, settle or
compromise such action or claim or (ii) fails to make such an election in writing within 30 days of the receipt of such notice, such Indemnified Party may, at its option, defend, settle or otherwise compromise or pay such Third Party Claim;
provided that any such settlement or compromise shall be permitted hereunder only with the prior written consent of the Indemnifying Party, which consent shall not be unreasonably withheld.
Until the Indemnifying Party makes an election in accordance with this Section 11.03(b) to defend, settle or compromise such action, all of the Indemnified Party’s reasonable costs and expenses arising out of the defense, settlement or
compromise of any such Third Party Claim shall be Damages subject to indemnification hereunder to the extent provided herein.

     (c) If the Indemnifying Party shall assume the control of the defense of any Third Party Claim in accordance with the provisions of this Section 11.03, (i) the Indemnifying Party shall obtain the
prior written consent of the Indemnified Party (which shall not be unreasonably withheld) before entering into any settlement of such Third Party Claim, if the settlement does not release the Indemnified Party from all liabilities and obligations
with respect to such Third Party Claim or the settlement imposes injunctive or other equitable relief against the Indemnified Party or the settlement requires an admission of fault or wrongdoing and (ii) the Indemnified Party shall be entitled to
participate in the defense of such Third Party Claim and to employ separate counsel of its choice for such purpose. The fees and expenses of such separate counsel shall be paid by the Indemnified Party.

     (d) Each party shall cooperate, and cause their respective Affiliates to cooperate, in the defense or prosecution of any Third Party Claim and shall furnish or cause to be furnished such records,
information and testimony, and attend such conferences, discovery proceedings, hearings, trials or appeals, as may be reasonably requested in connection therewith. The party in charge of the defense shall keep the other parties reasonably apprised
at all times as to the status of the defense or any settlement negotiations with respect thereto.

     (e) Each Indemnified Party shall be obligated to use reasonable best efforts to mitigate Damages upon becoming aware of any event which could reasonably be expected to give rise to such Damages. If
such Indemnified Party mitigates its loss after the Indemnifying Party has paid the Indemnified Party 

85

under any indemnification provision of this Agreement in respect of that loss, the Indemnified Party must notify the Indemnifying Party and pay to the Indemnifying Party the extent of the actual value of the benefit to the
Indemnified Party of that mitigation (less the Indemnified Party’s reasonable costs of mitigation) within 10 Business Days after the benefit is received. Each Indemnified Party shall use reasonable best efforts to collect any amounts available
under insurance coverage, or from any other Person alleged to be responsible, for any Damages payable under Section 11.02.

     (f) Retained Matters. Notwithstanding anything herein to the contrary, Seller shall have sole control of the defense of, and appoint all
counsel in connection with, the Retained Matters, and the other provisions of this Section 11.03, other than Section 11.03(a) and Section 11.03(e), shall not apply to such Retained Matters, with respect to which, for the avoidance of doubt, Seller
shall have sole control of the defense, and settlement or compromise thereof; provided that (i) if the settlement does not release the applicable Company Entities named as defendants from
all liabilities and obligations with respect to such Retained Matter or the settlement imposes injunctive or other equitable relief against the Company Entities, Seller shall obtain the prior written consent of Buyer (which shall not be unreasonably
withheld) before entering into any settlement of such Retained Matter (it being understood and agreed that if Buyer does so consent to such settlement, the Indemnified Parties shall not be entitled to seek indemnification for any Damages arising out
of the specific claims which were resolved by the settlement to which Buyer so consented), and (ii) Seller shall keep Buyer reasonably apprised of material developments with respect to the Retained Matters to the extent permitted under the common
interest doctrine. Seller understands and acknowledges that the settlement of a Retained Matter (including any attendant publicity) could be relevant to public perceptions of the Company. Accordingly, in addition to its other obligations under the
proviso to the preceding sentence, Seller agrees that it shall give Buyer reasonable advance notice of any settlement, including the material proposed terms thereof, and shall consult with Buyer in good faith with a view to minimizing, to the extent
practicable, any adverse impact on the reputation of the Company resulting from any such settlement. If Seller proposes to enter into a resolution of the “excessive fee” litigation included in the Retained Matters in a manner that imposes
an economic burden on Buyer or the Company, Seller agrees to obtain the consent of Buyer, not to be unreasonably withheld. Notwithstanding anything herein to the contrary, the parties agree that Seller shall have the sole right to claim and collect
any amounts available under insurance coverage with respect to the Retained Matters, and the sole right to administer, control, settle and resolve such claims for coverage. From and after the Closing Date, Buyer shall cause the Company Entities not
to commute, settle or otherwise diminish the insurance coverage available as of the Closing Date with respect to the Retained Matters, and to cooperate fully with Seller in connection with efforts to claim and collect any 

86

amounts available under such insurance (it being understood that ordinary course submissions of claims by Buyer shall not violate the provisions of this sentence).

     Section 11.04. Calculation of Damages. (a) The amount of any Damages payable under Section 11.02 by the Indemnifying Party shall be net of
any (i) amounts actually recovered by the Indemnified Party under applicable insurance policies (net of any increase in insurance premium incurred with respect to the receipt of indemnification payments) or from any other Person alleged to be
responsible therefor, and (ii) Tax benefit actually received by the Indemnified Party arising from the incurrence or payment of any such Damages (net of any Tax detriment incurred with respect to the receipt of indemnification payments). If the
Indemnified Party receives any amounts under applicable insurance policies, or from any other Person alleged to be responsible for any Damages, subsequent to an indemnification payment by the Indemnifying Party, then such Indemnified Party shall
promptly reimburse the Indemnifying Party for any payment made or expense incurred by such Indemnifying Party in connection with providing such indemnification payment up to the amount actually received by the Indemnified Party, net of any expenses
incurred by such Indemnified Party in collecting such amount.

     (b) The Indemnifying Party shall not be liable under Section 11.02 for any (i) Damages relating to any matter to the extent that there is included in the calculation of Final Stockholders’ Equity
a specific liability or reserve relating to such matter or the payment of which would result in a duplicative payment to the Indemnified Party of amounts recovered as a purchase price adjustment under Section 2.06 or (ii) consequential or punitive
Damages, except to the extent that such Damages have been or may be awarded to a Third Party. Notwithstanding the foregoing, no limitation in the preceding sentence shall prevent or impair the ability of any Indemnified Party to seek to prove that
damages are calculated as a multiple of earnings if the matter giving rise to such claim for Damages would have resulted in a reduction to the recurring earnings upon which the Aggregate Purchase Price was based.

     Section 11.05. Assignment of Claims. If the Indemnified Party receives any payment from an Indemnifying Party in respect of any Damages
pursuant to Section 11.02 and the Indemnified Party could have recovered all or a part of such Damages from a third party (a “Potential Contributor”) based on the underlying Claim
asserted against the Indemnifying Party, the Indemnified Party shall assign such of its rights to proceed against the Potential Contributor as are necessary to permit the Indemnifying Party to recover from the Potential Contributor the amount of
such payment.

     Section 11.06. Exclusivity. Except as specifically set forth in this Agreement, effective as of the Closing Buyer waives and releases any and
all rights and claims (whether absolute or contingent, liquidated or unliquidated, 

87

known or unknown, determined or determinable or otherwise) Buyer may have against Seller, whether in law or in equity, relating to the Company or the Class A Shares or the transactions contemplated by this Agreement. The rights
and claims waived by Buyer include claims for contribution or other rights of recovery arising out of or relating to any environmental matter, claims for breach of contract, breach of representation or warranty, negligent misrepresentation and all
other claims for breach of duty. Except with respect to claims of (i) fraud or (ii) arising out of Section 2.04, 2.05, 2.06 or 5.02, after the Closing, Buyer acknowledges that its exclusive remedy against Seller for any matter or claim arising out
of this Agreement or the transactions contemplated by this Agreement (including any misrepresentation, breach of warranty, covenant or other agreement set forth herein) is set forth and contained in Article 8 and Article 11.

     Section 11.07. General. (a) No right of indemnification hereunder shall be limited by reason of any investigation or audit conducted before
or after the Closing or the knowledge of either party of any breach of a representation, warranty, covenant or agreement by the other party at any time, or the decision of either party to complete the Closing. Notwithstanding anything to the
contrary herein, each party shall have the right, irrespective of any knowledge or investigation of such party, to rely fully, and is relying fully, on the representations, warranties and covenants of the other party contained herein.

     (b) For purposes of calculating Damages hereunder with respect to a breach of a representation and warranty set forth in this Agreement (and not for the purposes of determining whether a breach has
occurred), any limitations set forth in such representation and warranty as to “materiality” or “Material Adverse Effect” shall be disregarded.

     (c) Notwithstanding anything to the contrary set forth herein, the limitations set forth in clauses (x) and (y) of the provisos to Sections 11.02(a) and 11.02(b) shall not apply to any breach of a
representation or warranty set forth in Sections 3.01, 3.02, 3.06, 3.15(l)(ii), 3.23, 4.01, 4.02 and 4.08.

ARTICLE 12

TERMINATION

     Section 12.01. Grounds for Termination. This Agreement may be terminated at any time prior to the Closing:

     (a) by mutual written agreement of Seller and Buyer;

     (b) by either Seller or Buyer if the Closing shall not have been consummated on or before December 31, 2007 (the “Outside Date”);
provided that the right to terminate this Agreement pursuant to this Section shall not be 

88

available to any party whose breach of any provision of this Agreement results in the failure of the Closing to be consummated by the Outside Date;

     (c) by either Seller or Buyer if consummation of the transactions contemplated by this Agreement would violate any nonappealable final order, decree or judgment of any Governmental Authority having
competent jurisdiction;

     (d) by Buyer, if a breach of any representation or warranty or failure to perform any covenant or agreement on the part of Seller set forth in this Agreement shall have occurred that would cause the
condition set forth in Section 10.02(b) not to be satisfied, and such condition is incapable of being satisfied by the end date provided in clause (b) above; or

     (e) by Seller, if a breach of any representation or warranty or failure to perform any covenant or agreement on the part of Buyer set forth in this Agreement shall have occurred that would cause the
condition set forth in Section 10.03(b) not to be satisfied, and such condition is incapable of being satisfied by the end date provided in clause (b) above.

     The party desiring to terminate this Agreement pursuant to clauses (b) through (e) above shall give notice of such termination to the other party.

     Section 12.02. Effect of Termination. If this Agreement is terminated as permitted by Section 12.01, such termination shall be effective as
against all parties hereto and without liability of either party (or any stockholder, director, officer, employee, agent, consultant or representative of such party) to the other party to this Agreement; provided that if such termination shall result from the (i) failure of either party to fulfill a condition to the performance of the obligations of the other party that is within the control of such party
or (ii) failure of either party to this Agreement to perform a covenant or agreement contained in this Agreement, such party shall be fully liable for any and all Damages incurred or suffered by the other party as a result of such failure or breach.
The provisions of this Section 12.02 and Sections 6.01, 13.03, 13.05, 13.06 and 13.07 shall survive any termination hereof pursuant to Section 12.01.

ARTICLE 13

MISCELLANEOUS

     Section 13.01. Notices. All notices, requests and other communications to any party hereunder shall be in writing (including facsimile
transmission) and shall be given,

89

     if to Buyer, to:

  
    Great-West Lifeco Inc.

    100 Osborne Street N.

    Winnipeg, Manitoba

    R3C 3A5

    Attention: President and Chief Executive Officer 

    Facsimile No.: (204) 946-7134

     with a copy to:

  Great-West Lifeco Inc.

    100 Osborne Street N. 

    Winnipeg, Manitoba

    R3C 3A5

    Attention: Vice President, General Counsel and Secretary

    Facsimile No.: (204) 946-4129

     and a copy to:

  
    Dechert LLP

    Cira Centre 

    2929 Arch Street 

    Philadelphia, PA 19104 

    Attention: Christopher G. Karras

    Facsimile No.: (215) 994-2222

     if to Seller, to:

  
    Marsh & McLennan Companies, Inc.

    1166 Avenue of the Americas

    New York, New York 10036

    Attention: Peter J. Beshar

    Facsimile No.: (212) 345-1074

     with a copy to:

  
    Davis Polk & Wardwell

    450 Lexington Avenue

    New York, New York 10017

    Attention: David L. Caplan

    Facsimile No.: (212) 450-3800

or such other address or facsimile number as such party may hereafter specify for the purpose by notice to the other parties hereto. All such notices, requests and other communications shall be deemed received on the date of
receipt by the 

90

recipient thereof if received prior to 5 p.m. in the place of receipt and such day is a Business Day in the place of receipt. Otherwise, any such notice, request or communication shall be deemed not to have been received until the
next succeeding Business Day in the place of receipt.

     Section 13.02. Amendments and Waivers. (a) Any provision of this Agreement may be amended or waived if, but only if, such amendment or
waiver is in writing and is signed, in the case of an amendment, by each party to this Agreement, or in the case of a waiver, by the party against whom the waiver is to be effective.

     (b) No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or
further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.

     Section 13.03. Expenses. Except as otherwise provided herein, all costs and expenses incurred in connection with this Agreement shall be
paid by the party incurring such cost or expense; provided that Buyer and Seller shall each bear and pay 50% of the costs and expenses incurred in connection with any filing or other action
required under the HSR Act pursuant to Section 7.02(b) and equivalent foreign anti-trust regulations and seeking and obtaining the consents of Clients pursuant to Section 7.04, including in connection with the filing, printing and mailing of
notices, proxy solicitation materials and other communications in connection therewith.

     Section 13.04. Successors and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and permitted assigns; provided that no party may assign, delegate or otherwise transfer any of its rights or obligations under this Agreement without the
consent of the other party hereto; provided, further, that Buyer may assign its right to purchase the Class A Shares to a directly
or indirectly wholly-owned Subsidiary of Buyer (it being understood that no such assignment will release Buyer from any of its obligations under this Agreement or in connection with the transactions contemplated hereby, all of which shall remain in
full force and effect with respect to Buyer). Notwithstanding anything in this Agreement to the contrary, all obligations of Seller under this Agreement to cause any of its businesses or Affiliates to take or not take any actions shall be in effect
only for so long as such business or Affiliate is controlled by Seller.

     Section 13.05. Governing Law. This Agreement shall be governed by and construed in accordance with the law of the State of New York, without
regard to the conflicts of law rules of such state.

91

     Section 13.06. Jurisdiction. The parties hereto agree that any suit, action or proceeding seeking to enforce any provision of, or based on
any matter arising out of or in connection with, this Agreement or the transactions contemplated by this Agreement shall be brought in the United States District Court for the Southern District of New York or any New York State court sitting in New
York City, so long as one of such courts shall have subject matter jurisdiction over such suit, action or proceeding, and each of the parties hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate courts
therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or
that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction
of any such court. Without limiting the foregoing, each party agrees that service of process on such party as provided in Section 13.01 shall be deemed effective service of process on such party.

     Section 13.07. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     Section 13.08. Counterparts; Effectiveness; Third Party Beneficiaries.
This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement shall become effective when
each party hereto shall have received a counterpart hereof signed by the other party hereto. Until and unless each party has received a counterpart hereof signed by the other party hereto, this Agreement shall have no effect and no party shall have
any right or obligation hereunder (whether by virtue of any other oral or written agreement or other communication). Except as provided in Section 6.03, no provision of this Agreement is intended to confer any rights, benefits, remedies,
obligations, or liabilities hereunder upon any Person other than the parties hereto and their respective successors and assigns.

     Section 13.09. Entire Agreement. This Agreement (including any certificates delivered hereunder and any Exhibit or Schedule hereto) and the
Confidentiality Agreement constitute the entire agreement between the parties with respect to the subject matter of this Agreement and supersede all prior agreements and understandings, both oral and written, between the parties with respect to the
subject matter of this Agreement.

92

     Section 13.10. Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
or other Governmental Authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated
so long as the economic or legal substance of the transactions contemplated by this Agreement is not affected in any manner materially adverse to any party. Upon such a determination, the parties shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner in order that the transactions contemplated by this Agreement be consummated as originally contemplated to the fullest extent
possible.

     Section 13.11. Disclosure Schedules. Seller has set forth information on the Seller Disclosure Schedule in a section thereof that
corresponds to a section of this Agreement to which it relates. A matter set forth in one section of a Schedule need not be set forth in any other section so long as its relevance to such other section of the Schedule or section of the Agreement is
readily apparent. The parties acknowledge and agree that (i) the Schedules to this Agreement may include certain items and information solely for informational purposes for the convenience of Buyer and (ii) the disclosure by Seller of any matter in
the Schedules shall not be deemed to constitute an acknowledgment by Seller that the matter is required to be disclosed by the terms of this Agreement or that the matter is material.

93

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

  	GREAT-WEST LIFECO INC.
	 	 	 
	By:	/s/ R. L. McFeetors
	 	

	 	Name:	R. L. McFeetors 
	 	Title:	President and CEO 

  

  	By:	/s/ M. T. G. Graye 
	 	

	 	Name:	M. T. G. Graye 
	 	Title:	Vice President, Finance, United States 

  

  

  
    	MARSH & McLENNAN COMPANIES,
        INC.
	 	 	 
	By:	/s/ Michael G. Cherkasky 
	 	

	 	Name:	Michael G. Cherkasky 
	 	Title:	President and CEO

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]