Document:

Form of Exchange Agreement

 Exhibit 10.2 
 EXCHANGE AGREEMENT 
 by and among 
 IMPERIAL CAPITAL GROUP, INC., 
 ICGI HOLDINGS, LLC 
 and 
 IMPERIAL CAPITAL GROUP, LLC 
 Dated as of [—], 2010 

 TABLE OF CONTENTS 
  

							
	 	 	 	  	Page
			
	ARTICLE I	 	DEFINITIONS	  	2
				
	 SECTION
	 	1.1.	  	Definitions	  	2
	 SECTION
	 	1.2.	  	General	  	5
			
	ARTICLE II	 	REPRESENTATION AND WARRANTIES	  	5
				
	 SECTION
	 	2.1.	  	Representations and Warranties of ICG LLC and ICGI	  	5
	 SECTION
	 	2.2.	  	Representations and Warranties of ICG LLC	  	6
	 SECTION
	 	2.3.	  	Representations and Warranties of ICGI Holdings	  	6
			
	ARTICLE III	 	INITIAL PURCHASE AND INITIAL ICG LP CONTRIBUTION AND EXCHANGE	  	6
				
	 SECTION
	 	3.1.	  	Initial Purchase	  	6
	 SECTION
	 	3.2.	  	Effect of the Initial Purchase	  	6
	 SECTION
	 	3.3.	  	Initial ICG LP Contribution and Exchange	  	7
	 SECTION
	 	3.4.	  	Overallotment Purchase	  	7
	 SECTION
	 	3.5.	  	Class B Common Stock	  	7
			
	ARTICLE IV	 	EXCHANGES AND REDEMPTIONS	  	7
				
	 SECTION
	 	4.1.	  	Elective Exchanges	  	7
	 SECTION
	 	4.2.	  	Mandatory Exchanges	  	9
			
	ARTICLE V	 	RELATIONSHIP AMONG THE PARTIES	  	9
				
	 SECTION
	 	5.1.	  	Parity of Holdings Common Units and Shares of Common Stock	  	9
	 SECTION
	 	5.2.	  	ICG LP Further Assurances	  	10
			
	ARTICLE VI	 	MISCELLANEOUS	  	10
				
	 SECTION
	 	6.1.	  	Entire Agreement	  	10
	 SECTION
	 	6.2.	  	Expenses	  	10
	 SECTION
	 	6.3.	  	Notices	  	11
	 SECTION
	 	6.4.	  	Amendment, Modification or Waiver	  	11
	 SECTION
	 	6.5.	  	Successors and Assigns; No Third Party Beneficiaries	  	11
	 SECTION
	 	6.6.	  	Counterparts	  	11
	 SECTION
	 	6.7.	  	Specific Performance	  	11
	 SECTION
	 	6.8.	  	Governing Law	  	12
	 SECTION
	 	6.9.	  	Submission to Jurisdiction; Waivers	  	12
	 SECTION
	 	6.10.	  	Interpretation	  	12
	 SECTION
	 	6.11.	  	Severability	  	12
	 SECTION
	 	6.12.	  	Tax Allocations	  	12

  

 -i- 

 Exhibits to the Exchange Agreement 
  

			
	Exhibit A	  	Tax Receivable Agreement
	Exhibit B	  	Contribution Agreement
	Exhibit C	  	Form of Exchange Request

  

 -ii- 

 EXCHANGE AGREEMENT 
 This EXCHANGE AGREEMENT (this “Agreement”), dated as of [—], 2010, by and
among Imperial Capital Group, Inc., a Delaware corporation (“ICGI”), ICGI Holdings, LLC, a Delaware limited liability company (“ICGI Holdings”) and Imperial Capital Group, LLC, a Delaware limited liability company
(“ICG LLC” and together with ICGI and ICGI Holdings, the “Parties” and each a “Party”). 
 RECITALS 
 WHEREAS, ICGI intends to consummate an initial public
offering (the “IPO”) of shares of its Class A common stock, par value $0.01 per share (the “Common Stock”); 
 WHEREAS, in connection with the IPO, the members of ICG LLC contribute their membership interests in ICG LLC to ICGI Holdings in exchange for ICGI Holdings membership interests pursuant to the terms of a
Contribution Agreement (the “Contributions”), which exchange will constitute a transaction for valuable consideration; 
 WHEREAS, in connection with the IPO, following the Initial Contribution, ICGI Holdings will convert ICG LLC into a Delaware limited partnership (which limited partnership shall be referred to herein as
“ICG LP”), with ICGI Holdings being the initial general partner and Imperial Capital Group Holdings, LLC (“ICGH LLC”) being the initial limited partner, the membership interests in ICG LLC will become limited
partnership interests of ICG LP (“ICG LP Units”) and upon conversion ICG LP will assume all of the obligations of ICG LLC under this Agreement; 
 WHEREAS, ICGI Holdings desires to sell certain of its ICG LP Units to ICGI concurrently with the consummation of the IPO for consideration consisting of: (a) a portion of the net proceeds from the
IPO and (b) the right to future payments pursuant to the Tax Receivable Agreement (as defined below); 
 WHEREAS, ICGI
believes that it is in its best interest to increase its ownership of ICG LP Units over time and agrees to exchange shares of Common Stock with ICGI Holdings for ICG LP Units from time to time when requested by ICGI Holdings; and 
 WHEREAS, ICG LP (as successor to ICG LLC) agrees to effect such transfers of its ICG LP Units and to take such actions as are otherwise
necessary to facilitate the foregoing. 

 NOW, THEREFORE, in consideration of the premises, and of the representations, warranties,
covenants and agreements set forth herein, and intending to be legally bound hereby, the Parties hereby agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 SECTION 1.1. Definitions. As used in this Agreement, the following terms shall have the meanings set forth below (such meanings to be equally applicable to both the singular and plural forms of the
terms defined): 
 “Agreement” has the meaning assigned to such term in the preamble to this Agreement, and
includes any amendments or modifications to this Agreement after the date hereof. 
 “ARCC Imperial” means ARCC
Imperial LLC, a Delaware limited liability company, and its Permitted Transferees. 
 “Change of Control Event”
means the occurrence of any of the following: (a) both Jason W. Reese and Randall E. Wooster shall cease to be the members of the Executive Committee of ICGI Holdings (other than voluntarily or by reason of death or disability); (b) Jason
W. Reese, Randall E. Wooster and their affiliates and heirs shall collectively own less than 50.1% or more of the equity or voting securities of Imperial Capital Group Holdings, LLC; or (c) Jason W. Reese, Randall E. Wooster and their
affiliates and heirs shall collectively own less than 50.1% or more of the equity or voting securities of ICGI Holdings. 
 “Class B Common Stock” has the meaning set forth in Section 3.4. 
 “Common
Stock” has the meaning set forth in the recitals. 
 “Contributions” has the meaning assigned to such
term in the recitals. 
 “Contribution Agreement” means the Contribution Agreement, dated [—] by and among ICGI Holdings and the ICGI Holdings Members party thereto, substantially in the form of Exhibit B hereto, with such changes as may be determined by the parties thereto. 

“Discretionary Exchange Date” has the meaning set forth in Section 4.1(b). 
 “Electing Member” has the meaning set forth in Section 4.1(c)(ii). 
 “Elective Exchange” has the meaning set forth in Section 4.1(a). 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, together with the rules and regulations promulgated
thereunder. 
 “Exchange Request” has the meaning set forth in Section 4.1(c)(ii). 
 “Exchangeable Portion” has the meaning set forth in Section 4.1(b). 
 “Exchanged Shares” has the meaning set forth in Section 4.1(a). 
 “Executive Committee” means the Executive Committee of ICGI Holdings as established pursuant to the ICGI Holdings Limited
Liability Company Agreement. 
  

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 “General Exchange Date” has the meaning assigned to such term in
Section 4.1(b). 
 “Governmental Authority” means any national, local or foreign (including U.S. federal,
state or local) or supranational (including European Union) governmental, judicial, administrative or regulatory (including self-regulatory) agency, commission, department, board, bureau, entity or authority of competent jurisdiction. 
 “Holdings Common Units” has the meaning assigned to the term “Common Units” in the ICGI Holdings Limited
Liability Company Agreement. 
 “ICG LLC” has the meaning assigned to such term in the preamble to this
Agreement. 
 “ICG LP Limited Partnership Agreement” means the Limited Partnership Agreement of ICG LP, as may
be amended from time to time. 
 “ICG LP Units” has the meaning assigned to the term “LP Units” in
the ICG LP Limited Partnership Agreement. 
 “ICGH LLC” has the meaning assigned to such term in the recitals.

 “ICGI Board” means the board of directors of ICGI. 
 “ICGI Holdings Members” has the meaning assigned to the term “Members” in the ICGI Holdings Limited Liability
Company Agreement. 
 “ICGI Holdings Limited Liability Company Agreement” means the Limited Liability Company
Agreement of ICGI Holdings, LLC, dated as of [—], 2010, entered into by and among the signatories thereto, as same may be amended from time to time. 
 “Initial Contribution” has the meaning assigned to such term in the Contribution Agreement. 
 “Initial ICG LP Contribution and Exchange” has the meaning assigned to such term in Section 3.3. 
 “Initial Purchase” has the meaning assigned to such term in Section 3.1. 
 “Investment” means the number of Holdings Common Units received by an ICGI Holdings Member immediately after the
Contributions, as set forth on a schedule to be maintained by ICGI, as such number of Holdings Common Units may be adjusted in accordance with Section 5.1. 
 “IPO” has the meaning assigned to such term in the recitals. 
 “IPO Closing Date” means the date of the closing of the IPO. 
 “IPO Pricing Time”
means the time at which the Pricing Committee of ICGI’s board of directors approves the offering price of the Common Stock to be sold in the IPO. 
  

 -3- 

 “Mandatory Exchange” has the meaning assigned to such term in
Section 4.2. 
 “Party” or “Parties” has the meaning assigned to such term in the
preamble to this Agreement. 
 “Permitted Transferees” means a Permitted Transferee as set forth in the ICGI
Holdings Limited Liability Company Agreement. 
 “Proceeding” means a suit, action or proceeding relating to
this Agreement. 
 “Qualified ICGI Holdings Member” means (i) ARCC Imperial, (ii) ICGH LLC so long as
ICGH LLC has, prior to the execution of this Agreement, duly executed and delivered the Contribution Agreement and the ICGI Holdings Limited Liability Company Agreement and delivered the Spousal Consent, (iii) in the case of an ICGI Holdings
Member (other than ARCC Imperial and ICGH LLC) who, at the time of the execution of this Agreement, is a) unmarried or b) a resident of a state other than California, an ICGI Holdings Member who has duly executed and delivered the Contribution
Agreement and the ICGI Holdings Limited Liability Company Agreement prior to the execution of this Agreement, and (iv) in the case of an ICGI Holdings Member (other than ARCC Imperial and ICGH LLC) who is married and a resident of the State of
California at the time of the execution of this Agreement, an ICGI Holdings Member who has duly executed and delivered the Contribution Agreement and the ICGI Holdings Limited Liability Company Agreement and has delivered the Spousal Consent prior
to the execution of this Agreement. In the event that an ICGI Holdings Member (other than ARCC Imperial and ICGH LLC) is a trust, marital status and state of residence will be deemed to be those of the employee of Imperial Capital, LLC who
originally was granted the ICG LLC securities included in the trust. An ICGI Holdings Member who is not a Qualified ICGI Holdings Member upon execution of this Agreement may become a Qualified ICGI Holdings Member at the sole discretion of the
Executive Committee. 
 “Registration Rights Agreement” has the meaning assigned to such term in
Section 4.1(b). 
 “Registration Statement” means the registration statement on Form S-1 of ICGI under the
Securities Act relating to the Common Stock to be issued in the IPO, as amended or supplemented through the time such registration statement is declared effective by the SEC. 
 “SEC” means the Securities and Exchange Commission. 
 “Securities Act” means the Securities Act of 1933, as amended, together with the rules and regulations promulgated
thereunder. 
 “Secondary Contribution” has the meaning assigned to such term in the Contribution Agreement.

 “Spousal Consent” means the due execution and delivery of the spousal consents in the form attached to each
of the Contribution Agreement and the ICGI Holdings Limited Liability Company Agreement by the spouse of the member of ICG LLC (or in the case of ICGH LLC, the spouses of Jason W. Reese and Randall E. Wooster) in connection with such ICG LLC

  

 -4- 

 
member’s execution and delivery of each of the Contribution Agreement and ICGI Holdings Limited Liability Company Agreement. In the event that an ICG LLC member (other than ARCC Imperial and
ICGH LLC) is a trust, “spouse” for the purposes of delivery of a spousal consent shall mean the spouse of the employee of Imperial Capital, LLC who originally was granted the ICG LLC securities included in the trust. 
 “Tax Benefit Units” has the meaning assigned to such term in the ICGI Holdings Limited Liability Company Agreement.

 “Tax Receivable Agreement” means the Tax Receivable Agreement to be entered into by and between ICGI and
ICGI Holdings, substantially in the form of Exhibit A hereto, with such changes as may be determined by the parties thereto. 
 SECTION 1.2. General. Wherever required by the context of this Agreement, the singular shall include the plural and vice versa, and the masculine gender shall include the feminine and neuter genders and vice versa, and references to
any agreement, document or instrument shall be deemed to refer to such agreement, document or instrument as amended, supplemented or modified from time to time. When used herein: 
 (a) the word “or” is not exclusive; 
 (b) the words “including,” “includes,” “included” and “include” are deemed to be followed by the words “without limitation”; 
 (c) the terms “herein,” “hereof” and “hereunder” and other words of similar import refer to this Agreement as
a whole and not to any particular section, paragraph or subdivision; 
 (d) the word “person” means any individual,
corporation, limited liability company, trust, joint venture, association, company, partnership or other legal entity or a Governmental Authority; and 
 (e) all section, paragraph or clause references not attributed to a particular document shall be references to such parts of this Agreement, and all exhibit, annex and schedule references not attributed
to a particular document shall be references to such exhibits, annexes and schedules to this Agreement. 
 ARTICLE II 

 REPRESENTATION AND WARRANTIES 
 SECTION 2.1. Representations and Warranties of ICG LLC and ICGI. 
 (a) Each
of ICG LLC and ICGI represents that it has the requisite corporate or other power and authority and has taken all corporate or other action necessary in order to execute, deliver and perform this Agreement and to consummate the transactions
contemplated by this Agreement; and 
  

 -5- 

 (b) Each of ICG LLC and ICGI represents that this Agreement has been duly executed and
delivered by it and constitutes a valid and binding agreement of it enforceable in accordance with the terms thereof (assuming the due execution and delivery thereof by the other Parties). 
 SECTION 2.2. Representations and Warranties of ICG LLC. 
 (a) ICG LLC represents that the ICG LP Units to be sold by ICGI Holdings to ICGI pursuant to the Initial Purchase, when sold, will have been duly authorized and will be validly issued and fully paid; and

 (b) ICG LLC represents that the ICG LP Units to be issued to ICGI pursuant to the Initial ICG LP Contribution and Exchange,
when issued and delivered by ICG LP to ICGI against payment of the consideration therefor in the Initial ICG LP Contribution and Exchange, will have been duly authorized and will be validly issued and fully paid. 
 SECTION 2.3. Representations and Warranties of ICGI Holdings. 
 (a) ICGI Holdings represents that it has the requisite corporate or other power and authority and has taken all corporate or other action
necessary in order to execute, deliver and perform this Agreement and to consummate the transactions contemplated by this Agreement; and 
 (b) ICGI Holdings represents that this Agreement has been duly executed and delivered by it and constitutes a valid and binding agreement of it enforceable in accordance with the terms thereof (assuming
the due execution and delivery thereof by the other Parties). 
 (c) ICGI Holdings represents that it has, and at the time of
the Initial Purchase will have, valid title to the ICG LP Units to be sold by ICGI Holdings to ICGI pursuant to the Initial Purchase, free and clear of all security interests, claims, liens, equities or other encumbrances and the legal right and
power, and all authorization and approval required by law, to sell, transfer and deliver such ICG LP Units. 
 ARTICLE III

 INITIAL PURCHASE AND INITIAL ICG LP CONTRIBUTION AND EXCHANGE 
 SECTION 3.1. Initial Purchase. On the IPO Closing Date, ICGI Holdings shall sell [—] ICG LP Units to ICGI (the “Initial Purchase”) for an aggregate consideration consisting of: (a) $[—], such amount to be paid out
of the net proceeds of the IPO, and (b) the right to certain future payments pursuant to the Tax Receivable Agreement in connection with the Initial Purchase. ICGI shall pay the cash consideration set forth in clause (a) above on the IPO
Closing Date by wire transfer of immediately available funds to an account or accounts designated in writing by ICGI Holdings, and ICGI Holdings shall distribute such proceeds only to Qualified ICGI Holdings Members. 
 SECTION 3.2. Effect of the Initial Purchase. On the IPO Closing Date, after giving effect to the Initial Purchase, ICGI, ICGI
Holdings and ICGH LLC shall join in the execution of

  

 -6- 

 
the ICG LP Limited Partnership Agreement, with ICGI being admitted as the sole general partner, with ICGI Holdings resigning as initial general partner and continuing as a limited partner, and
with ICGH LLC withdrawing as the initial limited partner effective upon its contribution of its ICG LP Units to ICGI Holdings in the Secondary Contribution. The books and records of ICG LP shall be updated to reflect the Initial Purchase and the
foregoing transactions. 
 SECTION 3.3. Initial ICG LP Contribution and Exchange. On the first Business Day immediately
following the IPO Closing Date, ICGI shall contribute the remaining portion of the net proceeds of the IPO to ICG LP and ICG LP will issue and distribute to ICGI [—] ICG LP Units (the
“Initial ICG LP Contribution and Exchange”). ICGI shall pay the cash consideration set forth in the immediately preceding sentence by wire transfer of immediately available funds to an account or accounts designated in writing by
ICG LP. Immediately following the Initial ICG LP Contribution and Exchange, the Secondary Contribution shall be effected, after which ICGI and ICGI Holdings shall be the only partners of ICG LP. 
 SECTION 3.4. Overallotment Purchase. ICGI Holdings hereby grants an option to ICGI to purchase up to [—] ICG LP Units (each an “Overallotment Purchase”) for consideration consisting of: (a) $[—] per ICG LP Unit and (b) the right
to certain future payments pursuant to the Tax Receivable Agreement. The option granted hereby will expire 30 days after the date hereof and may be exercised by ICGI, in its sole discretion, in whole or in part from time to time only to the extent
the underwriters in the IPO have exercised their overallotment option in connection with the offering and distribution of the Common Stock in the IPO. ICGI shall pay the cash consideration set forth in clause (a) above not later than seven full
business days after the exercise of an Overallotment Purchase, by wire transfer of immediately available funds to an account or accounts designated in writing by ICGI Holdings. 
 SECTION 3.5. Class B Common Stock. On the IPO Closing Date, as part of the consideration for, and concurrently with the Initial
Purchase, ICG LP shall transfer to ICGI Holdings 100 shares of Class B Common Stock, par value $0.01 per share (the “Class B Common Stock”) of ICGI then held by ICG LP. The shares of Class B Common Stock described in the immediately
preceding sentence represent all of the authorized, issued and outstanding shares of such Class B Common Stock. 
 ARTICLE IV

 EXCHANGES AND REDEMPTIONS 
 SECTION 4.1. Elective Exchanges. 
 (a) Elective Exchanges. Pursuant
to the ICGI Holdings Limited Liability Company Agreement and in accordance with the schedule and the procedures set forth in this Article IV, each Qualified ICGI Holdings Member is entitled to request and ICGI Holdings shall thereafter tender the
exchange with ICGI of the Exchangeable Portion (as defined below) of such Qualified ICGI Holdings Member’s Holdings Common Units for shares of Common Stock (an “Elective Exchange”). Upon tender by a Qualified ICGI Holdings
Member of Holdings Common Units in an amount which is equal to or less than its Exchangeable Portion, ICGI Holdings will exchange

  

 -7- 

 
an equal number of ICG LP Units with ICGI for shares of Common Stock. For each Holdings Common Unit tendered by a Qualified ICGI Holdings Member, ICGI Holdings will exchange one ICG LP Unit with
ICGI for (i) one share of Common Stock and (ii) the right to certain future payments pursuant to the Tax Receivable Agreement in connection with ICGI’s acquisition of such ICG LP Unit. Upon the exchange of ICG LP Units for shares of
Common Stock, ICGI Holdings shall as promptly as possible, but in no event later than two (2) business days from its receipt of such shares of Common Stock, distribute such shares of Common Stock (the “Exchanged Shares”) to the
Qualified ICGI Holdings Member requesting the exchange and cancel the tendered Holdings Common Units (but shall not cancel any Tax Benefit Units of ICGI Holdings). 
 (b) Each Qualified ICGI Holdings Member’s Investment shall become exchangeable in accordance with the following schedule (the “Exchangeable Portion”): (A) in the case of ARCC
Imperial, all or any portion of its Investment on or after the three month anniversary of the IPO Closing Date and (B) in the case of each Qualified ICGI Holdings Member other than ARCC Imperial: (i) 32.5% of such Qualified ICGI Holdings
Member’s Investment (less the percentage of such member’s Investment purchased pursuant to Section 3.1 and Section 3.4) on the fourteen month anniversary of the IPO Closing Date, (ii) 55% of such Qualified ICGI Holdings
Member’s Investment (less the percentage of such member’s Investment previously purchased or exchanged) on the second anniversary of the IPO Closing Date, (iii) 77.5% of such Qualified ICGI Holdings Member’s Investment (less the
percentage of such member’s Investment previously purchased or exchanged) on the third anniversary of the IPO Closing Date and (iv) 100% of such Qualified ICGI Holdings Member’s Investment on the fourth anniversary of the IPO Closing
Date. ICGI shall maintain a schedule which shall set forth the maximum number of ICGI Holdings Common Units which are eligible for exchange by each Qualified ICGI Holdings Member on each anniversary date described in subsections (i) through
(iv) above. In the case of ARCC Imperial, each Elective Exchange shall occur: (A) in the event of an Elective Exchange which occurs on a date which is between the three and fourteen month anniversary of the IPO Closing Date or constitutes
100% of ARCC Imperial’s Investment (less ARCC’s Investment previously purchased or exchanged), at any time and (B) in the case of all other Elective Exchanges by ARCC Imperial, on or about the date that is the eighteen month
anniversary of the IPO Closing Date and on or about such date which occurs every three months thereafter. In the case of each Qualified ICGI Holdings Member other than ARCC Imperial, each Elective Exchange shall occur on or about the date that is
the fourteen month anniversary of the IPO Closing Date, on or about the date that is the eighteen month anniversary of the IPO Closing Date and on or about such date which occurs every three months thereafter (each date described in the preceding
two sentences, a “General Exchange Date”). In addition, if not on or about a General Exchange Date, an Elective Exchange may occur (i) in the event of notification to ICGI Holdings of registration rights under
Section 2.1(d) or Section 2.3 of the registration rights agreement, dated as of the date hereof, between ICGI, ICGH LLC and ICGI Holdings (the “Registration Rights Agreement”), on a date which is within 10 business days of
receipt by ICGI of such notification or (ii) with the prior written consent of the members of the Executive Committee of ICGI Holdings (each date described in (i) and (ii), a “Discretionary Exchange Date”). Qualified ICGI
Holdings Members shall have the right to exchange pursuant to this Section 4.1 for so long as any portion of their Investment remains outstanding. 
  

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 (c) Procedures. 
 (i) Subject to clause (ii) below, each Elective Exchange of ICG LP Units shall be effected in accordance with the ICGI
Holdings Limited Liability Company Agreement. 
 (ii) ICGI Holdings will cause its Operating Agreement to require
that each Qualified ICGI Holdings Member desiring to exchange Holdings Common Units in accordance with Section 4.1(a) hereto (an “Electing Member”) prepare and deliver to ICGI Holdings a written request in the form attached
hereto as Exhibit C signed by such Electing Member (A) stating the number of Holdings Common Units that such Electing Member desires to have exchanged, (B) certifying (1) that such Electing Member is entitled to request the
exchange of the Holdings Common Units specified by such Electing Member and (2) that such Electing Member is the beneficial owner of such Holdings Common Units and (C) stating the General Exchange Date or the Discretionary Exchange Date on
which such Electing Member desires that ICGI Holdings effect the Elective Exchange (each such request, an “Exchange Request”). Upon receipt of a duly executed Exchange Request from an Electing Member, ICGI Holdings shall as promptly
as possible complete the Exchange Request by (A) stating the number of ICG LP Units that ICGI Holdings desires to have exchanged for Common Stock and (B) certifying that ICGI Holdings is the owner of the number of such ICG LP Units and
(C) authorizing the exchange of the ICG LP Units listed in the Exchange Request for an equal number of shares of Common Stock on the specified General Exchange Date or Discretionary Exchange Date. A properly completed Exchange Request must be
delivered to ICGI, both in its capacity as general partner of ICG LP and for itself, not less than 10 days (5 days in the event of a Discretionary Exchange Date) or more than 60 days prior to the General Exchange Date or Discretionary Exchange Date
on which any such Electing Member desires that ICGI Holdings effect the Elective Exchanges in accordance with this Section 4.1. An Exchange Request may be revoked at any time prior to exchange of the applicable ICG LP Units for Common Stock.

 SECTION 4.2. Mandatory Exchanges. Upon the occurrence of a Change of Control Event, all ICG LP Units owned by ICGI
Holdings shall immediately be subject to exchange for shares of Common Stock on a one-to-one basis, and all outstanding shares of Class B Common Stock shall be cancelled (a “Mandatory Exchange”). ICGI Holdings shall then distribute
to its members one share of Common Stock for each of their Holdings Common Units. 
 ARTICLE V 
 RELATIONSHIP AMONG THE PARTIES 
 SECTION 5.1. Parity of Holdings Common Units and Shares of Common Stock. It is the intention of each of ICGI, ICGI Holdings and ICG LP (as successor to ICG LLC) that, unless otherwise determined by
the ICGI Board, including a majority of the independent directors of the ICGI Board, so long as ICGI Holdings owns ICG LP Units, the number of ICG LP Units outstanding shall at all times equal the number of outstanding shares of Common Stock plus
the number of Holdings Common Units outstanding, and each of ICGI, ICGI Holdings and ICG LP (as successor to ICG LLC) agrees to cooperate to effect the intent of this sentence. To this end, if ICGI raises capital for ICG LP by offering shares of
Common Stock to the public for cash or

  

 -9- 

 
issues shares of Common Stock to employees of ICG LP or directors of ICGI pursuant to the terms of any ICGI equity incentive plan, upon receipt of such cash by ICG LP from ICGI and in
consideration for the services of such employees or directors, additional ICG LP Units shall be issued to ICGI by ICG LP. In the event that ICGI shall: (i) subdivide the outstanding shares of Common Stock into a greater number of shares;
(ii) combine the outstanding shares of Common Stock into a smaller number of shares; (iii) pay a dividend or make a distribution on shares of Common Stock in the form of shares of Common Stock; (iv) make a distribution on shares of
Common Stock in shares of its share capital other than Common Stock or (v) issue by reclassification of the outstanding shares of Common Stock any shares of its share capital, then the number of ICG LP Units and Holdings Common Units would be
proportionately adjusted to the extent necessary to preserve the economic rights of ICGI and ICGI Holdings in ICG LP, with such adjustment to be determined in good faith by the ICGI Board in consultation with ICGI Holdings. Similarly, if any shares
of Common Stock are issued subject to restrictions resulting in forfeiture to ICGI or are otherwise redeemed by ICGI, a corresponding number of ICG LP Units shall be surrendered to ICG LP by ICGI for cancellation. Notwithstanding anything to the
contrary contained herein, ICGI, ICGI Holdings and ICG LP shall not take any action which would cause ARCC Imperial to beneficially own in excess of 5% of ICGI or any subsidiary of ICGI. 
 SECTION 5.2. ICG LP Further Assurances. ICG LP (as successor to ICG LLC) agrees to effect transfers of its ICG LP Units and to take
such actions as are otherwise necessary to facilitate the transactions contemplated by this Agreement. 
 ARTICLE VI

 MISCELLANEOUS 
 SECTION 6.1. Entire Agreement. This Agreement, the Contribution Agreement, the Tax Receivable Agreement, the ICGI Holdings Limited Liability Company Agreement and the ICG LP Limited Partnership
Agreement shall constitute the entire agreement among the Parties with respect to the subject matter hereof and shall supersede all previous negotiations, commitments and writings with respect to such subject matter. 
 SECTION 6.2. Expenses. 
 (a) Except as expressly set forth in this Agreement or the side letter, dated the date hereof, between ICGI and ARCC Imperial Corporation, all third party fees, costs and expenses paid or incurred in
connection with the transactions contemplated by this Agreement will be paid by the Party incurring such fees, costs or expenses. 
 (b) With respect to the IPO, ICG LP (as successor to ICG LLC) shall pay all third party costs, fees and expenses relating to the IPO, all of the reimbursable expenses of the underwriters pursuant to the underwriting agreement, and all of
the costs of producing and filing the applicable Registration Statement and printing, mailing and otherwise distributing the prospectus contained in such Registration Statement. 
  

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 (c) Subsequent to the IPO, ICG LP (as successor to ICG LLC) shall reimburse ICGI for all
reasonable third party costs, fees and expenses incurred by ICGI in the ordinary course of business, including all costs associated with all reports and other filings with the SEC. 
 SECTION 6.3. Notices. All notices, consents, waivers and other communications required or permitted by this Agreement shall be in
writing and shall be deemed given to a Party when (a) delivered to the appropriate address by hand or by nationally recognized overnight courier service (costs prepaid); (b) sent by facsimile with confirmation of transmission by the
transmitting equipment; or (c) received or rejected by the addressee, if sent by certified mail, return receipt requested, in each case to the following addresses and facsimile numbers and marked to the attention of the person (by name or
title) designated below (or to such other address, facsimile number or person as a Party may designate by notice to the other Parties): 
 If to ICG LLC, ICG LP, ICGI or ICGI Holdings: 
 2000 Avenue of the Stars

 9th Floor, South Tower 
 Los Angeles, California 90067 
 Attention: Jason Reese 
 Fax: (310) 777-3029 
 SECTION 6.4. Amendment, Modification or Waiver. This Agreement may be amended, modified, waived or supplemented, in whole or in part, only by a written agreement signed by ICGI, ICG LP (as successor to ICG LLC) and ICGI Holdings. No
failure or delay on the part of any Party in the exercise of any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty or agreement herein, nor shall any single or
partial exercise of any such right preclude other or further exercise thereof or of any other right. The waiver by such Parties of any breach of this Agreement shall not be construed as a waiver of any subsequent breach. 
 SECTION 6.5. Successors and Assigns; No Third Party Beneficiaries. 
 (a) This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the Parties and their successors and
permitted assigns, but neither this Agreement nor any of the rights, interests and obligations hereunder shall be assigned or otherwise transferred, in whole or in part, by any Party without the prior written consent of each of the Parties.

 (b) This Agreement is solely for the benefit of the Parties and is not intended to confer upon any other persons any rights
or remedies hereunder. 
 SECTION 6.6. Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the same instrument. 
 SECTION 6.7. Specific
Performance. The Parties acknowledge and agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is

  

 -11- 

 
accordingly agreed that the Parties shall be entitled to an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement and to enforce specifically the terms and
provisions hereof, this being in addition to any other remedy to which they may be entitled by law or equity. 
 SECTION 6.8.
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware (other than the laws regarding choice of laws and conflicts of laws that would apply the substantive laws of any other
jurisdiction) as to all matters, including matters of validity, construction, effect, performance and remedies. 
 SECTION 6.9.
Submission to Jurisdiction; Waivers. With respect to any Proceeding, each Party irrevocably (i) consents and submits to the exclusive jurisdiction of the courts of the State of Delaware and any court of the U.S. located in the State of
Delaware; (ii) waives any objection which such party may have at any time to the laying of venue of any Proceeding brought in any such court, waives any claim that such Proceeding has been brought in an inconvenient forum and further waives the
right to object, with respect to such Proceeding, that such court does not have jurisdiction over such Party; (iii) consents to the service of process at the address set forth for notices in Section 6.3 herein; provided, however, that such
manner of service of process shall not preclude the service of process in any other manner permitted under applicable law; and (iv) waives, to the fullest extent permitted by applicable law, any and all rights to trial by jury in connection
with any Proceeding. 
 SECTION 6.10. Interpretation. The Article and Section headings contained in this Agreement are
solely for the purpose of reference, are not part of the agreement of the Parties and shall not in any way affect the meaning or interpretation of this Agreement. 
 SECTION 6.11. Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any applicable rule of law or public policy, all other conditions
and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such
determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties hereto 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 to the end that transactions contemplated hereby are fulfilled to the extent possible. 
 SECTION 6.12.
Tax Allocations. All items of income, gain, loss, deduction and credit shall be allocated for federal income tax purposes between ICGI Holdings, ICGI and the other members of ICG LP (and its predecessor, ICG LLC) on the basis of the ownership
of ICG LP (and its predecessor, ICG LLC) at the time the particular item is taken into account by ICG LP (and its predecessor, ICG LLC) for federal income tax purposes, except to the extent otherwise required by Section 706(d) of the Code. ICG
LP shall elect to close its books pursuant to Section 706(d) of the Code and the Treasury Regulations thereunder immediately prior to the IPO Closing Date. With respect to any Elective Exchange, items of income, gain, loss, deduction and credit
of ICG LP shall be allocated for federal income tax purposes between ICGI Holdings, ICGI and any other members of ICG LP using any method adopted by ICG LP for such purpose that is permissible under Section 706 of the Code. 
  

 -12- 

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

					
	IMPERIAL CAPITAL GROUP, INC.
		
	By:	 	  

		 	Name:	 	Jason Reese
		 	Title:	 	Chairman and Chief Executive Officer
	
	ICGI HOLDINGS, LLC
		
	By:	 	  

		 	Name:	 	Jason Reese
		 	Title:	 	Member of Executive Committee
	
	IMPERIAL CAPITAL GROUP, LLC
		
	By:	 	  

		 	Name:	 	Jason Reese
		 	Title:	 	Chief Executive Officer

 Signature
Page to Exchange Agreement 

 Exhibit A 
 Tax Receivable Agreement 

 Exhibit B 
 Contribution Agreement 

 Exhibit C 
 Form of Exchange Request 
 SECTION I (To be completed by
Electing Member) 
 Name of Electing Member:
                                        

 Number of Membership Units of ICGI Holdings, LLC to be exchanged:
                                        

 General Exchange Date or Discretionary Exchange Date (circle one and specify date):
                     
 The
undersigned hereby certifies that he, she or it is entitled to request the exchange of the ICGI Holdings, LLC Membership Units listed above and is the beneficial owner of a such ICGI Holdings, LLC Membership Units. 
  

			
	Date:
                                        
	 	  

		 	[Name of Electing Member]

  
  
 SECTION II (To be completed by ICGI Holdings,
LLC) 
 Number of Partnership Units of Imperial Capital Group, L.P. to be exchanged:
                     
 The undersigned
hereby certifies that ICGI Holdings, LLC is the owner of the Partnership Units of Imperial Capital Group, L.P. requested to be exchanged and authorizes the exchange of such Partnership Units of Imperial Capital Group, L.P. for an equal number of
shares of Common Stock of Imperial Capital Group, Inc. 
  

			
	Date:
                                        
	 	  

		 	ICGI HOLDINGS, LLCForm of Tax Receivable Agreement

 Exhibit 10.3 
 TAX RECEIVABLE AGREEMENT 
 by and between 
 IMPERIAL CAPITAL GROUP, INC. 
 and 
 ICGI HOLDINGS, LLC 
 Dated as of [—], 2010 

 TABLE OF CONTENTS 
  

							
	 	 	 	  	Page
			
	ARTICLE I	 	DEFINITIONS	  	- 2 -
				
	 SECTION
	 	1.1.	  	Definitions	  	- 2 -
				
	 SECTION
	 	1.2.	  	General	  	- 6 -
			
	ARTICLE II	 	DETERMINATION OF REALIZED TAX BENEFIT OR REALIZED TAX DETRIMENT	  	- 7 -
				
	 SECTION
	 	2.1.	  	Basis Adjustment Attributable to Original Sale	  	- 7 -
				
	 SECTION
	 	2.2.	  	Original Sale Basis Schedule	  	- 7 -
				
	 SECTION
	 	2.3.	  	Basis Adjustment With Respect to an Exchange	  	- 8 -
				
	 SECTION
	 	2.4.	  	Exchange Basis Schedule	  	- 8 -
				
	 SECTION
	 	2.5.	  	Tax Benefit Schedule	  	- 9 -
				
	 SECTION
	 	2.6.	  	No Certainty of Tax Benefit	  	- 10 -
			
	ARTICLE III	 	TAX BENEFIT PAYMENTS	  	- 11 -
				
	 SECTION
	 	3.1.	  	Payments	  	- 11 -
				
	 SECTION
	 	3.2.	  	No Duplicative Payment	  	- 12 -
			
	ARTICLE IV	 	TERMINATION	  	- 12 -
				
	 SECTION
	 	4.1.	  	Scheduled Termination Date	  	- 12 -
				
	 SECTION
	 	4.2.	  	Early Termination	  	- 12 -
			
	ARTICLE V	 	SUBORDINATION AND LATE PAYMENTS	  	- 13 -
				
	 SECTION
	 	5.1.	  	Subordination	  	- 13 -
				
	 SECTION
	 	5.2.	  	Late Payments by the Corporation	  	- 13 -
			
	ARTICLE VI	 	ELECTION; CERTAIN TAX MATTERS; CONSISTENCY; COOPERATION	  	- 13 -
				
	 SECTION
	 	6.1.	  	Election to be Filed	  	- 13 -
				
	 SECTION
	 	6.2.	  	Certain Corporation Tax Matters	  	- 13 -
				
	 SECTION
	 	6.3.	  	Consistency	  	- 14 -
				
	 SECTION
	 	6.4.	  	Cooperation	  	- 14 -
			
	ARTICLE VII	 	MISCELLANEOUS	  	- 14 -
				
	 SECTION
	 	7.1.	  	Entire Agreement	  	- 14 -
				
	 SECTION
	 	7.2.	  	Expenses	  	- 14 -
				
	 SECTION
	 	7.3.	  	Notices	  	- 14 -
				
	 SECTION
	 	7.4.	  	Reconciliation	  	- 15 -

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	 	 	  	Page
				
	 SECTION
	 	7.5.	  	Withholding	  	- 15 -
				
	 SECTION
	 	7.6.	  	Amendment, Modification or Waiver	  	- 16 -
				
	 SECTION
	 	7.7.	  	No Third Party Beneficiaries	  	- 16 -
				
	 SECTION
	 	7.8.	  	Successors’ Assignment	  	- 16 -
				
	 SECTION
	 	7.9.	  	Counterparts	  	- 16 -
				
	 SECTION
	 	7.10.	  	Specific Performance	  	- 16 -
				
	 SECTION
	 	7.11.	  	Governing Law	  	- 16 -
				
	 SECTION
	 	7.12.	  	Submission to Jurisdiction; Waivers	  	- 17 -
				
	 SECTION
	 	7.13.	  	Interpretation	  	- 17 -
				
	 SECTION
	 	7.14.	  	Severability	  	- 17 -

  

 -ii- 

 TAX RECEIVABLE AGREEMENT 
 This TAX RECEIVABLE AGREEMENT (this “Agreement”) is dated as of
            , 2010, by and between Imperial Capital Group, Inc., a Delaware company (the “Corporation”), and ICGI Holdings, LLC, a Delaware limited liability company
(“Holdings” and together with the Corporation, the “Parties” and each a “Party”). 
 RECITALS: 
 WHEREAS, the Corporation, Holdings and Imperial Capital Group, LLC, a Delaware limited liability
company, are contemporaneously entering into a certain Exchange Agreement (the “Exchange Agreement”); and 
 WHEREAS, in connection with transactions contemplated by the Exchange Agreement, the members of Holdings will contribute their interests in Imperial Capital Group, LLC, the predecessor to Imperial Capital Group, L.P., a Delaware limited
partnership (the “Limited Partnership”), to Holdings in exchange for membership interests in Holdings and will become members of Holdings (such contributors, the “Members”), which exchange will constitute a
transaction for valuable consideration; 
 WHEREAS, pursuant to the Exchange Agreement, certain of the interests in the Limited
Partnership (“LP Units”) will be sold by Holdings to the Corporation (the “Original Sale”) in exchange for cash and the right to certain payments equal to a portion of any tax benefits realized by the Corporation as
the result of the sale; and 
 WHEREAS, interests in Holdings may be tendered over time by the Members for redemption by
Holdings in exchange for Class A common stock of the Corporation (the “Class A Stock”), and, as necessary to obtain the Class A Stock required to give effect to such rights of redemption, Holdings has the right to exchange
a corresponding number of LP Units with the Corporation for Class A Stock and a portion of any tax benefits realized by the Corporation with respect to the LP Units acquired as the result of such an exchange (an “Exchange”);
and 
 WHEREAS, any tax benefits from the Original Sale or with respect to LP Units acquired as the result of an Exchange will
result from the Limited Partnership’s having in effect an election under Section 754 of the Code (as defined herein) for the Taxable Year (as defined herein) in which the Original Sale occurs and thereafter, which election will result or
will have resulted in an adjustment to the Corporation’s share of the tax basis of the assets owned by the Limited Partnership as of the date of the Original Sale or thereafter that underlie the LP Units acquired by the Corporation, with a
consequent effect on the taxable income subsequently derived therefrom; and 
 WHEREAS, contemporaneous with the Original Sale,
the Corporation will become the general partner of the Limited Partnership and, as such, will exercise control over the Limited Partnership, including of its business and affairs; and 
 WHEREAS, the parties to this Agreement desire to provide for certain payments and make certain arrangements with respect to any tax benefits
to be derived by the Corporation

 
as the result of the Original Sale and with respect to LP Units acquired as the result of the Exchanges as contemplated by the Exchange Agreement. 
 NOW, THEREFORE, in consideration of the foregoing and the respective covenants and agreements set forth herein, and intending to be legally
bound hereby, the parties hereto agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 SECTION 1.1. Definitions. As used
in this Agreement, the following terms shall have the meanings set forth below (such meanings to be equally applicable to both the singular and plural forms of the terms defined). 
 “Advisory Firm” means an accounting or law firm that is nationally recognized as being expert in Covered Tax matters, as
determined by the Audit Committee. The Audit Committee shall select the Advisory Firm. 
 “Advisory Firm
Letter” means a letter from the Advisory Firm stating that the relevant schedule, notice or other information to be provided by the Corporation to Holdings and all supporting schedules and work papers were prepared in a manner consistent
with the terms of this Agreement and, to the extent not expressly provided in this Agreement, on a reasonable basis in light of the facts and law in existence on the date such schedule, notice or other information is delivered to Holdings.

 “Agreed Rate” means LIBOR plus 200 basis points. 
 “Agreement” is defined in the preamble. 
 “Amended Tax Benefit Schedule” is defined in Section 2.5(b) of this Agreement. 
 “Actual Tax Liability” means the actual liability for Covered Taxes of the Corporation. 
 “Audit Committee” means the audit committee of the board of directors of the Corporation. 
 “Basis Adjustment” means the increase or decrease to the tax basis of, or the Corporation’s share of the tax basis of, the Limited Partnership’s assets (i) under Sections
734(b), 743(b) and 754 of the Code and the comparable sections of U.S. state and local income and franchise tax law as a result of the Original Sale, (ii) under Section 743(b) and 754 of the Code and the comparable sections of U.S. state
and local income and franchise tax law at any time after the Original Sale Date with respect to LP Units acquired as a result of any Exchange and (iii) under Sections 743(b) and 754 as a result of any payments under this Agreement. 

“Business Day” means any calendar day that is not a Saturday, Sunday or other calendar day on which banks are required
or authorized to be closed in the City of New York. 
  

 - 2 - 

 “Class A Stock” is defined in the recitals. 
 “Code” means the Internal Revenue Code of 1986, as amended (or any successor U.S. federal income tax statute and the
corresponding provisions thereof). 
 “Corporation” is defined in the preamble. 
 “Covered Taxable Year” means any Taxable Year of the Corporation ending after the Original Sale Date and on or before the
Scheduled Termination Date or Early Termination Date, as applicable. 
 “Covered Tax” means any tax imposed
under Subtitle A of the Code or any other provision of U.S. federal income tax law (including, without limitation, the taxes imposed by Sections 11, 55, 59A, and 1201(a) of the Code) and any U.S. state and local income or franchise tax. 

“Determination” has the meaning ascribed to such term in Section 1313(a) of the Code or similar provision of state
or local income or franchise tax law, as applicable. 
 “Early Termination Date” is the last day of the Taxable
Year in which an Early Termination Notice is given. 
 “Early Termination Notice” is defined in
Section 4.2 of this Agreement. 
 “Early Termination Payment” means, as of the date of an Early
Termination Notice, a payment equal to the present value, discounted at the Termination Rate, of all Tax Benefit Payments that would be required to be paid by the Corporation to Holdings during the period from the date of the Early Termination
Notice through the Scheduled Termination Date assuming the Valuation Assumptions are applied. 
 “Escrow Agent”
is defined in Section 3.1(a). 
 “Escrow Agreement” is defined in Section 3.1(a). 
 “Exchange” is defined in the recitals. 
 “Exchange Agreement” is defined in the recitals. 
 “Exchange Assets” means the assets owned by the Limited Partnership as of an applicable Exchange Date (and any asset whose tax basis is determined, in whole or in part, by reference to the adjusted basis of any such asset).

 “Exchange Basis Schedule” is defined in Section 2.4(a) of this Agreement. 
 “Exchange Date” means the date on which an Exchange is effected. 
 “Governmental Entity” means any U.S. federal, state or local government or any court of competent jurisdiction,
administrative agency or commission or other domestic governmental authority or instrumentality. 
  

 - 3 - 

 “Holdings” is defined in the preamble. 
 “Holdings LLC Agreement” means the Limited Liability Company Agreement of Holdings dated as of
            , 2010. 
 “Hypothetical Tax Basis”
means, with respect to any asset at any time after the Original Sale Date, the tax basis that such asset would have at such time if no Basis Adjustment had been made. 
 “Hypothetical Tax Liability” means, with respect to any Covered Taxable Year, the liability for Covered Taxes of the Corporation using the same methods, elections, conventions and similar
practices used on the actual Tax Returns of the Corporation, but using the Hypothetical Tax Basis instead of the actual tax basis of each relevant asset and excluding any deduction attributable to the Imputed Interest. 
 “Imputed Interest” and “Imputed Principal” mean the portion of a payment treated as interest or principal,
as applicable, under Section 1272, 1274 or 483 or other provision of the Code and the similar section of the applicable U.S. state or local income or franchise tax law with respect to the Corporation’s payment obligations to Holdings under
this Agreement. 
 “IRS” means the U.S. Internal Revenue Service. 
 “LIBOR” means, for each month (or portion thereof) during any period, an interest rate per annum equal to the rate per
annum reported, on the date two days prior to the first day of such month, on the Telerate Page 3750 (or if such screen shall cease to be publicly available, as reported on Reuters Screen page “LIBO” or by any other publicly available
source of such market rate) for London interbank offered rates for U.S. dollar deposits for such month (or portion thereof). 
 “Limited Partnership” is defined in the recitals. 
 “LP Units” is defined in the
recitals. 
 “Members” is defined in the recitals. 
 “Original Assets” means the assets owned by the Limited Partnership as of the date of the Original Sale and any asset whose
tax basis is determined, in whole or in part, by reference to the adjusted basis of any such asset. 
 “Original
Sale” is defined in the recitals. 
 “Original Sale Basis Schedule” is defined in Section 2.2 of
this Agreement. 
 “Original Sale Date” means the date on which the Original Sale is effected. 
 “Party” or “Parties” has the meaning assigned to such term in the preamble to this Agreement. 

 

 - 4 - 

 “Person” means and includes any individual, firm, corporation, partnership
(including, without limitation, any limited, general or limited liability partnership), company, limited liability company, trust, joint venture, association, joint stock company, unincorporated organization or similar entity or Governmental Entity.

 “Preliminary Termination Notice” is defined in Section 4.2(b) of this Agreement. 
 “Proceeding” means a suit, action or proceeding relating to this Agreement. 
 “Realized Tax Benefit” means, for a Covered Taxable Year, the excess, if any, of the Hypothetical Tax Liability over the
Actual Tax Liability for such Covered Taxable Year, less the fees, charges and expenses of the Advisory Firm and the expert described in Section 7.2 related to this Agreement paid by the Corporation in the relevant Covered Taxable Year. If all
or a portion of the Actual Tax Liability for Covered Taxes for the Covered Taxable Year arises as a result of an audit by a Taxing Authority of any Covered Taxable Year, such adjustment to the liability shall not be included in determining the
Realized Tax Benefit or the Realized Tax Detriment unless and until there has been a Determination. 
 “Realized Tax
Detriment” means, for a Covered Taxable Year, the excess, if any, of the Actual Tax Liability of the Corporation over the Hypothetical Tax Liability for such Covered Taxable Year, plus the fees, charges and expenses of the Advisory Firm and
the expert described in Section 7.2 related to this Agreement paid by the Corporation in the relevant Covered Taxable Year. If all or a portion of the Actual Tax Liability arises as a result of an audit by a Taxing Authority of any Covered
Taxable Year, such adjustment to the liability shall not be included in determining the Realized Tax Benefit or Realized Tax Detriment unless and until there has been a Determination. 
 “Reconciliation Procedures” means those procedures set forth in Section 7.4 of this Agreement. 
 “Scheduled Termination Date” means the date on which this Agreement would terminate in the absence of an Early Termination
Notice as provided in Section 4.1 of this Agreement. 
 “Senior Obligations” means principal, interest or
other amounts due and payable in respect of any debt of the Corporation for borrowed funds. 
 “Tax Benefit
Payment” is defined in Section 3.1(b) of this Agreement. 
 “Tax Benefit Schedule” is defined in
Section 2.5(a) of this Agreement. 
 “Taxable Year” means a taxable year as defined in Section 441(b)
of the Code or comparable section of U.S. state or local income or franchise tax law, as applicable (and, therefore, for the avoidance of doubt, may include a period of less than 12 months for which a Tax Return is made). 
 “Tax Return” means any return or filing required to be made by the Corporation with respect to Covered Taxes, including
amended returns, for any Taxable Year with any Taxing Authority. 
  

 - 5 - 

 “Taxing Authority” means the IRS and any state or local Governmental Entity
responsible for the administration of Covered Taxes. 
 “Termination Rate” means the Applicable Treasury Rate
plus 300 basis points, where the “Applicable Treasury Rate” means a rate equal to the yield to maturity as of the date an Early Termination Notice is delivered of U.S. Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release H. 15 (519)) of ten years. 
 “Treasury
Regulations” means the final, temporary and proposed regulations under the Code promulgated from time to time (including corresponding provisions of succeeding provisions) as in effect for the relevant taxable period. 
 “Valuation Assumptions” means, as of any Valuation Date, the assumptions described in Schedule A to this Agreement.

 “Valuation Date” means the date of an Early Termination Notice for purposes of determining an Early
Termination Payment. 
 SECTION 1.2. General. Wherever required by the context of this Agreement, the singular shall
include the plural and vice versa, and the masculine gender shall include the feminine and neuter genders and vice versa, and references to any agreement, document or instrument shall be deemed to refer to such agreement, document or instrument as
amended, supplemented or modified from time to time. When used herein: 
 (a) the word “or” is not exclusive;

 (b) the words “including,” “includes,” “included” and “include” are deemed to be
followed by the words “without limitation”; 
 (c) the terms “herein,” “hereof” and
“hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular section, paragraph or subdivision; 
 (d) the word “person” means any individual, corporation, limited liability company, trust, joint venture, association, company, partnership or other legal entity or a Governmental Authority; and

 (e) all section, paragraph or clause references not attributed to a particular document shall be references to such parts of
this Agreement, and all exhibit, annex and schedule references not attributed to a particular document shall be references to such exhibits, annexes and schedules to this Agreement. 
  

 - 6 - 

 ARTICLE II 
 DETERMINATION OF REALIZED TAX BENEFIT 
 OR REALIZED
TAX DETRIMENT 
 SECTION 2.1. Basis Adjustment Attributable to Original Sale. The Corporation and Holdings hereby
acknowledge and agree that (i) Holdings will recognize gain on the Original Sale under Section 741 of the Code, and (ii) the Corporation’s share of the basis in the Original Assets shall be increased pursuant to
Section 743(b) of the Code by reason of the election of the Limited Partnership pursuant to Section 754 of the Code by the excess of (A) the adjusted basis in the LP Units acquired by the Corporation in the Original Sale, adjusted to
take into account the Imputed Principal of Tax Benefit Payments as made, over (B) the acquired LP Units’ proportionate share of the basis of the Original Assets on the Original Sale Date. 
 SECTION 2.2. Original Sale Basis Schedule. 
 (a) Generally. Within 10 calendar days after filing the United States federal income tax return for the taxable year which includes the Original Sale Date, the Corporation shall deliver (or cause
the Limited Partnership to deliver) to Holdings a schedule (the “Original Sale Basis Schedule”) that shows, in reasonable detail, for U.S. federal income tax purposes, (i) the actual tax basis as of the Original Sale Date of the
Original Assets, (ii) the Basis Adjustment with respect to the Original Assets as a result of the Original Sale and (iii) the period or periods, if any, over which the Original Assets are amortizable or depreciable for U.S. federal income
tax purposes. At the time the Limited Partnership delivers the Original Sale Basis Schedule to Holdings, the Corporation shall (x) deliver (or cause the Limited Partnership to deliver) to Holdings schedules and work papers providing reasonable
detail regarding the preparation of the Original Sale Basis Schedule and an Advisory Firm Letter supporting such Original Sale Basis Schedule and (y) allow Holdings reasonable access to the appropriate representatives at the Corporation, the
Limited Partnership and the Advisory Firm in connection with its review of such schedule. The Original Sale Basis Schedule shall become final and binding on the parties unless Holdings, within 30 calendar days after receiving such Original Sale
Basis Schedule, provides the Corporation with notice of a material objection to such Original Sale Basis Schedule made in good faith and in reasonable detail. If the parties, negotiating in good faith, are unable to successfully resolve the issues
raised in such notice within 30 calendar days after such notice was delivered to the Corporation, the Corporation and Holdings shall employ the Reconciliation Procedures. 
 (b) Amendments to Original Sale Basis Schedule. The Original Sale Basis Schedule shall be amended from time to time by the Corporation with the consent of the Audit Committee to take account of the
Imputed Principal of the Tax Benefit Payments attributable to the Original Sale, as made, and may be amended from time to time by the Corporation with the consent of the Audit Committee (i) in connection with a Determination or change in
applicable law, (ii) to correct inaccuracies to the Original Sale Basis Schedule identified after the Original Sale Date as a result of the receipt of additional information relating to facts or circumstances on or prior to the Original Sale
Date or (iii) to comply with the expert’s determination under the Reconciliation Procedures. At the time the Corporation delivers such amended Original Sale Basis Schedule to Holdings, it shall (x) deliver to Holdings schedules and
work papers providing reasonable detail

  

 - 7 - 

 
regarding the preparation of the amended Original Sale Basis Schedule and an Advisory Firm Letter supporting such amended Original Sale Basis Schedule and (y) allow Holdings reasonable
access to the appropriate representatives at the Corporation, the Limited Partnership and the Advisory Firm in connection with its review of such schedule. The amended Original Sale Basis Schedule shall become final and binding on the parties unless
Holdings, within 30 calendar days after receiving such amended Original Sale Basis Schedule, provides the Corporation with notice of a material objection to such amended Original Sale Basis Schedule made in good faith and in reasonable detail. If
the parties, negotiating in good faith, are unable to successfully resolve the issues raised in such notice within 30 calendar days after such notice was delivered to the Corporation, the Corporation and Holdings shall employ the Reconciliation
Procedures. 
 SECTION 2.3. Basis Adjustment With Respect to an Exchange. Pursuant to an Exchange, Holdings shall
exchange a number of LP Units to the Corporation as necessary to provide Holdings with consideration to give effect to any redemption of interests of the Members in Holdings. The parties hereto acknowledge that (i) Holdings will recognize
taxable gain or loss on the Exchange for U.S. federal income tax purposes under Section 741 of the Code, and (ii) the Corporation’s share of the basis in the Exchange Assets will be increased pursuant to Section 743(b) of the
Code by reason of the election of the Limited Partnership pursuant to Section 754 of the Code by the excess, if any, of (A) adjusted basis in the LP Units acquired by the Corporation, adjusted to take into account the Imputed Principal of
any Tax Benefit Payments as made by the Corporation with respect thereto, over (B) the Corporation’s proportionate share of the basis of the Exchange Assets immediately after the Exchange attributable to the LP Units exchanged. The
Corporation and Holdings will treat such gain and basis adjustment as occurring entirely on the Exchange Date unless there is a Determination to the contrary. 
 SECTION 2.4. Exchange Basis Schedule. 
 (a) Generally. Within 10
calendar days after filing of its United States federal income tax return for the taxable year in which any Exchange has been effected, the Corporation shall deliver (or cause the Limited Partnership to deliver) to Holdings a schedule (the
“Exchange Basis Schedule”) approved by the Audit Committee that shows, in reasonable detail, for U.S. federal income tax purposes, (i) the Hypothetical Tax Basis as of the first applicable Exchange Date in such Covered Taxable Year of
the Exchange Assets, (ii) the actual tax basis as of the first applicable Exchange Date in such Covered Taxable Year of the Exchange Assets, (iii) the cumulative Basis Adjustment with respect to the Exchange Assets underlying the LP Units
acquired by the Corporation as a result of the Exchanges effected in such Covered Taxable Year, calculated in the aggregate, and (iv) the period or periods, if any, over which the Exchange Assets are amortizable or depreciable. At the time the
Corporation delivers (or causes the Limited Partnership to deliver) the Exchange Basis Schedule to Holdings, it shall (x) deliver (or cause the Limited Partnership to deliver) to Holdings schedules and work papers providing reasonable detail
regarding the preparation of the Exchange Basis Schedule and an Advisory Firm Letter supporting such Exchange Basis Schedule and (y) allow Holdings reasonable access to the appropriate representatives at the Corporation, the Limited Partnership
and the Advisory Firm in connection with its review of such schedule. The Exchange Basis Schedule shall become final and binding on the parties unless Holdings, within 30 calendar days after receiving such Exchange Basis Schedule, provides the
Corporation with notice of a material objection to such Exchange Basis Schedule made in good faith and in reasonable detail. If the parties,

  

 - 8 - 

 
negotiating in good faith, are unable to successfully resolve the issues raised in such notice within 30 calendar days after such notice was delivered to the Corporation, the Corporation and
Holdings shall employ the Reconciliation Procedures. 
 (b) Amendments to Exchange Basis Schedule. The Exchange Basis
Schedule shall be amended from time to time by the Corporation with the consent of the Audit Committee to take account of the Imputed Principal of the Tax Benefit Payments attributable to such Exchange, as made, and may be amended from time to time
by the Corporation with the consent of the Audit Committee (i) in connection with a Determination or change in applicable law, (ii) to correct inaccuracies to the original Exchange Basis Schedule identified after the date of the Exchange
as a result of the receipt of additional information or (iii) to comply with the expert’s determination under the Reconciliation Procedures. At the time the Corporation delivers such amended Exchange Basis Schedule to Holdings, it shall
(x) deliver to Holdings schedules and work papers providing reasonable detail regarding the preparation of the amended Exchange Basis Schedule and an Advisory Firm Letter supporting such amended Exchange Basis Schedule and (y) allow
Holdings reasonable access to the appropriate representatives at the Corporation, the Limited Partnership and the Advisory Firm in connection with its review of such schedule. The amended Exchange Basis Schedule shall become final and binding on the
parties unless Holdings, within 30 calendar days after receiving such amended Exchange Basis Schedule, provides the Corporation with notice of a material objection to such amended Exchange Basis Schedule made in good faith and in reasonable detail.
If the parties, negotiating in good faith, are unable to successfully resolve the issues raised in such notice within 30 calendar days after such notice was delivered to the Corporation, the Corporation and Holdings shall employ the Reconciliation
Procedures. 
 SECTION 2.5. Tax Benefit Schedule. 
 (a) Generally. Within 10 calendar days after filing its U.S. federal income Tax Return for the relevant Covered Taxable Year, the
Corporation shall provide to Holdings a schedule approved by the Audit Committee showing, in reasonable detail, the calculation of the Corporation’s Realized Tax Benefit or Realized Tax Detriment for such Covered Taxable Year (the “Tax
Benefit Schedule”). At the time the Corporation delivers the Tax Benefit Schedule to Holdings it shall (i) deliver to Holdings schedules and work papers providing reasonable detail regarding the preparation of the Tax Benefit Schedule and
an Advisory Firm Letter supporting such Tax Benefit Schedule and (ii) allow Holdings reasonable access to the appropriate representatives at the Corporation, the Limited Partnership and the Advisory Firm in connection with its review of such
schedules. The Tax Benefit Schedule shall become final and binding on the parties unless Holdings, within 30 calendar days after receiving such Tax Benefit Schedule, provides the Corporation with notice of a material objection to such Tax Benefit
Schedule made in good faith and in reasonable detail. If the parties, negotiating in good faith, are unable to successfully resolve the issues raised in such notice within 30 calendar days after receipt thereof by the Corporation, the Corporation
and Holdings shall employ the Reconciliation Procedures. 
 (b) Amendments to Tax Benefit Schedule. A Tax Benefit
Schedule for any Covered Taxable Year may be amended from time to time by the Corporation with the consent of the Audit Committee (i) in connection with a Determination or change in applicable law affecting such Tax Benefit Schedule,
(ii) to correct inaccuracies in the original Tax Benefit Schedule

  

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identified as a result of the receipt of additional factual information relating to a Covered Taxable Year after the date the Tax Benefit Schedule was provided to Holdings, (iii) to reflect
a change in the Realized Tax Benefit or Realized Tax Detriment for such Covered Taxable Year attributable to a carryback or carryforward of a loss or other tax item to such Covered Taxable Year, (iv) to reflect a change in the Realized Tax
Benefit or Realized Tax Detriment for such Covered Taxable Year attributable to an amended tax return filed for such Covered Taxable Year (provided, however, that such a change attributable to an audit of a Tax Return by an applicable Taxing
Authority shall not be taken into account on an Amended Tax Benefit Schedule unless and until there has been a Determination with respect to such change) or (v) to comply with the expert’s determination under the Reconciliation Procedures.
At the time the Corporation delivers such an amended Tax Benefit Schedule pursuant to this Section 2.5(b) (an “Amended Tax Benefit Schedule”) to Holdings it shall (x) deliver to Holdings schedules and work papers providing
reasonable detail regarding the preparation of the Amended Tax Benefit Schedule and an Advisory Firm Letter supporting such Amended Tax Benefit Schedule and (y) allow Holdings reasonable access to the appropriate representatives at the
Corporation, the Limited Partnership and the Advisory Firm in connection with its review of such schedule. Such Amended Tax Benefit Schedule shall become final and binding on the parties unless Holdings, within 30 calendar days after receiving such
Amended Tax Benefit Schedule, provides the Corporation with notice of a material objection to such Amended Tax Benefit Schedule made in good faith and in reasonable detail. If the parties, negotiating in good faith, are unable to successfully
resolve the issues raised in such notice within 30 calendar days after such notice was delivered to the Corporation, the Corporation and Holdings shall employ the Reconciliation Procedures. 
 (c) Applicable Principles. The Realized Tax Benefit or Realized Tax Detriment for each Covered Taxable Year is intended to measure
the decrease or increase in the actual Covered Tax liability of the Corporation for such Covered Taxable Year attributable to the Basis Adjustment and Imputed Interest, determined using a “with and without” methodology. For avoidance of
doubt, the actual Covered Tax liability will take into account the deduction of the portion of the Tax Benefit Payment that must be accounted for as Imputed Interest under the Code based upon the characterization of the Tax Benefit Payment as
additional consideration payable by the Corporation for the LP Units acquired in the Original Sale or an Exchange, as applicable. Carryovers or carrybacks of any Covered Tax item attributable to the Basis Adjustment and Imputed Interest (determined
using such “with and without” methodology) shall be considered to be subject to the rules of the Code and the Treasury Regulations or the appropriate provisions of U.S. state and local income and franchise tax law, as applicable, governing
the use, limitation and expiration of carryovers or carrybacks of the relevant type. If a carryover or carryback of any Covered Tax item includes a portion that is attributable to the Basis Adjustment or Imputed Interest and another portion that is
not, such portions shall be considered to be used in the order determined using such “with and without” methodology. 
 SECTION 2.6. No Certainty of Tax Benefit. Tax Benefit Payments will only be made based upon Realized Tax Benefits. The parties acknowledge that circumstances may exist where either no Basis Adjustment occurs or has occurred with
respect to LP Units acquired as the result of an Exchange, no positive Basis Adjustment occurs or has occurred with respect to LP Units acquired as the result of an Exchange or no Tax Benefit is realized as the result of a positive Basis Adjustment
with respect to LP Units acquired as the result of an Exchange. 
  

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 ARTICLE III 
 TAX BENEFIT PAYMENTS 
 SECTION 3.1. Payments.

 (a) Within three calendar days after the delivery of the Tax Benefit Schedule to Holdings for any Covered Taxable Year, the
Corporation shall pay to Holdings an amount equal to the the Tax Benefit Payment (as defined below) for such Covered Taxable Year. Each Tax Benefit Payment shall be made by wire transfer of immediately available funds to the bank account of Holdings
previously designated by Holdings to the Corporation. For the avoidance of doubt, no Tax Benefit Payment shall be made in respect of estimated tax payments, including, without limitation, estimated federal income tax payments. 
 (b) A “Tax Benefit Payment” shall equal 85% of the Corporation’s Realized Tax Benefit, if any, for a Covered Taxable Year,

 increased by: 
 (1) interest calculated at the Agreed Rate from the due date (without extensions) for filing the Tax Return for such Covered Taxable Year); and 
 (2) 85% of the amount of the excess Realized Tax Benefit reflected on an Amended Tax Benefit Schedule for a previous Covered
Taxable Year over the Realized Tax Benefit (or Realized Tax Detriment) reflected on the Tax Benefit Schedule for such previous Covered Taxable Year, and 
 decreased by: 
 (3) an amount equal to 85% of the
Corporation’s Realized Tax Detriment (if any) for any previous Covered Taxable Year; and 
 (4) 85% of the
amount of the excess Realized Tax Benefit reflected on the Tax Benefit Schedule for a previous Covered Taxable Year over the Realized Tax Benefit (or Realized Tax Detriment) reflected on the Amended Tax Benefit Schedule for such previous Covered
Taxable Year; 
 provided, however, that the amounts described in clauses 3.1(b)(2), (3) and (4) shall not be taken into
account in determining a Tax Benefit Payment attributable to any Covered Taxable Year to the extent of such amounts taken into account in determining any Tax Benefit Payment in a preceding Covered Taxable Year. 
 (c) The adjustments made in the computation of the Tax Benefit Payment provided in paragraph (b) shall be the exclusive means of
correcting the amount of any Tax Benefit Payment previously made. For avoidance of doubt, there shall be no other recourse against Holdings with respect to any overpayment. 
  

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 SECTION 3.2. No Duplicative Payment. No duplicative payment of any amount (including
interest) will be required under this Agreement. 
 ARTICLE IV 
 TERMINATION 
 SECTION 4.1. Scheduled Termination
Date. This Agreement shall terminate effective upon the earlier of (i) the end of the Taxable Year that includes the 50th anniversary of the Original Sale Date, or (ii) the end of the Taxable Year that includes the 16th anniversary of
the date upon which all rights of sale and exchange granted under the Exchange Agreement have terminated. Upon the Scheduled Termination Date, the Corporation shall have no further payment obligations under this Agreement, other than for
(i) any Tax Benefit Payment agreed to by the Corporation and Holdings as due and payable but unpaid as of the Scheduled Termination Date and (ii) any Tax Benefit Payment with respect to the Covered Taxable Year ending with the Scheduled
Termination Date. 
 SECTION 4.2. Early Termination. 
 (a) At any time after the 25th anniversary of the date of this Agreement, or earlier with the consent of Holdings, the Corporation may
terminate this Agreement with the consent of the Audit Committee effective as of the Early Termination Date by paying to Holdings the Early Termination Payment as provided in paragraph (c) below. Upon payment of the Early Termination Payment by
the Corporation, the Corporation shall have no further payment obligations under this Agreement, other than for any (i) Tax Benefit Payment agreed to by the Corporation and Holdings as due and payable but unpaid as of the Early Termination Date
and (ii) any Tax Benefit Payment due for the Covered Taxable Year ending with or including the Early Termination Date (except to the extent that the amount described in clause (i) or (ii) is included in the Early Termination Payment).

 (b) If the Corporation intends to exercise its right of early termination, it shall first provide at least 60 days’ (but
not more than 90 days’) prior written notice of its intention to exercise its termination rights with respect to this Agreement to Holdings (the “Preliminary Termination Notice”); and, for the next succeeding 30 days, Holdings shall
have the right to exchange its LP Units in accordance with the Exchange Agreement. To exercise its right of early termination under Section 4.2(a) above, within 60 days following the requisite Preliminary Termination Notice to Holdings, the
Corporation shall deliver to Holdings a notice (the “Early Termination Notice”) specifying the Corporation’s intention to exercise its right of termination and showing in reasonable detail the calculation of the Early Termination
Payment. At the time the Corporation delivers the Early Termination Notice to Holdings, the Corporation shall (i) deliver to Holdings schedules and work papers providing reasonable detail regarding the calculation of the Early Termination
Payment, in a manner consistent with the definition of such term and an Advisory Firm Letter supporting such calculation and (ii) allow Holdings reasonable access to the appropriate representatives at the Corporation, the Limited Partnership
and the Advisory Firm in connection with its review of such calculation. The calculation contained in such Early Termination Notice shall become final and binding on the parties unless Holdings, within 30 calendar days after receiving such
calculation, provides the Corporation with notice of

  

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a material objection to such calculation made in good faith and in reasonable detail. If the parties, negotiating in good faith, are unable to successfully resolve the issues raised in such
calculation within 30 calendar days after such notice of material objection, the Corporation, and Holdings shall employ the Reconciliation Procedures. 
 (c) Within forty-five (45) calendar days after the delivery to Holdings of the Early Termination Notice or ten (10) days after any amendment to the Early Termination Notice, the Corporation
shall pay to Holdings an amount equal to the Early Termination Payment. Such payment shall be made by wire transfer of immediately available funds to a bank account designated by Holdings. 
 (d) For the avoidance of doubt, Holdings shall not be entitled to cause an early termination of this Agreement. 
 ARTICLE V 
 SUBORDINATION AND LATE PAYMENTS 
 SECTION 5.1. Subordination. Notwithstanding any other provision of
this Agreement to the contrary, any Tax Benefit Payment or Early Termination Payment required to be made by the Corporation to Holdings under this Agreement shall rank subordinate and junior in right of payment to any Senior Obligations and shall
rank pari passu with all current or future unsecured obligations of the Corporation that are not Senior Obligations. 
 SECTION
5.2. Late Payments by the Corporation. The amount of all or any portion of a payment not made to Holdings when due under the terms of this Agreement shall be payable together with any interest thereon, computed at the Agreed Rate and
commencing from the date on which such payment was due and payable. 
 ARTICLE VI 
 ELECTION; CERTAIN TAX MATTERS; 
 CONSISTENCY; COOPERATION 
 SECTION 6.1. Election to be Filed. As
general partner of the Limited Partnership, the Corporation shall cause the Limited Partnership to file an election under Section 754 of the Code commencing with its Taxable Year in which the Original Sale occurs. 
 SECTION 6.2. Certain Corporation Tax Matters. Except as otherwise provided herein, the Corporation shall have full responsibility
for, and sole discretion over, all matters concerning Covered Taxes of the Corporation and the Limited Partnership, including without limitation the preparation, filing or amending of any Tax Return and defending, contesting or settling any issue
pertaining to Covered Taxes. Notwithstanding the foregoing, the Corporation shall notify Holdings of, and keep Holdings reasonably informed with respect to, and Holdings shall have the right to participate in and monitor (but, for the avoidance of
doubt, not to control) the portion of any audit of the Corporation by a Taxing Authority the outcome of which is reasonably expected to affect Holdings’ rights under this Agreement. The Corporation shall provide to Holdings reasonable
opportunity to provide information and other input to the Corporation and its advisors

  

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concerning the conduct of any such portion of such audits. The Corporation shall not settle or otherwise resolve any audit or other challenge by a Taxing Authority relating to the Basis
Adjustment or the deduction of Imputed Interest without the consent of the Audit Committee and Holdings, which consent Holdings shall not unreasonably withhold, condition or delay. 
 SECTION 6.3. Consistency. Unless there is a Determination or change of law to the contrary, the Corporation and Holdings, on their
own behalf and on behalf of each of their affiliates (including the Members of Holdings in accordance with the Holdings LLC Agreement), agree to report and cause to be reported for all U.S. purposes, including for purposes of all Covered Taxes and
U.S. financial reporting purposes, all items related to Covered Taxes and this Agreement (including without limitation the Basis Adjustment and each Tax Benefit Payment) in a manner consistent with that specified by the Corporation in any schedule,
letter or certificate required to be provided by or on behalf of the Corporation under this Agreement. In the event that an Advisory Firm is replaced with another firm acceptable to the Audit Committee, such replacement Advisory Firm shall be
required to perform its services under this Agreement using procedures and methodologies consistent with the procedures and methodologies of the previous Advisory Firm, unless otherwise required by law or unless the Corporation, the Audit Committee
and Holdings agree to the use of other procedures and methodologies. 
 SECTION 6.4. Cooperation. Holdings shall (and
shall cause its affiliates to) (i) furnish to the Corporation in a timely manner such information, documents and other materials as the Corporation may reasonably request for purposes of making any determination or computation necessary or
appropriate under this Agreement, preparing any Tax Return or contesting or defending any audit, examination or controversy with any Taxing Authority, (ii) make its employees available to the Corporation and its representatives to provide
explanations of documents and materials and such other information as the Corporation or its representative may reasonably request in connection with any of the matters described in clause (i) above, and (iii) reasonably cooperate in
connection with any such matter. 
 ARTICLE VII 
 MISCELLANEOUS 
 SECTION 7.1. Entire Agreement.
This Agreement shall constitute the entire agreement among the Parties with respect to the subject matter hereof and shall supersede all previous negotiations, commitments and writings with respect to such subject matter. 
 SECTION 7.2. Expenses. Except as expressly set forth in this Agreement, all third party fees, costs and expenses paid or incurred in
connection with the transactions contemplated by this Agreement will be paid by the Party incurring such fees, costs or expenses. 
 SECTION 7.3. Notices. All notices, consents, waivers and other communications required or permitted by this Agreement shall be in writing and shall be deemed given to a Party when (a) delivered to the appropriate address by hand
or by nationally recognized overnight courier service (costs prepaid); (b) sent by facsimile with confirmation of transmission by the transmitting equipment; or (c) received or rejected by the addressee, if sent by certified mail, return
receipt requested, in each case to the following addresses and facsimile numbers and

  

 - 14 - 

 
marked to the attention of the person (by name or title) designated below (or to such other address, facsimile number or person as a Party may designate by notice to the other Parties):

 If to the Corporation: 
 Imperial Capital Group, Inc. 
 2000 Avenue of the Stars 
 9th Floor, South Tower 
 Los Angeles, California 90067 
 Attention: Jason Reese 
 Fax: (310) 777-3029 
 with a copy to: 
 Dechert LLP 
 1095 Avenue of the Americas 
 New York, NY 10036 
 Fax: (212) 698-3599 
 Attention: Charles I. Weissman, Esq. 
 If to Holdings: 
 ICGI Holdings, LLC 
 2000 Avenue of the Stars 
 9th Floor, South Tower 
 Los Angeles, California 90067 
 Attention: Jason Reese 
 Fax: (310) 777-3029 
 SECTION 7.4. Reconciliation. In the event that the Corporation and Holdings are unable to resolve a disagreement within the relevant
period designated in this Agreement, the matter shall be submitted for determination to a nationally recognized expert in the particular area of disagreement employed by a nationally recognized accounting firm or a law firm (other than the Advisory
Firm), which expert is mutually acceptable to both parties and the Audit Committee. If the matter is not resolved before any payment that is the subject of a disagreement is due or any Tax Return reflecting the subject of a disagreement is due, such
payment shall be made on the date prescribed by this Agreement and such Tax Return may be filed as prepared by the Corporation, subject to adjustment or amendment upon resolution. The determinations of the expert pursuant to this Section 7.4
shall be binding on the Corporation, the Limited Partnership and Holdings absent manifest error. 
 SECTION 7.5.
Withholding. The Corporation shall be entitled to deduct and withhold from any payment payable pursuant to this Agreement such amounts as the Corporation is required to deduct and withhold with respect to the making of such payment under the
Code, or any provision of state, local or foreign tax law. To the extent that amounts are so withheld and paid over to the appropriate taxing authority by the Corporation, such withheld amounts shall be treated for all purposes of this Agreement as
having been paid to Holdings. Each Party will cooperate to minimize withholding obligations, if any, with respect to payments required hereunder. 
  

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 SECTION 7.6. Amendment, Modification or Waiver. This Agreement may be amended,
modified, waived or supplemented, in whole or in part, only by a written agreement signed by each of the Corporation and Holdings and approved by the Audit Committee. No failure or delay on the part of any Party in the exercise of any right
hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty or agreement herein, nor shall any single or partial exercise of any such right preclude other or further exercise
thereof or of any other right. The waiver by such Parties of any breach of this Agreement shall not be construed as a waiver of any subsequent breach. 
 SECTION 7.7. No Third Party Beneficiaries. This Agreement is solely for the benefit of the Parties and is not intended to confer upon any other persons any rights or remedies hereunder. 

SECTION 7.8. Successors’ Assignment. Holdings may assign its rights to Tax Benefit Payments pursuant to this Agreement to any
of the Members without the consent of the Corporation and the Audit Committee. Any other proposed assignment of rights to Tax Benefit Payments hereunder shall be subject to the prior written consent of the Corporation and the Audit Committee, which
consent shall not be unreasonably withheld, conditioned or delayed; provided, however, Holdings may pledge some or all of its rights, interests or entitlements under this Agreement to any U.S. money center bank in connection with a
bona fide loan or other indebtedness. The Corporation may not assign any of its rights, interests or entitlements under this Agreement without the consent of Holdings, not to be unreasonably withheld or delayed. Subject to each of the three
immediately preceding sentences, this Agreement will be binding upon, inure to the benefit of and be enforceable by the parties and their respective successors and assigns including any acquirer of all or substantially all of the assets of the
Corporation. 
 SECTION 7.9. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed
an original, but all of which together shall constitute one and the same instrument. 
 SECTION 7.10. Specific
Performance. The Parties acknowledge and agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly
agreed that the Parties shall be entitled to an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof, this being in addition to any other remedy to
which they may be entitled by law or equity. 
 SECTION 7.11. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware (other than the laws regarding choice of laws and conflicts of laws that would apply the substantive laws of any other jurisdiction) as to all matters, including matters of validity,
construction, effect, performance and remedies. 
  

 - 16 - 

 SECTION 7.12. Submission to Jurisdiction; Waivers. With respect to any Proceeding,
each Party irrevocably (i) consents and submits to the exclusive jurisdiction of the courts of the State of Delaware and any court of the U.S. located in the State of Delaware; (ii) waives any objection which such Party may have at any
time to the laying of venue of any Proceeding brought in any such court, waives any claim that such Proceeding has been brought in an inconvenient forum and further waives the right to object, with respect to such Proceeding, that such court does
not have jurisdiction over such Party; (iii) consents to the service of process at the address set forth for notices in Section 7.1 herein; provided, however, that such manner of service of process shall not preclude the
service of process in any other manner permitted under applicable law; and (iv) waives, to the fullest extent permitted by applicable law, any and all rights to trial by jury in connection with any Proceeding. 
 SECTION 7.13. Interpretation. The Article and Section headings contained in this Agreement are solely for the purpose of reference,
are not part of the agreement of the Parties and shall not in any way affect the meaning or interpretation of this Agreement. 
 SECTION 7.14. Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any applicable rule of law or public policy, all other conditions and provisions of this Agreement
shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party. Upon such determination that any term or other
provision is invalid, illegal or incapable of being enforced, the Parties hereto 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 to the end that
transactions contemplated hereby are fulfilled to the extent possible. 
  

 - 17 - 

 IN WITNESS WHEREOF, the Corporation and Holdings have duly executed this Agreement as of the
date first written above. 
  

					
	IMPERIAL CAPITAL GROUP, INC.
		
	By	 	  

		 	Name:	 	Jason Reese
		 	Title:	 	Chief Executive Officer

  

			
	Address:	 	2000 Avenue of the Stars
		 	9th Floor, South Tower
		 	Los Angeles, California 90067

  

					
	ICGI HOLDINGS, LLC
		
	By	 	  

		 	Name:	 	Jason Reese
		 	Title:	 	Member of the Executive Committee

  

			
	Address:	 	2000 Avenue of the Stars
		 	9th Floor, South Tower
		 	Los Angeles, California 90067

 Signature Page to Tax Receivable Agreement 
  

 - 18 - 

 SCHEDULE A 
 VALUATION ASSUMPTIONS 
 (i) There will
be no further Exchanges from and after the Early Termination Notice. 
 (ii) There will be no change in the
applicable rates of Covered Taxes throughout the relevant period, except to the extent such changes have already been enacted into law. 
 (iii) All taxable income of the Corporation will be subject to the maximum applicable rates for Covered Taxes throughout the relevant period. 
 (iv) The Corporation will have income that exceeds the amount of any increase in deductions that may be derived from the
Basis Adjustment and Imputed Interest throughout the relevant period for purposes of all Covered Taxes.

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