Document:

Document

Exhibit 10.2

NORTHERN TRUST CORPORATION

TERMS AND CONDITIONS
RELATING TO STOCK UNITS GRANTED
PURSUANT TO THE 2017 LONG-TERM INCENTIVE PLAN

    1.    Grant of Stock Units.  The Restricted Stock Units (“Stock Units”) with respect to shares of Common Stock of Northern Trust Corporation (the “Corporation”) granted to you pursuant to your Award Notice are subject to these Terms and Conditions Relating to Stock Units Granted Pursuant to the 2017 Long-Term Incentive Plan (the “Terms and Conditions”), the Stock Unit Award Notice (the “Award Notice”) and all of the terms and conditions of the Northern Trust Corporation 2017 Long-Term Incentive Plan (the “2017 Plan”), which is incorporated herein by reference.  In the case of a conflict between these Terms and Conditions, the Award Notice and the terms of the 2017 Plan, the provisions of the 2017 Plan will govern.  Capitalized terms used but not defined herein have the meaning provided therefor in the 2017 Plan.  

    2.    Vesting and Settlement; Dividend Equivalents.  Your right to receive the shares of Common Stock issuable pursuant to the Stock Units shall be only as follows:

(a)    Normal Vesting.  If you continue to be an Employee, you will receive the shares of Common Stock underlying the Stock Units that have become vested pursuant to the following vesting schedule (unless otherwise specified in Exhibit I):

						
	Vesting Date	Percentage of Stock Units Vesting
	First anniversary of the Measurement Date	25%
	Second anniversary of the Measurement Date	25%
	Third anniversary of the Measurement Date	25%
	Fourth anniversary of the Measurement Date	25%

(b)    Cause.  Notwithstanding anything to the contrary contained in these Terms and Conditions, if your Employer terminates your employment for Cause, your Stock Units, whether vested but unsettled or unvested, immediately shall terminate and be forfeited.

(c)    Disability and Death.  If you cease to be an Employee by reason of Disability or death prior to the date that your Stock Units become fully vested, you or your estate will become fully vested in your Stock Units, and you, your legal representative or your estate will receive all of the underlying shares of Common Stock.

(d)    Retirement.  If you cease to be an Employee by reason of Retirement prior to the date that your Stock Units become fully vested, you will continue to vest in your unvested Stock Units pursuant to Section 2(a) above and once vested, you will receive the underlying shares of Common Stock pursuant to the Stock Units that become vested hereunder following the originally 

Page 1
RSU Award
February 17, 2021
For Plan Year 2020 Performance

contemplated Vesting Date(s).  However, if you cease to be Retired from the Industry (as determined by the Committee in its sole discretion), any Stock Units (whether vested but unsettled or unvested) immediately shall terminate and be forfeited. Notwithstanding the foregoing, you will continue to vest in your unvested Stock Units pursuant to this Section 2(d) regardless of whether you cease to be Retired from the Industry if (i) your termination qualifies as a Mutual Agreement Termination, or (ii) a forfeiture upon your ceasing to be Retired from the Industry would violate applicable law. 

(e)    Mutual Agreement Termination.  If you cease to be an Employee prior to the date that your Stock Units become fully vested and your termination qualifies as a Mutual Agreement Termination, you will continue to vest in your unvested Stock Units pursuant to Section 2(a) above and once vested, you will receive the underlying shares of Common Stock pursuant to the Stock Units that become vested hereunder following the originally contemplated Vesting Date(s).

(f)    Other Termination Events.  If you cease to be an Employee prior to the date that your Stock Units become fully vested for any reason other than those provided above, you shall cease vesting in your Stock Units effective as of your Termination Date and any unvested Stock Units immediately shall terminate and be forfeited.

(g)    Form and Timing of Settlement.  Notwithstanding the foregoing, the Corporation may, in its sole discretion, settle your Stock Units in the form of: (i) a cash payment to the extent settlement in shares of Common Stock (1) is prohibited under local law, (2) would require you or the Corporation to obtain the approval of any governmental and/or regulatory body in your country of residence (and/or country of employment, if different) or (3) is administratively burdensome or (ii) shares of Common Stock, but require you to immediately sell such shares of Common Stock (in which case, the Corporation shall have the authority to issue sales instructions in relation to such shares of Common Stock on your behalf).  Also, the Stock Units shall be settled as soon as administratively practicable following the applicable Vesting Date (but in no event later than 60 days following the applicable Vesting Date).

(h)    Dividend Equivalents.  Upon the payment of any dividend on the shares of Common Stock occurring during the period preceding the settlement of your Stock Units pursuant to these Terms and Conditions, the Corporation shall credit to you an amount in cash equal in value to the dividends that you would have received had you been the actual owner of the number of shares of Common Stock represented by the Stock Units.  The payment of any dividend equivalents as provided herein shall be made as soon as administratively practicable following the originally contemplated Vesting Date(s) (but in no event later than 60 days following the applicable Vesting Date).

    3.    Treatment Upon Change in Control.  

(a)     General.  Except as may be otherwise provided in an agreement executed by the Corporation (and, where applicable, approved by the Corporation’s shareholders) addressing a Change in Control and which does not materially impair your rights under the Stock Units, your Stock Units shall be treated in accordance with the following provisions in the event of a Change in Control. 

Page 2
RSU Award
February 17, 2021
For Plan Year 2020 Performance

(b)    Conversion of Stock Units.  In the event of a Change in Control, the outstanding Stock Units (“Northern Trust Stock Units”) shall be converted into a Replacement Award.  Upon a Qualifying Termination, the Replacement Award shall become fully vested and the acquirer shall issue you shares of acquirer’s common stock in settlement of such Replacement Award as soon as administratively practicable following such Qualifying Termination (but in no event later than 60 days following the Qualifying Termination).  For purposes of the foregoing and to the extent possible, the conversion of Northern Trust Stock Units into a Replacement Award shall be effectuated in accordance with the applicable provisions of the Code (and the related Treasury Regulations) and the applicable provisions of the laws of your country of residence and/or country of employment such that the conversion is tax neutral and itself does not trigger a taxable event to you, the Corporation, your Employer or the acquirer.

(c)    Cashout of Stock Units.  In the event of a Change in Control where the acquirer does not convert Northern Trust Stock Units into a Replacement Award, the Corporation shall fully vest each Northern Trust Stock Unit immediately prior to the Change in Control, and then shall cancel each such vested Northern Trust Stock Unit in exchange for a cash payment equal to the aggregate consideration paid to each shareholder of one (1) share of Common Stock upon the Change in Control.  Such cash payment shall be made as soon as administratively practicable following the Change in Control (but in no event later than 60 days following the Change in Control) in such manner and in accordance with such procedures as the Committee may determine in its sole discretion.

4.    Legal and Tax Compliance; Cooperation.  If you are resident and/or employed outside of the United States, you agree, as a condition of the grant of the Stock Units, to repatriate all payments attributable to the shares of Common Stock and/or cash acquired under the 2017 Plan (including, but not limited to, dividends, dividend equivalents and any proceeds derived from the sale of the shares of Common Stock acquired pursuant to the Stock Units) if required by and in accordance with local foreign exchange rules and regulations in your country of residence (and/or country of employment, if different).  In addition, you also agree to take any and all actions, and consent to any and all actions taken by the Corporation and its Subsidiaries, as may be required to allow the Corporation and its Subsidiaries to comply with local laws, rules and regulations in your country of residence (and/or country of employment, if different).  Finally, you agree to take any and all actions as may be required to comply with your personal legal and tax obligations under local laws, rules and regulations in your country of residence (and/or country of employment, if different).

5.    Age Discrimination Rules.  If you are resident and/or employed in a country that is a member of the European Union, the grant of the Stock Units and these Terms and Conditions are intended to comply with the Age Discrimination Rules.  To the extent that a court or tribunal of competent jurisdiction determines that any provision of the Terms and Conditions are invalid or unenforceable, in whole or in part, under the Age Discrimination Rules, the Corporation, in its sole discretion, shall have the power and authority to revise or strike such provision to the minimum extent necessary to make it valid and enforceable to the full extent permitted under local law.

Page 3
RSU Award
February 17, 2021
For Plan Year 2020 Performance

6.    Withholding of Tax-Related Items.  

(a)    Regardless of any action the Corporation and/or your Employer take with respect to any or all Tax-Related Items, you acknowledge that the ultimate liability for all Tax-Related Items legally due by you is and remains your responsibility and that the Corporation and your Employer (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Stock Units, including the grant of the Stock Units, the vesting of the Stock Units, the subsequent sale of any shares of Common Stock acquired pursuant to the Stock Units and the receipt of any dividends or dividend equivalents and (ii) do not commit to structure the terms of the grant or any aspect of the Stock Units to reduce or eliminate your liability for Tax-Related Items.

(b)    Prior to the delivery of shares of Common Stock upon the vesting of your Stock Units, if your country of residence (and/or country of employment, if different) requires withholding of Tax-Related Items, the Corporation shall withhold a sufficient number of whole shares of Common Stock otherwise issuable upon the vesting of the Stock Units that have an aggregate Fair Market Value sufficient to pay the Tax-Related Items required to be withheld with respect to the shares of Common Stock. The cash equivalent of the shares of Common Stock withheld will be used to settle the obligation to withhold the Tax-Related Items.  In the event that withholding in shares of Common Stock is prohibited or problematic under applicable law or otherwise may trigger adverse consequences to the Corporation or your Employer, your Employer may withhold the Tax-Related Items required to be withheld with respect to the shares of Common Stock in cash from your regular salary and/or wages or any other amounts payable to you.  In the event the withholding requirements are not satisfied through the withholding of shares of Common Stock by the Corporation or through your regular salary and/or wages or other amounts payable to you by your Employer, no shares of Common Stock will be issued to you (or your estate) upon vesting of the Stock Units unless and until satisfactory arrangements (as determined by the Corporation) have been made by you with respect to the payment of any Tax-Related Items that the Corporation or your Employer determines, in its sole discretion, must be withheld or collected with respect to such Stock Units. 

(c)    By accepting these Stock Units, you expressly consent to the foregoing methods of withholding as provided for hereunder.  All other Tax-Related Items related to the Stock Units and any shares of Common Stock delivered in settlement thereof are your sole responsibility.

    7.    Code Section 409A.  

(a)    The Stock Units are intended to comply with or be exempt from the requirements of Code Section 409A.  The 2017 Plan and these Terms and Conditions shall be administered and interpreted in a manner consistent with this intent.  If the Corporation determines that these Terms and Conditions are subject to Code Section 409A and that they do not comply with or are inconsistent with the applicable requirements, the Corporation may, in its sole discretion, and without your consent, amend these Terms and Conditions to cause them to comply with Code Section 409A or be exempt from Code Section 409A.

Page 4
RSU Award
February 17, 2021
For Plan Year 2020 Performance

(b)    Notwithstanding any provision of these Terms and Conditions to the contrary, in the event that any settlement or payment of the Stock Units occurs as a result of your termination of employment and the Corporation determines that you are a “specified employee” (within the meaning of Code Section 409A) subject to Code Section 409A at the time of your termination of employment, and provided further that such payment or settlement does not otherwise qualify for an applicable exemption from Code Section 409A, then no such settlement or payment shall be paid to you until the date that is the earlier to occur of: (i) your death, or (ii) six (6) months and one (1) day following your termination of employment.  Any portion of the Stock Units where settlement is delayed as a result of the foregoing, which is (i) in whole or in part, settled in cash and (ii) based on the value of a share of Common Stock, shall be based on the value of a share of Common Stock at the time the Stock Units otherwise would have been settled or paid without application of the delay described in the foregoing sentence.  If the Stock Units do not otherwise qualify for an applicable exemption from Code Section 409A, the terms “Retirement,” “terminate,” “termination,” “termination of employment,” and variations thereof as used in these Terms and Conditions are intended to mean a “separation from service” as such term is defined under Code Section 409A.

(c)    Although these Terms and Conditions and the payments provided hereunder are intended to be exempt from or to otherwise comply with the requirements of Code Section 409A, the Corporation does not represent or warrant that these Terms and Conditions or the payments provided hereunder will comply with Code Section 409A or any other provisions of federal, state, local, or non-U.S. law.  Neither the Corporation, its Subsidiaries, your Employer or their respective directors, officers, employees or advisers shall be liable to you (or any other individual claiming a benefit through you) for any tax, interest, or penalties you may owe as a result of compensation paid under these Terms and Conditions, and the Corporation, its Subsidiaries and your Employer shall have no obligation to indemnify or otherwise protect you from the obligation to pay any taxes pursuant to Code Section 409A.

    8.    Forfeitures and Recoupment 

(a)    Recoupment Policy.  In addition to these Terms and Conditions, your Stock Units and any shares of Common Stock issued to you pursuant to the Stock Units shall be subject to the provisions of the Northern Trust Corporation Policy on Recoupment, as may be subsequently amended from time to time (the “Policy”).

(b)    Delegation of Authority to Corporation.  For purposes of the foregoing, you expressly and explicitly authorize the Corporation to issue instructions, on your behalf, to any brokerage firm and/or third party administrator engaged by the Corporation to hold your shares of Common Stock and other amounts acquired pursuant to your Stock Units to re-convey, transfer or otherwise return such shares of Common Stock and/or other amounts to the Corporation upon the Corporation's enforcement of the Policy.  To the extent that these Terms and Conditions and the Policy conflict, the terms of the Policy shall prevail.

9.    Nontransferability.  The Stock Units shall be transferable only by will or the laws of descent and distribution.  If you purport to make any transfer of the Stock Units, except as aforesaid, the Stock Units and all rights thereunder shall terminate immediately.

Page 5
RSU Award
February 17, 2021
For Plan Year 2020 Performance

10.    Securities Laws.  The Stock Units shall not be vested in whole or in part, and the Corporation shall not be obligated to issue any shares of Common Stock subject to the Stock Units, if such issuance would, in the opinion of counsel for the Corporation, violate the Securities Act of 1933 or any other U.S. federal, state or non-U.S. laws having similar requirements as may be in effect at the time. The Stock Units are subject to the further requirement that, if at any time the Board of Directors of the Corporation shall determine in its discretion that the listing or qualification of the shares of Common Stock subject to the Stock Units under any securities exchange requirements or under any applicable law, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition of or in connection with the issuance of shares of Common Stock pursuant to the Stock Units, the Stock Units may not be vested in whole or in part unless such listing, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Corporation.

11.    No Right of Continued Employment.  The grant of the Stock Units shall not confer upon you any right to continue in the employ of your Employer nor limit in any way the right of your Employer to terminate your employment at any time.  You shall have no rights as a shareholder of the Corporation with respect to any shares of Common Stock issuable upon the vesting of the Stock Units until the date of issuance of such shares of Common Stock.

12.     Discretionary Nature; No Vested Rights.  You acknowledge and agree that the 2017 Plan is discretionary in nature and may be amended, cancelled, or terminated by the Corporation, in its sole discretion, at any time.  The grant of the Stock Units under the 2017 Plan is a one-time benefit and does not create any contractual or other right to receive a grant of Stock Units or any other award under the 2017 Plan or other benefits in lieu thereof in the future.  Future grants, if any, will be at the sole discretion of the Corporation, including, but not limited to, the form and timing of any grant, the number of shares of Common Stock subject to the grant, and the vesting provisions. Any amendment, modification or termination of the 2017 Plan shall not constitute a change or impairment of the terms and conditions of your employment with your Employer.

13.    Extraordinary Benefit.  Your participation in the 2017 Plan is voluntary.  The value of the Stock Units and any other awards granted under the 2017 Plan is an extraordinary item of compensation outside the scope of your employment (and your employment contract, if any).  Any grant under the 2017 Plan, including the grant of the Stock Units, is not part of normal or expected compensation for purposes of calculating any severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension, or retirement benefits or similar payments.

14.    Heirs.  These Terms and Conditions shall bind and inure to the benefit of the Corporation, its successors and assigns, and you and your estate in the event of your death.

15.    Data Privacy.  The Corporation is located at 50 S. LaSalle Street, Chicago, Illinois 60603, United States of America, and grants Stock Units under the 2017 Plan to employees of the Corporation and its Subsidiaries in its sole discretion.  In conjunction with the Corporation’s grant of the Stock Units under the 2017 Plan and its ongoing administration of such awards, the Corporation 

Page 6
RSU Award
February 17, 2021
For Plan Year 2020 Performance

is providing the following information about its data collection, processing and transfer practices.  In accepting the grant of the Stock Units, you expressly and explicitly consent to the personal data activities as described herein.

(a)    Data Collection, Processing and Usage. The Corporation collects, processes and uses your personal data, including your name, home address, email address, telephone number, date of birth, social insurance number or other identification number, salary, citizenship, job title, any shares of Common Stock or directorships held in the Corporation, and details of all Stock Units or any other equity compensation awards granted, canceled, exercised, vested, or outstanding in your favor, which the Corporation receives from you or your Employer.  In granting the Stock Units under the 2017 Plan, the Corporation will collect your personal data for purposes of allocating shares of Common Stock and implementing, administering and managing the 2017 Plan.  The Corporation’s legal basis for the collection, processing and usage of your personal data is your consent.

(b)    Stock Plan Administration Service Provider. The Corporation transfers your personal data to Fidelity Stock Plan Services, LLC, an independent service provider based in the United States of America, which assists the Corporation with the implementation, administration and management of the 2017 Plan (the “Stock Plan Administrator”).  In the future, the Corporation may select a different Stock Plan Administrator and share your personal data with another company that serves in a similar manner.  The Stock Plan Administrator will open an account for you to receive and trade shares of Common Stock acquired under the 2017 Plan.  You will be asked to agree on separate terms and data processing practices with the Stock Plan Administrator, which is a condition to your ability to participate in the 2017 Plan.

(c)    International Data Transfers. The Corporation and the Stock Plan Administrator are based in the United States of America.  You should note that your country of residence may have enacted data privacy laws that are different from the United States of America. The Corporation’s legal basis for the transfer of your personal data to the United States of America is your consent.

(d)    Voluntariness and Consequences of Consent Denial or Withdrawal.  Your participation in the 2017 Plan and your grant of consent is purely voluntary.  You may deny or withdraw your consent at any time.  If you do not consent, or if you later withdraw your consent, you may be unable to participate in the 2017 Plan.  This would not affect your existing employment or salary; instead, you merely may forfeit the opportunities associated with the 2017 Plan.

(e)    Data Subjects Rights. You may have a number of rights under the data privacy laws in your country of residence.  For example, your rights may include the right to (i) request access or copies of personal data the Corporation processes, (ii) request rectification of incorrect data, (iii) request deletion of data, (iv) place restrictions on processing, (v) lodge complaints with competent authorities in your country of residence, and/or (vi) request a list with the names and addresses of any potential recipients of your personal data.  To receive clarification regarding your rights or to exercise your rights, you should contact privacy_compliance@ntrs.com.

Page 7
RSU Award
February 17, 2021
For Plan Year 2020 Performance

16.    Private Placement.  If you are a resident and/or employed outside of the United States, you acknowledge that the grant of the Stock Units is not intended to be a public offering of securities in your country of residence (and/or country of employment, if different).  You further acknowledge that the Corporation has not submitted any registration statement, prospectus or other filing with any securities authority other than the U.S. Securities and Exchange Commission with respect to the grant of the Stock Units, unless otherwise required under local law.  No employee of the Corporation is permitted to advise you on whether you should acquire shares of Common Stock under the 2017 Plan or provide you with any legal, tax or financial advice with respect to the grant of the Stock Units.  The acquisition of shares of Common Stock involves certain risks, and you should carefully consider all risk factors and tax considerations relevant to the acquisition of shares of Common Stock under the 2017 Plan and the disposition of them.  Further, you should carefully review all of the materials related to the Stock Units and the 2017 Plan, and you should consult with your personal legal, tax and financial advisors for professional advice in relation to your personal circumstances.

17.    Governing Law.  All questions concerning the construction, validity and interpretation of the Stock Units and the 2017 Plan shall be governed and construed according to the laws of the state of Delaware, without regard to the application of the conflicts of laws provisions thereof.  Any disputes regarding the Stock Units or the 2017 Plan shall be brought only in the state or federal courts of the state of Delaware.

18.    Electronic Delivery.  The Corporation may, in its sole discretion, decide to deliver any documents related to the Stock Units or other awards granted to you under the 2017 Plan by electronic means.  You hereby consent to receive such documents by electronic delivery and agree to participate in the 2017 Plan through an on-line or electronic system established and maintained by the Corporation or a third party designated by the Corporation.

19.    Severability.  The invalidity or unenforceability of any provision of the 2017 Plan or these Terms and Conditions shall not affect the validity or enforceability of any other provision of the 2017 Plan or these Terms and Conditions.  

20.    English Language.  If you are resident and/or employed outside of the United States, you acknowledge and agree that it is your express intent that these Terms and Conditions, the 2017 Plan and all other documents, notices and legal proceedings entered into, given or instituted pursuant to the Stock Units be drawn up in English.  If you have received these Terms and Conditions, the 2017 Plan or any other documents related to the Stock Units translated into a language other than English and the meaning of the translated version is different than the English version, the English version will control.  

21.    Addendum.  Notwithstanding any provisions of these Terms and Conditions to the contrary, the Stock Units shall be subject to any special terms and conditions for your country of residence (and/or country of employment, if different) set forth in an addendum to these Terms and Conditions (an “Addendum”).  Further, if you transfer your residence and/or employment to another country reflected in an Addendum to these Terms and Conditions at the time of transfer, the special terms and conditions for such country will apply to you to the extent the Corporation determines, in 

Page 8
RSU Award
February 17, 2021
For Plan Year 2020 Performance

its sole discretion, that the application of such special terms and conditions is necessary or advisable in order to comply with local law, rules and regulations or to facilitate the operation and administration of the Stock Units and the 2017 Plan (or the Corporation may establish alternative terms and conditions as may be necessary or advisable to accommodate your transfer).  In all circumstances, any applicable Addendum shall constitute part of these Terms and Conditions.

22.    Insider Trading.  By participating in the 2017 Plan, you expressly agree to comply with the Corporation’s Securities Transactions Policy and Procedures and any other of its policies regarding insider trading or personal account dealing applicable to you. Further, you expressly acknowledge and agree that, depending on the country of residence of you or your broker, or where the shares of Common Stock are listed, you may be subject to insider trading restrictions and/or market abuse laws which may affect your ability to accept, acquire, sell or otherwise dispose of shares of Common Stock, rights to shares of Common Stock (e.g., Stock Units) or rights linked to the value of the shares of Common Stock, during such times you are considered to have material non-public information, “inside information” or similar types of information regarding the Corporation as defined by laws or regulations in the applicable country. Local insider trading laws and regulations may prohibit the cancellation or amendment of orders you place before you possessed such information.  Furthermore, you may be prohibited from (a) disclosing such information to any third party (other than on a “need to know” basis) and (b) “tipping” third parties or causing them otherwise to buy or sell securities (including other employees of the Corporation and its Subsidiaries). Any restriction under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Corporation policies. You expressly acknowledge and agree that it is your responsibility to comply with any applicable restrictions, and you should consult your personal advisor for additional information on any trading restrictions that may apply to you.

23.    Additional Requirements; Amendments.  The Corporation reserves the right to impose other requirements on the Stock Units, any shares of Common Stock acquired pursuant to the Stock Units and your participation in the 2017 Plan to the extent the Corporation determines, in its sole discretion, that such other requirements are necessary or advisable in order to comply with local law, rules and regulations or to facilitate the operation and administration of the Stock Units and the 2017 Plan.  Such requirements may include (but are not limited to) requiring you to sign any agreements or undertakings that may be necessary to accomplish the foregoing. In addition, the Corporation reserves the right to amend these Terms and Conditions, without your consent, either prospectively or retroactively, to the extent that such amendment does not materially impair your rights under the Stock Units. 

24.     Definitions.  For purposes of these Terms and Conditions:

(a)    “Age Discrimination Rules” means the age discrimination provisions of the EU Equal Treatment Framework Directive, as implemented into local law.

(b)    “Cause” means (i) a material breach or your willful and substantial non-performance of your assigned duties and responsibilities (other than as a result of incapacity due to physical or mental illness), (ii) a conviction of or no contest plea with respect to bribery, extortion, 

Page 9
RSU Award
February 17, 2021
For Plan Year 2020 Performance

embezzlement, fraud, grand larceny, or any felony or similar conviction under local law involving abuse or misuse of your position to seek or obtain an illegal or personal gain at the expense of the Corporation, your Employer or any Subsidiary, or similar crimes, or conspiracy to commit any such crimes or attempt to commit any such crimes, (iii) your violation of any policy of the Corporation, your Employer or any of its Subsidiaries to which you may be subject or your willful engagement in any misconduct in the performance of your duties that materially injures the Corporation, your Employer or any of its Subsidiaries, (iv) your performance of any act which, if known to the customers, clients, stockholders or regulators of the Corporation, your Employer or any of its Subsidiaries, would materially and adversely impact the business of the Corporation, your Employer or any of its Subsidiaries, or (v) any act or omission by you that causes a regulatory body with jurisdiction over the Corporation, your Employer or any of its Subsidiaries, to demand, request, or recommend that you be suspended or removed from any position in which you serve with the Corporation, your Employer or any of its Subsidiaries. 

(c)    “Continuous Years of Service” means the period of your continuous and uninterrupted employment with your Employer commencing on your most recent hire date with your Employer through your Termination Date.  For the sake of clarity, if your employment with the Corporation or a Subsidiary terminated and you have been rehired by your Employer, your Continuous Years of Service shall not be determined by aggregating your periods of employment with the Corporation or a Subsidiary.

(d)    “Disability” means (i) if you are covered under the Northern Trust Corporation Managed Disability Program, a covered disability that continues for a period of at least six (6) months, or (ii) if you are not covered under the Northern Trust Corporation Managed Disability Program, a disability as determined by the Committee in its sole discretion.

(e)     “Employer” means the Corporation or any Subsidiary that employs you on the applicable date.

(f)    “Grant Date” means the date of grant reflected in your Award Notice.

(g)    “Measurement Date” means the first day of the month following the month in which the Grant Date falls.

(h)    “Mutual Agreement Termination” means (i) a termination pursuant to the Northern Trust Corporation Severance Plan, (ii) a termination pursuant to an established country redundancy or severance policy (outside of the United States), or (iii) any other termination without Cause by your Employer providing transition/separation pay, provided in each case that in conjunction with such termination, you have executed, and not revoked during the period provided for therein, a binding and effective settlement agreement, waiver and release.

(i)    “Qualifying Termination” means a termination of employment with the Corporation, its Subsidiaries and its successors within 24-months following the date of the Change in Control, that is involuntary on your part and does not otherwise (i) qualify as a Retirement or Mutual 

Page 10
RSU Award
February 17, 2021
For Plan Year 2020 Performance

Agreement Termination, (ii) result from your death or Disability, or (iii) constitute a termination of employment for Cause.

(j)    “Retired from the Industry” means a termination of employment under circumstances that constitute Retirement, and you (i) do not thereafter perform services as an employee, officer, director or consultant for, or in any other capacity assist, any entity (other than the Corporation or a Subsidiary), whether existing or in formation, that provides or plans to provide services the same as, substantially similar to, or in direct or indirect competition with those offered by the Corporation or any Subsidiary and which you rendered on behalf of the Corporation or any Subsidiary during your tenure of employment, including but not limited to, those relating to trust, investment management, financial and family business consulting, guardianship and estate administration, brokerage services, private and commercial banking, asset management, custody, fund administration, investment operations outsourcing, investment risk and analytical services, employee benefit services, securities lending, foreign exchange, treasury and cash management, and transition management services, and (ii) on an annual basis certify to the Corporation, at such times and in such manner as the Committee may require, that since your Retirement, you have not performed any such services.  The foregoing notwithstanding, service as a director of an entity described above which has been approved in writing by the Committee prior to the commencement of such service shall not, in and of itself, constitute the cessation of being Retired from the Industry. 

(k)    “Retirement” means a termination of employment without Cause (other than on account of death or Disability) occurring on or after the date (i) you have attained age 55, and (ii) the sum of your age (in whole years, rounded down to the nearest year) and Continuous Years of Service (in whole years, rounded down to the nearest year) equals or exceeds 65.  For purposes of these Terms and Conditions, any Retirement shall become effective on the first day of the month following the month in which you satisfy the provisions hereunder.

(l)    “Tax-Related Items” means any income tax (including U.S. federal, state and local taxes or non-U.S. taxes), social insurance, payroll tax, payment on account or other tax-related withholding amounts.

(m)    “Termination Date” means the effective date of termination of your employment with your Employer, as determined by your Employer (in its discretion).

(n)    “Vesting Date” means each date on which you acquire a non-forfeitable right in a Stock Unit as reflected in Section 2.

25.    Exclusion of Claim. You acknowledge and agree that you will have no entitlement to compensation or damages in consequence of the termination of your employment with the Corporation and your Employer for any reason whatsoever and whether or not in breach of contract, insofar as any purported claim to such entitlement arises or may arise from your ceasing to have rights under or to be entitled to vest in the Stock Units as a result of such termination of employment (whether the termination is in breach of contract or otherwise), or from the loss or diminution in value of the Stock Units.  Upon the grant of the Stock Units, you shall be deemed irrevocably to have waived any such entitlement.

Page 11
RSU Award
February 17, 2021
For Plan Year 2020 Performance

26.    Acceptance.  By accepting the grant of the Stock Units, you affirmatively and expressly acknowledge that you have read these Terms and Conditions, the Award Notice, the Addendum to these Terms and Conditions (as applicable) and the 2017 Plan, and specifically accept and agree to the provisions therein. You also affirmatively and expressly acknowledge that the Corporation, in its sole discretion, may amend these Terms and Conditions without your consent, either prospectively or retroactively, to the extent that such amendment does not materially impair your rights under the Stock Units, and you agree to be bound by such amendment regardless of whether notice is given to you of such change. 

*          *          *          *          *

Page 12
RSU Award
February 17, 2021
For Plan Year 2020 Performance

Exhibit I

Alternative Vesting Schedule

						
	Vesting Date	Percentage of Stock Units Vesting
	Not Applicable

Page 13
RSU Award
February 17, 2021
For Plan Year 2020 PerformanceDocument

						
	
	FIRST REPUBLIC BANK
It’s a privilege to serve you®

EXECUTION VERSION

THIRD AMENDMENT TO TERM
LOAN AND SECURITY AGREEMENT

This THIRD AMENDMENT TO TERM LOAN AND SECURITY AGREEMENT (“Amendment”) is entered into as of April 22, 2021 by and between FIRST REPUBLIC BANK (“Lender”) and HAMILTON LANE ADVISORS, L.L.C. a Pennsylvania limited liability company (“Borrower”).
Recitals
    A.    Borrower and Lender are parties to that certain Term Loan and Security Agreement dated August 23, 2017, as amended by that certain First Amendment to Term Loan and Security Agreement dated as of March 24, 2020 and that certain Second Amendment to Term Loan and Security Agreement dated as of September 30, 2020 and as further amended, restated, supplemented or otherwise modified from time to time (the “Loan Agreement”).  The parties desire to amend the Loan Agreement in accordance with the terms of this Amendment.  
Agreement
    Now, Therefore, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:
1.Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement.
2.The definition of “Adjusted EBITDA” set forth in Section 13 of the Loan Agreement is hereby amended and restated in their entirety to read as follows:
“Adjusted EBITDA” means the net income of the Borrower and its consolidated subsidiaries excluding interest expenses, income tax expenses, depreciation and amortization, equity based compensation expense, other non-operating income (loss), and transaction costs and expenses related to an IPO, acquisitions and refinancings, non-cash changes in fund portfolio valuations, gains or losses related to SPAC assets and other non-cash expenses.

3.Each of the following definitions are hereby incorporated in Section 13 of the Loan Agreement in the appropriate alphabetical sequence:
“Additional Advance” has the meaning provided in Section 2.1.1. 
“Additional Amount” means the portion of each Additional Advance that would have been repaid pursuant to the amortization table set forth on Schedule II hereof if such Additional Advance had been advanced prior to July 1, 2020.
“Additional Committed Term Advance” has the meaning provided in Section 2.1.1. 
“Additional Uncommitted Term Advance” has the meaning provided in Section 2.1.1.
“Third Amendment Effective Date” means April 22, 2021.
1

4.Section 2.1.1 of the Loan Agreement is hereby amended and restated in its entirety to read as follows:
“2.1.1  Term Advances. Subject to the terms and conditions of this Agreement, (i) on the Effective Date the Lender advanced $75,000,000 (the “Initial Term Advance”) to Borrower (ii) on the First Amendment Effective Date, the Lender advanced $9,154,427.08 (the “Incremental Term Advance”); (iii) from the First Amendment Effective Date through March 24, 2023, Borrower may request advances at the sole discretion of the Lender (each, an “Additional Uncommitted Term Advance”), each Additional Uncommitted Term Advance collectively not exceeding $25,000,000; and (iv) from the Third Amendment Effective Date through March 24, 2023, Borrower may request advances and, provided that no Event of Default has occurred and is continuing or would result from the requested advance, the Lender shall make such advance (each, an “Additional Committed Term Advance” and, collectively with the Initial Term Advance, the Incremental Term Advance and each Additional Uncommitted Term Advance, “Facility I” or the “Term Advances”), each Additional Committed Term Advance collectively not exceeding $25,000,000 (the Additional Uncommitted Term Advance and the Additional Committed Term Advance, collectively, the “Additional Advances”).  As a condition precedent to any Additional Uncommitted Term Advance, Borrower and Lender shall agree to such additional terms and amendments hereto as are needed to facilitate such proposed Additional Uncommitted Term Advance, as applicable.  In connection with each Additional Advance, Lender shall update Schedule II to reflect a straight line amortization of all Additional Amounts as of such date; for the avoidance of doubt, such amortization shall evenly distribute the aggregate principal amount of all Additional Amounts across each of the remaining quarterly repayment dates.  After repayment, no Term Advance may be reborrowed.  Borrower shall make interest-only payments from the date of each Term Advance through, but excluding, July 1, 2020 (the “Amortization Date”).  Beginning with the payment due on the Amortization Date, Borrower shall repay the Term Advances (for avoidance of doubt, including the portion of the Additional Advances that do not constitute Additional Amounts) (i) on the first calendar day of each calendar quarter in installments of principal as set forth in Schedule II hereof plus (ii) monthly payments of accrued interest.  All unpaid principal and interest on each Term Advance shall be due on July 1, 2027 (the “Term Maturity Date”). To obtain a Term Advance, Borrower shall notify Lender by delivering to Lender the Payment/Advance Form attached as Exhibit B by facsimile or electronic mail in portable document format (PDF) by 12:00 p.m. Pacific time on the Business Day before the Business Day that the Term Advance is to be made.  Lender will credit Term Advances to Borrower’s deposit Account with Lender, as defined in Section 2.2(d).  Lender may make Term Advances under this Agreement based on instructions from a Designated Representative or his or her designee or without instructions if the Term Advances are necessary to meet Obligations that have become due.”

5.Section 2.3 of the Loan Agreement is hereby amended and restated in its entirety to read as follows:
“2.3    Fees.  Borrower will pay:
(a) Incremental Term Advance Fee.  A fully earned, non-refundable facility fee in the amount agreed upon by the Borrower and the Lender on the First Amendment Effective Date; 
2

(b) Additional Uncommitted Term Advance Fee. A fully earned, non-refundable facility fee, equal to the amount agreed upon by the Borrower and the Lender on the First Amendment Effective Date, on the date each such Additional Uncommitted Term Advance is made; 
(c) Additional Committed Term Advance Fee. A fully earned, non-refundable facility fee, equal to (i) $10,000 plus (ii) an amount equal to 0.30% multiplied by the amount of the applicable Additional Committed Term Advance, on the date each such Additional Committed Term Advance is made;
(d) Unused Fee.  A per annum fee equal to 0.25% multiplied by the difference between the Additional Committed Term Advance available to be drawn and the average daily amount of the Additional Committed Term Advance actually drawn during the applicable calendar quarter, which fee shall accrue through the end of each calendar quarter and shall be payable in arrears on the 10th of each January, April, July and October and shall be non-refundable. Such fee shall be computed on a 365 day year for the actual number of days elapsed; and
(e) Lender Expenses.  Upon demand by Lender, all Lender Expenses reasonably incurred after the Effective Date.”
6.Clause (b) of the last sentence of Section 10 of the Loan Agreement is hereby amended and restated in its entirety to read as follows:
“(b) for Borrower, (i) until June 7, 2021, Hamilton Lane Advisors, L.L.C., One Presidential Blvd., 4th Floor, Bala Cynwyd, PA 19004 and (ii) from and after June 7, 2021, Hamilton Lane Advisors, L.L.C., 110 Washington Street, Conshohocken, PA 19428.”
7.Exhibit A to the Loan Agreement is hereby amended and restated in its entirety in the form set forth hereto as Exhibit A.
8.Exhibit D to the Loan Agreement is hereby amended and restated in its entirety in the form set forth hereto as Exhibit D.
9.Schedule II to the Loan Agreement is hereby amended and restated in its entirety in the form set forth hereto as Schedule II.
10.The Loan Agreement, as amended hereby, shall be and remain in full force and effect in accordance with its terms and hereby is ratified and confirmed in all respects.  Except as expressly set forth herein, the execution, delivery, and performance of this Amendment shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of any party under the Loan Agreement, as in effect prior to the date hereof.  Borrower ratifies and reaffirms the continuing effectiveness of all promissory notes, guaranties, security agreements, mortgages, deeds of trust, environmental agreements, and all other instruments, documents and agreements entered into in connection with the Loan Agreement in each case as amended to date, including any amendments made substantially concurrently with this Amendment.
11.Borrower represents and warrants that the representations and warranties contained in the Loan Agreement are true and correct as of the date of this Amendment and that, upon execution and delivery of this Amendment, no Event of Default has occurred and is continuing.
12.This Amendment may be executed in counterparts, each of which shall constitute an original, and all of which together shall constitute one and the same agreement.  A signed copy of this Amendment transmitted by a party to another party via facsimile or an emailed “pdf” version shall be binding on the signatory thereto.  Notwithstanding the delivery of the faxed or emailed copy, the Credit Parties agree to deliver to Lender original executed copies of this Amendment.
3

13.As a condition to the effectiveness of this Amendment, Lender shall have received, in form and substance satisfactory to Lender, the following:
(a)    Formal credit approval by First Republic Bank;
(b)    this Amendment duly executed by the Borrower;
(c)    payment of all fees and Lender Expenses through the date hereof; and
(d)    such other documents, and completion of such other matters, as Lender may reasonably deem necessary or appropriate.

[Signatures on following page.]

4

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first written above.
									
	BORROWER:
	HAMILTON LANE ADVISORS, L.L.C.
			
			
	By:		/s/ Atul Varma
			Name: Atul Varma
			Title: Chief Financial Officer

									
	LENDER:
	FIRST REPUBLIC BANK
			
			
	By:		/s/ Scott Aleali
			Title: Practice Leader

EXHIBIT A

1.Financial Statements.  Borrower shall deliver to Lender (a) annual financial statements (including balance sheet and income statements) for Hamilton Lane Incorporated, which financial statements shall be audited by Ernst & Young LLP or other independent certified public accountant reasonably acceptable to Lender and (b) company-prepared annual financial statements (including balance sheet and income statements) for Borrower, in each case within ninety (90) days after the end of each of Borrower’s fiscal years.
2.Financial Statements.  Borrower shall deliver to Lender annual financial statements (including balance sheet and income statements) within one hundred eighty (180) days after the end of each Fund’s fiscal years for such Fund (in each case, to the extent such Fund accounts for 5% or more of Borrower’s aggregate  revenue as of the end of the most recently completed fiscal year, and with respect to all other Funds, upon the request of the Lender), which financial statements shall be audited by an independent certified public accountant reasonably acceptable to Lender.
3.Interim Financial Statements.  Borrower shall deliver to Lender company-prepared quarterly financial statements (including balance sheet and income statements) within forty-five (45) days after the end of each quarter referenced below certified by Borrower’s chief financial officer or another officer or representative acceptable to Lender.  Quarterly financials shall be delivered for the first three (3) fiscal quarters.
4.Compliance Certificate.  Within forty-five (45) days after the end of the first three (3) fiscal quarters and  ninety (90) days after the end of each of Borrower’s fiscal years, deliver to Lender a Compliance Certificate signed by a Designated Representative in the form of Exhibit D. 
5.Other Financial Statements.  Upon filing of any financial statements or reporting as required to be publicly filed by Borrower, a copy of such financial statement or reporting.
6.Flexibility Actions.  Borrower shall give written notice to Lender of any Flexibility Action promptly after such Flexibility Action is taken.  Any Flexibility Action taken by Borrower will be deemed a representation by Borrower that the conditions precedent therefore were satisfied.
7.Minimum Annual Management Fees.  Borrower shall, as at each March 31 and September 30 (each a “test date”) have collected for the six month period ending on such test date, on a consolidated basis, Fund Management Fees equal to the greater of (a) $100,000,000 and (b) an amount equal to 80% of the collected sum of contractually based Fund Management Fees, for the immediately preceding six month period, tested semi-annually; provided that with respect to the financial statements dated as of March 31, 2021, clause (a) above shall be deemed to be $87,500,000.
8.Minimum Adjusted EBITDA.  Borrower shall, as at each March 31 and September 30 (each a “test date”) maintain at least a minimum trailing six month Adjusted EBITDA minus dividend distributions (other than tax distributions), as at such test date, equal to the greater of (a) $50,000,000 and (b) an amount equal to 80% of the trailing six month Adjusted EBITDA minus dividend distributions (other than tax distributions), for the immediately preceding six month period, tested semi-annually; provided that with respect to the financial statements dated as of March 31, 2021, clause (a) above shall be deemed to be $40,000,000; provided further that, solely with respect to the 

test date with respect to the financial statements dated as of September 30, 2021, clause (b) above shall be disregarded when determining compliance with this covenant.
9.Minimum Tangible Net Worth.  Minimum Tangible Net Worth shall be greater than or equal to the amount set forth in the column “Tangible Net Worth” as at the end of the applicable fiscal year.

						
	Fiscal year	Tangible Net Worth
	2019	$39,700,000
	2020	$100,000,000
	2021	$110,000,000
	2022	$150,000,000
	2023	$165,000,000
	2024	$180,000,000
	2025	$200,000,000
	2026	$220,000,000
	2027	$240,000,000
	2028	$265,000,000
	2029	$290,000,000

10.No Additional Indebtedness.  Without the prior written consent of Lender, Borrower (a) shall not directly or indirectly incur Indebtedness for borrowed money excluding (i) debts as of the date of this Agreement that were previously disclosed in writing to Lender (other than those that are being paid substantially concurrently with the funding of the Loan), (ii) other borrowing from Lender, including for the avoidance of doubt Facility II and Facility III, (iii) unsecured debt incurred in the normal course of business and for the avoidance of doubt, (iv) purchase money debt and capital leases in the ordinary course of business, and (b) shall not directly or indirectly make, create, incur, assume or permit to exist any guaranty of any kind of any Indebtedness of any other person during the term of this Agreement, excluding any guaranties as of the date of this Agreement previously disclosed in writing to Lender.
11.Notification of Transfers.  Borrower shall notify Lender within 30 days of any transfer of Partner’s interests in any Funds whose Capital Commitment is greater than $10,000,000.

EXHIBIT D

COMPLIANCE CERTIFICATE

TO:        First Republic Bank                    Date:              

FROM:      Hamilton Lane Advisors, L.L.C. 
1.The undersigned authorized officer certifies on behalf of Borrower that under the terms and conditions of the Term Loan and Security Agreement between Borrower and Lender (the “Agreement”), (1) Borrower is in complete compliance for the period ending _______________ with all required covenants except as noted below, (2) there are no Events of Default, (3) all representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below.  Attached are the required documents supporting the certification.  The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes.  The undersigned acknowledges that no Credit Extensions may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement.  Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement.
									
	Please indicate compliance status by circling Yes/No under “Complies” column.
	
	Reporting Covenant	Required	Complies
	Internally prepared financial statement	Quarterly within 45 days (other than Q4)	Yes   No
	Annual financial statement (Borrower)	FYE within 90 days	Yes   No
	Annual financial statement (Funds)	FYE within 180 days	Yes   No
	Partnership interest transfer (>$10,000,000)
	Within 30 days from transfer	Yes   No
	List of Capital Contributions delinquent for more than 30 days (>$1,000,000)
	Immediately	Yes   No
	Compliance certificate	[Annually][Quarterly] within [90][45] days	Yes   No
	Flexibility Action taken?  Yes   No	If Yes, provide amount:: $[__________]	Under Flexibility Cap? Yes   No

												
	Financial Covenant	Required	Actual	Complies
	Minimum Annual Management Fees	Greater of (a) $100,000,000 (or $87,500,000 with respect to the financial statements dated as of March 31, 2021) and (b) an amount equal to 80% of the collected sum of contractually based Fund Management Fees, for the immediately preceding six month period (semiannual)	$_____	Yes    No
	No Additional Debt	None	$_____	Yes    No
	Minimum Adjusted EBITDA less dividends (other than tax dividends)	Greater of (a) $50,000,000 (or $40,000,000 with respect to the financial statements dated as of March 31, 2021) and (b) an amount equal to 80% of the trailing six month Adjusted EBITDA minus dividend distributions (other than tax distributions), for the immediately preceding six month period (semiannual) (provided, that solely with respect to the test date with respect to the financial statements dated as of September 30, 2021, clause (b) shall be disregarded when determining compliance	$_____	Yes    No
	Minimum Tangible Net Worth	$_____	$_____	Yes    No

---------------------------------------------------------------------------------------------------------------------------------------

HAMILTON LANE ADVISORS, L.L.C.
    
By: __________________________________
    
Name:________________________________
    
Title:_________________________________

Schedule II to Term Loan and Security Agreement

									
	Payment Date	Percentage of aggregate Original Term Advances to be paid	Additional Amounts to be paid
	July 1, 2020	0.625%	$0.00
	October 1, 2020	0.625%	$0.00
	January 1, 2021	0.625%	$0.00
	April 1, 2021	0.625%	$0.00
	July 1, 2021	0.625%	$0.00
	October 1, 2021	0.625%	$0.00
	January 1, 2022	0.625%	$0.00
	April 1, 2022	0.625%	$0.00
	July 1, 2022	0.625%	$0.00
	October 1, 2022	0.625%	$0.00
	January 1, 2023	0.625%	$0.00
	April 1, 2023	0.625%	$0.00
	July 1, 2023	1.875%	$0.00
	October 1, 2023	1.875%	$0.00
	January 1, 2024	1.875%	$0.00
	April 1, 2024	1.875%	$0.00
	July 1, 2024	2.5%	$0.00
	October 1, 2024	2.5%	$0.00
	January 1, 2025	2.5%	$0.00
	April 1, 2025	2.5%	$0.00
	July 1, 2025	6.25%	$0.00
	October 1, 2025	6.25%	$0.00
	January 1, 2026	6.25%	$0.00
	April 1, 2026	6.25%	$0.00
	July 1, 2026	12.5%	$0.00
	October 1, 2026	12.5%	$0.00
	January 1, 2027	12.5%	$0.00
	April 1, 2027	12.5%	$0.00

1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00326-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00326-of-00352.parquet"}]]