Document:

Exhibit 4.2

 

AMERICAN FINANCIAL GROUP, INC.

Issuer

 

TO

 

U.S. BANK NATIONAL ASSOCIATION

Trustee

 

EIGHTH SUPPLEMENTAL INDENTURE

 

DATED AS OF JUNE 2, 2017

 

4.500% SENIOR NOTES

 

DUE JUNE 15, 2047

 

     

     

    

 

TABLE OF CONTENTS1

 

	 	 	Page
	 	 	 
	Article I 	4.500% SENIOR NOTES	1
	Section 1.01	Establishment	1
	Section 1.02	Definitions	2
	Section 1.03	Payment of Principal and Interest.	2
	Section 1.04	Denominations	3
	Section 1.05	Global Securities	3
	Section 1.06	Redemption at the Option of the Company	3
	Section 1.07	Governing Law	5
	Section 1.08	Registration, Registration of Transfer and Exchange	5
	Section 1.09	Title; Payment and Terms	7
	Section 1.10	Mutilated, Destroyed, Lost and Stolen Debt Securities.	7
	Section 1.11	Events of Default.	8
	Section 1.12	Acceleration of Maturity; Rescission and Annulment.	10
	Section 1.13	Acceptance of Appointment by Successor.	11
	Section 1.14	Supplemental Indentures With Consent of Holders	11
	Section 1.15	Maintenance of Properties	12
	Section 1.16	Corporate Existence.	12
	Section 1.17	Limitations on Liens.	13
	Section 1.18	Debt Securities Redeemed in Part.	13
	 	 	 
	Article II 	MISCELLANEOUS PROVISIONS	14
	Section 2.01	Recitals by Company	14
	Section 2.02	Ratification and Incorporation of Indenture; Application of Eighth Supplemental Indenture to other Series of Debt Securities.	14
	Section 2.03	Executed in Counterparts.	14

 

 

1 This Table of Contents does not
constitute part of the Indenture or have any bearing upon the interpretation of any of its terms and provisions.

 

     

     

    

 

 

THIS EIGHTH SUPPLEMENTAL INDENTURE is made as
of the 2nd day of June, 2017, among AMERICAN FINANCIAL GROUP, INC., an Ohio corporation, Great American Insurance Group Tower,
301 East Fourth Street, Cincinnati, Ohio 45202 (the “Company”), and U.S. BANK NATIONAL ASSOCIATION, (formerly known
as Star Bank, N.A.) a national banking association, as trustee (the “Trustee”).

 

WITNESSETH:

 

WHEREAS, the Company has entered into an indenture,
dated as of November 12, 1997, as supplemented by this Eighth Supplemental Indenture (collectively, the “Indenture”)
with U.S. Bank National Association, as trustee;

 

WHEREAS, the Indenture is incorporated herein
by this reference;

 

WHEREAS, under the Indenture, a new series of
Debt Securities may at any time be established by the Board of Directors of the Company in accordance with the provisions of the
Indenture and the conditions, limitations and restrictions on the terms of such series may be established by a supplemental indenture
executed by the Company and the Trustee;

 

WHEREAS, the Company proposes to create under
the Indenture a new series of Debt Securities;

 

WHEREAS, additional Debt Securities of other
series hereafter established, except as may be limited in the Indenture as at the time supplemented and modified, may be issued
from time to time pursuant to the Indenture as at the time supplemented and modified, and that such series of Debt Securities hereafter
established or any series of Debt Securities established prior to the date hereof shall not be subject to the provisions of this
Eighth Supplemental Indenture unless expressly provided in the Board Resolution, supplemental indenture or other documentation,
as permitted by the Indenture, establishing such series of Debt Securities; and

 

WHEREAS, all conditions necessary to authorize
the execution and delivery of this Eighth Supplemental Indenture and to make it a valid and binding obligation of the Company have
been done or performed.

 

NOW, THEREFORE, in consideration of the agreements
and obligations set forth herein and for other good and valuable consideration, the sufficiency of which is hereby acknowledged,
the parties hereto hereby agree as follows:

 

Article
I

4.500% SENIOR NOTES

 

Section 1.01         Establishment.
There is hereby established a new series of Debt Securities to be issued under the Indenture, to be designated as the Company’s
4.500% Senior Notes due June 15, 2047 (the “Senior Notes”).

 

There are to be authenticated and delivered
Senior Notes, initially limited in aggregate principal amount of $350,000,000, and no further Senior Notes shall be authenticated
and delivered except as provided by Section 2.1, 3.5, 3.6, 9.6 and 11.7 of the Indenture; provided further, that the aggregate
principal amount of the Senior Notes may be increased in the future, without the consent of the Holders of the Senior Notes, on
the same tenor and terms and with the same CUSIP number as the Senior Notes (including, without limitation, rights to receive accrued
and unpaid interest as the Senior Notes then outstanding), so that such further Senior Notes shall be consolidated with, form a
single series with and increase the aggregate principal amount of the Senior Notes, provided that such further Senior Notes are
fungible for U.S. federal income tax purposes with such previously issued Senior Notes. The Senior Notes shall be issued in definitive
fully registered form.

 

     

     

    

 

The Senior Notes shall be issued in the form
of one Global Security in substantially the form set out in Exhibit A hereto. The U.S. Depositary with respect to the Senior Notes
shall be The Depository Trust Company.

 

The form of the Trustee’s Certificate
of Authentication for the Senior Notes shall be in substantially the form set forth in Exhibit B hereto.

 

Each Senior Note shall be dated the date of
authentication thereof and shall bear interest from the date of original issuance thereof or from the most recent Interest Payment
Date to which interest has been paid or duly provided for.

 

Section 1.02         Definitions.
(a) The following defined terms used herein shall, unless the context otherwise requires, have the meanings specified below. Capitalized
terms used herein for which no definition is provided herein shall have the meanings set forth in the Indenture.

 

“Final Maturity” means June 15,
2047.

 

“Interest Payment Date” means June
15 and December 15 of each year.

 

“Place of Payment” means New York,
New York.

 

“Regular Record Date” means June
1 and December 1; as the case may be, next preceding the relevant Interest Payment Date.

 

Section 1.03         Payment
of Principal and Interest. The entire outstanding principal amount of the Senior Notes shall be due and payable, unless accelerated,
redeemed or required to be repurchased pursuant to the Indenture, at Final Maturity. The unpaid principal amount of the Senior
Notes shall bear interest at the rate of 4.500% per annum until paid or duly provided for. Interest shall be paid semi-annually
in arrears on each Interest Payment Date, commencing December 15, 2017, to the Person in whose name the Senior Notes are registered
on the Regular Record Date for such Interest Payment Date, provided that interest payable at Final Maturity will be paid to the
Person to whom principal is payable. Any such interest that is not so punctually paid or duly provided for will forthwith cease
to be payable to the Holders on such Regular Record Date and may be paid as provided in Section 3.7 of the Indenture.

 

Payments of interest on the Senior Notes will
include interest accrued to but excluding the respective Interest Payment Dates. Interest payments for the Senior Notes shall be
computed and paid on the basis of a 360-day year of twelve 30-day months. In the event that any date on which interest is payable
on the Senior Notes is not a Business Day, then a payment of the interest payable on such date will be made on the next succeeding
day that is a Business Day, except that, notwithstanding Section 1.13 of the Indenture, if such Business Day is in the next succeeding
calendar year, such payment shall be made on the immediately preceding Business Day, in each case with the same force and effect
as if made on the date the payment was originally payable. No interest will accrue due to any delay in payment on the amount so
payable for the period from such Interest Payment Date to the date payment is made.

 

Payment of the principal and interest due at
Final Maturity of the Senior Notes shall be made at the office or agency of the Company maintained for that purpose in the Place
of Payment, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public
and private debts; provided, however, that, at the option of the Company, interest may be paid by check mailed to the address of
the Person entitled thereto as such address shall appear in the Security Register; provided, further, that payment to the U.S.
Depositary or any successor depositary may be made by wire transfer to the account designated by the U.S. Depositary or such successor
depositary in writing.

 

    	 	- 2 -	 

     

    

 

Section 1.04         Denominations.
The Senior Notes may be issued in denominations of $2,000.00, or any integral multiples of $1,000 in excess thereof.

 

Section 1.05         Global
Securities. The Senior Notes will be issued in the form of one or more Global Securities registered in the name of the U.S.
Depositary or its nominee. Except under the limited circumstances described below, Senior Notes represented by the Global Security
will not be exchangeable for, and will not otherwise be issuable as, Senior Notes in definitive form. The Global Securities described
above may not be transferred except as a whole by the U.S. Depositary to a nominee of such U.S. Depositary or by a nominee of such
U.S. Depositary to such depositary or another nominee of such U.S. Depositary or by such U.S. Depositary or any other such nominee
to a successor U.S. Depositary or a nominee of such successor U.S. Depositary.

 

Owners of beneficial interests in such a Global
Security will not be considered the Holders thereof for any purpose under the Indenture, and no Global Security representing a
Senior Note shall be exchangeable, except for another Global Security of like denomination and tenor to be registered in the name
of the U.S. Depositary or its nominee or to a successor U.S. Depositary or its nominee. The rights of Holders of such Global Security
shall be exercised only through the U.S. Depositary.

 

A Global Security shall be exchangeable for
Senior Notes registered in the names of Persons other than the U.S. Depositary or its nominee only as provided by Section 3.5 of
the Indenture. Any Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for Senior Notes
registered in such names as the U.S. Depositary shall direct.

 

Section 1.06         Redemption
at the Option of the Company.

 

(A)         As
used in this Section 1.06:

 

“Comparable Treasury Issue”
means the United States Treasury security selected by an Independent Investment Banker as having an actual or interpolated maturity
comparable to the remaining term (“Remaining Life”) of the Senior Notes to be redeemed that would be utilized, at the
time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of such Senior Notes.

 

“Comparable Treasury Price”
means, with respect to any redemption date, the average of the two Reference Treasury Dealer Quotations for such redemption date.

 

“Independent Investment Banker”
means one of the Reference Treasury Dealers appointed by the Company.

 

“Reference Treasury Dealer”
means each of J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Wells Fargo Securities, LLC,
and their respective successors; provided, however, that if any of the foregoing or their successors cease to be a primary U.S.
Government securities dealer (each, a “Primary Treasury Dealer”), the Company will substitute therefor another such
Primary Treasury Dealer.

 

    	 	- 3 -	 

     

    

 

“Reference Treasury Dealer Quotations”
means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Trustee, of the
bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted
in writing to the Trustee by such Reference Treasury Dealer at 3:30 p.m., New York City time, on the third business day preceding
such redemption date.

 

“Treasury Rate” means,
with respect to any redemption date, the rate per year equal to:

 

		(1)	the yield, under the heading which represents the average
for the immediately preceding week, appearing in the most recently published statistical release designated “H.15”
or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes
yields on actively traded United States Treasury securities adjusted to constant maturity under the caption “Treasury Constant
Maturities,” for the maturity corresponding to the Comparable Treasury Issue; provided that, if no maturity is within three
months before or after the Remaining Life of the Senior Notes to be redeemed, yields for the two published maturities most closely
corresponding to the Comparable Treasury Issue shall be determined and the Treasury Rate shall be interpolated from those yields
on a straight line basis, rounding to the nearest month; or

 

		(2)	if such release (or any successor release) is not published
during the week preceding the calculation date or does not contain such yields, the rate per year equal to the semiannual equivalent
yield to maturity or interpolated maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury
Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date.

 

The Treasury Rate will be calculated
on the third business day preceding the redemption date. As used in the immediately preceding sentence and in the definition of
“Reference Treasury Dealer Quotations” above, the term “business day” means any day that is not a Saturday,
Sunday or other day on which commercial banks in New York City are authorized or required by law to remain closed.

 

(B)         Prior
to December 15, 2046 (the date that is six months prior to the Final Maturity), the Senior Notes may be redeemed, in whole or in
part, at the Company’s option, at any time or from time to time, on notice given not more than 60 days, if the Senior Notes
are being redeemed in full, or 45 days, if the Senior Notes are being redeemed in part, nor less than 30 days, prior to the date
of redemption, at a redemption price equal to the greater of (i) 100% of the principal amount of any Senior Notes to be redeemed;
or (ii) the sum of the present values of the remaining scheduled payments of principal and interest on any Senior Notes to be redeemed
(exclusive of interest accrued to the date of redemption) discounted to the date of redemption on a semiannual basis (assuming
a 360-day year consisting of twelve 30-day months) at the then current Treasury Rate plus 25 basis points.

 

(C)         On
or after December 15, 2046 (the date that is six months prior to the Final Maturity), the Senior Notes may be redeemed, in whole
or in part, at the Company’s option, at any time or from time to time, on notice given not more than 60 days, if the Senior
Notes are being redeemed in full, or 45 days, if the Senior Notes are being redeemed in part, nor less than 30 days, prior to the
date of redemption, at a redemption price equal to 100% of the principal amount of any Senior Notes to be redeemed.

 

    	 	- 4 -	 

     

    

 

(D)         If
the Company redeems any Senior Notes pursuant to Paragraphs (B) or (C) of this Section 1.06, the Company will pay accrued and unpaid
interest on the principal amount of any Senior Note being redeemed to, but excluding, the redemption date.

 

(E)         The
full defeasance and covenant defeasance provisions of the Indenture relating to the Company’s obligations in connection with
the Debt Securities will apply to the Senior Notes.

 

Section 1.07         Governing
Law. Section 1.12 of the Indenture is hereby amended and restated to read in its entirety as follows:

 

“SECTION 1.12             Governing
Law.

 

THIS INDENTURE AND THE DEBT SECURITIES SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE CONFLICTS OF LAW RULES
OF SUCH STATE. THIS INDENTURE IS SUBJECT TO THE PROVISIONS OF THE TRUST INDENTURE ACT OF 1939, AS AMENDED, THAT ARE REQUIRED TO
BE PART OF THIS INDENTURE AND SHALL, TO THE EXTENT APPLICABLE, BE GOVERNED BY SUCH PROVISIONS.”

 

Section 1.08         Registration,
Registration of Transfer and Exchange. Section 3.5 of the Indenture is hereby amended and restated to read in its entirety
as follows:

 

“SECTION 3.5     Registration,
Registration of Transfer and Exchange. The Company shall keep or cause to be kept for the Debt Securities of each series a
register (the register maintained in such office being herein sometimes referred to as the “Debt Security Register”)
in which, subject to such reasonable regulations as it may prescribe, the Company shall provide for the registration, registration
of transfer and exchange of Debt Securities. The Trustee is hereby initially appointed “Debt Security Registrar” for
such purposes.

 

Upon surrender for registration of transfer
of any Debt Security of any particular series at the office or agency of the Company in a Place of Payment for that series, the
Company shall execute, and the Trustee for the Debt Securities of each series shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Debt Securities of any authorized denominations, and of a like Stated Maturity
and of a like series and aggregate principal amount and with like terms and conditions.

 

Except as set forth below, at the option of
the Holder, Debt Securities of any particular series may be exchanged for other Debt Securities of any authorized denominations,
and of a like Stated Maturity and of a like series and aggregate principal amount and with like terms and conditions, upon surrender
of the Debt Securities to be exchanged at such office or agency. Whenever any Debt Securities are so surrendered for exchange,
the Company shall execute, and the Trustee for such Debt Securities shall authenticate and deliver, the Debt Securities which the
Holder making the exchange is entitled to receive.

 

All Debt Securities issued upon any registration
of transfer or exchange of Debt Securities shall be the valid obligations of the Company, evidencing the same debt, and entitled
to the same benefits under this Indenture, as the Debt Securities surrendered upon such registration of transfer or exchange.

 

    	 	- 5 -	 

     

    

 

Every Debt Security presented or surrendered
for registration of transfer or exchange shall (if so required by the Company or the Trustee for such Debt Security) be duly endorsed,
or be accompanied by a written instrument of transfer in form reasonably satisfactory to the Company and the Debt Security Registrar
for such series duly executed by the Holder thereof or his attorney duly authorized in writing.

 

No service charge shall be made for any registration
of transfer or exchange of Debt Securities, but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or exchange of Debt Securities, other than exchanges
pursuant to Section 3.4, 9.6, 11.3 or 11.7 not involving any transfer.

 

Notwithstanding any other provision of this
Section, unless and until it is exchanged in whole or in part for Debt Securities in definitive form, a Global Security representing
all or a portion of the Debt Securities of a series may not be transferred except as a whole by the U.S. Depositary for such series
to a nominee of such U.S. Depositary or by a nominee of such U.S. Depositary to such depositary or another nominee of such U.S.
Depositary or by such U.S. Depositary or any other such nominee to a successor U.S. Depositary for such series or a nominee of
such successor U.S. Depositary.

 

If at any time the U.S. Depositary for the Debt
Securities of a series notifies the Company that it is unwilling or unable to continue as U.S. Depositary for the Debt Securities
of such series or if at any time the U.S. Depositary for Debt Securities of such series shall no longer be a clearing agency registered
and in good standing under the Exchange Act or other applicable statute or regulation, the Company shall appoint a successor U.S.
Depositary for the Debt Securities of such series. If a successor U.S. Depositary for the Debt Securities is not appointed by the
Company within 90 days after the Company receives such notice or becomes aware of such condition, the Company will execute, and
the Trustee, upon receipt of a Company Order for the authentication and delivery of definitive Debt Securities of such series,
will authenticate and deliver, Debt Securities of such series in definitive form in an aggregate principal amount equal to the
principal amount of the Global Security or Securities representing such series in exchange for such Global Security or Securities.

 

The Company may at any time and in its sole
discretion determine that the Debt Securities of any series issued in the form of one or more Global Securities shall no longer
be represented by such Global Security or Securities. In such event, the Company will execute, and the Trustee, upon receipt of
a Company Order for the authentication and delivery of definitive Debt Securities of such series, will authenticate and deliver,
Debt Securities of such series in definitive form and in an aggregate principal amount equal to the principal amount of the Global
Security or Securities representing such series in exchange for such Global Security or Securities.

 

If the Debt Securities of any series shall have
been issued in the form of one or more Global Securities and if an Event of Default with respect to the Debt Securities of such
series shall have occurred and be continuing, the Company will promptly execute, and the Trustee, upon receipt of a Company Order
for the authentication and delivery of definitive Debt Securities of such series, will authenticate and deliver Debt Securities
of such series in definitive form and in an aggregate principal amount equal to the principal amount of the Global Security or
Securities representing such series in exchange for such Global Security or Securities.

 

The U.S. Depositary for such series of Debt Securities
may surrender a Global Security for such series of Debt Securities in exchange in whole or in part for Debt Securities of such
series of like tenor and terms and in definitive form on such terms as are acceptable to the Company and such U.S. Depositary.
Thereupon, the Company shall execute and the Trustee shall authenticate and deliver, without charge:

 

    	 	- 6 -	 

     

    

 

(1)         to
each Person specified by the U.S. Depositary a new Debt Security or Securities of the same series, of like tenor and terms and
of any authorized denomination as requested by such Person in an aggregate principal amount equal to and in exchange for such Person’s
beneficial interest in the Global Security; and

 

(2)         to
the U.S. Depositary a new Global Security in a denomination equal to the difference, if any, between the principal amount of the
surrendered Global Security and the aggregate principal amount of the Debt Securities delivered to Holders thereof.

 

Upon the exchange of a Global Security for Debt
Securities in definitive form, such Global Security shall be canceled by the Trustee. Definitive Debt Securities issued in exchange
for a Global Security pursuant to this Section shall be registered in such names and in such authorized denominations as the U.S.
Depositary for such Global Security, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct
the Trustee. The Trustee shall deliver such definitive Debt Securities to the Persons in whose names such Debt Securities are so
registered.”

 

Section 1.09         Title;
Payment and Terms. The last paragraph of Section 3.1 of the Indenture is hereby amended and restated to read in its entirety
as follows:

 

“All
Debt Securities of any particular series shall be substantially identical except as to denomination, rate of interest, Stated Maturity
and the date from which interest, if any, shall accrue, and except as may otherwise be provided in or pursuant to such Board Resolution
relating thereto. The terms of such Debt Securities, as set forth above, may be determined by the Company from time to time if
so provided in or established pursuant to the authority granted in a Board Resolution. Any of the terms of the Debt Securities,
as set forth above, may be made dependent upon facts ascertainable outside the Board Resolution provided that the manner in which
said facts shall operate upon the terms is set forth in the Board Resolution. All Debt Securities of any one series need not be
issued at the same time, and unless otherwise provided, a series may be reopened, without notice to or the consent of the registered
holders of such Debt Securities, for issuances of additional Debt Securities of such series. Such additional Debt Securities will
rank pari passu with the outstanding Debt Securities of such series in all material respects, or in all respects
except for the issue date and public offering price or payment of interest accruing prior to the issue date of such additional
Debt Securities or except for the first payment of interest following the issue date of such additional Debt Securities, and so
that such additional Debt Securities may be consolidated and form a single series with the outstanding Debt Securities of such
series and have the same terms as to status, redemption or otherwise as the outstanding Debt Securities of such series; provided
that such additional Debt Securities are fungible for U.S. federal income tax purposes with such previously issued Debt Securities”

 

Section 1.10         Mutilated,
Destroyed, Lost and Stolen Debt Securities. Section 3.6 of the Indenture is hereby amended and restated to read in its entirety
as follows:

 

“SECTION 3.6     Mutilated,
Destroyed, Lost and Stolen Debt Securities. If (i) any mutilated Debt Security is surrendered to the Trustee for such Debt
Security, or the Company and the Trustee for a Debt Security receive evidence to their satisfaction of the destruction, loss or
theft of any Debt Security, and (ii) there is delivered to the Company, the Debt Security Registrar and such Trustee such security
or indemnity as may be reasonably required by them to save each of them and any agent of either of them harmless, then, in the
absence of notice to the Company or such Trustee that such Debt Security has been acquired by a bona fide purchaser, the Company
shall execute and upon its request such Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or stolen Debt
Security or in exchange for such mutilated Debt Security, a new Debt Security of the same series and in a like principal amount
and of a like Stated Maturity and with like terms and conditions and bearing a number not contemporaneously outstanding.

 

    	 	- 7 -	 

     

    

 

In case any such mutilated, destroyed, lost
or stolen Debt Security has become or is about to become due and payable, the Company in its discretion may, instead of issuing
a new Debt Security, pay such Debt Security (without surrender thereof except in the case of a mutilated Debt Security) if the
applicant for such payment shall furnish to the Company, the Debt Security Registrar and the Trustee for such Debt Security such
security or indemnity as may be reasonably required by them to save each of them harmless, and in case of destruction, loss or
theft, evidence reasonably satisfactory to the Company and such Trustee and any agent of either of them of the destruction, loss
or theft of such Debt Security and the ownership thereof.

 

Upon the issuance of any new Debt Security under
this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be
imposed in relation thereto and any other expenses (including all fees and expenses of the Trustee and the Debt Security Registrar
for such Debt Security) connected therewith.

 

Every new Debt Security of any series issued
pursuant to this Section in lieu of any destroyed, lost or stolen Debt Security or in exchange for any mutilated Debt Security
shall constitute an original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Debt
Security shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately
with any and all other Debt Securities of the same series, duly issued hereunder.

 

The provisions of this Section are exclusive
and shall preclude (to the extent lawful) the assertion of any Holder of all other rights and remedies with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Debt Securities.”

 

Section 1.11         Events
of Default. Section 5.1 of the Indenture is hereby amended and restated to read in its entirety as follows:

 

“SECTION 5.1     Events of Default.
“Event of Default” wherever used herein with respect to any particular series of Debt Securities, unless otherwise
specified in the Debt Security or the Board Resolution with respect to that series of Debt Securities, means any one of the following
events (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation
of law pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental
body):

 

(1)         default
in the payment of any installment of interest upon any Debt Security of that series when it becomes due and payable, and continuance
of such default for a period of 30 days; or

 

(2)         default
in the payment of the principal of (or premium, if any, on) any Debt Security of that series at its Maturity; or

 

(3)         default
in the performance of, or breach of, any covenant or warranty of the Company in respect of any Debt Security of that series contained
in this Indenture or in such Debt Securities (other than a covenant or warranty a default in whose performance or whose breach
is elsewhere in this Section specifically dealt with or which expressly has been included in this Indenture solely for the benefit
of Debt Securities of a series other than that series) or in the applicable Board Resolution under which such series is issued
as contemplated by Section 3.1 and continuance of such default or breach for a period of 60 days after there has been given, by
registered or certified mail, to the Company by the Trustee for the Debt Securities of such series or to the Company and such Trustee
by the Holders of at least 25% in principal amount of the Outstanding Debt Securities of that series a written notice specifying
such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder;
or

 

    	 	- 8 -	 

     

    

 

(4)         if
an event of default with respect to any other series of Debt Securities or as defined in any mortgage, indenture, security agreement
or other instrument under which there may be issued, or by which there may be secured or evidenced, any Indebtedness of the Company
for money borrowed in excess of $10 million principal amount, whether such Indebtedness now exists or shall hereafter be created,
shall happen and, if such Indebtedness is not already matured in accordance with its terms, shall result in such Indebtedness becoming
or being declared due and payable prior to the date on which it would otherwise become due and payable, and such acceleration shall
not have been rescinded or annulled or such Indebtedness shall not have been discharged, in either case, within a period of ten
days after there has been given, by registered or certified mail in the manner set forth in Section 1.5, to the Company by the
Trustee for the Debt Securities of that particular series referred to in the first clause of this Section 5.1 or to the Company
and such Trustee by the Holders of at least 25% in principal amount of the Outstanding Debt Securities of that particular series
referred to in the first clause of this Section 5.1 a written notice specifying such event of default and requiring the Company
to cause such acceleration to be rescinded or annulled or to cause such Indebtedness to be discharged and stating that such notice
is a “Notice of Default” hereunder; provided, that if prior to the entry of judgment in favor of the Trustee, such
default under such indenture or instrument shall be remedied or cured by the Company or waived by the holders of such Indebtedness,
then the Event of Default hereunder shall be deemed likewise to have been remedied, cured or waived; and provided, further, however,
that, subject to the provisions of Sections 6.1 and 6.2, such Trustee shall not be deemed to have knowledge of such default unless
either (A) a Responsible Officer of such Trustee assigned to its Corporate Trust Office shall have actual knowledge of such default
or (B) the Trustee shall have received written notice thereof from the Company, from the Holders of 10% or more in principal amount
of the Outstanding Debt Securities of such other series, from the holder of any such Indebtedness or from the trustee under any
such mortgage, indenture, security agreement or other instrument; or

 

(5)         the
entry against the Company of one or more judgments, decrees or orders by a court having jurisdiction in the premises from which
no appeal may be or is taken for the payment of money, either individually or in the aggregate, in excess of $10 million and the
continuance of such judgment, decree or order unsatisfied and in effect for any period of 60 consecutive days without a stay of
execution and there has been given, by registered or certified mail in the manner set forth in Section 1.5, to the Company by the
Trustee for the Debt Securities of such series or to the Company and such Trustee by the Holders of at least 25% in principal amount
of the Outstanding Debt Securities of such series a written notice specifying such entry and continuance of such judgment, decree
or order and stating that such notice is a “Notice of Default” hereunder; provided, however, that subject to the provisions
of Sections 6.1 and 6.2, such Trustee shall not be deemed to have knowledge of such entry and continuance of such judgment, decree
or order unless either (A) a Responsible Officer of such Trustee assigned to its Corporate Trust Office shall have actual knowledge
thereof or (B) the Trustee shall have received written notice thereof from the Company or from the Holders of 10% or more in principal
amount of the Outstanding Debt Securities of such series; or

 

(6)         the
Company shall commence any case or proceeding seeking to have an order for relief entered on its behalf as debtor or to adjudicate
it as bankrupt or insolvent or seeking reorganization, liquidation, dissolution, winding-up, arrangement, composition or readjustment
of its debts or any other relief under any bankruptcy, insolvency, reorganization, liquidation, dissolution, arrangement, composition,
readjustment of debt or other similar act or law of any jurisdiction, domestic or foreign, now or hereafter existing; or the Company
shall apply for a receiver, custodian or trustee (other than any trustee appointed as a mortgagee or secured party in connection
with the issuance of indebtedness for borrowed money of the Company) of it or for all or a substantial part of its property; or
the Company shall make a general assignment for the benefit of creditors; or the Company shall take any corporate action in furtherance
of any of the foregoing; or

 

    	 	- 9 -	 

     

    

 

(7)         any
case or proceeding against the Company shall be commenced seeking to have an order for relief entered against it or to adjudicate
it as bankrupt or insolvent or seeking reorganization, liquidation, dissolution, winding-up, arrangement, composition or readjustment
of its debts or any other relief under any bankruptcy, insolvency, reorganization, liquidation, dissolution, arrangement, composition,
readjustment of debt or other similar act or law of any jurisdiction, domestic or foreign, now or hereafter existing; or a receiver,
custodian or trustee (other than any trustee appointed as a mortgagee or secured party in connection with the issuance of indebtedness
for borrowed money of the Company) of the Company or for all or a substantial part of its property shall be appointed in any such
case or proceeding; and such case or proceeding (A) results in the entry of an order for relief or a similar order against it or
(B) shall continue unstayed and in effect for a period of 60 consecutive days.”

 

Section 1.12         Acceleration
of Maturity; Rescission and Annulment. Section 5.2 of the Indenture is hereby amended and restated to read in its entirety
as follows:

 

“SECTION 5.2 Acceleration of Maturity;
Rescission and Annulment. If an Event of Default (other than an Event of Default specified in Section 5.1(6) or (7)) with respect
to any particular series of Debt Securities occurs and is continuing, then and in every such case either the Trustee for the Debt
Securities of such series or the Holders of not less than 25% in principal amount of the Outstanding Debt Securities of that series
may declare the entire principal amount (or, in the case of Discounted Debt Securities, such lesser amount as may be provided for
in the terms of that series) of all the Debt Securities of that series to be due and payable immediately, by a notice in writing
to the Company (and to such Trustee if given by Holders), and upon any such declaration of acceleration such principal or such
lesser amount, as the case may be, together with accrued interest and all other amounts owing hereunder, shall become immediately
due and payable, without presentment, demand, protest or notice of any kind, all of which are hereby expressly waived.

 

If an Event of Default specified in Sections
5.1(6) or (7) occurs and is continuing, such principal or such lesser amount, as the case may be, together with accrued interest
and all other amounts owing hereunder, on the Debt Securities of that series shall become and be immediately due and payable without
any declaration or other act on the part of the Trustee or any Holder.

 

At any time after such a declaration of acceleration
has been made and before a judgment or decree for payment of the money due has been obtained by the Trustee for the Debt Securities
of any series as hereinafter in this Article provided, the Holders of a majority in principal amount of the Outstanding Debt Securities
of that series, by written notice to the Company and such Trustee, may rescind and annul such declaration and its consequences
if:

 

(1)           the
Company has paid or deposited with such Trustee a sum sufficient to pay

 

(A)   all
overdue interest on all Debt Securities of that series;

 

(B)   the
principal of (and premium, if any, on) any Debt Securities of that series which have become due otherwise than by such declaration
of acceleration and interest thereon from the date such principal became due at a rate per annum equal to the rate borne by the
Debt Securities of such series (or, in the case of Discounted Debt Securities, the Debt Securities’ Yield to Maturity), to
the extent that the payment of such interest shall be legally enforceable;

 

    	 	- 10 -	 

     

    

 

(C)         to
the extent that payment of such interest is lawful, interest upon overdue interest at a rate per annum equal to the rate borne
by the Debt Securities of such series (or, in the case of Discounted Debt Securities, the Debt Securities’ Yield to Maturity);

 

(D) all sums paid or advanced by such Trustee
hereunder and the reasonable compensation, expenses, disbursements and advances of such Trustee, its agents and counsel and all
other amounts due to such Trustee under; and

 

(2)         all
Events of Default with respect to the Debt Securities of such series, other than the nonpayment of the principal of Debt Securities
of that series which has become due solely by such acceleration, have been cured or waived as provided in Section 5.13. No such
rescission shall affect any subsequent default or impair any right consequent thereon.”

 

Section 1.13         Acceptance
of Appointment by Successor. Paragraph (a) of Section 6.11 of the Indenture is hereby amended and restated to read in its entirety
as follows:

 

“SECTION 6.11         Acceptance
of Appointment by Successor.

 

(a)          Every
such successor Trustee appointed hereunder with respect to the Debt Securities of any series shall execute, acknowledge and deliver
to the Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal of
the retiring Trustee shall become effective and such successor Trustee without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on the request of the Company or the successor
Trustee, such retiring Trustee shall, upon payment of its reasonable charges, execute and deliver an instrument transferring to
such successor Trustee all the rights, powers and trusts of the retiring Trustee and shall duly assign, transfer and deliver to
such successor Trustee all property and money held by such retiring Trustee hereunder, subject to the lien provided for in Section
6.7.”

 

Section 1.14         Supplemental
Indentures With Consent of Holders. Section 9.2 of the Indenture is hereby amended and restated to read in its entirety as
follows:

 

“SECTION 9.2     Supplemental Indentures
With Consent of Holders. The Company, when authorized by a Board Resolution, and the Trustee for the Debt Securities of any
or all series may enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of this Indenture or of modifying in any manner the rights of the Holders of
such Debt Securities under this Indenture, but only with the consent of the Holders of more than 50% in aggregate principal amount
of the Outstanding Debt Securities of each series of Debt Securities then Outstanding affected thereby, in each case by Act of
said Holders of Debt Securities of each such series delivered to the Company and the Trustee for Debt Securities of each such series;
provided, however, that no such supplemental indenture shall, without the consent of the Holder of each Outstanding Debt Security
affected thereby:

 

(1)         change
the Stated Maturity of the principal of, or any installment of principal of or interest or premium, if any, on, any Debt Security,
or reduce the principal amount thereof or the rate of interest thereon, if any, or any premium or other amounts payable upon the
redemption thereof, or reduce the amount of the principal of a Discounted Debt Security that would be due and payable upon a declaration
of acceleration of the Maturity thereof pursuant to Section 5.2, or change the Place of Payment, or impair the right to institute
suit for the enforcement of any such payment on or after the Stated Maturity thereof (or, in the case of redemption, on or after
the Redemption Date); or

 

    	 	- 11 -	 

     

    

 

(2)         reduce
the percentage in principal amount of the Outstanding Debt Securities of any particular series, the consent of whose Holders is
required for any such supplemental indenture, or the consent of whose Holders is required for any waiver (of compliance with certain
provisions of this Indenture or certain defaults hereunder and their consequences) provided for in this Indenture; or

 

(3)         modify
any of the provisions of this Section or Section 5.13 or 10.7, except to increase any such percentage or to provide that certain
other provisions of this Indenture cannot be modified or waived without the consent of the Holder of each Debt Security affected
thereby; provided, however, that this clause shall not be deemed to require the consent of any Holder of a Debt Security with respect
to changes in the references to “the Trustee” and concomitant changes in this Section and Section 10.7, or the deletion
of this proviso, in accordance with the requirements of Section 6.9, 6.11(b) and 9.1(6); or

 

(4)         change
the Redemption Price; or

 

(5)         change
the date prior to which no redemption may be made; or

 

(6)         make
the principal of, or premium, if any, or interest on, any Debt Security payable in anything other than United States Dollars.

 

A supplemental indenture which changes or eliminates
any covenant or other provision of this Indenture which has expressly been included solely for the benefit of one or more particular
series of Debt Securities, or which modifies the rights of the Holders of Debt Securities of such series with respect to such covenant
or other provision, shall be deemed not to affect the rights under this Indenture of the Holders of Debt Securities of any other
series.

 

It shall not be necessary for any Act of Holders
under this Section to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such Act
shall approve the substance thereof.”

 

Section 1.15         Maintenance
of Properties. Section 10.5 of the Indenture is hereby amended and restated to read in its entirety as follows:

 

“SECTION 10.5   Maintenance of Properties.
The Company shall cause all its properties used or useful in the conduct of its business to be maintained and kept in good condition,
repair and working order and supplied with all necessary equipment and will cause to be made all necessary repairs, renewals, replacements,
betterments and improvements thereof, all as in the reasonable judgment of the Company may be necessary so that the business carried
on in connection therewith may be properly and advantageously conducted at all times; provided, however, that nothing in this Section
shall prevent the Company from discontinuing the operation and maintenance of any of its properties if such discontinuance is,
in the reasonable judgment of the Company desirable in the conduct of its business and not disadvantageous in any material respect
to the Holders.”

 

Section 1.16         Corporate
Existence. Section 10.6 of the Indenture is hereby amended and restated to read in its entirety as follows:

 

    	 	- 12 -	 

     

    

 

“SECTION 10.6 Corporate Existence. Subject
to Article 8, the Company shall do or cause to be done all things necessary to preserve and keep in full force and effect its corporate
existence, rights (charter and statutory) and franchises; provided, however, that the Company shall not be required to preserve
any right or franchise if the Board of Directors shall reasonably determine that the preservation thereof is no longer desirable
in the conduct of the business of the Company and that the loss thereof is not disadvantageous in any material respect to the Holders;
and provided, further, however, that the foregoing shall not prohibit a sale, transfer or conveyance of a Subsidiary or any of
its assets in compliance with the terms of this Indenture.”

 

Section 1.17         Limitations
on Liens. The following provisions shall be applicable with respect to the Senior Notes:

 

Limitation on Liens. The Issuer and its
Restricted Subsidiaries shall not issue, assume, incur, suffer to exist or guarantee any indebtedness for borrowed money secured
by a mortgage, pledge, lien or other encumbrance, directly or indirectly, upon any shares of the Voting Stock of a Restricted Subsidiary
which shares are owned by the Issuer or its Restricted Subsidiaries without effectively providing that the Senior Notes shall be
secured equally and ratably with, or prior to, any such secured indebtedness so long as such indebtedness remains outstanding.
This paragraph shall not apply to a mortgage, pledge, lien or other encumbrance on shares of Voting Stock of any Person existing
at the time such Person becomes a Restricted Subsidiary and any extensions, renewals or replacements thereof.

 

“Consolidated Total Assets” means
as of any date of determination, the amount of total assets shown on the consolidated balance sheet of the Issuer and its consolidated
subsidiaries contained in the most recent annual or quarterly report filed with the Commission, or if the Issuer is not then subject
to the Securities Exchange Act of 1934, the most recent annual or quarterly report to shareholders and, in respect of any Subsidiary
as of any date of determination, the amount of total assets of such Subsidiary and its consolidated subsidiaries shown on the consolidated
balance sheet of such Subsidiary from which such consolidated balance sheet of the Issuer and its consolidated Subsidiaries was
derived.

 

“Restricted Subsidiaries” means
(1) Great American Life Insurance Company and Great American Insurance Company; (2) any other present or future subsidiary of the
Issuer, the Consolidated Total Assets of which constitute at least 20% of the Issuer’s Consolidated Total Assets; and (3)
any Person which is a successor, by merger or otherwise, to substantially all the business or properties of any such subsidiary
referred to or described in the foregoing clauses (1) and (2).

 

“Voting Stock” means shares of any
class or classes having general voting power under ordinary circumstances to elect a majority of the board of directors, managers
or trustees of the corporation in question, provided that, for the purposes hereof, shares which carry only the right to vote conditionally
on the happening of an event shall not be considered voting shares whether or not such event shall have happened.

 

Section 1.18         Debt
Securities Redeemed in Part. Section 11.7 of the Indenture is hereby amended and restated to read in its entirety as follows:

 

“SECTION 11.7   Debt Securities Redeemed
in Part. Any Debt Security which is to be redeemed only in part shall be surrendered at the Place of Payment (with, if the Company
or the Trustee for such Debt Security so requires, due endorsement by, or a written instrument of transfer in form reasonably satisfactory
to the Company and the Debt Security Registrar for such Debt Security duly executed by, the Holder thereof or his attorney duly
authorized in writing), and the Company shall execute and such Trustee shall authenticate and deliver to the Holder of such Debt
Security without service charge, a new Debt Security or Debt Securities, of any authorized denomination as requested by such Holder,
of the same series and having the same terms and provisions and in an aggregate principal amount equal to and in exchange for the
unredeemed portion of the principal of the Debt Security so surrendered.”

 

    	 	- 13 -	 

     

    

 

Article
II

MISCELLANEOUS PROVISIONS

 

Section 2.01         Recitals
by Company. The recitals in this Eighth Supplemental Indenture are made by the Company only and not by the Trustee, and all
of the provisions contained in the Indenture in respect of the rights, privileges, immunities, powers and duties of the Trustee
shall be applicable in respect of Senior Notes and of this Eighth Supplemental Indenture as fully and with like effect as if set
forth herein in full.

 

Section 2.02         Ratification
and Incorporation of Indenture; Application of Eighth Supplemental Indenture to other Series of Debt Securities. As supplemented
hereby, the Indenture is in all respects ratified and confirmed, solely with respect to the Senior Notes, and the Indenture and
this Eighth Supplemental Indenture, solely with respect to the Senior Notes shall be read, taken and construed as one and the same
instrument. This Eighth Supplemental Indenture shall not apply to any series of Debt Securities outstanding on the date hereof
or established in the future under the Indenture unless expressly provided in the Board Resolution, supplemental indenture or other
documentation, as provided in the Indenture, establishing such series of Debt Securities.

 

Section 2.03         Executed
in Counterparts. This Eighth Supplemental Indenture may be simultaneously executed in several counterparts, each of which shall
be deemed to be an original, and such counterparts shall together constitute but one and the same instrument.

 

    	 	- 14 -	 

     

    

 

IN WITNESS WHEREOF, each party hereto has caused
this instrument to be signed in its name and behalf by its duly authorized officers, all as of the day and year first above written
by its duly authorized officers, all as of the day and year first above written.

 

	 	AMERICAN FINANCIAL GROUP, INC.
	 	 	 
	 	By:	 
	 	 	Karl J. Grafe
	 	 	Vice President
	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION,
	 	as Trustee
	 	 	 
	 	By:	 

 

    	 	- 15 -	 

     

    

 

EXHIBIT A

 

FORM OF SENIOR NOTE

 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A U.S. DEPOSITARY (AS DEFINED IN THE INDENTURE) OR A NOMINEE THEREOF.
UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE U.S. DEPOSITARY TO A NOMINEE OF THE U.S. DEPOSITARY, OR BY A NOMINEE OF THE U.S. DEPOSITARY TO THE U.S.
DEPOSITARY OR ANOTHER NOMINEE OF THE U.S. DEPOSITARY, OR BY THE U.S. DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR U.S. DEPOSITARY
OR A NOMINEE OF SUCH SUCCESSOR U.S. DEPOSITARY. UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY (AS DEFINED BELOW) OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH
AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

	No. R-1	$350,000,000 Senior Notes
	CUSIP No.  025932 AL8	 
	ISIN No. US025932 AL88	 

 

American Financial Group, Inc.

 

4.500% Senior Notes Due June 15, 2047

 

Principal Amount Per Senior Note: $2,000 and
Integral Multiples of $1,000 in Excess Thereof

 

American Financial Group, Inc., an Ohio corporation
(hereinafter called the “Company”, which term includes any successor corporation under the Indenture referred to below),
for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal amount of each Senior Note evidenced
hereby (Three Hundred Fifty Million Dollars ($350,000,000) in the aggregate) on June 15, 2047, and to pay interest thereon from
June 2, 2017 or from the most recent date to which interest has been paid or duly provided semi-annually on June 15 or December
15 in each year (each, an “Interest Payment Date”), commencing December 15, 2017, at the rate of 4.500% per annum,
until the principal amount of each Senior Note evidenced hereby is paid or duly made available for payment. Interest on the Senior
Notes shall be calculated on the basis of a 360-day year consisting of twelve 30-day months. The interest so payable and punctually
paid or duly provided for on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name
this certificate is registered at the close of business on the Regular Record Date for such interest, which shall be June 1 and
December 1 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest which
is payable, but is not punctually paid or duly provided for, on any Interest Payment Date shall forthwith cease to be payable to
the registered Holder hereof on the relevant Regular Record Date by virtue of having been such Holder, and may be paid to the Person
in whose name this certificate is registered at the close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to each Person in whose name a certificate evidencing Senior
Notes (defined below) is registered not less than 10 days prior to such Special Record Date, or may be paid at any time in any
other lawful manner not inconsistent with the requirements of any securities exchange on which the Senior Notes may be listed,
and upon such notice as may be required by such exchange, all as more fully provided in such Indenture.

 

    	 	A-1 	 

     

    

 

Payment of the principal of and the interest
on the Senior Notes evidenced hereby will be made at the office or agency of the Company maintained for that purpose in the Place
of Payment, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public
and private debts; provided, however, that, at the option of the Company, interest may be paid by check mailed to the address of
the Person entitled thereto as such address shall appear in the Security Register; provided, further, that payment to The Depository
Trust Company (“DTC”) or any successor depositary may be made by wire transfer to the account designated by DTC or
such successor depositary in writing.

 

This certificate evidences part of a duly authorized
issue of unsecured and unsubordinated indebtedness of the Company (the “Debt Securities”) issued and to be issued in
one or more series under an Indenture dated as of November 12, 1997 (herein called, together with all indentures supplemental thereto,
the “Indenture”) between the Company and U.S. Bank National Association, as Trustee (herein called the “Trustee”,
which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights, limitations of rights, obligations, duties and immunities thereunder of
the Company, the Trustee and the Holders of the Debt Securities, and of the terms upon which the Debt Securities are, and are to
be, authenticated and delivered. This certificate evidences Debt Securities of the series designated on the face hereof (each,
a “Senior Note”), limited to $350,000,000; provided, that the aggregate principal amount of the Senior Notes may be
increased in the future, without the consent of the Holders of the Senior Notes, on the same tenor and terms and with the same
CUSIP number as the Senior Notes (including, without limitation, rights to receive accrued and unpaid interest as the Senior Notes
then outstanding), so that such further Senior Notes shall be consolidated with, form a single series with and increase the aggregate
principal amount of the Senior Notes, provided that such further Senior Notes are fungible for U.S. federal income tax purposes
with such previously issued Senior Notes.

 

Prior to December 15, 2046
(the date that is six months prior to the Final Maturity), the Senior Notes may be redeemed, in whole or in part, at the Company’s
option, at any time or from time to time, on notice given not more than 60 days, if the Senior Notes are being redeemed in full,
or 45 days, if the Senior Notes are being redeemed in part, nor less than 30 days, prior to the date of redemption, at a redemption
price equal to the greater of (i) 100% of the principal amount of any Senior Notes to be redeemed; or (ii) the sum of the present
values of the remaining scheduled payments of principal and interest on any Senior Notes to be redeemed (exclusive of interest
accrued to the date of redemption) discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting
of twelve 30-day months) at the then current Treasury Rate plus 25 basis points.

 

“Comparable Treasury Issue”
means the United States Treasury security selected by an Independent Investment Banker as having an actual or interpolated maturity
comparable to the remaining term (“Remaining Life”) of the Senior Notes to be redeemed that would be utilized, at the
time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of such Senior Notes.

 

“Comparable Treasury Price”
means, with respect to any redemption date, the average of the two Reference Treasury Dealer Quotations for such redemption date.

 

    	 	A-2 	 

     

    

 

“Independent Investment Banker”
means one of the Reference Treasury Dealers appointed by the Company.

 

“Reference Treasury Dealer”
means each of J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Wells Fargo Securities, LLC,
and their respective successors; provided, however, that if any of the foregoing or their successors cease to be a primary U.S.
Government securities dealer (each, a “Primary Treasury Dealer”), the Company will substitute therefor another such
Primary Treasury Dealer.

 

“Reference Treasury Dealer Quotations”
means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Trustee, of the
bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted
in writing to the Trustee by such Reference Treasury Dealer at 3:30 p.m., New York City time, on the third business day preceding
such redemption date.

 

“Treasury Rate” means,
with respect to any redemption date, the rate per year equal to:

 

		(1)	the yield, under the heading which represents the average
for the immediately preceding week, appearing in the most recently published statistical release designated “H.15”
or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes
yields on actively traded United States Treasury securities adjusted to constant maturity under the caption “Treasury Constant
Maturities,” for the maturity corresponding to the Comparable Treasury Issue; provided that, if no maturity is within three
months before or after the Remaining Life of the Senior Notes to be redeemed, yields for the two published maturities most closely
corresponding to the Comparable Treasury Issue shall be determined and the Treasury Rate shall be interpolated from those yields
on a straight line basis, rounding to the nearest month; or

 

		(2)	if such release (or any successor release) is not published
during the week preceding the calculation date or does not contain such yields, the rate per year equal to the semiannual equivalent
yield to maturity or interpolated maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury
Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date.

 

The Treasury Rate will be calculated
on the third business day preceding the redemption date. As used in the immediately preceding sentence and in the definition of
“Reference Treasury Dealer Quotations” above, the term “business day” means any day that is not a Saturday,
Sunday or other day on which commercial banks in New York City are authorized or required by law to remain closed.

 

On or after December 15, 2046 (the date that
is six months prior to the Final Maturity), the Senior Notes may be redeemed, in whole or in part, at the Company’s option,
at any time or from time to time, on notice given not more than 60 days, if the Senior Notes are being redeemed in full, or 45
days, if the Senior Notes are being redeemed in part, nor less than 30 days, prior to the date of redemption, at a redemption price
equal to 100% of the principal amount of any Senior Notes to be redeemed.

 

    	 	A-3 	 

     

    

 

If the Company redeems any Senior Notes pursuant
to the foregoing paragraphs, the Company will pay accrued and unpaid interest on the principal amount of any Senior Note being
redeemed to, but excluding, the redemption date.

 

The full defeasance and covenant defeasance
provisions of the Indenture relating to the Company’s obligations in connection with the Debt Securities will apply to the
Senior Notes.

 

Except as provided above, the Senior Notes are
not redeemable by the Company prior to maturity and are not subject to any sinking fund. If an Event of Default with respect to
the Senior Notes shall occur and be continuing, the principal amount of the Senior Notes shall be immediately, or may be declared,
as appropriate, due and payable in the manner and with the effect provided in the Indenture.

 

The Indenture permits, with certain exceptions
as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of
the Holders of the Securities of each series issued under the Indenture at any time by the Company and the Trustee with the consent
of the Holders of not less than a majority in aggregate principal amount of the Securities at the time Outstanding of each series
affected thereby. The Indenture also contains provisions permitting the Holders of specified percentages in aggregate principal
amount of the Securities of any series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive
compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the Holder of this certificate shall be conclusive and binding upon such Holder and upon all future
Holders of this certificate and of any Senior Notes evidenced by a certificate issued upon the registration of transfer hereof
or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this certificate.

 

No reference herein to the Indenture and no
provision of this certificate or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional,
to pay the principal of and interest on the Senior Notes evidenced by this certificate, at the times, place and rate, and in the
coin or currency, herein and in the Indenture prescribed.

 

As provided in the Indenture and subject to
certain limitations set forth therein and in this certificate, the transfer of the Senior Notes evidenced by this certificate may
be registered on the Security Register upon surrender of this certificate for registration of transfer at the office or agency
of the Company maintained for the purpose in any place where the principal of and interest on the Senior Notes are payable, duly
endorsed by, or accompanied by a written instrument of transfer in form reasonably satisfactory to the Company and the Security
Registrar duly executed by, the Holder hereof or by his attorney duly authorized in writing, and thereupon one or more new certificates
evidencing Senior Notes of authorized denominations, and of a like series and aggregate principal amount, and with like terms and
conditions will be issued to the designated transferee or transferees.

 

The Senior Notes are issuable only in registered
form without coupons in denominations of $2,000.00, or any integral multiples of $1,000 in excess thereof, all as more fully provided
in the Indenture. As provided in the Indenture, and subject to certain limitations set forth in the Indenture, and in this certificate,
this certificate is exchangeable for a like aggregate principal amount of Senior Notes of this series in different authorized denominations,
as requested by the Holders surrendering the same.

 

No service charge shall be made for any such
registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge payable in connection therewith, other than in certain cases provided in the Indenture.

 

    	 	A-4 	 

     

    

 

Prior to due presentment of this certificate
for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose
name this certificate is registered as the owner of the Senior Notes evidenced hereby for all the purpose of receiving payment
of principal of and (subject to Section 3.7 of the Indenture) interest, if any, on these Senior Notes and for all purposes whatsoever,
whether or not such Senior Notes be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice
to the contrary.

 

This certificate shall be governed by and construed
in accordance with the laws of the State of New York without regard to the conflicts of laws rules of such state.

 

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

 

Unless the certificate of authentication hereon
has been executed by or on behalf of the Trustee under the Indenture by the manual signature of one of its authorized signatories,
this certificate shall not be entitled to any benefits under the Indenture or be valid or obligatory for any purpose.

 

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

 

	[SEAL]	 	 
	 	AMERICAN FINANCIAL GROUP, INC.
	 	 	 
	 	By:	 
	 	 	Karl J. Grafe
	 	 	Vice President and Secretary

 

	Attest:	 	 	 
	 	Mark A. Weiss	 	 
	 	Vice President 	 	 

    	 	A-5 	 

     

    

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Debt Securities of the series
designated herein described in the within-mentioned Indenture.

 

Dated: June __, 2017

 

	 	U.S. BANK NATIONAL ASSOCIATION,
	 	as Trustee
	 	 	 
	 	By:	 
	 	 	Authorized Officer

 

    	 	A-6 	 

     

    

 

ABBREVIATIONS

 

The following abbreviations, when used in the
inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable
laws or regulations:

 

	TEN COM - as tenants in common	UNIF GIFT MIN ACT - ___Custodian _____
	TEN ENT- as tenants by the entireties	                                       (Cust)             (Minor)
	JT TEN - as joint tenants with right of survivorship and not as tenants in common	
        Under Uniform Gifts to Minors Act ________

                                                                               (State)  

 

Additional abbreviations may also be used though
not in the above list.

 

FOR VALUE RECEIVED, the undersigned registered holder hereby sell(s),
assign(s) and transfer(s) unto

 

PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF
ASSIGNEE __________________________

 

PLEASE
PRINT OR TYPEWRITE NAME AND ADDRESS OF ASSIGNEE

 

the Senior Notes evidenced by the within certificate and all rights
thereunder, hereby irrevocably constituting and appointing _____________________ to transfer said Senior Notes on the books of
the Company with full power of substitution in the premises.

 

Dated:________________________________________________________________________

 

Notice: The signature to this assignment
must correspond with the name as it appears upon the face of the within certificate in every particular, without alteration or
enlargement or any change whatever.

 

    	 	A-7 	 

     

    

 

EXHIBIT B

 

CERTIFICATE OF AUTHENTICATION

 

This is one of the Debt Securities, of the series
designated herein, described in the within-mentioned Indenture.

 

	 	U.S. BANK NATIONAL ASSOCIATION,
	 	as Trustee
	 	 	 
	 	By:	 
	 	 	Authorized Officer

 

    	 	B-1EX-10.1

 Exhibit 10.1 

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (this “Agreement”), dated as of February 17, 2017, is hereby entered into by and
among B. Riley & Co., LLC, a Delaware limited liability company (the “Company”), Richard J. Hendrix (the “Executive”) and, solely with respect to its obligations under this Agreement, B. Riley
Financial, Inc., a Delaware corporation (“Parent”). 
 RECITALS: 

 

	A.	Executive is currently employed as the Chairman of the Board of Directors and Chief Executive Officer of FBR & Co. (“FBR”), pursuant to an Amended and Restated Employment Agreement by and
between the Executive and FBR, dated as of June 15, 2015 (the “Prior Agreement”); 

  

	B.	An Agreement and Plan of Merger, dated as of February 17, 2017, was entered into by and between FBR and Parent (the “Merger Agreement”); 

 

	C.	Following the Closing Date, as such term is defined in the Merger Agreement (the “Closing Date”), the Company wishes to employ Executive and Executive desires to be employed by the Company on the terms
and conditions, and for the consideration, hereinafter set forth; 

  

	D.	Executive has agreed to waive the vesting of his Company Equity Awards (as defined in the Merger Agreement) that would otherwise vest in connection with the transactions contemplated by the Merger Agreement; and

  

	E.	This Agreement with the Company will completely supersede and replace the Prior Agreement upon the Effective Date (as defined herein); provided, however, that if the Merger Agreement is terminated prior to the Effective
Date or the Executive is not employed by FBR as of immediately prior to the Effective Date, this Agreement shall be null and void ab initio. 

Accordingly, the parties hereto agree as follows: 

1.    Term. The Company hereby agrees to employ the Executive, and the Executive hereby accepts such employment, for
a term commencing as of the Closing Date (the “Effective Date”) and continuing until December 31, 2020, unless sooner terminated in accordance with the provisions of Section 4 or Section 5 (the period during which the
Executive is employed under this Agreement hereinafter referred to as the “Term”). Notwithstanding the foregoing, upon a Change in Control (as defined below), the Term shall automatically be renewed so that the Term is not
less than two (2) years from the effective date of such Change in Control. For the avoidance of doubt, references to “Change in Control” used herein shall refer to a Change in Control occurring after the Effective Date. 

2.    Position/Duties. During the Term, the Executive shall be employed as President and Chief Executive Officer of
the entity that will house the businesses of FBR and the Company (“CombinedCo”), and shall report to the Chief Executive Officer of Parent (the “CEO”). The Executive shall become a Member of the Board of Directors
of Parent (the “Board of Directors”) 

 on the Effective Date. During the Term the Board of Directors shall nominate the Executive for re-election as a member of the Board of Directors at the expiration of each then-current term. The Executive shall faithfully perform for CombinedCo and the Company the duties of said position and shall perform such
other duties of an executive, managerial or administrative nature as shall be reasonably commensurate with his position and specified and designated from time to time by the CEO, including but not limited to serving as an officer and/or director of
one or more affiliates of the Company (in addition to CombinedCo) from time to time. The Executive shall devote all of his business time and efforts to the performance of his duties hereunder. The Executive shall have the right to engage in various
activities outside of his employment with the Company, including charitable and community activities and making personal investments that do not constitute corporate opportunities and, with the approval of the CEO, serving as a director of one or
more other companies (other than any directorships in effect as of the Effective Date, which shall not require such approval) so long as such activities do not interfere with the Executive’s ability to perform his duties hereunder. 

3.    Compensation and Benefits. 

3.1    Annual Salary. The Company shall pay the Executive during the Term a base salary at a minimum rate of
$750,000 (Seven Hundred Fifty Thousand United States Dollars and no/100s) per annum (the “Annual Salary”), in accordance with the regular payroll practices of CombinedCo applicable to senior executives as in effect from time
to time. The Compensation Committee of the Board of Directors (the “Compensation Committee”) may, in its sole discretion, periodically increase the amount of the Annual Salary (but not decrease such amount, except in
connection with across-the-board salary reductions generally applicable to the Company’s executive management team). For purposes of this Agreement, the Annual
Salary as increased or decreased from time to time shall constitute the “Annual Salary” as of the time of the change. 

3.2    Eligibility for Incentive Plans. During the Term, the Executive shall be eligible to participate in any
performance bonus plans or programs or long-term incentive or equity-based incentive compensation plans or programs of Parent, the Company and CombinedCo, as applicable, as in effect from time to time and in which the Company’s executive
management team is generally eligible to participate. The Executive’s annual incentive compensation bonus shall be determined as follows: 
  

			
	 If CombinedCo’s “Pre-CEO Bonus Adjusted

EBITDA” is:
	  	Bonus Amount
	 $1mm-$5mm
	  	$500,000
	 Over $5mm-$10mm
	  	$750,000
	 Over $10mm-$15mm
	  	$1.25mm
	 Over $15mm-$20mm
	  	$1.75mm
	 Over $20mm-$25mm
	  	$2.0mm
	 Over $25mm-$30mm
	  	$2.25mm
	 Over $30mm
	  	7.5% of the amount

  
 2 

 Fifty percent (50%) of any bonus amounts over $1 million will be paid in restricted stock of the Company,
which will be subject to forfeiture if CombinedCo’s Pre-CEO Bonus Adjusted EBITDA for the following fiscal year is negative. 

“Pre-CEO Bonus Adjusted EBITDA” means CombinedCo’s earnings before interest,
taxes, depreciation, amortization, stock-based compensation expenses associated with the transactions contemplated by the Merger Agreement and the annual incentive compensation bonus contemplated by this Section 3.2, as reasonably determined by
the Company. 
 3.3    Commencement Payment. Upon the Effective Date, Executive shall receive a commencement
payment of $3.5 million, payable in a single lump sum. 
 3.4    Benefits—In General. During the Term,
the Executive shall be permitted to participate in any group life, hospitalization or disability insurance plans, health programs, retirement plans, fringe benefit programs and other benefits or insurance plans that may be available to other senior
executives of CombinedCo generally in accordance with the terms of such plans or programs as in effect from time to time. 

3.5    Expenses—In General. The Company shall pay or reimburse the Executive for all ordinary and reasonable out-of-pocket expenses actually incurred (and, in the case of reimbursement, paid) by the Executive during the Term in the performance of the Executive’s services under
this Agreement, in accordance with the Company’s policies regarding such reimbursements as in effect from time to time. During the Term, the Company shall reimburse reasonable fees and expenses incurred by the Executive for participation in
professional and trade associations and reasonable expenses incurred in connection with business development and client entertainment activities. In addition, the Company will reimburse the Executive for the reasonable attorneys’ fees incurred
by him relating to the negotiation and documentation of this Agreement, subject to a maximum of $10,000. Payments and reimbursement under this Section 3.5 shall be made no later than March 15 of the calendar year following the year in
which the Executive incurred the expense. 
 4.    Termination due to Death or Disability. 

4.1    Date of Termination due to Death or Disability. If the Executive dies during the Term, the Term of this
Agreement and the Executive’s employment with the Company and CombinedCo shall terminate effective immediately as of the date of the Executive’s death, and the obligations of the Company to or with respect to the Executive shall terminate
in their entirety upon such date except as otherwise provided under this Section 4. If, during the Term, the Executive is unable to perform substantially and continuously the duties assigned to him due to a disability (as such term is defined
or used for purposes of the Company’s long-term disability plan then in effect, or, if no such plan is in effect, by virtue of ill health or other disability for more than one hundred eighty (180) consecutive or non-consecutive days out of any consecutive twelve (12)-month period) (“Disability”), the Company shall have the right, to the extent permitted by law, to terminate the employment of the
Executive upon thirty (30) days’ advance notice in writing to the Executive, and the Term of this Agreement and 

  
 3 

 
the Executive’s employment with the Company and CombinedCo shall terminate effective on the thirtieth (30th) day after delivery of such notice, and the obligations of the Company to or with
respect to the Executive shall terminate in their entirety upon such date except as otherwise provided under this Section 4. 

4.2    Obligations of the Company and Parent upon Termination due to Death or Disability. Upon termination of the
Term of this Agreement and the Executive’s employment with the Company and CombinedCo due to the Executive’s death or Disability, the Executive (or the Executive’s estate or beneficiaries in the case of the death of the Executive)
shall be entitled to receive the following payments and benefits at the times specified below (subject to Section 7): 

(a)    (i) an amount equal to the sum of (A) any Annual Salary actually earned under this Agreement prior to the
date of termination, (B) any accrued paid time off to the extent not theretofore paid, and (C) reimbursement for business expenses incurred prior to the date of Termination in accordance with the Company’s policies or
Section 3.4, which amount shall be paid within thirty (30) days of the date of Termination, and (ii) the annual incentive amount (if any) earned, but not yet paid to the Executive prior to the date of termination, under any bonus plan
of the Company or CombinedCo in which the Executive participated for the completed fiscal year of the Company prior to the date of termination as determined by the Compensation Committee, with such amount to be paid in cash at such time as the
Company or CombinedCo otherwise makes incentive payments for such fiscal year to the executive management team (and in all events no later than March 15th of the year following the year in which the date of termination occurs) (the amounts in
clauses (i) and (ii) referred to collectively as the “Accrued Obligations”); 

(b)    all outstanding and unvested incentive equity or equity-based awards and long- term incentive awards held by the
Executive shall immediately vest and any time-based forfeiture restrictions on incentive equity or equity-based awards held by Executive shall immediately lapse; provided that any awards that vest based on the achievement of performance goals
shall vest and be earned only upon achievement of the applicable performance goals or objectives (but disregarding any requirement for the Executive’s continued employment); provided, further, that if the applicable plan or award
agreement provides more beneficial treatment to the Executive and specifically provides that it supersedes the treatment under this Section 4.2(b), the more beneficial treatment in the applicable plan or award agreement shall apply; and
provided, further, that notwithstanding the foregoing, in the event of a Change in Control, the terms of the applicable plan and award agreements relating to a Change in Control shall apply if such provision is more beneficial to the
Executive (with settlement of any such outstanding award that constitutes nonqualified deferred compensation subject to Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) to occur only if such
Change in Control is a “change in control event” as defined in Treasury Regulation § 1.409A-3(i)(5)); 

  
 4 

 (c)    a pro-rata actual annual
incentive payment in respect of the fiscal year of the Company in which the date of termination occurs equal to the product of (i) the annualized Pre-CEO Bonus Adjusted EBITDA for the portion of the
fiscal year of the Company in which the date of termination occurs, and (ii) a fraction, the numerator of which is the number of days elapsed in the fiscal year of the Company in which occurs the date of termination through the date of
termination, and the denominator of which is 365 (such amount the “Pro-Rata Incentive Award”), with such amount to be paid in cash at such time as the Company otherwise makes incentive
payments for such fiscal year to the executive management team (and in all events no later than March 15th of the year following the year in which the date of termination occurs); and 

(d)    all rights and benefits under any retirement or other benefit plan or program (in accordance with their terms and
conditions) that are vested or to which the Executive is otherwise entitled as of the date of termination (the “Other Benefits”). 

Except as provided in this Section 4.2, the Executive shall have no further rights to any other compensation or benefits under this
Agreement on or after any termination of the Executive’s employment pursuant to this Section 4, and any unvested rights, benefits or incentive awards shall be forfeited as of the date of termination. 

4.3    Effect of Termination on Other Positions. Upon any termination under this Section 4, the Executive
shall be deemed to have resigned from all positions he then holds with the Company and any of its affiliates, including but not limited to the Board of Directors, and the Executive agrees to execute such documents and take such other actions as the
Company may request to reflect such resignation. 
 5.    Obligations of the Company and Parent upon Certain
Terminations of Employment (Other than Due to Death or Disability). 
 5.1    Termination by the Company for
Cause; Termination by the Executive without Good Reason. During the Term, the Company may terminate the Term of this Agreement and the Executive’s employment with Cause, and the Executive may terminate the Term of this Agreement and his
employment without Good Reason. 
 (a)    Definition of Cause. For purposes of this Agreement,
“Cause” shall mean the Executive’s: 
  

	 	(i)	conviction of, indictment for or formal admission to or plea of nolo contendere with respect to, a felony or a crime of moral turpitude, dishonesty, breach of trust, fraud, misappropriation, embezzlement or
unethical business conduct (but only if the Board of Directors reasonably determines, after considering all related facts and circumstances, that such indictment, conviction or plea has materially and adversely affected or is reasonably likely to
materially and adversely affect the Company’s or CombinedCo’s business or reputation), or any crime involving the Company or CombinedCo; 

  

	 	(ii)	 continued willful misconduct or willful or gross neglect in the performance of his duties hereunder, following
written notice of such misconduct or neglect and failure to remedy such misconduct or neglect 

  
 5 

	 	
within fifteen (15) days after delivery of such notice; provided, however, that the Board of Directors shall have the discretion (A) to require a remedial period that is shorter
than fifteen (15) days to remedy certain misconduct or neglect that the Board of Directors reasonably determines can be remedied in less than fifteen (15) days or (B) to offer no opportunity to remediate conduct or neglect that the
Board of Directors reasonably determines to be incapable of being cured; 

  

	 	(iii)	continued failure to materially adhere to the clear directions of the Company, to adhere to the Company’s or CombinedCo’s written policies, or to devote substantially all of his business time and efforts to
the Company or CombinedCo in accordance with and subject to the provisions of Section 2 hereof, and failure to cure such failure within fifteen (15) days after delivery of written notice of such failure; provided, however, that the
Board of Directors shall have the discretion (A) to require a remedial period that is shorter than fifteen (15) days to remedy certain failures that the Board of Directors reasonably determines can be remedied in less than fifteen
(15) days or (B) to offer no opportunity to remediate failures that the Board of Directors reasonably determines to be incapable of being cured; 

  

	 	(iv)	continued failure to substantially perform the duties properly assigned to the Executive by the Company or CombinedCo (other than any such failure resulting from his Disability) and failure to cure such failure within
fifteen (15) days after delivery of written notice of such failure; provided, however, that the Board of Directors shall have the discretion (A) to require a remedial period that is shorter than fifteen (15) days to remedy
certain failures that the Board of Directors reasonably determines can be remedied in less than fifteen (15) days or (B) to offer no opportunity to remediate failures that the Board of Directors reasonably determines to be incapable of
being cured; or 

  

	 	(v)	material and willful breach of any of the terms and conditions of this Agreement and failure to cure such breach within fifteen (15) days following written notice from the Company specifying such breach;
provided, however, that the Board of Directors shall have the discretion (A) to require a remedial period that is shorter than fifteen (15) days to remedy certain breaches that the Board of Directors reasonably determines can be
remedied in less than fifteen (15) days or (B) to offer no opportunity to remediate breaches that the Board of Directors reasonably determines to be incapable of being cured. 

(b)    Obligations of the Company upon Termination by the Company for Cause or Termination by the Executive without Good
Reason. If, during the Term, the Company terminates the Executive for Cause, or the Executive Terminates his employment and the termination by the Executive is not for Good Reason in accordance with Section 5.2 hereof, the Term of this
Agreement and the Executive’s employment with the Company 

  
 6 

 
shall terminate immediately in the case of a termination by the Company for Cause and on the thirtieth (30th) day following the date the Executive provides the Company with written notice of his
termination other than for Good Reason (or such earlier date as the Company and the Executive may agree), and the Executive shall be entitled to receive the Accrued Obligations and the Other Benefits, as provided and at the times set forth in
Section 4.2 above. The Executive shall have no further rights to any other compensation or benefits under this Agreement on or after any termination of the Executive’s employment pursuant to Section 5.1, and any unvested rights,
benefits or incentive awards shall be forfeited as of the date of termination. 
 (c)    Effect of Termination on
Other Positions. The Executive agrees that, upon any termination under Section 5.1, the he will be deemed to resign from all positions he then holds with the Company and any of its affiliates, including but not limited to the Board of
Directors, and the Executive agrees to execute such documents and take such other actions as the Company may request to reflect such resignation. 

5.2    Termination by the Company without Cause; Termination by the Executive for Good Reason. During the Term, the
Company may terminate the Term of this Agreement and the Executive’s employment without Cause, and the Executive may terminate the Term of this Agreement and his employment for Good Reason. 

(a)    Definition of Good Reason. For purposes of this Agreement, “Good Reason” shall mean:

  

	 	(i)	a “Change in Control” of the Company occurring after the Effective Date (as that term is defined in the Company’s Amended and Restated 2009 Stock Incentive Plan (or any successor thereto)),
followed within two (2) years following the Change in Control by any demotion of the Executive from his position as set forth in Section 2 or any material diminution in the Executive’s authority, duties and responsibilities (including
the Executive ceasing to report only to the CEO), or the assignment to the Executive of duties materially inconsistent with the Executive’s position with the Company as set forth in Section 2; provided, however, that any merger or
business combination of the Company solely with any affiliate of the Company shall not be deemed to be a Change in Control for purposes of this Agreement; 

  

	 	(ii)	a reduction in the Annual Salary of the Executive (except any such reduction that is part of across-the-board salary reductions generally
applicable to the Company’s executive management team); 

  

	 	(iii)	any demotion of the Executive from his position as set forth in Section 2 or any material diminution in the Executive’s authority, duties and responsibilities (including the Executive ceasing to report only to
the CEO); provided that, in no event shall the assignment by the CEO prior to a Change in Control of a portion of the Executive’s duties to a member of the senior management team who reports directly to the Executive constitute (or serve
as a basis for the Executive to claim) Good Reason under this clause (iii); or 

  
 7 

	 	(iv)	the failure of the Board of Directors to nominate the Executive for re-election as a member of the Board of Directors at the expiration of each then-current Term. 

In order to invoke a termination for Good Reason, the Executive shall provide written notice to the Company of the existence of one or more of
the conditions described in clauses (i) through (iv) within thirty (30) days following the initial existence of such condition or conditions, specifying in reasonable detail the conditions constituting Good Reason, and the Company
shall have thirty (30) days following receipt of such written notice (the “Cure Period”) during which it may remedy the condition if such condition is reasonably subject to cure. In the event that the Company fails to remedy
the condition constituting Good Reason during the applicable Cure Period, the Executive’s “separation from service” (within the meaning of Section 409A of the Code) must occur, if at all, within thirty (30) days following
such Cure Period in order for such termination as a result of such condition to constitute a termination for Good Reason. 
 The Executive
acknowledges and agrees that any determination whether an event constituting “Good Reason” has occurred shall be determined solely based on the terms of this Agreement and the terms and conditions of the Executive’s employment
hereunder following the Effective Date and shall not be determined on the basis of the Executive’s employment or compensation terms as in effect prior to the Effective Date, including the terms of the Prior Agreement and any predecessor
thereto. 
 (b)    Obligations of the Company and Parent upon Termination by the Company without Cause or a
Termination by the Executive for Good Reason. If, during the Term, the Company terminates the Executive’s employment without Cause, or the Executive terminates his employment for Good Reason, the Term of this Agreement and the
Executive’s employment with the Company shall terminate on the thirtieth (30th) day following the date the Company or the Executive, as applicable, provides the Company with written notice of termination (or such earlier date as the Company and
the Executive may agree), and the Executive shall be entitled to receive the following payments and benefits at the times specified below, subject to Section 5.3 and Section 7: 

 

	 	(i)	the Accrued Obligations and the Other Benefits, as provided and at the times set forth in Section 4.2 above; 

  

	 	(ii)	 an amount equal to the product of (A) one and one-half (1.5) and
(B) the amount equal to the sum of the Annual Salary paid to the Executive (including any amounts deferred) and the average of the annual incentive bonuses earned by the Executive under the Company’s annual incentive compensation plan
(including any annual incentive bonus amounts that were earned but deferred or that were satisfied through the grant of equity awards) with respect to the two (2) completed fiscal years of the Company preceding the date of Termination (the
“Average Annual Incentive”)  

  
 8 

	 	
(which product shall, in the case of such a Termination of employment occurring prior to a Change in Control and prior to the first anniversary of the Effective Date, be no less than $1.5
million), with such amount to be paid in equal installments during the twelve (12)-month period following the date of termination in accordance with the Employer’s regular payroll practices for the senior executives of CombinedCo as in effect
from time to time, with the first payment to be made on the first payroll date immediately following the sixty-first (61st) day after the date of termination (with accrued and unpaid installments from the date of Termination to be paid on the
payroll date on which the first installment is paid) and the last installment to be paid on the payroll date on or immediately following the date that is twelve (12) months after the date of termination; provided, however, if the date of
termination occurs within two (2) years following a Change in Control (which is a “change in control event” as defined in Treasury Regulation § 1.409A- 3(i)(5)), the amount described in this subsection (ii) shall
be calculated with each component based on the greater of the Executive’s Annual Salary and Average Annual Incentive as of the date of the Change in Control or the date of termination, and shall be paid in a single lump sum payment on the first
payroll date immediately following the sixty-first (61st) day after the date of Termination; 

  

	 	(iii)	an amount equal to the Pro-Rata Incentive Award, with such amount to be paid in cash at such time as the Company otherwise makes incentive payments for such fiscal year to the
executive management team (and in all events no later than March 15th, of the year following the year in which the date of termination occurs); 

  

	 	(iv)	(A) all unvested incentive equity or equity-based awards held by Executive, including any performance-based cash or equity-based awards that are not intended to qualify as “performance based compensation”
under Section 162(m) of the Code, shall immediately vest and any time-based forfeiture restrictions on incentive equity or equity-based awards held by Executive shall immediately lapse (effective as of the expiration of the revocation period as
described in Section 5.3 with respect to the Release Requirement); and (B) unvested incentive equity or equity-based awards that are intended to qualify as “performance based compensation” under Section 162(m) of the Code shall
vest and be earned only upon achievement of the applicable performance goals or objectives (but disregarding any requirement for the Executive’s continued employment); provided, however, that notwithstanding the foregoing, in the event
of a Change in Control, the terms of the applicable plan and award agreements relating to a Change in Control shall apply if such provision is more beneficial to the Executive (with settlement of any such outstanding award that constitutes
nonqualified deferred compensation subject to Section 409A of the Code to occur only if such Change in Control is a “change in control event” as defined in Treasury Regulation
§ 1.409A-3(i)(5)); and 

  
 9 

	 	(v)	for a period of three (3) years after the date of Termination, continued coverage of the Executive and his “qualified beneficiaries” (as defined in Section 4980B of the Code (“COBRA”)
under the group health plans of the Company that the Executive and his qualified beneficiaries would have been eligible to receive in the absence of such Termination of employment, at the Company’s expense and with any such deemed premiums
to be imputed as income to the Executive to the extent the Company determines to be necessary; provided that the Company shall in no event be required to provide such coverage under the Company’s plans pursuant to COBRA after such time
as the Executive or the qualified beneficiary, as applicable, is no longer eligible for continued coverage under COBRA. For the portion of such three (3)-year period after the Executive or a qualified beneficiary is no longer eligible to receive
continuing coverage under the Company’s group health plans under COBRA, the Company shall reimburse the health insurance premiums incurred by the Executive under a private health insurance plan that provides substantially similar benefits for
the Executive and his qualified beneficiaries and is reasonably acceptable to the Company. Notwithstanding the foregoing, the Company shall in no event be required to provide or reimburse the cost of any benefits otherwise required by this
clause (v) after such time as the Executive or the qualified beneficiary, as applicable, becomes entitled to receive benefits of the same type from another employer’s health care plan. Any reimbursement of premiums under this
clause (v) shall be made in arrears on the first (1st) business day of each calendar quarter, subject to the Executive’s providing the Company with evidence of continuing coverage under any such private plan. 

Except as provided in Section this 5.2, the Executive shall have no further rights to any other compensation or benefits under
this Agreement on or after any termination of the Executive’s employment pursuant to this Section 5.2, and any unvested rights, benefits or incentive awards shall be forfeited as of the date of termination. 

(c)    Effect of Termination on Other Positions. The Executive agrees that, upon any termination under this
Section 5.2 or otherwise, he will be deemed to resign from all positions he then holds with the Company and any of its affiliates, including but not limited to the Board of Directors, and the Executive agrees to execute such documents and take
such other actions as the Company may request to reflect such resignation. 
 5.3    Condition to Rights and Benefits
of Executive. All rights and benefits to which the Executive may be entitled under Section 5.2 (other than the Accrued Obligations and the Other Benefits) shall be subject to the Executive’s continuing performance in all material
respects of the covenants of the Executive contained in Section 6 and Section 9.1 of this Agreement and the delivery to the Company of an executed release of claims against the 

  
 10 

 
Company and its affiliates in a form substantially similar to the release of claims requested by the Company from other employees in connection with employment terminations (with such updates and
modifications as the Company determines are necessary) and the expiration (without the Executive revoking) of any applicable non-revocation period set forth in such release no later than fifty-five
(55) days after the date of Termination of employment (the “Release Requirement”). 

6.    Covenants of the Executive. 

6.1    Covenant Against Competition; Other Covenants. The Executive acknowledges that (i) the Executive’s
work for the Company will give him access to the confidential affairs and proprietary information of the Company and its affiliates, (ii) the covenants and agreements of the Executive contained in this Section 6 are essential to the
business and goodwill of Parent and constitute part of the consideration and inducement to Parent to enter into the Merger Agreement and consummate the transactions contemplated thereby, and (iii) the Company would not have entered into this
Agreement but for the covenants and agreements set forth in this Section 6. Accordingly, the Executive covenants and agrees that: 

(a)    Confidentiality. During and after the period of the Executive’s employment with the Company and its
affiliates, the Executive shall keep secret and retain in strictest confidence, except in connection with the business and affairs of the Company and its affiliates and as otherwise required by law, all confidential matters relating to the business
and affairs of the Company or any of its affiliates learned by the Executive heretofore or hereafter directly or indirectly from the Company or any of its affiliates (the “Confidential Company Information”) and shall not
disclose such Confidential Company Information to anyone outside of the Company or its affiliates except as required by law or with the Company’s express written consent and except for Confidential Company Information which is, at the time of
receipt, or thereafter becomes, publicly known through no wrongful act of the Executive. For the avoidance of doubt, nothing in this Agreement, including Section 6 and Section 9.1, prohibits the Executive from reporting possible violations
of federal law or regulation or making other disclosures that are protected under (or claiming any award under) the whistleblower provisions of federal law or regulation. The Executive is hereby notified that the Executive or a representative
thereof may have immunity from civil or criminal liability for the confidential disclosure of a trade secret to the government or in a court filing, as more particularly described in Section 1833 of Title 18 of the United States Code. 

(b)    Noncompetition. 
  

	 	(i)	 The Executive agrees that during the Term and for a period of twelve (12) months following the termination
of the Executive’s employment with the Company either by the Company with or without Cause or by the Executive with or without Good Reason (the “Restricted Period”), the Executive shall not, without the express written
consent of the Company, directly or indirectly, anywhere in the United States, (A) own an interest in, join, operate, control or participate in, be connected as an owner, 

  
 11 

	 	
officer, executive, employee, partner, member, manager, shareholder, or principal of or with, or otherwise aid or assist in any manner whatsoever, any corporation or other entity that competes
with the business of CombinedCo as then conducted, including, without limitation, those middle market-focused investment banking or brokerage entities that are in direct competition with the business of CombinedCo, including its capital markets
and/or institutional sales and trading business, or (B) engage in any activity in any capacity for any corporation or other entity, whether or not competitive with CombinedCo, relating to or involving institutional equity private placement
transactions (including transactions under Rule 144A). 

  

	 	(ii)	Notwithstanding the foregoing, the Executive may (A) own up to one percent (1%) of the outstanding stock of a publicly held corporation which is or is affiliated with an entity or person that is in competition with
CombinedCo or its subsidiaries or (B) be an officer, executive, employee, partner, member, manager, shareholder, or principal of or with a private equity fund or a third-party asset management firm. 

(c)    Nonsolicitation. During the Term and the Restricted Period, (i) the Executive shall not, without the
Company’s prior written consent, directly or indirectly, knowingly (A) solicit or encourage to leave the employment or other service of the Company, or any of its affiliates, any employee or independent contractor thereof or (B) hire
(on behalf of the Executive or any other person or entity) any employee who has left the employment of the Company or any of its affiliates within the twelve (12)-month period which follows the termination of such employee’s employment with the
Company and its affiliates, and (ii) the Executive will not, whether for his own account or for the account of any other person, firm, corporation or other business organization, intentionally interfere with the Company’s or any of its
affiliates’ relationship with, or endeavor to entice away from the Company or any of its affiliates, any person who during the Term is or was, within the preceding year, a customer or client of the Company or any of its affiliates, nor shall
Executive aid or assist in any manner whatsoever any person, firm, corporation or other business in doing any of the things described in clauses (i) or (ii) above. 

6.2    Rights and Remedies upon Breach. The Executive acknowledges and agrees that any breach by him of any of the
provisions of Section 6.1 (the “Restrictive Covenants”) would result in irreparable injury and damage for which money damages would not provide an adequate remedy. Therefore, if the Executive breaches, or threatens to
commit a breach of, any of the provisions of Section 6.1, the Company and its affiliates, in addition to, and not in lieu of, any other rights and remedies available to the Company and its affiliates under law or in equity (including, without
limitation, the recovery of damages) and the cessation of any payments or benefits otherwise provided under Section 5.2 of this Agreement, shall have the right and remedy to have the Restrictive Covenants specifically enforced by any court
having equity jurisdiction, including, without limitation, the right to an entry against the Executive of restraining orders and injunctions (preliminary, mandatory, temporary and permanent) against violations, threatened or actual, and whether or
not then continuing, of such covenants. 

  
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 7.    Code Section 409A. 

7.1    General. It is intended that this Agreement shall comply with the provisions of Section 409A of the Code
or an exemption to Section 409A of the Code. Any payments that qualify for the “short-term deferral” exception, the “separation pay” exception or another exception under Section 409A of the Code shall be paid under the
applicable exception. For purposes of the limitations on nonqualified deferred compensation under Section 409A of the Code, each payment of compensation under this Agreement shall be treated as a separate payment of compensation. All payments
to be made upon a Termination of employment under this Agreement may only be made upon a “separation from service” under Section 409A of the Code. In no event may the Executive, directly or indirectly, designate the calendar year of
any payment under this Agreement. Within the time period permitted under Section 409A of the Code or guidance issued thereunder, the Company may, in consultation with the Executive, modify this Agreement in order to cause the provisions of this
Agreement to comply with the requirements of Section 409A of the Code. 

7.2    In-Kind Benefits and Reimbursements. Notwithstanding anything to the
contrary in this Agreement, all reimbursements and in-kind benefits that constitute nonqualified deferred compensation under Section 409A provided under this Agreement shall be made or provided in
accordance with the requirements of Section 409A of the Code, including, where applicable, the requirement that (a) any reimbursement is for expenses incurred during the Executive’s lifetime (or during a shorter period of time
specified in this Agreement); (b) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year; (c) the reimbursement of an eligible expense will be made no later than the last day of the calendar year following the year in which the expense is
incurred; and (d) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit. 

7.3    Delay of Payments. Notwithstanding any other provision of this Agreement to the contrary, if the Executive
is considered a “specified employee” for purposes of Section 409A of the Code (as determined in accordance with the methodology established by the Company as in effect on the date of termination), (a) any payment that constitutes
nonqualified deferred compensation within the meaning of Section 409A of the Code that is payable on account of the Executive’s separation from service and is otherwise due to the Executive under this Agreement during the six (6)-month
period following his separation from service (as determined in accordance with Section 409A of the Code) shall be accumulated and paid to the Executive on the fourteenth (14th) day of the seventh (7th) month following his separation from
service (the “Delayed Payment Date” ) and (b) in the event any equity compensation awards held by the Executive that vest on account of the Executive’s separation from service constitute nonqualified
deferred compensation within the meaning of Section 409A of the Code, the delivery of shares of common stock (or cash) as applicable in settlement of such awards shall be made on the earliest permissible payment date (including the Delayed
Payment Date) or event under Section 409A of the Code on which the shares (or cash) would otherwise be delivered or paid. If the Executive dies during the postponement period, the amounts and entitlements delayed on account of Section 409A
of the Code shall be paid to the personal representative of his estate on the first to occur of the Delayed Payment Date or thirty (30) days after the date of the Executive’s death. 

  
 13 

 8.    Code Section 280G. 

8.1    Certain Reductions in Payments. Anything in this Agreement to the contrary notwithstanding, in the event that
the Accounting Firm (as defined below) determines that receipt of all Payments (as defined below) would subject the Executive to the tax under Section 4999 of the Code, the Accounting Firm shall determine whether to reduce any of the Agreement
Payments (as defined below) to the Executive so that the Parachute Value (as defined below) of all Payments to the Executive, in the aggregate, equals the applicable Safe Harbor Amount (as defined below). Agreement Payments shall be so reduced only
if the Accounting Firm determines that the Executive would have a greater Net After-Tax Receipt (as defined below) of aggregate Payments if the Agreement Payments were so reduced. If the Accounting Firm
determines that the Executive would not have a greater Net After-Tax Receipt of aggregate Payments if the Agreement Payments were so reduced, the Executive shall receive all Agreement Payments to which the
Executive is entitled hereunder. The provisions of this Section 8 shall be the exclusive provisions applicable to the Executive relating to Section 280G of the Code and any provisions relating to Section 280G of the Code contained in
any plan of the Company, including Section 11.4 of the 2006 Long-Term Incentive Plan (as amended and restated effective June 30, 2010), will be inapplicable to the Executive. 

8.2    Determination by the Accounting Firm. If the Accounting Firm determines that the aggregate Agreement
Payments to the Executive should be reduced so that the Parachute Value of all Payments to the Executive, in the aggregate, equals the applicable Safe Harbor Amount, the Company shall promptly give the Executive notice to that effect and a copy of
the detailed calculation thereof. All determinations made by the Accounting Firm under this Section 8 shall be binding upon the Company and the Executive and shall be made as soon as reasonably practicable and in no event later than fifteen
(15) days following the date of the Executive’s termination of employment. 
 8.3    Reductions. For
purposes of reducing the Agreement Payments to the Executive so that the Parachute Value of all Payments to the Executive, in the aggregate, equals the applicable Safe Harbor Amount, only Agreement Payments (and no other Payments) shall be reduced.
The reduction contemplated by this Section 8, if applicable, shall be made by reducing payments and benefits (to the extent such amounts are considered Payments) under the following sections in the following order:
(i) Section 5.2(b)(ii) beginning with payments that would be made last in time, (ii) Section 5.2(b)(iii), and (iii) Section 5.2(b)(iv). 

8.4    Overpayments; Underpayments. As a result of the uncertainty in the application of Section 4999 of the
Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that amounts will have been paid or distributed by the Company to or for the benefit of the Executive pursuant to this Agreement that should not have been
so paid or distributed (each, an “Overpayment”) or that additional amounts that will have not been paid or distributed by the Company to or for the benefit of the Executive pursuant to this Agreement could have been so paid
or distributed (each, an “Underpayment”), in each case, consistent with the calculation of the applicable Safe Harbor Amount hereunder. In the event that the 

  
 14 

 
Accounting Firm, based on the assertion of a deficiency by the Internal Revenue Service against the Company or the Executive that the Accounting Firm believes has a high probability of success,
determines that an Overpayment has been made, any such Overpayment paid or distributed by the Company to or for the benefit of the Executive shall be repaid by the Executive to the Company, together with interest at the applicable federal rate
provided for in Section 7872(f)(2) of the Code; provided, however, that (a) no such repayment shall be required if and to the extent such deemed repayment would not either reduce the amount on which the Executive is subject to
tax under Sections 1 and 4999 of the Code or generate a refund of such taxes; and (b) to the extent such repayment would generate a refund of such taxes, the Executive shall only be required to pay to the Company the
Overpayment less the amount of tax to be refunded and to transfer the refund of such taxes to the Company when received. In the event that the Accounting Firm, based on controlling precedent or substantial authority, determines that an
Underpayment has occurred, any such Underpayment shall be promptly paid by the Company to or for the benefit of the Executive, together with interest at the applicable federal rate provided for in Section 7872(f)(2) of the Code.

 8.5    Reasonable Compensation. In connection with making determinations under this Section 8, the
Accounting Firm shall take into account the value of any reasonable compensation for services to be rendered by the Executive before or after the change of control, including any noncompetition provisions that may apply to the Executive (whether set
forth in this Agreement or otherwise), and the Company shall cooperate in the valuation of any such services, including any non-competition provisions. 

8.6    Fees and Expenses. All fees and expenses of the Accounting Firm in implementing the provisions of this
Section 8 shall be borne by the Company. 
 8.7    Certain Definitions. The following terms shall have the
following meanings for purposes of this Section 8. 
 (a)    “Accounting Firm” shall mean a
nationally recognized certified public accounting firm (which accounting firm shall in no event be the accounting firm for the entity seeking to effectuate such change in control) or other professional services organization that is a certified
public accounting firm recognized as an expert in determinations and calculations for purposes of Section 280G of the Code that is selected by the Company (as it exists prior to a change of control) and reasonably acceptable to the Executive
for purposes of making the applicable determinations hereunder. 
 (b)    “Agreement Payment”
shall mean a Payment paid or payable pursuant to this Agreement. 
 (c)    “Net After-Tax Receipt” shall mean the Present Value of a Payment net of all taxes imposed on the Executive with respect thereto under Sections 1 and 4999 of the Code and under applicable state,
local, and foreign laws, determined by applying the highest marginal rate under Section 1 of the Code and under state, local, and foreign laws that applied to the Executive’s taxable income for the immediately preceding taxable year, or
such other rate as such Executive shall certify, in the Executive’s sole discretion, as likely to apply to the Executive in the relevant tax year. 

  
 15 

 (d)    “Parachute Value” of a Payment shall mean the
present value as of the date of the change in control for purposes of Section 280G of the Code of the portion of such Payment that constitutes a “parachute payment” under Section 280G(b)(2) of the Code, as determined by the
Accounting Firm for purposes of determining whether and to what extent the excise tax under Section 4999 of the Code will apply to such Payment. 

(e)    A “Payment” shall mean any payment or distribution in the nature of compensation (within the
meaning of Section 280G(b)(2) of the Code) to or for the benefit of the Executive, whether paid or payable pursuant to this Agreement or otherwise. 

(f)    “Present Value” of a Payment shall mean the economic present value of a Payment as of the
date of the change in control for purposes of Section 280G of the Code, as determined by the Accounting Firm using the discount rate required by Section 280G(d)(4) of the Code. 

(g)    “Safe Harbor Amount “ means (x) 3.0 times the Executive’s “base amount,”
within the meaning of Section 280G(b)(3) of the Code, minus (y) $1.00. 
 9.    Miscellaneous. 

9.1    Non-Disparagement; Cooperation. The Executive agrees that he will not
(except as reasonably required by law), whether during or after the Executive’s employment with the Company, make any statement, orally or in writing, regardless of whether such statement is truthful, nor take any action, that (a) in any
way could disparage the Company or any of its affiliates, or any officer, executive, director, partner, manager, member, principal, employee, representative, or agent of the Company or any of its affiliates, or which foreseeably could or reasonably
could be expected to harm the reputation or goodwill of any of those persons or entities, or (b) in any way, directly or indirectly, could knowingly cause, encourage or condone the making of such statements or the taking of such actions by
anyone else. In addition, following any termination of employment, the Executive will cooperate with the Company as reasonably requested by the Company regarding any dispute, claim or investigation by, against or involving the Company or any of its
affiliates regarding matters of which the Executive has particular knowledge relating to the period of the Executive’s employment. 

9.2    Severability. The Executive acknowledges and agrees that (a) he has had an opportunity to seek advice
of counsel in connection with this Agreement and (b) the Restrictive Covenants are reasonable in geographical and temporal scope and in all other respects. If it is determined that any of the provisions of this Agreement, including, without
limitation, any of the Restrictive Covenants, or any part thereof, is invalid or unenforceable, the remainder of the provisions of this Agreement shall not thereby be affected and shall be given full effect, without regard to the invalid portions.

 9.3    Duration and Scope of Covenants. If any court or other decision-maker of competent jurisdiction
determines that any of the Executive’s covenants contained in this Agreement, including, without limitation, any of the Restrictive Covenants, or any part thereof, is unenforceable because of the duration or geographical scope of such
provision, then, after such 

  
 16 

 
determination has become final and unappealable, the duration or scope of such provision, as the case may be, shall be reduced so that such provision becomes enforceable and, in its reduced form,
such provision shall then be enforceable and shall be enforced. 
 9.4    Enforceability; Jurisdiction; Arbitration.
Any controversy or claim arising out of or relating to this Agreement or the breach of this Agreement (other than a controversy or claim arising under Section 6, and to the extent necessary for the Company or its affiliates, where
applicable, to avail itself of the rights and remedies referred to in Section 6.2) that is not resolved by the Executive and the Company (or its affiliates, where applicable) shall be submitted to arbitration in the Washington, D.C. area in
accordance with Virginia law and the procedures of the American Arbitration Association. The determination of the arbitrator(s) shall be conclusive and binding on the Company (or its affiliates, where applicable) and the Executive, and judgment may
be entered on the arbitrator(s)’ award in any court having jurisdiction. 
 9.5    Notices. Any notice or
other communication required or permitted hereunder shall be in writing and shall be delivered personally, sent by facsimile or electronic transmission, or sent by certified, registered or express mail, postage prepaid. Any such notice shall be
deemed given when so delivered personally, or sent by facsimile or electronic transmission or, if mailed, five (5) days after the date of deposit in the United States mails as follows: 

If to the Company, to: 
 B. Riley
Financial, Inc. 
 21860 Burbank Boulevard, Suite 300 South 

Woodland Hills, California 91367 

Attention: Alan N. Forman 
 Email:
aforman@brileyfin.com 
 Facsimile: (818) 746-9170 

If to the Executive, to the address set forth on the signature page hereof. 

Any such person may by written notice given in accordance with this Section 9.5 to the other parties hereto designate another address or person for
receipt by such person of notices hereunder. 
 9.6    Entire Agreement. This Agreement contains the entire
agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, written or oral, with respect thereto. Effective as of the Effective Date, this Agreement shall supersede and replace the Prior Agreement.

 9.7    Waivers and Amendments. This Agreement may be amended, superseded, canceled, renewed or extended, and
the terms hereof may be waived, only by a written instrument signed by the parties hereto. No delay on the part of any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of
any party of any such right, power or privilege nor any single or partial exercise of any such right, power or privilege, preclude any other or further exercise thereof or the exercise of any other such right, power or privilege. 

  
 17 

 9.8    GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE COMMONWEALTH OF VIRGINIA WITHOUT REGARD TO ANY PRINCIPLES OF CONFLICTS OF LAW WHICH COULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE COMMONWEALTH OF VIRGINIA. 

9.9    Assignment. This Agreement shall be binding upon and inure to the benefit of the parties and their
respective successors, heirs (in the case of the Executive) and assigns. No rights or obligations of the Company under this Agreement may be assigned or transferred by the Company except that such rights or obligations may be assigned or
transferred, pursuant to a merger or consolidation in which the Company is not the continuing entity, or the sale or liquidation of all or substantially all of the assets of the Company; provided, however, that the assignee or transferee is
the successor to all or substantially all of the assets of the Company and such assignee or transferee assumes the liabilities, obligations and duties of the Company, as contained in this Agreement, either contractually or as a matter of law. 

9.10    Withholding. The Company shall be entitled to withhold from any payments or deemed payments any amount of
tax withholding it determines to be required by law. 
 9.11    Counterparts. This Agreement may be executed by
the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original but all such counterparts together shall constitute one and the same instrument. Each counterpart may consist of two (2) copies
hereof each signed by one of the parties hereto. 
 9.12    Survival. The provisions of Section 6 and any
other provisions of this Agreement that expressly impose obligations that survive termination of the Executive’s employment hereunder, and the provisions of this Section 9 to the extent necessary to effectuate the survival of such
provisions, shall survive termination of this Agreement and any termination of the Executive’s employment hereunder. 

9.13    Headings. The headings in this Agreement are for reference only and shall not affect the interpretation of
this Agreement. 

  
 18 

 IN WITNESS WHEREOF, the parties hereto have signed their names as of the day and year first above
written. 
  

			
	B. RILEY & CO, LLC
		
	BY:	 	 /s/ Bryant R. Riley

	Name:	 	Bryant R. Riley
	Title:	 	Chairman & CEO

  

			
	EXECUTIVE
		
	Signature:	 	 /s/ Richard J. Hendrix

		 	Richard J. Hendrix

 Solely with respect to its obligations under this Agreement: 

 

			
	B. RILEY FINANCIAL, INC.
		
	BY:	 	 /s/ Bryant R. Riley

	Name:	 	Bryant R. Riley
	Title:	 	Chairman & CEO

  
 19

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