Document:

Rights Agreement, dated as of January 6, 2009

 Exhibit 4.1 
 SEI INVESTMENTS COMPANY 
 and 
 AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC 
 as Rights Agent 
 RIGHTS AGREEMENT 
 Dated as of January 6,
2009 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 Section 1.
	  	Certain Definitions	  	2
			
	 Section 2.
	  	Appointment of Rights Agent	  	4
			
	 Section 3.
	  	Issue of Rights Certificates	  	4
			
	 Section 4.
	  	Form of Rights Certificates	  	6
			
	 Section 5.
	  	Countersignature and Registration	  	7
			
	 Section 6.
	  	Transfer, Split Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights Certificates	  	7
			
	 Section 7.
	  	Exercise of Rights; Purchase Price; Expiration Date of Rights	  	8
			
	 Section 8.
	  	Cancellation and Destruction of Rights Certificates	  	10
			
	 Section 9.
	  	Reservation and Availability of Capital Stock; Registration of Securities	  	10
			
	 Section 10.
	  	Capital Stock Record Date	  	12
			
	 Section 11.
	  	Adjustment of Purchase Price, Number and Kind of Shares or Number of Rights	  	12
			
	 Section 12.
	  	Certificate of Adjusted Purchase Price or Number of Shares	  	21
			
	 Section 13.
	  	Consolidation, Merger or Sale or Transfer of Assets or Transfer of Assets or Earning Power	  	21
			
	 Section 14.
	  	Fractional Rights and Fractional Shares	  	23
			
	 Section 15.
	  	Rights of Action	  	25
			
	 Section 16.
	  	Agreement of Rights Holders	  	25
			
	 Section 17.
	  	Rights Certificate Holder Not Deemed a Shareholder	  	26
			
	 Section 18.
	  	Concerning the Rights Agent	  	26
			
	 Section 19.
	  	Merger or Consolidation or Change of Name of Rights Agent	  	27
			
	 Section 20.
	  	Duties of Rights Agent	  	27
			
	 Section 21.
	  	Change of Rights Agent	  	29
			
	 Section 22.
	  	Issuance of New Rights Certificates	  	30
			
	 Section 23.
	  	Redemption and Termination	  	30
			
	 Section 24.
	  	Exchange	  	31
			
	 Section 25.
	  	Notice of Certain Events	  	32
			
	 Section 26.
	  	Notices	  	33
			
	 Section 27.
	  	Supplements and Amendments	  	34
			
	 Section 28.
	  	Successors	  	34

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
			
	 Section 29.
	  	Determinations and Actions by the Board, etc.	  	34
			
	 Section 30.
	  	Benefits of this Agreement	  	35
			
	 Section 31.
	  	Severability	  	35
			
	 Section 32.
	  	Governing Law	  	35
			
	 Section 33.
	  	Counterparts	  	35
			
	 Section 34.
	  	Descriptive Headings	  	36

 Exhibit A – Resolution of the Board of Directors with respect to Series A Junior Participating Preferred
Shares 
 Exhibit B – Form of Rights Certificate 
 Exhibit
C – Form of Summary of Rights 
  

 -ii- 

 RIGHTS AGREEMENT 
 RIGHTS AGREEMENT, dated as of January 6, 2009 (the “Agreement”), between SEI INVESTMENTS COMPANY, a Pennsylvania corporation (the “Company”), and AMERICAN STOCK TRANSFER & TRUST
COMPANY, LLC, a New York limited liability company (the “Rights Agent”). 
 W I T N E S S E T H 
 WHEREAS, on December 16, 2008 (the “Rights Dividend Declaration Date”), the Board of Directors of the Company (the “Board”)
authorized and declared a dividend distribution of one Right for each Common Share (as hereinafter defined) of the Company outstanding at the Close of business on January 6, 2009 (the “Record Date”) (which for these purposes shall
include all Common Shares presently entitled to receive dividends) and has authorized the issuance of one Right (as such number may hereafter be adjusted pursuant to the provisions of Section 11(p) hereof) for each Common Share of the Company
issued between the Record Date (whether originally issued or delivered from the Company’s treasury) and the Distribution Date (as hereinafter defined), each Right initially representing the right to purchase one twenty-thousandths of a
Preferred Share (as hereinafter defined) of the Company having the rights, powers and preferences set forth in the form of the Resolution of the Board attached hereto as Exhibit A, upon the terms and subject to the conditions hereinafter set forth
(the “Rights”); and 
 WHEREAS, the Rights will be held by the Rights Agent under this Agreement as trustee for the shareholders of
the Company until the Distribution Date; and 
 WHEREAS, the Board has considered whether approval of this Agreement and the distribution of
the Rights is in the best interests of the Company and all other pertinent factors; and 
 WHEREAS, the Board has concluded that approval of
this Agreement and the distribution of the Rights is in the best interests of the Company because the existence of the Rights will help (i) reduce the risk of coercive two-tiered, front-end loaded or partial offers that may not offer fair value
to all shareholders, (ii) mitigate against market accumulators who through open market and/or private purchases may achieve a position of substantial influence or control without paying to selling or remaining shareholders a fair control
premium, (iii) deter market accumulators who are simply interested in putting the Company into “play,” (iv) restrict self-dealing by a substantial shareholder, and (v) preserve the Board’s bargaining power and
flexibility to deal with third-party acquirers and to otherwise seek to maximize values for all shareholders. 

 NOW, THEREFORE, in consideration of the premises and the mutual agreements herein set forth, and
intending to be legally bound hereby, the parties hereby agree as follows: 
 Section 1. Certain Definitions. 
 For purposes of this Agreement, the following terms have the meanings indicated: 
 (a) “Acquiring Person” shall mean any Person, who or which, together with all Affiliates and Associates of such Person, shall be
the Beneficial Owner of 20% or more of the Common Shares then outstanding, but shall not include (i) Alfred P. West, Jr., (ii) the Company, (iii) any Subsidiary of the Company, (iv) any employee benefit plan of the Company or of
any Subsidiary of the Company or (v) any Person or entity organized, appointed or established by the Company for or pursuant to the terms of any such plan. A transfer of Common Shares by Alfred P. West, Jr. or his spouse, directly or
indirectly, to a member of his immediate family shall not alone cause such immediate family member to become an Acquiring Person, but any subsequent acquisitions which aggregate to 1% or more of the total outstanding Common Shares by such immediate
family member, other than from Alfred P. West, Jr. or his spouse, will cause such immediate family member to become an Acquiring Person if after such acquisitions such immediate family member, together with all Affiliates and Associates, shall be
the Beneficial Owner of 20% or more of the Common Shares then outstanding. Notwithstanding the foregoing, if a majority of the Board determines in good faith that a Person who would otherwise be an “Acquiring Person”, as defined pursuant
to the foregoing provisions of this paragraph (a), has become such inadvertently, and such Person divests as promptly as practicable a sufficient number of Common Shares so that such Person would no longer be an Acquiring Person, as defined pursuant
to the foregoing provisions of this paragraph (a), then such Person shall not be deemed to be an “Acquiring Person” for purposes of this Agreement. 
 (b) “Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2 of the General
Rules and Regulations under the Securities Exchange Act of 1934, as amended and in effect on the date hereof (the “Exchange Act”). 
 (c) A Person shall be deemed the “Beneficial owner” of, and shall be deemed to “beneficially own,” any securities: 
 (i) that such Person or any of such Person’s Affiliates or Associates, directly or indirectly, has the right to acquire (whether such
right is exercisable immediately or only after the passage of time) pursuant to any agreement, arrangement or understanding (whether or not in writing) or upon the exercise of conversion rights, exchange rights, rights, warrants or options, or
otherwise; provided, however, that a Person shall not be deemed the “Beneficial Owner” of, or to “beneficially own,” (A) securities tendered pursuant to a tender or exchange offer made by such Person or any of such
Person’s Affiliates or Associates until such tendered securities are accepted for payment, purchase or exchange, or (B) securities issuable upon exercise of Rights at any time prior to the occurrence of a Triggering Event, or
(C) securities issuable upon exercise of Rights from and after the occurrence of a Triggering Event which Rights were acquired by such Person or any of such Person’s Affiliates or Associates prior to the Distribution Date or pursuant to
Section 3(a) or Section 22 hereof (the “Original Rights”) or pursuant to Section 11(i) hereof in connection with an adjustment made with respect to any original Rights; 
 (ii) that such Person or any of such Person’s Affiliates or Associates, directly or indirectly, has the right to vote or dispose of
or has “beneficial ownership” of (as determined pursuant to Rule 13d-3 of the General Rules and Regulations under the Exchange Act), including without limitation pursuant to any agreement, arrangement or understanding, whether or not in
writing; provided, however, that a Person shall not be deemed the “Beneficial 

  

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Owner” of, or to “beneficially own,” any security under this subparagraph (ii) as a result of an oral or written agreement, arrangement
or understanding to vote such security if such agreement, arrangement or understanding: (A) arises solely from a revocable proxy given in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the
applicable provisions of the General Rules and Regulations under the Exchange Act, and (B) is not also then reportable by such Person on Schedule 13D under the Exchange Act (or any comparable or successor report); or 
 (iii) that are beneficially owned, directly or indirectly, by any other Person (or any Affiliate or Associate thereof) with which such
Person (or any of such Person’s Affiliates or Associates) has any agreement, arrangement or understanding (whether or not in writing), for the purpose of acquiring, holding, voting (except pursuant to a revocable proxy as described in the
proviso to subparagraph (ii) of this paragraph (c)) or disposing of any voting securities of the Company, provided, however, that nothing in this paragraph (c) shall cause a person engaged in business as an underwriter of securities to be
the “Beneficial Owner” of, or to “beneficially own,” any securities acquired through such Person’s participation in good faith in a firm commitment underwriting until the expiration of forty days after the date of such
acquisition. 
 (d) “Business Day” shall mean any day other than a Saturday, Sunday or a day on which banking
institutions in the State of New York or the Commonwealth of Pennsylvania are authorized or obligated by law or executive order to close. 
 (e) “Close of Business” on any given date shall mean 5:00 P.M., New York time, on such date; provided, however, that if such date is not a Business Day it shall mean 5:00 P.M., New York time, on the next
succeeding Business Day. 
 (f) “Common Share” shall mean, when used with references to the Company, a share of
common stock, par value $0.01 per share, of the Company and, to the extent that there are not a sufficient number of Common Shares authorized to permit the full exercise of the Rights, shares of any other class or series of the Company designated
for such purpose containing terms substantially similar to the terms of the Common Shares, except that “Common Share” when used with reference to any Person other than the Company shall mean the shares of common stock of such Person with
the greatest voting power, or the equity securities or other equity interest having power to control or direct the management, of such Person. 
 (g) “Distribution Date” shall have the meaning set forth in Section 3 hereof. 
 (h) “Expiration Date” shall have the meaning set forth in Section 7(a) hereof. 
 (i)
“Person” shall mean any individual, firm, corporation, partnership, limited liability company or other entity. 
 (j) “Preferred Share” shall mean a share of Series A Junior Participating Preferred Shares, par value $0.05 per share, of the Company and, to the extent that there are not a sufficient number of shares of Series A Junior
Participating Preferred Shares authorized to permit the full exercise of the Rights, shares of any other series of Series Preferred Stock of the Company designated for such purpose containing terms substantially similar to the terms of the Series A
Junior Participating Preferred Shares. 
  

 3 

 (k) “Preferred Share Fraction” shall mean one twenty-thousandths of a Preferred
Share. 
 (l) “Section 11(a)(ii) Event” shall mean any event described in Section 11(a)(ii) (A), (B) or
(C) hereof. 
 (m) “Section 13 Event” shall mean any event described in clauses (x), (y) or (z) of
Section 13(a) hereof. 
 (n) “Stock Acquisition Date” shall mean the first date of public announcement (which,
for purposes of this definition, shall include, without limitation, a report filed pursuant to Section 13(d) under the Exchange Act) by the Company or an Acquiring Person that an Acquiring Person has become such. 
 (o) “Subsidiary” shall have the meaning ascribed to such term in Rule 12b-2 of the General Rules and Regulations under the
Exchange Act. 
 (p) “Trading Day” shall have the meaning set forth in Section 11(d)(i) hereof. 
 (q) “Triggering Event” shall mean any Section 11(a)(ii) Event or any Section 13 Event. 
 Unless otherwise specified, where reference is made in this Agreement to sections of, and the General Rules and Regulations under, the Exchange Act, such
reference shall mean such sections and rules as amended from time to time and any successor provisions thereto. 
 Section 2. Appointment
of Rights Agent. 
 The Company hereby appoints the Rights Agent to act as agent for the Company in accordance with the terms and
conditions hereof, and the Rights Agent hereby accepts such appointment. The Company may from time to time appoint such Co-Rights Agents as it may deem necessary or desirable. 
 Section 3. Issue of Rights Certificates. 
 (a) Until the earlier of (i) the Close of Business on the tenth Business Day after a Stock Acquisition Date involving an Acquiring Person that has become such in a transaction as to which the Board has not made
the determination referred to in Section 11(a)(ii)(B) hereof, or (ii) within ten (10) Business Days (or such later date as may be determined by action of the Board prior to such time any person becomes an Acquiring Person) after the
date that a tender or exchange offer by any Person (other than Alfred P. West, Jr., the Company, any Subsidiary of the Company, any employee benefit plan of the Company or of any Subsidiary of the Company, or any Person or entity organized,
appointed or established by the Company for or pursuant to the terms of any such plan) is first published or sent or given within the meaning of Rule 14d-2(a) of the General Rules and Regulations under, the Exchange Act, if 

  

 4 

 
upon consummation thereof, such Person would be the Beneficial Owner of 20% or more of the Common Shares then outstanding (the earlier of (i) and
(ii) being herein referred to as the “Distribution Date”), (x) beneficial interests in the Rights will be evidenced (subject to the provisions of paragraph (b) of this Section 3) by the certificates for the Common
Shares registered in the names of the holders of the Common Shares (which certificates for Common Shares shall be deemed also to be certificates for beneficial interests in the Rights) and not by separate certificates, and (y) the Rights and
beneficial interests therein will be transferable only in connection with the transfer of the underlying Common Shares (including a transfer to the Company). The Company must promptly notify the Rights Agent of such Distribution Date and request
that its transfer agent provide the Rights Agent with a list of the record holders of the Company’s Common Shares as of the Close of Business on the Distribution Date. As soon as practicable after the Rights Agent receives such notice and list,
the Rights Agent will send by first-class, postage prepaid mail, to each record holder of the Common Shares as of the Close of Business on the Distribution Date, at the address of such holder shown on the records of the Company, one or more rights
certificates, in substantially the form of Exhibit B hereto (the “Rights Certificates”), evidencing one Right for each Common Share so held, subject to adjustment as provided herein. In the event that an adjustment in the number of Rights
per Common Share has been made pursuant to Section 11(p) hereof, at the time of distribution of the Rights Certificates, the Company shall make the necessary and appropriate rounding adjustments (in accordance with Section 14(a) hereof) so
that Rights Certificates representing only whole numbers of Rights are distributed and cash is paid in lieu of any fractional Rights. As of and after the Distribution Date, the Rights will be evidenced solely by such Rights Certificates. 

(b) As promptly as practicable following the Record Date, the Company will send a copy of a Summary of Rights, in substantially the
Form of Exhibit C hereto (the “Summary of Rights”), by first-class, postage prepaid mail, to each holder of the Common Shares as of the Close of Business on the Record Date, at the address of such holder shown on the records of the
Company. 
 With respect to certificates for the Common Shares outstanding as of the Record Date, until the Distribution Date, the registered
holders of the Common Shares shall also be the registered holders of the beneficial interests in the associated Rights. Until the earlier of the Distribution Date or the Expiration Date (as such term is defined in Section 7 hereof), the
transfer of any certificates representing Common Shares in respect of which Rights have been issued shall also constitute the transfer of the Rights associated with such Common Shares. Certificates issued after the Record Date upon the transfer of
Common Shares outstanding on the Record Date shall bear the legend set forth in subsection (c). 
 (c) Except as provided in
Section 22 hereof, Rights shall be issued in respect of all Common Shares that are issued (whether originally issued or delivered from the Company’s treasury) after the Record Date but prior to the earlier of the Distribution Date or the
Expiration Date. Certificates representing such Common Shares shall also be deemed to be certificates for beneficial interests in the associated Rights, and shall bear the following legend: 
 “This certificate also evidences a beneficial interest in and entitles the holder hereof to certain Rights as set forth in the Rights
Agreement between SEI Investments Company (the “Company”) and American Stock Transfer & Trust Company, LLC (the “Rights Agent”) dated 

  

 5 

 
as of January 6, 2009 (the “Rights Agreement”), and as the same may be amended from time to time, the terms of which are hereby incorporated
herein by reference and a copy of which is on file at the principal offices of the Company. Under certain circumstances, as set forth in the Rights Agreement, such Rights will, be evidenced by separate certificates and beneficial interests therein
will no longer be evidenced by this certificate. The Company will mail to the holder of this certificate a copy of the Rights Agreement, as in effect on the date of mailing, without charge promptly after receipt of a written request therefor. Under
certain circumstances set forth in the Rights Agreement, Rights issued to, or held by any Person who is, was or becomes an Acquiring Person or any Affiliate or Associate thereof (as such terms are defined in the Rights Agreement), whether currently
held by or on behalf of such Person or by any subsequent holder, may become null and void.” 
 With respect to such
certificates containing the foregoing legend, until the earlier of (i) the Distribution Date or (ii) the Expiration Date, beneficial interests in the Rights associated with the Common Shares represented by such certificates shall be
evidenced by such certificates alone and registered holders of Common Shares shall also be the registered holders of beneficial interests in the associated Rights, and the transfer of any of such certificates shall also constitute the transfer of
beneficial interests in the Rights associated with the Common Shares represented by such certificates. 
 Section 4. Form of Rights
Certificates. 
 (a) The Rights Certificates (and the forms of election to purchase and of assignment to be printed on the
reverse thereof) shall each be substantially in the form set forth in Exhibit B hereto and may have such marks of identification or designation and such legends, summaries or endorsements printed thereon as the Company may deem appropriate (which do
not affect the duties or responsibilities of the Rights Agent) and as are not inconsistent with the provisions of this Agreement, or as may be required to comply with any applicable law or with any rule or regulation made pursuant thereto or with
any rule or regulation of any stock exchange, including, without limitation, the Nasdaq Stock Market, on which the Rights may from time to time be listed, or to conform to usage. Subject to the provisions of Section 11 and Section 22
hereof, the Rights Certificates, whenever distributed, shall entitle the holders thereof to purchase such number of Preferred Share Fractions as shall be set forth therein at the price set forth therein (such exercise price per Preferred Share
Fraction, the “Purchase Price”), but the amount and type of securities purchasable upon the exercise of each Right and the Purchase Price thereof shall be subject to adjustment as provided herein. 
 (b) Any Rights Certificate issued pursuant to Section 3(a) or Section 22 hereof that represents Rights that the Company knows
are beneficially owned by: (i) an Acquiring Person or any Associate or Affiliate of an Acquiring Person, (ii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee after the Acquiring Person
becomes such, or (iii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee prior to or concurrently with the Acquiring Person becoming such and receives such Rights pursuant to either (A) a
transfer (whether or not for consideration from the Acquiring Person to holders of equity interests in such Acquiring Person or to any Person with whom such Acquiring Person has any continuing oral or written plan, agreement, arrangement or
understanding regarding the transferred Rights or (B) a transfer 

  

 6 

 
that the Board has determined is part of an oral or written plan, agreement, arrangement or understanding that has as a primary purpose or effect avoidance
of Section 7(e) hereof, and provided that the Company shall have notified the Rights Agent that this Section 4(b) applies, any Rights Certificate issued pursuant to Section 6 or Section 11 hereof upon transfer, exchange,
replacement or adjustment of any other Rights Certificate referred to in this sentence, shall contain (to the extent feasible) the following legend: 
 “The Rights represented by this Rights Certificate are or were beneficially owned by a Person who was or became an Acquiring Person or an Affiliate or Associate of an Acquiring Person (as such terms are defined
in the Rights Agreement). Accordingly, this Rights Certificate and the Rights represented hereby may become null and void in the circumstances specified in Section 7(e) of such Agreement.” 
 Section 5. Countersignature and Registration. 
 (a) The Rights Certificates shall be executed on behalf of the Company by its Chairman of the Board, its President or any Vice President, either manually or by facsimile signature, and shall have affixed thereto the
Company’s seal or a facsimile thereof which shall be attested by the Secretary or an Assistant Secretary of the Company, either manually or by facsimile signature. The Rights Certificates shall be manually countersigned by the Rights Agent and
shall not be valid for any purpose unless so countersigned. In case any officer of the Company who shall have signed any of the Rights Certificates shall cease to be such officer of the Company before countersignature by the Rights Agent and
issuance and delivery by the Company, such Rights Certificates, nevertheless, may be countersigned by the Rights Agent and issued and delivered by the Company with the same force and effect as though the Person who signed such Rights Certificates
had not ceased to be such officer of the Company, and any Rights Certificates may be signed on behalf of the Company by any Person who, at the actual date of the execution of such Rights Certificate, shall be a proper officer of the Company to sign
such Rights Certificate, although at the date of the execution of this Agreement any such Person was not such an officer. 
 (b) Following the Distribution Date and upon receipt by the Rights Agent of the notice and list of recordholders of the Rights referred to in Section 3(a), the Rights Agent will keep or cause to be kept, at its office or offices
designated pursuant to Section 25 hereof, books for registration and transfer of the Rights Certificates issued hereunder. Such books shall show the names and addresses of the respective holders of the Rights Certificates, the number of Rights
evidenced on its face by each of the Rights Certificates, the Certificate number and the date of each of the Rights Certificates. 
 Section 6. Transfer, Split Up, Combination and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights Certificates. 
 (a) Subject to the provisions of Section 4(b), Section 7(e) and Section 14 hereof, at any time after the Close of Business on the Distribution Date, and at or prior to the Close of Business on the
Expiration Date, any Rights Certificate or Certificates may be transferred, split up, combined or exchanged for another Rights Certificate or Certificates, entitling the registered holder to purchase a like number of Preferred Share Fractions (or,

  

 7 

 
following a Triggering Event, Common Shares or other securities, cash or other assets, as the case may be, as the Rights Certificate or Certificates
surrendered then entitled such holder or former holder in the case of a transfer) to purchase. Any registered holder desiring to transfer, split up, combine or exchange any Rights Certificate or Certificates shall make such request in writing
delivered to the Rights Agent, and shall surrender the Rights Certificate or Certificates to be transferred, split up, combined or exchanged at the office of the Rights Agent designated for such purpose. Neither the Rights Agent nor the Company
shall be obligated to take any action whatsoever with respect to the transfer of any such surrendered Rights Certificate or Certificates until the registered holder shall have completed and signed the certificate contained in the form of assignment
on the reverse side of such Rights Certificate and shall have provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the Company or the Rights Agent shall
reasonably request. Thereupon the Rights Agent shall, subject to Section 4(b), Section 7(e) and Section 14 hereof, countersign and deliver to the Person entitled thereto a Rights Certificate or Rights Certificates, as the case may be,
as so requested. The Rights Agent shall not be obligated to process the transaction until it has received evidence that all taxes and charges arising from the transaction have been paid. The Company may require payment of a sum sufficient to cover
any tax or governmental charge that may be imposed in connection with any transfer, split up, combination or exchange of Rights Certificates. 
 (b) Upon receipt by the Company and the Rights Agent of evidence reasonably satisfactory to them of the loss, theft, destruction or mutilation of a Rights Certificate, and, in case of loss, theft or destruction, of
indemnity or security satisfactory to them, and reimbursement to the Company and the Rights Agent of all reasonable expenses incidental thereto, and upon surrender to the Rights Agent and cancellation of the Rights Certificate if mutilated, the
Company will execute and deliver a new Rights Certificate of like tenor to the Rights Agent for countersignature and delivery to the registered owner in lieu of the Rights Certificate so lost, stolen, destroyed or mutilated. 
 Section 7. Exercise of Rights; Purchase Price; Expiration Date of Rights. 
 (a) Subject to subsection (e), the registered holder of any Rights Certificate may exercise the Rights evidenced thereby (except as
otherwise provided herein including, without limitation, the restrictions on exercisability set forth in Section 9(c), Section 11(a)(iii) and Section 23(a) hereof) in whole or in part at any time after the Distribution Date upon
surrender of the Rights Certificate, with the form of election to purchase and the certificate on the reverse side thereof duly executed, to the Rights Agent at the office of the Rights Agent designated for such purpose, together with payment of the
aggregate Purchase Price (except as provided in Section 11(q) hereof) with respect to the total number of Preferred Share Fractions (or Common Shares, other securities, cash or other assets, as the case may be) as to which such surrendered
Rights are then exercisable (except as provided in Section 11(q) hereof), at or prior to the earliest of (i) the Close of Business on January 6, 2019 (the “Final Expiration Date”), (ii) the consummation of a transaction
contemplated by Section 13(d) hereof, or (iii) the time at which the Rights are redeemed or terminated as provided in Section 23 hereof (the earliest of (i), (ii) and (iii) being herein referred to as the “Expiration
Date”). 
  

 8 

 (b) The Purchase Price for each Preferred Share Fraction pursuant to the exercise of a
Right shall initially be $150.00, and shall be subject to adjustment from time to time as provided in Sections 11 and 13(a) hereof and shall be payable in accordance with subsection (c). 
 (c) Upon receipt of a Rights Certificate representing exercisable Rights, with the form of election to purchase and the certificate duly
executed, accompanied by payment, with respect to each Right so exercised, of the Purchase Price per Preferred Share Fraction (or Common Shares, other securities, cash or other assets, as the case may be) to be purchased as set forth below and an
amount equal to any applicable tax or governmental charge, the Rights Agent shall, subject to Section 20(k) and Section 14(b) hereof, thereupon promptly (i) (A) requisition from any transfer agent of the Preferred Shares (or make
available, if the Rights Agent is the transfer agent for the Common Shares) certificates for the total number of Preferred Shares to be purchased and the Company hereby irrevocably authorizes its transfer agent to comply with all such requests, or
(B) if the Company shall have elected to deposit some or all of the total number of Preferred Shares issuable upon exercise of the Rights hereunder with a depositary agent, requisition from the depositary agent depositary receipts representing
such number of Preferred Share Fractions as are to be purchased (in which case certificates for the Preferred Shares represented by such receipts shall be deposited by the transfer agent with the depositary agent) and the Company will direct the
depositary agent to comply with such request, (ii) requisition from the Company the amount of cash, if any, to be paid in lieu of fractional shares in accordance with Section 14 hereof, (iii) after receipt of such certificates or
depositary receipts, cause the same to be delivered to or upon the order of the registered holder of such Rights Certificate, registered in such name or names as may be designated by such holder, and (iv) after receipt thereof, deliver such
cash, if any, to or upon the order of the registered holder of such Rights Certificate. The payment of the Purchase Price (as such amount may be reduced pursuant to Section 11(a)(iii) hereof) may be made, at the election of the holder of the
Rights Certificate, (x) in cash or by certified bank check or money order payable to the order of the Company, or (y) by delivery of Rights if and to the extent authorized by Section 11(q) hereof. In the event that the Company is
obligated to issue other securities of the Company (including Common Shares) pay cash and/or distribute other property pursuant to Section 11(a) hereof, the Company will make all arrangements necessary so that such other securities, cash and/or
other property are available for distribution by the Rights Agent, if and when necessary to comply with this Agreement. 
 (d)
In case the registered holder of any Rights Certificate shall exercise less than all the Rights evidenced thereby, a new Rights Certificate evidencing Rights equivalent to the Rights remaining unexercised shall be issued by the Rights Agent and
delivered to, or upon the order of, the registered holder of such Rights Certificate, registered in such name or names as may be designated by such holder, subject to the provisions of Section 6 and Section 14 hereof. 
 (e) Notwithstanding anything in this Agreement to the contrary, from and after the first occurrence of a Section 11(a)(ii) Event, any
Rights beneficially owned by (i) an Acquiring Person or an Associate or Affiliate of an Acquiring Person, (ii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee after the Acquiring Person
becomes such, or (iii) a transferee of an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee prior to or concurrently with the Acquiring Person becoming such and receives such Rights pursuant to either (A) a
transfer (whether or not 

  

 9 

 
for consideration) from the Acquiring Person to holders of equity interests in such Acquiring Person or to any Person with whom the Acquiring Person has any
continuing oral or written plan, agreement, arrangement or understanding regarding the transferred Rights or (B) a transfer which the Board has determined is part of an oral or written plan, agreement, arrangement or understanding which has as
a primary purpose or effect the avoidance of this Section 7(e), shall become null and void without any further action and no holder of such Rights shall have any rights whatsoever with respect to such Rights, whether under any provision of this
Agreement or otherwise; provided, however, that the Rights held by an Acquiring Person, an Affiliate or Associate of an Acquiring Person or the transferees of such persons referred to above shall not be voided unless the Acquiring Person in question
or an Affiliate or Associate of such Acquiring Person shall be involved in the transaction giving rise to the Section 11(a)(ii) Event. The Company shall notify the Rights Agent when this Section 7(e) applies and shall use all reasonable
efforts to insure that the provisions of this Section 7(e) and Section 4(b) hereof are complied with, but neither the Company nor the Rights Agent shall have any liability to any holder of Rights Certificates or other Person as a result of
the Company’s failure to make any determinations with respect to an Acquiring Person or its Affiliates, Associates or transferees hereunder. 
 (f) Notwithstanding anything in this Agreement to the contrary, neither the Rights Agent nor the Company shall be obligated to undertake any action with respect to a registered holder upon the occurrence of any
purported exercise as set forth in this Section 7 unless such registered holder shall have (i) properly completed and signed the certificate contained in the form of election to purchase set forth on the reverse side of the Rights
Certificate surrendered for such exercise, and (ii) provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates thereof as the Company or the Rights Agent shall reasonably
request. 
 Section 8. Cancellation and Destruction of Rights Certificates. 
 All Rights Certificates surrendered for the purpose of exercise, transfer, split up, combination or exchange shall, if surrendered to the Company or any
of its agents, be delivered to the Rights Agent for cancellation or in canceled form, or, if surrendered to the Rights Agent, shall be canceled by it, and no Rights Certificates shall be issued in lieu thereof except as expressly permitted by any of
the provisions of this Agreement. The Company shall deliver to the Rights Agent for cancellation and retirement, and the Rights Agent shall so cancel and retire, any other Rights Certificate purchased or acquired by the Company otherwise than upon
the exercise thereof. The Rights Agent shall deliver all canceled Rights Certificates to the Company, or shall, at the written request of the Company, destroy such canceled Rights Certificates, and in such case shall deliver a certificate of
destruction thereof to the Company. 
 Section 9. Reservation and Availability of Capital Stock; Registration of Securities.

 (a) The Company covenants and agrees that it will cause to be reserved and kept available for issuance upon the
exercise of outstanding Rights as many of its authorized and unissued Preferred Shares (and, following the occurrence of a Triggering Event, out of its authorized and unissued or treasury Common Shares and/or other securities) or out of its
authorized and issued shares held in its treasury, which together, shall at all times after the Distribution Date be sufficient to permit the exercise in full of all outstanding Rights. 
  

 10 

 (b) So long as the Preferred Shares (and, following the occurrence of a Triggering Event,
Common Shares or other securities) issuable and deliverable upon the exercise of the Rights may be listed on any stock exchange, including, without limitation, the Nasdaq Stock Market, the Company shall use its best efforts to cause, from and after
such time as the Rights become exercisable, all shares and other securities reserved for such issuance to be listed on such exchange or market upon official notice of issuance upon such exercise. 
 (c) The Company shall use its best efforts to (i) file, as soon as practicable following the earliest date after the first occurrence
of a Section 11(a)(ii) Event on which the consideration to be delivered by the Company upon exercise of the Rights has been determined in accordance with Section 11(a)(iii) hereof, or as soon as is required by law following the
Distribution Date, as the case may be, a registration statement or statements under the Securities Act of 1933, as amended (the “Act”), with respect to the securities purchasable upon exercise of the Rights on an appropriate form or forms,
(ii) cause such registration statement or statements to become effective as soon as practicable after such filing, and (iii) cause such registration statement or statements to remain effective (with a prospectus at all times meeting the
requirements of the Act) until the earlier of (A) the date as of which the Rights are no longer exercisable for such securities, and (B) the Expiration Date. The Company will also take such action as may be appropriate under, or to ensure
compliance with, the securities or “blue sky” laws of the various states in connection with the exercisability of the Rights. The Company may temporarily suspend, for a period of time not to exceed ninety (90) days after the date set
forth in clause (i) of the first sentence of this subsection (c), the exercisability of the Rights in order to prepare and file such registration statement and permit it to become effective. Upon any such suspension, the Company shall issue a
public announcement stating that the exercisability of the Rights has been temporarily suspended, as well as a public announcement at such time as the suspension is no longer in effect. In addition, if the Company shall determine that a registration
statement is required following the Distribution Date, the Company may, by issuing a public announcement, temporarily suspend the exercisability of the Rights until such time as a registration statement has been declared effective. The Company shall
notify the Rights Agent whenever it makes a public announcement pursuant to this subsection (c) and give the Rights Agent a copy of the announcement. 
 Notwithstanding any provision of this Agreement to the contrary, the Rights shall not be exercisable in any jurisdiction unless the requisite qualification in such jurisdiction shall have been obtained, nor shall the
Rights be exercisable if the exercise thereof shall not be permitted under applicable law or a registration statement shall not have been declared effective. 
 (d) The Company covenants and agrees that it will take all such action as may be necessary to ensure that all Preferred Shares (and,
following a Triggering Event, Common Shares or other securities) delivered upon exercise of Rights shall, at the time of delivery of the certificates for such shares or other securities (subject to payment of the Purchase Price), be duly and validly
authorized and issued and, with respect to Preferred Shares, Common Shares or other shares of capital stock, fully paid and nonassessable. 
  

 11 

 (e) The Company further covenants and agrees that it will pay when due and payable any
and all taxes and governmental charges that may be payable in respect of the issuance or delivery of the Rights Certificates and of any certificates for a number of Preferred Share Fractions (or Common Shares or other securities, as the case may be)
upon the exercise of Rights. The Company shall not, however, be required to pay any transfer tax that may be payable in respect of any transfer or delivery of Rights Certificates to a Person other than, or the issuance or delivery of a number of
Preferred Share Fractions (or Common Shares or other securities, as the case may be) in respect of a name other than that of the registered holder of the Rights Certificates evidencing Rights surrendered for exercise or to issue or deliver any
certificates for a number of Preferred Share Fractions (or Common Shares or other securities, as the case may be) in a name other than that of the registered holder upon the exercise of any Rights until such tax shall have been paid (any such tax
being payable by the holder of such Rights Certificate at the time of surrender or until it has been established to the Company’s satisfaction that no such tax is due). 
 Section 10. Capital Stock Record Date. 
 Each Person in whose name any certificate for a number of Preferred Share Fractions (or Common Shares or other securities, as the case may be) is issued upon the exercise of Rights shall for all purposes be deemed to have become the holder
of record of such Preferred Share Fractions (or Common Shares or other securities, as the case may be) represented thereby on, and such certificate shall be dated, the date upon which the Rights Certificate evidencing such Rights was duly
surrendered and payment of the Purchase Price (and all applicable taxes and governmental charges) was made; provided, however, that if the date of such surrender and payment is a date upon which the applicable transfer books of the Company are
closed, such Person shall be deemed to have become the record holder of such shares (fractional or otherwise) on, and such certificate shall be dated, the next succeeding Business Day on which the applicable transfer books of the Company are open.
Prior to the exercise of the Rights evidenced thereby, the holder of a Rights Certificate shall not be entitled to any rights of a shareholder of the Company with respect to shares for which the Rights shall be exercisable, including, without
limitation, the right to vote, to receive dividends or other distributions or to exercise any preemptive rights, and shall not be entitled to receive any notice of any proceedings of the Company, except as provided herein. 
 Section 11. Adjustment of Purchase Price, Number and Kind of Shares or Number of Rights. 
 The Purchase Price, the number and kind of shares and other securities covered by each Right and the number of Rights outstanding are subject to
adjustment from time to time as provided in this Section 11. 
 (a) (i) In the event the Company shall at any time after
the date of this Agreement (A) declare a dividend on any security of the Company payable in Preferred Shares, (B) subdivide the outstanding Preferred Shares, (C) combine the outstanding Preferred Shares into a smaller number of
shares, or (D) issue any shares of its capital stock in a reclassification of the Preferred Shares (including any such reclassification in connection with a consolidation or merger in which the Company is the continuing or surviving
corporation), except as otherwise 

  

 12 

 
provided in this Section 11(a) and Section 7(e) hereof, the Purchase Price in effect at the time of the record date for such dividend or of the
effective date of such subdivision, combination or reclassification, and the number and kind of Preferred Shares or capital stock, as the case may be, issuable on such date, shall be proportionately, adjusted so that the holder of any Right
exercised after such time shall be entitled to receive, upon payment of the adjusted Purchase Price, the aggregate number and kind of Preferred Shares or capital stock, as the case may be, that, if such Right had been exercised immediately prior to
such date and at a time when the Preferred Share transfer books were open, such holder would have owned upon such exercise and been entitled to receive by virtue of such dividend, subdivision, combination or reclassification. If an event occurs
which would require an adjustment under both this Section 11(a)(i) and Section 11(a)(ii) hereof, the adjustment provided for in this Section 11(a)(i) shall be in addition to, and shall be made prior to, any adjustment required
pursuant to Section 11(a)(ii) hereof. 
 (ii) In the event: 
 (A) any Acquiring Person or any Associate or Affiliate of any Acquiring Person, at any time after the Stock Acquisition Date, directly or
indirectly, (1) shall merge into the Company or otherwise combine with the Company and the Company shall be the continuing or surviving corporation of such merger or combination and the Common Shares of the Company or other equity securities of
the Company shall remain outstanding, (2) shall, in one transaction or a series of transactions, transfer any assets to the Company or to any of its Subsidiaries in exchange (in whole or in part) for Common Shares, for shares of other equity
securities of the Company, or for securities exercisable for or convertible into shares of equity securities of the Company (Common Shares or otherwise) or otherwise obtain from the Company, with or without consideration, any additional shares of
such equity securities or securities exercisable for or convertible into shares of such equity securities (other than pursuant to a pro rata distribution to all holders of Common Shares), (3) shall sell, purchase, lease, exchange, mortgage,
pledge, transfer or otherwise acquire or dispose of assets in one transaction or a series of transactions, to, from or with (as the case may be) the Company or any of its Subsidiaries, on terms and conditions less favorable to the Company than the
Company would be able to obtain in arm’s-length negotiation with an unaffiliated third party, other than pursuant to a Section 13 Event, (4) shall sell, purchase, lease, exchange, mortgage, pledge, transfer or otherwise dispose of
assets having an aggregate fair market value of more than $5,000,000 in one transaction or a series of transactions, to, from or with (as the case may be) the Company or any of the Company’s Subsidiaries (other than incidental to the lines of
business, if any, engaged in as of the date hereof between the Company and such Acquiring Person or Associate or Affiliate), other than pursuant to a Section 13 Event, (5) shall receive any compensation from the Company or any of the
Company’s Subsidiaries other than compensation for full-time employment as a regular employee at rates in accordance with the Company’s (or its Subsidiaries’) past practices, or (6) shall receive the benefit, directly or
indirectly (except proportionately as a shareholder and except if resulting from a requirement of law or governmental regulation), of any loans, advances, guarantees, pledges or other financial assistance or any tax credits or other tax advantages
provided by the Company or any of its Subsidiaries; or 
  

 13 

 (B) any Person (other than (i) Alfred P. West, Jr., (ii) any immediate family
member of Alfred P. West Jr. who exceeds the 20% Company ownership threshold solely by reason of a transfer of Common Shares from Alfred P. West Jr. or his spouse to such immediate family member and who does not subsequently acquire at least 1% of
the Common Shares outstanding from a source other than Alfred P. West Jr. or his spouse, (iii) the Company, (iv) any Subsidiary of the Company, (v) any employee benefit plan of the Company or of any Subsidiary of the Company, or
(vi) any Person or entity organized, appointed or established by the Company for or pursuant to the terms of any such plan), alone or together with its Affiliates and Associates, shall, at any time after the Rights Dividend Declaration Date,
become the Beneficial Owner of 20% or more of the Common Shares then outstanding, unless the event causing the 20% threshold to be crossed is a Section 13 Event, or is an acquisition of Common Shares pursuant to a tender offer or an exchange
offer for all outstanding Common Shares at a price and on terms determined by at least a majority of the Board, after receiving advice from one or more nationally recognized investment banking firms, to be in the best interests of the Company and
its shareholders (a “Qualifying Offer”), after taking into consideration all factors that the Board deems relevant, including, without limitation, the long-term prospects and value of the Company and the prices and terms that the Board
believes in good faith, could reasonably be achieved if the Company or its assets were sold on an orderly basis designed to realize maximum value, or 
 (C) during such time as there is an Acquiring Person, there shall be any reclassification of securities (including any reverse stock split), or recapitalization of the Company, or any merger or consolidation of the
Company with any of its Subsidiaries or any other transaction or series of transactions involving the Company or any of its Subsidiaries, other than a Section 13 Event or series of such Section 13 Events (whether or not with or into or
otherwise involving an Acquiring Person) that has the effect, directly or indirectly, of increasing by more than 1% the proportionate share of the outstanding shares of any class of equity securities of the Company or any of its Subsidiaries that is
directly or indirectly beneficially owned by any Acquiring Person or any Associate or Affiliate of any Acquiring Person, then, promptly following the first occurrence of a Section 11(a)(ii) Event, proper provision shall be made so that each
holder of a Right (except as provided below and in section 7(e) hereof) shall thereafter have the right to receive, upon exercise thereof at the then current Purchase Price in accordance with the terms of this Agreement, in lieu of a number of
Preferred Share Fractions, such number of Common Shares of the Company as shall equal the result obtained by (x) multiplying the then current Purchase Price by the then number of Preferred Share Fractions for which a Right was exercisable
immediately prior to the first occurrence of a Section 11(a)(ii) Event, and (y) dividing that product (which, following such first occurrence, shall thereafter be referred to as the “Purchase Price” for each Right and for all
purposes of this Agreement) by 50% of the current market price (as defined in and determined pursuant to Section 11(d) hereof) per Common Share on the date of such first occurrence (such number, of shares, the “Adjustment Shares”).

 (iii) In the event that the number of Common Shares that are authorized by the Company’s Articles of Incorporation but
not outstanding or reserved for issuance for purposes other than upon exercise of the Rights are not sufficient to permit the exercise in full of the Rights in accordance with the foregoing subparagraph (ii) of this Section 11(a), the
Company shall: (A) determine the excess of the value of the Adjustment Shares issuable upon the exercise 

  

 14 

 
of a Right (the “Current Value”) over the Purchase Price (such excess, the “Spread”), and (B) with respect to each Right, make
adequate provision to substitute for the Adjustment Shares, upon payment of the applicable Purchase Price, (1) cash, (2) a reduction in the Purchase Price, (3) Common Shares of the same or a different class or other equity securities
of the Company (including, without limitation, preferred shares or units of preferred shares that the Board has deemed (based, among other things, on the dividend and liquidation rights of such preferred shares) to have substantially the same
economic value as Common Shares (such preferred shares, hereinafter referred to as “common share equivalents”)), (4) debt securities of the Company, (5) other assets, or (6) any combination of the foregoing, having an
aggregate value equal to the Current Value, where such aggregate value has been determined by action of a majority of the Board after considering the advice of a nationally recognized investment banking firm selected by the Board; provided, however,
if the Company shall not have made adequate provision to deliver value pursuant to clause (B) above within thirty (30) days following the later of (x) the first occurrence of a Section 11 (a) (ii) Event and (y) the
date on which the Company’s right of redemption pursuant to Section 23(a) expires (the later of (x) and (y) being referred to herein as the “Section 11(a)(ii) Trigger Date”), then the Company shall be obligated to
deliver, upon the surrender for exercise of a Right and without requiring payment of the Purchase Price, Common Shares (to the extent available) and then, if necessary, cash, which shares and/or cash have an aggregate value equal to the Spread. If
the Board shall determine in good faith that it is likely that sufficient additional Common Shares could be authorized for issuance upon exercise in full of the Rights, the thirty (30) day period set forth above may be extended to the extent
necessary, but not more than ninety (90) days after the Section 11(a)(ii) Trigger Date, in order that the Company may seek shareholder approval for the authorization of such additional shares (such period, as it may be extended, the
“Substitution Period”). To the extent that the Company determines that some action need be taken pursuant to the first and/or second sentences of this Section 11(a)(iii), the Company shall provide, subject to Section 7(e) hereof,
that such action shall apply uniformly to all outstanding Rights, and may suspend the exercisability of the Rights until the expiration of the Substitution Period in order to seek any authorization of additional shares and/or to decide the
appropriate form of distribution to be made pursuant to such first sentence and to determine the value thereof. The Company shall make a public announcement when the exercisability of the Rights has been temporarily suspended, and again when such
suspension is no longer in effect. The Company shall notify the Rights Agent of the suspension of the exercisability of the Rights, and provide the Rights Agent with a copy of such public announcement. For purposes of this Section 11(a)(iii),
the value of the Common Shares shall be the current market price (as determined pursuant to Section 11(d) hereof) per Common Share on the Section 11(a)(ii) Trigger Date and the value of any “common share equivalent” shall be
deemed to have the same value as the Common Shares on such date. 
 (b) In case the Company shall fix a record date for the
issuance of rights, options or warrants to holders of any security of the Company entitling them to subscribe for or purchase (for a period expiring within forty-five (45) calendar days after such record date) Preferred Shares (or shares having
the same rights, privileges and preferences as the Preferred Shares (“equivalent preferred shares”)) or securities convertible into Preferred Shares or equivalent preferred shares at a price per Preferred Share or per equivalent preferred
share (or having a conversion price per share, if a security convertible into Preferred Shares or equivalent preferred shares) less than the current market price (as determined pursuant to Section 11(d) hereof) per Preferred Share on such
record date, the Purchase Price to be in effect after such 

  

 15 

 
record date shall be determined by multiplying the Purchase Price in effect immediately prior to such record date by a fraction, the numerator of which shall
be the number of Preferred Shares outstanding on such record date, plus the number of Preferred Shares that the aggregate offering price of the total number of Preferred Shares and/or equivalent preferred shares so to be offered (and/or the
aggregate initial conversion price of the convertible securities so to be offered) would purchase at such current market price, and the denominator of which shall be the number of Preferred Shares outstanding on such record date, plus the number of
additional Preferred Shares and/or equivalent preferred shares to be offered for subscription or purchase (or into which the convertible securities so to be offered are initially convertible). In case such subscription price may be paid by delivery
of consideration part or all of which may be in a form other than cash, the value of such consideration shall be as determined in good faith by the Board, whose determination shall be described in a statement filed with the Rights Agent and shall be
binding on the Company, the Rights Agent and the holders of the Rights. Preferred Shares owned by or held for the account of the Company shall not be deemed outstanding for the purpose of any such computation. Such adjustment shall be made
successively whenever such a record date is fixed, and in the event that such rights or warrants are not so issued, the Purchase Price shall be adjusted to be the Purchase Price that would then be in effect if such record date had not been fixed.

 (c) In case the Company shall fix a record date for a distribution to all holders of Preferred Shares (including any such
distribution made in connection with a consolidation or merger in which the Company is the continuing corporation) of evidences of indebtedness, cash (other than a regular quarterly dividend out of the earnings or retained earnings of the Company),
assets (other than a regular quarterly dividend referred to above or dividend payable in Preferred Shares, but including any dividend payable in stock other than Preferred Shares) or subscription rights or warrants (excluding those referred to in
Section 11(b) hereof), the Purchase Price to be in effect after such record date shall be determined by multiplying the Purchase Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the current
market price (as determined pursuant to Section 11(d) hereof) per Preferred Share on such record date, less the then fair market value (as determined in good faith by the Board, whose determination shall be described in a statement filed with
the Rights Agent and shall be conclusive for all purposes) of the portion of the cash, assets or evidences of indebtedness so to be distributed or of such subscription rights or warrants applicable to a Preferred Share and the denominator of which
shall be such current market price (as determined pursuant to Section 11(d) hereof) per Preferred Share. Such adjustments shall be made successively whenever such a record date is fixed, and in the event that such distribution is not so made,
the Purchase Price shall be adjusted to be the Purchase Price which would have been in effect if such record date had not been fixed. 
 (d) (i) For the purpose of any computation hereunder, other than computations made pursuant to Section 11(a)(iii) hereof, the “current market price” per Common Share on any date shall be deemed to be
the average of the daily closing prices per Common Share for the thirty (30) consecutive Trading Days (as such term is hereinafter defined) immediately prior to and not including such date, and for purposes of computations made pursuant to
Section 11(a)(iii) hereof, the “current market price” per Common Share on any date shall be deemed to be the average of the daily closing prices per Common Share for the ten (10) consecutive Trading Days immediately following and
not including such date; provided, 

  

 16 

 
however, that in the event that the current market price per Common Share is determined during a period following the announcement by the issuer of such
Common Share of (A) a dividend or distribution on such Common Share payable in Common Shares or securities convertible into Common Shares (other than the Rights), or (B) any subdivision, combination or reclassification of such Common
Shares, and prior to the expiration of the requisite thirty (30) Trading Day or ten (10) Trading Day period, as set forth above, after the ex- dividend date for such dividend or distribution, or the record date for such subdivision,
combination or reclassification, then, and in each such case, the “current market price” shall be properly adjusted to take into account ex- dividend trading. The closing price for each Trading Day shall be the last sale price, regular
way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported in the principal consolidated transaction reporting system with respect to securities listed or admitted
to trading on the New York Stock Exchange or, if the Common Shares are not listed or admitted to trading on the New York Stock Exchange, as reported in the principal consolidated transaction reporting system with respect to securities listed on the
principal national securities exchange on which the Common Shares are listed or admitted to trading or, if the Common Shares are not listed or admitted to trading on any national securities exchange, the last quoted price or, if not so quoted, the
average of the high bid and low asked prices in the over-the-counter market, on the applicable system then in use, or, if on any such date the Common Shares are not quoted by any such organization, the average of the closing bid and asked prices as
furnished by a professional market maker making a market in the Common Shares selected by the Board. If on any such date no market maker is making a market in the Common Shares, the fair value of such shares on such date as determined in good faith
by the Board shall be used. The term “Trading Day” shall mean a day on which the principal national securities exchange on which the Common Shares are listed or admitted to trading is open for the transaction of business or, if the Common
Shares are not listed or admitted to trading on any national securities exchange, a Business Day. If the Common Shares are not publicly held or not so listed or traded, “current market price” per share shall mean the fair value per share
as determined in good faith by the Board, whose determination shall be described in a statement filed with the Rights Agent and shall be conclusive for all purposes. 
 (ii) For the purpose of any computation hereunder, the “current market price” per Preferred Share shall be determined in the
same manner as set forth above for the Common Shares in clause (i) of this Section 11 (d) (other than the last sentence thereof). If the current market price per Preferred Share cannot be determined in the manner provided above or if
the Preferred Shares are not publicly held or listed or traded in a manner described in clause (i) of this Section 11 (d), the “current market price” per Preferred Share shall be conclusively deemed to be an amount equal to
20,000 (as such number may be appropriately adjusted for such events as stock splits, stock dividends and recapitalizations with respect to the Common Shares occurring after the date of this Agreement) multiplied by the current market price per
Common Share. If neither the Common Shares nor the Preferred Shares are publicly held or so listed or traded, “current market price” per Preferred Share shall mean the fair value per share as determined in good faith by the Board, whose
determination shall be described in a statement filed with the Rights Agent and shall be conclusive for all purposes. For all purposes of this Agreement, the “current market price” of a Preferred Share Fraction shall be equal to the
“current market price” of one Preferred Share divided by 20,000. 
  

 17 

 (e) Anything herein to the contrary notwithstanding, no adjustment in the Purchase Price
shall be required unless such adjustment would require an increase or decrease of at least one percent (1%) in the Purchase Price; provided, however, that any adjustments which by reason of this Section 11(e) are not required to be made
shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Section 11 shall be made to the nearest cent or to the nearest ten-thousandth of a Common Share or one-millionth of a Preferred Share, as
the case may be. Notwithstanding the first sentence of this subsection (e), any adjustment required by this Section 11 shall be made no later than the earlier of (i) three (3) years from the date of the transaction that mandates such
adjustment or (ii) the Expiration Date. 
 (f) If as a result of an adjustment made pursuant to Section 11(a)(ii) or
Section 13(a) hereof, the holder of any Right thereafter exercised shall become entitled to receive any shares of capital stock other than Preferred Shares, thereafter the number of such other shares so receivable upon exercise of any Right and
the Purchase Price thereof shall be subject to adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the provisions with respect to the Preferred Shares contained in Sections 11(a), (b), (c), (e), (g), (h),
(i), (j), (k), (m) and (q), and the provisions of Sections 7, 9, 10, 13 and 14 hereof with respect to the Preferred Shares shall apply on like terms to any such other shares. 
 (g) All Rights originally issued by the Company subsequent to any adjustment made to the Purchase Price hereunder shall evidence the right
to purchase, at the adjusted Purchase Price, the number of Preferred Share Fractions purchasable from time to time hereunder upon exercise of the Rights, all subject to further adjustment as provided herein. 
 (h) Unless the Company shall have exercised its election as provided in Section 11(i), upon each adjustment of the Purchase Price as
a result of the calculations made in subsections (b) and (c), each Right outstanding immediately prior to the making of such adjustment shall thereafter evidence the right to purchase, at the adjusted Purchase Price, that number of Preferred
Share Fractions (calculated to the nearest one-one-millionth of a Preferred Share) obtained by (i) multiplying (x) the number of Preferred Share Fractions covered by a Right immediately prior to this adjustment, by (y) the Purchase
Price in effect immediately prior to such adjustment of the Purchase Price, and (ii) dividing the product so obtained by the Purchase Price in effect immediately after such adjustment of the Purchase Price. 
 (i) The Company may elect on or after the date of any adjustment of the Purchase Price to adjust the number of Rights, in lieu of any
adjustment in the number of Preferred Share Fractions purchasable upon the exercise of a Right. Each of the Rights outstanding after the adjustment in the number of Rights shall be exercisable for the number of Preferred Share Fractions for which a
Right was exercisable immediately prior to such adjustment. Each Right held of record prior to such adjustment of the number of Rights shall become that number of Rights (calculated to the nearest one-one- millionth of a Preferred Share) obtained by
dividing the Purchase Price in effect immediately prior to adjustment of the Purchase Price by the Purchase Price in effect immediately after adjustment of the Purchase Price. The Company shall make a public announcement of its election to adjust
the number of Rights, indicating the record date for the adjustment, and, if known at the time, the amount of the adjustment to be made. The Company shall forward a copy of such public announcement to the Rights Agent. The record date for the
adjustment may be the date on which the Purchase Price is 

  

 18 

 
adjusted or any day thereafter, but, if the Rights Certificates have been issued, shall be at least ten (10) days later than the date of the public
announcement. If Rights Certificates have been issued, upon each adjustment of the number of Rights pursuant to this Section 11(i), the Company shall, as promptly as practicable, cause to be distributed to holders of record of Rights
Certificates on such record date Rights Certificates evidencing, subject to Section 14 hereof, the additional Rights to which such holders shall be entitled as a result of such adjustment, or, at the option of the Company, shall cause to be
distributed to such holders of record in substitution and replacement for the Rights Certificates held by such holders prior to the date of adjustment, and upon surrender thereof, if required by the Company, new Rights Certificates evidencing all
the Rights to which such holders shall be entitled after such adjustment. Rights Certificates so to be distributed shall be issued, executed and countersigned in the manner provided for herein (and may bear, at the option of the Company, the
adjusted Purchase Price) and shall be registered in the names of the holders of record of Rights Certificates on the record date specified, in the public announcement. 
 (j) Irrespective of any adjustment or change in the Purchase Price or the number of Preferred Share Fractions issuable upon the exercise
of the Rights, the Rights Certificates theretofore and thereafter issued may continue to express the Purchase Price per Preferred Share Fraction and the number of Preferred Share Fractions that were expressed in the initial Rights Certificates
issued hereunder. 
 (k) Before taking any action that would cause an adjustment reducing the Purchase Price below the then
stated or par value, if any, of the number of Preferred Share Fractions issuable upon exercise of the Rights, the Company shall take any corporate action that may, in the opinion of its counsel, be necessary in order that the Company may validly and
legally issue such number of fully paid and nonassessable Preferred Share Fractions at such adjusted Purchase Price. 
 (l) In
any case in which this Section 11 shall require that an adjustment in the Purchase Price be made effective as of a record date for a specified event, the Company may elect to defer until the occurrence of such event the issuance to the holder
of any Right exercised after such record date the number of Preferred Share Fractions and other capital stock or securities of the Company, if any, issuable upon such exercise over and above the number of Preferred Share Fractions and other capital
stock or securities of the Company, if any, issuable upon such exercise on the basis of the Purchase Price in effect prior to such adjustment; provided, however, that the Company shall deliver to such holder a due bill or other appropriate
instrument evidencing such holder’s right to receive such additional shares (fractional, or otherwise) or securities upon the occurrence of the event requiring such adjustment, and the Company shall also deliver a copy of such bill or
instrument to the Rights Agent. 
 (m) Anything in this Section 11 to the contrary notwithstanding, the Company shall be
entitled to make such reductions in the Purchase Price, in addition to those adjustments expressly required by this Section 11, as and to the extent that in their good faith judgment the Board shall determine to be advisable in order that any
(i) consolidation or subdivision of the Preferred Shares, (ii) issuance wholly for cash of any Preferred Shares at less than the current market price, (iii) issuance wholly for cash for Preferred Shares or securities which by their
terms are convertible into or exchangeable for Preferred Shares, (iv) stock dividends or (v) issuance of rights, options or warrants referred to in this Section 11, hereafter made by the Company to holders of its Preferred Shares
shall not be taxable to such shareholders. 
  

 19 

 (n) The Company covenants and agrees that it shall not, at any time after the
Distribution Date, (i) consolidate with any other Person (other than a Subsidiary of the Company in a transaction which complies with Section 11(o) hereof), (ii) merge with or into any other Person (other than a Subsidiary of the
Company in a transaction which complies with Section 11(o) hereof), or (iii) sell or transfer (or permit any Subsidiary to sell or transfer), in one transaction, or a series of related transactions, assets or earning power aggregating more
than 50% of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to any other person or persons (other than the Company and/or any of its Subsidiaries in one or more transactions each of which complies with
Section 11(o) hereof), if (x) at the time of or immediately after such consolidation, merger or sale there are any rights, warrants or other instruments or securities outstanding or agreements in effect that would substantially diminish or
otherwise eliminate the benefits intended to be afforded by the Rights or (y) prior to, simultaneously with or immediately after such consolidation, merger or sale, the shareholders of the Person who constitutes, or would constitute, the
“Principal Party” for purposes of Section 13(a) hereof shall have received a distribution of Rights previously owned by such Person or any of its Affiliates and Associates. 
 (o) The Company covenants and agrees that, after the Distribution Date, it will not, except as permitted by Section 23 or
Section 26 hereof, take (or permit any Subsidiary to take) any action if at the time such action is taken it is reasonably foreseeable that such action will diminish substantially or otherwise eliminate the benefits intended to be afforded by
the Rights. 
 (p) Anything in this Agreement to the contrary notwithstanding, in the event that the Company shall at any time
after the Rights Dividend Declaration Date and prior to the Distribution Date (i) declare a dividend on the outstanding Common Shares payable in Common Shares, (ii) subdivide the outstanding Common Shares, or (iii) combine the
outstanding Common Shares into a smaller number of shares, the number of Rights associated with each Common Share then outstanding, or issued or delivered thereafter but prior to the Distribution Date, shall be proportionately adjusted so that the
number of Rights thereafter associated with each Common Share following any such event shall equal the result obtained by multiplying the number of Rights associated with each Common Share immediately prior to such event by a fraction the numerator
of which shall be the total number of Common Shares outstanding immediately prior to the occurrence of the event and the denominator of which shall be the total number of Common Shares outstanding immediately following the occurrence of such event.

 (q) In the event that the Rights become exercisable following a Section 11(a)(ii) Event, the Company, by action of a
majority of the Board, may authorize that the Rights, subject to Section 7(e) hereof, either (i) will only be, or (ii) may, at the option of the holder entitled to exercise the Rights be, exercisable for, in either case 50% of the
Common Shares (or cash or other securities or assets to be substituted for the Adjustment Shares pursuant to subsection (a)(iii)) that would otherwise be purchasable under subsection (a), in consideration of the surrender to the Company of the
Rights so exercised and without other payment of the Purchase Price. Rights exercised under this subsection (q) shall be deemed to have been exercised in full and shall be canceled. 
  

 20 

 Section 12. Certificate of Adjusted Purchase Price or Number of Shares. 
 Whenever an adjustment is made as provided in Section 11 or Section 13 hereof, the Company shall (a) promptly prepare a certificate setting
forth such adjustment and a brief, reasonably detailed statement of the facts and computations accounting for such adjustment, (b) promptly file with the Rights Agent, and with each transfer agent for the Preferred Shares and the Common Shares,
a copy of such certificate, and (c) mail a brief summary thereof to each holder of a Rights Certificate (or, if prior to the Distribution Date, to each holder of a certificate representing Common Shares) in accordance with Section 25
hereof. The Rights Agent shall be fully protected in relying on any such certificate and on any adjustment therein contained and shall have no duty with respect to and shall not be deemed to have knowledge of any such adjustment unless and until it
shall have received such a certificate. 
 Section 13. Consolidation, Merger or Sale or Transfer of Assets or Transfer of Assets or
Earning Power. 
 (a) In the event that, following the Stock Acquisition Date, directly or indirectly, (x) the
Company shall consolidate with, or merge with and into, any other Person (other than a Subsidiary of the Company in a transaction which complies with Section 11(o) hereof), and the Company shall not be the continuing or surviving corporation of
such consolidation or merger, (y) any person (other than a Subsidiary of the Company in a transaction which complies with Section 11(o) hereof) shall consolidate with, or merge with or into, the Company, and the Company shall be the
continuing or surviving corporation of such consolidation or merger and, in connection with such consolidation or merger, all or part of the outstanding Common Shares shall be changed into or exchanged for stock or other securities of any other
Person or cash or any other property, or (z) the Company shall sell or otherwise transfer (or one or more of its Subsidiaries shall sell or otherwise transfer), in one transaction or a series of related transactions, assets or earning power
aggregating more than 50% of the assets, operating income, cash flow or earning power of the Company and its Subsidiaries (taken as a whole) to any Person or Persons (other than the Company or any Subsidiary of the Company in one or more
transactions each of which complies with Section 11(o) hereof), then, and in each such case and except as contemplated by subsection (d), proper provision shall be made so that: 
 (i) each holder of a Right, except as provided in Section 7(e) hereof or subsection (e), shall thereafter have the right to receive,
upon the exercise thereof at the then current Purchase Price in accordance with the terms of this Agreement, such number of validly authorized and issued, fully paid, non assessable and freely tradeable Common Shares of the Principal Party (as such
term is hereinafter defined), not subject to any liens, encumbrances, rights of first refusal or other adverse claims, as shall be equal to the result obtained by (1) multiplying the then current Purchase Price by the number of Preferred Share
Fractions for which a Right is exercisable immediately prior to the first occurrence of a Section 13 Event (or, if a Section 11(a)(ii) Event has occurred prior to the first occurrence of a Section 13 Event, multiplying the number of
such shares for which a Right was exercisable immediately prior to the first occurrence of a Section 11(a)(ii) Event by the Purchase Price in effect immediately prior 

  

 21 

 
to such first occurrence), and (2) dividing that product (which, following the first occurrence of a Section 13 Event, shall be referred to as the
“Purchase Price” for each Right and for all purposes of this Agreement) by 50% of the current market price (determined pursuant to Section 11(d)(i) hereof) per Common Share of such Principal Party on the date of consummation of such
Section 13 Event, 
 (ii) such Principal Party shall thereafter be liable for, and shall assume, by virtue of such
Section 13 Event, all the obligations and duties of the Company pursuant to this Agreement; 
 (iii) the term
“Company” shall thereafter be deemed to refer to such Principal Party, it being specifically intended that the provisions of Section 11 hereof shall apply only to such Principal Party following the first occurrence of a
Section 13 Event; 
 (iv) such Principal Party shall take such steps (including, but not limited to, the reservation of a
sufficient number of its Common Shares) in connection with the consummation of any such transaction as may be necessary to assure that the provisions hereof shall thereafter be applicable, as nearly as reasonably may be, in relation to its Common
Shares thereafter deliverable upon the exercise of the Rights; and 
 (v) the provisions of Section 11(a)(ii) hereof
shall be of no effect following the first occurrence of any Section 13 Event. 
 (b) “Principal Party” shall
mean 
 (i) in the case of any transaction described in clause (x) or (y) of the first sentence of subsection (a),
the Person that is the issuer of any securities into which Common Shares of the Company are converted in such merger or consolidation, and if no securities are so issued, the Person that is the other party to such merger or consolidation; and

 (ii) in the case of any transaction described in clause (z) of the first sentence of subsection (a), the Person that
is the party receiving the greatest portion of the assets or earning power transferred pursuant to such transaction or transactions; provided, however, that in the case of either (i) or (ii) above, (1) if the Common Shares of such
Person are not at such time and have not been continuously over the preceding twelve (12) month period registered under Section 12 of the Exchange Act, and such Person is a direct or indirect Subsidiary of another Person the Common Shares
of which are and have been so registered, “Principal Party” shall refer to such other Person, and (2) in case such Person is a Subsidiary, directly or indirectly, of more than one Person, the Common Shares of two or more of which are
and have been so registered, “Principal Party” shall refer to whichever of such Persons is the issuer of the Common Shares having the greatest aggregate market value. 
 (c) The Company shall not consummate any such consolidation, merger, sale or transfer unless the Principal Party shall have a sufficient
number of authorized shares of its Common Shares that have not been issued or reserved for issuance to permit the exercise in full of the Rights in accordance with this Section 13 and unless prior thereto the Company and such Principal Party
shall have executed and delivered to the Rights Agent a supplemental agreement providing for the terms set forth in paragraphs (a) and (b) of this Section 13 and further providing that, as soon as practicable after the date of any
Section 13 event, the Principal Party will 
 (i) prepare and file a registration statement under the Act, with respect
to the Rights and the securities purchasable upon exercise of the Rights on an appropriate form, and will use its best efforts to cause such registration statement to (A) become effective as soon as practicable after such filing and
(B) remain effective (with a prospectus at all times meeting the requirements of the Act) until the Expiration Date; 
  

 22 

 (ii) use its best efforts to qualify or register Rights and the securities purchasable
upon exercise of the Rights under blue sky laws of such jurisdiction, as may be necessary or appropriate; and 
 (iii) deliver
to holders of the Rights historical financial statements for the Principal Party and each of its Affiliates that comply in all respects with the requirements for registration on Form 10 under the Exchange Act. 
 The provisions of this Section 13 shall similarly apply to successive mergers or consolidations or sales or other transfers. In the event that a
Section 13 Event shall occur at any time after the occurrence of a Section 11(a)(ii) Event, the Rights that have not theretofore been exercised shall thereafter become exercisable solely in the manner described in Section 13(a).

 (d) Notwithstanding anything in this Agreement to the contrary, Section 13 (other than this subsection (d)) shall not
be applicable to, and the term “Section 13 Event” shall not include, a transaction described in subparagraphs (x) and (y) of Section 13(a) if (i) such transaction is consummated with a Person, or Persons who acquired
Common Shares pursuant to a Qualifying Offer (or a wholly owned Subsidiary of any such Person or Persons), (ii) the price per Common Share offered in such transaction is not less than the price per Common Share paid to all holders of Common
Shares whose shares were purchased pursuant to such tender offer or exchange offer and (iii) the form of consideration being offered to the remaining holders of Common Shares pursuant to such transaction is the same as the form of consideration
paid pursuant to such tender or exchange offer. Upon consummation of any such transaction contemplated by this subsection (d), all Rights hereunder shall expire. 
 (e) In the event that the Rights become exercisable under subsection (a) (except as provided in subsection (d)), the Company, by
action of a majority of the Board, may authorize that the Rights either (i) will only be or (ii) may, at the option of the Principal Party be, exercisable for, 50% of the Common Shares of the Principal Party that would otherwise be
purchasable under subsection (a), in consideration of the surrender to the Principal Party, as the successor to the Company under subsection (a)(ii), of the Rights so exercised and without other payment of the Purchase Price. Rights exercised under
this subsection (e) shall be deemed to have been exercised in full and shall be canceled. 
 Section 14. Fractional Rights and
Fractional Shares. 
 (a) The Company shall not be required to issue fractions of Rights, except prior to the Distribution
Date as provided in Section 11(p) hereof, or to distribute Rights Certificates that evidence fractional Rights. In lieu of such fractional Rights, there shall be paid 

  

 23 

 
to the registered holders of the Rights Certificates with regard to which such fractional Rights would otherwise be issuable, an amount in cash equal to the
same fraction of the current market value of a whole Right. For purposes of this subsection (a), the current market value of a whole Right shall be the closing price of the Rights for the Trading Day immediately prior to the date on which such
fractional Rights would have been otherwise issuable. The closing price of the Rights for any day shall be the last sale price, regular way, or, in case no such sale takes place on such day, the average of the closing bid and asked prices, regular
way, in either case as reported in the principal consolidated transaction reporting system with respect to securities listed or admitted to trading on the New York Stock Exchange or, if the Rights are not listed or admitted to trading on the New
York Stock Exchange, as reported in the principal consolidated transaction reporting system with respect: to securities listed on the principal national securities exchange on which the Rights are listed or admitted to trading, or if the Rights are
not listed or admitted to trading on any national securities exchange, the last quoted price or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported by the applicable system then in use or,
if on any such date the Rights are not quoted by any such organization, the average of the closing bid and asked prices as furnished by a professional market maker making a market in the Rights selected by the Board. If on any such date no such
market maker is making a market in the Rights the fair value of the Rights on such date as determined in good faith by the Board shall be used. 
 (b) The Company shall not be required to issue fractions of Preferred Shares upon exercise of the Rights or to distribute certificates which evidence fractional Preferred Shares, except in each case for fractions
which are integral multiples of Preferred Shares. In lieu of fractional Preferred Shares that are not integral multiples of Preferred Shares, the Company may pay to the registered holders of Rights Certificates at the time such Rights are exercised
as herein provided an amount in cash equal to the same fraction of the current market value of a Preferred Share. For purposes of this subsection (b), the current market value of one Preferred Share shall be the closing price of a Preferred Share
(as determined pursuant to Section 11(d)(ii) hereof) for the Trading Day immediately prior to the date of such exercise. 
 (c) Following the occurrence of a Triggering Event, the Company shall not be required to issue fractions of Common Shares upon exercise of the Rights or to distribute certificates that evidence fractional Common Shares. In lieu of
fractional Common Shares, the Company may pay to the registered holders of Rights Certificates at the time such Rights are exercised as herein provided an amount in cash equal to the same fraction of the current market value of one Common Share. For
purposes of this subsection (c), the current market value of one Common Share shall be the closing price of one Common Share (as determined pursuant to Section 11(d)(i) hereof) for, the Trading Day immediately prior to the date of such
exercise. 
 (d) Whenever a payment for fractional Rights or fractional shares is to be made by the Rights Agent, the Company
shall (i) promptly prepare and deliver to the Rights Agent a certificate setting forth in reasonable detail the facts related to such payment and the process and/or formulas utilized in calculating such payments, and (ii) provide
sufficient monies to the Rights Agent in the form of fully collected funds to make such payments. The Rights Agent shall be fully protected in relying on such certificate and shall have no duty with respect to and shall not be deemed to have
knowledge of any payment for fractional Rights or fractional shares under this Section 14 unless and until it shall have received such a certificate and sufficient monies. 
  

 24 

 (e) The holder of a Right or a beneficial interest in a Right by the acceptance thereof
expressly waives his right to receive any fractional Rights or any fractional Common Shares upon exercise of a Right, except as permitted by this Section 14. 
 Section 15. Rights of Action. 
 All rights of action in respect of this Agreement are vested in the
respective registered holders of the Rights Certificates (and, prior to the Distribution Date, the registered holders of the Common Shares); and any registered holder of any Rights Certificate (or, prior to the Distribution Date, of the Common
Shares), without the consent of the Rights Agent or of the holder of any other Rights Certificate (or, prior to the Distribution Date, of the Common Shares), may, in his own behalf and for his own benefit, enforce, and may institute and maintain any
suit, action or proceeding against the Company to enforce, or otherwise act in respect of, his right to exercise the Rights evidenced by such Rights Certificate in the manner provided in such Rights Certificate and in this Agreement. Without
limiting the foregoing or any remedies available to the holders of Rights or beneficial interests therein, it is specifically acknowledged that the holders of Rights or beneficial interests therein would not have an adequate remedy at law for any
breach of this Agreement and shall be entitled to specific performance of the obligations hereunder and injunctive relief against actual or threatened violations of the obligations hereunder of any Person subject to this Agreement. 
 Section 16. Agreement of Rights Holders. 
 Every holder of a Right or a beneficial interest in a Right by accepting the same consents and agrees with the Company and the Rights Agent and with every other such holder that: 
 (a) prior to the Distribution Date, beneficial interests in the Rights will be transferable only in connection with the transfer of Common
Shares; 
 (b) after the Distribution Date, the Rights Certificates are transferable only on the registry books of the Rights
Agent if surrendered at the principal office or offices of the Rights Agent designated for such purposes, duly endorsed or accompanied by a proper instrument of transfer and with the appropriate forms and certificates fully executed; 
 (c) subject to Section 6(a) and Section 7(f) hereof, the Company and the Rights Agent may deem and treat the Person in whose
name a Rights Certificate (or, prior to the Distribution Date, the associated Common Share certificate) is registered as the absolute owner thereof and of the Rights evidenced thereby (notwithstanding any notations of ownership or writing on the
Rights Certificates or the associated Common Share certificate made by anyone other than the Company or the Rights Agent) for all purposes whatsoever, and neither the Company nor the Rights Agent shall be required to be affected by any notice to the
contrary; and 
 (d) notwithstanding anything in this Agreement to the contrary, neither the Company nor the Rights Agent
shall have any liability to any holder of a Right or a beneficial interest in a Right or other Person as a result of its inability to perform any of its obligations 

  

 25 

 
under this Agreement by reason of any preliminary or permanent injunction or other order, decree, judgment or ruling (whether interlocutory or final) issued
by a court of competent jurisdiction or by a governmental, regulatory or administrative agency or commission, or any statute, rule, regulation or executive order promulgated or enacted by any governmental authority, prohibiting or otherwise
restraining performance of such obligation; provided, however, the Company must use its best efforts to have any such order, decree, judgment or ruling lifted or otherwise overturned as soon as possible. 
 Section 17. Rights Certificate Holder Not Deemed a Shareholder. 
 No holder, as such, of any Rights Certificate shall be entitled to vote, receive dividends or be deemed for any purpose the holder of the number of Preferred Share Fractions or any other securities of the Company
(including the Common Shares) that may at any time be issuable on the exercise of the Rights represented thereby, nor shall anything contained herein or in any Rights Certificate be construed to confer, upon the holder of any Rights Certificate, as
such, any of the rights of a shareholder of the Company or any right to vote for the election of directors or upon any matter submitted to shareholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive
notice of meetings or other actions affecting shareholders (except as provided in Section 24 hereof), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by such Rights Certificate shall have been
exercised in accordance with the provisions hereof. 
 Section 18. Concerning the Rights Agent. 
 (a) The Company agrees to pay to the Rights Agent reasonable compensation for all services rendered by it hereunder and, from time to
time, on demand of the Rights Agent, its reasonable expenses and counsel fees and disbursements and other disbursements incurred in the preparation, execution, delivery, amendment, administration and execution of this Agreement and the exercise and
performance of its duties hereunder. The Company also agrees to indemnify the Rights Agent and its directors, officers, employees and agents, for and to hold each of them harmless against, any loss, liability, damage, judgment, fine, penalty, claim,
demand, settlement, cost or expense, incurred without gross negligence, bad faith or willful misconduct on the part of the Rights Agent or any such indemnified party, for any action taken, suffered or omitted by the Rights Agent in connection with
the acceptance or administration of this Agreement or the exercise of its duties hereunder, including without limitation the costs and expenses of defending against any claim of liability in the premises. 
 (b) The Rights Agent shall be protected and shall incur no liability for or in respect of any action taken, suffered or omitted by it in
connection with the acceptance and administration of this Agreement or in the exercise of its duties hereunder in reliance upon any Rights Certificate or certificate for Common Shares or for other securities of the Company, instrument of assignment
or transfer, power of attorney, endorsement, affidavit, letter, notice, direction, consent, certificate, statement, or other paper or document believed by it to be genuine and to be signed, executed and, where necessary, verified or acknowledged, by
the proper Person or Persons. 
  

 26 

 Section 19. Merger or Consolidation or Change of Name of Rights Agent. 
 (a) Any Person into which the Rights Agent or any successor Rights Agent may be merged or with which it may be consolidated, or any Person
resulting from any merger or consolidation to which the Rights Agent or any successor Rights Agent shall be a party, or any Person succeeding to the shareholder services or stock transfer business of the Rights Agent or any successor Rights Agent,
shall be the successor to the Rights Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties hereto; provided, however, that such Person would be eligible for appointment as a
successor Rights Agent under the provisions of Section 21 hereof. 
 (b) In case at any time the name of the Rights Agent
shall be changed and at such time any of the Rights Certificates shall have been countersigned but not delivered the Rights Agent may adopt the countersignature under its prior name and deliver Rights Certificates so countersigned; and in case at
that time any of the Rights Certificates shall not have been countersigned, the Rights Agent may countersign such Rights Certificates either in its prior name or in its changed name; and in all such cases such Rights Certificates shall have the full
force provided in the Rights Certificates and in this Agreement. 
 Section 20. Duties of Rights Agent. 
 The Rights Agent undertakes the duties and obligations, and only the duties and obligations, expressly imposed by this Agreement (and no implied duties or
obligations) upon the following terms and conditions, by all of which the Company and the holders of Rights Certificates or beneficial interests in the Rights, by their acceptance thereof, shall be bound: 
 (a) The Rights Agent may consult with legal counsel (who may be legal counsel for the Company), and the advice or written opinion of such
counsel shall be full and complete authorization and protection to the Rights Agent, and the Rights Agent shall incur no liability for or in respect of, any action taken, suffered or omitted by it in good faith and in accordance with such advice or
opinion. 
 (b) Whenever in the performance of its duties under this Agreement the Rights Agent shall deem it necessary or
desirable that any fact or matter (including, without limitation, the identity of any Acquiring Person and the determination of “current market price”) be proved or established by the Company prior to taking, suffering or omitting any
action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a certificate signed by the Chairman of the Board, the President, any Vice
President, the Treasurer, any Assistant Treasurer, the Secretary or any Assistant Secretary of the Company and delivered to the Rights Agent; and such certificate shall be full authorization and protection to the Rights Agent and the Rights Agent
shall incur no liability for or in respect of any action taken, suffered or omitted in good faith by it under the provisions of this Agreement in reliance upon such certificate. 
 (c) The Rights Agent shall be liable hereunder only for its own gross negligence, bad faith or willful misconduct; provided, however, that
the Rights Agent shall not be liable for special, indirect, incidental or consequential loss or damage of any kind whatsoever, even if the Rights Agent has been advised of the likelihood of such loss or damage. 
  

 27 

 (d) The Rights Agent shall not be liable for or by reason of any of the statements of
fact or recitals contained in this Agreement or in the Rights Certificates or be required to verify the same (except as to its countersignature on such Rights Certificates), but all such statements and recitals are and shall be deemed to have been
made by the Company only. 
 (e) The Rights Agent shall not be under any liability or responsibility in respect of the
validity of any provision of this Agreement or the execution and delivery hereof (except the due execution hereof by the Rights Agent) or in respect of the validity or execution of any Rights Certificate (except its countersignature thereof); nor
shall it be responsible for any breach by the Company of any covenant or condition contained in this Agreement or in any Rights Certificate; nor shall it be responsible for any adjustment required under the provisions of this Agreement or
responsible for the manner, method or amount of any such adjustment or the ascertaining of the existence of facts that would require any such adjustment (except with respect to the exercise of Rights evidenced by Rights Certificates after actual
notice of any such adjustment); nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation of any Common Shares to be issued pursuant to this Agreement or any Rights Certificate or as to
whether any Common Shares or Preferred Shares will, when so issued, be validly authorized and issued, fully paid and nonassessable. 
 (f) The Company agrees that it will perform, execute, acknowledge and deliver or cause to be performed, executed, acknowledged and delivered all such further and other acts, instruments and assurances as may reasonably be required by the
Rights Agent for the carrying out or performing by the Rights Agent of the provisions of this Agreement. 
 (g) The Rights
Agent is hereby authorized and directed to accept instructions with respect to the performance of its duties hereunder from any one of the Chairman of the Board, the President, any Vice President, the Secretary, any Assistant Secretary, the
Treasurer or any Assistant Treasurer of the Company, and to apply to such officers for advice or instructions in connection with its duties, and such instructions shall be full authorization and protection for the Rights Agent and the Rights Agent
shall incur no liability for or in respect of any action taken, suffered or omitted to be taken by it in good faith in accordance with instructions of any such officer. The Rights Agent may conclusively rely on the most recent instructions provided
to it by any such officer. 
 (h) The Rights Agent and any shareholder, affiliate, director, officer or employee of the Rights
Agent may buy, sell or deal in any of the Rights or other securities of the Company or become pecuniarily interested in any transaction in which the Company may be interested, or contract with or lend money to the Company or otherwise act as fully
and freely as though it were not the Rights Agent under this Agreement and none of such actions shall constitute a breach of trust. Nothing herein shall preclude the Rights Agent from acting in any other capacity for the Company or for any other
Person or legal entity. 
 (i) The Rights Agent may execute and exercise any of the rights or powers hereby vested in it or
perform any duty hereunder either itself or by or through its attorneys or agents, and the Rights Agent shall not be answerable or accountable for any act, default, neglect or misconduct of any such attorneys or agents or for any loss to the Company
or any other Person resulting from any such act, default, neglect or misconduct, absent gross negligence, bad faith or willful misconduct in the selection and continued employment thereof. 
  

 28 

 (j) No provision of this Agreement shall require the Rights Agent to expend or risk its
own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise of its rights if it believes that repayment of such funds or adequate indemnification against such risk or liability is not
reasonably assured to it. 
 (k) If, with respect to any Rights Certificate surrendered to the Rights Agent for exercise or
transfer, the certificate attached to the form of assignment or form of election to purchase, as the case may be, has either not been completed or indicates an affirmative response to clause 1 and/or 2 thereof, the Rights Agent shall not take any
further action with respect to such requested exercise or transfer without first consulting with the Company. 
 Section 21. Change of
Rights Agent. 
 The Rights Agent or any successor Rights Agent may resign and be discharged from its duties under this Agreement upon
thirty (30) days’ prior written notice mailed to the Company and to each transfer agent of the Common Shares and Preferred Shares by registered or certified mail, and to the holders of the Rights Certificates by first-class mail. The
Company may remove the Rights Agent or any successor Rights Agent upon thirty (30) days’ prior written notice mailed to the Rights Agent or successor Rights Agent, as the case may be, and to each transfer agent of the Common Shares and
Preferred Shares, by registered or certified mail, and to the holders of the Rights Certificates by first-class mail. If the Rights Agent shall resign or be removed or shall otherwise become incapable of acting, the Company shall appoint a successor
to the Rights Agent. If the Company shall fail to make such appointment within a period of thirty (30) days after giving notice of such removal or after it has been notified in writing of such resignation or incapacity by the resigning or
incapacitated Rights Agent or by the holder of a Rights Certificate (who shall, with such notice, submit his Rights Certificate for inspection by the Company), then any registered holder of any Rights Certificate may apply to any court of competent
jurisdiction for the appointment of a new Rights Agent. Any successor Rights Agent, whether appointed by the Company or by such a court, shall be (a) a Person organized, doing business and in good standing under the laws of the United States or
of any state, having a principal office in the State of New York or the Commonwealth of Pennsylvania, that is authorized by law to exercise shareholder services and stock transfer powers and is subject to supervision or examination by federal or
state authority and that has at the time of its appointment as Rights Agent a combined capital and surplus of at least $50,000,000 or (b) an Affiliate of any such person. After appointment, the successor Rights Agent shall be vested with the
same powers, rights, duties and responsibilities as if it had been originally named as Rights Agent without further act or deed; but the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any property at the time held
by it hereunder, and execute and deliver any further assurance, conveyance, act or deed necessary for the purpose. Not later than the effective date of any such appointment, the Company shall file notice thereof in writing with the predecessor
Rights Agent and each transfer agent of the Common Shares and Preferred Shares and mail a notice thereof in writing to the registered holders of the Rights Certificates or, prior to the Distribution Date, to the registered holders of the Common
Shares. In case at the time such successor Rights Agent shall succeed to the agency and trust created by this Agreement, any of 

  

 29 

 
the Rights Certificates shall have been countersigned but not delivered, any such successor Rights Agent may adopt the countersignature of a predecessor
Rights Agent and deliver such Rights Certificates so countersigned; and in case at that time any of the Rights Certificates shall not have been countersigned, any successor Rights Agent may countersign such Rights Certificates either in the name of
the predecessor or in the name of the successor Rights Agent; and in all such cases such Rights Certificates shall have the full force provided in the Rights Certificates and in this Agreement. 
 Failure to give any notice provided for in this Section 21, however, or any defect therein, shall not affect the legality or validity of the resignation or removal
of the Rights Agent or the appointment of the successor Rights Agent, as the case may be. 
 Section 22. Issuance of New Rights
Certificates. 
 Notwithstanding any of the provisions of this Agreement or of the Rights to the contrary, the Company may, at its option,
issue new Rights Certificates evidencing Rights in such form as may be approved by its Board to reflect any adjustment or change in the Purchase Price and the number or kind or class of shares or other securities or property purchasable under the
Rights Certificates made in accordance with the provisions of this Agreement. In addition, in connection with the issuance, sale or delivery of Common Shares following the Distribution Date and prior to the redemption or expiration of the Rights,
the Company (a) shall, with respect to Common Shares so issued, sold or delivered pursuant to the exercise of stock options, stock appreciation rights, grants or awards outstanding on the Distribution Date under any benefit plan or arrangement
for employees or directors, or upon the exercise, conversion or exchange of securities outstanding on the Record Date or hereinafter issued by the Company, and (b) may, in any other case, if deemed necessary or appropriate by the Board, issue
Rights Certificates representing the appropriate number of Rights in connection with such issuance or sale; provided, however, that (i) no such Rights Certificate shall be issued if, and to the extent that, the Company shall be advised by
counsel that such issuance would create a significant risk of material adverse tax consequences to the Company or the Person to whom such Rights Certificate would be issued, and (ii) no such Rights Certificate shall be issued if, and to the
extent that, appropriate adjustment shall otherwise have been made in lieu of the issuance thereof. 
 Section 23. Redemption and
Termination. 
 (a) The Board may, at its option, at any time prior to the earlier of (i) the Close of Business on
the tenth day following a Stock Acquisition Date (or, if the Stock Acquisition Date shall have occurred prior to the Record Date, the Close of Business on the tenth day following the Record Date), or (ii) the Close of Business on the Final
Expiration Date, redeem all but not less than all the then outstanding Rights at a redemption price of $0.01 per Right, as such amount may be appropriately adjusted to reflect any stock split, stock dividend or similar transaction occurring after
the date hereof (such redemption price being hereinafter referred to as the “Redemption Price”) and the Company may, at its option, pay the Redemption Price either in Common Shares (based on the “current market price”, as defined
in Section 11(d)(i) hereof, of the Common Shares at the time of redemption) or cash; provided, however, if, following the occurrence of a Stock Acquisition Date and following the expiration of the right of 

  

 30 

 
redemption hereunder but prior to any Triggering Event, (1) an Acquiring Person shall have transferred or otherwise disposed of a number of Common
Shares in one transaction or series of transactions, not directly or indirectly involving the Company or any of its Subsidiaries, which did not result in the occurrence of a Triggering Event or the Company shall have issued additional equity
securities, in either instance such that such Person is thereafter a Beneficial Owner of 20% or less of the outstanding Common Shares, and (2) there is no other Acquiring Person immediately following the occurrence of the event described in
clause (1), then the right of redemption shall be reinstated and thereafter be subject to the provisions of this Section 23. Notwithstanding anything contained in this Agreement to the contrary, the Rights shall not be exercisable after the
first occurrence of a Section 11(a)(ii) Event until such time as the Company’s right of redemption hereunder has expired. 
 (b) Immediately upon the action of the Board ordering the redemption of the Rights, without any notice, or further action, the right to exercise the Rights will terminate and the only right thereafter of the holders of Rights shall be to
receive the Redemption Price for each Right so held. Promptly after the action of the Board ordering the redemption of the Rights, the Company shall give notice of such redemption to the Rights Agent and the holders of the then outstanding Rights
by, in the case of notice to holders, mailing such notice to all such holders at each holder’s last address as it appears upon the registry books of the Rights Agent or, prior to the Distribution Date, on the registry books of the Transfer
Agent for the Common Shares. Any notice that is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such notice of redemption will state the method by which the payment of the Redemption
Price will be made. 
 Section 24. Exchange. 
 (a) The Board may, at its option, at any time after any Person becomes an Acquiring Person, exchange all or part of the then outstanding
and exercisable Rights (which shall not include Rights that have become null and void pursuant to the provisions of Section 7(e) hereof) for Common Shares at an exchange ratio of one Common Share per Right, appropriately adjusted to reflect any
stock split, stock dividend or similar transaction occurring after the date hereof (such exchange ratio being hereinafter referred to as the “Exchange Ratio”). Notwithstanding the foregoing, the Board shall not be empowered to effect such
exchange at any time after any Person (other than (i) Alfred P. West, Jr., (ii) any immediate family member of Alfred P. West Jr. who exceeds the 50% Company ownership threshold solely by reason of a transfer of Common Shares from Alfred
P. West Jr. or his spouse to such immediate family member and who does not subsequently acquire at least 1% of the Common Shares outstanding from a source other than Alfred P. West Jr. or his spouse, (iii) the Company, (iv) any Subsidiary
of the Company, (v) any employee benefit plan of the Company or any such Subsidiary, or (vi) any Person organized, appointed or established by the Company for or pursuant to the terms of any such plan), together with all Affiliates and
Associates of such Person, becomes the Beneficial Owner of fifty percent (50%) or more of the Common Shares then outstanding. 
 (b) Immediately upon the action of the Board ordering the exchange of any Rights pursuant to subsection (a) of this Section 24 and without any further action and without any notice, the right to exercise such Rights shall
terminate and the only right thereafter of the holders of such Rights shall be to receive that number of Common Shares equal to the number of 

  

 31 

 
such Rights held by such holder multiplied by the Exchange Ratio. The Company shall promptly give public notice of any such exchange; provided, however, that
the failure to give, or any defect in, such notice shall not affect the validity of such exchange. The Company shall promptly notify the Rights Agent of any such exchange. The Company promptly shall mail a notice of any such exchange to all of the
holders of such Rights at their last addresses as they appear upon the registry books of the Rights Agent. Any notice which is mailed in the manner herein provided shall be deemed given, whether or not the holder receives the notice. Each such
notice of exchange will state the method by which the exchange of the Common Shares for Rights will be effected and, in the event of any partial exchange, the number of Rights which will be exchanged. Any partial exchange shall be effected pro rata
based on the number of Rights (other than Rights which have become void pursuant to the provisions of Section 7(e) hereof) held by each holder of Rights. 
 (c) In the event that there shall not be sufficient Common Shares issued but not outstanding or authorized but issued to permit any
exchange of Rights as contemplated in accordance with this Section 24, the Company shall take all such action as may be necessary to authorize additional Common Shares for issuance upon exchange of the Rights. 
 (d) The Company shall not be required to issue fractions of Common Shares or to distribute certificates which evidence fractional Common
Shares. In lieu of such fractional Common Shares, there shall be paid to the registered holders of the Rights Certificates with regard to which such fractional Common Shares would otherwise be issuable, an amount in cash equal to the same fraction
of the current market value of a whole Common Share. For the purposes of this subsection (d), the current market value of a whole Common Share shall be the closing price of a Common Share (as determined pursuant to the second sentence of
Section 11(d) hereof) for the Trading Day immediately prior to the date of exchange pursuant to this Section 24. 
 Section 25.
Notice of Certain Events. 
 (a) In case the Company shall propose, at any time after the Distribution Date, (i) to
pay any dividend payable in stock of any class to the holders of Preferred Shares or to make any other distribution to the holders of Preferred Shares (other than a regular quarterly dividend out of earnings or retained earnings of the Company), or
(ii) to offer to the holders of Preferred Shares rights or warrants to subscribe for or to purchase any additional Preferred Shares or shares of stock of any class or any other securities, rights or options, or (iii) to effect any
reclassification of its Preferred Shares (other than a reclassification involving only the subdivision of outstanding Preferred Shares), or (iv) to effect any consolidation or merger into or with any other Person (other than a Subsidiary of the
Company in a transaction which complies with Section 11(o) hereof), or to effect any sale or other transfer (or to permit one or more of its Subsidiaries to effect any sale or other transfer), in one transaction or a series of related
transactions, of more than 50% of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to any other Person or Persons (other than the Company and/or any of its Subsidiaries in one or more transactions each of which
complies with Section 11(o) hereof), or (v) to effect the liquidation, dissolution or winding up of the Company, then, in each such case, the Company shall give to the Rights Agent and to each holder of a Rights Certificate, to the extent
feasible and in accordance with Section 26 hereof, a notice of such proposed action, 

  

 32 

 
which shall specify the record date for the purposes of such stock dividend distribution of rights or warrants, or the date on which such reclassification,
consolidation, merger, sale, transfer, liquidation, dissolution, or winding up is to take place and the date of participation therein by the holders of Preferred Shares, if any such date is to be fixed, and such notice shall be so given in the case
of any action covered by clause (i) or (ii) above at least twenty (20) days prior to the record date for determining holders of Preferred Shares for purposes of such action, and in the case of any such other action, at least twenty
(20) days prior, to the date of the taking of such proposed action or the date of participation therein by the holders of Preferred Shares, whichever shall be the earlier. 
 (b) Upon the occurrence of a Section 11(a)(ii) Event, (i) the Company shall as soon as practicable thereafter give to each
holder of a Rights Certificate, to the extent feasible and in accordance with Section 26 hereof, a notice of the occurrence of such event, which shall specify the event and the consequences of the event to holders of Rights under
Section 11(a)(ii) hereof, and (ii) all references in the preceding paragraph to Preferred Shares shall be deemed thereafter to refer to Common Shares and/or, if appropriate, other securities. 
 Section 26. Notices. 
 Notices or
demands authorized by this Agreement to be given or made by the Rights Agent or by the holder of any Rights Certificate to or on the Company shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed (until another
address is filed in writing with the Rights Agent) as follows: 
 SEI Investments Company 
 One Freedom Valley Drive 
 Oaks, Pennsylvania
19456 
 Attention: Corporate Secretary 
 Subject to the provisions of Section 21, any notice or demand authorized by this Agreement to be given or made by the Company or by the holder of any Rights Certificate to or on the Rights Agent shall be sufficiently given or made if
sent by first-class mail, postage prepaid, addressed (until another address is filed in writing with the Company) as follows: 
 American
Stock Transfer & Trust Company, LLC 
 59 Maiden Lane 
 New York, NY 10059 
 Attention: Corporate Trust Department 
 Notices or demands authorized by this Agreement to be given or made by the Company or the Rights Agent to the holder of any Rights Certificate (or, if
prior to the Distribution Date to the holder of certificates representing Common Shares) shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed to such holder at the address of such holder as shown on the
registry books of the Company. 
  

 33 

 Section 27. Supplements and Amendments. 
 (a) Prior to the Distribution Date and subject to the penultimate sentence of this Section 27, the Company may, and the Rights Agent
shall, if the Company so directs, supplement or amend any provision of this Agreement without the approval of any holders of certificates representing Common Shares. From and after the Distribution Date and subject to the penultimate sentence of
this Section 27, the Company may, and the Rights Agent shall, if the Company so directs, supplement or amend this Agreement without the approval of any holders of Rights Certificates in order (i) to cure any ambiguity, (ii) to correct
or supplement any provision contained herein which may be defective or inconsistent with any other provisions herein, (iii) to shorten or lengthen any time period hereunder, or (iv) to change or supplement the provisions hereunder in any
manner that the Company may deem necessary or desirable and that shall not adversely affect the interests of the holders of Rights Certificates; provided, this Agreement may not be supplemented or amended to lengthen, pursuant to clause
(iii) of this sentence, (A) a time period relating to when the Rights may be redeemed at such time as the Rights are not then redeemable, or (B) any other time period unless such lengthening is for the purpose of protecting, enhancing
or clarifying the rights of, and/or the benefits to, the holders of Rights. Upon the delivery of a certificate from an appropriate officer of the Company that states that the proposed supplement or amendment is in compliance with the terms of this
Section 27, and if requested by the Rights Agent, an opinion of counsel, the Rights Agent shall execute such supplement or amendment. Notwithstanding anything contained in this Agreement to the contrary, no supplement or amendment that changes
or increases the obligations and duties of the Rights Agent under this Agreement shall be effective without the consent of the Rights Agent. Prior to the Distribution Date, the interests of the beneficial owners of Rights shall be deemed coincident
with the interests of the holders of Common Shares. 
 Section 28. Successors. 
 All the covenants and provisions of this Agreement by or for the benefit of the Company or the Rights Agent shall bind and inure to the benefit of their
respective successors and assigns hereunder. 
 Section 29. Determinations and Actions by the Board, etc. 
 For all purposes of this Agreement, any calculation of the number of Common Shares outstanding at any particular time, including for purposes of
determining the particular percentage of such outstanding Common Shares of which any Person is the Beneficial Owner, shall be made in accordance with the last sentence of Rule 13d-3(d)(1)(i) of the General Rules and Regulations under the Exchange
Act. The Board shall have the exclusive power and authority to administer this Agreement and to exercise all rights and powers specifically granted to the Board or to the Company, or as may be necessary or advisable in the administration of this
Agreement, including, without limitation, the right and power to (i) interpret the provisions of this Agreement, and (ii) make all determinations deemed necessary or advisable for the administration of this Agreement (including a
determination to redeem or not redeem the Rights or to amend or supplement the Agreement). All such actions, calculations, interpretations and determinations (including, for purposes of clause (y) below, all omissions with respect to the
foregoing), that are done or made by the Board in good faith, shall (x) be final, conclusive and binding on the Company, the Rights Agent, the holders of the Rights and all other Persons, and (y) not subject the Board to any liability to
the holders of the Rights. For purposes of this Agreement, the Rights Agent shall be allowed to assume that all such actions, calculations, interpretations and determinations have been done or made by the Board in good faith. 
  

 34 

 Section 30. Benefits of this Agreement. 
 Nothing in this Agreement shall be construed to give to any Person other than the Company, the Rights Agent and the registered holders of the Rights
Certificates (and, prior to the Distribution Date, registered holders of the Common Shares) any legal or equitable right, remedy or claim under this Agreement; but this Agreement shall be for the sole and exclusive benefit of the Company, the Rights
Agent and the registered holders of the Rights Certificates (and, prior to the Distribution Date, registered holders of the Common Shares). 
 Section 31. Severability. 
 If any term, provision, covenant or restriction of this Agreement is held by a court of competent
jurisdiction or other authority to be invalid, void or unenforceable for any purpose or under any set of circumstances or as applied to any Person, such invalid, void or unenforceable term, provision, covenant or restriction shall continue in effect
to the maximum extent possible for all other purposes, under all other circumstances and as applied to all other Persons; and the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect
and shall in no way be affected, impaired or invalidated; provided, however, that notwithstanding anything in this Agreement to the contrary, if any such term, provision, covenant or restriction is held by such court or authority to be invalid, void
or unenforceable and the Board determines in its good faith judgment that severing the invalid language from this Agreement would adversely affect the purpose or effect of this Agreement, the right of redemption set forth in Section 23 hereof
shall be reinstated and shall not expire until the Close of Business on the tenth day following the date of such determination by the Board. Without limiting the foregoing, if any provisions requiring that a determination be made by less than the
entire Board (or at a time or with the concurrence of a group of directors consisting of less than the entire Board) is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, such determination shall then
be made by the Board in accordance with applicable law and the Company’s Articles of Incorporation and by-laws. 
 Section 32.
Governing Law. 
 This Agreement, each Right and each Rights Certificate issued hereunder shall be deemed to be a contract made under the
laws of the Commonwealth of Pennsylvania and for all purposes shall be governed by and construed in accordance with the laws of such jurisdiction applicable to contracts made and to be performed entirely within such jurisdiction; except that all
provisions regarding the rights, duties and obligations of the Rights Agent shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within such jurisdiction.

 Section 33. Counterparts. 
 This Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. 

 

 35 

 Section 34. Descriptive Headings. 
 Descriptive headings of the several Sections of this Agreement are inserted for convenience only and shall not control or affect the meaning or
construction of any of the provisions hereof. 
 IN WITNESS WHEREOF, the parties hereto have caused this Rights Agreement to be duly executed
as of the day and year first above written. 
  

					
	 SEI INVESTMENTS COMPANY

		
	By:	 	/s/ N. Jeffrey Klauder
		 	Name:	 	N. Jeffrey Klauder
		 	Title:	 	Executive Vice President
	
	 AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC

		
	By:	 	/s/ Herbert J. Lemmer
		 	Name:	 	Herbert J. Lemmer
		 	Title:	 	Vice President

  

 36 

 EXHIBIT A 
 RESOLUTION OF THE BOARD OF DIRECTORS OF SEI INVESTMENTS COMPANY 
 AMENDING THE DESIGNATION OF SERIES A JUNIOR
PARTICIPATING 
 PREFERRED SHARES AS A SERIES OF THE SERIES PREFERRED STOCK 
 WHEREAS, SEI Investments Company (the “Corporation”) has authorized, but has never issued any shares of its Series A Junior Participating
Preferred Shares; 
 NOW, THEREFORE, BE IT RESOLVED, that pursuant to the authority expressly vested in the Board of Directors of the
Corporation (the “Board”) by Article FIFTH of the Articles of Incorporation of the Corporation, the Board hereby amends the number, voting rights, designations, preferences, qualifications, privileges, limitations, restrictions, options,
conversion rights and other special or relative rights of the first series of the Series Preferred Stock, par value $.05 per share, which shall consist of 50,000 shares and shall be designated as Series A Junior Participating Preferred Shares (the
“Series A Preferred Shares”); and it is further 
 RESOLVED, that the remaining 10,000 shares of Preferred Stock shall not at this
time be designated and shall remain subject to the provisions of Article Fourth of the Restated Articles of Incorporation. 
 Special Terms
of the Series A Preferred Shares 
 Section 1. Dividends and Distributions. 
 (a) The rate of dividends payable per share of Series A Preferred Shares on the first day of January, April, July and October in each year or such other quarterly payment date as shall be specified by the Board (each
such date being referred to herein as a “Quarterly Dividend Payment Date”), commencing on the first Quarterly Dividend Payment Date after the first issuance of a share or fraction of a share of the Series A Preferred Shares, shall be
(rounded to the nearest cent) equal to the greater of (i) $160 or (ii), subject to the provision for adjustment hereinafter set forth, 20,000 times the aggregate per share amount of all cash dividends, and 20,000 times the aggregate per share
amount (payable in cash, based upon the fair market value at the time the non-cash dividend or other distribution is declared or paid as determined in good faith by the Board) of all non-cash dividends or other distributions other than a dividend
payable in shares of Common Stock or a subdivision of the outstanding shares of Common Stock (by reclassification or otherwise), declared on the Common Stock, $0.01 par value per share, of the Corporation since the immediately preceding Quarterly
Dividend Payment Date, or, with respect to the first Quarterly Dividend Payment Date, since the first issuance of any share or fraction of a share of the Series A Preferred Shares. Dividends on the Series A Preferred Shares shall be paid out of
funds legally available for such purpose. In the event the Corporation shall at any time after December 16, 2008 (the “Rights Declaration Date”) (i) declare any dividend on Common Stock payable in shares of Common Stock,
(ii) subdivide the outstanding shares of Common Stock, or (iii) combine the outstanding shares of Common Stock into a smaller number of shares, then in each such case the amounts to which holders of Series A Preferred Shares were entitled
immediately prior to such event under clause (ii) of the preceding sentence shall be adjusted by multiplying each such amount by a fraction the numerator of which is the number of shares of Common Stock outstanding immediately after such event
and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. 
  

 A-1 

 (b) Dividends shall begin to accrue and be cumulative on outstanding Series A Preferred Shares from the Quarterly
Dividend Payment Date next preceding the date of issue of such Series A Preferred Shares, unless the date of issue of such shares is prior to the record date for the first Quarterly Dividend Payment Date, in which case dividends on such shares shall
begin to accrue from the date of issue of such shares, or unless the date of issue is a Quarterly Dividend Payment Date or is a date after the record date for the determination of holders of Series A Preferred Shares entitled to receive a quarterly
dividend and before such Quarterly Dividend Payment Date, in either of which events such dividends shall begin to accrue and be cumulative from such quarterly Dividend Payment Date. Accrued but unpaid dividends shall not bear interest. Dividends
paid on the Series A Preferred Shares in an amount less than the total amount of such dividends at the time accrued and payable on such shares shall be allocated pro rata on a share-by-share basis among all such shares at the time outstanding.

 Section 2. Voting Rights. 
 In addition
to any other voting rights required by law, the holders of Series A Preferred Shares shall have the following voting rights: 
 (a) Subject to the provision
for adjustment hereinafter set forth, each Series A Preferred Share shall entitle the holder thereof to 20,000 votes on all matters submitted to a vote of the shareholders of the Corporation. In the event the Corporation shall at any time after the
Rights Declaration Date (i) declare any dividend on Common Stock payable in shares of Common Stock, (ii) subdivide the outstanding shares of Common Stock, or (iii) combine the outstanding shares of Common Stock into a smaller number
of shares, then in each such case the number of votes per share to which holders of Series A Preferred Shares were entitled immediately prior to such event shall be adjusted by multiplying such number by a fraction the numerator of which is the
number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. 
 (b) In the event that dividends upon the Series A Preferred Shares shall be in arrears to an amount equal to six full quarterly dividends thereon, the holders of such
Series A Preferred Shares shall become entitled to the extent hereinafter provided to vote noncumulatively at all elections of directors of the Corporation, and to receive notice of all shareholders’ meetings to be held for such purpose. At
such meetings, to the extent that directors are being elected, the holders of such Series A Preferred Shares voting as a class shall be entitled solely to elect two members of the Board; and all other directors of the Corporation shall be elected by
the other shareholders of the Corporation entitled to vote in the election of directors. Such voting rights of the holders of such Series A Preferred Shares shall continue until all accumulated and unpaid dividends thereon shall have been paid or
funds sufficient therefor set aside, whereupon all such voting rights of the holders of shares of such series shall cease, subject to being again revived from time to time upon the reoccurrence of the conditions above described as giving rise
thereto. 
  

 A-2 

 At any time when such right to elect directors separately as a class shall have so vested, the
Corporation may, and upon the written request of the holders of record of not less than 20% of the then outstanding total number of shares of all the Series A Preferred Shares having the right to elect directors in such circumstances shall call a
special meeting of holders of such Series A Preferred Shares for the election of directors. In the case of such a written request, such special meeting shall be held within 90 days after the delivery of such request, and, in either case, at the
place and upon the notice provided by law and in the By-laws of the Corporation; provided, that the Corporation shall not be required to call such a special meeting if such request is received less than 120 days before the date fixed for the next
ensuing annual or special meeting of shareholders of the Corporation. Upon the mailing of the notice of such special meeting to the holders of such Series A Preferred Shares, or, if no such meeting be held, then upon the mailing of the notice of the
next annual or special meeting of shareholders for the election of directors, the number of directors of the Corporation shall, ipso facto, be increased to the extent, but only to the extent, necessary to provide sufficient vacancies to enable the
holders of such Series A Preferred Shares to elect the two directors hereinabove provided for, and all such vacancies shall be filled only by vote of the holders of such Series A Preferred Shares as hereinabove provided. Whenever the number of
directors of the Corporation shall have been increased, the number as so increased may thereafter be further increased or decreased in such manner as may be permitted by the By-laws and without the vote of the holders of Series A Preferred Shares,
provided that no such action shall impair the right of the holders of Series A Preferred Shares to elect and to be represented by two directors as herein provided. 
 So long as the holders of Series A Preferred Shares are entitled hereunder to voting rights, any vacancy in the Board caused by the death or resignation of any director elected by the holders of Series A Preferred
Shares, shall, until the next meeting of shareholders for the election of directors, in each case be filled by the remaining director elected by the holders of Series A Preferred Shares having the right to elect directors in such circumstances.

 Upon termination of the voting rights of the holders of any series of Series A Preferred Shares the terms of office of all persons who
shall have been elected directors of the Corporation by vote of the holders of Series A Preferred Shares or by a director elected by such holders shall forthwith terminate. 
 (c) Except as otherwise provided herein, in the Articles of Incorporation of the Corporation or by law, the holders of Series A Preferred Shares and the holders of Common Stock (and the holders of shares of any other
series or class entitled to vote thereon) shall vote together as one class on all matters submitted to a vote of shareholders of the Corporation. 
 Section 3. Reacquired Shares. 
 Any Series A Preferred Shares purchased or otherwise acquired by the Corporation in any
manner whatsoever shall be retired and canceled promptly after the acquisition thereof. All such shares shall upon their cancellation become authorized but unissued Series Preferred Stock and may be reissued as part of a new series of Series
Preferred Stock to be created by resolution or resolutions of the Board. 
  

 A-3 

 Section 4. Liquidation, Dissolution or Winding Up. 
 In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Corporation, the holders of Series A Preferred Shares shall be
entitled to receive the greater of (a) $100.00 per share, plus accrued dividends to the date of distribution, whether or not earned or declared, or (b) an amount per share, subject to the provision for adjustment hereinafter set forth,
equal to 20,000 times the aggregate amount to be distributed per share to holders of Common Stock. In the event the Corporation shall at any time after the Rights Declaration Date (i) declare any dividend on Common Stock payable in shares of
Common Stock, (ii) subdivide the outstanding shares of Common Stock, or (iii) combine the outstanding shares of Common Stock into a smaller number of shares, then in each such case the amount to which holders of Series A Preferred Shares
were entitled immediately prior to such event pursuant to clause (b) of the preceding sentence shall be adjusted by multiplying such amount by a fraction the numerator of which is the number of shares of Common Stock outstanding immediately
after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. 
 Section 5.
Consolidation, Merger, etc. 
 In case the Corporation shall enter into any consolidation, merger, combination or other transaction in
which the shares of Common Stock are exchanged for or changed into other stock or securities, cash and/or any other property, then in any such case the Series A Preferred Shares shall at the same time be similarly exchanged or changed in an amount
per share (subject to the provision for adjustment hereinafter set forth) equal to 20,000 times the aggregate amount of stock, securities, cash and/or any other property (payable in kind), as the case may be, into which or for which each share of
Common Stock is changed or exchanged. In the event the Corporation shall at any time after the Rights Declaration Date (i) declare any dividend on Common Stock payable in shares of Common Stock, (ii) subdivide the outstanding shares of
Common Stock, or (iii) combine the outstanding shares of Common Stock into a smaller number of shares, then in each such case the amount set forth in the preceding sentence with respect to the exchange or change of shares of Series A Preferred
Shares shall be adjusted by multiplying such amount by a fraction the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event. 
 Section 6. No Redemption. 
 The Series A Preferred Shares shall not be redeemable. 
 Section 7. Ranking. 
 The Series A Preferred Shares shall rank junior to all other series of the Corporation’s Series
Preferred Stock as to the payment of dividends and the distribution of assets, unless the terms of any such series shall provide otherwise. 
  

 A-4 

 Section 8. Fractional Shares. 
 Series A Preferred Shares may be issued in fractions of a share which shall entitle the holder, in proportion to such holder’s fractional shares, to exercise voting rights, receive dividends, participate in
distributions and to have the benefit of all other rights of holders of Series A Preferred Shares. 
  

 A-5 

 EXHIBIT B 
 [Form of Rights Certificate] 
 Certificate No.
R-                                        
                         Rights 
 NOT EXERCISABLE AFTER JANUARY 6, 2019 OR AFTER EARLIER REDEMPTION BY THE COMPANY. THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE COMPANY, AT $0.01 PER RIGHT ON THE TERMS SET FORTH IN THE RIGHTS
AGREEMENT. 
 UNDER CERTAIN CIRCUMSTANCES, RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING
PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) AND ANY SUBSEQUENT HOLDER OF SUCH RIGHTS MAY BECOME NULL AND VOID. [THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY OWNED BY A PERSON WHO WAS OR BECAME AN
ACQUIRING PERSON OR AN AFFILIATE OR ASSOCIATE OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT). ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY MAY BECOME NULL AND VOID IN THE CIRCUMSTANCES SPECIFIED
IN SECTION 7(e) OF SUCH AGREEMENT.]* 
  

	*	The bracketed portion of the legend shall be inserted only if applicable and shall replace the preceding sentence. 

  

 B-1 

 SEI INVESTMENTS COMPANY 
 RIGHTS CERTIFICATE 
 This certifies that
                            , or registered assigns, is the registered owner of the number of Rights
set forth above, each of which entitles the owner thereof, subject to the terms, provisions and conditions of the Rights Agreement, dated as of January 6, 2009 (the “Rights Agreement”), between SEI Investments Company, a Pennsylvania
corporation (the “Company”), and American Stock Transfer & Trust Company, LLC, a New York limited liability company (the “Rights Agent”), to purchase from the Company at any time prior to 5:00 P.M. (New York time) on
January 6, 2019 at the office or offices of the Rights Agent designated for such purpose, or its successors as Rights Agent, one twenty-thousandths of a fully paid, nonassessable Series A Junior Participating Preferred Share (the
“Preferred Share”) of the Company, at a purchase price (the “Purchase Price”) of $150.00 per one twenty-thousandths of a Preferred Share (such fraction, a “Preferred Share Fraction”), upon presentation and surrender of
this Rights Certificate with the Form of Election to Purchase and related Certificate duly executed. Except as provided in Sections 11(q) and 13(e) of the Rights Agreement, the Purchase Price shall be paid at the option of the Company, in cash or
Common Stock of the Company (the “Common Shares”) having an equivalent value. The number of Rights evidenced by this Rights Certificate (and the number of Preferred Share Fractions that may be purchased upon exercise thereof) set forth
above, and the Purchase Price per Preferred Share Fraction set forth above, are the number and Purchase Price as of January 6, 2009, based on the Preferred Shares as constituted at such date. 
 Except as otherwise provided in the Rights Agreement, upon the occurrence of any Section 11(a)(ii) Event (as such term is defined in the Rights
Agreement), if the Rights evidenced by this Rights Certificate are beneficially owned by (i) an Acquiring Person or Affiliate or Associate of any Acquiring Person (as such terms are defined in the Rights Agreement), (ii) a transferee of
any Acquiring Person (or any such Affiliate or Associate) who becomes a transferee after the Acquiring Person becomes such, or (iii) under certain circumstances specified in the Rights Agreement, a transferee of a person who, after such
transfer, became an Acquiring Person, or an Affiliate or Associate of an Acquiring Person, such Rights shall become null and void and no holder hereof shall have any right with respect to such Rights from and after the occurrence of any such
Section 11(a)(ii) Event. 
 As provided in the Rights Agreement, the Purchase Price and the number and kind of Preferred Shares or other
securities that may be purchased upon the exercise of the Rights evidenced by this Rights Certificate are subject to modification and adjustment upon the happening of certain events, including Triggering Events and a Section 11(a)(ii) Event.

 This Rights Certificate is subject to all of the terms, covenants and restrictions of the Rights Agreement, which terms, covenants and
restrictions are hereby incorporated herein by reference and made a part hereof and to which Rights Agreement reference is hereby made for a full description of the rights, limitations of rights, obligations, duties and immunities hereunder of the
Rights Agent, the Company and the holders of the Rights Certificates, which limitations of rights include the temporary suspension of the exercisability of such Rights under the specific circumstances set forth in the Rights Agreement. Copies of the
Rights Agreement are on file at the above-mentioned office of the Rights Agent and are also available upon written request to the Company. 
  

 1 

 This Rights Certificate, with or without other Rights Certificates, upon surrender at the office of the
Rights Agent designated for such purpose, may be exchanged for another Rights Certificate or Rights Certificates of like tenor and date evidencing Rights entitling the holder to purchase a like aggregate number of Preferred Share Fractions as the
Rights evidenced by the Rights Certificate or Rights Certificates surrendered shall have entitled such holder to purchase. If this Rights Certificate shall be exercised in part, the holder shall be entitled to receive upon surrender hereof another
Rights Certificate or Rights Certificates for the number of whole Rights not exercised. 
 Subject to the provisions of the Rights Agreement,
the Rights evidenced by this Certificate may be redeemed by the Company at its option at a redemption price of $0.01 per Right at any time prior to the earlier of the Close of Business (as such term is defined in the Rights Agreement) on
(i) the tenth day following the Stock Acquisition Date (as such time period may be extended pursuant to the Rights Agreement) and (ii) the Final Expiration Date. 
 No fractional Preferred Shares will be issued upon the exercise of any Right or Rights evidenced hereby (other than fractions which are integral
multiples of a Preferred Share, which may, as the election of the Company, be evidenced by depositary receipts), but in lieu thereof a cash payment will be made, as provided in the Rights Agreement. 
 No holder of this Rights Certificate shall be entitled to vote or receive dividends or be deemed for any purpose the holder of Preferred Shares or of any
other securities of the Company (including Common Shares) that may at any time be issuable on the exercise hereof, nor shall anything contained in the Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the
rights of a shareholder of the Company or any right to vote for the election of directors or upon any matter submitted to shareholders at any meeting thereof, or to give or withhold consent to any corporate action, or, to receive notice of meetings
or other actions affecting shareholders (except as provided in the Rights Agreement), or to receive dividends or subscription rights, or otherwise, until the Right or Rights evidenced by this Rights Certificate shall have been exercised as provided
in the Rights Agreement. 
 This Rights Certificate shall not be valid or obligatory for any purpose until it shall have been countersigned
by the Rights Agent. 
  

 2 

 WITNESS the facsimile signature of the proper officers of the Company and its corporate seal. 

Dated:
                                        ,
                . 
  

							
	ATTEST	 		 	SEI INVESTMENTS COMPANY
				
	 	 		 	By: 	 	 
	Secretary	 		 		 	Name:
		 		 		 	Title:

  

									
	 Countersigned
 AMERICAN STOCK
TRANSFER & TRUST
 COMPANY, LLC
	 		 		 	
					
	By: 	 	 	 		 		 	
		 	Authorized Signature	 		 		 	

  

 3 

 [Form of Reverse Side of Rights Certificate] 
  

 1 

 FORM OF ASSIGNMENT 
 (To be executed by the registered holder if such 
 holder desires to transfer the Rights Certificate.)

 FOR VALUE RECEIVED
                                         
                hereby sells, assigns and transfers unto 
  
   
  
 (Please print name and address of transferee) 
 this Rights
Certificate, together with all right, title and interest therein, and does hereby irrevocably constitute and appoint
                                        
Attorney, to transfer the within Rights Certificate on the books of the within-named Company, with full power of substitution. 
 Dated:
                                        ,
                . 
  

	
	
	  
	Signature

  

			
		
	Signature Guaranteed: 	 	  
		 	

  

 1 

 Certificate 
 The undersigned hereby certifies by checking the appropriate boxes that: 
 (1) this Rights Certificate
[  ] is [  ] is not being sold, assigned and transferred by or on behalf of a Person who is or was an Acquiring Person or an Affiliate or Associate of any such Acquiring Person as such terms are defined pursuant to the Rights
Agreement); 
 (2) after due inquiry and to the best knowledge of the undersigned, it [  ] did [  ] did not acquire the
Rights evidenced by this Rights Certificate from any Person who is, was or subsequently became an Acquiring Person or an Affiliate or Associate of an Acquiring Person. 
 Dated:
                                        ,
                . 
  

	
	
	  
	Signature

  

			
		
	Signature Guaranteed: 	 	  
		 	

  

 1 

 NOTICE 
 The signatures to the foregoing Assignment and Certificate must correspond to the name as written upon the face of this Rights Certificate in every particular, without alteration or enlargement or any change
whatsoever. 
  

 1 

 FORM OF ELECTION TO PURCHASE 
 (To be executed if holder desires to exercise 
 Rights represented by the Rights Certificate.) 
  

	To:	SEI INVESTMENTS COMPANY: 

 The undersigned hereby
irrevocably elects to exercise                                  Rights represented
by this Rights Certificate to purchase the Preferred Shares issuable upon the exercise of the Rights (or Common Shares or such other securities of the Company or of any other person that may be issuable upon the exercise of the Rights) and requests
that certificates for such shares be issued in the name of and delivered to: 
 Please insert social security or other identifying number 
  
   
  
 (Please print name and address of transferee)

 If such number of Rights shall not be all the Rights evidenced by this Rights Certificate, a new Rights Certificate for the balance of
such Rights shall be registered in the name of and delivered to: 
 Please insert social security or other identifying number: 
  
   
  
 (Please print name and address of transferee)

 Dated:
                                        ,
                . 
  

	
	
	  
	Signature

  

			
		
	Signature Guaranteed: 	 	  
		 	

  

 1 

 Certificate 
 The undersigned hereby certifies by checking the appropriate boxes that 
 (1) the Rights evidenced by this
Rights Certificate [  ] are [  ] are not being exercised by or on behalf of a Person who is or was an Acquiring Person or an Affiliate or Associate of any such Acquiring Person (as such terms are defined pursuant to the Rights
Agreement); 
 (2) after, due inquiry and to the best knowledge of the undersigned, it [  ] did [  ] did not acquire the
Rights evidenced by this Rights Certificate from any Person who is, was or became an Acquiring Person or an Affiliate or Associate of an Acquiring Person. 
 Dated:
                                        ,
                . 
  

	
	
	  
	Signature

  

			
		
	Signature Guaranteed: 	 	  
		 	

  

 1 

 NOTICE 
 The signatures to the foregoing Election to Purchase and Certificate must correspond to the name as written upon the face of this Rights Certificate in every particular, without alteration or enlargement or any change
whatsoever. 
  

 1 

 EXHIBIT C 
 SUMMARY OF RIGHTS TO PURCHASE PREFERRED SHARES 
 On December 16, 2008 the Board of Directors of SEI
Investments Company (the “Company”) declared a dividend distribution of one Right for each outstanding share of Common Stock, $0.01 par value (each, a “Common Share”) of the Company to shareholders of record at the close of
business on January 6, 2009. Each Right entitles the registered holder to purchase from the Company a unit consisting of one twenty-thousandths of a share (a “Unit”) of the Series A Junior Participating Preferred Shares, par value
$0.05 per share, of the Company (the “Preferred Shares”), or a combination of securities and assets of equivalent value, at a Purchase Price of $150.00 per Unit, subject to adjustment. The description and terms of the Rights are set forth
in a Rights Agreement (the “Rights Agreement”) between the Company and American Stock Transfer & Trust Company, as Rights Agent. 
 Initially, ownership of the Rights will be evidenced by the Common Share certificates representing shares then outstanding, and no separate Rights Certificates will be distributed. Generally, the Rights will separate from the Common Shares
and a Distribution Date will occur upon the earlier of (i) 10 business days following a public announcement that a person or group of affiliated or associated persons (an “Acquiring Person”) is the beneficial owner of more than 20% of
the outstanding Common Shares (the “Stock Acquisition Date”), or (ii) 10 business days following the commencement of a tender offer or exchange offer that would result in a person or group beneficially owning 20% or more of the
outstanding Common Shares. Until the Distribution Date, (i) the Rights will be evidenced by the Common Share certificates and will be transferred with and only with such Common Share certificates, (ii) new Common Share certificates issued
after January 6, 2009 will contain a notation incorporating the Rights Agreement by reference and (iii) the surrender for transfer of any certificates for Common Shares outstanding will also constitute the transfer of the Rights associated
with the Common Shares represented by such certificate. 
 The Rights are not exercisable until the Distribution Date and will expire at the
close of business on January 6, 2019, unless earlier redeemed or amended by the Company as described below or unless a transaction under Section 13(d) of the Rights Agreement has occurred. 
 As soon as practicable after the Distribution Date, Rights Certificates will be mailed to holders of record of the Common Shares as of the close of
business on the Distribution Date and, thereafter, the separate Rights Certificates alone will represent the Rights. Except as otherwise determined by the Board of Directors, and except in connection with the exercise of employee stock options or
stock appreciation rights or under any other benefit plan for employees or directors or in connection with the exercise of warrants or conversion of convertible securities, only Common Shares issued prior to the Distribution Date will be issued with
Rights. 
 Except in the circumstances described below, after the Distribution Date each Right will be exercisable into one
twenty-thousandths of a Preferred Share (a “Preferred Share Fraction”). Each Preferred Share Fraction carries voting and dividend rights that are intended to produce the equivalent of one Common Share. The voting and dividend rights of the
Preferred Shares are subject to adjustment in the event of dividends, subdivisions and combinations with respect to the Common Shares of the Company. In lieu of issuing certificates for Preferred Share Fractions which are less than an integral
multiple of one Preferred Share (i.e., 20,000 Preferred Share Fractions), the Company may pay cash representing the current market value of the Preferred Share Fractions. 
  

 1 

 In the event that at any time following the Stock Acquisition Date, (i) the Company is the surviving
corporation in a merger with an Acquiring Person and its Common Shares remain outstanding, (ii) a Person becomes the beneficial owner of more than 50% of the then outstanding Common Shares other than pursuant to a tender offer that provides
fair value to all shareholders, (iii) a person becomes, after January 6, 2009, the beneficial ownership of 20% or more of the Common Shares then outstanding, (iv) an Acquiring Person engages in one or more “self-dealing”
transactions as set forth in the Rights Agreement, or (v) during such time as there is an Acquiring Person an event occurs that results in such Acquiring Person’s ownership interest being increased by more than 1% (e.g., a reverse stock
split), each holder of a Right will thereafter have the right to receive, upon exercise, Common Shares (or, in certain circumstances, cash, property or other securities of the Company) having a value equal to two times the exercise price of the
Right. In lieu of requiring payment of the Purchase Price upon exercise of the Rights following any such event, the Company may permit the holders simply to surrender the Rights, in which event they will be entitled to receive Common Shares (and
other property, as the case may be) with a value of 50% of what could be purchased by payment of the full Purchase Price. Notwithstanding any of the foregoing, following the occurrence of any of the events set forth in clauses (i), (ii), (iii),
(iv) or (v) of this paragraph, all Rights that are, or (under certain circumstances specified in the Rights Agreement) were, beneficially owned by any Acquiring Person who was involved in the transaction giving rise to any such event will
be null and void. However, Rights are not exercisable following the occurrence of any of the events set forth above until such time as the Rights are no longer redeemable by the Company as set forth below. 
 For example, at an exercise price of $150.00 per Right, each Right not otherwise voided following an event set forth in the preceding paragraph would
entitle its holder to purchase $300.00 worth of Common Shares (or other consideration, as noted above) for $150.00. Assuming that the Common Shares had a per share value of $75.00 at such time, the holder of each valid Right would be entitled to
purchase four Common Shares for $150.00. Alternatively, the Company could permit the holder to surrender each Right in exchange for stock or cash equivalent to two Common Shares (with a value of $150.00) without the payment of any consideration
other than the surrender of the Right. 
 In the event that, at any time following the Stock Acquisition Date, (i) the Company is
acquired in a merger or other business combination transaction in which the Company is not the surviving corporation (other than a merger that is described in, or that follows a tender offer or exchange offer described in, the second preceding
paragraph), or (ii) 50% or more of the Company’s assets or earning power is sold or transferred, each holder of a Right (except Rights that previously have been voided as set forth above) shall thereafter have the right to receive, upon
exercise, common shares of the acquiring company having a value equal to two times the exercise price of the Right. Again, provision is made to permit surrender of the Rights in exchange for one-half of the value otherwise purchasable. The events
set forth in this paragraph and in the second preceding paragraph are referred to as the “Triggering Events.” 
  

 2 

 The Purchase Price payable, and the number of Units of Preferred Shares or other securities or property
issuable upon exercise of the Rights are subject to adjustment from time to time to prevent dilution (i) in the event of a stock dividend on, or a subdivision, combination or reclassification of, the Preferred Shares, (ii) if holders of
the Preferred Shares are granted certain rights or warrants to subscribe for Preferred Shares or convertible securities at less than the current market price of the Preferred Shares, or (iii) upon the distribution to holders of the Preferred
Shares of evidences of indebtedness or assets (excluding regular quarterly dividends) or of subscription rights or warrants (other than those referred to above). 
 With certain exceptions, no adjustment in the Purchase Price will be required until cumulative adjustments amount to at least 1% of the Purchase Price. No fractional Units will be issued and, in lieu thereof, an
adjustment in cash will be made based on the market price of the Preferred Shares on the last trading date prior to the date of exercise. 
 At any time until ten days following the Stock Acquisition Date, the Company may redeem the Rights in whole, but not in part, at a price of $0.01 per Right. That ten day redemption period may be extended by the Board of Directors so long as
the Rights are still redeemable. Immediately upon the action of the Board of Directors ordering redemption of the Rights, the Rights will terminate and the only right of the holders of Rights will be to receive the $0.01 redemption price.

 Until a Right is exercised, the holder thereof, as such, will have no rights as a shareholder of the Company, including, without
limitation, the right to vote or to receive dividends. While the distribution of the Rights will not be taxable to shareholders or to the Company, shareholders may, depending upon the circumstances, recognize taxable income in the event that the
Rights become exercisable for Preferred Shares (or other consideration) of the Company or for common shares of the acquiring company as set forth above. 
 Any of the provisions of the Rights Agreement may be amended by the Board of Directors of the Company prior to the Distribution Date. After the Distribution Date, the provisions of the Rights Agreement may be amended
by the Board in order to cure any ambiguity, to make changes that do not adversely affect the interests of holders of Rights (excluding the interests of any Acquiring Person), or to shorten or lengthen any time period under the Rights Agreement;
provided, however, that no amendment to adjust the time period governing redemption shall be made at such time as the Rights are not redeemable. 
 A copy of the Rights Agreement is being filed with the Securities and Exchange Commission as an Exhibit to a Registration Statement on Form 8-A. A copy of the Rights Agreement is available free of charge from the Company. This summary
description of the Rights does not purport to be complete and is qualified in its entirety by reference to the Rights Agreement, which is incorporated herein by reference. 
  

 3Receivables Purchase Agreement

 Exhibit 10.1 
 EXECUTION COPY 
 RECEIVABLES PURCHASE AGREEMENT 
 dated as of December 31, 2008 
 among

 AILIC RECEIVABLES CORPORATION, 
 as Seller, 
 AMERICAN INCOME LIFE INSURANCE COMPANY, 
 as Servicer, 
 TMK Re, Ltd, 
 as Purchaser 

 TABLE OF CONTENTS 
  

					
	PRELIMINARY STATEMENTS	  	-1-
			
	ARTICLE I	  		  	
	 PURCHASE ARRANGEMENTS
	  	-1-
	 Section 1.1
	  	Purchase Facility	  	-1-
	 Section 1.2
	  	Increases	  	-1-
	 Section 1.3
	  	Decreases	  	-1-
	 Section 1.4
	  	Payment Requirements	  	-1-
		
	ARTICLE II	  	
	 PAYMENTS AND COLLECTIONS
	  	-2-
	 Section 2.1
	  	Payments	  	-2-
	 Section 2.2
	  	Collections Prior to Amortization	  	-2-
	 Section 2.3
	  	Collections Following Amortization	  	-3-
	 Section 2.4
	  	Application of Collections	  	-3-
	 Section 2.5
	  	Payment Rescission	  	-3-
	 Section 2.6
	  	Aggregate Purchaser Interest	  	-4-
	 Section 2.7
	  	Application of Collections in Respect of Premium Interest	  	-4-
		
	ARTICLE III	  	
	 REPRESENTATIONS AND WARRANTIES
	  	-4-
	 Section 3.1
	  	Representations and Warranties of Seller Parties	  	-4-
	 Section 3.2
	  	Purchaser Representations and Warranties	  	-8-
		
	ARTICLE IV	  	
	 CONDITIONS OF PURCHASES
	  	-9-
	 Section 4.1
	  	Conditions Precedent to Effectiveness of this Agreement	  	-9-
	 Section 4.2
	  	Conditions Precedent to All Purchases and Reinvestments	  	-9-
		
	ARTICLE V	  	
	 COVENANTS
	  	-10-
	 Section 5.1
	  	Affirmative Covenants of the Seller Parties	  	-10-
	 Section 5.2
	  	Negative Covenants of the Seller Parties	  	-17-
	 Section 5.3
	  	Covenants Relating to Premium Interest	  	-18-
		
	ARTICLE VI	  	
	 ADMINISTRATION AND COLLECTION
	  	-19-
	 Section 6.1
	  	Designation of Servicer	  	-19-
	 Section 6.2
	  	Duties of Servicer	  	-20-
	 Section 6.3
	  	Collection Rights	  	-21-

  

 i 

					
	 Section 6.4
	  	Responsibilities of Seller	  	-21-
	 Section 6.5
	  	Reports	  	-21-
	 Section 6.6
	  	Servicing Fees	  	-22-
		
	ARTICLE VII	  	
	 AMORTIZATION EVENTS
	  	-22-
	 Section 7.1
	  	Amortization Events	  	-22-
	 Section 7.2
	  	Remedies	  	-24-
		
	ARTICLE VIII	  	
	 INDEMNIFICATION
	  	-25-
	 Section 8.1
	  	Indemnities by the Seller Parties	  	-25-
	 Section 8.2
	  	Other Costs and Expenses	  	-27-
		
	ARTICLE IX	  	
	 ASSIGNMENTS; TERMINATION
	  	-28-
	 Section 9.1
	  	Assignments	  	-28-
	 Section 9.2
	  	Termination	  	-28-
		
	ARTICLE X	  	
	 MISCELLANEOUS
	  	-28-
	 Section 10.1
	  	Waivers and Amendments	  	-28-
	 Section 10.2
	  	Notices	  	-29-
	 Section 10.3
	  	Protection of Ownership Interests of the Purchasers	  	-29-
	 Section 10.4
	  	Confidentiality	  	-30-
	 Section 10.5
	  	Limitation of Liability	  	-30-
	 Section 10.6
	  	CHOICE OF LAW	  	-30-
	 Section 10.7
	  	CONSENT TO JURISDICTION	  	-30-
	 Section 10.8
	  	WAIVER OF JURY TRIAL	  	-31-
	 Section 10.9
	  	Integration; Binding Effect; Survival of Terms	  	-31-
	 Section 10.10
	  	Counterparts; Severability; Section References	  	-31-
	 Section 10.11
	  	Characterization	  	-32-

  

 ii 

 RECEIVABLES PURCHASE AGREEMENT 
 This Receivables Purchase Agreement dated as of December 31, 2008 is among AILIC RECEIVABLES CORPORATION, a Delaware corporation
(“Seller”), AMERICAN INCOME LIFE INSURANCE COMPANY, an insurance company organized under the laws of Indiana (“AIL”), as the initial Servicer (the Servicer together with the Seller, the “Seller
Parties” and each a “Seller Party”), and TMK Re Ltd., a Bermuda reinsurance corporation (“Purchaser”). Unless defined elsewhere herein, capitalized terms used in this Agreement shall have the meanings assigned to
such terms in Exhibit I. 
 ARTICLE I 
 PURCHASE ARRANGEMENTS 
 Section 1.1 Purchase Facility. Upon the terms and subject to the
conditions hereof, Seller may, at its option, sell and assign Purchaser Interests to the Purchaser. In accordance with the terms and conditions set forth herein, Purchaser shall purchase Purchaser Interests from time to time in an aggregate amount
not to exceed the Purchase Limit during the period from the date hereof to but not including the Amortization Date. 
 Section 1.2
Increases. Seller shall provide the Purchaser with at least two Business Days’ prior written notice of each Incremental Purchase . Such notice (a “Purchase Notice”) shall be in the form set forth as Exhibit II
hereto. Each Purchase Notice shall be subject to Section 6.2 hereof and, except as set forth below, shall be irrevocable and shall specify the requested Purchase Price (which amount shall not be less than $500,000, or an increment of
$100,000 in excess thereof) and shall not be greater than the Commitment Availability as of the date of the proposed purchase, and the date of purchase (which shall be a Settlement Date). On the date of each Purchase, upon satisfaction of the
applicable conditions precedent set forth in Article VI, Purchaser shall deposit to the Facility Account, in immediately available funds, no later than 12:00 noon (Central time), an amount equal to the aggregate Purchase Price of the
Purchaser Interests Purchaser is then purchasing. 
 Section 1.3 Decreases. Seller shall provide the Purchaser with prior written
notice in conformity with the Required Notice Period of any reduction from Collections requested by Seller of Capital (a “Reduction Notice”). Such Reduction Notice shall designate (i) the date (the “Proposed Reduction
Date”) upon which any such reduction of Capital shall occur (which date shall give effect to the applicable Required Notice Period), and (ii) the aggregate amount of Capital to be reduced which shall be applied to the Purchaser
Interests of Purchaser in accordance with the amount of Capital (if any) owing to Purchaser (the “Aggregate Reduction”). Only one (1) Reduction Notice shall be outstanding at any time. Notwithstanding the foregoing, the
Aggregate Reduction will not be made if the Amortization Date shall have occurred for any reason on or prior to the Proposed Reduction Date. 
 Section 1.4 Payment Requirements. All amounts to be paid or deposited by any Seller Party pursuant to any provision of this Agreement shall be paid or deposited in accordance with the terms hereof no later than 11:00 a.m.
(Central time) on the day 

  

 1 

 
when due in immediately available funds, and if not received before 11:00 a.m. (Central time) shall be deemed to be received on the next succeeding Business
Day. If such amounts are payable to Purchaser they shall be paid until otherwise notified by the Purchaser. If any amount hereunder shall be payable on a day which is not a Business Day, such amount shall be payable on the next succeeding Business
Day. 
 ARTICLE II 
 PAYMENTS AND
COLLECTIONS 
 Section 2.1 Payments. Notwithstanding any limitation on recourse contained in this Agreement, Seller shall
immediately pay to the Purchaser when due, on a full recourse basis, (i) such fees as set forth in the Fee Letter, (ii) all amounts payable as Yield, (iii) all amounts payable as Deemed Collections (which shall be applied to reduce
outstanding Capital hereunder in accordance with Sections 2.2 and 2.3 hereof), (iv) all amounts payable pursuant to Section 2.6, (v) all amounts payable pursuant to Article X, if any, (vi) all Servicer
costs and expenses in connection with servicing, administering and collecting the Receivables, and (viii) all Default Fees (collectively, the “Obligations”). If any Person fails to pay any of the Obligations when due, such
Person agrees to pay, on demand, the Default Fee in respect thereof until paid. Notwithstanding the foregoing, no provision of this Agreement or the fee letter between Seller and Purchaser shall require the payment or permit the collection of any
amounts hereunder in excess of the maximum permitted by applicable law. If at any time Seller receives any Collections or is deemed to receive any Collections, Seller shall immediately pay such Collections or Deemed Collections to the Servicer for
application toward the purchase of new Receivables or for handling as otherwise provided herein and, at all times prior to such payment, such Collections shall be held in trust by Seller for the exclusive benefit of the Purchaser. 
 Section 2.2 Collections Prior to Amortization. Prior to the Amortization Date, any Collections and/or Deemed Collections received by the
Servicer (after the initial purchase of a Purchaser Interest hereunder and on or prior to the Amortization Date of such Purchaser Interest) shall be set aside and held in trust by the Servicer for the payment of any accrued and unpaid Aggregate
Unpaids up to the amount necessary to fund such Aggregate Unpaids. If at any time any Collections and/or Deemed Collections are received by the Servicer prior to the Amortization Date, Seller hereby requests and the Purchaser hereby agrees to make,
simultaneously with such receipt, a reinvestment (each a “Reinvestment”) with that portion of each and every Collection received by the Servicer that is part of any Purchaser Interest, such that after giving effect to such
Reinvestment, the amount of Capital of such Purchaser Interest immediately after such receipt and corresponding Reinvestment shall be equal to the amount of Capital immediately prior to such receipt. On each Settlement Date prior to the occurrence
of the Amortization Date, the Servicer shall remit to the Purchaser’s account the amounts set aside during the preceding Settlement Period and apply such amounts (if not previously paid in accordance with Section 2.1) to reduce
other Obligations. If such other Obligations shall be reduced to zero, any additional Collections and/or Deemed Collections received by the Servicer shall (i) if applicable, be remitted to the Purchaser’s account no later than 11:00 a.m.
(Central time) to the extent required to fund any Aggregate Reduction on such Settlement Date and (ii) thereafter be remitted from the Servicer to Seller on such Settlement Date. 
  

 2 

 Section 2.3 Collections Following Amortization. On the Amortization Date and on each day
thereafter, the Servicer shall set aside and hold in trust, for the holder of each Purchaser Interest, all Collections and Deemed Collections received on such day (together with all Collections and Deemed Collections then held in trust pursuant to
Section 2.2 or this Section 2.3). On and after the Amortization Date, the Servicer shall, at any time upon the request from time to time by (or pursuant to standing instructions from) the Agent (i) remit to the
Agent’s account the amounts set aside pursuant to the preceding sentence, and (ii) apply such amounts to reduce the Capital associated with each such Purchaser Interest and any other Aggregate Unpaids until such time as the Aggregate
Unpaids are reduced to zero. 
 Section 2.4 Application of Collections. If there shall be insufficient funds on deposit for the
Servicer to distribute funds in payment in full of the aforementioned amounts pursuant to Section 2.2 or 2.3 (as applicable), the Servicer shall distribute funds: 
 first, (i) if AIL or one of its Affiliates is then the Servicer and no Amortization Event or Potential Amortization Event
shall have occurred and then be continuing, to the payment of the accrued and unpaid Servicing Fee, and (ii) if neither AIL nor any of its Affiliates is then the Servicer, to the payment of the Servicer’s reasonable out-of-pocket costs and
expenses in connection with servicing, administering and collecting the Receivables, 
 second, to the reimbursement of
the Purchaser’s costs of collection and enforcement of this Agreement, 
 third, to the ratable payment of all
accrued and unpaid (i) fees under the fee letter between Seller and Purchaser and (ii) amounts payable under Article VIII, 
 fourth, to the ratable payment of all other unpaid Obligations, provided that to the extent such Obligations relate to the payment of Servicer costs and expenses when Seller or one of its Affiliates is
acting as the Servicer, such costs and expenses will not be paid until after the payment in full of all other Obligations, 
 fifth, (if applicable) in reduction of Capital of the Purchaser Interests, 
 sixth, to the payment of
any accrued and unpaid Servicing Fee (unless such fee shall have been paid in accordance with first above), and 
 seventh, after the Aggregate Unpaids have been indefeasibly reduced to zero, to Seller. 
 Collections applied to the payment
of Aggregate Unpaids shall be distributed in accordance with the aforementioned provisions. 
 Section 2.5 Payment Rescission. No
payment of any of the Aggregate Unpaids shall be considered paid or applied hereunder to the extent that, at any time, all or any portion of such payment or application is rescinded by application of law or judicial authority, or must otherwise be
returned or refunded for any reason. Seller shall remain obligated for the amount of any 

  

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payment or application so rescinded, returned or refunded, and shall promptly pay to the Purchaser (for application to the Person or Persons who suffered
such rescission, return or refund) the full amount thereof, plus the Default Fee from the date of any such rescission, return or refunding. 
 Section 2.6 Aggregate Purchaser Interest. Seller shall ensure that the Purchaser Interests of the Purchaser shall at no time exceed in the aggregate 100%. If the aggregate of the Purchaser Interests of the Purchaser exceeds
100%, Seller shall immediately pay to the Purchaser an amount to be applied to reduce the Capital of the Purchaser Interests, such that after giving effect to such payment the aggregate of the Purchaser Interests equals or is less than 100%.

 Section 2.7 Application of Collections in respect of Premium Interest. Upon receipt by the Servicer, for the benefit of the
Purchaser, of any amount in immediately available funds constituting a portion of any Premium, the Servicer is instructed, unless and until otherwise directed by the Purchaser, to apply such amount toward a reduction in the Outstanding Balance of
the related Receivable, such application (a “Premium Application”) to be based upon such information as may then be available to the Servicer and as may be determined by the Servicer to be true, accurate and correct in respect of
the Outstanding Balance of such Receivable and the commissions then owing to the Obligor on such Receivable and arising by reason of the receipt by AIL of such Premium. Upon and to the extent of any Premium Application in accordance with the
foregoing, (i) the Purchaser waives any subrogation rights arising by statute or otherwise in respect of any commissions due from AIL to the Obligor on the affected Receivable, (ii) the Servicer shall be permitted to provide AIL and the
Seller such evidence as AIL and the Seller may reasonably request to the effect that, by reason of such Premium Application, the affected Obligor shall have received the economic benefit of payment to it of any commission due in connection with the
receipt by AIL of the related Premium and (iii) the obligation of a Torchmark Entity under the second sentence of Section 5.1(j) to remit to the Servicer an amount calculated in reference to the corresponding commission payable to
such Obligor shall be deemed satisfied. This Section 2.7 merely sets forth the anticipated accounting as among AIL, the Seller, and the Purchaser in relation to any Premium (or portion thereof) remitted to the Servicer for the benefit of
the Purchaser. Nothing contained herein or otherwise in this Agreement shall give rise to, or be deemed to be an assumption of, any obligation or liability on the part of the Purchaser, or any of its successors or assigns, to pay any commission, fee
or other remuneration, cost or expense to any Obligor or any member of any Agent-Hierarchy in connection with the receipt or application by AIL or any other Person of any Premium or any other aspect of the arrangements in effect from time to time
between AIL and any such Obligor or Agent-Hierarchy. 
 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES 
 Section 3.1 Representations and Warranties of
Seller Parties. Each Seller Party hereby represents and warrants to the Agent and the Purchasers that: 
 (a) Corporate Existence and
Power. Each Torchmark Entity is a corporation duly organized, validly existing and in good standing under the laws of its state of incorporation. Each Torchmark Entity is duly qualified to do business and is in good 

  

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standing as a foreign corporation, and has and holds all corporate power and all governmental licenses, authorizations, consents and approvals required to
carry on its business in each jurisdiction in which its business is conducted, except where the failure to so qualify would not have a Material Adverse Effect . AIL is duly qualified and licensed as an insurance company in each state in which
Receivables are originated. 
 (b) Power and Authority; Due Authorization Execution and Delivery. The execution and delivery by each
Torchmark Entity of this Agreement and each other Transaction Document to which it is a party, and the performance of its obligations hereunder and thereunder and, in the case of Seller, Seller’s use of the proceeds of purchases made hereunder,
are within its respective corporate powers and authority and have been duly authorized by all necessary corporate action on its part. This Agreement and each other Transaction Document to which each Torchmark Entity is a party has been duly executed
and delivered by such Torchmark Entity. 
 (c) No Conflict. The execution and delivery by each Torchmark Entity of this Agreement and
each other Transaction Document to which it is a party, and the performance of its obligations hereunder and thereunder do not contravene or violate (i) its certificate or articles of incorporation or by-laws, (ii) any law, rule or
regulation applicable to it, (iii) any restrictions under any material agreement, contract or instrument to which it is a party or by which it or any of its property is bound, or (iv) any order, writ, judgment, award, injunction or decree
binding on or affecting it or its property, and do not result in the creation or imposition of any Adverse Claim on assets of such Torchmark Entity or its Subsidiaries (except as created hereunder) and no transaction contemplated hereby requires
compliance with any bulk sales act or similar law. 
 (d) Governmental Authorization. Other than the filing of any financing
statements required hereunder, no authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for the due execution and delivery by any Torchmark Entity of this Agreement
or any other Transaction Document to which it is a party or the performance of its obligations hereunder and thereunder. 
 (e) Actions,
Suits. There are no actions, suits or proceedings pending, or to the best of such Seller Party’s knowledge, threatened, against or affecting any Torchmark Entity, or any of its properties, in or before any court, arbitrator or other body,
that could reasonably be expected to have a Material Adverse Effect. No Torchmark Entity is in default with respect to any order of any court, arbitrator or governmental body. 
 (f) Binding Effect. This Agreement and each other Transaction Document to which any Torchmark Entity is a party constitute the legal, valid and
binding obligations of such Torchmark Entity enforceable against such Torchmark Entity in accordance with their respective terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization or other similar laws
relating to or limiting creditors’ rights generally and by general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law). 
  

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 (g) Accuracy of Information. All information heretofore furnished by any Torchmark Entity or any
of its Affiliates to the Purchaser for purposes of or in connection with this Agreement, any of the other Transaction Documents or any transaction contemplated hereby or thereby is, and all such information hereafter furnished by such Torchmark
Entity or any of its Affiliates to the Purchaser will be, true and accurate in every material respect on the date such information is stated or certified and does not and will not contain any material misstatement of fact or omit to state a material
fact or any fact necessary to make the statements contained therein not misleading. 
 (h) Use of Proceeds. No proceeds of any
purchase hereunder will be used (i) to purchase “margin stock” as defined in, or otherwise for a purpose that violates or would be inconsistent with, Regulation T, U or X promulgated by the Board of Governors of the Federal Reserve
System from time to time or (ii) to acquire any security in any transaction which is subject to Section 13 or 14 of the Securities Exchange Act of 1934, as amended. 
 (i) Good Title. Immediately prior to each purchase hereunder, Seller shall be the legal and beneficial owner of the Receivables and Related
Security with respect thereto, free and clear of any Adverse Claim, except as created by the Transaction Documents. There have been duly filed all financing statements or other similar instruments or documents necessary under the UCC (or any
comparable law) of all appropriate jurisdictions to perfect Seller’s ownership interest in each Receivable, its Collections and the Related Security. 
 (j) Perfection. This Agreement, together with the filing of the financing statements contemplated hereby, is effective to, and shall, upon each purchase hereunder, transfer to the Purchaser (and the Purchaser
shall acquire from Seller) a valid and perfected first priority undivided percentage ownership interest in each Receivable existing or hereafter arising and in the Related Security and Collections with respect thereto, free and clear of any Adverse
Claim, except as created by the Transactions Documents. There have been duly filed all financing statements or other similar instruments or documents necessary under the UCC (or any comparable law) of all appropriate jurisdictions to perfect the
Purchaser’s ownership interest in the Receivables, the Related Security and the Collections. 
 (k) Places of Business. The
principal places of business and chief executive offices of each Torchmark Entity and the offices where it keeps all of its Records are located at the respective address(es) listed on Exhibit III or such other locations of which the Purchaser
has been notified in accordance with Section 5.2(a) in jurisdictions where all action required by Section 14.4(a) has been taken and completed. Each Torchmark Entity’s Federal Employer Identification Number is correctly
set forth on Exhibit III. 
 (l) Collections. The conditions and requirements set forth in Section 5.1(j) and in
subsections (b), (c) and (e) of Section 6.2 have at all times been satisfied and duly performed. 
 (m) Material Adverse Effect. (i) The initial Servicer represents and warrants that since December 31, 2008 no event has occurred that would have a material adverse effect on the financial condition or operations of the
initial Servicer and its Subsidiaries or the ability of the initial Servicer to perform its obligations under this Agreement and (ii) Seller represents and warrants 

  

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that since the date of this Agreement, no event has occurred that would have a material adverse effect on (A) the financial condition or operations of
Seller, (B) the ability of Seller to perform its obligations under this Agreement, or (C) the collectability of the Receivables or Related Security generally or of any material portion of the Receivables or Related Security. 
 (n) Names. In the past five (5) years, (i) Seller has not used any corporate names, trade names or assumed names other than the name in
which it has executed this Agreement and (ii) AIL has not used any corporate names, trade names or assumed names other than as disclosed on Exhibit III hereto. 
 (o) Ownership of Torchmark Entities. Torchmark owns, directly or indirectly, 100% of the issued and outstanding capital stock of each of AIL and
Seller, in each case, free and clear of any Adverse Claim. AIL owns directly 100% of the issued and outstanding capital stock of Seller, free and clear of any Adverse Claim. Such capital stock in each case is validly issued, fully paid and
nonassessable, and there are no options, warrants or other rights to acquire securities of Seller. 
 (p) Not a Holding Company or an
Investment Company. No Torchmark Entity is (i) a “holding company” or a “subsidiary holding company” of a “holding company” within the meaning of the Public Utility Holding Company Act of 1935, as amended, or
any successor statute or (ii) an “investment company” within the meaning of the Investment Company Act of 1940, as amended, or any successor statute. 
 (q) Compliance with Law. Each Torchmark Entity has complied in all material respects with all applicable laws, rules, regulations, orders, writs, judgments, injunctions, decrees or awards to which it may be
subject. Each Receivable, together with the Contract related thereto, does not contravene any laws, rules or regulations applicable thereto (including, without limitation, laws, rules and regulations relating to truth in lending, fair
credit billing, fair credit reporting, equal credit opportunity, fair debt collection practices and privacy), and no part of such Contract is in violation of any such law, rule or regulation with respect to which any noncompliance, separately or in
the aggregate, is reasonably likely to have a Material Adverse Effect. 
 (r) Compliance with Credit and Collection Policy. AIL and
Seller have complied in all material respects with the Credit and Collection Policy with regard to each Receivable and the related Contract, and neither AIL nor Seller has made any change to the Credit and Collection Policy, except such material
change as to which the Agent has been notified in accordance with Section 5.1(a)(v). 
 (s) Payments to AIL. With respect
to each Receivable transferred to Seller under the Receivables Sale Agreement, Seller has given reasonably equivalent value to AIL in consideration therefor and such transfer was not made for or on account of an antecedent debt. No transfer by AIL
of any Receivable under the Receivables Sale Agreement is or may be voidable under any section of the Bankruptcy Reform Act of 1978 (11 U.S.C. §§ 101 et seq.), as amended. 
  

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 (t) Enforceability of Contracts. Each Contract with respect to each Receivable is effective to
create, and has created, a legal, valid and binding obligation of the related Obligor (including each Obligor, whether a member of an Agent-Hierarchy or otherwise, which is a guarantor of such Receivable) to pay the Outstanding Balance of the
Receivable created thereunder and any accrued interest thereon, enforceable against such Obligor in accordance with its terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization or other similar laws
relating to or limiting creditors’ rights generally and by general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law). 
 (u) Eligible Receivables. Each Receivable included in the Net Receivables Balance as an Eligible Receivable was on the date of its purchase under
the Receivables Sale Agreement an Eligible Receivable. 
 (v) Net Receivables Balance. The Seller has determined that, immediately
after giving effect to each purchase hereunder, the Net Receivables Balance is at least equal to the aggregate Capital of all the Purchaser Interests. 
 (w) Accounting. The manner in which each Torchmark Entity accounts for the transactions contemplated by this Agreement and the Receivables Sale Agreement does not jeopardize the true sale analysis. 

(x) Compliance with Underwriting Guidelines. AIL has complied in all material respects with its underwriting guidelines in issuing or agreeing
to issue each Insurance Product in connection with which a Receivable shall have arisen, and in electing to extend the credit represented by such Receivable to the applicable Obligor, and AIL has not made any material change to such underwriting
guidelines except such change as to which the Agent has been notified in accordance with Section 5.1(a)(v). 
 (y) Compliance
with Representations. On and as of the date of each purchase of a Purchaser Interest hereunder and the date of each Reinvestment hereunder, each Seller Party hereby represents and warrants that all of the other representations and warranties
made by it set forth in this Section 3.1 are true and correct on and as of the date of such purchase or Reinvestment (and after giving effect to such purchase or Reinvestment) as though made on and as of each such date. 
 Section 3.2 Purchaser Representations and Warranties. Purchaser hereby represents and warrants to the Seller Parties that: 
 (a) Existence and Power. Purchaser is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of
incorporation or organization, and has all corporate power to perform its obligations hereunder. 
 (b) No Conflict. The execution
and delivery by Purchaser of this Agreement and the performance of its obligations hereunder are within its corporate powers, have been duly authorized by all necessary corporate action, do not contravene or violate (i) its certificate or
articles of incorporation or association or by-laws, (ii) any law, rule or regulation applicable to it, (iii) any 

  

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restrictions under any agreement, contract or instrument to which it is a party or any of its property is bound, or (iv) any order, writ, judgment,
award, injunction or decree binding on or affecting it or its property, and do not result in the creation or imposition of any Adverse Claim on its assets. This Agreement has been duly authorized, executed and delivered by the Purchaser. 

(c) Governmental Authorization. No authorization or approval or other action by, and no notice to or filing with, any governmental authority
or regulatory body is required for the due execution and delivery by the Purchaser of this Agreement and the performance of its obligations hereunder. 
 (d) Binding Effect. This Agreement constitutes the legal, valid and binding obligation of the Purchaser enforceable against the Purchaser in accordance with its terms, except as such enforcement may be limited
by applicable bankruptcy, insolvency, reorganization or other similar laws relating to or limiting creditors’ rights generally and by general principles of equity (regardless of whether such enforcement is sought in a proceeding in equity or at
law). 
 ARTICLE IV 
 CONDITIONS OF
PURCHASES 
 Section 4.1 Conditions Precedent to Effectiveness of this Agreement. This Agreement shall become effective upon
satisfaction of the conditions precedent that (a) the Purchaser shall have received on or before December 31, 2008 those documents listed on Schedule A and (b) the Agent shall have received all fees and expenses required to be
paid on or prior to such date pursuant to the terms of this Agreement. 
 Section 4.2 Conditions Precedent to All Purchases and
Reinvestments. Each purchase of a Purchaser Interest and each Reinvestment shall be subject to the further conditions precedent that (a) in the case of each such purchase or Reinvestment: (i) the Servicer shall have delivered to the
Purchaser on or prior to the date of such purchase, in form and substance satisfactory to the Purchaser, all Monthly Reports as and when due under Section 6.5; and (ii) upon the Purchaser’s request, the Servicer shall have
delivered to the Purchaser at least three (3) days prior to such purchase or Reinvestment an interim Monthly Report showing the amount of Eligible Receivables (b) the Amortization Date nor the Liquidity Termination Date shall have
occurred; (c) on the date of each such purchase or Reinvestment, the following statements shall be true (and acceptance of the proceeds of such purchase or Reinvestment shall be deemed a representation and warranty by Seller that such
statements are then true): 
  

	 	(i)	the representations and warranties set forth in Section 3.1 are true and correct on and as of the date of such purchase or Reinvestment as though made on and as of such
date; 

  

	 	(ii)	no event has occurred, or would result from such purchase or Reinvestment, that would constitute an Amortization Event or a Potential Amortization Event; and

  

 9 

	 	(iii)	the aggregate Capital of all Purchaser Interests does not exceed the Purchase Limit; 

 and (d) the Purchaser shall have received such other approvals, opinions or documents as it may reasonably request. It is expressly understood that each Reinvestment shall, unless otherwise directed by the
Purchaser, occur automatically on each day that the Servicer shall receive any Collections without the requirement that any further action be taken on the part of any Person and notwithstanding the failure of Seller to satisfy any of the foregoing
conditions precedent in respect of such Reinvestment. The failure of Seller to satisfy any of the foregoing conditions precedent in respect of any Reinvestment shall give rise to a right of the Purchaser, which right may be exercised at any time on
demand of the Purchaser, to rescind the related purchase and direct Seller to pay to the Purchaser an amount equal to the Collections that shall have been applied to the affected Reinvestment. 
 ARTICLE V 
 COVENANTS 
 Section 5.1 Affirmative Covenants of the Seller Parties. Until the date on which the Aggregate Unpaids have been indefeasibly paid in full
and this Agreement terminates in accordance with its terms, each Seller Party hereby covenants, as to itself, as set forth below: 
 (a)
Financial Reporting. Such Seller Party will maintain, for itself and each of its Subsidiaries, a system of accounting established and administered in accordance with generally accepted accounting principles, and furnish to the Purchaser:

 (i) Annual Reporting. Within 
 (A) 180 days after the close of each fiscal year of AIL, audited, unqualified financial statements (which shall include balance sheets,
statements of income and retained earnings and a statement of cash flows) for AIL for such fiscal year certified by nationally recognized independent public accountants; 
 (B) 90 days after the close of each fiscal year of Seller, unaudited financial statements (which shall include balance sheets, statements
of income and retained earnings and a statement of cash flows) for Seller for such fiscal year, certified by an Authorized Officer; and 
 (C) 90 days after the close of each fiscal year of AIL, an annual statement of the conditions and affairs of AIL prepared in accordance with NAIC annual statement instructions and accounting practices and procedures
for, and as filed with, the Insurance Department of its respective state of organization, all certified by an Authorized Officer thereof. 
  

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 (ii) Quarterly Reporting. Within 45 days after the close of the first three
(3) quarterly periods of each of the Servicer’s fiscal years, 
 (A) in respect of each of AIL and Seller, balance
sheets of each such Person as at the close of each such period and statements of income and retained earnings and a statement of cash flows for each such Person for the period from the beginning of such fiscal year to the end of such quarter, all
certified by an Authorized Officer thereof; and 
 (B) in respect of AIL, a quarterly statement of the conditions and affairs
of AIL prepared in accordance with NAIC quarterly statement instructions and accounting practices and procedures for, and as filed with, the Insurance Department of its respective state of organization, all certified by an Authorized Officer
thereof. 
 (iii) Compliance Certificate. Together with the financial statements required hereunder, a compliance
certificate in substantially the form of Exhibit IV signed by an Authorized Officer of each of AIL and Seller, and dated the date of such annual financial statement or such quarterly financial statement, as the case may be. 
 (iv) Copies of Notices. Promptly upon its receipt of any notice, request for consent, financial statements, certification, report
or other communication under or in connection with any Transaction Document from any Person other than the Purchaser, copies of the same. 
 (v) Change in Credit and Collection Policy or Underwriting Guidelines. At least thirty (30) days prior to the effectiveness of any material change in or amendment to the (A) Credit and Collection
Policy, a copy of the Credit and Collection Policy then in effect and a notice indicating such change or amendment or (B) underwriting guidelines of AIL, a copy of the underwriting guidelines of AIL then in effect and a notice indicating such
change or amendment. 
 (vi) Other Information. Promptly, from time to time, such other information, documents, records
or reports relating to the Receivables or the condition or operations, financial or otherwise, of such Seller Party or any Torchmark Entity as the Agent may from time to time reasonably request in order to protect the interests of the Purchaser
under or as contemplated by this Agreement. 
 (b) Notices. Such Seller Party will notify the Purchaser in writing of any of the
following promptly upon learning of the occurrence thereof, describing the same and, if applicable, the steps being taken with respect thereto: 
 (i) Amortization Events or Potential Amortization Events. The occurrence of each Amortization Event and each Potential Amortization Event, by a statement of an Authorized Officer of such Seller Party.

  

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 (ii) Judgment and Proceedings. (A) The entry of any judgment or decree
against (1) Torchmark or any of its respective Subsidiaries, if the aggregate amount of all judgments and decrees then outstanding against Torchmark and its Subsidiaries exceeds $50,000,000, (2) AIL or any of its respective Subsidiaries,
if the aggregate amount of all judgments and decrees then outstanding against AIL and its Subsidiaries exceeds $10,000,000 or (3) Seller; or (B) the institution of any litigation, arbitration proceeding or governmental proceeding against
any Torchmark Entity which may have a Material Adverse Effect. 
 (iii) Material Adverse Effect. The occurrence of any
event or condition that has, or could reasonably be expected to have, a Material Adverse Effect. 
 (iv) Amortization
Date. The occurrence of the “Amortization Date” under the Receivables Sale Agreement. 
 (v) Defaults
Under Other Agreements. The occurrence of a default or an event of default under any other material financing arrangement pursuant to which any Torchmark Entity is a debtor or an obligor. 
 (vi) Downgrade of Torchmark Entities. Any downgrade in the claims-paying ability or the rating of any Indebtedness of any Torchmark
Entity by Standard and Poor’s Ratings Group or by Moody’s Investors Service, Inc., setting forth the nature of such change. 
 (vii) Company Action Level Event. With respect to AIL, the occurrence of a Company Action Level Event. 
 (c) Compliance with Laws and Preservation of Corporate Existence. Such Seller Party will comply in all respects with all applicable laws, rules, regulations, orders, writs, judgments, injunctions, decrees or awards to which it may be
subject except, in the case of the Servicer, where noncompliance would not be reasonably likely to have a Material Adverse Effect. Such Seller Party will preserve and maintain its corporate existence, rights, franchises and privileges in the
jurisdiction of its incorporation, and qualify and remain qualified in good standing as a foreign corporation in each jurisdiction where its business is conducted except, in the case of the Servicer, where the failure to so qualify would not be
reasonably likely to have a Material Adverse Effect. Such Seller Party shall cause AIL to remain at all times duly qualified and licensed as an insurance company in each state in which Receivables are originated. 
 (d) Audits. Such Seller Party will furnish to the Purchaser from time to time such information with respect to it and the Receivables as the
Purchaser may reasonably request. Such Seller Party will, from time to time during regular business hours as requested by the Purchaser upon reasonable notice, permit the Purchaser, or its agents or representatives, (i) to examine and make

  

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copies of and abstracts from all Records in the possession or under the control of such Person relating to the Receivables and the Related Security,
including, without limitation, the related Contracts, and (ii) to visit the offices and properties of such Person for the purpose of examining such materials described in clause (i) above, and to discuss matters relating to such
Person’s financial condition or the Receivables and the Related Security or any Person’s performance under any of the Transaction Documents or any Person’s performance under the Contracts and, in each case, with any of the officers or
employees of Seller or the Servicer having knowledge of such matters. 
 (e) Keeping and Marking of Records and Books. 
 (i) The Servicer will maintain and implement administrative and operating procedures (including, without limitation, an ability to
recreate records evidencing Receivables in the event of the destruction of the originals thereof), and keep and maintain all documents, books, records and other information reasonably necessary or advisable for the collection of all Receivables
(including, without limitation, records adequate to permit the immediate identification of each new Receivable and all Collections of and adjustments to each existing Receivable). The Servicer will give the Purchaser notice of any material change in
the administrative and operating procedures referred to in the previous sentence. 
 (ii) Such Seller Party will (A) on
or prior to the date hereof, mark its general ledger and master data processing records and other books and records relating to the Purchaser Interests with a legend, acceptable to the Purchaser, describing the Purchaser Interests and (B) upon
the request of the Purchaser (x) mark each Contract with a legend describing the Purchaser Interests and (y) deliver to the Purchaser all Contracts (including, without limitation, all multiple originals of any such Contract) relating to
the Receivables. 
 (f) Compliance with Contracts and Credit and Collection Policy. Such Seller Party will timely and fully
(i) perform and comply with all provisions, covenants and other promises required to be observed by it under the Contracts related to the Receivables, and (ii) comply in all respects with the Credit and Collection Policy in regard to each
Receivable and the related Contract. Seller will pay when due any taxes payable in connection with the Receivables. 
 (g) Performance
and Enforcement of Receivables Sale Agreement. Seller shall perform its obligations and undertakings under and pursuant to the Receivables Sale Agreement, shall purchase Receivables thereunder in strict compliance with the terms thereof and
shall vigorously enforce the rights and remedies accorded to Seller under the Receivables Sale Agreement. Seller shall take all actions to protect, perfect and enforce its rights and interests (and the rights and interests of the Purchaser as
assignee of Seller) under the Receivables Sale Agreement as the Purchaser may from time to time reasonably request, including, without limitation, making claims to which it may be entitled under any indemnity, reimbursement or similar
provision contained in the Receivables Sale Agreement and requesting such information or such audits as may be permitted under the Receivables Sale Agreement. 
  

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 (h) Ownership. Seller shall take all necessary action to (i) vest legal and equitable title
to the Receivables, the Related Security and the Collections purchased under the Receivables Sale Agreement irrevocably in Seller, free and clear of any Adverse Claims other than Adverse Claims in favor of the Purchaser (including, without
limitation, the filing of all financing statements or other similar instruments or documents necessary under the UCC (or any comparable law) of all appropriate jurisdictions, and the giving of notice to each Obligor and, upon demand by the
Purchaser, to each Policy Holder owing premiums in respect of which Receivables shall have arisen, to perfect Seller’s ownership interest in such Receivables, Related Security and Collections, and such other action to perfect, protect or more
fully evidence the interest of Seller therein as the Purchaser may reasonably request), and (ii) establish and maintain, in favor of the Purchaser, a valid and perfected first priority undivided percentage ownership interest (and/or a valid and
perfected first priority security interest) in all Receivables, Related Security and Collections to the full extent contemplated herein, free and clear of any Adverse Claims other than Adverse Claims in favor of the Purchaser (including,
without limitation, the filing of all financing statements or other similar instruments or documents necessary under the UCC (or any comparable law) of all appropriate jurisdictions to perfect the Purchaser’s interest in such
Receivables, Related Security and Collections and such other action to perfect, protect or more fully evidence the interest of the Purchaser as the Purchaser may reasonably request). Seller has given or caused AIL to give to each Obligor in respect
of any Receivable then outstanding notice as to the transfers of the interests in the Receivables contemplated in the Transaction Documents, and at all times thereafter give or cause AIL to give to each Obligor in respect of each Receivable then or
thereafter arising notice as to such interests for the purpose of perfecting such interests in favor of Seller and the Purchaser. If at any time Seller shall fail to take any actions required to be taken hereunder, or any additional actions as may
have been reasonably requested by the Agent, the Agent may, but shall not be required to, take any such action. 
 (i) Purchasers’
Reliance. Seller acknowledges that the Purchaser is entering into the transactions contemplated by this Agreement in reliance upon Seller’s identity as a legal entity that is separate from the other Torchmark Entities. Therefore, from and
after the date of execution and delivery of this Agreement, Seller shall take all reasonable steps, including, without limitation, all steps that the Purchaser may from time to time reasonably request, to maintain Seller’s identity as a
separate legal entity and to make it manifest to third parties that Seller is an entity with assets and liabilities distinct from those of the other Torchmark Entities and any Affiliates thereof and not just a division of any other Torchmark Entity.
Without limiting the generality of the foregoing and in addition to the other covenants set forth herein, Seller shall: 
 (A) conduct its own business in its own name and require that all full-time employees of Seller, if any, identify themselves as such and not as employees of any other Torchmark Entity (including, without limitation, by means of providing
appropriate employees with business or identification cards identifying such employees as Seller’s employees); 
  

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 (B) compensate all employees, consultants and agents directly, from Seller’s bank
accounts, for services provided to Seller by such employees, consultants and agents and, to the extent any employee, consultant or agent of Seller is also an employee, consultant or agent of another Torchmark Entity, allocate the compensation of
such employee, consultant or agent between Seller and such Torchmark Entity on a basis that reflects the services rendered to Seller and such Torchmark Entity; 
 (C) clearly identify its offices (by signage or otherwise) as its offices and, if such office is located in the offices of any Torchmark
Entity, Seller shall lease such office at a fair market rent; 
 (D) have a separate telephone number, which will be answered
only in its name and separate stationery, invoices and checks in its own name; 
 (E) conduct all transactions with each
other Torchmark Entity strictly on an arm’s-length basis, allocate all overhead expenses (including, without limitation, telephone and other utility charges) for items shared between Seller and each other Torchmark Entity on the basis of actual
use to the extent practicable and, to the extent such allocation is not practicable, on a basis reasonably related to actual use; 
 (F) at all times have a Board of Directors consisting of three or more members, at least one of which is an Independent Director; 
 (G) observe all corporate formalities as a distinct entity, and ensure that all corporate actions relating to (A) the selection, maintenance or replacement of the Independent Director on its board of directors,
(B) the dissolution or liquidation of Seller or (C) the initiation of, participation in, acquiescence in or consent to any bankruptcy, insolvency, reorganization or similar proceeding involving Seller, are duly authorized by unanimous vote
of its Board of Directors (including the Independent Director); 
 (H) maintain Seller’s books and records separate from
those of each other Torchmark Entity and otherwise readily identifiable as its own assets rather than assets of any other Torchmark Entity; 
 (I) prepare its financial statements separately from those of each other Torchmark Entity and insure that any consolidated financial statements of the Torchmark Entities that include Seller and that are filed with the
Securities and Exchange Commission or any other governmental agency have notes clearly stating that Seller is a separate corporate entity and that its assets will be available first and foremost to satisfy the claims of the creditors of Seller;

 (J) except as herein specifically otherwise provided, maintain the funds or other assets of Seller separate from, and not
commingled with, those of any other Torchmark Entity and only maintain bank accounts or other depository accounts to which the Seller alone is the account party, into which the Seller alone makes deposits and from which the Seller alone has the
power to make withdrawals; 
  

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 (K) pay all of Seller’s operating expenses from the Seller’s own assets
(except for certain payments by another Torchmark Entity or other Persons pursuant to allocation arrangements that comply with the requirements of this Section 5.1(i)); 
 (L) operate its business and activities such that: it does not engage in any business or activity of any kind, or enter into any
transaction or indenture, mortgage, instrument, agreement, contract, lease or other undertaking, other than the transactions contemplated and authorized by this Agreement and the Receivables Sale Agreement; and does not create, incur, guarantee,
assume or suffer to exist any indebtedness or other liabilities, whether direct or contingent, other than (1) as a result of the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of
business, (2) the incurrence of obligations under this Agreement, (3) the incurrence of obligations, as expressly contemplated in the Receivables Sale Agreement, to make payment to AIL thereunder for the purchase of Receivables from AIL
under the Receivables Sale Agreement, and (4) the incurrence of operating expenses in the ordinary course of business of the type otherwise contemplated by this Agreement; 
 (M) maintain its corporate charter and other organizational documents in conformity with this Agreement, such that it does not amend,
restate, supplement or otherwise modify its Certificate of Incorporation or By-laws in any respect that would impair its ability to comply with the terms or provisions of any of the Transaction Documents, including, without limitation,
Section 5.1(i) of this Agreement; 
 (N) maintain the effectiveness of, and continue to perform under the
Receivables Sale Agreement and each of the other Transaction Documents to which it is party, such that it does not amend, restate, supplement, cancel, terminate or otherwise modify the Receivables Sale Agreement or any other Transaction Document
(whether or not Seller is party thereto), or give or permit any consent, waiver, directive or approval thereunder or in respect thereof or waive any default, action, omission or breach under the Receivables Sale Agreement or any other Transaction
Document or otherwise grant any indulgence thereunder or in respect thereof, without (in each case) the prior written consent of the Purchaser; 
 (O) maintain its corporate separateness such that it does not merge or consolidate with or into, or convey, transfer, lease or otherwise dispose of (whether in one transaction or in a series of transactions, and
except as otherwise contemplated herein) all or substantially all of its assets (whether now owned or hereafter acquired) to, or acquire all or substantially all of the assets of, any Person, nor at any time create, have, acquire, maintain or hold
any interest in any Subsidiary; and 
 (P) maintain at all times the Required Capital Amount (as defined in the Receivables
Sale Agreement) and refrain from making any dividend, distribution, redemption of capital stock or payment of any subordinated indebtedness which would cause the Required Capital Amount to cease to be so maintained. 
  

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 (j) Collections. Such Seller Party shall direct each applicable Torchmark Entity to remit all
Collections received by such Torchmark Entity directly to the Servicer for the benefit of the Purchaser. Immediately upon receipt by any Torchmark Entity of any premium payable by or on behalf of the Policy Holder or any other Person in respect of
the Insurance Product that shall have given rise to any Receivable, such Torchmark Entity shall be required to remit to the Servicer an amount calculated in reference thereto that, in the ordinary course of business and in accordance with its
customary practice, is then payable as a commission in respect of such Insurance Product to the Obligor on such Receivable and which but for the existence of such Receivable would be remitted to such Obligor. In the event any payments relating to
Receivables are remitted directly to Seller or any Affiliate of Seller, Seller shall remit (or shall cause all such payments to be remitted) directly to the Servicer, and at all times prior to such remittance, Seller shall itself hold or, if
applicable, shall cause such payments to be held in trust for the exclusive benefit of the Purchaser. Seller shall maintain exclusive ownership, dominion and control (subject to the terms of this Agreement) of each deposit account in which any
Collections are held and shall not grant the right to take dominion and control of any such account except to the Purchaser on the demand of the Purchaser. At any time following the occurrence of an Amortization Event, the Purchaser may, at
Seller’s sole cost and expense, direct Seller to notify, or to cause AIL to notify, the Obligors (including Obligors that are guarantors) of Receivables and all Policy Holders owing premiums in respect of which any Receivables shall have arisen
of the ownership interests of the Purchaser under this Agreement and may also direct that payments of all amounts due or that become due under any or all Receivables or Related Security be made directly to the Purchaser (or its respective designee)
or to a lockbox or collection account designated by the Purchaser. 
 (k) Taxes. Such Seller Party shall file all tax returns and
reports required by law to be filed by it and shall promptly pay all taxes and governmental charges at any time due and payable; provided that in the case of the Servicer, the Servicer shall not be required to pay any such taxes which are
being diligently contested in good faith by appropriate proceedings and for which adequate reserves in accordance with generally accepted accounting principles shall have been set aside on its books. 
 (l) Net Worth. Seller shall at all times maintain net worth in an amount not less than $3,000,000. 
 Section 5.2 Negative Covenants of the Seller Parties. Until the date on which the Aggregate Unpaids have been indefeasibly paid in full and
this Agreement terminates in accordance with its terms, each Seller Party hereby covenants, that: 
 (a) Name Change, Offices and
Records. Such Seller Party will not change its name, identity or corporate structure (within the meaning of Section 9-402(7) of any applicable enactment of the UCC) or relocate its chief executive office or any office where Records are kept
unless it shall have: (i) given the Purchaser at least forty-five (45) days’ prior written notice thereof and (ii) delivered to the Purchaser all financing statements, instruments and other documents requested by the Purchaser in
connection with such change or relocation. 
  

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 (b) Change in Payment Instructions to Obligors. Such Seller Party will not make any change in the
instructions to Obligors regarding payments to be made on any Receivable without the prior written consent of the Purchaser. 
 (c)
Modifications to Contracts and Credit and Collection Policy. Such Seller Party will not make (or permit AIL to make) any change to the Credit and Collection Policy that could adversely affect the collectability of the Receivables or decrease
the credit quality of any newly created Receivables. Except as provided in Section 6.2(d), the Servicer will not, and will not extend, amend or otherwise modify the terms of any Receivable or any Contract related thereto other than in
accordance with the Credit and Collection Policy. 
 (d) Sales, Liens. Seller shall not sell, assign (by operation of law or
otherwise) or otherwise dispose of, or grant any option with respect to, or create or suffer to exist any Adverse Claim upon (including, without limitation, the filing of any financing statement) or with respect to, any Receivable, Related Security
or Collections, or upon or with respect to any Contract under which any Receivable arises, or any deposit account in which Collections may be held, or assign any right to receive income with respect thereto (other than, in each case, the creation of
the interests therein in favor of the Purchaser provided for herein), and Seller shall defend the right, title and interest of the Purchaser in, to and under any of the foregoing property, against all claims of third parties claiming through or
under Seller or AIL. 
 (e) Net Receivables Balance. At no time prior to the Amortization Date shall Seller permit the Net
Receivables Balance to be less than the aggregate Capital of all the Purchaser Interests at such time. 
 (f) Amortization Date
Determination. Seller shall not designate or permit the designation of an Amortization Date (as defined in the Receivables Sale Agreement), or send any written notice to AIL in respect thereof, without the prior written consent of the Purchaser,
except with respect to the occurrence of such Amortization Date arising pursuant to Section 5.1(d) of the Receivables Sale Agreement. 
 (g) Change in Subordinated Note. Seller shall not amend, modify (by course of conduct or otherwise) or terminate the Subordinated Note without the prior written consent of the Purchaser. 
 Section 5.3 Covenants Relating to Premium Interest. As contemplated in the definition herein of “Related Security”, each Purchaser
Interest shall include, without limitation, an undivided percentage ownership interest in each Premium Interest. In that regard, until the date on which Aggregate Unpaids shall have been indefeasibly paid in full and this Agreement terminated in
accordance with its terms, each Seller Party hereby covenants that: 
 (a) Recordkeeping of Premium Interest. It shall (or shall cause
the applicable Torchmark Entity to) maintain at all times recordkeeping systems such that (i) at the time an application for an Insurance Product is submitted by an Obligor, and such Torchmark Entity shall have accepted such application and
agreed to issue the requested Insurance Product, a notation is encoded or 

  

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otherwise made on its books and records identifying the commission and any similar fee that, in accordance with arrangements then existing between the
Torchmark Entities and such Obligor and its Agent-Hierarchy, shall be payable to such Obligor or to any member of such Obligor’s Agent-Hierarchy upon or in connection with the subsequent receipt by a Torchmark Entity of any Premium relating to
such Insurance Product, and (ii) at the time any Premium relating to such Insurance Product is remitted by the applicable Policy Holder, the applicable Torchmark Entity shall be capable of immediately identifying the amount of the commission
payable to the applicable Obligor and its Agent-Hierarchy. 
 (b) Remittance of Premium Interest. In accordance with
Section 5.1(j), it shall (or shall cause the applicable Torchmark Entity to), immediately upon receipt of any Premium which is subject to a Premium Interest, remit to the Servicer that portion of such Premium equal to the Premium
Interest therein. The Seller represents and warrants that the Purchaser shall have a first priority ownership interest in each Premium Interest, free and clear of any Adverse Claim, including, without limitation, any claim of any Policy Holder, any
Obligor and any member of an Agent-Hierarchy. 
 (c) Opinions. It shall cause to be delivered to the Purchaser, not less frequently
than once each year, an opinion of Indiana insurance counsel (an “Indiana Regulatory Opinion”) substantially in the form of Exhibit IX hereto. In the event there shall at any time be (i) a change in or in the
interpretation of any law, rule or regulation relating to any Torchmark Entity which, in the reasonable judgment of the Purchaser, brings into question the continuing validity of any of the legal conclusions stated in any Indiana Regulatory Opinion
theretofore rendered to the Purchaser in connection with this Agreement, or (ii) a material change in the staff of the Indiana Department of Insurance or any similar or successor agency having any oversight of any Torchmark Entity or the
conduct of its business (the “Insurance Regulatory Agency”), the Purchaser may request that, prior to the issuance of any Indiana Regulatory Opinion, the law firm rendering such opinion shall confer with the Insurance Regulatory
Agency and seek confirmation that the legal conclusions to be stated in such Indiana Regulatory Opinion continue to be supported by the Insurance Regulatory Agency. 
 Notwithstanding the calculation of any Premium Interest in reference to the commissions payable to any Obligor or its Agent-Hierarchy, the transfer to the Purchaser hereunder of any Premium Interest shall constitute
the transfer of an asset of the Seller (which it shall have acquired from AIL), and the Purchaser assumes no obligation or liability to make any payment to any Obligor or its Agent-Hierarchy in respect of any commission or similar payment due to
such Obligor or Agent-Hierarchy. Any such obligation to pay any commission or similar fee to any Obligor or Agent-Hierarchy shall be and remain an obligation or AIL. 
 ARTICLE VI 
 ADMINISTRATION AND COLLECTION 
 Section 6.1 Designation of Servicer. (a) The servicing, administration and collection of the Receivables shall be conducted by such
Person (the “Servicer”) so designated from time to time in accordance with this Section 6.1. AIL is hereby designated as, and hereby agrees to perform the duties and obligations of, the Servicer pursuant to the terms of
this Agreement. The Purchaser may, at 
 any time following the occurrence of an Amortization Event, designate as Servicer any Person to succeed AIL or any
successor Servicer. 
  

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 (b) Without the prior written consent of the Purchaser, AIL shall not be permitted to delegate any of
its duties or responsibilities as Servicer to any Person other than, with respect to certain Charged-Off Receivables, outside collection agencies in accordance with its customary practices. If at any time the Purchaser shall designate as Servicer
any Person other than AIL, all duties and responsibilities theretofore delegated by AIL to a subservicer may, at the discretion of the Purchaser, be terminated forthwith on notice given by the Purchaser to AIL and to Seller. 
 (c) Notwithstanding the foregoing subsection (b), (i) AIL shall be and remain primarily liable to the Purchaser for the full and prompt performance
of all duties and responsibilities of the Servicer hereunder and (ii) the Purchaser shall be entitled to deal exclusively with AIL in matters relating to the discharge by the Servicer of its duties and responsibilities hereunder. The Purchaser
shall not be required to give notice, demand or other communication to any Person other than AIL in order for communication to the Servicer and its sub-servicer or other delegate with respect thereto to be accomplished. AIL, at all times that it is
the Servicer, shall be responsible for providing any sub-servicer or other delegate of the Servicer with any notice given to the Servicer under this Agreement. 
 Section 6.2 Duties of Servicer. (a) The Servicer shall take or cause to be taken all such actions as may be necessary or advisable to collect each Receivable from time to time, all in accordance with
applicable laws, rules and regulations, with reasonable care and diligence, and in accordance with the Credit and Collection Policy. 
 (b)
The Servicer will handle all Collections in a manner consistent with the terms hereof and as the Purchaser may otherwise reasonably request. The Servicer shall, if requested by the Purchaser at any time following the occurrence of an Amortization
Event, (i) establish such accounts as the Purchaser may reasonably request for the remittance of Collections and the remittance of premiums on Insurance Products in respect of which a Receivable shall have arisen as an advance on the
commissions payable in connection with such Insurance Product, and (ii) thereafter instruct each Obligor to make payments on Receivables directly to such accounts. 
 (c) The Servicer shall administer the Collections in accordance with the procedures described herein and in Article II. The Servicer shall set aside and hold in trust for the account of Seller and the
Purchaser their respective shares of the Collections of Receivables in accordance with Article II. The Servicer shall, upon the request of the Purchaser at any time, segregate, in a manner acceptable to the Purchaser, all cash, checks and
other instruments received by it from time to time constituting Collections from the general funds of the Servicer or Seller prior to the remittance thereof in accordance with Article II. If the Servicer shall be required to segregate
Collections pursuant to the preceding sentence, the Servicer shall segregate and deposit with a bank designated by the Purchaser such allocable share of Collections of Receivables set aside for the Purchaser on the first Business Day following
receipt by the Servicer of such Collections, duly endorsed or with duly executed instruments of transfer. 
  

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 (d) The Servicer shall not extend the maturity of any Receivable or adjust the Outstanding Balance of
any Receivable other than in accordance with the Credit and Collection Policy. The Servicer shall have the absolute and unlimited right to commence or settle any legal action with respect to any Receivable or to foreclose upon or repossess any
Related Security. 
 (e) The Servicer shall hold in trust for Seller and the Purchaser all Records that (i) evidence or relate to the
Receivables, the related Contracts and Related Security or (ii) are otherwise necessary or desirable to collect the Receivables and shall, as soon as practicable upon demand of the Purchaser at any time, deliver or make available to the
Purchaser all such Records, at a place selected by the Purchaser. The Servicer shall, as soon as practicable following receipt thereof turn over to Seller any cash collections or other cash proceeds received with respect to Indebtedness not
constituting Receivables. The Servicer shall, from time to time at the reasonable request of the Purchaser, furnish to the Purchaser (as promptly as possible after any such request) a calculation of the amounts set aside for the Purchaser pursuant
to Article II. 
 (f) Any payment (i) by an Obligor in respect of any indebtedness owed by it to AIL or Seller or
(ii) constituting a premium on an Insurance Product in respect of which an advance giving rise to a Receivable shall have been made in anticipation of the receipt of such premium, shall, except as otherwise specified by such Obligor or Policy
Holder or as otherwise required by contract or law, and unless otherwise instructed by the Purchaser, be applied as a Collection of any Receivable of the related Obligor (starting with the oldest such Receivable) to the extent of any amounts then
due and payable thereunder before being applied to any other receivable or other obligation. 
 Section 6.3 Collection Rights.
Seller hereby authorizes the Purchaser, and agrees that the Purchaser shall be entitled to (i) endorse Seller’s name on checks and other instruments representing Collections, (ii) enforce the Receivables, the related Contracts and the
Related Security and (iii) take such action as shall be necessary or desirable to cause all cash, checks and other instruments constituting Collections of Receivables to come into the possession of the Purchaser rather than Seller. 

Section 6.4 Responsibilities of Seller. Anything herein to the contrary notwithstanding, the exercise by the Purchaser of its rights
hereunder shall not release the Servicer, AIL or Seller from any of their duties or obligations with respect to any Receivables or under the related Contracts. The Purchaser shall have no obligation or liability with respect to any Receivables or
related Contracts, nor shall the Purchaser be obligated to perform the obligations of Seller. 
 Section 6.5 Reports. The
Servicer shall prepare and forward to the Purchaser (i) on each Monthly Reporting Date and at such other times as the Purchaser shall reasonably request, a Monthly Report, which Monthly Report shall set forth the relevant information in respect
of the calendar month then most recently ended, and (ii) at such times as the Purchaser shall reasonably request, a listing by Obligor of all Receivables. 
  

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 Section 6.6 Servicing Fees. In
consideration of AIL’s agreement to act as Servicer hereunder, Seller hereby agrees that, so long as AIL shall continue to perform as Servicer hereunder, Seller shall pay AIL a fee (the “Servicing Fee”) equal to  1/2 of 1% per annum of the average aggregate amount of outstanding Capital as compensation for its servicing activities, which
fee shall be payable monthly, in arrears, on each Settlement Date in respect of the calendar month then most recently ended. From and after the replacement of AIL as Servicer hereunder, Seller shall pay all reasonable fees and expenses of the Person
then acting as Servicer hereunder, such fees and expenses to be paid on each Settlement Date or at such other times as shall be acceptable to the Agent. 
 ARTICLE VII 
 AMORTIZATION EVENTS 
 Section 7.1 Amortization Events. The occurrence of any one or more of the following events shall constitute an Amortization Event:

 (a) Any of the following shall occur: 
 (i) any Seller Party shall fail to make any payment or deposit required hereunder when due; or 
 (ii) the Servicer shall fail to perform or observe any term, covenant or agreement hereunder (other than as referred to in clause (i) above) and such failure shall continue for five (5) consecutive Business Days; or 
 (iii) Seller shall fail to perform or observe any term, covenant or agreement set forth in Section 5.1(b)(i),
Section 5.1(h), Section 5.1(i)(L), (M) or (P), Section 5.1(l) or Section 5.2 and such failure shall continue for three (3) consecutive Business Days; or 
 (iv) Seller shall fail to perform or observe any term, covenant or agreement hereunder (other than as referred to in any of the foregoing
clauses) and such failure shall continue for fifteen (15) consecutive days. 
 (b) Any representation, warranty, certification or
statement made by any Torchmark Entity in this Agreement, any other Transaction Document or in any other document delivered pursuant hereto or thereto shall prove to have been incorrect in any material respect when made or deemed made. 

(c) Any of the following shall occur: 
 (i) the failure of Seller to pay any Indebtedness when due; or the default by Seller in the performance of any term, provision or conditions contained in any agreement under which any Indebtedness was created or is
governed, or any other event shall occur or condition exist, the effect of which is to cause, or to permit the holder or holders of such Indebtedness to cause, such Indebtedness to become due prior to its stated maturity; or any Indebtedness of
Seller shall be declared to be due and payable or required to be prepaid (other than by a regularly scheduled payment) prior to the stated maturity thereof; or 
  

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 (ii) the failure of Torchmark or any of its Subsidiaries (including AIL) to pay when due
any Indebtedness in excess of, singly or in the aggregate for all such Subsidiaries, $10,000,000; or the default by Torchmark or any of such Subsidiaries in the performance of any term, provision or conditions contained in any agreement under which
any such Indebtedness was created or is governed, or any other event shall occur or condition exist, the effect of which is to cause, or to permit the holder or holders of such Indebtedness to cause, such Indebtedness to become due prior to its
stated maturity; or any such Indebtedness of Torchmark or any such Subsidiary shall be declared to be due and payable or required to be prepaid (other than by a regularly scheduled payment) prior to the stated maturity thereof; or 
 (iii) any event or condition shall have occurred or exist which would constitute a default under the Torchmark Credit Agreement (the terms
of which are incorporated herein by this reference thereto, and shall remain in effect for purposes of this Agreement at all times during the term of this Agreement without regard to whether the Torchmark Credit Agreement shall then be in effect).

 (d) (i) Any Torchmark Entity shall generally not pay its debts as such debts become due or shall admit in writing its inability to pay its
debts generally or shall make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or against any Torchmark Entity seeking to adjudicate it bankrupt or insolvent, or seeking liquidation, winding up,
reorganization, receivership, arrangement, adjustment, protection, relief or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the
appointment of a receiver, trustee or other similar official for it or any substantial part of its property or (ii) any Torchmark Entity shall take any corporate action to authorize any of the actions set forth in clause (i) above in this
subsection (d). 
 (e) The aggregate Purchaser Interests shall exceed 100% and shall continue as such until the earliest to occur of
(i) five (5) Business Days following the date any Seller Party has actual knowledge thereof and (ii) the next Settlement Date. 
 (f) A Change of Control shall occur. 
 (g) One or more final judgments for the payment of money shall be entered against
(i) Seller, (ii) AIL, in excess of $10,000,000 singly or in the aggregate, or (iii) Torchmark, in excess of $25,000,000 singly or in the aggregate, in each case on claims not covered by insurance or as to which the insurance carrier
has denied its responsibility, and such judgment shall continue unsatisfied and in effect for fifteen (15) consecutive days without being stayed on appeal or otherwise being appropriately contested in good faith by such Torchmark Entity.

  

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 (h) An “Amortization Event” shall for any reason occur under and as defined in the
Receivables Sale Agreement, or AIL shall for any reason cease to transfer, or cease to have the legal capacity to transfer, or otherwise be incapable of transferring Receivables under the Receivables Sale Agreement. 
 (i) Any Transaction Document shall terminate in whole or in part (except in accordance with its terms), or shall cease to be effective or to be the
legally valid, binding and enforceable obligation of Seller, AIL, Torchmark or the Servicer, as applicable; or any Torchmark Entity, or Obligors in respect of more than 10% of the Net Receivables Balance, shall directly or indirectly contest in any
manner such effectiveness, validity, binding nature or enforceability; or the Purchaser shall cease to have a valid and perfected first priority security interest in the Receivables, the Related Security and the Collections with respect thereto.

 (j) At any time, with respect to AIL, a Regulatory Action Level Event shall occur. 
 (k) At any time, with respect to AIL, a Regulatory Control Event shall occur. 
 (l) AIL shall assert the invalidity or unenforceability of any term or provision relating to the subordination in right of payment of any indebtedness
owing to AIL by Seller to the indebtedness and obligations owing to the Purchaser by Seller. 
 (m) A Future Commissions Deficiency shall
have occurred as of any two consecutive Monthly Reporting Dates. 
 Section 7.2 Remedies. Upon the occurrence and during the
continuation of an Amortization Event, the Purchaser may take any of the following actions: (i) replace the Person then acting as Servicer, (ii) declare the Amortization Date to have occurred, whereupon the Amortization Date shall
forthwith occur, without demand, protest or further notice of any kind, all of which are hereby expressly waived by each Seller Party; provided, however, that upon the occurrence of an Amortization Event described in
Section 7.1(d), or of an actual or deemed entry of an order for relief with respect to any Seller Party under the Federal Bankruptcy Code, the Amortization Date shall automatically occur, without demand, protest or any notice of any
kind, all of which are hereby expressly waived by each Seller Party, and (iii) to the fullest extent permitted by applicable law, declare that the Default Fee shall accrue with respect to any of the Aggregate Unpaids outstanding at such time.
The aforementioned rights and remedies shall be in addition to all other rights and remedies of the Purchaser available under this Agreement, by operation of law, at equity or otherwise, all of which are hereby expressly reserved, including, without
limitation, all rights and remedies provided under the UCC, all of which rights shall be cumulative. 
  

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 ARTICLE VIII 
 INDEMNIFICATION 
 Section 8.1 Indemnities by the Seller Parties. Without limiting any other
rights that the Purchaser may have hereunder or under applicable law, (A) Seller hereby agrees to indemnify the Purchaser and its assigns, officers, directors, agents and employees (each an “Indemnified Party”) from and against
any and all damages, losses, claims, taxes, liabilities, costs, expenses and for all other amounts payable, including reasonable attorneys’ fees (which attorneys may be employees of the Purchaser) and disbursements (all of the foregoing being
collectively referred to as “Indemnified Amounts”) awarded against or incurred by any of them arising out of or as a result of this Agreement or the acquisition, either directly or indirectly, by a Purchaser of an interest in the
Receivables, and (B) the Servicer hereby agrees to indemnify each Indemnified Party for Indemnified Amounts awarded against or incurred by any of them arising out of the Servicer’s activities as Servicer under this Agreement excluding,
however, in all of the foregoing instances under the preceding clauses (A) and (B): 
 (i) Indemnified Amounts to the
extent a final judgment of a court of competent jurisdiction holds that such Indemnified Amounts resulted from gross negligence or willful misconduct on the part of the Indemnified Party seeking indemnification; 
 (ii) Indemnified Amounts to the extent the same includes losses in respect of Receivables that are uncollectible on account of the
insolvency, bankruptcy or lack of creditworthiness of the related Obligor; or 
 (iii) taxes imposed by the jurisdiction in
which such Indemnified Party’s principal executive office is located, on or measured by the overall net income of such Indemnified Party to the extent that the computation of such taxes is consistent with the characterization for income tax
purposes of the acquisition by the Purchaser of Purchaser Interests as a loan or loans by the Purchaser to Seller secured by the Receivables, the Related Security and the Collections; 
 provided, however, that nothing contained in this sentence shall limit the liability of any Seller Party or limit the recourse of the Purchaser to any Seller Party for amounts otherwise specifically
provided to be paid by such Seller Party under the terms of this Agreement. Without limiting the generality of the foregoing indemnification, Seller shall indemnify the Purchaser for Indemnified Amounts (including, without limitation, losses in
respect of uncollectible receivables for matters specifically described below, regardless of whether reimbursement therefor would constitute recourse to Seller or the Servicer) relating to or resulting from: 
 (i) any representation or warranty made by any Torchmark Entity (or any officers of any such Person) under or in connection with this
Agreement, any other Transaction Document or any other information or report delivered by any such Person pursuant hereto or thereto, which shall have been false or incorrect when made or deemed made; 
  

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 (ii) the failure by any Torchmark Entity to comply with any applicable law, rule,
regulation, agreement (including any confidentiality agreement), order, writ, judgment, injunction, decree or award, including with respect to any Receivable or Contract related thereto, or the nonconformity of any Receivable or Contract included
therein with any such applicable law, rule or regulation or any failure of any Torchmark Entity to keep or perform any of its obligations, express or implied, with respect to any Contract; 
 (iii) any failure of any Torchmark Entity to perform its duties, covenants or other obligations in accordance with the provisions of this
Agreement or any other Transaction Document; 
 (iv) any products liability or similar claim arising out of or in connection
with merchandise, insurance or services that are the subject of any Contract; 
 (v) any dispute, claim, offset or defense
(other than discharge in bankruptcy of the Obligor) of the Obligor to the payment of any Receivable (including, without limitation, a defense based on such Receivable or the related Contract not being a legal, valid and binding obligation of such
Obligor enforceable against it in accordance with its terms), or any other claim resulting from the sale of the merchandise or service related to such Receivable or the furnishing or failure to furnish such merchandise or services; 
 (vi) the commingling of Collections of Receivables at any time with other funds; 
 (vii) any investigation, litigation or proceeding related to or arising from this Agreement or any other Transaction Document, the
transactions contemplated hereby, the use of the proceeds of a purchase, the ownership of the Purchaser Interests or any other investigation, litigation or proceeding relating to any Torchmark Entity in which any Indemnified Party becomes involved
as a result of any of the transactions contemplated hereby; 
 (viii) any inability to litigate any claim against any Obligor
in respect of any Receivable as a result of such Obligor being immune from civil and commercial law and suit on the grounds of sovereignty or otherwise from any legal action, suit or proceeding; 
 (ix) any Amortization Event described in Section 7.1(d); 
 (x) any failure of Seller to acquire and maintain legal and equitable title to, and ownership of any Receivable and the Related Security
and Collections with respect thereto, free and clear of any Adverse Claim (other than as created hereunder); or any failure of Seller to give reasonably equivalent value to AIL under the Receivables Sale Agreement in consideration of the transfer by
AIL of any Receivable, or any attempt by any Person to void such transfer under statutory provisions or common law or equitable action; 
  

 26 

 (xi) any failure to vest and maintain vested in the Purchaser, or to transfer to the
Purchaser, legal and equitable title to, and ownership of, a first priority undivided percentage ownership (to the extent of the Purchaser Interests contemplated hereunder) in the Receivables, the Related Security and the Collections, free and clear
of any Adverse Claim; 
 (xii) the failure to have filed, or any delay in filing, financing statements or other similar
instruments or documents under the UCC of any applicable jurisdiction or other applicable laws with respect to any Receivable, the Related Security and Collections with respect thereto, and the proceeds of any thereof, whether at the time of any
Incremental Purchase or Reinvestment or at any subsequent time; 
 (xiii) any action or omission by any Torchmark Entity which
reduces or impairs the rights of the Purchaser with respect to any Receivable or the value of any such Receivable; 
 (xiv)
any action or omission by any Insurance Agent or any member of an Agent-Hierarchy which (A) reduces or impairs the rights of the Purchaser with respect to any Receivable or the value of any such Receivable and (B) does not entail the
commencement by such Insurance Agent or member of any bankruptcy or insolvency proceeding or any other action or omission (including any failure to pay) by reason of the lack of creditworthiness or ability to pay on the part of such Insurance Agent
or Agent-Hierarchy; and 
 (xv) any attempt by any Person to void any Incremental Purchase or Reinvestment hereunder under
statutory provisions or common law or equitable action. 
 Section 8.2 Other Costs and Expenses. (a) Seller shall pay all
costs and out-of-pocket expenses in connection with the preparation, execution, delivery and administration of the Transaction Documents, the transactions contemplated hereby and the other documents to be delivered hereunder. Seller shall pay to the
Purchaser on demand any and all costs and expenses of the Purchaser, if any, including reasonable counsel fees and expenses in connection with the enforcement of this Agreement and the other documents delivered hereunder and in connection with any
restructuring or workout of this Agreement or such documents, or the administration of this Agreement following an Amortization Event. 
 (b)
The cost and expense of an outside auditor at any time engaged by the Purchaser to conduct an audit of the books, records and procedures of Seller and the Torchmark Entities, whether pursuant to Section 5.1(d) hereof or otherwise, shall
be borne by Seller, and Seller shall promptly reimburse the Purchaser therefor upon demand of the Purchaser. 
  

 27 

 ARTICLE IX 
 ASSIGNMENTS; TERMINATION 
 Section 9.1 Assignments. Seller hereby agrees and consents to the
complete or partial assignment by Purchaser of all or any portion of its rights under, interest in, title to and obligations under this Agreement to any other Person, and upon such assignment, the Purchaser shall be released from its obligations so
assigned. Further, Seller hereby agrees that any assignee of the Purchaser of this Agreement or all or any of the Purchaser Interests of the Purchaser shall have all of the rights and benefits under this Agreement as if the term
“Purchaser” explicitly referred to such party, and no such assignment shall in any way impair the rights and benefits of the Purchaser hereunder. Neither the Seller nor the Servicer shall have the right to assign its rights or obligations
under this Agreement. 
 Section 9.2 Termination. 
 (a) The Purchaser hereby agrees to deliver written notice to the Seller not less than 90 days prior to the Liquidity Termination Date indicating whether Purchaser will renew its Commitment hereunder. 
 ARTICLE X 
 MISCELLANEOUS 
 Section 10.1 Waivers and Amendments. (a) No failure or delay on the part of the Purchaser in exercising any power, right or remedy under
this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or remedy preclude any other further exercise thereof or the exercise of any other power, right or remedy. The rights and remedies
herein provided shall be cumulative and nonexclusive of any rights or remedies provided by law. Any waiver of this Agreement shall be effective only in the specific instance and for the specific purpose for which given. 
 (b) No provision of this Agreement may be amended, supplemented, modified or waived except in writing in accordance with the provisions of this
Section 10.1(b). Seller, the Servicer and the Purchaser may enter into written modifications or waivers of any provisions of this Agreement, provided, however, that no such modification or waiver shall: 
 (i) without the consent of the Purchaser, (A) extend the Liquidity Termination Date or the date of any payment or deposit of
Collections by Seller or the Servicer, (B) reduce the rate or extend the time of payment of Yield (or any component thereof), (C) reduce any fee payable to the Agent for the benefit of the Purchaser, (D) except pursuant to Article
X hereof, change the amount of the Capital of the Purchaser, (E) consent to or permit the assignment or transfer by Seller of any of its rights and obligations under this Agreement, (F) change the definition of “Eligible
Receivable,” or (G) amend or modify any defined term (or any defined term used directly or indirectly in such defined term) used in clauses (A) through (G) above in a manner that would circumvent the intention of the
restrictions set forth in such clauses; or 
  

 28 

 (ii) without the written consent of the Purchaser, amend, modify or waive any provision
of this Agreement if the effect thereof is to affect the rights or duties of the Purchaser; or 
 (iii) without the written
consent of the Servicer, amend, modify or waive any provision of this Agreement if the effect thereof is to affect the rights or duties of the Servicer. 
 Section 10.2 Notices. Except as provided below, all communications and notices provided for hereunder shall be in writing (including bank wire, telecopy or electronic facsimile transmission or similar
writing) and shall be given to the other parties hereto at their respective addresses or telecopy numbers set forth on the signature pages hereof or at such other address or telecopy number as such Person may hereafter specify for the purpose of
notice to each of the other parties hereto. Each such notice or other communication shall be effective (i) if given by telecopy, upon the receipt thereof, (ii) if given by mail, three (3) Business Days after the time such
communication is deposited in the mail with first class postage prepaid or (iii) if given by any other means, when received at the address specified in this Section 10.2. Seller agrees to deliver promptly to the Purchaser a written
confirmation of each telephonic notice signed by an authorized officer of Seller; however, the absence of such confirmation shall not affect the validity of such notice. If the written confirmation differs from the action taken by the Purchaser, the
records of the Purchaser shall govern absent manifest error. 
 Section 10.3 Protection of Ownership Interests of the Purchasers.
(a) Seller agrees that from time to time, at its expense, it will promptly execute and deliver all instruments and documents, and take all actions, that may be reasonably necessary or desirable, or that the Purchaser may request, to perfect,
protect or more fully evidence the Purchaser Interests, or to enable the Purchaser to exercise and enforce its rights and remedies hereunder. At any time, the Purchaser may, or the Purchaser may direct Seller or the Servicer to, notify the Obligors
(including Obligors that are guarantors) of Receivables, at Seller’s expense, of the ownership interests of the Purchasers under this Agreement and may also direct that payments of all amounts due or that become due under any or all Receivables
be made directly to the Purchaser or its designee. Seller or the Servicer (as applicable) shall, at any Purchaser’s request, withhold the identity of the Purchaser in any such notification. 
 (b) If any Seller Party fails to perform any of its obligations hereunder, the Purchaser may (but shall not be required to) perform, or cause
performance of, such obligation, and the Purchaser’s costs and expenses incurred in connection therewith shall be payable by Seller as provided in Section 8.2. Each Seller Party irrevocably authorizes the Purchaser at any time and
from time to time in the sole discretion of the Purchaser, and appoints the Purchaser as its attorney-in-fact, to act on behalf of such Seller Party (i) to execute on behalf of Seller as debtor and to file financing statements necessary or
desirable in the Purchaser’s sole discretion to perfect and to maintain the perfection and priority of the interest of the Purchaser in the Receivables and (ii) to file a carbon, photographic or other reproduction of this Agreement or any
financing statement with respect to the Receivables as a financing statement in such offices as the Purchaser in its sole discretion deems necessary or desirable to perfect and to maintain the perfection and priority of the interests of the
Purchaser in the Receivables. This appointment is coupled with an interest and is irrevocable. 
  

 29 

 Section 10.4 Confidentiality. (a) The Purchaser shall maintain and shall cause each of
its employees and officers to maintain the confidentiality of this Agreement and the other confidential proprietary information with respect to Seller, the Servicer and its Affiliates, and their respective businesses obtained by it or them in
connection with the structuring, negotiating and execution of the transactions contemplated herein, except that such Purchaser and its officers and employees may disclose (i) such information to such Purchaser’s external accountants and
attorneys and as required by any applicable law or order of any judicial or administrative proceeding, and (ii) such information as relates to the off-balance sheet accounting treatment intended by the transactions contemplated in the
Transaction Documents to any rating agency rating any Indebtedness or the claims-paying ability of any Torchmark Entity. In the event any rating agency that is rating any Indebtedness or the claims-paying ability of any Torchmark Entity shall
request any additional information of the type the disclosure of which is restricted by this Section 10.4(a), Seller may with the consent of the Purchaser (which consent shall not be unreasonably withheld) disclose such information to
such rating agency. 
 (b) Anything herein to the contrary notwithstanding, each Seller Party hereby consents to the disclosure of any
nonpublic information with respect to it (i) to the Purchaser, (ii) by the Purchaser to any prospective or actual assignee or participant of any of them, (iv) to the extent the same becomes available to the Purchaser on a
non-confidential basis from a source other than another party hereto, or (v) to the extent necessary in connection with any legal proceeding relating to the enforcement of any right of the Purchaser under the Transaction Documents. In addition,
the Purchaser may disclose any such nonpublic information pursuant to any law, rule, regulation, direction, subpoena, request or order of any judicial, administrative or regulatory authority or proceedings (whether or not having the force or effect
of law). 
 Section 10.5 Limitation of Liability. Except with respect to any claim arising out of the willful misconduct or gross
negligence of the Purchaser, no claim may be made by any Seller Party or any other Person against the Purchaser or its respective Affiliates, directors, officers, employees, attorneys or agents for any special, indirect, consequential or punitive
damages in respect of any claim for breach of contract or any other theory of liability arising out of or related to the transactions contemplated by this Agreement, or any act, omission or event occurring in connection therewith; and each Seller
Party hereby waives, releases, and agrees not to sue upon any claim for any such damages, whether or not accrued and whether or not known or suspected to exist in its favor. 
 Section 10.6 CHOICE OF LAW. THIS AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS (AND NOT THE LAW OF
CONFLICTS) OF THE STATE OF DELAWARE. 
 Section 10.7 CONSENT TO JURISDICTION. EACH SELLER PARTY HEREBY IRREVOCABLY SUBMITS TO THE
NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR DELAWARE STATE COURT SITTING IN WILMINGTON, DELAWARE IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS 

  

 30 

 
AGREEMENT OR ANY DOCUMENT EXECUTED BY SUCH PERSON PURSUANT TO THIS AGREEMENT AND EACH SELLER PARTY HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF
SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN
INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT THE RIGHT OF THE PURCHASER TO BRING PROCEEDINGS AGAINST ANY SELLER PARTY IN THE COURTS OF ANY OTHER JURISDICTION. ANY JUDICIAL PROCEEDING BY ANY SELLER PARTY AGAINST THE PURCHASER OR ANY AFFILIATE OF
THE PURCHASER INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS AGREEMENT OR ANY DOCUMENT EXECUTED BY SUCH SELLER PARTY PURSUANT TO THIS AGREEMENT SHALL BE BROUGHT ONLY IN A COURT IN
WILMINGTON, DELAWARE. 
 Section 10.8 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES TRIAL BY JURY IN ANY JUDICIAL
PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS AGREEMENT, ANY DOCUMENT EXECUTED BY THE SELLER PURSUANT TO THIS AGREEMENT OR THE
RELATIONSHIP ESTABLISHED HEREUNDER OR THEREUNDER. 
 Section 10.9 Integration; Binding Effect; Survival of Terms. 
 (a) This Agreement contains the final and complete integration of all prior expressions by the parties hereto with respect to the subject matter hereof
and shall constitute the entire agreement among the parties hereto with respect to the subject matter hereof superseding all prior oral or written understandings. 
 (b) This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns (including any trustee in bankruptcy). This Agreement shall create and
constitute the continuing obligations of the parties hereto in accordance with its terms and shall remain in full force and effect until terminated in accordance with its terms; provided, however, that the rights and remedies with
respect to (i) any breach of any representation and warranty made by any Seller Party pursuant to Article III, and (ii) the indemnification and payment provisions of Article VIII, and Section 10.4 shall be
continuing and shall survive any termination of this Agreement. 
 Section 10.10 Counterparts; Severability; Section References.
This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the
same Agreement. Any provisions of this Agreement which are prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not 

  

 31 

 
invalidate or render unenforceable such provision in any other jurisdiction. Unless otherwise expressly indicated, all references herein to
“Article,” “Section,” “Schedule” or “Exhibit” shall mean articles and sections of, and schedules and exhibits to, this Agreement. 
 Section 10.11 Characterization. (a) It is the intention of the parties hereto that each purchase of a Purchaser Interest hereunder shall constitute and be treated as an absolute and irrevocable sale,
which purchase shall provide the Purchaser with the full benefits of ownership of the applicable Purchaser Interest. Except as specifically provided in this Agreement, each sale of a Purchaser Interest hereunder is made without recourse to Seller;
provided, however, that (i) Seller shall be liable to Purchaser for all representations, warranties and covenants made by Seller pursuant to the terms of this Agreement, and (ii) such sale does not constitute and is not intended to result
in an assumption by the Purchaser or any assignee thereof of any obligation of Seller, AIL or any other person arising in connection with the Receivables, the Related Security, or the related Contracts, or any other obligations of Seller or AIL.

 (b) In addition to any ownership interest which the Purchaser may from time to time acquire pursuant hereto, the Seller hereby grants to
the Purchaser a valid and perfected security interest in all of Seller’s right, title and interest in, to and under all Receivables now existing or hereafter arising, the Collections, all Related Security, all other rights and payments relating
to such Receivables, all of Seller’s rights under the Receivables Sale Agreement and all proceeds of any of the foregoing prior to all other liens on and security interests therein to secure the prompt and complete payment of the Aggregate
Unpaids. After an Amortization Event, the Purchaser shall have, in addition to the rights and remedies that it may have under this Agreement, all other rights and remedies provided to a secured creditor after default under the UCC and other
applicable law, which rights and remedies shall be cumulative. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered by their
duly authorized officers as of the date hereof. 
  

			
	 AILIC RECEIVABLES CORPORATION

		
	 By:
	 	 /s/ Larry M. Hutchison

	 Name:
	 	Larry M. Hutchison
	 Title:
	 	Vice President and General Counsel
	
	 Address:

	
	 3700 South Stonebridge Drive

	 McKinney, Texas 75070

	 FAX: (972) 569-3282

	
	 Attention: Danny H. Almond

	
	 AMERICAN INCOME LIFE INSURANCE
 COMPANY, as
Servicer

		
	 By:
	 	 /s/ Larry M. Hutchison

	 Name:
	 	Larry M. Hutchison
	 Title:
	 	Executive Vice President and General Counsel
	
	 Address:

	
	 1200 Wooded Acres

	 Waco, Texas 76710

	 FAX: (205) 325-4157

	
	 Attention: Danny H. Almond

 Signature Page to 
 Amended and Restated 
 Receivables Purchase Agreement 
  

 33 

			
	 TMK Re, Ltd., as Purchaser

		
	 By:
	 	 /s/ Danny H. Almond

	 Name:
	 	Danny H. Almond
	 Title:
	 	Vice President and Treasurer
	
	 Address:

	
	 Chevron House

	 11 Church Street

	 Hamilton, Bermuda

	 FAX: (972) 569-3282

	
	 Attention: Danny H. Almond

 Signature Page to 
 Amended and Restated 
 Receivables Purchase Agreement 
  

 34 

 EXHIBIT I 
 DEFINITIONS 
 As used in this Agreement (as defined below), the following terms shall have the meanings
specified below (such meanings to be equally applicable to both the singular and plural forms of the terms defined). Unless otherwise specified, references to “Articles” and “Sections” in the following definitions refer to
Articles or Sections of the Agreement. 
 “Accrual Period” means a period commencing on and including the 10th day of a
calendar month and ending but excluding the 10th day of the following calendar month; provided that (i) the initial Accrual Period under the Agreement shall be the period from and including the date of the initial purchase under the
Agreement to but excluding the next date that is the 10th day of a calendar month and (ii) the final Accrual Period under the Agreement shall end on the date the Aggregate Unpaids shall be reduced to zero. 
 “Active Insurance Agent” means an Insurance Agent who is not an Inactive Insurance Agent. 
 “Adverse Claim” means a lien, security interest, charge or encumbrance, or other right or claim in, of or on any Person’s assets or
properties in favor of any other Person. 
 “Affiliate” means, with respect to any Person, any other Person directly or
indirectly controlling, controlled by, or under direct or indirect common control with, such Person or any Subsidiary of such Person. A Person shall be deemed to control another Person if the controlling Person owns 10% or more of any class of
voting securities of the controlled Person or possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of the controlled Person, whether through ownership of stock, by contract or otherwise.

 “Agent-Hierarchy” means, in reference to any Insurance Agent, such Insurance Agent together with all other Persons
(including the SGA thereof and all managing general agents, general agents, supervisory agents, Insurance Agents and similar professional relations) which, under existing arrangements with such Insurance Agent, share directly or indirectly
(i) in the proceeds of any commissions payable to such Insurance Agent by AIL, including any amounts paid or advanced that give rise to any Receivable, and (ii) in the obligations and liabilities relating to any Receivable arising in
connection with the cancellation or termination of the underlying Insurance Product. 
 “Aggregate Reduction” has the
meaning specified in Section 1.3. 
 “Aggregate Unpaids” means, at any time, an amount equal to the sum of all
accrued and unpaid fees under the fee letter between Seller and Purchaser,, Capital and all other unpaid Obligations (whether due or accrued) at such time. 
  

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 “Agreement” means this Receivables Purchase Agreement dated as of December 31, 2008
among the Seller, AIL, and the Purchaser, as it may be amended, restated, supplemented or otherwise modified and in effect from time to time. 
 “AIL” has the meaning set forth in the preamble to this Agreement. 
 “Amortization Date” means
the earliest to occur of (i) the day on which any of the conditions precedent set forth in Section 6.2 are not satisfied, (ii) the Business Day immediately prior to the occurrence of an Amortization Event set forth in
Section 7.1(d), (iii) the Business Day specified in a written notice from the Purchaser following the occurrence of any other Amortization Event, (iv) the date which is 30 Business Days after the Purchaser’s receipt of
written notice from Seller that it wishes to terminate the facility evidenced by this Agreement and (v) the Liquidity Termination Date. 
 “Amortization Event” has the meaning specified in Article VII. 
 “Authorized Control Level Risk
Based Capital” means the authorized control level risk-based capital as determined in accordance with the risk-based capital instructions adopted by the NAIC, as such instructions may be amended, modified, supplemented or restated from time
to time. For reference purposes only, such term is also defined in Section 27-1-36-4 of the Indiana Code. 
 “Authorized
Officer” shall mean, with respect to any Seller Party, its respective president, corporate controller or chief financial officer. 
 “Base Rate” means a rate per annum equal to the corporate base rate, prime rate or base rate of interest, as applicable, announced by the designated financial institution from time to time, changing when and as such rate
changes. 
 “Business Day” means any day on which banks are not authorized or required to close in New York, New York and
The Depository Trust Company of New York is open for business. 
 “Capital” of any Purchaser Interest means, at any time,
(A) the Purchase Price of such Purchaser Interest, minus (B) the sum of the aggregate amount of Collections and other payments received by the Purchaser which in each case are applied to reduce such Capital in accordance with the terms and
conditions of this Agreement; provided that such Capital shall be restored (in accordance with Section 2.5) in the amount of any Collections or other payments so received and applied if at any time the distribution of such
Collections or payments are rescinded, returned or refunded for any reason. 
 “Change of Control” means (i) the
acquisition by any Person, or two or more Persons acting in concert, of beneficial ownership (within the meaning of Rule 13d-3 of the Securities and Exchange Commission under the Securities Exchange Act of 1934) of 20% or more of the outstanding
shares of voting stock of Torchmark or (ii) Torchmark Corporation shall at any time cease to own directly or indirectly 100% of the issued and outstanding capital stock of each of AIL and Seller. 
  

 36 

 “Charged-Off Receivable” means a Receivable: (i) as to which the Obligor thereof
has taken any action, or suffered any event to occur, of the type described in Section 7.1(d) (as if references to Torchmark Entity therein refer to such Obligor); (ii) which, consistent with the Credit and Collection Policy, would
be written off Seller’s books as uncollectible , or (iii) which has been identified by Seller as uncollectible. 
 “Collections” means, with respect to any Receivable, all cash collections and other cash proceeds in respect of such Receivable, including, without limitation, (i) all yield, finance charges or other related amounts
accruing in respect thereof, (ii) all cash proceeds of Related Security with respect to such Receivable, (iii) all payments by any guarantor in respect of such Receivable and (iv) upon the payment to AIL of any premium, the funds then
available for payment to the applicable Obligor as commission or related fees and which, consistent with the Credit and Collection Policy, would be retained by AIL for application against any Receivable. 
 “Commitment” means the commitment of the Purchaser to purchase Purchaser Interests from (i) Seller in an amount not to exceed
(A) in the aggregate, the amount set forth opposite Purchaser’s name on Schedule A to this Agreement, as such amount may be modified in accordance with the terms hereof. 
 “Commitment Availability” means at any time the positive difference (if any) between (a) $125,000,000 minus (b) the
aggregate Capital at such time. 
 “Company Action Level Event” means a “company-action-level-event” as such term
is defined in Section 27-1-36-29 of the Indiana Code, or any successor statute, as the same may be amended, modified, recodified or reenacted, in whole or in part, including all rules and regulations promulgated thereunder. 
 “Contract” means, with respect to any Receivable, any and all instruments, agreements (including loan agreements, notes, agent
agreements, general agent agreements, supervisory agent agreements, regional director agreements, broker-dealer agreements and indemnity agreements), statements or other writings pursuant to which (i) such Receivable arises or which evidence
such Receivable or (ii) the applicable Obligor shall have agreed to guaranty directly or indirectly all or a portion of the payment obligations of the primary Obligor on such Receivable. 
 “Credit and Collection Policy” means , in respect of any Receivable, the credit and collection policies and practices of AIL relating to
Contracts and Receivables, as in effect on the date hereof and summarized in Exhibit VI hereto, and as modified from time to time in accordance with this Agreement. 
 “Deemed Collections” means the aggregate of all amounts Seller shall have been deemed to have received as a Collection of a Receivable.
Seller shall be deemed to have received a Collection in full of a Receivable if at any time: 
 (i) the Outstanding Balance of
any such Receivable is either (x) reduced as a result of any dispute involving any of the Policy Holder, the Insurance Agent or any other Obligor or AIL in respect of such Receivable and relating to any aspect of the transaction giving rise to
such Receivable, (y) reduced as a result of any discount or any adjustment or otherwise by any 

  

 37 

 
Torchmark Entity (other than cash Collections on account of the Receivables) or (z) reduced or canceled as a result of a setoff in respect of any claim
by any Person (whether such claim arises out of the same or a related transaction or an unrelated transaction and including, without limitation, any setoff occurring by reason of the application of the proceeds of any subsequent advance or
prepayment made by AIL to the applicable Insurance Agent or other Obligor in respect of any Insurance Product issued or scheduled to be issued after the date such Receivable shall have arisen), or 
 (ii) the applicable Policy Holder (or any other authorized Person) shall for any reason at any time decline, cancel, fail to accept or
otherwise terminate the Insurance Product, the issuance or proposed issuance of which shall have led to the creation of such Receivable, or AIL shall at any time for any reason refuse to or fail to issue, or shall terminate, any such Insurance
Product, or 
 (iii) any of the representations or warranties in Article III are not true on the initial date an
interest in such Receivable shall be transferred to the Purchaser under the Agreement or such Receivable shall not constitute an Eligible Receivable on any date the Outstanding Balance of such Receivable is included in the calculation of Net
Receivables Balance, or 
 (iv) the applicable Policy Holder dies or ceases for any reason to make any or all payments due as
premiums or otherwise in respect of the Insurance Product that shall have given rise to such Receivable during the period that such Receivable shall remain outstanding, or 
 (v) the applicable Obligor directly or indirectly contests in any manner the effectiveness, validity, binding nature or enforceability of
the related Contract or this Agreement. 
 Seller hereby agrees to pay all Deemed Collections immediately to the Servicer for application in accordance with
the terms and conditions hereof. 
 “Default Fee” means with respect to any amount due and payable by Seller in respect of
any Aggregate Unpaids, an amount equal to the greater of (i) $1000 and (ii) interest on any such unpaid Aggregate Unpaids at a rate per annum equal to 2% above the Base Rate. 
 “Designated Obligor” means an Obligor identified as such by the Agent to Seller in writing based upon the reasonable credit judgment of
the Agent. In the case of any Obligor that is a member of an Agent Hierarchy, identification of such Obligor as being a Designated Obligor shall relate solely to such Obligor and shall not automatically cause any other member of such Agent Hierarchy
to constitute a Designated Obligor. 
 “Eligible Receivable” means, at any time, a Receivable: 
 (i) each Obligor in respect of which (a) if a natural person, is a resident of the United States, (b) if a corporation or other
business organization, is organized under the laws of the United States or any political subdivision thereof and has its chief executive office in the United States; (c) is not, and the Policy Holder in respect of the Insurance Product that
gave rise to such 

  

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Receivable is not, an Affiliate of any of the parties hereto; (d) is not a Designated Obligor; (e) is not, and the Policy Holder in respect of the
Insurance Product that gave rise to such Receivable is not, a government or a governmental subdivision or agency; and (f) in the case of an Insurance Agent, is a qualified, licensed agent in good standing of AIL, 
 (ii) the Obligor of which is not the Obligor of any Charged-Off Receivable, 
 (iii) which is not (a) an Unsupported Receivable, (b) a Charged-Off Receivable, 
 (iv) which (a) by its terms is due and payable within one year or less of the date of its creation, with payments thereon commencing
within 30 days of the original billing date and becoming due monthly thereafter, (b) has not had its payment terms extended, and (c) with respect to a Regular Advance Receivable, relates solely to the premium on the applicable Insurance
Product that is scheduled to be paid within the first year of such Insurance Product’s coming into existence and not to any premium scheduled to be paid in any subsequent period, 
 (v) which is an “account” or “general intangible” within the meaning of Section 
 9-106 of the UCC of all applicable jurisdictions, and is not an “instrument” within the meaning of Section 9-105 of the UCC
of any applicable jurisdiction, 
 (vi) which is denominated and payable only in United States dollars in the United States,

 (vii) which arises under a Contract in substantially the form of one of the form contracts set forth on Exhibit VI
hereto or otherwise approved by the Agent in writing, which, together with such Receivable, is in full force and effect and constitutes the legal, valid and binding obligation of each related Obligor (including, in the event the applicable Insurance
Agent shall be a member of an Agent-Hierarchy, each other member of such Agent-Hierarchy as a guarantor of such Receivable) enforceable against such Obligor in accordance with its terms subject to no offset, counterclaim or other defense,

 (viii) which arises under a Contract which (A) does not require any Obligor under such Contract, any member of the
applicable Agent-Hierarchy or any other Person to consent to the transfer, sale or assignment of the rights and duties of Seller under such Contract and (B) does not contain a confidentiality provision that purports to restrict the ability of
any Purchaser to exercise its rights under this Agreement, including, without limitation, its right to review the Contract, 
 (ix) which, together with the Contract related thereto, does not contravene any law, rule or regulation applicable thereto (including, without limitation, any law, rule and regulation relating to truth in lending, fair credit billing, fair
credit reporting, equal credit opportunity, fair debt collection practices and privacy) and with respect to which no part of the Contract related thereto is in violation of any such law, rule or regulation, 
  

 39 

 (x) which satisfies all applicable requirements of the Credit and Collection Policy and
in respect of which all representations and warranties set forth in Section 3.1 and relating to Receivables shall be true and correct, 
 (xi) which was generated in the ordinary course of AIL’s business, under a duly authorized Contract, 
 (xii) which (A) constitutes a Regular Advance Receivable, (B) constitutes a Finance Charge Receivable or (C) constitutes a Miscellaneous Receivable, 
 (xiii) if the primary Obligor thereon is an Insurance Agent that is a member of an Agent-Hierarchy, 100% of the payment obligation on such
Receivable is guaranteed jointly or severally by the members of such Agent-Hierarchy, and 
 (xiv) in the event the Obligor
thereon shall have died or been terminated as an agent of AIL, all obligations relating to such Receivable shall have been assumed by the Agent-Hierarchy in respect of such Obligor; provided that such Receivable shall cease to be an Eligible
Receivable if at any time the members of the Agent-Hierarchy shall assert the invalidity or unenforceability of their obligations in respect of the Receivable. 
 Notwithstanding the foregoing, a Receivable that otherwise satisfies the criteria set forth above but for the fact that (A) the Obligor thereon is a resident of Canada or New Zealand and (B) such Receivable
is denominated in the lawful currency of Canada or New Zealand rather than United States Dollars may constitute an “Eligible Receivable” for purposes of this Agreement. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time. 
 “Finance Charge Receivable” means the indebtedness arising in connection with the extension by AIL to an Obligor of a
loan or an advance for the payment of Financial Charges. 
 “Finance Charges” means, with respect to a
Contract, any finance, interest, late payment charges, fees, chargebacks or similar charges owing by an Obligor pursuant to such Contract. 
 “Future Commissions Deficiency” means, as of any Monthly Reporting Date, that the arithmetic average of the Future Commissions Ratios for such Monthly Reporting Date and each of the two immediately
preceding Monthly Reporting Dates exceeds 65%. 
 “Future Commissions Ratio” means, for any Monthly Reporting
Date, the percentage equivalent of a fraction having as its numerator, the Net Receivables Balance as of the last day of the immediately preceding calendar month and as its denominator, the Present Value of Future Commissions on the last day of the
immediately preceding calendar month. 
  

 40 

 “Inactive Insurance Agent” means an Insurance Agent who shall have died,
retired or been terminated as an agent of AIL for any reason whatsoever. 
 “Incremental Purchase” means a
purchase of one or more Purchaser Interests which increases the total outstanding Capital hereunder. 
 “Indebtedness” of a Person means such Person’s (i) obligations for borrowed money, (ii) obligations representing the deferred purchase price of property or services (other than accounts payable arising in the
ordinary course of such Person’s business payable on terms customary in the trade), (iii) obligations, whether or not assumed, secured by liens or payable out of the proceeds or production from property now or hereafter owned or acquired
by such Person, (iv) obligations which are evidenced by notes, acceptances, or other instruments, (v) capitalized lease obligations, (vi) net liabilities under interest rate swap, exchange or cap agreements, (vii) Contingent
Obligations and (viii) liabilities in respect of unfunded vested benefits under plans covered by Title IV of ERISA. 
 “Independent Director” shall mean a member of the Board of Directors of Seller who is not at such time, and has not been at any time during the preceding five (5) years, (A) a director, officer, employee or
affiliate of any Torchmark Entity or any of their respective Subsidiaries or Affiliates, or (B) the beneficial owner (at the time of such individual’s appointment as an Independent Director or at any time thereafter while serving as an
Independent Director) of any of the outstanding capital stock of any Torchmark Entity or any of their respective Subsidiaries or Affiliates. 
 “Insurance Agent” means, in respect of any Receivable, the insurance broker or agent that shall have arranged the issuance or the proposed issuance of an Insurance Product in connection with which
such Receivable shall have arisen. 
 “Insurance Product” means any life insurance policy (whether term life,
whole life or other life insurance policy of any type or kind), supplemental health insurance policy or any annuity, rider, other policy or similar contract. 
 “ Liquidity Termination Date” means December 31, 2013, unless all parties to this Receivables Purchase Agreement
shall have unanimously agreed upon 90 days prior written notice to an earlier date. 
 “Material Adverse
Effect” means a material adverse effect on (i) the financial condition or operations of any Seller Party and its Subsidiaries, (ii) the ability of any Seller Party to perform its obligations under the Agreement, (iii) the
legality, validity or enforceability of this Agreement or any other Transaction Document, (iv) any Purchaser’s interest in the Receivables generally or in any significant portion of the Receivables, the Related Security or the Collections
with respect thereto, or (v) the collectability of the Receivables generally or of any material portion of the Receivables. 
 “Miscellaneous Receivable” means the indebtedness arising in connection with the extension by AIL to an Obligor or a loan of an advance, whether as a working capital advance, public relations advance, bonus, group insurance
premium, mailing 

  

 41 

 
expense advance, training advance, union dues payment, lease payment or otherwise, which loan or advance does not constitute a Regular Advance Receivable or
a Finance Charge Receivable. 
 “Monthly Report” means a report, in substantially the form of Exhibit
VII to the Agreement (appropriately completed), furnished by the Servicer to the Agent pursuant to Section 6.5. 
 “Monthly Reporting Date” means the 10th day of each month (or, if such day is not a Business Day, the next following day that is a Business Day). 
 “NAIC” means the National Association of Insurance Commissioners. 
 “Net Receivables Balance” means, at any time, (i) the aggregate Outstanding Balance of all Eligible Receivables at
such time, minus (ii) the aggregate amount by which the Outstanding Balance of all Eligible Receivables of each Obligor and its Affiliates exceeds the Concentration Limit (if any) for such Obligor. 
 “Obligations” shall have the meaning set forth in Section 2.1. 
 “Obligor” means a Person (including any guarantor) obligated to make payments pursuant to a Contract or by reason of the
arrangements existing within an Agent-Hierarchy. 
 “Outstanding Balance” of any Receivable at any time means
the then outstanding principal balance thereof. 
 “Person” means an individual, partnership, corporation
(including a business trust), joint stock company, trust, unincorporated association, joint venture or other entity, or a government or any political subdivision or agency thereof. 
 “Policy Holder” means, in respect of any Receivable, the Person that shall have requested the issuance of the Insurance
Product, which request shall have led to the creation of such Receivable, and/or the Person or Persons that shall have the obligation to make payments of the premium and related charges for such Insurance Product. 
 “Potential Amortization Event” means an event which, with the passage of time or the giving of notice, or both, would
constitute an Amortization Event. 
 “Purchaser Value of Future Commissions” means, on any day, the present
value of all future commissions payable as of such date to Obligors by AIL in connection with the origination of Insurance Products as calculated in accordance with Exhibit VIII to the Agreement. 
  

 42 

 “Premium” means, with respect to any Insurance Product, any and all
premiums received and to be received by AIL from the applicable Policy Holder in connection with the issuance of such Insurance Product. 
 “Premium Interest” means, with respect to any Premium received or receivable by AIL in respect of any Insurance Product that shall have been arranged by an Obligor, a portion of such Premium equal in
amount to the commission or other similar fee that is or will be payable to such Obligor by AIL upon remittance of such Premium to AIL. 
 “Proposed Reduction Date” has the meaning set forth in Section 1.3. 
 “Purchase Limit” means $125,000,000. 
 “Purchase Notice” has the meaning set forth
in Section 1.2. 
 “Purchase Price” means, with respect to any Incremental Purchase of a
Purchaser Interest, the amount paid to Seller for such Purchaser Interest which shall not exceed the least of (i) the amount requested by Seller in the applicable Purchase Notice, (ii) the unused portion of the Purchase Limit on the
applicable purchase date, (iii) the Commitment Availability on the applicable purchase date and (iv) the excess, if any, of the Net Receivables Balance on the applicable purchase date over the aggregate outstanding amount of Capital
without taking into account such proposed Incremental Purchase. 
 “Purchaser” means TMK Re, Ltd. 

“Purchaser Interest” means, at any time, an undivided percentage ownership interest (computed as set forth below)
associated with a designated amount of Capital, selected pursuant to the terms and conditions hereof in (i) each Receivable arising prior to the time of the most recent computation or recomputation of such undivided interest, (ii) all
Related Security with respect to each such Receivable, and (iii) all Collections with respect to, and other proceeds of, each such Receivable. Each such undivided percentage interest shall equal: 
  

					
		 	    C    	 	
		 	NRB	 	

 where: 
  

					
	C	  	=	  	the Capital of such Purchaser Interest.
			
	NRB	  	=	  	the Net Receivables Balance.

 Such undivided percentage ownership interest shall be initially computed on its date of purchase.
Thereafter, until its Amortization Date, each Purchaser Interest shall be automatically recomputed (or deemed to be recomputed) on each day prior to its Amortization Date. The variable percentage represented by any Purchaser Interest as computed (
or deemed recomputed) as of the close of the business day immediately preceding its Amortization Date shall remain constant at all times after such Amortization Date. 
  

 43 

 “Receivable” means the indebtedness and other obligations owed by an
Obligor to AIL (but for giving effect to any transfer or conveyance under the Receivables Sale Agreement or this Agreement), whether constituting an account, chattel paper, instrument or general intangible, whether arising prior to, contemporaneous
with or subsequent to the execution of this Agreement, and existing in connection with any Insurance Product issued by AIL (or an Affiliate thereof), the extension of credit by AIL to an Obligor (whether constituting an advance against anticipated
premiums, a working capital advance or an extension of credit for any other purpose) or the rendering of any services by AIL to an Obligor. “Receivable” shall include, without limitation, (i) any “debit balance,” “agent
debit balance” or “actual debit balance,” or any similar or successor concept thereto, owing at any time by an Obligor to AIL, (ii) any amounts advanced to an Obligor by AIL, such as an annualized payment, commission advance,
regular advance, special advance, loan, indebtedness, obligation for repayment, working capital advance, public relations advance, bonus, group insurance premium, mailing expense advance, training advance, union dues payment, lease payment, finance
charge payment, or any other advance of any type, whether with respect to commissions (whether annualized, renewal, override or any other type or kind), earnings, compensation, payments, service fees, bonuses, incentives, credits, monies due, sums
due or other amounts earned or expected to be earned by such Obligor and (iii) the obligation of such Obligor to pay any Finance Charges with respect to any of the foregoing. Indebtedness and other rights and obligations arising from any one
transaction, notwithstanding the joint or several obligation of more than one Obligor thereon, shall constitute a single Receivable separate from a Receivable consisting of the indebtedness and other rights and obligations arising from any other
transaction. 
 “Receivables Sale Agreement” means the Receivables Sale Agreement dated as of
December 21,1999, as amended and restated as of march 31,2000, between AIL, as seller, and Seller, as buyer, as the same may from time to time be amended, restated, supplemented or otherwise modified and in effect from time to time. 

“Records” means, with respect to any Receivable, all Contracts and other documents, books, records and other
information (including, without limitation, computer programs, tapes, disks, punch cards, data processing software and related property and rights) relating to such Receivable, any Related Security therefor and the related Obligor(s). 
 “Reduction Notice” has the meaning set forth in Section 1.3. 
 “Regular Advance Receivable” means a Receivable which represents monies advanced or prepaid to the applicable Insurance
Agent, as commissions for a new Insurance Product, by AIL (and not by any other Person in whole or in part) based exclusively upon (and not exceeding the commissions payable in respect of) the first year’s premium for such new Insurance Product
without regard to any premiums (or commissions thereon) for any subsequent periods. 
  

 44 

 “Regulatory Action Level Event” means a
“regulatory-action-level-event” as such term is defined in Section 27-1-36-35 of the Indiana Code, as the same may be amended, modified, recodified or reenacted, in whole or in part, including all rules and regulations promulgated
thereunder. 
 “Regulatory Control Event” means any event that causes the applicable entity to be placed
under supervision or any other regulatory control pursuant to Article 27-9 of the Indiana Code or any parallel provision in any other state law, or any successor provisions, as any of the foregoing may be amended, modified, recodified or reenacted,
in whole or in part, including all rules and regulations promulgated thereunder. 
 “Reinvestment” has the
meaning set forth in Section 2.2. 
 “Related Security” means, with respect to any Receivable:

 (i) all of Seller’s interest (including any assignment or pledge in favor of the Seller or any offset rights held by
Seller) in or to (A) any and all commissions, annualized commissions, renewal commissions, override commissions, earnings, compensation, payments, service fees, bonuses, incentives, credits, monies due, sums due or other amounts, whether earned
or unearned or that may at any time be or become payable to the related Obligor, whether existing in connection with any Receivable or otherwise, by AIL or any Affiliate thereof and (B) any and all premiums and related payments due from Policy
Holders in respect of any Insurance Product the issuance or proposed issuance of which shall have given rise to such Receivable, to the extent such premiums and related payments are allocable to the commissions payable by AIL to the applicable
Obligor in respect of such Insurance Product; 
 (ii) all of Seller’s interest (including any assignment or pledge in
favor of the Seller or any offset rights held by the Seller) in any other assets or interests in property of the applicable Insurance Agent or Agent-Hierarchy, 
 (iii) all other security interests or liens and property subject thereto from time to time, if any, purporting to secure payment of such
Receivable, whether pursuant to a Contract related to such Receivable or otherwise, together with all financing statements and security agreements describing any such arrangements securing such Receivable, 
 (iv) all guaranties, contracts of suretyship, insurance and other agreements or arrangements of whatever character from time to time
supporting or securing payment of such Receivable whether pursuant to a Contract related to such Receivable or otherwise, 
 (v) all Records related to such Receivable, 
 (vi) all of Seller’s right, title and interest in, to and under
the Receivables Sale Agreement, and 
  

 45 

 (vii) all proceeds of any of the foregoing. 
 “Required Notice Period” means a period of two Business Days. 
 “Seller” has the meaning set forth in the preamble to this Agreement. 
 “Seller Interest” means, at any time, an undivided percentage ownership interest of Seller in the Receivables, Related
Security and all Collections with respect thereto equal to (i) one, minus (ii) the aggregate of the Purchaser Interests. 
 “Seller Parties” has the meaning set forth in the preamble to this Agreement. 
 “Servicer” means at any time the Person (which may be the Agent) then authorized pursuant to Article VIII to service, administer and collect Receivables. 
 “Servicing Fee” has the meaning set forth in Section 6.6. 
 “Settlement Date” means (A) the 15th day of each month. 
 “Settlement Period” means (A) in respect of each Purchaser Interest of Purchaser, the calendar month then most
recently ended. 
 “SGA” means a Person that (i) has been engaged by AIL as a “state general
agent”, (ii) serves as the senior manager of an Agent-Hierarchy and (iii) has guaranteed to AIL the repayment in full of all Receivables owing by any member of such Agent-Hierarchy. 
 “SGA Net Worth” means, with respect to any SGA at any time of determination, (i) the present value of all future
commissions payable as of such date to such SGA or to any member of its Agent-Hierarchy by AIL in connection with the origination of Insurance Products by such Agent-Hierarchy as calculated in accordance with Exhibit VIII to the Agreement
minus (ii) the aggregate Outstanding Balance of all Receivable then owing by such SGA or any member of its Agent-Hierarchy. 
 “Subordinated Note” means the Subordinated Note issued under and in connection with the Receivables Sale Agreement, as the same may be amended, restated, supplemented or otherwise modified from time
to time. 
 “Subsidiary” of a Person means (i) any corporation more than 50% of the outstanding
securities having ordinary voting power of which shall at the time be owned or controlled, directly or indirectly, by such Person or by one or more of its Subsidiaries or by such Person and one or more of its Subsidiaries, or (ii) any
partnership, association, joint venture or similar business organization more than 50% of the ownership interests having ordinary voting power of which shall at the time be so owned or controlled. Unless otherwise expressly provided, all references
herein to a “Subsidiary” shall mean a Subsidiary of Seller. 
  

 46 

 “Torchmark” means Torchmark Corporation, a Delaware corporation, and its
successors. 
 “Torchmark Entities” means, collectively, AIL and Seller. 
 “Total Adjusted Capital” means the total adjusted capital as determined in accordance with the risk-based capital
instructions adopted by the NAIC, as such instructions may be amended, modified, supplemented or restated from time to time. For reference purposes only, such term is also defined in Section 27-1-36-24 of the Indiana Code. 
 “Transaction Documents” means, collectively, this Agreement, each Purchase Notice, the Receivables Sale Agreement, the
Subordinated Note and all other instruments, documents and agreements executed and delivered in connection herewith. 
 “UCC” means the Uniform Commercial Code as from time to time in effect in the specified jurisdiction. 
 “Unsupported Receivable” means any Receivable which as of any date is owing by a member of an Agent-Hierarchy the SGA in respect of which (i) does not have a positive SGA Net Worth as of such date and (ii) is an
Inactive Insurance Agent on such date. 
 All accounting terms not specifically defined herein shall be construed in accordance with
generally accepted accounting principles. All terms used in Article 9 of the UCC in the State of Delaware, and not specifically defined herein, are used herein as defined in such Article 9. 
  

 47 

 EXHIBIT II 
 FORM OF PURCHASE NOTICE 
 [Date] 
 TMK Re, Ltd. 
 Attention: Danny H. Almond 
 Re: Purchase Notice 
 Ladies and Gentlemen: 
 The undersigned refers to the Receivables Purchase Agreement, dated as of December 31, 2008 (the “Receivables Purchase Agreement,” the
terms defined therein being used herein as therein defined), among the undersigned, as Seller and American Income Life Insurance Company, as initial Servicer, TMK Re, Ltd. as Purchaser and hereby gives you notice, irrevocably, pursuant to
Section 1.2 of the Receivables Purchase Agreement, that the undersigned hereby requests an Incremental Purchase under the Receivables Purchase Agreement, and in that connection sets forth below the information relating to such Incremental
Purchase (the “Proposed Purchase”) as required by Section 1.2 of the Receivables Purchase Agreement: 
 (i) The Business Day of
the Proposed Purchase is [insert purchase date], which date is at least three (3) Business Days after the date hereof and is a Settlement Date. 
 (ii) The requested Purchase Price in respect of the Proposed Purchase is $            . 
 (iii) The requested interest rate is
                    ]. 
  

 48 

 The undersigned hereby certifies that the following statements are true on the date hereof, and will be
true on the date of the Proposed Purchase (before and after giving effect to the Proposed Purchase): 
 (i) the representations and
warranties of the undersigned set forth in Section 3.1 of the Receivables Purchase Agreement are true and correct on and as of the date of such Proposed Purchase as though made on and as of such date; 
 (ii) no event has occurred and is continuing, or would result from such Proposed Purchase, that will constitute an Amortization Event or a Potential
Amortization Event; and 
 (iii) the Amortization Date shall not have occurred, the aggregate Capital of all Purchaser Interests shall not
exceed the Purchase Limit and the aggregate Purchaser Interests shall not exceed 100%. 
  

			
	 Very truly yours,

	
	 AILIC RECEIVABLES CORPORATION

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

 Signature Page to 
 Purchase Notice 
  

 49 

 EXHIBIT III 
 PLACES OF BUSINESS OF THE SELLER PARTIES; 
 LOCATIONS OF RECORDS; 
 FEDERAL EMPLOYER IDENTIFICATION NUMBER(S) 
 AILIC
RECEIVABLES CORPORATION 
 Principal Place of Business 
 None, except: 
 3700 South Stonebridge Drive 
 McKinney,
Texas 75070 
 Location(s) of Records 
 None, except:

 3700 South Stonebridge Drive 
 McKinney, Texas 75070

 Federal Employer Identification Number(s) 
 None,
except: 
 75-2852508 
 Corporate, Partnership Trade
and Assumed Names 
 None. 
 AMERICAN INCOME LIFE
INSURANCE COMPANY 
 Principal Place of Business 
 None, except: 
 1200 Wooded Acres 
 Waco, Texas 76710

  

 50 

 Location(s) of Records 
 None, except: 
 1200 Wooded Acres 
 Waco, Texas 76710

 3700 South Stonebridge Drive 
 McKinney, Texas 75070

 Federal Employer Identification Number(s) 
 None,
except: 
 74-1365939 
 Corporate, Partnership Trade and
Assumed Names 
 None. 
  

 51 

 EXHIBIT IV 
 FORM OF COMPLIANCE CERTIFICATE 
 To: TMK Re, Ltd. 
 This Compliance Certificate is furnished pursuant to that certain Receivables Purchase Agreement dated as of December 31, 2008 among AILIC
Receivables Corporation (the “Seller”), American Income Life Insurance Company (the “Servicer”), and TMK Re, Ltd. (the “Purchaser”) (the “Agreement”). Terms used herein and not otherwise
defined herein shall have the meanings assigned under the Agreement. 
 THE UNDERSIGNED HEREBY CERTIFIES THAT: 
 1. I am the duly elected                     
of [AIL][Seller]. 
 2. I have reviewed the terms of the Agreement and I have made, or have caused to be made under my supervision, a
detailed review of the transactions and conditions of [AIL][Seller] and its Subsidiaries during the accounting period covered by the attached financial statements. 
 3. The examinations described in paragraph 2 did not disclose, and I have no knowledge of, the existence of any condition or event which (i) constitutes an Amortization Event or Potential Amortization Event, as
each such term is defined under the Agreement, during or at the end of the accounting period covered by the attached financial statements or as of the date of this Certificate, except as set forth in paragraph 5 below, or (ii) which has had or
is reasonably likely to have a Material Adverse Effect. 
 4. Schedule I attached hereto sets forth financial data and computations
evidencing the compliance with certain covenants of the Agreement, all of which data and computations are true, complete and correct. 
 5.
Described below are the exceptions, if any, to paragraph 3 by listing, in detail, the nature of the condition or event, the period during which it has existed and the action which Seller has taken, is taking, or proposes to take with respect to each
such condition or event: 
 It is understood and acknowledged that the undersigned is executing this Certificate not in an individual
capacity but solely in his or her capacity as an officer of the Seller and is without any personal liability as to the matters contained in this certificate. 
  

 52 

 The foregoing certifications, together with the computations set forth in Schedule I hereto and
the financial statements delivered with this Certificate in support hereof, are made and delivered this     day of             ,
            . 
  

	
	  

	 Name:

	 Title:

 Signature Page to 
 Compliance Certificate 
  

 53 

 SCHEDULE I TO COMPLIANCE CERTIFICATE 
  

	A.	Unless otherwise defined herein, the terms used in this Compliance Certificate have the meanings ascribed thereto in the Agreement. 

 This schedule relates to the month ended:
                             
  

 54 

 EXHIBIT V 
 CREDIT AND COLLECTION POLICY 
 (Attached) 
  

 55 

 EXHIBIT VI 
 FORM OF CONTRACT(S) 
 (Attached) 
  

 56 

 EXHIBIT VII 
 FORM OF MONTHLY REPORT 
 (Attached) 
 [In addition to such other information as may be included on this exhibit, each Monthly Report should set forth the following with respect to the related
Calculation Period (as defined in the Receivables Sale Agreement): (i) the aggregate Outstanding Balance of Receivables created and conveyed by AIL to Seller in purchases pursuant to the Receivables Sale Agreement during such Calculation
Period, as well as the Net Receivables Balance included therein, (ii) the aggregate purchase price payable to AIL in respect of such purchases, specifying the Discount Factor (as defined in the Receivables Sale Agreement) in effect for such
Calculation Period and the aggregate Purchase Price Credits (as defined in the Receivables Sale Agreement) deducted in calculating such aggregate purchase price, (iii) the aggregate amount of funds received by the Servicer during such
Calculation Period which are to be applied as Reinvestments, (iv) the increase or decrease in the amount outstanding under the Subordinated Note as of the end of such Calculation Period after giving effect to the application of funds toward the
aggregate purchase price and the restrictions on Subordinated Loans (as defined in the Receivables Sale Agreement) set forth in Section 1.2(a)(ii) of the Receivables Sale Agreement, and (v) the amount of any capital contribution made by
AIL to Seller as of the end of such Calculation Period pursuant to Section 1.2(b) of the Receivables Sale Agreement.] 
 [In the event
Seller elects to have any Monthly Report serve as a Purchase Notice, the following shall be appended to such Monthly Report as the last page thereof: 
 Seller gives you notice, irrevocably, pursuant to Section 1.2 of the Receivables Purchase Agreement, that the undersigned hereby requests an Incremental Purchase under the Receivables Purchase Agreement, and in
that connection sets forth below the information relating to such Incremental Purchase (the “Proposed Purchase”) as required by Section 1.2 of the Receivables Purchase Agreement: 
 (i) The Business Day of the Proposed Purchase is [insert purchase date], which date is at least three (3) Business Days after the
date hereof and is a Settlement Date. 
 (ii) The requested Purchase Price in respect of the Proposed Purchase is
$            . 
 (iii) The requested interest rate is
                            ]. 
 The undersigned hereby certifies that the following statements are true on the date hereof, and will be true on the date of the Proposed
Purchase (before and after giving effect to the Proposed Purchase): 
  

 57 

 (i) the representations and warranties of the undersigned set forth in Section 5.1
of the Receivables Purchase Agreement are true and correct on and as of the date of such Proposed Purchase as though made on and as of such date; 
 (ii) no event has occurred and is continuing, or would result from such Proposed Purchase, that will constitute an Amortization Event or a Potential Amortization Event; and 
 (iii) the Amortization Date shall not have occurred, the aggregate Capital of all Purchaser Interests shall not exceed the Purchase Limit
and the aggregate Purchaser Interests shall not exceed 100%. 
  

			
	Very truly yours,
	
	AILIC RECEIVABLES CORPORATION
		
	By:	 	  

	Name:	 	
	Title: ]	 	

  

 58 

 SCHEDULE B 
 DOCUMENTS TO BE DELIVERED TO THE AGENT 
 ON OR PRIOR TO THE INITIAL PURCHASE 
 (Attached) 
  

 59

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