Document:

Form of Purchase Agreement

 EXHIBIT 10.1 
  
 FORM OF PURCHASE AGREEMENT 
  
 August 5, 2004 
  
 ISTA Pharmaceuticals, Inc. 
 15279 Alton Parkway, Suite 100 
 Irvine, CA 92618 
  
 Ladies and Gentlemen:

  
 The undersigned,
             (the “Investor”), hereby confirms its agreement with you as follows: 
  
 1.    This Purchase Agreement (the “Agreement”) is made as of August 5, 2004 between ISTA Pharmaceuticals, Inc., a Delaware
corporation (the “Company”), and the Investor. 
  
 2.    As of the Closing (as defined below) and subject to the terms and conditions hereof, the Company and the Investor agree that the Investor will purchase from the Company and the Company will issue and sell to the
Investor              shares of common stock (the “Shares”) of the Company, for a purchase price of $8.50 per share, or an aggregate purchase price of
$            . The Investor acknowledges that the offering of the Shares is not a firm commitment underwriting. 
  
 3.    The completion of the purchase and sale of the Shares shall occur at a closing (the
“Closing”) which is expected to occur on or about August 11, 2004. After the execution of this Agreement by the Investor, the Investor shall remit to the Company by wire transfer to the account designated by the Company in this Agreement
the amount of funds equal to the aggregate purchase price of the Shares. Unless otherwise requested by the Investor and agreed to by the Company, the Shares purchased by the Investor will be delivered by electronic book-entry at The Depository Trust
Company (“DTC”), registered in the Investor’s name and address as set forth below, and will be released by U.S. Stock Transfer Corporation, the Company’s transfer agent (the “Transfer Agent”), to the Investor at the
Closing. After the execution of this Agreement by the Investor, the Investor shall direct the broker-dealer at which the account or accounts to be credited with the Shares are maintained to set up a deposit/withdrawal at custodian (“DWAC”)
instructing the Transfer Agent to credit such account or accounts with the Shares. 
  
 4.    The offering and sale of the Shares are being made pursuant to the Registration Statement and Prospectus (as such terms are defined below). The Investor acknowledges that the Company intends
to enter into subscription agreements in substantially the same form as this Agreement with certain other investors and intends to offer and sell (“Offering”) up to 2,500,000 
  

 1 

 shares of its common stock pursuant to the Registration Statement and Prospectus. In the event the Company does not
receive funds from investors for the purchase of at least 1,250,000 shares of common stock of the Company (the “Minimum Shares”), the Offering will terminate and any funds received by the Company will be returned promptly to such investors
(including any funds received from Investor intended for its purchase of the Shares). In the event the Offering terminates for the above reason (or for any other reason), this Agreement shall automatically terminate without notice and without
liability to any party. 
  
 5.    The Company
shall deliver to the Investor and file with the Securities and Exchange Commission (the “Commission”) a prospectus and prospectus supplement (collectively the “Prospectus”) with respect to the Registration Statement reflecting
the offering of the Shares in conformity with the Securities Act (as defined below), including Rule 424(b) thereunder. The Investor agrees that such Prospectus may be delivered to it in electronic form. 
  
 6.    The Company intends to enter into a Placement
Agency Agreement (the “Placement Agency Agreement”) with Banc of America Securities LLC, Thomas Weisel Partners LLC, Lazard Frères & Co. LLC and C.E. Unterberg, Towbin LLC who will act as placement agents with respect to the
Offering and receive a fee in connection with the sale of the Shares. A copy of the Placement Agency Agreement is available upon request. In the event the Placement Agency Agreement is terminated on or prior to the Closing, the Company shall have
the right immediately upon written notice to Investor to terminate this Agreement without liability to Investor. In such event, the Company shall promptly return any funds received from the Investor intended for its purchase of the Shares.

  
 7.    The Company hereby makes the
following representations, warranties and covenants to the Investor: 
  
 (a)    Each of the Company and the Subsidiaries (as defined below) is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or
organization (as applicable), with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary is in violation of any of the provisions of its
respective certificate or articles of incorporation, bylaws or other organizational or charter documents, except where such violation would not, individually or in the aggregate, have a material adverse effect on the business, properties, financial
condition or results of operations of the Company and the Subsidiaries, taken as a whole, from that set forth in the Registration Statement and the Prospectus (exclusive of any amendments or supplements thereto subsequent to the date of this
Agreement) or materially impair the Company’s ability to perform its obligations under this Agreement (a “Material Adverse Effect”). For purposes of this Agreement, (i) “Subsidiary” means any Person organized in the United
States in which the Company directly or indirectly owns 50% or more of the capital stock or holds 50% or more of the equity or similar interest and (ii) “Person” means an individual or corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind. 
  
 (b)    The Company has the requisite corporate power and authority to enter into and to consummate the
transactions contemplated by this Agreement and otherwise to carry out 
  

 2 

 its obligations hereunder. The execution and delivery of this Agreement by the Company and the consummation by it of the
transactions contemplated hereunder have been duly authorized by all necessary action on the part of the Company and no further consent or action is required by the Company, its Board of Directors or its stockholders. This Agreement has been (or
upon delivery will be) duly executed by the Company and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as may
be limited by any bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws affecting the enforcement of creditors’ rights generally or by general principles of equity. 
  
 (c)    The execution, delivery and performance of this
Agreement by the Company and the consummation by the Company of the transactions contemplated hereby do not and will not (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or articles of
incorporation, bylaws or other organizational or charter documents, or (ii) subject to obtaining the Required Approvals (as defined below), conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a
default) under, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary
debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) result in a violation of any law, rule, regulation, order,
judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations) and the rules and regulations of any
self-regulatory organization to which the Company or its securities are subject, or by which any property or asset of the Company or a Subsidiary is bound or affected, except in each case, such as would not, individually or in the aggregate, have a
Material Adverse Effect. 
  
 (d)    Neither
the Company nor any Subsidiary is required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other
Person in connection with the execution, delivery and performance by the Company of this Agreement, other than (i) the required filing of the Prospectus, (ii) applicable state securities law filings, (iii) the filing of the listing application with
the Nasdaq National Market, and (iv) in all other cases, where the failure to obtain such consent, waiver, authorization or order, or to give such notice or make such filing or registration would not, individually or in the aggregate, have a
Material Adverse Effect (collectively, the “Required Approvals”). 
  
 (e)    The Shares are duly authorized and, when issued and paid for in accordance with the terms hereof, will be duly and validly issued, fully paid and nonassessable, free and clear of all liens,
encumbrances and rights of first refusal (“Liens”). The Company has reserved a sufficient number of duly authorized shares of common stock to issue all of the Shares. At the Closing, the Shares shall have been listed for quotation on the
Nasdaq National Market (the “Trading Market”). 
  
 (f)    The Company’s Registration Statement on Form S-3 (File No. 333-114815) (including all information or documents incorporated by reference therein, the 
  

 3 

 “Registration Statement”) was declared effective by the Commission on May 18, 2004. The Registration Statement
is effective on the date hereof and the Company has not received notice that the Commission has issued or intends to issue a stop order with respect to the Registration Statement or that the Commission otherwise has suspended or withdrawn the
effectiveness of the Registration Statement, either temporarily or permanently, or intends or has threatened in writing to do so. The “Plan of Distribution” section in the Registration Statement describes the issuance and sale of the
Shares. The Registration Statement, as of the time it was declared effective, and any amendments or supplements thereto, and any prospectus included therein complied, and the Prospectus complies, in all material respects with the requirements of the
Securities Act of 1933, as amended (the “Securities Act”) and the Securities Exchange Act of 1934, as amended (the ‘Exchange Act”) and the rules and regulations of the Commission promulgated thereunder, as applicable, and none of
such Registration Statement or any such Prospectus contains or, at the time of filing with the Commission contained any untrue statement of material fact or omits or, at the time of filing with the Commission, omitted to state any material fact
required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. The offering, sale and issuance of the Shares to the Investor are registered under the
Securities Act by the Registration Statement. The Shares are being issued as described in the Registration Statement. 
  
 (g)    The representations and warranties of the Company set forth in Section 7(a)-(f) shall survive the Closing for a period of
twelve (12) months from the Closing. 
  
 (h)    The Company shall (i) before the Trading Market opens on the next trading day after the date hereof (but not before the date the Company has received commitments to purchase the Minimum Shares), issue a press
release, disclosing all material aspects of the transactions contemplated hereby and (ii) make such other filings and notices in the manner and time required by the Commission with the respect to the transaction contemplated hereby. The Company
shall not identify the Investor by name in any press release or public filing, or otherwise publicly disclose the Investor’s name, without the Investor’s prior, written consent, unless required by law or the rules and regulations of any
self-regulatory organization which the Company or its securities are subject. 
  
 8.    The Investor hereby makes the following representations, warranties and covenants to the Company: 
  
 (a)    On the date hereof and at the Closing, the Investor, together with its affiliates (as that term is defined under Rule 405 of
the Securities Act), does not beneficially own 5% or more of the common stock of the Company. The Investor represents that it has received the Prospectus prior to or in connection with its receipt of this Agreement. The Investor in connection with
its decision to purchase the Shares relied only upon the Prospectus and the documents incorporated by reference therein, and the representations and warranties of the Company contained herein. 
  

 4 

 (b)    The Investor, together with its affiliates (as that term is defined under Rule
405 of the Securities Act), has not, prior to the date of this Agreement, sold, offered to sell, solicited offers to buy, disposed of, loaned, pledged or granted any right with respect to (collectively, a “Disposition”), the Shares
purchased in the Offering. Such prohibited hedging or other transactions would include, without limitation, effecting any short sale or having in effect any short position (whether or not such sale or position is against the box and regardless of
when such position was entered into) or any purchase, sale or grant of any right (including, without limitation, any put or call option) with respect to the Shares purchased in the offering made by the Prospectus. 
  
 (c)    The Investor shall not issue any press release or
make any other public announcement relating to this Agreement unless (i) the content thereof is mutually agreed to by the Company and the Investor, or (ii) the Investor is advised by its counsel that such press release or public announcement is
required by law. 
  
 (d)    The Investor has
the requisite power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder. The execution and delivery of this Agreement by the Investor and the consummation
by it of the transactions contemplated hereunder have been duly authorized by all necessary action on the part of the Investor. This Agreement has been duly executed by the Investor and, when delivered in accordance with the terms hereof, will
constitute the valid and binding obligation of the Investor enforceable against the Investor in accordance with its terms, except as may be limited by any bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar
laws affecting the enforcement of creditors’ rights generally or by general principles of equity. 
  
 (e)    The Investor understands that nothing in this Agreement or any other materials presented to the Investor in connection with the
purchase or sale of the Shares constitutes legal, tax or investment advice. The Investor has consulted such legal, tax or investment advisors as it, in its sole discretion, deems necessary or appropriate in connection with its purchase of the
Shares. 
  
 9.    Performance of the
parties’ respective obligations hereunder shall be subject to the following conditions: 
  
 (a)    The Investor’s obligation to purchase the Shares will be subject to the accuracy of the representations and warranties made by the Company in Section 7 hereof as of the Closing.

  
 (b)    The Company’s obligation to
sell and issue to the Investor the Shares will be subject to the accuracy of the representations and warranties made by the Investor in Section 8 hereof as of the Closing. In addition, the obligations of the Company hereunder are subject to no
change or development involving a prospective change, in the condition, financial or otherwise, or in the earnings, business or operations of the Company and its Subsidiaries, taken as a whole, 
  

 5 

 from that set forth in the Registration Statement and the Prospectus (exclusive of any amendments or supplements thereto
subsequent to the date of this Agreement) that, in the Company’s judgment, is a Material Adverse Effect occurring on or prior to the Closing. 
  
 10.    This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of New York, without
giving effect to the principles of conflicts of law. 
  
 11.    This Agreement may be executed in two or more counterparts, each of which shall constitute an original, but all of which, when taken together, shall constitute but one instrument, and shall become effective when
one or more counterparts have been signed by each party hereto and delivered to the other parties. 
  
 [Remainder of page intentionally left blank.] 
  

 6 

 Please confirm that the foregoing correctly sets forth the agreement between us by signing in the space provided below
for that purpose. 
  
 Name of Investor:                                 
                                    
  
 By:                                      
                                        
                   
  
 Print Name:                                  
                                        
      
  
 Title:                                    
                                        
                 
  
 Address:                                    
                                        
           
  
                                       
                                        
                          
  
                                       
                                        
                          
  
 Tax ID No.:                                
                                        
        
  
 Contact Name:                                 
                                         

  
 Telephone:                                  
                                        
        
  
 Name in which book-entry should be made (if different): 
  
                                       
                                        
                          
  
 AGREED AND ACCEPTED: 
  
 ISTA Pharmaceuticals, Inc. 
 a Delaware corporation 
  
 By:_______________________________________________ 
 Name: 
 Title: 
  

 7 

 ISTA Pharmaceuticals, Inc. hereby directs that the purchase price for the Shares of common stock being sold to the
Investor pursuant to the Purchase Agreement be wired to the following account: 
  
 Bank: 
 *

 ABA# 
 Credit to: 
 Account No. 
 Re: ISTA Pharmaceuticals, Inc. 
  
 *Complete address, if needed: 
  

 8Material Contract

 Exhibit 10.1 
  
 PURCHASE AND SALE AGREEMENT 
  

This Purchase and Sale Agreement (this “Agreement”) is entered into as of the 30th day of June, 2004, by and between State Street Bank and Trust Company, a Massachusetts trust company (“State Street”), Boston
Financial Data Services, Inc., a Massachusetts corporation (“BFDS”; collectively with State Street the “Buyer”), and Federated Services Company, a Pennsylvania corporation (the “Seller”).
The Buyer and the Seller are sometimes referred to herein individually as a “Party” and collectively, as the “Parties”. 
  
 PREAMBLE 
  
 The Seller, through its wholly-owned subsidiary, Federated Shareholder Services Company (the “Federated Transfer Agent”), provides
transfer agency services to certain investment companies that are registered under, or exempt from the registration requirements of, the Investment Company Act of 1940 as set forth in Exhibit A (the “Funds”). 
  
 This Agreement contemplates a transaction in which the Seller will sell to
Buyer, and the Buyer will purchase from Seller, substantially all of the assets and certain of the obligations of the Business (as hereinafter defined). 
  
 Now, therefore, in consideration of the premises and the mutual promises herein made, and in consideration of the representations, warranties, and
covenants herein contained, the Parties, intending to be legally bound, agree as follows. 
  
 ARTICLE I 
 DEFINITIONS 
  
 1.1. Definitions. As used in this Agreement, the following terms shall have the meanings specified in this Section
1: 
  
 “Adverse Consequences” means all
actions, suits, proceedings, hearings, investigations, charges, complaints, claims, demands, injunctions, judgments, orders, decrees, rulings, damages, dues, penalties, fines, costs, amounts paid in settlement, Liabilities, obligations, Taxes,
liens, losses, expenses, and fees, including court costs and reasonable attorneys’ fees and expenses. 
  
 “Affiliate” has the meaning set forth in Rule 12b-2 of the regulations promulgated under the Securities Exchange Act. 
  
 “Agreement” has the meaning set forth in the preface above.

  
 “ARGOS System” means the software and other
rights provided under and pursuant to (i) the System and License Agreement dated as of August 27, 2002 and (ii) Extended Software Maintenance Agreement dated as of February 24, 2003, each between Seller and ARGOS Computer Systems, Inc. 

 
 “Assignment of Contracts” shall mean an agreement in form
and substance substantially similar to the assignment of contracts attached hereto as Exhibit B. 
  

 “Assignment of Rockland Lease” shall mean an assignment and assumption of the Rockland
Lease and consent of the landlord thereto among Buyer, Seller and the landlord under the Rockland Lease substantially in the form attached hereto as Exhibit F. 
  
 “Assumed Liabilities” has the meaning set forth in Section 2.1 hereof. 
  
 “Books and Records” means all books and records necessary
for the conduct of the Business and created, generated and/or maintained by Seller (other than those required by law to be retained by the Seller, copies of which will be made available to the Buyer) including, without limitation, transaction
records, valuation data and prospectuses, sales literature, shareholder records, employee manuals, personnel records, supply records, inventory records and correspondence files. 
  
 “Bundled Services Agreement” means an agreement between Seller, or an Affiliate, and a Proprietary Fund,
that requires the provision of transfer agency services in addition to other services such as administrative or fund accounting services. 
  
 “Business” means that portion of the Seller’s business of acting as transfer agent for, and providing transfer agency services to,
the Funds, as currently conducted and as is designated as Buyer’s responsibility on the functionality matrix attached hereto as Exhibit C. 
  
 “Buyer” has the meaning set forth in the preface above. 
  
 “Buyer’s Benefit Plans” has the meaning set forth in Section 4.3(b)(iv) hereof. 
  
 “Buyer Pre-Closing Processing” has the meaning set forth in
Section 4.1(e) hereof. 
  
 “BFDS” has the
meaning set forth in the preface above. 
  
 “BFDS Hire
Date” has the meaning set forth in Section 4.3(a)(ii) hereof. 
  
 “Closing” has the meaning set forth in Section 2.1(a) hereof. 
  
 “Closing Date” has the meaning set forth in Section 2.1(a) hereof. 
  
 “COBRA Coverage” has the meaning set forth in Section 4.3(g) hereof. 
  
 “Code” means the Internal Revenue Code of 1986, as amended.

  
 “Comparable Employment” has the meaning set
forth in Section 4.3(a)(ii). 
  
 “Confidential
Information” means any and all: 
  
 (a)
trade secrets and proprietary business information of or relating exclusively to a Party and its Affiliates, including but not limited to information relating to technology and know-how, performance data, frequent trade monitoring processes,
strategic plans, market studies, marketing and sales plans, proposals, cost and pricing information including but not limited to recordkeeping fee amounts, competitive analyses, financial projections and budgets, all records and information relating
to employees, information relating 

  

 2 

 
to relationships with clients and vendors, client lists and any and all non-public personal information regarding the customers and/or consumers of a Party;
and 
  
 (b) notes, analyses, compilations,
studies, summaries and other material prepared by or for the other Party containing or based, in whole or in part, on any information included in the foregoing. 
  

“Deductible” has the meaning set forth in Section 6.2(a) hereof. 
  
 “Deductible Limit” has the meaning set forth in Section 6.2(a) hereof. 
  
 “Employee Benefit Plan” means any (a) nonqualified deferred
compensation or retirement plan or arrangement, (b) qualified defined contribution retirement plan or arrangement which is an Employee Pension Benefit Plan, (c) qualified defined benefit retirement plan or arrangement which is an Employee Pension
Benefit Plan (including any Multiemployer Plan), or (d) Employee Welfare Benefit Plan or material fringe benefit or other retirement, bonus, or incentive plan or program. 
  
 “Employee Pension Benefit Plan” has the meaning set forth in ERISA §3(2). 
  
 “Employee Welfare Benefit Plan” has the meaning set forth in
ERISA §3(1). 
  
 “Equipment” means the
equipment and other tangible personal property listed on Schedule 1.1(A). 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 
  
 “ERISA Affiliate” means each entity that is treated as a single employer with Seller for purposes of Code §414. 
  
 “Excluded Assets” shall mean the assets of that portion of
the Seller’s business of acting as transfer agent for, and providing transfer agency services to, the Funds which are not being transferred to Buyer pursuant to the terms of this Agreement, including without limitation, the Federated Funds TA
Agreement, all Shareholder Services Agreements, all Recordkeeping Agreements, all Mutual Fund Sales and Service Agreements, the North Hills Lease, any and all contracts relating to such North Hills Lease and the premises covered thereby, the FI
Tools, the SunGard Recovery Services Agreement, the phone systems and voicemail systems located at the Rockland Property, any furniture, equipment and inventory located at the premises covered by the North Hills Lease and the Restricted Contracts
(for so long as they continue to be Restricted Contracts). 
  
 “Federated Funds” means those Funds that are advised by an Affiliate of Seller. 
  
 “Federated Funds TA Agreement” means Sections Three and Five of that certain Amended and Restated Agreement for Fund Accounting Services,
Administrative Services, Transfer Agency Services and Custody Services Procurement, dated as of March 1, 1996, as amended and restated as of September 1, 1997 under and pursuant to which the Federated Transfer Agent renders transfer agency services
to the Federated Funds. 
  

 3 

 “Federated Pre-Closing E-Mail” has the meaning set forth in Section 4.1(e)
hereof. 
  
 “Federated Transfer Agent” has the
meaning set forth in the Preamble hereto. 
  
 “Federated
TA Employees” has the meaning set forth in Section 4.3(a)(i) hereof. 
  
 “Federated 401(k) Plan” has the meaning set forth in Section 4.3(b)(i) hereof. 
  
 “FI Tools” means certain proprietary software and systems of Seller or its Affiliates and identified on Schedule 1.1(B) hereto.

  
 “Funds” has the meaning set forth in the
Preamble hereto. 
  
 “Greater Vacations Schedule”
has the meaning set forth in Section 4.3(c) hereof. 
  
 “Hiring Criteria” has the meaning set forth in Section 4.3(a)(ii) hereof. 
  
 “Indemnified Party” has the meaning set forth in Section 6.4(a) hereof. 
  
 “Indemnifying Party” has the meaning set forth in Section
6.4(a) hereof. 
  
 “Intellectual Property”
means (a) inventions, whether or not patentable, whether or not reduced to practice or whether or not yet made the subject of a pending Patent application or applications, (b) ideas and conceptions of potentially patentable subject matter,
including, without limitation, any patent disclosures, whether or not reduced to practice and whether or not yet made the subject of a pending patent application or applications, (c) patents, (d) trademarks, (e) copyrights, (f) software, (g) trade
secrets and confidential, technical or business information (including ideas, formulas, compositions, inventions, and conceptions of inventions whether patentable or unpatentable and whether or not reduced to practice, (h) whether or not
confidential, technology (including know-how and show-how), manufacturing and production processes and techniques, research and development information, drawings, specifications, designs, plans, proposals, technical data, copyrightable works,
financial, marketing and business data, pricing and cost information, business and marketing plans and customer and supplier lists and information, (i) copies and tangible embodiments of all the foregoing, in whatever form or medium, (j) all rights
to obtain and rights to apply for patents, and to register trademarks and copyrights, (k) all rights under the License Agreements and any licenses, registered user agreements, technology or materials, transfer agreements, and other agreements or
instruments with respect to items in (a) to (j) above; and (l) all rights to sue and recover and retain damages and costs and attorneys’ fees for present and past infringement of any of the Intellectual Property rights hereinabove set out.

  
 “IRA Fee” means the annual fee payable by
shareholders of the Funds in respect of individual retirement accounts maintained in the Funds for and on behalf of such shareholders. 
  
 “Knowledge” means, in the case of Seller, the actual knowledge, after reasonable inquiry, of the persons listed on Schedule
1.1(C), and, in the case of Buyer, the actual knowledge, after reasonable inquiry, of the persons listed on Schedule 1.1(D). 
  

 4 

 “Law” means any federal, state, local, municipal, foreign, international, multinational,
or other administrative order, constitution, law, ordinance, principle of common law, court order, consent, decree, regulation, license, permit, statute, or treaty. 
  
 “Liability” means any liability, losses, claims, damages, expenses (including reasonable attorneys’
fees and accountants’ fees) (whether known or unknown, whether asserted or unasserted, whether absolute or contingent, whether accrued or unaccrued, whether liquidated or unliquidated, and whether due or to become due), including any liability
for Taxes. 
  
 “License Agreement” means a
license agreement, substantially in the form of Exhibit D, with respect to the use by Buyer of the FI Tools. 
  
 “Litigation” means any suit, action, arbitration, cause of action, claim, complaint, criminal prosecution, investigation, inquiry, demand
letter, governmental or other administrative proceedings, whether at law or at equity, before or by any Court, Governmental Authority, arbitrator or other tribunal. 
  
 “Material Adverse Effect” means any circumstance, change in, or effect on, the Business that, individually
or in the aggregate with any other circumstances, changes in, or effect on the Business is materially adverse to the business, operations (including employee relationships, customer relationships or supplier relationships), assets or liabilities
(including, without limitation, contingent liabilities), results of operations or the condition (financial or otherwise) of the Business. 
  
 “Material Contracts” means all material contracts relating to the Business (other than those which are Excluded Assets) and which are
listed on Schedule 1.1(E). 
  
 “Multiemployer
Plan” has the meaning set forth in ERISA §3(37). 
  
 “Mutual Fund Sales and Service Agreements” shall mean all agreements entered into by Seller and/or its Affiliates contracting for, among other things including but not limited to, sales services, the provision of
shareholder and/or administrative services to shareholders of the Funds. 
  
 “New Proprietary Funds TA Agreement” means, with respect to a Proprietary Fund that has a Bundled Services Agreement, a contract directly between Buyer or its Affiliate and the relevant Proprietary
Fund, on terms identical to the terms regarding the provision of transfer agency services under the Bundled Services Agreement. 
  
 “New TA Agreement” means an agreement, in form and substance substantially similar to the transfer agency services agreement attached
hereto as Exhibit E, between the Federated Funds and State Street. 
  
 “North Hills Lease” means that certain Lease Agreement dated as of February 12, 1999 between Zell Two Inc., as landlord, and Seller, as tenant, which provides for a lease of Parcel “F” in
the Second Revised Radice Office Park Plan recorded in the Office of the Recorder of Deeds of Allegheny County, Pennsylvania in Plan Book 134, pages 82 and 83 upon which is erected a five (5) story office building known as Pittsburgh Office and
Research Park, Building 

  

 5 

 
II, whose address is 5800 Corporate Drive, Pittsburgh, Pennsylvania 15237, paved parking areas and related improvements, as more particularly described
therein. 
  
 “Ordinary Course of Business” means
the ordinary course of business consistent with past custom and practice (including with respect to quantity and frequency). 
  
 “Party” has the meaning set forth in the preface above. 
  
 “Period of Restriction” means a period of eighteen (18) months from and after the Closing Date. 

 
 “Person” means an individual, a partnership, a
corporation, an association, a joint stock company, a trust, a joint venture, an unincorporated organization, or a governmental entity (or any department, agency, or political subdivision thereof). 
  
 “Prior Pension Plan” has the meaning set forth in Section
4.3(b)(i). 
  
 “Proprietary Funds” means each
Fund, or family of Funds, advised by an entity other than an Affiliate of Seller. 
  
 “Proprietary Funds TA Agreement” means each agreement identified on Schedule 1.1(F) hereto, including for this purpose, all Bundled Services Agreements, under and pursuant to which the
Federated Transfer Agent provides transfer agency services to a Proprietary Fund. 
  
 “Purchase Price” means $2,050,000, payable in immediately available funds. 
  
 “Recordkeeping Agreements” shall mean all agreements entered into by Seller and/or Affiliates with holders of omnibus accounts in the
Funds contracting for the provision of recordkeeping and/or sub-accounting services. 
  
 “Required ARGOS Amendments” shall have the meaning set forth in Section 4.2(g) hereof. 
  
 “Restricted Contract” has the meaning set forth in Section 4.2(b) hereof. 
  
 “Retention Eligible Employees” has the meaning set forth in
Section 4.3(f) hereof. 
  
 “Retention
Plans” has the meaning set forth in Section 4.3(e) hereof. 
  
 “Rockland Lease” means that certain Lease dated as of August 15, 1995 between Seller, as tenant, and Louis J. Grossman and Harry H. Blackey, as Trustees of Rockland Haverstraw Trust Landlord, as
landlord, which provides for a lease of approximately 50,400 rentable square feet in a building known as 1099 Hingham Street, Rockland, Massachusetts. 
  
 “Rockland Property” means that certain land and building thereon known as 1099 Hingham Street, Rockland, Massachusetts. 
  
 “Securities Exchange Act” means the Securities Exchange Act
of 1934, as amended. 
  

 6 

 “Security Interest” means any mortgage, pledge, lien, encumbrance, charge, or other
security interest, other than (a) mechanic’s, materialmen’s, and similar liens, (b) liens for Taxes not yet due and payable or for Taxes that the taxpayer is contesting in good faith through appropriate proceedings, (c) purchase money
liens and liens securing rental payments under capital lease arrangements, and (d) other liens arising in the Ordinary Course of Business and not incurred in connection with the borrowing of money. 
  
 “Seller” has the meaning set forth in the preface above.

  
 “Shared Resource” means the joint use by both
BFDS and Seller of the ARGOS System. 
  
 “Shareholder
Services Agreements” means all agreements entered into by Seller and/or its Affiliates contracting for the provision of shareholder and/or administrative services to shareholders of the Funds. 
  
 “STI Sub-Contracts” means (i) that certain Sub-Contract
dated of even date herewith by and between Seller and BFDS providing for the performance by BFDS of certain obligations of Seller under and pursuant to that certain Agreement for Shareholder Recordkeeping dated as of August 2, 1995 by and between
Seller and STI Classic Variable Trust, and (ii) that certain Sub-Contract dated of even date herewith by and between Seller and BFDS providing for the performance by BFDS of certain obligations of Seller under and pursuant to that certain Agreement
for Shareholder Recordkeeping dated as of February 16, 1994 by and between Seller and STI Classic Funds. 
  
 “State Street” has the meaning set forth in the preface above. 
  
 “Sub-Contracts” means the STI Sub-Contracts and the TexPool Sub-Contract. 
  
 “SunGard Recovery Services Agreement” means that certain
Recovery Services Agreement between SunGard Recovery Services LP and Seller dated on and as of September 1, 2003 with respect to certain “recovery services”, as defined therein, to be provided by SunGard for the benefit of Seller.

  
 “Tax” means any federal, state, local, or
foreign income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental (including taxes under Code Section 59A), customs duties, capital stock, franchise, profits, withholding,
social security (or similar), unemployment, disability, real property, personal property, sales, use, transfer, registration, value added, alternative or add-on minimum, estimated, or other tax of any kind whatsoever, including any interest,
penalty, or addition thereto, whether disputed or not. 
  
 “TexPool Sub-Contract” means that certain Sub-Contract dated of even date herewith by and between Seller and BFDS providing for the performance by BFDS of certain obligations of Federated Investors, Inc. under and pursuant
to that certain Agreement dated as of June 10, 2002 by and between Federated Investors, Inc. and Lehman Brothers Inc., allocating certain responsibilities between those parties as to the joint obligations of such parties under and pursuant to that
certain Investment Management and Related Services Agreement dated December 21, 2001. 
  

 7 

 “Third Party Claim” has the meaning set forth in Section 6.4(a) hereof.

  
 “Transfer Agency Assets” means the assets of
the Business (other than Excluded Assets) which are listed on Schedule 1.1(G). 
  
 “Transferred Employees” has the meaning set forth in Section 4.3(a)(ii) hereof. 
  
 “WARN Act” has the meaning set forth in Section 4.3(f) hereof. 
  
 ARTICLE II 
 TRANSFER OF TRANSFER AGENCY OPERATIONS 
  
 2.1.
Basic Transaction. On and subject to the terms and conditions of this Agreement, the Buyer agrees to purchase from the Seller, and the Seller agrees to sell to the Buyer against payment of the Purchase Price and assumption by the Buyer of the
obligations of Seller under the Material Contracts (other than those which are Excluded Assets), as described on Schedule 1.1(E), accruing on and after the Closing Date (the “Assumed Liabilities”), the Transfer Agency
Assets, but excluding the Excluded Assets. The Seller shall retain, and shall be responsible for paying, performing and discharging when due, and the Buyer shall not assume or have any responsibility for, any and all Liabilities of the Seller other
than the Assumed Liabilities (the “Excluded Liabilities”). 
  
 (a) Closing. The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place at the offices of Reed Smith LLP, 435 Sixth Avenue, Pittsburgh, Pennsylvania, 15219,
commencing at 9:00 a.m. local time on such date on or before June 30, 2004 as the conditions set forth in Article V shall have been satisfied or waived (the “Closing Date”). 
  
 (b) Deliveries at the Closing. At the Closing, (i)
the Seller will deliver to the Buyer the various certificates, instruments, and documents referred to in Section 5(a) hereof, (ii) the Buyer will deliver to the Seller the Purchase Price and the various certificates, instruments, and
documents referred to in Section 5(b) hereof. 
  
 (c) Other Deliveries. The IRA Fee for the calendar year 2004 shall be apportioned between the Parties hereto as of the Closing Date, with Seller entitled to an amount apportioned to the period through the Closing Date and Buyer
entitled to an amount apportioned to the period following the Closing Date. Promptly upon receipt thereof, Buyer shall remit to Seller its share of the IRA Fee for the calendar year 2004, which share shall be determined in accordance with the
foregoing sentence. The obligation contained in this Section 2.1(c) shall survive the Closing. 
  
 (d) Other Prorations. All expenses with respect to the Business shall be prorated between the Parties based on the full amount of
the latest available bills or statements on the basis of a three hundred sixty-five (365) day calendar year as of the Closing Date. All such expenses attributable to the Business through the Closing Date shall be the obligation of Seller; all such
expenses attributable to the Business following the Closing Date shall be paid by and be the obligation of Buyer. To the extent that any such expense is not discovered or the actual amount thereof is not known prior to the Closing, the Parties shall
cooperate with one 

  

 8 

 
another so that Buyer and Seller each pays its appropriate share of the expense, depending upon whether such expense relates to the period before or after
the Closing Date. 
  
 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES 
 OF
SELLER AND BUYER 
  
 3.1. Representations and Warranties of
the Seller. The Seller represents and warrants to the Buyer that the statements contained in this Section 3.1 are correct and complete as of the date of this Agreement, and will be correct and complete as of the Closing Date. 

 
 (a) Organization of the Seller. The Seller is a
corporation duly organized, validly existing, and in good standing under the laws of the jurisdiction of its incorporation. 
  
 (b) Authorization of Transaction. The Seller has full corporate power and authority to execute and deliver this Agreement and to
perform its obligations hereunder. This Agreement constitutes the valid and legally binding obligation of the Seller, enforceable in accordance with its terms and conditions. The Seller need not give any notice to, make any filing with, or obtain
any authorization, consent, or approval of any government or governmental agency in order to consummate the transactions contemplated by this Agreement. 
  
 (c) Noncontravention. Except for the consent of other parties to the Material Contracts listed on Schedule 3.1(f), neither
the execution and delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will (i) violate in any material respect any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or
other restriction of any government, governmental agency, or court to which the Seller is subject or any provision of its charter or bylaws or (ii) conflict with, result in a breach of, constitute a default under, result in the acceleration of,
create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under any material agreement, contract, lease, license, instrument, or other arrangement to which the Seller is a party or by which it is bound or to
which any of the Transfer Agency Assets is subject. 
  
 (d) Brokers’ Fees. The Seller has not taken any action to create any Liability or obligation to pay any fees or commissions to any broker, finder, or agent with respect to the transactions contemplated by this Agreement for
which the Buyer could become liable or obligated, and acknowledges that the satisfaction of any such Liability or obligation shall be the sole and exclusive obligation of Seller. 
  
 (e) Transfer Agency Assets. 
  
 (i) Seller, or an Affiliate of Seller, has title to, or a leasehold interest in, the Transfer Agency Assets
free of any Security Interest which could reasonably be expected to interfere with the use by Buyer of such Transfer Agency Assets in the manner currently used by Seller. 
  
 (ii) The Transfer Agency Assets, together with the Excluded Assets and the Shared Resources, constitute all
the assets Seller has used to conduct the business of 

  

 9 

 
acting as transfer agent for, and providing transfer agency services to, the Funds, as presently conducted. 
  
 (f) Material Contracts; Sub-Contracts. 
  
 (i) Except as disclosed on Schedule 1.1(E), the
Seller has delivered or made available to the Buyer true, correct and complete copies of all Material Contracts. 
  
 (ii) To the best of Seller’s Knowledge (A) all Material Contracts which constitute Transfer Agency Assets are in full force
and effect and are legally binding and enforceable by and against the Seller and the other parties thereto, subject to the express terms of such contracts and the possibility that enforceability may be limited by (1) bankruptcy, insolvency,
reorganization, moratorium, and other similar laws now or hereafter in effect relating to creditors’ rights and (2) principles of equity, and (B) neither Seller, nor any other Person to any of such Material Contracts is in violation thereof or
in default thereunder. Except as set forth on Schedule 3.1(f), (A) each Material Contract is freely and fully assignable to the Buyer without penalty or other adverse consequences and no consent of or notice to any third party (the
“Consents”) is required in order to validly assign and transfer the Material Contracts to Buyer and (B) Seller has the ability to enter into the Sub-Contracts without penalty or other adverse consequences and no consent of or notice
to any third party is required in order to validly enter into such Sub-Contracts. The Seller has not received notice of default by the Seller under any of the Material Contracts and no event has occurred which, with the passage of time or the giving
of notice or both, would constitute a default by the Seller thereunder. To the knowledge of the Seller, none of the other parties to any of the Material Contracts is in default thereunder, nor has an event occurred which, with the passage of time or
the giving of notice or both would constitute a default by such other party thereunder. The Seller has not received notice of the pending or threatened cancellation, revocation or termination of any of the Material Contracts, nor does it have
knowledge of any facts or circumstances that could reasonably be expected to lead to any such cancellation, revocation or termination. 
  
 (iii) Except to the extent Consents are not obtained prior to the closing, the continuation, validity and effectiveness of the Material
Contracts under the current terms thereof will in no way be affected by the execution of this Agreement and the other Documents or the consummation of the transactions contemplated herein and therein. 
  
 (g) Litigation. Except as disclosed on Schedule
3.1(g), there is no litigation or, to the Knowledge of Seller, investigation pending or, to the Knowledge of the Seller, threatened against, or otherwise adversely affecting, the Business or the Transfer Agency Assets or rights of Seller
relating thereto, before any court or governmental authority. The Seller is not subject to any outstanding litigation or order, which, individually or in the aggregate, would (i) prevent, hinder or delay the Seller from consummating the transactions
contemplated by this Agreement or (ii) call into question the validity of this Agreement or any action taken or to be taken pursuant hereto. 
  
 (h) Taxes. (i) All returns and reports in respect of Taxes required to be filed with respect to the Seller or, if a separate return
or report is filed by the Business, the Business have been timely filed; (ii) all Taxes required to be shown on such returns and reports or otherwise due have been timely paid; (iii) all such returns and reports are true, correct and 

  

 10 

 
complete in all material respects; (iv) no adjustment relating to such returns has been proposed formally or informally by any governmental authority and, to
the Knowledge of the Seller, no basis exists for any such adjustment; (v) there are no pending or, to the Knowledge of the Seller, threatened actions or proceedings for the assessment or collection of Taxes against the Seller or (insofar as either
relates to the activities or income of the Seller or the Business or could result in Liability of the Seller on the basis of joint and/or several liability) any corporation that was includible in the filing of a return with the Seller on a
consolidated or combined basis; (vi) there are no Tax Liens on any assets of the Business; (vii) none of the Assumed Liabilities is an obligation to make a payment that will not be deductible under Code § 280G; (viii) Seller has withheld and
paid all Taxes required to have been withheld and paid in connection with any amounts paid or owing to any employee, independent contractor, creditor, stockholder, or other third party, and all Forms W-2 and 1099 required with respect thereto have
been properly completed and timely filed. 
  
 (i)
Seller Employee Benefit Plans. Seller has not incurred any liability with respect to Transferred Employees (other than normal claims for benefits) under any provisions of ERISA or other applicable law relating to any Employee Benefit Plan
maintained by, contributed to or sponsored by Seller. Each Employee Benefit Plan maintained by, contributed to or sponsored by Seller has, in all material respects, been established, maintained and administered in compliance with its terms and
materially complies, both in form and operation, with the applicable provisions of ERISA, the Code and other applicable Laws. Neither any Seller nor any ERISA Affiliate of Seller has ever sponsored, participated in, maintained or contributed to any
plan or arrangement subject to Title IV of ERISA or Section 412 of the Code or a Multiemployer Plan, and Seller has never had any liability with respect to any such plan sponsored or maintained by Seller or an ERISA Affiliate. Neither Seller nor any
ERISA Affiliate have ever sponsored, contributed to, maintained or participated in a “multiple employer plan” as described in Section 3(40) of ERISA or Section 413(c) of the Code and neither any Seller nor any ERISA Affiliate has any
liability associated with such type of Employee Benefit Plan. No Employee Benefit Plan maintained by, contributed to or sponsored by Seller provides benefits, including, without limitation, death or medical benefits (through insurance or otherwise)
with respect to Transferred Employees beyond their retirement or other termination of service other than coverage mandated by applicable law, or pursuant to an Employee Benefit Plan whose existence has been disclosed to Buyer. No Employee Benefit
Plan maintained by, contributed to or sponsored by Seller which is a group health plan, as described in Section 5000(b)(1) of the Code, is self-insured, other than a plan providing dental coverage. No Employee Benefit Plan liability, contingent or
otherwise, shall affect any of the Transfer Agency Assets, including, but not limited to, subjecting such Transfer Agency Assets to attachment, forfeiture, seizure, liquidation or use as collateral. 
  
 (j) Hazardous Waste. To the best of Seller’s
knowledge, other than contamination to the adjoining property from an upstream abutter, it is not aware of any hazardous or toxic materials or substances present nor has it released the same in premises that Seller leases pursuant to the terms of
the Rockland Lease (other than customary solvents or other materials used in the cleaning and maintenance of the building or in the operation of its business). 
  

 11 

 3.2. Representations and Warranties of the Buyer. The Buyer represents and warrants to the Seller
that the statements contained in this Section 3.2 are correct and complete as of the date of this Agreement, and will be correct and complete as of the Closing Date. 
  
 (a) Organization of the Buyer. The Buyer is a corporation duly organized, validly existing, and in
good standing under the laws of the jurisdiction of its incorporation. 
  
 (b) Authorization of Transaction. The Buyer has full corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement constitutes the valid and
legally binding obligation of the Buyer, enforceable in accordance with its terms and conditions. The Buyer need not give any notice to, make any filing with, or obtain any authorization, consent, or approval of any government or governmental agency
in order to consummate the transactions contemplated by this Agreement. 
  
 (c) Noncontravention. Neither the execution and the delivery of this Agreement, nor the consummation of the transactions contemplated hereby, will (i) violate in any material respect any constitution, statute,
regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any government, governmental agency, or court to which the Buyer is subject or any provision of its charter or bylaws or (ii) conflict with, result in a
breach of, constitute a default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under any material agreement, contract, lease, license, instrument, or other
arrangement to which the Buyer is a party or by which it is bound or to which any of its assets is subject. 
  
 (d) Brokers’ Fees. The Buyer has no Liability or obligation to pay any fees or commissions to any broker, finder, or agent
with respect to the transactions contemplated by this Agreement for which Seller could become liable or obligated, and acknowledges that the satisfaction of any such Liability or obligation shall be the sole and exclusive obligation of Buyer.

  
 ARTICLE IV 
 COVENANTS 
  
 4.1. Pre-Closing Covenants. The Parties agree as follows with respect to the period between the execution of this Agreement and the Closing and, to
the extent provided herein, thereafter. 
  
 (a)
General. Each of the Parties will use its commercially reasonable efforts to take all action and to do all things necessary, proper, or advisable in order to consummate and make effective the transactions contemplated by this Agreement
(including satisfaction, but not waiver, of the closing conditions set forth in Article V hereof). 
  
 (b) Notices and Consents. Each of the Parties will give any notices to, make any filings with, and use its commercially reasonable
efforts to obtain any authorizations (including license agreements), consents, and approvals required to be obtained by it to carry out the transactions contemplated by this Agreement including, without limitation, approvals of governments,
governmental agencies and parties to Material Contracts, in connection with the matters referred to in Sections 3.1(b), (c), (f) and 3.2(b) above. 
  

 12 

 (c) Full Access. The Seller will permit representatives of the Buyer to have full
access at all reasonable times, and in a manner so as not to interfere with the normal business operations of the Seller, to all Books and Records, premises, properties, personnel, books, records (including tax records), contracts, and documents of
or pertaining to the Business. The Buyer will, and will cause each of its representatives involved to agree to, treat and hold as such any Confidential Information it receives from the Seller or any Affiliates thereof in the course of the reviews
contemplated by this Section 4.1(c), will not use any of the Confidential Information except in connection with this Agreement, and, if this Agreement is terminated for any reason whatsoever, will return, and will cause each such
representative to return, to the Seller all tangible embodiments (and all copies) of the Confidential Information which are in its possession and any descriptions thereof prepared by or for the Buyer; 
  
 (d) Conduct of the Business Prior to the Closing. The
Seller covenants and agrees that, between the date hereof and the Closing, except as expressly required or permitted by this Agreement or unless the Buyer shall otherwise agree in writing, the Seller shall conduct the Business only in the Ordinary
Course of Business consistent with past practice. By way of elaboration, and without in any way limiting, the preceding sentence, the Seller shall use commercially reasonable efforts to (i) preserve intact the business organization of the Seller and
the business organization, properties, assets and rights of the Business, (ii) keep available the services of the present officers, employees and consultants of the Seller, (iii) maintain in effect all Material Contracts and to preserve the present
relationships of the Seller with Funds, customers, licensees, suppliers and other persons with which the Seller has business relations, and (iv) maintain, with financially sound and reputable insurers, insurance for the Transfer Agency Assets and
the Business against such casualties and contingencies and of such types and in such amounts as is customary for companies similarly situated; provided, however, that for the avoidance of doubt it is expressly acknowledged and agreed that, with
respect to any Proprietary Funds as to which Seller shall have received a notice of termination of the relationship with Seller as of the date hereof, Seller shall not be deemed to be in breach of the foregoing covenants. 
  
 (e) Early System Conversion. The parties hereto
acknowledge and agree that certain limited systems conversions will be initiated prior to the Closing Date, including the following: (i) the incoming and outgoing e-mail of certain Federated TA Employees will be housed on and processed through
Buyer’s systems and servers (the “Federated Pre-Closing E-Mail”), and (ii) certain employees of Buyer will be permitted to process transactions in the Funds using unique identification numbers assigned to them for training purposes by
Seller (the “Buyer Pre-Closing Processing”). Buyer and Seller agree to deal in good faith with one another with respect to these matters and to take all reasonable steps to mitigate any risk to the other associated with such activities.
Buyer hereby covenants and agrees that it shall surrender to Seller within sixty (60) days after the Closing Date, all Federated Pre-Closing E-Mail. 
  
 4.2. Post-Closing Covenants. The Parties agree as follows with respect to the period following the Closing. 
  
 (a) General. In case at any time after the Closing
any further action is necessary or desirable to carry out the purposes of this Agreement, each of the Parties will take 

  

 13 

 
such further action (including the execution and delivery of such further instruments and documents) as any other Party reasonably may request, all at the
sole cost and expense of the requesting Party (unless the requesting Party is entitled to indemnification therefor under Article VI hereof). Without limitation of the foregoing, to the extent that any contract which should have been assigned
to Buyer as part of the Transfer Agency Assets is not assigned to Buyer at Closing, promptly after becoming aware of such contract, Seller shall provide a copy of such contract to Buyer for its review. In the event that Buyer elects to accept an
assignment of any such contract, the Parties shall cooperate with one another to execute an assignment with respect thereto in form and substance substantially similar to the Assignment of Contracts. 
  
 (b) Transfer of Economic Benefit. 
  
 (i) The transactions contemplated by this Agreement shall
not constitute an assignment, assumption or transfer of any of the Material Contracts to the extent that such assignment, assumption or transfer, without a necessary consent or approval of a third party, would be ineffective or would constitute
default under, or other contravention of, the provisions of any Material Contract or applicable law or give rise to any right of acceleration of any obligation thereunder or to any right to termination thereof and such consent or approval shall not
have been obtained prior to the Closing Date (any such Material Contract, a “Restricted Contract”). No later than July 1, 2004, Seller shall prepare and deliver to Buyer a list of those Material Contracts determined to be Restricted
Contracts as of such date. 
  
 (ii) With respect
to any Restricted Contract, on the Closing Date, Buyer shall, if and to the extent permitted by applicable law or the applicable Material Contract, assume the responsibility of Seller, to supervise, manage, administer and otherwise discharge the
duties of Seller with respect to such Restricted Contract until the requisite consents and approvals are obtained (or any relevant Material Contract is amended to provide) for Buyer to assume Seller’s rights, privileges and powers thereunder.
Upon the receipt of such consent or approval (or the amendment of such Material Contracts), Buyer will assume Seller’s rights, privileges and powers thereunder in accordance with the terms of this Agreement and such Restricted Contract shall
constitute a transferred Material Contract for all purposes of this Agreement. As compensation for acting as agent of Seller, with respect to any Restricted Contract pursuant to this Section 4.2(b), Buyer shall be entitled to all fees and
other revenues owing Seller, in respect thereof. 
  
 (iii) Seller and Buyer shall each cooperate and use their respective commercially reasonable efforts to maintain good relations with any obligees or other counterparties in connection with any Restricted Contract with respect to which Buyer
acts as Seller’s agent under this Section 4.2(b) and shall not (A) sell, sublease, transfer, assign or otherwise dispose of any rights related to such Restricted Contract or (B) solicit or encourage inquiries or proposals with respect to
any acquisition or purchase of any rights related to such Restricted Contract or authorize any of their officers, directors, agents or affiliates to solicit or encourage, or fail to notify the others promptly following their receipt of any such
inquiry or proposal. 
  
 (iv) After the close of
business on the Closing Date, Buyer shall, promptly upon obtaining knowledge thereof, give Seller notice of any default or event of default under or with respect to any Restricted Contract. In so acting, with respect to any Restricted 

  

 14 

 
Contract as to which notice has been given in accordance with the preceding sentence, Buyer, while any default is continuing, will continue to act only
pursuant to written instructions from Seller; provided, that Buyer shall not have any liability for any act taken or omission made in accordance with such instructions or as a result of Seller or Seller failing timely to give such instructions.

  
 (v) Each of Buyer and Seller shall furnish to
the other and the other’s authorized agents and representatives such financial and operating data and other information with respect to the Restricted Contracts with respect to which Buyer then acts as agent for Seller pursuant to this
Section 4.2(b) as either of them shall reasonably request. 
  
 (vi) Seller shall take all actions reasonably requested by Buyer to enforce Seller’s rights under any Restricted Contract including, without limitation, the assertion of any claim against a party to such
Restricted Contract or the assignment of any such claim to Buyer. 
  
 (vii) Buyer and Seller shall cooperate and use commercially reasonable efforts after the Closing Date to obtain any approvals or consent required to transfer each Restricted Contract, including, upon consummation of
the ARGOS Amendments (or at such later date as shall be agreed to by the parties), a transfer of the ARGOS System. 
  
 (viii) Without limitation on the foregoing, in the case of any Restricted Contract that is transferred to Buyer subsequent to the Closing
Date and then shall constitute a transferred Transfer Agency Asset, Seller shall insure that Buyer obtains the benefits of each such Transfer Agency Asset, which would have been available to Buyer had Buyer acquired such Transfer Agency Asset as of
the Closing Date rather than when such Transfer Agency Asset was actually acquired by Buyer. Notwithstanding the foregoing, Seller shall have no obligation to insure the performance of any party to any Restricted Contract, or the value thereof as
the same may fluctuate from time to time in accordance with the terms of such Restricted Contract. 
  
 (ix) With respect to any Restricted Contract as to which Seller and Buyer reasonably believe prior to or on the Closing Date that
necessary consents and approvals will not be forthcoming after the Closing Date, or that Buyer would be unable to receive such benefits, such Restricted Contract shall not be a Transfer Agency Asset for purposes of this Agreement. 
  
 (c) Transition. The Seller will not take any action
that is designed or intended to have the effect of discouraging any lessor, licensor or supplier to, or person with any other business relationship with, the Business from maintaining the same business relationships with the Buyer after the Closing
as it maintained with the Business prior to the Closing. Neither party will take any action with respect to a Shared Resource that would have any detrimental impact on the ability of the other party to continue to enjoy the benefits of the Shared
Resources. 
  
 (d) Confidentiality. From
and after the date hereof, each Party will hold in confidence, and will use its reasonable best efforts to cause all of its Affiliates, officers, employees, and agents to hold in confidence, all Confidential Information of the other Party and not
disclose (including without limitation any disclosure to any Affiliate which competes with the disclosing party), publish or use the same other than for the purposes of this Agreement; 

  

 15 

 
provided, however, that the foregoing restriction shall not apply to any portion of the foregoing which (i) becomes generally available to the public in any
manner or form, through no fault of the receiving party, (ii) is or became available to the receiving party without obligation of confidence from a source, other than the other party, having a legal right to disclose such information, (iii) is
released for disclosure with the disclosing party’s express prior written consent, or (iv) is required to be disclosed by a governmental entity, is required to be disclosed by Law or order or is necessary to be disclosed in order to establish
rights in this Agreement or any other agreement referred to herein (in the event of any such disclosure, the receiving party shall furnish to the disclosing party such advance notice with respect thereto as is reasonably possible in order that the
disclosing party may seek a protective order with respect to disclosure or take such other or further action as may, in the reasonable opinion of the disclosing party, be considered by the disclosing party to be desirable in order to preclude or
limit disclosure thereof). 
  
 (e)
Non-Solicitation. From the date hereof until the Closing Date and, thereafter, during the Period of Restriction, the Parties hereto agree as follows: 
  
 (i) Except as contemplated in Section 4.3(a) of this Agreement with respect to Buyer, neither Seller nor Buyer (or any of their
Affiliates) shall, directly or indirectly, (A) solicit, encourage, facilitate or induce any agent, sales representative, current or former employee, or consultant of the other party or any of such party’s Affiliates to breach any agreement or
contract with, or discontinue his, her or its business relationships with such party or its Affiliates or (B) hire or otherwise engage as an employee, independent contractor or otherwise, any person who is an employee of the other party or any of
such party’s Affiliates on the Closing Date, except with the prior written consent of such party. 
  
 (ii) The Parties acknowledge that damages alone shall not be an adequate remedy for any breach of the covenants contained in this
Section 4.2(e) and, accordingly, the Parties agree that, in addition to any other remedies which the non-breaching party may have, the non-breaching party shall be entitled to injunctive relief in accordance with the provisions of Section
6.3 of this Agreement for any breach or threatened breach of any such covenant by the other Party hereto and to any other equitable remedies that a court may award, including without limitation an extension of the Period of Restriction equal to
the period during which any such violation occurs. 
  
 (iii) As long as the New TA Agreement is in full force and effect, Seller shall not engage, directly or indirectly, in any business, without the prior written consent of Buyer, directly or indirectly, own an interest in, manage, operate,
join, control, lend money, or render financial or other assistance to or participate in or be connection with, as a partner, stockholder, consultant, director, officer, agent, employee, or otherwise, any Person that competes with the Business;
provided, however, that, for the purposes of this Section, the following activities shall not be deemed to be in violation of this Section: (i) owning securities having no more than five percent of the outstanding voting power of any competitor
which are listed on any national securities exchange or traded actively in the national over-the-counter market (ii) any involvement in a business that competes with Buyer that results from an acquisition by or of Seller or an Affiliate of Seller
and (iii) the provision of transfer agency 

  

 16 

 
services to any Proprietary Fund (A) as to which notice of termination has been received as of the date hereof and (B) which cannot reasonably be transferred
to Buyer. 
  
 (f) Invoices. In the event
that Buyer receives an invoice or other demand for payment for goods or services provided to the Business prior to the Closing which is not included in the Assumed Liabilities, Buyer shall deliver such documentation to Seller and Seller shall remit
payment in respect of such documentation directly to the issuer thereof within thirty (30) days of receipt by Seller. In the event that Seller receives an invoice or other demand for payment that relates to a period following the Closing, Seller
shall deliver such documentation to Buyer and Buyer shall remit payment in respect of such documentation directly to the issuer thereof within thirty (30) days of receipt by Buyer. 
  
 (g) ARGOS System. Seller covenants and agrees as follows with respect to the ARGOS System:

  
 (i) Seller will, promptly upon the Closing,
pursue an amendment to the applicable contracts under which access to the ARGOS System is provided, to (A) require ARGOS to provide for maintenance of existing security procedures, (B) require ARGOS to maintain existing security procedures, in the
form they exist prior to any update, upgrade, enhancement or other modification of the ARGOS System, following any such update, upgrade, enhancement or other modification of the ARGOS System, and (B) provide for the ability to test such security
procedures from time to time, including following any update, upgrade, enhancement or modification to the ARGOS System (collectively, the items referred to in this subsection (g)(i) shall hereinafter be referred to as the “Required ARGOS
Amendments”); 
  
 (ii) Seller shall not
request or permit any update, upgrade, enhancement or other modification to the ARGOS System unless and until the Required ARGOS Amendments are documented to the reasonable satisfaction of BFDS; and 
  
 (iii) Seller shall not execute any transfer documentation
relative to the ARGOS System unless and until the Required ARGOS Amendments are in full force and effect in a written and binding agreement. 
  
 (h) Books and Records. To the extent that Buyer has not required the physical delivery of hard copy Books and Records (due to the
fact that the same exist in some electronic medium, or for any other reason), but later requires access to such Books and Records, Seller will permit representatives of the Buyer to have full access at all reasonable times, and in a manner so as not
to interfere with the normal business operations of the Seller, to all Books and Records still maintained by Seller with respect to the Business. 
  
 (i) Termination of DST Agreements. Buyer will, promptly after the Closing, procure and deliver a termination agreement, duly
authorized and executed by DST Systems, Inc., or its affiliate, as appropriate (“DST”) with respect to the obligations of Seller under and pursuant to (i) that certain Service Agreement dated March 1, 1994 by and between Seller and DST
under and pursuant to which DST provides terminal and data transmission access to the TA2000 System and (ii) that certain Remote Service Agreement dated December 1, 1998 by and 

  

 17 

 
between Seller and DST Technologies, Inc. under and pursuant to which DST Technologies, Inc. licenses proprietary work management software known as the
automated work distributor. 
  
 4.3. Covenants Relating to
Federated TA Employees. 
  
 (a)
Employees. 
  
 (i) Pre-Closing
Date. As soon as administratively possible following the execution of this Agreement, the Seller shall (i) prepare and deliver to the Buyer a Schedule 4.3(a) of those persons working for the Business at its Rockland location who are both
available for employment by the Buyer and in satisfaction of the Hiring Criteria hereinafter described (the “Federated TA Employees”), together with the following information for each of the Federated TA Employees: name, employer,
business location, job title, exempt/non-exempt status; current salary or hourly wage rate; accrued vacation; service date (or adjusted service date) for Employee Benefit Plan participation and such other personnel information related to the
Business (other than performance appraisals, medical information and other personnel records subject to privacy protections under Law) as the Buyer may reasonably request; and (ii) provide the Buyer with reasonable access to the Federated TA
Employees, at times and locations to be mutually agreed upon; both (i) and (ii) being for the purpose of enabling the Buyer to cause Federated TA Employees to be provided with the benefits described in this Section 4.3. 

  
 (ii) Post-Closing Date. As of the
Closing, the Buyer shall make offers of Comparable Employment to all Federated TA Employees; which offers may be contingent upon such Federated TA Employee being employed by Federated on the Closing Date, or, with respect to Federated TA Employees
who are on an approved leave of absence on the Closing Date, the date of their return to work from such approved leave of absence (“Return to Work Date”). Each Federated TA Employee who accepts such an offer of Comparable Employment
effective as of the day immediately following the Closing Date, or with respect to Federated TA Employees who are on an approved leave of absence on the Closing Date, the date immediately following the Return to Work Date (the “BFDS Hire
Date”) shall be referred to as the “Transferred Employees”. For purposes of this Agreement, persons working for the Business satisfy the “Hiring Criteria” only if they: are not subject to a written warning
nor on a written plan for improvement or other formal disciplinary action; satisfy any finger-printing, background checks or other employment standards applicable to similarly situated new employees of Buyer; and, with respect to any such persons
who were formerly employed by the Buyer, are not otherwise ineligible to be re-employed by Buyer under Buyer’s policies as in effect on the date hereof. For purposes of this Agreement, an offer of “Comparable Employment” shall
mean an offer of employment: at base wages or salaries no less favorable than the wages or salaries currently being paid by the Business to the Federated TA Employee; in a position or job that is consistent with the Federated TA Employee’s
skills, training and work experience; and at a location within a 30 mile radius of the location where such Federated TA Employee is employed immediately prior to the Closing. Such offers of Comparable Employment shall be for “at will”
employment and nothing shall limit Buyer’s ability to terminate any Transferred Employee at any time for any reason, or to change their terms and conditions of employment; including, but not limited to, the levels of compensation and pension,
welfare and/or fringe benefit plans, programs or arrangements in effect after the BFDS Hire Date. Actions undertaken by the Buyer 

  

 18 

 
under this Section 4.3(a) shall not be deemed to constitute a violation of the provisions of Section 4.2(e)(i) of this Agreement with respect
to Buyer. 
  
 (iii) Prior Service Credit. Except
as otherwise expressly provided in this Section 4.3, Transferred Employees shall be given credit for all service with the Seller and its ERISA Affiliates under all ongoing Buyer Benefit Plans or other employment related benefits including, but not
limited to, sick leave, vacation, and severance benefits, for purposes of eligibility, vesting and service related level of benefits, but not benefit accrual. No service credit shall be given to Transferred Employees nor entitle a Transferred
Employee to retroactively participate in any Buyer Benefit Plan that has been frozen, grandfathered or is otherwise not open to newly hired similarly situated employees of Buyer with no past service credit. No service credit shall be given to
Transferred Employees for purpose of Buyer’s service award program. 
  
 (b) Benefits Plans. 
  
 (i) Seller’s Employee Benefit Plans. With respect to the Seller’s Employee Pension Benefit Plans, effective 12:01 a.m. as of their BFDS Hire Date, all Transferred Employees shall: (A) cease to accrue
benefits under any Employee Pension Benefit Plan established or maintained by Seller or an ERISA Affiliate (“Prior Pension Plan”); (B) cease to participate in an Employee Benefit Plan which is not an Employee Pension Plan
established or maintained by Seller or an ERISA Affiliate . Transferred Employees shall be entitled to receive their vested interests, if any, under any Prior Pension Plan in accordance with the terms and conditions of such Prior Pension Plan.
Notwithstanding clauses (A) and (B) in this Section 4.3(b)(i), after the Closing Date, Seller shall take all action necessary to cause those Federated TA Employees who accept an offer of Comparable Employment and become Transferred Employees
in accordance with Section 4.3(a) to have their service with BFDS after the Closing Date to be taken into account for purposes of determining the vested portion of their interest under the Federated 401(k) Plan. Moreover, Buyer agrees to
track hours of service worked for each Transferred Employee and to send such information to Seller at Seller’s request to enable Seller to credit the Federated 401(k) Plan accounts of the Transferred Employees post Closing Date. Other than
sending such information to Seller, Buyer will have no obligations to the Seller or the Transferred Employees with respect to the Federated 401(k) Plan. 
  
 (ii) Buyer’s Profit Sharing Plan. With respect to the Buyer’s Profit Sharing Plan, which has a 401(k) feature, it is the
intention of the Parties that all Transferred Employees will be immediately eligible to participate in Buyer’s Profit Sharing Plan. Transferred Employees shall be given credit for all years of service credited with the Seller and its ERISA
Affiliates under Buyer’s Profit Sharing Plan. The service credit given is for purposes of eligibility, vesting and service related level of benefits, but no such service credit shall entitle a Transferred Employee to retroactively participate
in the Profit Sharing Plan. Except as otherwise provided in Section 4.3(b)(iii) with respect to “rollover” contributions from the Federated 401(k) Plan, the Buyer’s Profit Sharing Plan shall not be required to accept a transfer
of assets or liabilities from any Prior Pension Plan. 
  
 (iii) Rollovers from the Federated 401(k) Plan. With respect to “rollovers” from the Federated 401(k) Plan, Buyer shall take any and all necessary action to 

  

 19 

 
cause the trustee of Buyer’s profit sharing/401(k) plan to accept a direct “rollover” of all or a portion of a Transferred Employee’s
distribution (excluding securities and any participant loans) from the Federated 401(k) Plan if requested by a Transferred Employee to do so. In addition, Buyer shall offer short-term loans, subject to Buyer’s normal credit policies, to any
Transferred Employee whose account under the Federated 401(k) Plan includes a plan loan which will default as a result of the consummation of the transactions contemplated by this Agreement. Such loans offered by Buyer shall be provided to such
Transferred Employees not later than sixty (60) days following the Closing Date. 
  
 (iv) Buyer’s Benefit Plan. With respect to the Buyer’s group health plan within the meaning of Code Section 4980B(g)(2)
(“Buyer’s Benefit Plans”), it is the intention of the Parties that all Transferred Employees will be immediately eligible to participate in the Buyer’s Benefit Plans established or maintained by Buyer for its employees who
are similarly situated to the Transferred Employees. The Buyer shall waive all limitations as to pre-existing condition exclusions and waiting periods with respect to Transferred Employees under Buyer’s Benefit Plans. In addition, no Buyer
Benefit Plan shall be required to accept a transfer of assets or liabilities from any of Seller’s Benefit Plans nor be required to credit any prior service of any Transferred Employee for purposes of determining benefit accruals. 
  
 (c) Vacation. Notwithstanding anything in this
Section 4.3 to the contrary, for the calendar year ending December 31, 2004, Buyer shall provide Transferred Employees with the greater of: (i) the days of vacation to which they were entitled under the Employee Benefit Plans of Seller on the
day before the Closing Date; or (ii) the days of vacation to which similarly situated employees of Buyer are entitled under the terms and conditions of Buyer’s then existing Buyer’s Benefit Plans (the “Greater Vacation
Schedule”); provided, however, that Transferred Employees shall not be permitted to accumulate or carry over unused vacation; and provided, further, that, except to the extent required by applicable Law, in no event shall Buyer or Seller be
required to compensate Transferred Employees for any unused vacation. For purposes of determining the vacation benefit for the 2004 calendar year, any vacation taken during the period January 1, 2004 through the Closing Date shall reduce the total
vacation benefit otherwise provided during the period from the Closing Date through December 31, 2004. On and after January 1, 2005, (x) Transferred Employees credited with twenty (20) or more years of service under Seller’s vacation policies
on the day before the Closing Date or whose Seller job title was at or above the level of Assistant Vice President shall continue to be provided with the Greater Vacation Schedule; and (y) all other Transferred Employees shall be provided with the
days of vacation to which similarly situated employees of Buyer are entitled under the terms and conditions of Buyer’s then existing Buyer’s Benefit Plans. 
  
 (d) Severance Benefits. In the event that the employment of any Transferred Employee is terminated by
Buyer prior to December 31, 2005 other than for “cause” as defined below or as a result of the Transferred Employee’s voluntary resignation, Buyer shall either: (i) continue the base wage or salary of such Transferred Employee through
December 31, 2005; or (ii) cause such Transferred Employee to receive a salary continuation benefit under Buyer’s Benefit Plan providing for severance pay; whichever produces the greater aggregate cash benefit. For purposes of this Section
4.3(d), the term “cause” shall mean the willful engaging by a Transferred Employee in conduct that such Transferred Employee would reasonably understand to be demonstrably injurious to Buyer, monetarily or otherwise, including, but not
limited to: 

  

 20 

 
(w) the commission of an act of fraud, embezzlement, or theft constituting a felony; (x) the willful and continued failure, neglect or refusal to
substantially perform his or her duties; (y) the commission of an act (or the failure to take an action) intentionally against the interests of Buyer, including, without limitation, conduct that constitutes an activity which competes with Buyer or
(z) any act that violates the Buyer’s employment policies. 
  
 (e) Retention Plans. Seller will establish, but not fund, such retention programs (the “Retention Plans”) as it, after consultation with Buyer, determines to be necessary or appropriate to
encourage those Federated TA Employees mutually identified by Seller and Buyer and listed on Schedule 4.3(f) (the “Retention Eligible Employees”) to both: accept an offer of Comparable Employment with Buyer effective as of
the BFDS Hire Date; and continue in the employment of Buyer until December 31, 2004. Subject to mutual agreement of the Parties, the total amount available for payments under such Retention Plans shall not be less than 15% of the aggregate base
wages or salaries of the Retention Eligible Employees. Amounts earned under the Retention Plans shall be made in two payments; with one-half (1⁄2) of the total amount being paid to the Retention Eligible Employees on September 30, 2004; and the
remaining one-half (1⁄2) being paid to those Retention Eligible Employees on December 31, 2004; provided that the Retention Eligible Employees remain in the active employment of Buyer as of such dates. Buyer shall assume the Retention Plans on
and after the Closing Date and shall be solely responsible for administering the Retention Plans and for making all required payments to all eligible Retention Eligible Employees. 
  
 (f) WARN Act. The Buyer and the Seller do not anticipate the issuance of any notices pursuant to the
Worker Adjustment and Retraining Notification Act of 1988, 29 U.S.C. §2101, et. seq., and similar local laws (the “WARN Act”) with respect to the Federated TA Employees. Notwithstanding the foregoing, the Seller agrees to
timely perform and discharge all requirements under the WARN Act for the notification of Federated TA Employees arising from the sale of the Business to the Buyer up to and including the Closing Date. After the Closing Date, the Buyer shall be
responsible for performing and discharging all requirements under the WARN Act for the notification of its Transferred Employees. 
  
 (g) COBRA Coverage. Notwithstanding anything in this Section 4.3 to the contrary, Seller shall offer continued coverage
under its Employee Benefit Plans which constitute “group health plans” in accordance with the requirements of Code Section 4980B(f) (“COBRA Coverage”) to all TA Employees (and their eligible spouses and beneficiaries)
whose employment is terminated and who incur a “loss of coverage” within the meaning of Treasury Regulation Section 54.4980B-4, Q&A-1(c), as a result of the consummation of the transactions contemplated by this Agreement without regard
to whether any such TA Employees become Transferred Employees. Notwithstanding the offer of COBRA Coverage described in the preceding sentence, it is the intention of the Parties that all TA Employees who become Transferred Employees will be
immediately eligible for coverage under Buyer’s group health plans as of the Closing Date. 
  

 21 

 ARTICLE V 
 CLOSING CONDITIONS 
  
 5.1. Conditions to Obligation to Close. 
  
 (a) Conditions to Obligation of the Buyer. The obligation of the Buyer to consummate the transactions to be performed by it in connection with the Closing is subject to satisfaction of the following conditions:

  
 (i) the representations and warranties set
forth in Section 3.1 above shall be true and correct in all material respects when made and at and as of the Closing Date; 
  
 (ii) the Seller shall have performed and complied in all material respects with all of its covenants to be performed or complied with
hereunder on or before the Closing; 
  
 (iii) the
Seller shall have procured all of the authorizations, third party consents and approvals required to be obtained by it pursuant to Section 4.1(b) hereof (except with respect to Restricted Contracts), which shall be on terms that will not
result in any material economic cost to Buyer, other than consents with respect to Material Contracts the failure to obtain which consents shall not, taken as a whole, result in a Material Adverse Effect; 
  
 (iv) no events or conditions shall have occurred which
individually or in the aggregate, have had, or may reasonably be anticipated by the Buyer, to give rise to any Material Adverse Effect. 
  
 (v) no action, suit, or proceeding shall be pending or threatened before any court or quasi-judicial or administrative agency of any
federal, state, local, or foreign jurisdiction or before any arbitrator wherein an unfavorable injunction, judgment, order, decree, ruling, or charge would (A) prevent consummation of any of the transactions contemplated by this Agreement, (B) cause
any of the transactions contemplated by this Agreement to be rescinded following consummation, or (C) affect adversely the right of the Buyer acquire the Transfer Agency Assets; 
  
 (vi) (A) the Seller shall have entered into (1) the Assignment of Rockland Lease, (2) a termination of the
Federated Funds TA Agreement, (3) an amendment to each Proprietary Funds TA Agreement that is fashioned as a Bundled Services Agreement, (4) an assignment of each Proprietary Funds TA Agreement that is not fashioned as a Bundled Services Agreement,
(5) an Assignment of Contracts with respect to all Material Contracts, subject to sub-Section (iii) above, (6) the License Agreement, (7) the Sub-Contracts, (8) a bill of sale with respect to all other Transfer Agency Assets other than the Excluded
Assets, and (9) a letter agreement setting forth the terms on which the Shared Resource will be made available and (B) the Proprietary Funds with a Bundled Services Agreement shall have each entered into a duly authorized and approved New
Proprietary Funds TA Agreement; 
  
 (vii) the
Board of Directors/Trustees of the Federated Funds shall have duly authorized and approved the New TA Agreement and the Federated Funds shall have entered into the New TA Agreement; 
  
 (viii) the Seller shall have delivered to the Buyer a certificate to the effect that each of the conditions
specified above in Section 5(a)(i) through (vii) is satisfied in all respects; and 
  

 22 

 (ix) all actions to be taken by the Seller in connection with consummation of the
transactions contemplated hereby and all certificates, instruments, and other documents required to effect the transactions contemplated hereby will be reasonably satisfactory in form and substance to the Buyer. 
  
 (x) Seller shall have delivered to Buyer the following:

  
 (A) (1) a copy of the resolutions duly and
validly adopted by the Board of Directors of Seller authorizing the execution, delivery and performance of this Agreement by Seller, certified by the Secretary or an Assistant Secretary of Seller as being in full force and effect as of the Closing;
(2) certified copies of the charter and bylaws of Seller as in full force and effect as of the Closing; (3) a certificate issued by the Secretary of State or other similar appropriate governmental department, as of a date not more than thirty (30)
days prior to the Closing, as to the good standing of the Seller in its state of incorporation; and (4) a certificate of the Secretary or an Assistant Secretary of Seller as to the incumbency and signatures of the officers of Seller executing this
Agreement and any other documents delivered by Seller at Closing; and 
  
 (B) all of the Books and Records; and 
  
 (C) such other documents and instruments as the Buyer or its counsel may reasonably request; provided, however, that it is expressly acknowledged and agreed that opinions of counsel will not be required
or requested. 
  
 The Buyer may waive any condition specified in
this Section 5(a) if it executes a writing so stating at or prior to the Closing. 
  
 (b) Conditions to Obligation of the Seller. The obligation of the Seller to consummate the transactions to be performed by it in
connection with the Closing is subject to satisfaction of the following conditions: 
  
 (i) the representations and warranties set forth in Section 3.2 above shall be true and correct in all material respects when made
and at and as of the Closing Date; 
  
 (ii) the
Buyer shall have performed and complied in all material respects with all of its covenants to be performed or complied with hereunder on or before the Closing; 
  

(iii) the Buyer shall have procured all of the authorizations, third party consents and approvals required to be obtained by it
pursuant to Section 4.1(b) hereof; 
  
 (iv) no action, suit, or proceeding shall be pending or threatened before any court or quasi-judicial or administrative agency of any federal, state, local, or foreign jurisdiction or before any arbitrator wherein an unfavorable injunction,
judgment, order, decree, ruling, or charge would (A) prevent consummation of any of the transactions contemplated by this Agreement or (B) cause any of the transactions contemplated by this Agreement to be rescinded following consummation (and no
such injunction, judgment, order, decree, ruling, or charge shall be in effect); 
  

 23 

 (v) the Buyer shall have entered into (A) the Assignment of Rockland Lease, (B) an
assignment and assumption of each Proprietary Funds TA Agreement that is not fashioned as a Bundled Services Agreement, (C) a New Proprietary Funds TA Agreement with respect to each Proprietary Funds TA Agreement that is fashioned as a Bundled
Services Agreement, (D) an Assignment of Contracts with respect to all Material Contracts except where the failure to assign a given Material Contract or Material Contracts will not have a Material Adverse Effect, (E) the License Agreement (F) a
letter agreement setting forth the terms on which the Shared Resource will be made available and (G) the Sub-Contracts; 
  
 (vi) the Board of Directors/Trustees of the Federated Funds shall have duly authorized and approved the New TA Agreement and the Federated
Funds shall have entered into the New TA Agreement; 
  
 (vii) the Buyer shall have delivered to the Seller a certificate to the effect that each of the conditions specified above in Section 5(b)(i) through (vi) is satisfied in all respects; 
  
 (viii) all actions to be taken by the Buyer in connection
with consummation of the transactions contemplated hereby and all certificates, opinions, instruments, and other documents required to effect the transactions contemplated hereby will be reasonably satisfactory in form and substance to the Seller;

  
 (ix) Buyer shall have delivered to Seller the
following: 
  
 (A) (1) copy of the resolutions
duly and validly adopted by the Board of Directors of Buyer authorizing the execution, delivery and performance of this Agreement by Buyer, certified by the Secretary or an Assistant Secretary of Buyer as being in full force and effect as of the
Closing; (2) certified copies of the charter and bylaws of Buyer as in full force and effect as of the Closing; (3) a certificate issued by the Secretary of State or other similar appropriate governmental department, as of a date not more than
thirty (30) days prior to the Closing, as to the good standing of the Buyer in its state of incorporation; and (4) a certificate of the Secretary or an Assistant Secretary of Buyer as to the incumbency and signatures of the officers of Buyer
executing this Agreement and any other documents delivered by Buyer at Closing; and 
  
 (B) such other documents and instruments as the Seller or its counsel may reasonably request; provided, however, that it is
expressly acknowledged and agreed that opinions of counsel will not be required or requested. 
  
 The Seller may waive any condition specified in this Section 5(b) if it executes a writing so stating at or prior to the Closing. 
  
 ARTICLE VI 
 REMEDIES 
  
 6.1. Survival of Representations
and Warranties. All of the representations and warranties of the Parties contained in this Agreement shall survive the Closing hereunder and continue in full force and effect thereafter (subject to any applicable statutes of limitations) for

  

 24 

 
the Period of Restriction except that the representations and warranties set forth in Sections 3.1(b) and (d), and 3.2(b) and (d)
shall survive indefinitely. 
  
 6.2. Indemnification Provisions
for Benefit of the Buyer. 
  
 (a) In the
event the Seller breaches any of its representations and warranties contained herein, and provided that Buyer makes a written claim for indemnification against the Seller which, in the case of a breach by Seller of its representations and
warranties as to which the Period of Restriction applies, is made within thirty (30) days following expiration of the Period of Restriction, then the Seller agrees to indemnify the Buyer from and against the entirety of any Adverse Consequences
which the Buyer may suffer through and after the date of the claim for indemnification (including any Adverse Consequences the Buyer may suffer after the end of the Period of Restriction) resulting from, arising out of, relating to, in the nature
of, or caused by the breach; provided however, that no such individual claim shall be for less than Five Thousand and no/100 Dollars ($5,000) (the “Deductible”) and further provided that once individual claims for less than Five
Thousand and no/100 Dollars ($5,000) exceed, in the aggregate, Fifty Thousand Dollars ($50,000) (the “Deductible Limit”), Buyer shall be entitled to seek indemnification for any and all amounts in excess of such Deductible Limit,
whether or not any individual claim thereafter exceeds the Deductible, up to the total amount of the Purchase Price. 
  
 (b) The Seller agrees to indemnify the Buyer from and against the entirety of any Adverse Consequences the Buyer may at any time suffer
resulting from, arising out of, relating to, in the nature of, or caused by (i) any breach by Seller of its agreements and covenants contained herein, (ii) any and all Liabilities relating to periods prior to the Closing with respect to (A) the
operation of the Business, (B) the Transfer Agency Assets or (C) the performance of services that are the subject of the Sub-Contracts, (iii) the Excluded Assets or Excluded Liabilities, and (iv) the provision of services, or enjoyment of benefits,
under any Restricted Contract, the Sub-Contracts, or the use by BFDS of the Shared Resource, arising solely as a result of the failure to obtain any required consent. 
  
 6.3. Indemnification Provisions for Benefit of the Seller. 
  
 (a) In the event the Buyer breaches any of its
representations and warranties contained herein, and the Seller makes a written claim for indemnification against the Buyer pursuant to Section 7.8 hereof which, in the case of an alleged breach by Buyer of its representations and warranties
as to which the Period of Restriction applies, is made within thirty (30) days following expiration of the Period of Restriction, then the Buyer agrees to indemnify the Seller from and against the entirety of any Adverse Consequences the Seller may
suffer through and after the date of the claim for indemnification (including any Adverse Consequences the Seller may suffer after the end of the Period of Restriction) resulting from, arising out of, relating to, in the nature of, or caused by the
breach; provided, however, that no such individual claim shall be for less than the Deductible and further provided that once individual claims for less than the Deductible exceed the Deductible Limit, Seller shall be entitled to seek
indemnification for any and all amounts in excess of such Deductible Limit, whether or not any individual claim thereafter exceeds the Deductible up to the total amount of the Purchase Price. 
  

 25 

 (b) The Buyer agrees to indemnify the Seller from and against the entirety of any Adverse
Consequences the Seller may suffer resulting from, arising out of, relating to, in the nature of, or caused by (i) any breach by Buyer of its agreements and covenants contained herein, and (ii) any and all Liabilities relating to periods from and
after the Closing with respect to (A) the operation of the Business, (B) the Transfer Agency Assets, or (C) the Sub-Contracts. 
  
 (c) The Buyer agrees to indemnify the Seller from and against the entirety of any Adverse Consequences the Seller may suffer arising out
of, relating to, in the nature of or caused by, any action taken by the Buyer in connection with the hiring, termination or changing of the terms of employment of, or failing to offer employment to, any Federated TA Employees during the period
commencing on the Closing Date and ending 61 days from the BFDS Hire Date. The provisions of Section 6.4 hereof shall apply with respect to any claim made against the Seller under this Section 6.3(c). 
  
 6.4. Matters Involving Third Parties. 
  
 (a) If any third party shall notify any Party (the
“Indemnified Party”) with respect to any matter (a “Third Party Claim”) which may give rise to a claim for indemnification against any other Party (the “Indemnifying Party”) under this Article
VI, then the Indemnified Party shall promptly notify each Indemnifying Party thereof in writing; provided, however, that no delay on the part of the Indemnified Party in notifying any Indemnifying Party shall relieve the Indemnifying Party from
any obligation hereunder unless (and then solely to the extent) the Indemnifying Party thereby is prejudiced. 
  
 (b) Any Indemnifying Party will have the right to defend the Indemnified Party against the Third Party Claim with counsel of its choice
reasonably satisfactory to the Indemnified Party so long as (i) the Indemnifying Party notifies the Indemnified Party in writing within 15 days after the Indemnified Party has given notice of the Third Party Claim that the Indemnifying Party will
indemnify the Indemnified Party from and against the entirety of any Adverse Consequences the Indemnified Party may suffer resulting from, arising out of, relating to, in the nature of, or caused by the Third Party Claim, subject to the limitations
contained in Sections 6.2(a) and 6.3(a), (ii) the Indemnifying Party provides the Indemnified Party with evidence reasonably acceptable to the Indemnified Party that the Indemnifying Party will have the financial resources to defend against
the Third Party Claim and fulfill its indemnification obligations hereunder, (iii) the Third Party Claim involves only money damages and does not seek an injunction or other equitable relief, and (iv) the Indemnifying Party conducts the defense of
the Third Party Claim actively and diligently. 
  
 (c) So long as the Indemnifying Party is conducting the defense of the Third Party Claim in accordance with Section 6.4(b) above, (i) the Indemnified Party may retain separate co-counsel at its sole cost and expense and participate
in the defense of the Third Party Claim, (ii) the Indemnified Party will not consent to the entry of any judgment or enter into any settlement with respect to the Third Party Claim without the prior written consent of the Indemnifying Party (not to
be withheld unreasonably), and (iii) the Indemnifying Party will not consent to the entry of any judgment or enter into any settlement with respect to the Third Party Claim without the prior written consent of the Indemnified Party (not to be
withheld unreasonably); provided, however, that if the Indemnified Party withholds its consent hereunder, 

  

 26 

 
the liability of the Indemnifying Party with respect to such Claim shall thereafter be limited to the amount of the money damages contained in the offer of
settlement as to which the Indemnified Party did not consent. 
  
 (d) In the event any of the conditions in Section 6.4(b) above is or becomes unsatisfied, however, (i) the Indemnified Party may defend against, and consent to the entry of any judgment or enter into any
settlement with respect to, the Third Party Claim in any manner it may deem appropriate (and the Indemnified Party need not consult with, or obtain any consent from, any Indemnifying Party in connection therewith), (ii) the Indemnifying Parties will
reimburse the Indemnified Party promptly and periodically for the costs of defending against the Third Party Claim (including reasonable attorneys’ fees and expenses), and (iii) the Indemnifying Parties will remain responsible for any Adverse
Consequences the Indemnified Party may suffer resulting from, arising out of, relating to, in the nature of, or caused by the Third Party Claim to the fullest extent provided in this Article VI. 
  
 6.5. Exclusion of Incidental, Consequential Damages and Lost Profits.
UNDER NO CIRCUMSTANCES, HOWEVER, SHALL EITHER PARTY UNDER THIS AGREEMENT BE LIABLE TO THE OTHER PARTY HEREUNDER, INCLUDING UNDER THIS ARTICLE VI, FOR LOST PROFITS OR FOR EXEMPLARY, SPECIAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES EVEN IF ADVISED OF THE
POSSIBILITY THEREOF. 
  
 6.6 Exclusive Remedy. Except with
respect to matters for which injunctive or other equitable relief would be the appropriate remedy, the foregoing provisions of this Article VI set forth the exclusive remedy of the Parties with respect to any actual or alleged breach of this
Agreement. 
  
 ARTICLE VII 
 MISCELLANEOUS 
  
 7.1. Press Releases and Public Announcements. No Party shall issue any press release or make any public announcement relating to the subject matter
of this Agreement prior to the Closing without the prior written approval of the Buyer and the Seller; provided, however, that any Party may make any public disclosure it believes in good faith is required by applicable Law or any listing or trading
agreement concerning its publicly-traded securities (in which case the disclosing Party will use its best efforts to advise the other Parties prior to making the disclosure). 
  
 7.2. Termination. 
  
 (a) Termination of Agreement. The Parties may terminate this Agreement as provided below: 
  
 (i) the Buyer and the Seller may terminate this Agreement by
mutual written consent at any time prior to the Closing; 
  
 (ii) the Buyer may terminate this Agreement by giving written notice to the Seller at any time prior to the Closing in the event the Seller has breached any material representation, warranty, or covenant contained in
this Agreement in any material respect, the 

  

 27 

 
Buyer has notified the Seller of the breach, and the breach has continued without cure for a period of 30 days after the notice of breach; 
  
 (iii) the Seller may terminate this Agreement by giving
written notice to the Buyer at any time prior to the Closing in the event the Buyer has breached any material representation, warranty, or covenant contained in this Agreement in any material respect, the Seller has notified the Buyer of the breach,
and the breach has continued without cure for a period of 30 days after the notice of breach; 
  
 (iv) the Seller may terminate this Agreement by giving written notice to the Buyer prior to Closing in the event the closing conditions
set forth in Section 5.1(b) are not satisfied by July 31, 2004; and 
  
 (v) the Buyer may terminate this Agreement by giving written notice to the Seller prior to Closing in the event the closing conditions set forth in Section 5.1(a) are not satisfied by July 31, 2004. 

 
 (b) Effect of Termination. If the Parties
terminate this Agreement pursuant to Section 7.2(a)(i) above, all rights and obligations of the Parties hereunder shall terminate without any liability of any Party to any other Party (except for any liability of any Party then in breach);
provided, however, that the confidentiality provisions shall survive termination. 
  
 7.3. No Third-Party Beneficiaries. This Agreement shall not confer any rights or remedies upon any Person other than the Parties and their respective successors and permitted assigns. 
  
 7.4. Entire Agreement. This Agreement (including the documents
referred to herein) constitutes the entire agreement among the Parties and supersedes any prior understandings, agreements, or representations by or among the Parties, written or oral, to the extent they related in any way to the subject matter
hereof. 
  
 7.5. Succession and Assignment. This Agreement
shall be binding upon and inure to the benefit of the Parties named herein and their respective successors and permitted assigns. No Party may assign either this Agreement or any of its or its rights, interests, or obligations hereunder without the
prior written approval of the Buyer and the Seller; provided, however, that the Buyer may (i) assign any or all of its rights and interests hereunder to one or more of its Affiliates and (ii) designate one or more of its Affiliates to perform its
obligations hereunder (in any or all of which cases the Buyer nonetheless shall remain responsible for the performance of all of its obligations hereunder). 
  
 7.6. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together
will constitute one and the same instrument. 
  
 7.7.
Headings. The Article and Section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement. 
  

 28 

 7.8. Notices. All notices, requests, demands, claims, and other communications hereunder will be
in writing. Any notice, request, demand, claim, or other communication hereunder shall be deemed duly given if (and then two business days after) it is sent by a nationally recognized overnight carrier or registered or certified mail, return receipt
requested, postage prepaid, and addressed to the intended recipient as set forth below: 
  

	 	(a)	If to Buyer: 

  
 Boston Financial Data Services, Inc. 
 2
Heritage Drive 
 North Quincy, MA 02171 
 Attn: Terry L. Metzger 
  

	 	(b)	If to Seller: 

  
 Federated Services Company 
 Federated
Investors Tower 
 1001 Liberty Avenue 
 Pittsburgh, PA 15222-3779 
 Attn: Thomas R. Donahue 
  
 With a copy to: 
  
 Reed Smith LLP 
 435 Sixth Avenue 

Pittsburgh, Pennsylvania 15219 
 Attn:
Timothy S. Johnson 
  
 Any Party may send any
notice, request, demand, claim, or other communication hereunder to the intended recipient at the address set forth above using any other means (including personal delivery, expedited courier, messenger service, telecopy, telex, ordinary mail, or
electronic mail), but no such notice, request, demand, claim, or other communication shall be deemed to have been duly given unless and until it actually is received by the intended recipient. Any Party may change the address to which notices,
requests, demands, claims, and other communications hereunder are to be delivered by giving the other Parties notice in the manner herein set forth. 
  
 7.9. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without giving effect to
any choice or conflict of law provision. 
  
 7.10. Amendments
and Waivers. No amendment of any provision of this Agreement shall be valid unless the same shall be in writing and signed by the Buyer and the Seller. No waiver by any Party of any default, misrepresentation, or breach of warranty or covenant
hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such
occurrence. 
  

 29 

 7.11. Severability. Any term or provision of this Agreement that is invalid or unenforceable in
any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction.

  
 7.12. Expenses. Each of the Parties will bear its own
costs and expenses (including legal fees and expenses) incurred in connection with this Agreement and the transactions contemplated hereby. 
  
 7.13. Construction. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question
of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of
this Agreement. Any reference to any federal, state, local, or foreign statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise. The word “including” shall mean
including without limitation. The Parties intend that each representation, warranty, and covenant contained herein shall have independent significance. If any Party has breached any representation, warranty, or covenant contained herein in any
respect, the fact that there exists another representation, warranty, or covenant relating to the same subject matter (regardless of the relative levels of specificity) which the Party has not breached shall not detract from or mitigate the fact
that the Party is in breach of the first representation, warranty, or covenant. 
  
 7.14. Incorporation of Exhibits, Annexes, and Schedules. The Exhibits, Annexes, and Schedules identified in this Agreement are incorporated herein by reference and made a part hereof. 
  
 7.15. Submission to Jurisdiction. 
  
 (a) Seller hereby agrees to bring any action or proceeding
arising out of or relating to this Agreement in a state or federal court, as applicable, in Boston, Massachusetts. Seller agrees not to bring any action or proceeding arising out of or relating to this Agreement in any other court. Seller waives any
defense of inconvenient forum to the maintenance of any action or proceeding so brought and waives any bond, surety, or other security that might be required of Seller with respect thereto. 
  
 (b) Buyer hereby agrees to bring any action or proceeding
arising out of or relating to this Agreement in a state or federal court, as applicable, in Pittsburgh, Pennsylvania. Buyer agrees not to bring any action or proceeding arising out of or relating to this Agreement in any other court. Buyer waives
any defense of inconvenient forum to the maintenance of any action or proceeding so brought and waives any bond, surety, or other security that might be required of Buyer with respect thereto. 
  
 7.16. Waiver of Jury Trial. EACH PARTY HERETO, ON BEHALF OF ITSELF AND
ALL OF ITS AFFILIATES, HEREBY WAIVES TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THEM AGAINST THE OTHER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT, OR ANY OTHER AGREEMENTS EXECUTED IN CONNECTION
HEREWITH OR THE ADMINISTRATION THEREOF OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN OR THEREIN. No Party to this Agreement shall seek, or permit any of its Affiliates to seek, a jury trial in any lawsuit, proceeding, counterclaim, or any other
litigation procedure based upon, or arising out of, this Agreement or any related instruments or the relationship between the Parties. No Party will seek, or permit any of its Affiliates to seek, to consolidate any such action, in which a jury trial
has been waived, with any other action in which a jury trial cannot be or ahs not been waived. THE PROVISIONS OF THIS SECTION 7.16 HAVE BEEN FULLY DISCUSSED BY THE PARTIES HERETO, AND THESE PROVISIONS SHALL BE SUBJECT TO NO EXCEPTIONS. NO
PARTY HAS IN ANY WAY AGREED WITH OR REPRESENTED TO ANY OTHER PARTY THAT THE PROVISIONS OF THIS SECTION 7.16 WILL NOT BE FULLY ENFORCED IN ALL INSTANCES. 
  

 30 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written.

  

			
	Boston Financial Data Services, Inc.
		
	By:	 	/s/    TERRY L. METZGER        
	 Title:
	 	Chief Operating Officer
	
	State Street Bank and Trust Company
		
	By:	 	/s/    JOSEPH L. HOOLEY        
	 Title:
	 	Executive Vice President
	
	Federated Services Company
		
	By:	 	/s/    THOMAS R. DONAHUE        
	 Title:
	 	Treasurer

  

 31 

 EXHIBIT B 
  

Assignment of Contracts 
  

 EXHIBIT C 
  

Functional Matrix 
  

 EXHIBIT D 
  

License Agreement 
  

 EXHIBIT E 
  

New TA Agreement 
  

 EXHIBIT F 
  

Assignment of Rockland Lease

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]