Document:

exv10w13

 

EXHIBIT 10.13

 

Subscription Agreement

dated as of January 18, 2000

between

THOMAS WEISEL PARTNERS GROUP LLC

And

CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM

(RESTATED TO INCLUDE AMENDMENT TO SUBSCRIPTION AGREEMENT DATED DECEMBER 15, 2000 AND JUNE 15,

2001)

 

 

 

          SUBSCRIPTION AGREEMENT (the “Agreement”) dated as of January 18, 2000, between Thomas
Weisel Partners Group LLC, a Delaware limited liability company (the “Company”), and the California
Public Employees’ Retirement System (“Subscriber”).

RECITALS

     WHEREAS, the Executive Committee of the Company has determined that it is in the best
interests of the Shareholders of the Company to sell 100,000,000 shares of Class D Redeemable
Convertible Shares of the Company (the “Shares”) to Subscriber for an aggregate cash consideration
of $100,000,000 (the “Purchase Price”), upon the terms and conditions hereinafter described; and
WHEREAS, Subscriber desires to purchase the Shares from the Company for the Purchase Price, upon
the terms and conditions hereinafter described;

     NOW, THEREFORE, in consideration of the covenants and agreements contained herein, the parties
hereto agree as follows:

ARTICLE I.

Definitions

     Capitalized terms used in this Subscription Agreement and not otherwise defined herein shall
have the meanings assigned to them in the LLC Agreement.

     “Alternate Fund” shall have the meaning set forth in Section 2.2.

     “Alternative Investment Management Program” shall mean the program of such name conducted by
Subscriber.

     “Closing Date” shall have the meaning set forth in Section 2.1.

     “Company” shall have the meaning set forth in the opening paragraph.

     “Existing Alternate Fund” shall have the meanings set forth in Section 2.2(a)(vi).

     “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended.

     “ERISA Affiliate” shall mean any trade or business (whether or not incorporated) that is a
member of a group of which the Company is a member and which is treated as a single employer under
Section 414 of the Code.

     “Future Funds” shall have the meaning set forth in Section 2.3 “Hart-Scott-Rodino Act” means
the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

     “Key Man Trust” shall have the meaning set forth in Section 6.12.

     “Liquidating Event” shall have the meaning assigned to such term in the LLC Agreement.

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     “LLC Agreement” shall mean the Limited Liability Company Agreement of the Company, as amended
and restated as of the Closing Date, the form of which is attached hereto as Exhibit A.

     “Material Adverse Effect” shall mean any effect that (i) is material and adverse to the
financial position, results of operations or business of the Company, or (ii) would materially
impair the ability of either the Company or Subscriber, respectively, to perform its obligations
under this Agreement or otherwise materially threaten or materially impede the consummation of the
transactions contemplated by this Agreement; provided, however, that Material Adverse Effect shall
not be deemed to include the impact of (a) changes in laws of general applicability or
interpretations thereof by courts or governmental authorities, (b) changes in generally accepted
accounting principles or regulatory accounting requirements applicable to the Company or
Subscriber, and (c) changes caused by fluctuations in securities markets or changes in economic
conditions affecting the Company or Subscriber.

     “Multiemployer Plan” shall mean a multiemployer plan as defined in Section 4001(a)(3) of ERISA
to which the Company or any ERISA Affiliate (other than one considered an ERISA Affiliate only
pursuant to subsection (m) or (o) of Section 414 of the Code) is making or accruing an obligation
to make contributions, or has within any of the preceding five plan years made or accrued an
obligation to make contributions.

     “PBGC” shall mean the Pension Benefit Guarantee Corporation referred to and defined in ERISA.

     “Person” means any individual, corporation, partnership, joint venture, association, limited
liability company, joint-stock company, trust, unincorporated association or governmental agency,
body or authority.

     “Plan” means any employee benefit plan, within the meaning of ERISA Section 3(3), of the
Company or an ERISA Affiliate and any severance or stock or other similar equity plans, programs,
contracts or arrangements in respect of any of the present or former employees, directors,
officers, shareholders, consultants or independent contractors of the Company or an ERISA
Affiliate.

     “Purchase Price” shall have the meaning set forth in the Recitals.

     “Qualified Institutional Investor” means an institutional investor of size, experience and
sophistication such that it is recognized as a credible leading investor in private funds of the
type that includes the applicable Alternate Fund.

     “Reportable Event” shall have the meaning assigned to such term in ERISA and the regulations
thereunder.

     “Separation Event” shall be deemed to have occurred if (1) within 24 months following the
Closing Date, Thomas Weisel voluntarily ceases to be actively involved in the operations of the
Company, or (2) at any time, Thomas Weisel and another member of the Executive Committee, as
constituted on the date hereof, or any replacement of any such member (other than Thomas Weisel)
approved by Subscriber in accordance with Section 2.2(b), cease to be

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actively involved in the operations of the Company for any reason or (3) at any time, three
members of the Executive Committee, as constituted on the date hereof, or any replacement of any
such member approved by Subscriber in accordance with Section 2.2(b), cease to be actively involved
in the operations of the Company for any reason.

     “Shares” shall have the meaning set forth in the Recitals.

     “Shareholders” shall mean the members of the Company who are referred to as “Shareholders” in
the LLC Agreement.

     “Subscriber” shall have the meaning set forth in the opening paragraph.

     “Withdrawal Liability” shall mean liability to a Multiemployer Plan as a result of a complete
or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle
E of Title IV of ERISA.

ARTICLE II.

Subscription; Contingent Commitments; Other Potential Investments

     2.1 Subscription. By executing this Agreement, the Company agrees to issue and sell
to Subscriber, and Subscriber agrees to purchase from the Company, the Shares, for the Purchase
Price. Such purchase is made on and subject to the terms and conditions set forth in this
Agreement and in the LLC Agreement. Upon payment of the Purchase Price, the Company will admit
Subscriber as a Shareholder of the Company. The closing of this transaction shall occur when the
conditions in Article VI are satisfied and is scheduled to occur on January 21, 2000 at the offices
of Sullivan & Cromwell in Los Angeles, California, or at such other date and location as the
parties mutually agree. The date of closing is herein called the “Closing Date”.

     2.2 Contingent Commitment. (a) From and after the Closing Date until the earliest to
occur of (i) the end of the sixth year following the Closing Date, (ii) a Liquidating Event that
results in a change of control of the Company (other than an initial public offering with respect
to the Company or any successor to the Company) or (iii) a Separation Event, Subscriber will make
capital commitments to each new alternative investment fund sponsored by the Company (an “Alternate
Fund”), and the Company shall cause such capital commitments to be accepted, subject to the
following and the other provisions of this Section 2.2:

     (i) Such Alternate Fund shall target one or more of the following strategies:
(1) international private equity focusing on growth and technology sectors, (2)
venture capital, (3) mezzanine debt investments in growth companies and (4) a
secondary private equity fund or fund-of-funds that focus on the Company’s core
competencies and relationships and/or are expected to benefit the Company’s other
business activities (for example, an internet technology fund-of-funds).

     (ii) Such Alternate Fund shall have at least $75,000,000 of committed capital
(including Subscriber’s commitment), a majority of which (excluding

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Subscriber’s commitment) must be committed by Qualified Institutional
Investors.

     (iii) Such Alternate Fund shall not compete with Subscriber’s Alternative
Investment Management Program, provided that an Alternate Fund with investment
objectives directed at one or more of the targeted sectors on which the Company is
focused (i.e., technology, business services, media and communications, consumer
related businesses and health care services) will be deemed not to so compete.

     (iv) The fees, carried interest, and other terms and conditions for such
Alternate Fund applicable to Subscriber shall be the same as those applicable to the
other Qualified Institutional Investors who have committed to invest or who have
invested in such Alternate Fund, and such terms and conditions are “market” from the
point of view of large institutions, including governmental institutions,
experienced in making similar private equity investments. Subscriber shall have
the right to review such terms and conditions and, to the extent Subscriber disputes
whether such conditions are “market”, Subscriber and the Company shall negotiate in
good faith to achieve a mutually acceptable resolution of the dispute. If
Subscriber and the Company are unable to resolve the dispute by mutual agreement
they shall select a mutually agreeable third party to resolve the dispute, at the
Company’s expense. The third party shall be a financial intermediary experienced in
the marketing and evaluation of similar funds and, in resolving the dispute, shall
give consideration to the size of the Alternate Fund, the type of Alternate Fund and
the level of sophistication and experience of the other investors in the Alternate
Fund. If the third party determines that any of the disputed terms or conditions
are not “market”, Subscriber shall not be obligated to make a capital commitment to
such Alternate Fund.

     (v) Key members of the management team for each Alternate Fund shall be in
place prior to funding.

     (vi) All other Alternate Funds in which Subscriber has invested, or to which it
has committed to invest, pursuant to this Article II (each an “Existing Alternate
Fund”) must be in compliance with their respective terms and conditions, and each
shall not have experienced any material adverse operating developments or material
adverse financial performance; provided that the Existing Alternate Funds
will not be deemed to have experienced any material adverse financial performance
unless more than one Existing Alternate Fund shall have had material adverse
financial performance in comparison to other funds of similar size and type. If
Subscriber and the Company disagree about whether more than one existing Alternate
Fund shall have had material adverse financial performance in comparison to other
funds of similar size and type, they will negotiate in good faith to achieve a
mutually acceptable resolution of the dispute. If Subscriber and the Company are
unable to resolve the dispute by mutual agreement they will select a mutually
agreeable third party to resolve the dispute, at the Company’s expense. The third
party will be a financial intermediary

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experienced in the marketing and evaluation of similar funds. If the third
party determines that more than one Existing Alternate Fund shall have experienced
any material adverse performance as aforesaid, Subscriber shall not be obligated to
make a capital commitment to any Alternate Fund.

     (vii) There shall not have occurred and be continuing a material breach by the
Company of the LLC Agreement.

          (b) If Subscriber’s obligations to make capital contributions under Section 2.2(a) is
terminated as a result of a Separation Event of the type described in clauses (2) or (3) of the
definition thereof, in the event that the Company, at any time during the 12 months immediately
following the occurrence of the Separation Event giving rise thereto, replaces any member of the
Executive Committee (other than Thomas Weisel) with another member who is reasonably acceptable to
Subscriber, upon such replacement within such 12-month period, Subscriber’s obligations to make
capital contributions under and in accordance with this Section 2.2 shall be reinstated to the
extent the conditions of this Section 2.2 are otherwise satisfied.

          (c) The amount of the capital commitment to any Alternate Fund in accordance with Section
2.2(a) shall be the lesser of (x) 25% of the aggregate commitments received from all investors in
such Alternate Fund and (y) $125,000,000; provided that all commitments required to be made
by Subscriber and required to be caused to be accepted by the Company pursuant to Section 2.2(a)
shall not exceed $500,000,000 in the aggregate.

          (d) Notwithstanding anything to the contrary contained in this Section 2.2, Subscriber shall
not be required to make any commitment to an Alternate Fund if (x) the investment objectives of
such Alternate Fund violate Subscriber’s mandatory policies or applicable law or (y) the assets of
the Alternate Fund would be treated as “plan assets” under Department of Labor Regulation Section
2510.3-101.

          (e) Subscriber and the Company shall cooperate in good faith to identify other mutually
agreeable funds or similar investment opportunities to which Subscriber may commit pursuant to this
Section 2.2. Notwithstanding the generality of the foregoing, nothing in this Section 2.2(e) shall
be construed, in any manner, to obligate Subscriber to make any capital commitment in respect of
any investment which is not in compliance with the provisions of Sections 2.2(a) through (d).

          (f) For the purpose of defining certain additional investment opportunities that can qualify
as Alternate funds, Subscriber and the Company shall create an advisory committee (the “Advisory
Committee”). The Advisory Committee shall consist of 4 members, 2 of which shall be appointed by
the Company and 2 by the Subscriber. The Company shall present to the Advisory Committee
prospective investment funds that it determines may be appropriate for Subscriber’s commitment to
Alternate Funds but that are not the same type of funds as are specified in Section 2.2(a)(i) or
otherwise do not meet the criteria set forth in Section 2.2(a) through (d). If the Advisory
Committee approves such new investment fund by the unanimous vote of its 4 members, any commitment
of Subscriber to the new fund shall reduce the available commitment under Section 2.2. Except to
the extent set forth in the

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preceding sentence, nothing in this paragraph (f) shall relieve Subscriber of the Company from
their respective obligations under Section 2.2. The Company shall pay any expenses of the
representatives of Subscriber on the Advisory Committee and shall pay the cost of enhanced
communications equipment to facilitate Advisory Committee actions hereunder.

          2. The Parties hereby waive all provisions of Section 2.2(c) of the Subscription Agreement
with regard to any capital commitment by Subscriber to Thomas Weisel Venture Partner, L.P.

          3. Execution of this Agreement shall constitute a consent to an amended and restated
subscription agreement incorporating the terms hereof.

          4. Except to the extent amended herein, the Subscription Agreement remain in full force and
effect.

     2.3 Other Potential Investments. Subscriber may also make up to $500,000,000 in
additional capital commitments to successor funds or other funds or investment vehicles (“Future
Funds”) that may be established by the Company; provided, however, that nothing in
this Section 2.3 shall be construed, in any manner, to obligate Subscriber to make any capital
commitment in respect of any investment which is not in compliance with the provisions of Sections
2.2(a) through (d). The terms and conditions and amount of capital commitment of Subscriber in
such Future Funds will be determined by the mutual agreement of Subscriber and the Company.

     2.4 Advisory Committee. Subscriber will have the right to appoint one member to any
advisory committee that may be formed in connection with the establishment of any Alternate Fund or
Future Fund in which Subscriber has made a capital commitment.

ARTICLE III.

Representations and Warranties of the Company

     The Company hereby makes the following representations and warranties to Subscriber:

     3.1 Existence of the Company, Etc. The Company is a limited liability company,
validly existing and in good standing under the laws of Delaware with the power and authority to
operate its business as it is presently operated. Each of the Company’s subsidiaries has been duly
incorporated or organized and is validly existing as a corporation or other entity and is in good
standing under the laws of its jurisdiction of incorporation or organization, with the power and
authority to operate its business as presently operated. The Company and each of its subsidiaries
is duly qualified to do business as a foreign limited liability company or other entity in each
other jurisdiction where the conduct of its business requires such qualification, or it is subject
to no Material Adverse Effect as a consequence of failing to be so qualified. The Company has the
power to enter into this Agreement, to perform its obligations hereunder, and to consummate the
transactions contemplated hereby.

     3.2 Approval and Enforceability of Agreement.

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          (a) The execution and delivery of this Agreement and the consummation of the transactions
contemplated hereby have been duly authorized and approved by all necessary action on the part of
the Company, the Executive Committee of the Company and the Shareholders, to the extent required.

          (b) Assuming the due execution and delivery hereof by Subscriber, this Agreement is the legal
valid and binding obligation of the Company, enforceable against the Company according to its
terms, subject to bankruptcy, insolvency, reorganization and other laws affecting creditors’ rights
generally and to general equity principles.

          (c) The execution and delivery of this Agreement and the consummation of the transactions
contemplated hereby have not and will not constitute or result in the breach of any of the
provisions of, or constitute a default under, the LLC Agreement, or any material indenture,
evidence of indebtedness or other material agreement or commitment to which the Company or any of
its subsidiaries is a party or by which it or any of its subsidiaries or any of their respective
properties or assets is bound or subject.

     3.3 Amended and Restated LLC Agreement. On and as of the Closing Date, the LLC
Agreement, assuming the due execution and delivery thereof by Subscriber, will constitute the valid
and legally binding agreement of the Company and its Shareholders.

     3.4 Capitalization and Related Matters. Upon consummation of the transactions
contemplated by this Agreement, the capitalization of the Company will be as set forth on Schedule
3.4. Except as set forth on Schedule 3.4, there are no outstanding options or other rights to
acquire member or Shareholder interests in the Company. Schedule 3.4(b) contains a true, correct
and complete list of all of the subsidiaries of the Company and all other Persons in which the
Company, directly or indirectly, has (or has the right to acquire) an equity interest amounting to
a 20% or greater economic or voting interest. All of the issued shares of capital stock or other
equity interests of each subsidiary or other Person listed on Schedule 3.4(b) have been duly and
validly authorized and issued, are fully paid and non-assessable and, to the extent purporting to
be owned by the Company, are owned directly or indirectly by the Company, free and clear of all
liens.

     3.5 Shares. Upon consummation of the transactions contemplated herein, the Shares
will represent duly and validly issued limited liability company member interests in the Company.

     3.6 Compliance with Laws; Permits and Licenses.

          (a) The Company is in compliance with all laws applicable to its business;

          (b) The Company holds or has filed in a timely manner applications or renewals for all
authorizations required for the conduct of its business as now conducted;

          (c) The Company is in compliance with such authorizations; and

          (d) There is no reasonable ground to believe that any such authorizations will not, in the
ordinary course, be renewable upon their expiration;

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except in each case where the failure to be in compliance or to have filed or hold would not,
individually or in the aggregate, be reasonably expected to have a Material Adverse Effect.

          Anything in this Section 3.6 notwithstanding, it is understood and agreed that the foregoing
shall not be deemed inaccurate by reason of the ordinary expiration of any such authorizations, the
renewal of which is expected to be obtained in the ordinary course without material expense or
material interruption of existing operations.

          The execution and delivery of this Agreement and the consummation of the transactions
contemplated hereby will not result in the foregoing representations and warranties in this Section
3.6 ceasing to be accurate.

     3.7 Contracts. The Company is not a party to any contract which is material to its
business as a whole under the terms of which any other party to such contract is, by reason of
compliance with any provision of this Agreement, entitled: (1) to terminate such contract earlier
than it would, apart from that compliance, have been able to be terminated; or (2) to require the
adoption of terms less favorable to the Company than those subsisting in the absence of that
compliance. To the Company’s knowledge, the Company is not a party to any contract which is
material to its business as a whole of which it is in default, except for such defaults which would
not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect,
and no event has occurred which may be grounds for termination of any such contract by the other
party to such contract.

     3.8 No Default. The Company is not in default (nor has any event occurred which with
notice, lapse of time, or both, would constitute a default) under the LLC Agreement or its
Certificate of Formation, or in the performance of any obligation, agreement or condition contained
in this Agreement, any indenture, mortgage, deed of trust, credit agreement, note or other evidence
of indebtedness or any lease or other agreement, or any license, permit, franchise or certificate,
to which it is a party or by which it is bound or to which its properties are subject, nor is it in
violation of any statute, regulation, law, order, writ, injunction, judgment or decree to which it
is subject, which default or violation, individually or in the aggregate, would reasonably be
expected to have a Material Adverse Effect.

     3.9 ERISA. Each Plan has been maintained, operated and administered in compliance
with its terms and any related documents or agreements and in compliance with any and all
applicable state and federal laws, including but not limited to ERISA and the Internal Revenue
Code, and the regulations, rules and published interpretations thereunder, except where a failure
to comply, individually or in the aggregate, would not reasonably be expected to have a Material
Adverse Effect. No Reportable Event has occurred as to which the Company or any ERISA Affiliate
was required to file a report with the PBGC within 30 days thereafter, and the Company does not
maintain or contribute to any single-employer Plan subject to Title IV of ERISA. Neither the
Company nor any ERISA Affiliate has incurred any Withdrawal Liability that would be likely to
result in a Material Adverse Effect. Neither the Company nor any ERISA Affiliate has received any
notification that any Multiemployer Plan is in reorganization or has been terminated within the
meaning of Title IV of ERISA, and no Multiemployer Plan is reasonably expected to be in
reorganization or to be terminated where such reorganization or termination has resulted or would
reasonably be expected to result, through increases in the

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contributions required to be made to such Plan or otherwise, in a Material Adverse Effect.
Each Plan intended to qualify under Internal Revenue Code Section 401(a) is so qualified, and each
trust maintained in connection with each such Plan is tax-exempt under Internal Revenue Code
Section 501(a). There is no pending or threatened assessment, complaint, claim (other than a
routine claim for benefits), proceeding, audit, voluntary compliance application or investigation
of any kind in or before any court, tribunal or government agency with respect to any Plan that has
resulted, or would reasonably be expected to result, in a Material Adverse Effect. No Plan has or
has incurred an accumulated funding deficiency within the meaning of Section 302 of ERISA or
Section 412 of the Internal Revenue Code, nor has any waiver of the minimum funding standards of
ERISA Section 302 or Section 412 of the Internal Revenue Code been requested or granted with
respect to any such Plan, nor has any lien in favor of any Plan arisen under ERISA Section 302 or
Section 412 of the Internal Revenue Code, any of which has resulted, or would reasonably be
expected to result, in a Material Adverse Effect.

     3.10 Litigation. Except as disclosed in Schedule 3.10, there is no action now pending
or, to the Company’s knowledge, threatened, before any court, grand jury, government authority,
arbitration or mediation panel or similar body to which the Company is a party which, if resolved
adversely to the Company, would reasonably be expected to have a Material Adverse Effect. There is
no action now pending or, to the knowledge of the Company, threatened before any court, grand jury,
government authority, arbitration or mediation panel or similar body which seeks to prevent the
consummation of the transactions contemplated by this Agreement.

     3.11 Consent and Approval. No consent, approval or authorization of, or filing,
registration or qualification with, any court or governmental authority on the part of the Company
is required for the execution and delivery of this Agreement by the Company, the issuance of the
Shares and the consummation by the Company of the other transactions contemplated hereby to be
consummated on or prior to the Closing Date.

     3.12 Exemption from Registration. The offer and sale of the Shares under the
circumstances contemplated by this Agreement are exempt from the registration requirements of the
Securities Act, by virtue of Section 4(2) and Regulation D, and any state securities or “blue sky”
statute.

     3.13 Tax Returns. The Company is taxable as a partnership for U.S. federal income tax
purposes. The Company has filed or caused to be filed all Federal tax returns and all material
state and local tax returns required to have been filed by it and has paid or caused to be paid all
taxes shown to be due and payable by it on such returns or on any assessments received by it,
except any such tax, the validity or amount of which is being contested in good faith by
appropriate proceedings and as to which the Company has set aside on its books adequate reserves
with respect thereto in accordance with GAAP (as hereinafter defined) . Neither the Company nor
its subsidiaries has received any tax assessment, notice of proposed adjustment or deficiency
notice from any taxing authority.

     3.14 Financial Statements. (i) The audited consolidated statement of financial
condition of the Company as of December 31, 1998, together with the audited consolidated statements
of operations, changes in members’ capital and cash flows of the Company for the fiscal year then
ended, delivered by the Company to Subscriber, audited by and accompanied by

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the opinion of Deloitte & Touche LLP, independent public accountants, are complete and correct
in all material respects, are in accordance with and derived from the Company’s books and records,
fairly present the consolidated financial condition of the Company and its consolidated results of
operations as of the date and for the period referred to therein and have been prepared in
accordance with generally accepted accounting principles consistently applied (“GAAP”).

     (i) The unaudited consolidated statement of financial condition of the Company,
as of November 30, 1999, together with the unaudited statement of operations of the
Company for the period then ended, delivered by the Company to Subscriber, are
complete and correct in all material respects, are in accordance with and derived
from the Company’s books and records, fairly present the consolidated financial
condition of the Company and its consolidated results of operations, as of the date
and for the period referred to therein and have been prepared in accordance with
GAAP (subject to the omission of footnote disclosures).

     (ii) The Company maintains and will continue to maintain a standard system of
accounting established and administered according to GAAP.

     (iii) Neither the Company nor any of its subsidiaries has sustained since the
date of the most recent balance sheet delivered to Subscriber any material loss or
interference with its business from fire, explosion, flood or other calamity,
whether or not covered by insurance, or from any labor dispute or court or
governmental action, order or decree; and, since the date of such balance sheet,
there has not been any change in the long-term debt of the Company or any of its
subsidiaries which would reasonably be expected to have a Material Adverse Effect,
or any development involving a prospective Material Adverse Effect.

     (iv) Deloitte & Touche LLP and PriceWaterhouseCoopers LLP, who have each
certified various audited consolidated financial statements of the Company and its
subsidiaries, are independent public accountants as required by the Securities
Exchange Act of 1934 and the rules and regulation of the Securities and Exchange
Commission thereunder and by Rule 101 of the AICPA’s Code of Professional Conduct
and their respective interpretations and rulings.

     3.15 No Material Misstatements. No representation or warranty set forth herein and no
exhibit or schedule attached hereto contains any untrue statement of material fact or omits to
state any material fact necessary to make the statements herein or therein, in the light of the
circumstances under which they were made, not misleading. As stated in the presentation of the
financial projections previously delivered by the Company to Subscriber: (i) the financial
projections contain forward-looking assumptions and statements; (ii) factors that could cause the
actual outcome or results to differ materially from the projections, and assumptions made in
calculating the projections, include, without limitation, market conditions, competition, voluntary
and/or involuntary changes in investment opportunities and/or commitments, personnel changes and
similar factors; and (iii) the summary of key assumptions included in the financial projections is
an integral part of the projections set forth therein. Notwithstanding the foregoing, to the
extent that any information contained in this Agreement or any exhibit or schedule hereto

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was based on or constitutes a forecast or financial projection, the Company represents only
that each such forecast or projection, including the financial projections mentioned above, were
prepared in good faith based upon assumptions believed by the Company to be reasonable at the
respective times of preparation.

     3.16 Year 2000. The Company has reviewed its operations and those of its subsidiaries
and any third parties with which the Company or any of its subsidiaries has a material relationship
to evaluate the extent to which the business or operations of the Company or any of its
subsidiaries will be affected by Year 2000 issues. Based on the results of such review to the date
hereof, the Company has no reason to believe, and does not believe, that Year 2000 issues have had
or will have a Material Adverse Effect.

     3.17 Employee Relations. The Company is not bound by or subject to (and none of its
assets or properties is bound by or subject to) any written or oral, express or implied, contract,
commitment or arrangement with any labor union. No labor dispute with the employees of the Company
or any of its Subsidiaries exists, or, to the knowledge of the Company, is imminent that,
individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect;
and the Company is not aware of any existing, threatened or imminent labor disturbance by the
employees of any third parties with which the Company has a material relationship that would
reasonably be expected to result in a Material Adverse Effect. The Company is not aware that any
officer or key employee, or any group of key employees, intends to terminate their employment with
the Company, nor does the Company have any present intention to terminate the employment of any of
such Persons, in either case that would reasonably be expected to result in a Material Adverse
Effect. The Company has complied in all material respects with all employment laws which apply to
the Company including provisions thereof which relate to wages, hours, equal opportunity,
antidiscrimination and employee disability.

     3.18 Insurance. The Company and its subsidiaries maintain insurance with insurers of
recognized financial responsibility covering its properties, operations, personnel and businesses
against such losses and risks and in such amounts as are prudent and customary in the businesses in
which they are engaged; neither the Company nor any of its subsidiaries has been refused any such
insurance coverage sought or applied for; neither the Company nor its subsidiaries has received
notice from any insurer or agent of such insurer that substantial capital improvements or other
expenditures will have to be made in order to continue such insurance; all such insurance is
outstanding and duly in force on the date hereof and will be outstanding and duly in force on the
Closing Date; and neither the Company nor any of its subsidiaries has any reason to believe that it
will not be able to renew its existing insurance coverage as and when such coverage expires or to
obtain similar coverage from similar insurers as may be necessary to continue its business at a
cost that would not be reasonably be expected to have a Material Adverse Effect.

     3.19 Registration Rights. The Company has not granted or agreed to grant any
registration rights with respect to any of its securities to any holder or prospective holder
thereof.

     3.20 Foreign Corrupt Practices Act. The Company has not made, offered or agreed to
offer anything of value to any government official, political party or candidate for government
office (or any person that the Company knows or has reason to know, will offer anything of value to
any government official, political party or candidate for political office), nor has it taken

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any action which would cause the Company to be in knowing violation of any law of any foreign
jurisdiction or the Foreign Corrupt Practices Act of 1977, as amended. There is not now nor has
there ever been any employment by the Company of any governmental or political official in any
country.

     3.21 Broker’s Fees. The Company has not retained any broker, finder or agent or
agreed to pay any brokerage fees, finder’s fees or commissions with respect to the transactions
contemplated by this Agreement.

ARTICLE IV.

Representations and Warranties of Subscriber

     Subscriber hereby makes the following representations and warranties to the Company:

     4.1 Existence of Subscriber. Subscriber is validly existing and, if applicable, in
good standing under the laws of California.

     4.2 Authorization; Enforcement. Assuming the due execution and delivery hereof by the
Company, this Agreement is the legal, valid and binding obligation of Subscriber, enforceable
against Subscriber according to its terms, subject to bankruptcy, insolvency, reorganization and
other laws affecting creditors’ rights generally and to equity principles. As of the Closing Date,
the LLC Agreement, upon due authorization and execution by the other parties thereto, will
constitute the valid and legally binding Agreement of Subscriber.

     4.3 Consents and Approvals. No consent, approval, authorization or order of
governmental or other third parties is required for the consummation by Subscriber of the
transactions contemplated hereby to be consummated on or prior to the Closing Date.

     4.4 Status and Investment Intent. Subscriber is an “accredited investor” as defined
in Regulation D under the Securities Act of 1933 and is purchasing the Shares for its own account
for investment and not with a view to any distribution thereof subject, however, to any requirement
of law that the disposition of its property shall at all times be within its control. Subscriber
has such knowledge and experience in financial matters as to be capable of evaluating the merits
and risks of an investment in the Shares.

     4.5 Basis for Investment; No Reliance.

          (a) Subscriber has received and carefully reviewed any documents requested of the Company by
Subscriber related to this investment.

          (b) Subscriber has been given the opportunity to (i) ask questions of, and receive answers
from, the Company concerning the terms and conditions of this offering and other matters pertaining
to an investment in the Shares, and (ii) obtain any additional information which the Company can
acquire without unreasonable effort or expense that is necessary to evaluate the merits and risks
of an investment in the Company. Subscriber’s decision to buy the Shares was made on the basis of
Subscriber’s independent analysis of the terms of the purchase, and arm’s length discussions with
representatives of the Company.

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          (c) Subscriber is not relying on the Company or any representative of the Company, for oral or
written advice as to legal, tax, accounting or other expert advice. Except as expressly set forth
in this Agreement, no representations or warranties have been made to Subscriber by the Company, or
any employee or agent of the Company. In particular, Subscriber acknowledges that there have been
no representations, guarantees or warranties made to it by the Company, its employees or agents, or
by any other person, with respect to (i) the approximate length of time that it will be required to
remain as the owner of the Shares; or (ii) the amount or timing of consideration, profit or loss to
be realized, if any, as a result of this investment.

          (d) Subscriber has consulted with its own legal, regulatory, tax, business, investment,
financial and accounting advisors to the extent it has deemed necessary, and has made its own
investment decisions (including decisions regarding the suitability of an investment in the
Shares), based upon its own judgment and any advice from such advisors. Subscriber has determined
that the Shares are a suitable investment for Subscriber, in light of Subscriber’s investment
goals, ability to sustain losses, needs for liquidity and previous decisions to invest in
securities such as the Shares or securities bearing similar risks.

          (e) Subscriber is fully cognizant of and understands all of the terms, risks and merits
related to a purchase of the Shares. Subscriber is acquiring the Shares with a full understanding
of all of the terms, conditions and risks (economic and otherwise) related thereto. It has such
knowledge and experience in financial and business matters generally as to be capable of evaluating
the merits and risks of an investment in the Company and is willing to assume (financially and
otherwise) those risks.

     4.6 Restriction on Transferability. Subscriber has not and will not enter into,
without the written consent of the Company, any agreement or arrangement to directly or indirectly
share or transfer any of the legal or economic risks or rewards of ownership of the Shares except
as permitted by the LLC Agreement.

     4.7 No Brokers, Etc. Subscriber has not employed any broker, finder, advisor or
intermediary in connection with the transactions contemplated by this Agreement which would be
entitled to payment by the Company of any broker’s, finder’s or similar fee or commission in
connection therewith or upon the consummation thereof; provided that Pacific Corporate
Group shall be deemed not to be a broker, finder, advisor or intermediary for the purposes of this
Section 4.7.

ARTICLE V.

Certain Covenants and Agreements of the Company and Subscriber

     5.1 Access and Information.

          (a) In addition to the information rights described in Sections 7.2 and 7.3 of the LLC
Agreement, Subscriber and its representatives shall have reasonable access during normal business
hours, upon reasonable advance notice, to the books and records of the Company and other
information reasonably related to the purchase of the Shares including, but not limited to,
management reports, budgets, forecasts and strategic plans (notwithstanding that

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such information
may constitute trade secrets of the Company), provided that such access shall be conducted by Subscriber and its representatives in such a manner as not to interfere
unreasonably with the business of the Company.

          
 (b) In connection with the information referred to in paragraph (a) above, the Company may
disclose confidential information to Subscriber. All such information, other than information
that:

     (i) is known by Subscriber prior to its disclosure to Subscriber by the Company
or its representatives;

     (ii) is or becomes publicly available other than as a result of a disclosure by
Subscriber or its representatives; or

     (iii) is or becomes available to Subscriber or its representatives on a
nonconfidential basis from a source (other than the Company or its representatives)
which, to Subscriber’s knowledge, is not prohibited from disclosing such information
by a confidentiality obligation with the Company,

is referred to as “Confidential Information”. Subscriber agrees that it and its representatives
will keep Confidential Information relating to the Company confidential and will not (except as
required by applicable law, regulation or legal process or as otherwise provided herein), without
the Company’s prior written consent:

     (i) disclose any Confidential Information to any other person other than its
representatives; and

     (ii) not use Confidential Information other than in connection with the
acquisition of the Shares, its monitoring of such investment and with respect to
Alternate Funds and the exercise of any rights in connection therewith.

          
 In the event of any inconsistency between the provisions of this Section 5.1(b) and Section
5.6 of the LLC Agreement, the provisions of this Section 5.1(b) shall control.

     5.2 Regulatory Filings. Subscriber and the Company shall furnish such necessary
information and reasonable assistance as the other party to this Agreement may reasonably request
in connection with any necessary filings, responses to inquiries, or submissions to any
governmental agency in connection with transactions contemplated hereby.

     5.3 Cooperation. Subject to the terms and conditions of this Agreement, the Company
and Subscriber agree to use their reasonable best efforts to take, or cause to be taken, all
actions and to do, or cause to be done, all things necessary, proper or advisable under applicable
laws and regulations to consummate the purchase and sale of the Shares, as soon as reasonably
practicable.

     5.4 Fees and Expenses. Except as provided in Section 7.2(b) and Section 7.13, whether
or not the transactions contemplated hereby are consummated or this Agreement is terminated
pursuant to Section 7.1, each party shall pay the fees and expenses of its own counsel,

-14-

 

 accountants
and other experts and all other expenses incurred by such party
incident to the negotiation, preparation, execution, delivery and performance of this Agreement and the LLC
Agreement and the consummation of the transactions contemplated hereby and thereby.

     5.5 Future Cooperation. Following the closing of the purchase and sale of the Shares
pursuant to this Agreement, the Company and Subscriber intend to maintain an ongoing dialog for the
purpose of discovering and pursuing further mutually advantageous business opportunities.

     5.6 Tag Along Rights. (a) In the event that any of Messrs. Weisel, Lemke, Menkes,
Miller, Dunlevy or Schultzer propose to sell or otherwise dispose of any Class A Shares owned by
them to a third party pursuant to a bona fide offer to purchase such Class A Shares (the “Tag-Along
Offer”), the disposing Shareholder(s) shall provide written notice (the “Tag-Along Notice”) of such
Tag-Along Offer to Subscriber. Such Tag-Along Notice shall set forth (i) the name(s) of the
disposing Shareholder(s), (ii) the number of Class A Shares being sold or disposed of (the “Offered
Shares”) and the percentage (on a fully-diluted basis) of the outstanding equity securities of the
Company represented by the Offered Shares, (iii) the name and address of all prospective
purchasers, (iv) the proposed amount and form of consideration and terms and conditions of payment
and purchase, and (v) any other material terms and conditions upon which the Offered Shares are
proposed to be sold. If the offer price consists in part or in whole of consideration other than
cash, the disposing Shareholder(s) will provide such information, to the extent reasonably
available to the disposing Shareholder(s), relating to such consideration as Subscriber may
reasonably request in order to evaluate such non-cash consideration.

          (b) Subscriber will have the right, exercisable as set forth below, to accept the Tag-Along
Offer for such number of Shares as shall be determined pursuant to paragraph (d) below. Within ten
(10) days after receipt of the Tag-Along Notice from the disposing Shareholder(s), Subscriber shall
provide the disposing Shareholder(s) and the Company with an irrevocable written notice (the
“Tag-Along Exercise Notice”) specifying the maximum number of Shares that Subscriber desires to
include in the Tag-Along Offer. However, the number of Shares so specified by Subscriber, as a
percentage of the total Shares held by Subscriber, shall not exceed the number of Offered Shares of
the Disposing Shareholder(s), as a percentage of the total Class A Shares held by the disposing
Shareholder(s). Delivery of the Tag-Along Exercise Notice by Subscriber shall constitute an
irrevocable acceptance of the Tag-Along Offer for all of the Shares included in such Tag-Along
Exercise Notice.

          (c) If Subscriber has exercised its rights under paragraph (b) above, not less than three (3)
business days prior to the proposed closing date of any sale or other disposition pursuant to the
Tag-Along Offer, the disposing Shareholder(s) shall notify Subscriber of the proposed closing date.
Subscriber shall provide such documentation as may be required to effect the transfer such Shares
pursuant to the terms and conditions set forth in the Tag-Along Offer.

          (d) Subscriber will have the right to sell pursuant to the Tag-Along Offer (and the disposing
Shareholder(s) will, to the extent necessary, reduce the amount or number of Class A Shares to be
sold by the disposing Shareholder(s) by a corresponding amount) a number of Shares equal to the
product of the total number of Offered Shares subject to the Tag-Along Offer

-15-

 

multiplied by a
fraction (the “Tag-Along Ratio”), the numerator of which will be the aggregate amount or number of Shares which Subscriber desires to sell pursuant to such Tag-Along Offer
and the denominator of which will be the aggregate number of equity securities of the Company
(calculated on a fully-diluted basis) which the disposing Shareholder(s) and Subscriber desire to
sell pursuant to such Tag-Along Offer.

          (e) The disposing Shareholder(s) will have 60 days after expiration of the 10-day exercise
period contemplated by paragraph (b) above in which to consummate the sale or other disposition of
the Offered Shares owned by such disposing Shareholder(s) and Subscriber, if Subscriber has
exercised its rights under paragraph (b) above, as contemplated by the Tag-Along Offer on
substantially the same terms contained in the Tag-Along Notice. If, at the end of such 60-day
period, the disposing Shareholder(s) have not completed such sale or other disposition (for any
reason other than a failure of Subscriber to perform its obligations under this Section 5.6), the
right of the disposing Shareholder(s) to effect such sale or other disposition will terminate, and
the Class A Shares of such disposing Shareholder(s) proposed to be sold or otherwise disposed of
will again be subject to all the restrictions contained in this Agreement or the LLC Agreement
relating to their sale or other disposition including, without limitation, this Section 5.6.

          (f) Promptly after the consummation of the sale or other disposition contemplated by the
Tag-Along Offer, the disposing Shareholder(s) will notify Subscriber thereof and will remit to
Subscriber the total sales price, if any, attributable to the Shares sold by Subscriber pursuant
thereto.

          (g) Notwithstanding anything contained in this Section 5.6, there will be no liability on the
part of the disposing Shareholders to Subscriber if the sale or other disposition contemplated by
the Tag-Along Offer is not consummated by the disposing Shareholder(s) for any reason whatsoever.
The decision as to whether to effect a sale or other disposition of Class A Shares pursuant to this
Section 2.5 is in the sole and absolute discretion of the disposing Shareholder(s).

          (h) The disposing Shareholder(s) will promptly notify Subscriber of any negotiations with the
third party with respect to representations, warranties and indemnities in connection with the
Tag-Along Offer if Subscriber will be required to sign any agreement (a “Tag-Along Sale Agreement”)
with respect to such representations, warranties or indemnities; provided that Subscriber
will not be required to make representations, warranties, indemnifications and other covenants in
the Tag-Along Sale Agreement which are not substantially similar to those made by the disposing
Shareholder(s) therein; and provided, further, that Subscriber will not be required
to make representations and warranties which Subscriber reasonably believes in good faith to be
incorrect.

          (i) For purposes of this Section 5.6, any series of transactions for the sale or other
disposition of Class A Shares by one or more of Messrs. Weisel, Lemke, Menkes, Miller, Dunlevy and
Schultzer within a reasonable period of time of each other or pursuant to the same or a related
agreement or contemplated as a single transaction or an installment or step transaction or to the
same third party or affiliated third parties shall be deemed one and the same

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transaction for
purposes of calculating the aggregate number of Offered Shares and determining the rights of the
Subscriber hereunder.

          (j) All rights of Subscriber under this Section 5.6 shall terminate upon consummation of any
IPO (as defined in the LLC Agreement). It shall be a condition to closing that the Company obtain
and deliver to Subscriber the written agreement of each of Messrs. Weisel, Lemke, Menkes, Miller,
Dunlevy and Schultzer agreeing to be bound by the terms and conditions of this Section 5.6, in form
and substance reasonably satisfactory to Subscriber.

     5.7 Key Man Provisions. In the event insurance proceeds are received by the Key Man
Trust, such proceeds shall be made available, first, to redeem, on a pro rata basis, the Shares at
the election of holders thereof, at the applicable redemption price specified in the LLC Agreement,
which shall include any accrued but unpaid fixed preferred return on the Shares, and second, as to
any remaining proceeds, to revert to the Company as a settlor of the Key Man Trust. The Company
agrees to diligently pursue payment of such insurance proceeds to the Key Man Trust if such payment
is warranted and, as provided in the trust agreement of the Key Man Trust, the holders of the
Shares shall be given notice of the redemption right within 60 days following the death of the
insured, and the holders shall have 30 days after receiving such notice to elect (by notice in
writing delivered to the trustee of the Key Man Trust) to exercise such redemption right. However,
if any proceeds revert to the Company in accordance with the foregoing sentence, and if the Company
proposes to distribute some or all of the insurance proceeds to Shareholders as Operating Profits
pursuant to Section 4.2(d) of the LLC Agreement (as opposed to retaining such proceeds in its
business, for example by using them to make retention payments to key employees), then such
distribution to Shareholders will be made so that the Shares participate on an “as converted” basis
(e.g., of the Closing Date, the holders of the Shares would receive 9.999% of the amount
distributed to Shareholders pursuant to Section 4.2(d)(ii) of the LLC Agreement).

     5.8 Use of Proceeds. The Company shall use the proceeds of the sale of Shares
contemplated hereby only for general corporate purposes which support the long term growth of the
Company or for strategic corporate investments, including funding businesses or lines of business
in financial services industries in which the Company operates.

     5.9 Financial Statements. Notwithstanding the generality of Section 5.1(a):

          (a) As soon as available, and in any event within 90 days after the end of each fiscal year of
the Company, the Company shall deliver to Subscriber a balance sheet of the Company as of the end
of such fiscal year, a statement of cash flows of the Company for such fiscal year, and a statement
of operations of the Company for such fiscal year, all in reasonable detail and stating in
comparative form the figures as of the end of such fiscal year and for the previous fiscal year and
accompanied by an opinion addressed to the Company from independent public accountants of national
standing.

          (b) As soon as available, and in any event within 45 days after the end of each fiscal quarter
of the Company, the Company shall deliver to Subscriber an unaudited balance sheet of the Company
as of the end of such quarter, an unaudited statement of operations and of

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cash flows for such
quarter, showing the figures for the corresponding data and period in the previous year.

          (c) The Company shall deliver to Subscriber such other financial information provided
generally to other Shareholders at the same time as such information is provided to the other
Shareholders.

          (d) In the event that the Company at any time hereafter shall be required, by law or by
generally accepted accounting principles to consolidate its financial statements with those of a
subsidiary, the Company shall thereafter furnish the financial statements required by this Section
5.9 on a consolidated basis.

     5.10 Expense Reimbursements; Indemnification. The Company will reimburse each member
of the Advisory Committee or, if applicable, the Executive Committee, who is employed by or
affiliated with Subscriber, or who serves at the discretion of Subscriber, or other persons
employed or affiliated with Subscriber who attend meetings at the request of the Company, for out
of pocket expenses reasonably incurred by such member in attending meetings of the Company’s
Advisory or Executive Committee or other meetings at the request of the Company, as the case may
be, including airfare. The Company will indemnify each member of the Advisory Committee who is
employed by or affiliated with Subscriber, in his or her capacity as a member of the Advisory
Committee, on the same terms as the Company indemnifies the members of the Executive Committee
pursuant to Section 6.9(c) of the LLC Agreement.

     5.11 D&O Insurance. The Company will use its best efforts to obtain and maintain, for
so long as any representative of Subscriber serves on the Company’s Executive Committee, insurance
policies with reputable insurance companies or associations insuring such representatives and
Subscriber against personal liability for acts and omissions while a member of the Executive
Committee, with coverage in a minimum amount of $1,000,000 per occurrence, exclusive of deductibles
and coinsurance, but only if such coverage is available at reasonable rates as determined in good
faith by the Executive Committee.

     5.12 Maintenance of Commercial Insurance. The Company shall maintain insurance with
reputable insurance companies or associations in such amounts and covering such risks as is
customarily carried by companies engaged in similar businesses in the same general areas in which
the Company operates.

     5.13 Payment of Taxes. The Company shall pay and discharge, and cause each of its
subsidiaries to pay and discharge, before the same become delinquent and before penalties accrue
thereon, all taxes, assessments and governmental charges upon or against them or any of their
properties, except to the extent and so long as the same are being contested in good faith and by
appropriate proceedings in such a manner as not to cause any material adverse effect upon its
financial condition.

     5.14 Standard System of Accounting. The Company will continue to maintain a standard
system of accounting established and administered according to GAAP.

     5.15 Partner Compensation. The Company will not modify the general compensation
structure generally applicable to its partners which is currently in effect on the date hereof,

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pursuant to which the compensation of such persons is primarily derived through their right to
share in the operating profits of the Company pursuant to their share ownership in the Company.

     5.16 Transfer to Affiliates. The Company agrees that Subscriber may transfer the
Shares (on the Class C-1 Preference Shares into which the Shares are convertible) to any Affiliate
of Subscriber without compliance with Section 9.1 of the LLC Agreement, provided that Subscriber
and such Affiliate will provide the Company with such documents and assurances as the Company may
reasonably require in connection with such transfer.

ARTICLE VI.

Conditions to Closing

          The respective obligations of each of Subscriber and the Company to consummate the
transactions provided for in this Agreement shall be subject to the satisfaction or waiver of each
of the following conditions:

     6.1 Representations and Warranties. The representations and warranties of each of
Subscriber and the Company contained in this Agreement shall be true and correct on the date hereof
and on the Closing Date, except to the extent that any representation or warranty is made as of a
specified date, in which case such representation or warranty shall be true in all material
respects as of such date, and except to the extent of changes permitted by the terms of this
Agreement.

     6.2 Performance of this Agreement. Each of Subscriber and the Company shall have
performed or complied with all of the obligations to be performed or complied with by it under the
terms of this Agreement on or prior to the Closing Date in all material respects.

     6.3 No Injunctions. No injunction, restraining order or decree of any court or
governmental authority shall exist against Subscriber or the Company that prevents the consummation
of transactions contemplated hereby or which would reasonably be expected to have a Material
Adverse Effect.

     6.4 No Material Adverse Change. Neither the Company nor any of its subsidiaries shall
have sustained since the date of the most recent balance sheet delivered to Subscriber any material
loss or interference with its business from fire, explosion, flood or other calamity, whether or
not covered by insurance, or from any labor or court or governmental action, order or decree, and
there shall not have been any change in the equity securities or long-term debt of the Company or
any of its subsidiaries, or any other development, which would reasonably be expected to,
individually or in the aggregate, have a Material Adverse Effect.

     6.5 Payment of Purchase Price. The Company shall receive from Subscriber on the
Closing Date the Purchase Price to be delivered under Article II hereof net of any expenses
reimbursable to Subscriber under Section 7.13.

     6.6 LLC Agreement. Subscriber shall receive from the Company, and to the extent their
consent is required for the LLC Agreement, as amended and restated, to be effective against them,
the Shareholders of the Company on the Closing Date an executed counterpart of the LLC

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Agreement
admitting Subscriber as a Shareholder of the Company and as the holder of the Shares pursuant
thereto and effecting the amendments to the existing LLC Agreement contemplated thereby.

     6.7 Blue Sky. All permits and other authorizations under state securities laws
necessary to consummate the transactions contemplated hereby and to issue the Shares shall have
been received and be in full force and effect.

     6.8 Compliance with Applicable Law. The filing and waiting period requirements of and
any approvals necessary under the Hart-Scott-Rodino Act and any other applicable law relating to
consummation of the transactions provided for herein shall have been duly complied with.

     6.9 Corporate Documents. Subscriber shall have received good standing certificates
and certified copies of the Certificate of Formation of the Company, the LLC Agreement and all
corporate authority for the Company (including, without limitation, Executive Committee resolutions
and evidence of the incumbency of officers) with respect to the execution, delivery and performance
of this Agreement and the amendment and restatement of the LLC Agreement and each other document to
be delivered by the Company from time to time in connection herewith (and the Subscriber may
conclusively rely on any such certificate).

     6.10 Officers Certificate. The Company shall have delivered to Subscriber a
certificate signed by an authorized officer of the Company as to the Company’s compliance with the
conditions in Sections 6.1, 6.2, 6.3 and 6.4 above.

     6.11 Legal Opinion. Sullivan and Cromwell, counsel to the Company, shall have
delivered to Subscriber their opinion, dated the Closing Date, with respect to the formation and
due existence and foreign qualification of the Company, the due authorization, execution and
delivery, and the valid and binding nature, of this Agreement and the LLC Agreement (subject to
customary exceptions) and the performance of the transactions contemplated thereby, the validity of
the Shares, the absence of any conflicts with organizational documents, applicable law or listed
material agreements, the absence of any required consents (other than those which are obtained),
exemption from Federal and state securities laws, and such other matters as may be reasonably
requested by Subscriber or its counsel, which opinion must be reasonably satisfactory in form and
substance to Subscriber.

     6.12 Key Man Trust. The Company shall have established a trust (the “Key Man Trust”)
holding an insurance policy in the amount of at least $50,000,000 on the life of Thomas Weisel with
an insurer, reasonably acceptable to Subscriber, for a minimum period of at least two years
following the Closing Date.

     6.13 Certificate of Executive Committee Members. Subscriber shall have received from
each member of the Executive Committee a certificate substantially in the following form:

January __, 2000

This certificate is delivered in connection with the investment by California
Public Employees’ Retirement System in Class D Redeemable Convertible Shares of

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Thomas Weisel Partners Group LLC. My most recent appointment with my physician
for a general check-up was in ___. This is to confirm that I am in
generally good health and have no known illnesses or medical conditions which
would materially impair my ability to perform services for Thomas Weisel
Partners Group LLC as a member of the Executive Committee for the foreseeable
future.

	 	 	 
	 

	 	 
	 

	 	[Name]

     6.14 Further Assurances. Prior to the Closing Date, the Company shall have furnished
to Subscriber such further information, certificates and documents as Subscriber may reasonably
request.

ARTICLE VII.

Miscellaneous

     7.1 Termination.

          (a) This Agreement may be terminated at any time prior to the Closing Date:

     (i) by mutual action of the Company and Subscriber;

     (ii) by the Company, if the conditions set forth in Article VI shall not have
been complied with or performed by Subscriber and such noncompliance or
nonperformance shall not have been cured or eliminated by February 29, 2000; or

     (iii) by Subscriber, if the conditions set forth in Article VI shall not have
been complied with or performed by the Company and such noncompliance or
nonperformance shall not have been cured or eliminated by February 29, 2000.

          (b) In the event of the termination of this Agreement pursuant to this Section 7.1, this
Agreement shall thereafter become void and have no effect, and no party hereto shall have any
liability to any other party hereto or its partners, members, shareholders, directors or officers
in respect thereof, except for the obligations of the parties in Sections 5.1(b) and 5.4 and
Section 7.13 and except that nothing herein will relieve any party from liability for any breach of
this Agreement prior to such termination. Neither party shall in any event be liable to the other
party for loss of anticipated profits from the transactions contemplated by this Agreement or for
any other consequential damages arising out of the termination of this Agreement.

     7.2 Survival of Representations and Warranties; Indemnification.

          (a) The covenants of the parties contained in this Agreement shall survive the closing. The
representations and warranties of the parties contained in this Agreement shall survive the closing
for a period of 2 years after the Closing Date and shall then expire, except to the extent that a
party hereto has given notice of a breach of a representation or warranty to an Indemnifying Person
with respect to such breach prior to the expiration of such 2-year period, in

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which case, such
representation or warranty shall survive until the claim for indemnification with respect to such
breach has been finally settled or adjudicated.

          (b) Each party hereto (the “Indemnifying Person”) shall indemnify and hold harmless
each other party hereto and its Affiliates and their respective officers, directors, members,
partners, agents and employees (such other party and each such other person, an “Indemnified
Person”) from and against all claims, liabilities, losses, damages and expenses (including
reasonable fees and disbursements of counsel) incurred by an Indemnified Person which are related
to or arise out of (i) any breach of representation or warranty by the Indemnifying Person
contained in this Agreement or in any certificate delivered pursuant to this Agreement,
provided that any such claim for indemnity based on an alleged breach of a representation
or warranty is asserted by notice to the Indemnifying Person not later than 2 years after the
Closing Date; or (ii) any breach of any covenant or agreement of the Indemnifying Person set forth
in this Agreement.

     7.3 Specific Enforcement. The Company and Subscriber acknowledge and agree that
irreparable damage would occur in the event that any of the provisions of this Agreement were not
performed in accordance with their specific terms or were otherwise breached. It is accordingly
agreed that, to the full extent permitted by law or equity, each of the parties shall be entitled
to an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement and
to enforce specifically the terms and provisions hereof in any court of the United States or any
state thereof having jurisdiction, this being in addition to any other remedy to which they may be
entitled by law or equity.

     7.4 Notices. All notices provided for herein shall be validly given if in writing and
delivered personally or by facsimile transmission (with oral confirmation of receipt), if to:

(i) The Company:

Thomas Weisel Partners LLC

600 Montgomery Street, 34th Floor

San Francisco, California 94111

 Attention: David Baylor, Esq.

Facsimile: (415) 364-2849

With a copy to:

Sullivan & Cromwell

1888 Century Park East, 21st Floor

Los Angeles, California 90067

Attention: Frank H. Golay, Esq.

and Steven B. Stokdyk, Esq.

Facsimile: (310) 712-8800

(ii) Subscriber:

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California Public Employees’

Retirement System

Lincoln Plaza

400 P Street

Investment Office, Suite #3492

Sacramento, CA 95814

Attention: Barry Gonder and Richard Hayes

Facsimile: 916-558-4058

With a copy to:

Jones, Day, Reavis & Pogue

599 Lexington Avenue

New York, NY 10022

Attention: Eric Maki, Esq.

Facsimile: (212) 755-7306

and to:

Jones, Day, Reavis & Pogue

555 West Fifth Street Suite 4600

Los Angeles, CA 90013

Attention: Dulcie D. Brand, Esq.

Facsimile: (213) 243-2539

or to such other address or facsimile number as any party may, from time to time, designate in a
written notice given in a like manner.

     7.5 Headings. The headings herein are for convenience only, do not constitute a part
of this Agreement, and shall not be deemed to limit or affect any of the provisions hereof.

     7.6 Modification. Neither this Agreement nor any provision hereof may be modified,
discharged or terminated except by an instrument in writing signed by the party against whom any
waiver, change, discharge or termination is asserted.

     7.7 Binding Effect. This Agreement is binding upon and shall inure to the benefit of
the parties and the Indemnified Persons and their heirs, executors, administrators, successors and
legal representatives, and this Agreement is intended for the benefit of no other persons.

     7.8 Assignability. This Agreement is not transferable or assignable by either party,
except with the prior written consent of the non-assigning party, which consent shall not be
unreasonably withheld.

     7.9 Applicable Law. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF CALIFORNIA,

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WITHOUT GIVING EFFECT TO THE PRINCIPLES OF THE CONFLICTS OF LAWS THEREOF.

     7.10 Severability. Any term or provision of this Agreement that is invalid or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms
or provisions of this Agreement or affecting the validity or unenforceability of any of the terms
or provisions of this Agreement in any other jurisdiction.

     7.11 Counterparts. This Agreement may be executed through the use of separate
signature pages or in any number of counterparts, and each of such counterparts will, for all
purposes, constitute one agreement binding on all the parties, notwithstanding that all parties are
not signatories to the same counterpart.

     7.12 Gender. As used in this Agreement, the masculine gender shall include the
feminine and neuter, and vice versa, as the context so requires; and the singular number shall
include the plural, and vice versa, as the context so requires.

     7.13 Expenses. Whether or not this Agreement is terminated or the transactions
contemplated hereby are ever consummated, the Company will reimburse Subscriber for its reasonable
legal and other expenses with respect to the purchase of the Shares from the Company, up to
$1,200,000.

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     IN WITNESS WHEREOF, the Company and Subscriber have caused this Agreement to be duly executed
as of the date hereof.

	 	 	 	 	 
	THE COMPANY:	 	THOMAS WEISEL PARTNERS GROUP LLC,
	 	 	a Delaware limited liability company
	 
	 	 	 	 
	 

	 	By:
	 	/s/ David Baylor
	 

	 	 	 	 
	 

	 	 	 	David A. Baylor
	 

	 	 	 	General Counsel & Secretary
	 
	 	 	 	 
	SUBSCRIBER:	 	CALIFORNIA PUBLIC EMPLOYEES’
	 	 	RETIREMENT SYSTEM
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Richard Hayes
	 

	 	 	 	 
	 

	 	Its:
	 	Senior Investment Officer

-25-exv10w15

 

EXHIBIT 10.15

ALLIANCE AGREEMENT

     This
Alliance Agreement (“Agreement”) is made and entered into as of November 14, 2001 (the
“Effective Date”), among Nomura Securities Co., Ltd., a Japanese corporation (“NSC”) Nomura
Corporate Advisors Co., Ltd., a Japanese corporation (“NCA”), Nomura Holding America Inc., a
Delaware corporation, (“NHA”) (together NSC, NCA and NHA are referred to as the “Nomura Parties”
and individually a “Nomura Party”), and Thomas Weisel Partners Group LLC, a Delaware limited
liability company, (“TWP”).

RECITALS

     WEREAS, NSC, is one of the world’s largest brokerage and investment banks;

     WHEREAS, NCA is NSC’s principal vehicle for executing NSC’s mergers and acquisitions business;

     WHEREAS, NHA is the umbrella holding company for NSC’s business in North America;

     WHEREAS, TWP is a merchant bank providing investment banking, institutional brokerage, private
equity investing and asset management services;

     WHEREAS, the parties desire to cooperate to develop their cross-border mergers and
acquisitions businesses in the Technology Sector;

     WHEREAS, an affiliate of a Nomura Party is making an investment in TWP pursuant to a separate
Subscription Agreement and will make investments in TWP investment funds as contemplated by the
Subscription Agreement; and

     NOW, THEREFORE, in consideration of the premises and other covenants and conditions contained
herein, the parties hereto agree as follows:

1. Definitions

     As used in this Agreement, the following terms shall have the following meanings:

“Affiliate” means any Person that controls, is controlled by, or is under
common control with a party to this Agreement.

“Asia” means Japan, Republic of Korea, People’s Republic of China,
including Hong Kong and Taiwan, Singapore, Socialist Republic of Vietnam,
Kingdom of Thailand, Indonesia, Malaysia, Philippines, Australia, New
Zealand and Republic of India.

“Business Day” shall mean a day other than a Saturday, Sunday, legal
holiday in Japan or any other day on which banks are required or
authorized by the appropriate regulatory authorities to close in New York
City or San Francisco.

 

 

“Joint Engagement Agreement” means an agreement between the Nomura Parties
(or one of them) and TWP setting forth the terms pursuant to which they
will provide Services to a particular client with respect to a particular
matter.

“M&A Fees” means any fees or other compensation which the parties have
agreed to share and which is owed by a client in connection with the
provision of Services.

“Nomura Intellectual Property” shall mean any and all now known or
hereafter existing rights owned, assigned to or licensed by any of the
Nomura Parties or their Affiliates associated with works of authorship or
inventions throughout the world, including copyrights, patents,
trademarks, service marks, know-how, trade secrets, “look and feel” and
all other intellectual and industrial property and proprietary rights
relating to intangible property of every kind and nature throughout the
world and however designated.

“Person” means a natural individual, partnership (general, limited or
limited liability), corporation, limited liability company, trust or other
legal entity or form of business association, whether or not incorporated.

“Services” means advisory services in connection with cross-border mergers
and acquisitions between the United States of America and Asia in the
Technology Sector.

“Technology Sector” means industries and businesses concerning:

	 	1)	 	communication equipment, including broadband access/edge, communications
components, optical components, wireless equipment and software, and wireline
equipment;
	 
	 	2)	 	including branded consumer, e-commerce, hardline retail, hospitality, and
specialty retail;
	 
	 	3)	 	electronic supply chain, including components and interconnect, EMS,
power electronics, semiconductor assembly, and technology distribution;
	 
	 	4)	 	hardware/storage/semiconductors, including enterprise systems and
storage, PC hardware, rich media, semiconductor devices, and semiconductor
equipment;
	 
	 	5)	 	healthcare, including biotechnology/therapeutics, diagnostics, genomics
and proteomics, healthcare IT & services, life science drug delivery, life science
technology, medical devices, and specialty pharmaceuticals;
	 
	 	6)	 	media;
	 
	 	7)	 	power technology;
	 
	 	8)	 	software, including business analytics software, content management
applications & infrastructure, eBusiness applications, enterprise applications
software, platform and infrastructure software, and software and internet strategy;

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	 	9)	 	technology services, including business services, education/market
research, financial services, IT services, and transaction processors; and
	 
	 	10)	 	telecommunications, including telecom services — long haul/hosting,
telecom services — wireless, telecom services — wireline, and towers/DBS/cable.

“TWP Intellectual Property” shall mean any and all now known or hereafter
existing rights owned, assigned to or licensed by TWP or its Affiliates
associated with works of authorship or inventions throughout the world,
including copyrights, patents, trademarks, service marks, know-how, trade
secrets, “look and feel” and all other intellectual and industrial
property and proprietary rights relating to intangible property of every
kind and nature throughout the world and however designated.

2. Purpose

     The purpose of this Agreement is to set forth the understandings and agreements of the parties
with respect to an alliance into which they are entering to enable them to provide the Services to
clients pursuant to separate Joint Engagement Agreements. It is the intention of the parties that
the ultimate parent company of TWP and the principal company conducting the securities business in
Japan of the Nomura Parties be a party to this Agreement and that the principal affiliates of the
parties conducting cross-border M&A between the United States of America and Japan be involved in
the alliance. The collaboration provided for in this Agreement on client matters is intended to be
voluntary and on a case by case basis. Except as specifically provided in this Agreement, none of
the Nomura Parties nor TWP will be restricted from doing business on its own behalf or with any
third parties anywhere in the world.

3. General Obligations

	3.1.	 	Nomura Referrals. The Nomura Parties (or any of them) may, from time to time, on a
non-exclusive basis, request that TWP assist the Nomura Parties in providing Services to
clients of the Nomura Parties. Within five (5) Business Days following receipt of such
request, TWP shall notify the requesting Nomura Party of its decision whether to assist in
providing Services as requested. If TWP agrees to assist in the provision of Services to a
client of a Nomura Party, TWP and such Nomura Party will negotiate in good faith the terms of
a Joint Engagement Agreement. Following execution by the parties of a Joint Engagement
Agreement, the parties will together provide Services to such client in the manner and upon
the terms provided for in such Joint Engagement Agreement. Notwithstanding the foregoing, the
Nomura Parties shall be under no obligation to refer clients to TWP and TWP shall be under no
obligation to provide Services to any client of the Nomura Parties until such time as the parties have executed a
Joint Engagement Agreement.

	3.2.	 	TWP Referrals. TWP may, from time to time, on a non-exclusive basis, request that
the Nomura Parties assist TWP in providing Services to clients of TWP. Within five (5)
Business Days following receipt of TWP’s request, one of the Nomura Parties shall notify TWP
of the Nomura Parties’ decision whether to assist in providing Services as requested. If the
Nomura Parties agree to assist in the provision of Services to a client of TWP, the Nomura
Parties (or one of them) and TWP will negotiate in good faith the terms of a Joint Engagement
Agreement. Following execution by the parties of a Joint Engagement Agreement, the parties
will together provide Services to such client. Notwithstanding the foregoing, TWP shall be
under no obligation to refer clients of TWP to the Nomura Parties and the Nomura Parties shall
be under

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	 	 	no obligation to provide Services to any client of TWP until such time as the parties
have executed a Joint Engagement Agreement.

	3.3.	 	Press Release. The parties hereto shall issue a joint press release, in form and
substance satisfactory to each party, announcing the formation of the alliance hereunder (the
“Initial Press Release”). No subsequent press releases regarding this Agreement or the
Services delivered hereunder shall be issued unless approved in advance by an authorized
representative of any party to be mentioned in such press release, except as otherwise
required by law, court order or determination of any administrative agency with applicable
jurisdiction or the rules or regulations of any applicable stock exchange or national
securities market quotation system.

	3.4.	 	Promotion. Each party shall (i) use appropriate and commercially reasonable efforts
to promote the alliance under this Agreement, (ii) include in its promotional and marketing
materials information that is satisfactory to the other party, regarding the alliance provided
for under this Agreement; and (iii) upon the other party’s request, at its own cost and
expense, furnish to such other party reasonable quantities of its marketing and promotional
materials.

	3.5.	 	General Conduct. Each party shall (a) conduct the Services utilizing the highest
ethical business standards and the highest level of professional skill and competence so as to
reflect favorably on the good name, goodwill and reputation of each party, (b) make no
representations, warranties or guarantees to clients or to any third party with respect to the
Services provided by the other parties, (c) coordinate with the other parties, pursuant to a
Joint Engagement Agreement, communications with clients to which the parties have agreed to
provide Services, (d) not publish or use any advertising material concerning the other parties
or the Services provided by such other parties or co-operate in the publication or use of any
such material, without such other parties’ consent and (e) cooperate with the other parties in
a commercially reasonable manner to fulfill the purposes of this Agreement and perform its
obligations hereunder in good faith.

	3.6.	 	Compliance with Laws. Each party will comply with all applicable laws and
regulations in performing its obligations under this Agreement and in any dealings with the
other parties.

	3.7.	 	Engagements. The party who originates the engagement of a client (one of the Nomura
Parties or TWP, as the case may be) (such party, the “Engagement Party”) will be solely
responsible for negotiating and entering into an engagement letter with any of its clients to
which it offers Services under this Agreement (each, an “Engagement Letter”). The Engagement
Party will have control over the negotiation of all fee arrangements, discounts and premiums
and other terms in its Engagement Letter, and will have responsibility for any communication
with its client about the cost of the Services provided under this Agreement, subject to the
following: (a) none of the parties will be bound to perform any Services until it has
approved and executed a definitive Joint Engagement Agreement containing fee arrangements,
discounts, premiums and other terms satisfactory to it in its sole discretion and (b) each
party will receive indemnification from the client directly pursuant to its standard form
indemnification agreement, as such agreements may change from time to time. Examples of the
current forms of indemnification agreements are attached as Exhibits 1 and 2 to this
Agreement. The Engagement Party, from time to time, may change any of the terms and
conditions in any Engagement Letter with respect to any matter, provided that it shall
obtain the consent of the other party prior to changing any of the economic terms of any
Joint Engagement Agreement. No changes to an indemnification agreement may be made without
the consent of the parties thereto. The alliance provided for under this Agreement shall be
disclosed in each Engagement Letter.

- 4 -

 

	3.8.	 	Research. TWP and the Nomura Parties agree to explore in good faith ways in which
they might cooperate to use their respective research products for their mutual benefit.

4. Personnel Exchange Program

	4.1.	 	The parties shall have a personnel exchange program pursuant to which each of NCA and TWP
(“Transferring Party”) will transfer personnel (“Exchange Personnel”) to the other’s (“Host
Party”) principal offices, which are located Tokyo for NCA and San Francisco for TWP, or to
such other offices as the parties may agree. Exchange Personnel will be available to work for
the Host Party on a full time basis and will be given the opportunity to work in all areas of
the Host Party’s mergers and acquisitions advisory business on substantially the same basis as
the Host Party’s own professional employees of comparable seniority. The Host Party, at its
sole expense, will provide the Exchange Personnel with appropriate office space and support
staff at the Host Party’s principal offices.

	4.2.	 	The Transferring Party shall remain responsible for all compensation of Exchange Personnel
and for the reimbursement of any travel and living expenses of Exchange Personnel to which
they are entitled; provided that travel and other out-of-pocket expenses incurred by
Exchange Personnel in connection with the Host Party’s business shall be paid by the Host
Party.

	4.3.	 	Exchange Personnel shall be selected by the Transferring Party and shall have qualifications
reasonably appropriate to the nature and type of services to be performed. The Host Party
will be given the opportunity to meet and approve all Exchange Personnel prior to their
relocation to the offices of the Host Party, provided that the Host Party may not unreasonably
withhold its approval of any Exchange Personnel selected by the Transferring Party.

	4.4.	 	Exchange Personnel shall be required to enter into confidentiality agreements with the Host
Party designed to ensure compliance with securities laws applicable to the relevant party, the
forms of which shall be reasonably satisfactory to the Transferring Party and its counsel. In
addition, Exchange Personnel will, if required in connection with a specific client
engagement, enter into a confidentiality agreement with the client. The Transferring Party
will be responsible for any breach of a confidentiality obligation by its Exchange Personnel.

	4.5.	 	Upon the effective date of termination of this Agreement under Section 11, the provisions of
this Section 4.5 shall terminate, subject to (i) the requirement to reimburse the expenses
provided for hereby, and (ii) the ability of either party to maintain such number of the
Exchange Personnel in the offices of the other as are necessary in the reasonable judgment of
such party solely for the completion of any Services that has not been completed at the time of the effective date of
termination. Any Exchange Personnel maintained at the office of a party in accordance with
the preceding clause (ii) shall be at the sole cost and expense of the requesting party.

5. Fees, Payment, Reports and Audits

	5.1.	 	M&A Fees. M&A Fees shall be shared equally between (a) the Nomura Parties and (b)
TWP with respect to mergers and acquisitions transactions consummated between parties with
their principal headquarters in Asia on the one hand and the United States of America on the
other, except as otherwise provided in a Joint Engagement Agreement. With respect to the
provision of Services in other situations, M&A Fees shall be shared as provided for in the
Joint Engagement Agreement entered into in connection with the transaction. The Nomura
Parties may distribute their share of M&A Fees among themselves as they determine in their
sole discretion. All M&A

- 5 -

 

	 	 	Fees will be billed to the client by the Engagement Party, and such
party shall remit to the other parties in the manner provided below in Section 5.3 its share
of the M&A Fees received.

	5.2.	 	Expenses.

	 	(a)	 	Each party shall bear any costs or expenses it incurs in connection with its
marketing activities with respect to a particular client prior to execution of a Joint
Engagement Agreement, except as otherwise agreed by the parties in writing. Any
out-of-pocket costs or expenses incurred by either party in connection with the
provision of Services hereunder subsequent to execution of the Joint Engagement
Agreement with respect to such Services which are not reimbursed by the client shall be
borne by the party incurring the expense. Personnel and employee costs and overhead
expenses of each of the parties will be borne by such party.
	 
	 	(b)	 	With respect to any Services provided pursuant to a Joint Engagement Agreement
from time to time and prior to the Engagement Party’s submission of an invoice to the
client, the non-engagement party shall send to the Engagement Party an accounting of
client reimbursable expenses not previously notified to the Engagement Party, including
reasonable supporting documentation. The Engagement Party shall give the
non-engagement party reasonable notice prior to the submission of a final invoice to
the client in order to allow the non-engagement party to submit an accounting for all
remaining client reimbursable expenses incurred in connection with Services provided
pursuant to the Joint Engagement Agreement.

	5.3.	 	Payment of M&A Fees and Expenses. Promptly following receipt, the Engagement Party
shall pay to the other party the amount of M&A Fees and reimbursable expenses due to the other
party.

	5.4.	 	Record Keeping. Each party shall keep appropriate books, records and accounting
information related to and as backup for any report, statement or remittance rendered
hereunder (collectively, “Records”). Each party shall, upon the written request of the other
party, provide copies of its Records to such other party within thirty (30) days of the date
of such written request. All information made available to a party under this Section 5.4
shall be held in confidence and not disclosed to any other Person; provided,
however, that nothing herein contained shall be construed to prevent a party from
testifying in my court of competent jurisdiction with respect to the information so obtained
in any action instituted to enforce the rights of a party under this Agreement.

6. Business Development Committee

	6.1.	 	Composition of the Committee. For purposes of enhancing the business to be done by
the parties under this Agreement, the parties shall create a business development committee
(the “Committee”) which shall consist of at least six (6) representatives. The Nomura Parties
shall designate at least three (3) representatives, one of whom will be a senior executive of
Nomura, and TWP shall designate at least three (3) representatives, one of whom will be a
senior executive of TVP. Each party shall have the sole authority to replace any of its
designated members and fill any vacancies created by any of its designated members at any time
and from time to time upon written notice to the other parties.

- 6 -

 

	6.2.	 	Committee Action. The Committee shall meet on a semi-annual basis or otherwise as
necessary or appropriate to discuss the joint business being done pursuant to this Agreement.
The discussions shall include possible ways to enhance the joint business, new business and
client opportunities, marketing plans and coordination, employee staffing, and such other
matters as the parties deem appropriate or necessary. Meetings of the Committee may be held
in person (with the first meeting in Tokyo and thereafter alternating between San Francisco
and Tokyo) or by telephone or video conference at such times as the parties shall agree from
time to time.

7. Employee Non-Solicitation

     The Nomura Parties and TWP each hereby covenants that during the period beginning the date
hereof and ending on the first anniversary of the date of the termination or expiration of this
Agreement (the “Non-Solicitation Period”), neither they nor any of their Affiliates will solicit
for employment, without the written consent of a relevant Nomura Party or TWP, as the case may be,
any individual who was an employee of the other (or seconded to TWP by a Nomura Party or to a
Nomura Party by TWP) at, or at any time within one year prior to, the time of the act of
solicitation.

8. Certain Proprietary Rights

	8.1.	 	Ownership. Except for the rights expressly granted in this Agreement, the Nomura
Parties and any of their relevant Affiliates own and will retain all right, title and interest
in and to the Nomura Intellectual Property. Except for the rights expressly granted in this
Agreement, TWP and any of its relevant Affiliate own and will retain all right, title and
interest in and to the TWP Intellectual Property.

	8.2.	 	Use of TWP Trademarks. During the term of this Agreement, the Nomura Parties will
have the right to (i) inform clients of the Nomura Parties that the Nomura Parties have an
alliance agreement with, and may request the involvement of, TWP for the purposes of offering
the Services hereunder and (ii) advertise the Services under the TWP trademarks, subject to
TWP’s prior written approval with respect to any such usage. If any TWP trademarks are to be
used in conjunction with another trademark on or in relation to the Services, then the TWP
trademark will be presented equally legibly, equally prominently, and will be of equal or
greater size than the other mark, with each mark separated from the other so that each appears
to be a mark in its own right, distinct from the other mark. The Nomura Parties will not
alter, obscure or remove any TWP trademarks applied to any collateral materials by TWP. At no
time during or after the term of this Agreement will the Nomura Parties challenge or assist
others to challenge any TWP trademarks or the registration thereof or attempt to register any
trademarks, service marks or trade names confusingly similar to those of TWP. All good will
associated with the TWP trademarks will inure solely to the benefit of TWP.

	8.3.	 	Use of Nomura Trademarks. During the term of this Agreement, TWP will have the right
to (i) inform clients of TWP that TWP has an alliance agreement with, and may request the
involvement of the Nomura Parties for the purposes of offering the Services hereunder (ii) and
advertise the Services under the Nomura trademarks, subject to the prior written approval of
the relevant Nomura Party. If any Nomura trademarks are to be used in conjunction with
another trademark on or in relation to the Services, then the Nomura trademark will be
presented equally legibly, equally prominently, and will be of equal or greater size than the
other mark, with each mark separated from the other so that each appears to be a mark in its
own right, distinct from the other mark. TWP will not alter, obscure or remove any Nomura
trademarks applied to any

- 7 -

 

	 	 	collateral materials by Nomura. At no time during or after the term
of this Agreement will TWP challenge or assist others to challenge any Nomura trademarks or
the registration thereof, or attempt to register any trademarks, service marks or trade names
confusingly similar to those of the Nomura Parties. All good will associated with the Nomura
trademarks will inure solely to the benefit of the Nomura Parties.

9. Confidentiality

	9.1.	 	Each party hereby covenants that it shall, and shall cause its Affiliates and the officers,
directors, employees (including the Exchange Personnel), attorneys, accountants and other
professional advisors or agents of each party (collectively, “Agents”) and its Affiliates, to
keep secret and retain in strictest confidence any and all confidential information relating
to each party or its business, products, assets or customers that is proprietary to each party
or otherwise not available to the general public, including without limitation, the terms of
this Agreement. Further, each party and its Affiliates shall not, and shall cause its Agents
not to, disclose such confidential information to any Person other than to a party to this
Agreement, their respective Affiliates or Agents. However, the foregoing confidentiality
shall not apply to any of the following:

	 	(a)	 	information which is in the public domain at the time it was disclosed by the
disclosing party to the receiving party;
	 
	 	(b)	 	information which, after being disclosed by the disclosing party to the
receiving party, becomes part of the public domain through no fault of the receiving
party;
	 
	 	(c)	 	information which the receiving party can demonstrate was lawfully in the
receiving party’s possession at the time it was disclosed by the disclosing party to
the receiving party;
	 
	 	(d)	 	information which is disclosed to the receiving party by a third party having
the lawful right to disclose it;
	 
	 	(e)	 	information which is developed by the receiving party independently of and
without reference to any information communicated by the disclosing party to the
receiving party; or
	 
	 	(f)	 	information the disclosure of which is required by any law or regulation,
governmental agency or court, or any regulation of stock exchange or securities dealers
association (in which event such party making such disclosure or whose Affiliates or
Agents are making such disclosure shall so notify the other party hereto as promptly as
practicable (and, if possible, prior to making such disclosure) and shall seek
confidential treatment of such information).

	9.2.	 	The provisions of this Section 9 will not prohibit the parties from conducting internal
inquiries and contacting their Affiliates for the sole purpose of ascertaining whether any
conflict of interests may arise with respect to the Agreement or other transactions in which
any party or its Affiliates may be involved in accordance with its customary conflict
clearance procedures.

	9.3.	 	The confidentiality obligation under this Section 9 shall survive the effective date of
termination of this Agreement for a period of eighteen months thereafter or such longer period
as may be required by a client confidentiality agreement.

- 8 -

 

10. Representation and Warranties by TWP and The Nomura Parties

	10.1.	 	Representation and Warranties by TWP. TWP represents and warrants to the Nomura
Parties that (i) it has full power and authority, and has taken all action necessary, to
execute and deliver this Agreement and to fulfill its obligations hereunder, (ii) the making
and performance by it of this Agreement do not violate any law or regulation applicable to it,
its certificate of formation, operating agreement or other organizational documents or any
other agreement to which it is a party or by which it is bound, (iii) this Agreement has been
duly executed and delivered by it and constitutes its legal, valid and binding obligation,
enforceable against it in accordance with the respective terms hereof (except to the extent
that the enforceability thereof may be limited by bankruptcy, insolvency or other similar laws
of general applicability affecting enforcement of creditors’ rights generally, or by a court’s
discretion in relation to equitable remedies), (iv) all approvals, authorizations or other
actions by, or filings with, any governmental authority or other Person necessary for the
validity or enforceability of its obligations under this Agreement have been obtained, and (v)
the Services provided by TWP under this Agreement will not infringe, violate or misappropriate
any patents, copyrights, trademarks, trade secrets or other intellectual property of any third
party.

	10.2.	 	Representation and Warranties by Nomura Parties. Each of the Nomura Parties
represents and warrants to TWP that (i) it has full power and authority, and has taken all
action necessary, to execute and deliver this Agreement and to fulfill its obligations
hereunder, (ii) the making and performance by it of this Agreement do not violate any law or
regulation applicable to it, its certificate of incorporation, by-laws or other organizational
documents or any other agreement to which it is a party or by which it is bound, (iii) this
Agreement has been duly executed and delivered by it and constitutes its legal, valid and
binding obligations, enforceable against it in accordance with the respective terms hereof
(except to the extent that the enforceability thereof may be limited by bankruptcy, insolvency
or other similar laws of general applicability affecting enforcement of creditors’ rights
generally, or by a court’s discretion in relation to equitable remedies), (iv) all approvals,
authorizations or other actions by, or filings with, any governmental authority or other
Person necessary for the validity or enforceability of its obligations under this Agreement
have been obtained, and (v) the Services provided by the Nomura Parties under this Agreement
will not infringe, violate or misappropriate any patents, copyrights, trademarks, trade
secrets or other intellectual property of any third party.

11. Term and Termination

	11.1.	 	Term. This Agreement will commence on the Effective Date and will continue for an
initial term of two (2) years. Thereafter, the term of this Agreement will automatically
renew for additional one-year periods until terminated in accordance with this Agreement.

	11.2.	 	Termination for Convenience. The Nomura Parties on the one hand and TWP on the
other will each have the right to terminate this Agreement without cause at any time following
the second anniversary of the Effective Date upon at least six months prior written notice to
the other of TWP or the Nomura Parties, as appropriate. Any such notice will specify the
termination date.

	11.3.	 	Deemed Termination for Convenience.

	 	(a)	 	Notwithstanding Sections 11.1 and 11.2, if at any time a Nomura Party agrees to
purchase a United States investment bank or other financial institution that is a
competitor of TWP, the Nomura Parties or TWP may by written notice to the other, given
on or within two months

- 9 -

 

	 	 	 	after the date of giving of notice by a Nomura Party or receipt
of notice by TWP of the transaction pursuant to Section 11.3(c), as the case may be,
terminate this Agreement, and such termination will be treated as a termination by the
Nomura Parties under Section 11.2, except that the effective date of termination shall
be two months following the giving of such notice of deemed termination.

	 	(b)	 	Notwithstanding Sections 11.1 and 11.2, if at any time TWP or any Affiliate
thereof (i) enters into a strategic alliance or joint venture with any Japanese Person
that is a material competitor of Nomura in the mergers and acquisitions business (a
“Japanese Competitor”) or with any Affiliate thereof to provide financial services of
the type contemplated by this Agreement anywhere in the world, (ii) prior to an initial
public offering of TWP’s equity securities, issues to any company, the ultimate parent
of which is located in Japan, equity securities or options or warrants to purchase such
securities, other than securities in an investment fund managed by TWP, securities
issued in connection with an acquisition by TWP of a business other than a mergers and
acquisitions business, or securities issued with the consent of the Nomura Parties,
such consent not to be unreasonably withheld or (iii) TWP or any Affiliate thereof
enters into a strategic alliance or joint venture with any financial or other
corporation or entity to provide services of the type contemplated by the Services in
Japan, the Nomura Parties may by written notice given on or within two months after the
date of receipt of notice of the transaction pursuant to Section 11.3(c) to TWP elect
to treat such act as a termination by TWP under Section 11.2, except that the effective
date of termination shall be two months following the giving of such notice of deemed
termination.
	 
	 	(c)	 	Each party shall give the other parties prompt written notice of any event
which will give the other party or parties the right to terminate this Agreement under
Sections 11.3(a) and (b).

	11.4.	 	Effect of Termination. Following termination or expiration of this Agreement: (a)
except as otherwise provided in a Joint Engagement Agreement, the parties shall complete any
outstanding Services to be provided hereunder pursuant to any Joint Engagement Agreement
remaining in effect at the time of such termination or expiration; (b) the parties shall issue
a joint press release, in form and substance satisfactory to each party in its reasonable
judgment, announcing the termination of the alliance hereunder, (c) each party hereto shall
cease promoting the alliance and the Services provided for under this Agreement; (d) neither
party shall enter into any new Engagement Letters with respect to the Services provided for
under this Agreement; and (e) the parties shall use commercially reasonable efforts to collect
all accrued but unpaid M&A Fees and shall remit any collected M&A Fees to the other party in
accordance with the provisions of Section 5.3.

	11.5.	 	Survival of Certain Terms. The provisions of Sections 5 (Fees, Payment, Reports and
Audits), 7 (Employee Non-Solicitation), 8, (Certain Proprietary Rights), 9 (Confidentiality),
11.4 (Effect of Termination), 11.5 (Survival of Certain Terms) and 12 (Miscellaneous) shall
survive the termination or expiration of this Agreement.

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12. Miscellaneous

	12.1.	 	Insurance. Each party shall carry such customary insurance as is carried by
similarly situated companies in the industry in the relevant country in amounts and on terms
and conditions that are appropriate.

	12.2.	 	Governing Law, Jurisdiction and Venue. This Agreement will be governed in all
respects by the substantive laws of the State of New York, without giving effect to conflicts
of law principles. The parties irrevocably submit and consent to the exclusive jurisdiction
and venue of the courts of the State of New York and the Federal courts of the United Stated
located in located in the Borough of Manhattan, City of New York, and all appropriate
appellate courts therefrom, over any action, suit or proceeding arising out of or relating to
this Agreement. Each party covenants that it will not (and will cause its Affiliates to not)
commence any action, suit or proceeding arising out of or relating to this Agreement in any
other jurisdiction. Nothing in this section shall affect the rights of a party (or its
Affiliates) to enforce a judgment rendered by the courts referred to in the first sentence of
this paragraph in any other jurisdiction. Each party hereto hereby waives, and agrees not to
assert, as a defense in any such action, suit or proceeding that it is not subject to such
jurisdiction or that such action, suit or proceeding may not be brought or is not maintainable
in said courts or that this Agreement may not be enforced in or by said courts or that its
property is exempt or immune from execution, that the suit, action or proceeding is brought in
an inconvenient forum, or that the venue of the suit, action or proceeding is improper.
Service of process in any such action, suit or proceeding may be served on any party anywhere
in the world, whether within or without the State of New York by mailing a copy thereof by
registered or certified mail, postage prepaid, to such party at its address provided in the
first paragraph of this Agreement, provided that service of process may be accomplished in any
other manner permitted by applicable law.

	12.3.	 	Waivers of Jury Trial. The parties hereby irrevocably and unconditionally waive
trial by jury in any legal action or proceeding relating to this agreement.

	12.4.	 	Independent Contractors. The parties are independent contractors and nothing
contained in this Agreement will be construed to constitute the parties as partners, joint
venturers, co-owners, employees or agents of the other, or otherwise as participants in a
joint or common undertaking, or allow either party to create or assume any obligation on
behalf of the other party for any purpose whatsoever.

	12.5.	 	No Third Party Beneficiaries. Nothing express or implied in this Agreement is
intended to confer, nor shall anything herein confer, upon any person other than the parties
and the respective successors or assigns of the parties, any rights, remedies, obligations or
liabilities whatsoever.

	12.6.	 	Assignment and Binding Effect.

	 	(a)	 	TWP will not assign or transfer this Agreement or any of its rights or
obligations hereunder without the prior written consent of the Nomura Parties. The
Nomura Parties may assign or
transfer any of its rights and obligations under this Agreement to any of its
Affiliates upon prior notice to TWP so long as the principal company conducting the
securities business in Japan of the Nomura Parties and the principal affiliates of the
Nomura Parties conducting the cross-border M&A business between the United States of
America and Japan shall

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	 	 	 	remain parties to this Agreement. Any purported transfer or
assignment in violation of this section is void.

	 	(b)	 	The provisions of this Agreement will apply to and bind the successors and
permitted assigns of the parties.

	12.7.	 	Waiver. Any term or condition of this Agreement may only be waived by a written
instrument executed by the Nomura Parties or any of them on the one hand or TWP on the other
(the “Waiving Party”) waiving such term or condition. Waiver by a Waiving Party hereto of any
breach or default by any other party of any of the terms and conditions of this Agreement
shall not operate as a waiver of any other breach or default whether similar to or different
from such waived breach or default. No omission or failure to exercise and no delay in
exercising any right, remedy or power hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise of any right, remedy or power hereunder preclude any other or
further exercise thereof or the exercise of any other right, remedy or power provided herein
or by law or in equity. The waiver by a Waiving Party of the time for performance of any act
or condition hereunder does not constitute a waiver of the act or condition itself.

	12.8.	 	Notice. All notices required or permitted under this Agreement must be in writing
and must be delivered in person or by means evidenced by a written delivery confirmation to
the applicable party at the address set forth below or to such other address as the applicable
party gives by providing notice in accordance with this section. Notices sent to any one of
the Nomura Parties shall be copied to the other Nomura Parties. Notices will be effective
only upon receipt.

If to: NSC

Nomura Securities Co., Ltd.

Urbanet Otemachi Bldg.,

2-2-2 Otemachi,

Chiyoda-ku, Tokyo 103 Japan

Attention: Executive Managing Director, Investment Banking Division

Facsimile: 03-3281-5895

If to: NCA

Nomura Corporate Advisors Co., Ltd.

Urbanet Otemachi Bldg.,

2-2-2 Otemachi,

Chiyoda-ku, Tokyo 103 Japan

Attention: Kenji Kimura

Facsimile: 03-3272-8993

If to: NHA

Nomura Holding America Inc.

2 World Financial Center,

Building B

New York, NY 10281-1198

Attention: David Findlay, Esq.

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Facsimile: (212) 667-304

If to: TWP

Thomas Weisel Partners Group LLC

One Montgomery Street,

San Francisco, California 94111

Attention: David Baylor, Esq.

Facsimile: (415) 364-2849

	12.9.	 	NSC and NCA Representative. Each of NSC and NCA hereby (i) irrevocably appoints NHA
as its attorney-in-fact and representative for the purpose of receiving and accepting any
notice under this agreement, including notice of service of process, and (ii) agrees for the
benefit of TWP that delivery of any such notice or service of process upon NHA as its
attorney-in-fact and representative for such purposes shall constitute delivery thereof upon
it. NHA hereby accepts such appointment and agrees to act as Nomura’s and NHA’s
attorney-in-fact and representative for the purposes described above.

	12.10.	 	Relief; Reformation; Severability. Each of the parties agrees that the covenants in
this Agreement, including those in Section 7 (Employee Non-Solicitation), 8 (Certain
Proprietary Rights) and 9 (Confidentiality), are reasonable and may be enforced by specific
performance or otherwise. Each of the parties agrees not to raise any issue of reasonableness
as a defense in any proceeding to enforce any of such covenants. If, notwithstanding the
foregoing, a covenant included in any of Section 7, 8 or 9 of this Agreement shall be deemed
by any court to be unreasonably broad or in violation of applicable law in any respect, such
court is hereby requested to modify such provision to make it reasonable and not in violation
of applicable law, as the case may be, and to enforce it accordingly. If, notwithstanding the
foregoing, in any judicial proceeding, a court shall refuse to modify or enforce any of the
covenants contained in Section 7, 8 or 9, then the unenforceable covenant shall be deemed
eliminated from the provisions of this Agreement and this Agreement shall be modified to the
extent necessary to permit the remainder hereof to be enforced. If any one or more of the
provisions of this Agreement shall be held to be invalid, illegal or unenforceable, the
validity, legality or enforceability of the remaining provisions of this Agreement shall not
be affected thereby. To the extent permitted by applicable law, each party waives any
provision of law which renders any provision of this Agreement invalid, illegal or
unenforceable in any respect.

	12.11.	 	Specific Performance. Each of the parties recognizes that any breach of the
covenants or agreements set forth in this Agreement (including, Sections 7, 8 and 9) may give
rise to irreparable harm for which money damages would not be an adequate remedy, and agrees
that in addition to any other remedy to which it may be entitled at law or in equity, the
affected party shall be entitled to enforce the terms of this Agreement (including, Sections
7, 8 and 9) by a decree of specific performance, without the necessity of proving the
inadequacy as a remedy of money damages.

	12.12.	 	Limitation of Liability. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS
AGREEMENT, NEITHER PARTY WILL UNDER ANY CIRCUMSTANCES, EXCEPT FOR A
BREACH OF SECTION 8 (CERTAIN PROPRIETARY RIGHTS) OR SECTION 9 (CONFIDENTIALITY), OR AS
REQUIRED BY APPLICABLE LAW, BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, SPECIAL,
INCIDENTAL, PUNITIVE OR

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	 	 	CONSEQUENTIAL DAMAGES, INCLUDING LOSS OF BUSINESS OR PROFITS,
ARISING UNDER OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREUNDER, EVEN
IF THE OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE PARTIES
ACKNOWLEDGE THAT THE EXCLUSIONS IN THIS SECTION ALLOCATE THE RISK BETWEEN THE PARTIES, WHICH
ALLOCATION AFFECTS THE TERMS AND CONDITIONS HEREOF AND FORMS AN ESSENTIAL ELEMENT OF THIS
AGREEMENT.

	12.13.	 	Entire Agreement and Modification. This Agreement, including its exhibits, reflects
the entire agreement of the parties regarding its subject matter, and supersedes all prior and
contemporaneous agreements, understandings and communications as between the parties, whether
written or oral with respect to that subject matter. This Agreement will not be amended,
altered or waived except by written agreement signed by all of the parties.

	12.14.	 	Agreement Controlling. To the extent that any provision in this Agreement conflicts
or is inconsistent with or is contrary to any provision in a Joint Engagement Agreement, the
provisions of this Agreement shall govern.

	12.15.	 	Interpretation. This Agreement has been negotiated by and between the parties, with
the assistance of counsel to each part, and will not be deemed to be drafted by, or the
product of, any party. As such, this Agreement will not be interpreted in favor of, or
against, either party.

	12.16.	 	Construction. The headings contained in this Agreement are for reference purposes
only and shall not affect the meaning or interpretation of this Agreement. All personal
pronouns used in this Agreement, whether used in the masculine, feminine or neuter gender,
shall include all other genders; the singular shall include the plural and vice versa. The
words “hereof,” “herein,” and “herewith” and words of similar import shall, unless otherwise
stated, be construed to refer to this Agreement as a whole. The reference to “party” or
“parties” mean the parties executing this Agreement. The word “including” shall be given an
expansive meaning and shall be deemed to include the words “without limitation”.

	12.17.	 	Counterparts. This Agreement may be executed in counterparts, each of which will
constitute an original and all of which taken together constitute one instrument.

(Signature Page Follows)

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     The duly authorized representatives of the parties have executed and delivered this Agreement
as of the Effective Date.

	 	 	 	 	 	 	 
	NOMURA SECURITIES CO., LTD.	 	NOMURA CORPORATE ADVISORS CO., LTD
	 
	 	 	 	 	 	 
	By

	 	/s/ Hiroshi Toda
	 	By
	 	/s/ Hiromi Yamaji
	 

	 	 
	 	 	 	 
	Name:

	 	Hiroshi Toda
	 	Name:
	 	Hiromi Yamaji
	Title:

	 	Executive Management Director
	 	Title:
	 	President
	 
	 	 	 	 	 	 
	NOMURA HOLDING AMERICA INC.	 	THOMAS WEISEL PARTNERS GROUP LLC
	 
	 	 	 	 	 	 
	By

	 	/s/ David Findlay
	 	By
	 	/s/ David Baylor
	 

	 	 
	 	 	 	 
	Name:

	 	David Findlay
	 	Name:	 	 
	Title:

	 	Executive Management Director
	 	Title:	 	 

- 15 -

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