Document:

Exhibit 10.3

 

Execution Copy

 

INTELLECTUAL PROPERTY LICENSE AGREEMENT

 

AMONG

 

OLD MUTUAL PLC,

 

OLD MUTUAL LIFE ASSURANCE COMPANY (SOUTH AFRICA) LTD.

 

AND

 

OM ASSET MANAGEMENT PLC

 

DATED AS OF OCTOBER 8, 2014

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
ARTICLE I
    	
DEFINITIONS
    	
1
    
	
 
    	
 
    	
 
    
	
Section 1.1
    	
Definitions
    	
1
    
	
 
    	
 
    	
 
    
	
ARTICLE II
    	
LICENSES AND OTHER RIGHTS OF PUBCO
    	
5
    
	
 
    	
 
    	
 
    
	
Section 2.1
    	
Use of Servicemarks
    	
5
    
	
Section 2.2
    	
Visual Identity; No Reasonable Likelihood of   Confusion
    	
9
    
	
Section 2.3
    	
Domain Names
    	
10
    
	
Section 2.4
    	
Pubco Marks and Rebranded Marks
    	
10
    
	
Section 2.5
    	
Social Media
    	
10
    
	
 
    	
 
    	
 
    
	
ARTICLE III
    	
OWNERSHIP OF THE SERVICEMARKS
    	
11
    
	
 
    	
 
    	
 
    
	
Section 3.1
    	
Pubco And Its Subsidiaries Not To Jeopardize   Registration
    	
11
    
	
Section 3.2
    	
No Ownership Of Servicemarks By Pubco Or Its   Subsidiaries
    	
11
    
	
Section 3.3
    	
Acknowledgement as to Servicemarks;   Cooperation
    	
11
    
	
 
    	
 
    	
 
    
	
ARTICLE IV
    	
INFRINGEMENT OF SERVICEMARKS
    	
11
    
	
 
    	
 
    	
 
    
	
Section 4.1
    	
Notification of Infringement
    	
11
    
	
Section 4.2
    	
Notification of Allegations
    	
11
    
	
Section 4.3
    	
Conduct of Proceedings by the Licensors
    	
12
    
	
Section 4.4
    	
Assistance in Proceedings
    	
12
    
	
 
    	
 
    	
 
    
	
ARTICLE V
    	
WARRANTIES; INDEMNITIES; DISCLAIMERS
    	
12
    
	
 
    	
 
    	
 
    
	
Section 5.1
    	
Representations and Warranties
    	
12
    
	
Section 5.2
    	
Indemnification
    	
13
    
	
Section 5.3
    	
Reservation of Rights
    	
13
    
	
Section 5.4
    	
No Obligation To Provide Technology
    	
13
    
	
Section 5.5
    	
Release of Information
    	
13
    
	
Section 5.6
    	
Damages Inadequate
    	
14
    
	
 
    	
 
    	
 
    
	
ARTICLE VI
    	
DISPUTE RESOLUTION
    	
14
    
	
 
    	
 
    	
 
    
	
Section 6.1
    	
Arbitration
    	
14
    
	
Section 6.2
    	
Confidentiality
    	
16
    
	
Section 6.3
    	
Conduct During Dispute Resolution
    	
16
    
	
 
    	
 
    	
 
    
	
ARTICLE VII
    	
TERM
    	
16
    
	
 
    	
 
    	
 
    
	
Section 7.1
    	
Term
    	
16
    
				

 

 

TABLE OF CONTENTS

(continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
Section 7.2
    	
Termination
    	
17
    
	
Section 7.3
    	
Survival
    	
17
    
	
 
    	
 
    	
 
    
	
ARTICLE VIII
    	
MISCELLANEOUS
    	
17
    
	
 
    	
 
    	
 
    
	
Section 8.1
    	
Notices
    	
17
    
	
Section 8.3
    	
Contracts (Rights of Third Parties) Act
    	
18
    
	
Section 8.4
    	
Subsidiary or Affiliate Action
    	
19
    
	
Section 8.5 
    	
Confidential Information
    	
19
    
	
Section 8.6 
    	
Interpretation; Effect
    	
19
    
	
Section 8.7
    	
Severability
    	
20
    
	
Section 8.8
    	
Applicable Law
    	
20
    
	
Section 8.9
    	
Amendment, Modification and Waiver
    	
20
    
	
Section 8.10
    	
Assignment
    	
20
    
	
Section 8.11
    	
Counterparts
    	
20
    
	
Section 8.12
    	
Further Assurances
    	
20
    
	
Section 8.13
    	
No Joint Venture
    	
21
    
	
Section 8.14
    	
Compliance with Law
    	
21
    
	
Section 8.15 
    	
Bribery Act
    	
21
    
				

 

ii

 

INTELLECTUAL PROPERTY LICENSE AGREEMENT

 

This INTELLECTUAL PROPERTY LICENSE AGREEMENT (this “Agreement”), dated as of October 8, 2014 (the “Effective Date”), is made and entered into by and among:

 

(1)  Old Mutual plc, a company incorporated and registered in England and Wales, with company number 3591559 (together with its successors and permitted assigns, “OM plc”), and

 

(2) solely for the purposes of the Servicemarks owned by it as described below, Old Mutual Life Assurance Company (South Africa) Ltd., a limited liability company formed under the laws of South Africa (together with its successors and permitted assigns, “OMLAC”), on the one hand, (OMLAC and OM plc each being a “Licensor” and together “Licensors”) and

 

(3) OM Asset Management plc, a company incorporated and registered in England and Wales, with company number 09062478 (together with its successors and permitted assigns, “Pubco”), on the other hand.

 

RECITALS

 

WHEREAS, an initial public offering of Pubco (“IPO”), an indirect wholly-owned Subsidiary of OM plc, will take place and Pubco will indirectly own the business of Old Mutual (US) Holdings Inc. (“OMUSH”) on or about the Effective Date hereof;

 

WHEREAS, OMLAC is an indirect, wholly-owned Subsidiary of OM plc;

 

WHEREAS, Pubco and its Subsidiaries (collectively, “Licensees”) use and desire to continue to use certain intellectual property rights of the Licensors in connection with their respective businesses and the IPO; and

 

WHEREAS, the Licensors each desire to grant a license to certain intellectual property rights under the terms and conditions as set forth in this Agreement to Licensees for use by each of them in connection with their respective businesses and the IPO.

 

NOW THEREFORE, in consideration of the premises and covenants set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each of the Parties hereby agrees as follows:

 

ARTICLE I

 

DEFINITIONS

 

Section 1.1                             Definitions.  As used herein, including for purposes of the Preamble and the Recitals hereof, the following terms have the respective meanings set forth below:

 

(a)                                 “Affiliates” with respect to any Person, means any other Person directly or indirectly controlling, controlled by or under common control with, such Person. For purposes of this definition, “control,” (including, with correlative meanings, the terms “controlled by” and

 

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“under common control with”) when used with respect to any Person, means the possession directly or indirectly of the power to direct or cause the direction of the management or policies of such Person, whether through ownership of voting securities or partnership or other ownership interests, by contract or otherwise.

 

“Agreement” has the meaning set forth in the Preamble hereto.

 

“Applicable Law” means any domestic or foreign statute, law (including the common law), ordinance, rule, regulation, published regulatory policy or guideline, order, judgment, injunction, decree, award or writ of any court, tribunal or other regulatory authority, arbitrator, governmental authority, or other Person having jurisdiction, or any consent, exemption, approval or license of any governmental authority that applies in whole or in part to a Party and, with respect to Pubco, includes the rules of any exchange or quotation system on which the securities of Pubco are listed or traded from time to time.

 

“Business” means the business conducted by the Licensees of providing, either directly or through one or more Affiliates, any investment advisory, investment and Fund administration, and other related services, including, without limiting the generality of the foregoing, (i) the management of an investment account or Fund (or portions thereof or a group of investment accounts or Funds); (ii) the giving of advice with respect to the investment and/or reinvestment of assets or Funds (or any group of subadvisory assets or Funds); (iii) otherwise acting as an “investment adviser” within the meaning of the U.S. Investment Advisers Act of 1940; (iv) rendering investment advice for a fee or other compensation, directly or indirectly, within the meaning of Section 3(21)(A)(ii) of the U.S. Employee Retirement Income Security Act of 1974; or (v) acting as a trustee, general partner, manager, or managing member of any Person that is affiliated with the provider of the services described in items (i) through (iv).

 

“Business Day” means any day except (i) a Saturday, (ii) a Sunday, (iii) any day on which the principal office of Pubco or OM plc is not open for business, and (iv) any other day on which commercial banks in the United Kingdom or New York, USA are authorized or obligated by law or executive order to close.

 

“Closing” means the closing of the initial public offering of Pubco.

 

“Closing Date” means the date of the Closing.

 

“Effective Date” has the meaning set forth in the Preamble to this Agreement.

 

“Entering Party” has the meaning set forth in Section 2.2(a).

 

“Existing Party” has the meaning set forth in Section 2.2(a).

 

“Fund” means any investment company, mutual fund, business development company, partnership, fund, closed-end fund, unit investment trust, offshore fund, common or collective fund or collective trust, hedge fund or other pooled investment vehicle, whether or not registered under the Investment Company Act of 1940 or Securities Act of 1933 (or similar provisions of applicable law of any jurisdiction other than the United States).

 

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“Governmental Authority” means any domestic, foreign or supranational court, tribunal, arbitral or administrative agency or commission or other governmental authority or instrumentality, or any industry self-regulatory authority.

 

“LCIA Court” has the meaning set forth in Section 6.1.

 

“Licensees” has the meaning set forth in the Recitals to this Agreement.

 

“Licensor” has the meaning set forth in the Preamble to this Agreement and “Licensors” means both of the Licensors together.

 

“Losses” means all losses, claims, damages, liabilities, obligations (including settlements, judgments, fines and penalties), costs and expenses (including reasonable attorneys’ fees, court costs and other litigation expenses) but excluding any loss of goodwill, loss of business, loss of revenue, loss of profits, diminution in value, lost opportunity costs, and any other indirect, incidental, special, expectation, consequential, exemplary or punitive damages (other than such damages actually paid to third parties in connection with any action or other claim or demand brought by an unaffiliated third party).

 

“Notice” has the meaning set forth in Section 8.1.

 

“Old Mutual Domain Names” means the Perpetual Old Mutual Domain Name and the Transitional Old Mutual Domain Names.

 

“OM Logo” has the meaning set forth in the definition of “Transitional Servicemarks.”

 

“OM plc” has the meaning set forth in the Preamble to this Agreement.

 

“OMLAC” has the meaning set forth in the Preamble to this Agreement.

 

“OMUSH” has the meaning set forth in the Recitals to this Agreement.

 

“Party” means OM plc, OMLAC and Pubco individually; and “Parties” means OM plc, OMLAC and Pubco, collectively.

 

“Perpetual License” has the meaning set forth in Section 2.1(a)(ii).

 

“Perpetual Old Mutual Domain Name” means the domain name omam.com, as listed in Schedule 1, which is under the control of either of the Licensors and/or their Subsidiaries as of the Closing Date.

 

“Perpetual Servicemarks” means those trademarks, service marks, trade names, trade dress, logos, corporate names and other source or business identifiers and any registrations, applications, renewals and extensions of, or associated with, any of the foregoing which include the term “OMAM”, and all goodwill associated with or symbolized by any of the foregoing.

 

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“Person” means any individual, corporation, partnership, joint venture, limited liability company, association or other business entity and any trust, unincorporated organization or political subdivision thereof.

 

“Pubco” has the meaning set forth in the Preamble to this Agreement.

 

“Rebranded Marks” has the meaning set forth in Section 2.4.

 

“Re-Direct Domain” has the meaning set forth in Section 2.3(b).

 

“Relevant Requirements” has the meaning set forth in Section 8.15(a)(i).

 

“Restylized Marks” has the meaning set forth in Section 2.1(a)(ii)(B)(1).

 

“Servicemarks” means the Perpetual Servicemarks and the Transitional Servicemarks.

 

“Subsidiary” with respect to a Person, any corporation, limited liability company, partnership, association, business, trust, joint venture, business entity or other entity of any kind or nature, of which more than fifty percent (50%) of either the equity interests or the voting control is, directly or indirectly through Subsidiaries or otherwise, beneficially owned by such Person, or of which such Person or any Subsidiary serves as the general partner (in the case of a limited partnership) or the manager or managing member (in the case of a limited liability company); provided that (i) no Fund or any Subsidiary of a Fund shall be a Subsidiary for the purposes of this Agreement; (ii) Pubco and its Subsidiaries will not be deemed to be Subsidiaries of OM plc or OMLAC, and OMLAC and OM plc will not be deemed to be Affiliates or Subsidiaries of Pubco; and (iii) for purposes of this definition, unless expressly stated otherwise, each of Heitman LLC and Investment Counselors of Maryland, LLC shall be considered “Subsidiaries” of Pubco.

 

“Territory” means world-wide.  Notwithstanding anything to the contrary contained herein “Territory” includes those areas of the world where the Servicemarks are currently in use, as well as those areas where Pubco receives consent from OM plc (which consent shall not be unreasonably withheld) to use such Servicemarks in the future.

 

“Transitional License” has the meaning set forth in Section 2.1(a)(i).

 

“Transitional Old Mutual Domain Names” means the domain names listed in Schedule 1, which contain the terms “Old Mutual”, “OM” and/or “OMAM” (except such Perpetual Old Mutual Domain Name which contains the term “OMAM”) under the control of either of the Licensors and/or their Subsidiaries as of the Closing Date.

 

“Transitional Servicemarks” means those trademarks, service marks, trade names, trade dress, logos, corporate names and other source or business identifiers and any registrations, applications, renewals and extensions of, or associated with, any of the foregoing which include the terms “Old Mutual,” “OM” and/or the OM 3 anchor design logo:

 

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(the “OM Logo”), and all copyrights therein and all goodwill associated with or symbolized by any of the foregoing.

 

“Transition Period” means the period commencing on the Closing Date and ending six (6) months after the date on which OM plc ceases to directly or indirectly own more than 50% of the outstanding shares of Pubco.

 

“Visual Identity” means the visible elements of a brand of a Party and its Affiliates, including its or their respective name, logo, primary and secondary colors, form, and other visual elements that symbolize source, identity and image.

 

ARTICLE II

 

LICENSES AND OTHER RIGHTS OF PUBCO

 

Section 2.1                             Use of Servicemarks.

 

(a)                                 Grant of Licenses.

 

(i)                                     Transitional License.  Subject to the terms and conditions of this Agreement, each Licensor hereby grants to Licensees a limited, non-exclusive, fully paid-up, royalty-free, non-transferable, non-sublicensable license, solely in the Territory and during the Transition Period, to use such Transitional Servicemarks as are owned by each such Licensor in the Licensees’ corporate and trade names, businesses and activities, including any advertising or promotional materials, and including in connection with the operation of the Business and in connection with the IPO, provided, however, that the license granted hereunder specifically excludes the right for Licensees to use the Transitional Servicemarks as the name of a Fund or in connection with any products or services provided by a Fund (the “Transitional License”).  For the avoidance of doubt, in the event the Licensees desire to use the Transitional Servicemarks as the name of a Fund, or for any products or services provided by a Fund sponsored, operated or managed by the Licensees, Licensees must obtain OM plc’s prior written approval for any such use in the jurisdictions in which OM plc owns the Transitional Servicemarks, and OMLAC’s prior written approval for any such use in the jurisdictions in which OMLAC owns the Transitional Servicemarks, and (in each case), where such approval is given, use of the Transitional Servicemarks in relation to the name of a Fund, or for any products or services provided by a Fund sponsored, operated or managed by the Licensees, shall be subject to the terms and conditions of this Agreement as if the exclusion referred to under this Section 2.1(a)(i) does not apply thereto.  Notwithstanding anything to the contrary in this Section 2.1(a) or Section 2.4 below, Licensees shall have the perpetual right to

 

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use the name “OM Asset Management” as all or part of Licensees’ corporate names or trade names.

 

(ii)                                  Perpetual License.

 

(A)                               License Grant.  Subject to the terms and conditions of this Agreement, each Licensor hereby grants to Licensees a perpetual (unless terminated pursuant to Section 7.2 below), non-exclusive, fully paid-up, royalty-free, non-transferable, non-sublicensable license, solely in the Territory, to use such Perpetual Servicemarks as are owned by each such Licensor in the Licensees’ corporate and trade names, businesses and activities, including any advertising or promotional materials, (1) in connection with the operation of the Business, (2) in connection with the IPO and (3) as a ticker symbol on the New York Stock Exchange (the “Perpetual License”).   For the avoidance of doubt, in the event the Licensees desire to use the Perpetual Servicemarks as the name of a Fund, or for any products or services provided by a Fund sponsored, operated or managed by the Licensees, Licensees must obtain OM plc’s prior written approval for any such use in the jurisdictions in which OM plc owns the Perpetual Servicemarks, and OMLAC’s prior written approval for any such use in the jurisdictions in which OMLAC owns the Perpetual Servicemarks, and (in each case), where such approval is given, use of the Perpetual Servicemarks in relation to the name of a Fund, or for any products or services provided by a Fund sponsored, operated or managed by the Licensees shall be subject to the terms and conditions of this Agreement.

 

(B)                               Coexistence.  Prior to the end of the Transition Period, Pubco shall revise the stylization of the Perpetual Servicemarks licensed hereunder such that they are visually distinct from the stylization, design and logos of Licensors’ registered servicemarks (the “Restylized Marks”).  All Restylized Marks must be approved in writing by Licensors prior to the adoption or use by Licensees, provided, however, that such approval by Licensors of the Restylized Marks shall not be unreasonably withheld or delayed. Licensees’ failure to comply with this Section 2.1(ii)(B)(1) shall not be deemed a material breach of this Agreement if such failure to comply is a result of Licensors’ failure to timely approve the Restylized Marks submitted by Pubco to Licensors for approval.  Upon approval of the Restylized Marks by Licensors, Licensees’ obligations under Sections 2.1(b)(i) and 2.1(b)(ii) shall terminate.

 

(b)                                 Certain Obligations of Licensees. Notwithstanding anything to the contrary in this Section 2.1, and without limiting its obligations under Section 8.4 hereof, Pubco will, and will procure that all other Licensees:

 

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(i)                                     use the Servicemarks only in accordance with the respective Licensor’s branding guidelines in effect as of the Effective Date of this Agreement (as such branding guidelines may be amended by the Licensors from time to time thereafter) and consistent with Licensee’s use prior to the Closing Date, provided that such obligation shall not apply in respect of the Perpetual Servicemarks with effect from the end of the Transition Period although, for the avoidance of doubt, Section 2.1(a)(ii)(B) shall apply;

 

(ii)                                  ensure that the Servicemarks, as they are displayed, are not altered in any way, except as expressly provided herein;

 

(iii)                               ensure that they will not take any action that could reasonably be expected to impair the value of or goodwill associated with the Servicemarks.  During the Transition Period,  each of OM plc and OMLAC has the right to inspect Licensees’ business operations (in accordance with the provisions of Section 2(d) below) to ensure compliance with the relevant Licensor’s standards of quality;

 

(iv)                              cease all use of the Transitional Servicemarks upon expiration of the Transition Period, provided that, following the end of the Transition Period, Licensees will be permitted to make historical reference to their affiliation with the Licensors, solely to the extent required under Applicable Law to describe the historical performance of Licensees’ Business or to identify that Licensees were formerly operating under the name of the relevant Transitional Servicemarks or unless as otherwise provided herein, provided, further that (A) any such use of “Old Mutual” must be strictly as a reference to such former affiliation, or former corporate or trade name, and not as a trademark or service mark; and (B) Licensees shall be permitted to continue use of “OM Asset Management” as all or part of Licensees’ corporate names or trade names.

 

(v)                                 upon written request by Licensors, destroy any physical materials displaying the Transitional Servicemarks remaining in Licensees’ possession promptly following expiration of the Transition Period, and an authorized officer of Pubco shall certify to OM plc in writing that to the knowledge of the certifying officer, after reasonable inquiry, such destruction has taken place;

 

(vi)                              make clear to all third parties that Pubco or its Subsidiaries, rather than either of the Licensors or any of its other Subsidiaries, is the party entering into or conducting any contractual relationship with such third party;

 

(vii)                           pay to each Licensor a sum of £2.50 (the receipt and adequacy of which is hereby acknowledged by each Licensor) as consideration for the rights granted to the Licensees under this Agreement; and

 

(viii)                        assist the Licensors in recording or registering this Agreement in any jurisdiction where such recordation or registration is required or recommended under the trademark law of such jurisdiction.

 

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(c)                                  Certain Obligations of the Licensors. Notwithstanding anything to the contrary in this Section 2.1, each of the Licensors agrees to cooperate with Licensees, at Licensors’ expense, to take commercially reasonable steps to seek to eliminate or minimize any actual consumer confusion arising from the Licensors’ activity during the Transition Period.

 

(d)                                 Inspection. In relation to each Licensee using the Transitional Servicemarks, during the Transition Period and the Perpetual Servicemarks in perpetuity, each Licensor shall have the right during a Licensee’s normal business hours, upon reasonable notice to Pubco and its applicable Subsidiaries and in a manner not unreasonably disruptive to Pubco’s and its Subsidiaries’ properties or business operations, to inspect for compliance with Section 2.1 through Section 2.5, any and all uses of the Servicemarks by Pubco and its Subsidiaries, including inspection of any and all materials on which the Servicemarks are displayed in the possession or control of Pubco and its Subsidiaries. Any noncompliance with Section 2.1 through Section 2.5 shall be corrected by Pubco and/or its respective Subsidiary as soon as reasonably practical, but no later than twenty (20) Business Days following receipt by Pubco of written notice from one of the Licensors.

 

(e)                                  Disclaimer. As soon as reasonably practical, but no later than thirty (30) days following the Effective Date, Pubco and its Subsidiaries shall post on their respective website landing pages, and any other page that consistently receives deep link or landing traffic on which the Servicemarks are displayed, the following statement: “OM Asset Management plc is a publicly traded corporation, and it and its subsidiaries are currently using trademarks including the “OLD MUTUAL” name, OM, OMAM, OM ASSET MANAGEMENT, OM 3 Anchor Design Logo and associated trademarks of Old Mutual plc and Old Mutual Life Assurance Company (South Africa) Ltd. under license.”  As soon as reasonably practical, but no later than thirty (30) days following the termination of the Transitional License, Pubco and its Subsidiaries shall revise the foregoing statement on their respective website landing pages, and any other page that consistently receives deep link or landing traffic on which the “OM Asset Management” corporate names or trade names or the Perpetual Servicemarks are displayed, and post (i) the following statement: “OM Asset Management plc, a publicly traded corporation, was previously associated with the Old Mutual Group but is no longer associated with or affiliated to the Old Mutual Group”; and (ii) a statement advising visitors to the website that information on Old Mutual products in the United Kingdom and South Africa (and any other country where the Licensors have ownership of, or other rights to use, a domain name including the word “omam”)  can be found at the Old Mutual websites in those countries, which statement shall provide a link to one or more of such Old Mutual websites in the United Kingdom, South Africa or any other relevant country. In order for Pubco and its Subsidiaries to comply with the obligation set forth in this Section 2.1(e)(ii), Licensors shall, prior to the end of the Transition Period, provide to Pubco a list of countries in which Licensors have ownership of, or other rights to use, a domain name including the word “omam” and hyperlinks to such Old Mutual websites in the United Kingdom and South Africa and any other relevant countries.  For the avoidance of doubt, Licensees shall not be deemed to be in breach of this Section 2.1(e)(ii) if Licensees’ failure to include a particular country where Licensors’ have ownership of, or other rights to use, a domain name including the word “omam” or a hyperlink to the relevant Old Mutual websites in such countries is due to Licensors’ failure to provide Licensees with the list of relevant countries and/or hyperlinks.

 

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(f)                                   Change of Name.

 

(i)                                     Timely during the Transition Period, Pubco and its Subsidiaries shall file (at their own cost and expense) before the relevant Governmental Authority throughout the Territory the necessary documents so as to amend or terminate any registration or certificate of assumed name, fictitious name or d/b/a filings containing the name “Old Mutual” so as to cause such assumed name, fictitious name or d/b/a filings to be changed to eliminate the name “Old Mutual” therefrom.  For the avoidance of doubt, Pubco and its Subsidiaries shall not be required to amend or terminate any registration or certificate of assumed name, fictitious name or d/b/a filings containing the names “OMAM” or “OM Asset Management”.

 

(ii)                                  Pubco and its Subsidiaries agree, that after the Closing Date neither Pubco nor any of its Subsidiaries will expressly, or willingly by implication, do business as or represent themselves as either of the Licensors or any of a Licensor’s other Affiliates, and the personnel of Pubco or its Subsidiaries shall not, and shall have no authority to, as of the Closing Date, hold themselves out as officers, employees or agents of either of the Licensors.

 

(iii)                               Pubco shall not and shall cause its Subsidiaries not to purport to, or represent that it or they may, bind or do business as either of the Licensors or any of their Affiliates.

 

Section 2.2                             Visual Identity; No Reasonable Likelihood of Confusion.

 

(a)                                 If any Party or any of its Subsidiaries either conducts new activities or enters into a market or jurisdiction (the “Entering Party”) where another Party or any of its Subsidiaries is already commercially active (the “Existing Party”), the Entering Party agrees (i) to evaluate the likelihood of customer confusion or brand dilution posed by such proposed Servicemarks on the Existing Party’s Visual Identity in such market or jurisdiction and (ii) to take all necessary steps to distinguish itself and its branding from the Existing Party and to ensure that its branding is not confusingly similar with branding of the Existing Party in the sole reasonable discretion of the Existing Party.

 

(b)                                 Each Party acknowledges and agrees that the existing activities of the businesses of Pubco or its Subsidiaries and the Licensors or their Subsidiaries do not create any consumer confusion and each Party and its respective Subsidiaries can continue to operate their respective businesses as such businesses were operated prior to Closing, provided that, each Party and its respective Subsidiaries implements appropriate source or business identifiers and/or disclaimers on its products, advertisements or other materials to make clear to a third party which Party or Subsidiary is providing a particular product or service.  For the avoidance of doubt, each Party and its respective Subsidiaries shall have five (5) Business Days after Closing to implement all such changes on electronic products, advertisements and other materials, and shall have sixty (60) days after Closing to implement all such changes on printed products, advertisements and other materials.

 

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(c)                                  Notwithstanding the above, (i) nothing in this Section 2.2 shall limit the right of each Licensor or its Subsidiaries to use such Licensor’s Servicemarks, or other elements of its worldwide corporate Visual Identity, in any jurisdiction, at any time and (ii) this Section 2.2 shall not apply to new Funds launched by any Licensor or its Subsidiaries except in such cases where such Licensors have previously consented to the use by Pubco, its Subsidiaries or Affiliates in connection with a Fund.

 

Section 2.3                             Domain Names.

 

(a)                                 Subject to the obligations of Section 2.1, during the Transition Period, Licensees shall have continued rights to use the Old Mutual Domain Names and to manage and direct the use of and content on the websites associated with the Old Mutual Domain Names.

 

(b)                                 Prior to the expiration of the Transition Period, Pubco (on behalf of itself and each of the other Licensees) shall register a domain name that does not feature the terms “Old Mutual” (the “Re-Direct Domain”) and shall establish and register a website at the Re-Direct Domain.

 

(c)                                  Upon expiration of the Transition Period, Licensees agree to cease use of the Transitional Old Mutual Domain Names and promptly transfer the Transitional Old Mutual Domain Name registrations to OM plc, provided that, for a period of six (6) months following the expiration of the Transition Period, OM plc shall maintain the Transitional Old Mutual Domain Names and automatically re-direct all attempts by users to access the websites featured at the Transitional Old Mutual Domain Names to the relevant Licensee’s Re-Direct Domain.

 

(d)                                 For the avoidance of doubt, subject to the terms and conditions of this Agreement, Licensees shall have the continued right to use the Perpetual Old Mutual Domain Name, and to manage and direct the use of and content on the website associated with the Perpetual Old Mutual Domain Name, including, without limitation, the email address extension, @omam.com, associated with the Perpetual Old Mutual Domain Name, in perpetuity (unless this Agreement is otherwise terminated pursuant to Section 7.2 below).

 

Section 2.4                             Pubco Marks and Rebranded Marks.  The Licensees shall have the right to register new trademarks and service marks in the Territory that replace the Transitional Servicemarks with Licensees’ marks (the “Rebranded Marks”), provided that such Rebranded Marks (a) do not contain the terms set forth in Schedule 2.4 hereto, and (b) are not the same as, or confusingly similar to, any common-law, pending or registered trademark, servicemark, trade name or logo of either Licensor, or any Subsidiary or Affiliate of either Licensor.  Pubco shall bear all fees and costs associated with the Rebranded Marks.

 

Section 2.5                             Social Media. The Parties will work in good faith and cooperate with each other and the social media vendors to replace the social media fan sites using any Transitional Servicemarks with Rebranded Marks while using commercially reasonable efforts to seek to retain, to the extent reasonably practicable without any Party compromising its respective brand or Visual Identity, the applicable fans and historical content.

 

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ARTICLE III

 

OWNERSHIP OF THE SERVICEMARKS

 

Section 3.1                             Pubco And Its Subsidiaries Not To Jeopardize Registration. Pubco and its Subsidiaries undertake not to do or permit to be done any act which would or might jeopardize or invalidate any registration of the Servicemarks, nor do any act which might assist or give rise to an application to remove the Servicemarks from any register of trademarks, or which might prejudice the right or title of either of the Licensors to the Servicemarks.

 

Section 3.2                             No Ownership Of Servicemarks By Pubco Or Its Subsidiaries. As between the Licensors and Pubco, each of OM plc and OMLAC shall own all rights in their respective Servicemarks.  Pubco and its Subsidiaries will not make any representation or do any act which may be taken to indicate that they have any right, title or interest in or to the ownership or use of the Servicemarks except under the terms of this Agreement, and Pubco acknowledges that nothing contained in this Agreement shall give Pubco and its Subsidiaries any right, title or interest in or to the Servicemarks except as granted by this Agreement.

 

Section 3.3                             Acknowledgement as to Servicemarks; Cooperation. Pubco and its Subsidiaries agree that they will not dispute the validity of the Servicemarks or the ownership rights of the respective Licensors thereto. The Licensors and their Subsidiaries agree that they will not dispute the validity of the Rebranded Marks or the ownership rights of Pubco or its Subsidiaries thereto, provided that such Rebranded Marks comply with Section 2.4 of this Agreement.  Pubco and its Subsidiaries shall not register or apply for the registration of any of the Servicemarks or any trademarks or service marks which are confusingly similar to the Servicemarks. Pubco and its Subsidiaries shall, at a Licensor’s request and expense, cooperate with such Licensor in the defense of such Licensor’s rights in the Servicemarks and in connection with the registration and maintenance of the Servicemarks and the prosecution for registration of any application which contains the Servicemarks and/or the words set forth in Schedule 2.4 hereto.  As between Licensees and Licensors, the Licensors shall bear all costs associated with the registration and maintenance of the Servicemarks.

 

ARTICLE IV

 

INFRINGEMENT OF SERVICEMARKS

 

Section 4.1                             Notification of Infringement.  Licensees shall, as soon as they become aware thereof, notify the Licensors in writing (giving full particulars thereof) of any use or proposed use by any unrelated Person of a trade name, trade mark, domain name or mode of promotion or advertising that amounts or might amount either to infringement of the Licensors’ rights in relation to the Servicemarks or to the passing-off of, misappropriation of or any other misleading or deceptive conduct in trade or commerce in relation to the Servicemarks, or any other torts involving the Servicemarks.

 

Section 4.2                             Notification of Allegations.  If Licensees become aware that any Person alleges that the Servicemarks are invalid or that use of the Servicemarks infringes any rights of another party or that the Servicemarks are otherwise attacked or attackable, Licensees shall immediately

 

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notify the Licensors in writing thereof and shall make no comment or admission to any third party in respect thereof.

 

Section 4.3                             Conduct of Proceedings by the Licensors. The Licensors shall have the sole and exclusive right to decide what action if any to take in respect of any unrelated third party infringement or alleged infringement of the Servicemarks or passing-off or any other claim or counterclaim brought or threatened in respect of the use or registration of the Servicemarks, and shall control all proceedings related thereto.  The Licensors shall bear all fees and costs associated with any such action or proceeding, and shall retain all recovery costs associated therewith.  The provisions of section 30 of the Trade Marks Act 1994 (or equivalent legislation in any jurisdiction) are expressly excluded.

 

Section 4.4                             Assistance in Proceedings. Licensees will, at the request of the Licensors, give reasonable cooperation to the Licensors in any action, claim or proceedings brought or threatened against any third party in respect of the matters set forth in this Article IV.

 

ARTICLE V

 

WARRANTIES; INDEMNITIES; DISCLAIMERS

 

Section 5.1                             Representations and Warranties. Each of the Parties represents and warrants to the others that it has the requisite power and authority to enter into and perform its obligations under this Agreement. Each of the Parties represents and warrants to the others that no consent, approval, authorization or other order of, or registration or filing with, any Governmental Authority, is required for such Party’s execution, delivery and performance of this Agreement or consummation of the transactions contemplated hereby, except as have been set forth in this Agreement or have been obtained or made by any Party and are in full force and effect under all Applicable Laws.

 

(a)                                 THE REPRESENTATIONS AND WARRANTIES IN SECTION 5.1 ARE THE ONLY REPRESENTATIONS AND WARRANTIES GIVEN BY THE PARTIES IN CONNECTION WITH THIS AGREEMENT AND THE SUBJECT MATTER HEREOF, AND ALL INTELLECTUAL PROPERTY LICENSED UNDER THIS AGREEMENT IS PROVIDED “AS IS” AND IS LICENSED, ASSIGNED OR OTHERWISE CONVEYED WITHOUT ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND WHATSOEVER IN THIS AGREEMENT, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE OR NON-INFRINGEMENT, AND EACH PARTY HEREBY DISCLAIMS ALL EXPRESS AND IMPLIED REPRESENTATIONS AND WARRANTIES EXCEPT AS OTHERWISE EXPRESSLY PROVIDED HEREIN.

 

(b)                                 NO PARTY OR ANY OF ITS AFFILIATES OR SUBSIDIARIES MAKES ANY WARRANTY OR REPRESENTATION UNDER THIS AGREEMENT THAT ANY EXPLOITATION OF ANY PRODUCT OR SERVICE WILL BE FREE FROM INFRINGEMENT OF ANY INTELLECTUAL PROPERTY RIGHT OF ANY THIRD PARTY.

 

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Section 5.2                             Indemnification.

 

(a)                                 Licensees agree to defend, indemnify and keep indemnified and hold OM plc and OMLAC, as applicable, and all of their Affiliates and their respective directors, officers, employees, shareholders, agents, attorneys, representatives, successors and assigns (the “OM Indemnitees”), harmless from and against any and all Losses (without limitation or cap of any kind) suffered or incurred by the OM Indemnitees in connection with (i) any action or claim by any third party against the OM Indemnitees relating to or arising out of or in connection with any breach of this Agreement by Licensees and/or their Affiliates; (ii) any action or claim by any third party against the OM Indemnitees on the basis that Licensees and/or their Affiliates have acted on behalf of OM plc or OMLAC, or any of their Affiliates, or have the authority to bind OM plc or OMLAC, or any of their Affiliates; or (iii) any action or claim by a third party against the OM Indemnitees relating to the use by Licensee or its Subsidiaries of the Servicemarks (other than any actions set forth in Section 5.2(b)(ii) below).

 

(b)                                 Each Licensor, jointly and severally, agrees to defend, indemnify and keep indemnified and hold Licensees and all of their Affiliates and their respective directors, officers, employees, shareholders, agents, attorneys, representatives, successors and assigns (the “Pubco Indemnitees”), harmless from and against any and all Losses (without limitation or cap of any kind) suffered or incurred by the Pubco Indemnitees in connection with (i) any action or claim by any third party against the Pubco Indemnitees relating to or arising out of or in connection with any breach of this Agreement by such Licensor and/or such Licensor’s Affiliates; (ii) any action or claim by any third party against the Pubco Indemnitees on the basis that the Servicemarks used by the Licensees and/or their Affiliates infringe upon the rights of such third parties, provided that the Pubco Indemnitees are using the Servicemarks in accordance with this Agreement; or (iii) any action or claim by a third party against the Pubco Indemnitees relating to the use by such Licensor or its Subsidiaries of the Servicemarks (other than any actions set forth in Section 5.2(a)(ii) above).

 

Section 5.3                             Reservation of Rights. Except for those rights expressly licensed pursuant to this Agreement, no rights or licenses in or to any intellectual property right owned or licensed by any Party or any of such Party’s Affiliates or Subsidiaries are assigned, granted or otherwise conveyed to any other Party, and nothing contained herein shall be construed as conferring to such other Party or its Affiliates or Subsidiaries by implication, estoppel or otherwise any right, title or interest of any other Party or its Affiliates or Subsidiaries in or to any such intellectual property right.

 

Section 5.4                             No Obligation To Provide Technology. Except as otherwise expressly set forth in this Agreement, no Party, or any of its Affiliates or Subsidiaries, is obligated by this Agreement to provide any other Party with any technical assistance or to furnish any other Party with, or obtain, any documents, materials, instructions, corrections, updates or other information or technology.

 

Section 5.5                             Release of Information. Licensees must inform the Licensors, in a timely and adequate manner, of any public information that they, their Affiliates or Subsidiaries wish to publish that would be reasonably likely to have an adverse effect on the goodwill associated

 

13

 

with the Servicemarks or the reputation or public image of the Licensors, so that the Licensors may, should the Licensors consider it necessary, issue a press release concerning the publication of such public information.  If possible, the Licensors should be informed at least one (1) week in advance of the disclosure of any development or information that would be reasonably likely to have an adverse effect on the goodwill associated with the Servicemarks or the reputation or public image of the Licensors. In case of a development or any information that may require immediate disclosure, Licensees shall promptly inform the Licensors, and where legally permissible, before any such disclosure is made.

 

Section 5.6                             Damages Inadequate. Without prejudice to any other rights or remedies that each Party may have, each Party acknowledges and agrees that damages alone would not be an adequate remedy for any breach of the terms of this Agreement by any other Party. Accordingly, each Party shall be entitled to the remedies of injunction, specific performance or other equitable relief for any threatened or actual breach of the terms of this Agreement by any other Party.

 

ARTICLE VI

 

DISPUTE RESOLUTION

 

Section 6.1                             Arbitration

 

Any dispute arising out of or in connection with this Agreement, including any question regarding its existence, validity or termination, shall be referred to and finally resolved by arbitration under the rules of the London Court of International Arbitration (“LCIA Court”) which are deemed to be incorporated by reference into this clause, save as modified herein:

 

(i)                                     The seat of arbitration shall be London, England.

 

(ii)                                  There shall be three arbitrators, one nominated by the claimant and one nominated by the respondent within fifteen (15) days of respondent’s receipt of the claimant’s request for arbitration. If OMLAC and OM plc are co-claimants or co-respondents to the arbitration, they shall be treated as one party for the purposes of the nomination of an arbitrator. If any Party has not appointed its arbitrator within the 15-day period specified herein, such appointment shall be made by the LCIA Court upon the written request of a Party within fifteen (15) days of such request. The LCIA Court shall appoint the chairman within fifteen (15) days of the nomination of the other two members of the tribunal.  The hearing shall be held no later than one-hundred-and-twenty (120) days following the appointment of the third arbitrator.

 

(iii)                               In terms of procedure, the Parties agree that:

 

(A)                               The Request shall be treated as the Claimant(s)’ Statement of Case.

 

(B)                               The Statement of Defence shall be sent to the Registrar within fifteen (15) days of receipt of notice of appointment of the third arbitrator.

 

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(C)                               A case management hearing shall take place within ten (10) days of receipt of the Statement of Defence to determine the procedure leading up to the hearing.  The Parties shall seek to agree to the procedure between them, consistent with the provisions of this Section 6.1.

 

(D)                               The Statement of Reply (if any) shall be sent to the Registrar within fifteen (15) days of receipt of the Statement of Defence.

 

(E)                                The Statement of Reply to Counterclaim (if any) shall be sent to the Registrar within fifteen (15) days of receipt of the Statement of Reply.

 

(F)                                 The arbitral tribunal shall exercise its power to order the Parties to supply copies of any documents in their possession, custody or power that are relevant to the subject matter of the dispute taking into account the Parties’ desire that the arbitration be conducted expeditiously and cost effectively. All disclosure of documents shall be completed within sixty (60) days of the appointment of the third arbitrator.

 

(G)                               The Parties agree that they shall have the right to be heard orally on the merits of the dispute.

 

(iv)                              By agreeing to arbitration, the Parties do not intend to deprive a court of its jurisdiction to issue a pre-arbitral injunction, pre-arbitral attachment, or other order in aid of arbitration proceedings and the enforcement of any award. Without prejudice to such provisional remedies as may be available under the jurisdiction of a court, the arbitral tribunal shall have full authority to grant provisional remedies, to direct the Parties to request that any court modify or vacate any temporary or preliminary relief issued by such court, and to award damages for the failure of any Party to respect the arbitral tribunal’s orders to that effect. For the purpose of any provisional relief contemplated hereunder, the Parties hereby submit to the non-exclusive jurisdiction of the English Courts. Each Party unconditionally and irrevocably waives any objections which it may have now or in the future to the jurisdiction of the English Courts including objections by reason of lack of personal jurisdiction, improper venue, or inconvenient forum.

 

(v)                                 The award shall be in writing, shall state the findings of fact and conclusions of law on which it is based, shall be final and binding and shall be the sole and exclusive remedy among the Parties regarding any claims or counterclaims presented to the arbitral tribunal. Judgment upon any award may be entered in any court having jurisdiction.

 

(vi)                              The Parties will bear equally all fees, costs, disbursements and other expenses of the arbitration, and each Party shall be solely responsible for all fees, costs, disbursements and other expenses incurred in the preparation and

 

15

 

prosecution of its own case; provided that in the event that a Party fails to comply with the orders or decision of the arbitral tribunal, then such noncomplying Party shall be liable for all costs and expenses (including attorney fees) incurred by the other Parties in their efforts to obtain either an order to compel, or an enforcement of an award, from a court of competent jurisdiction.

 

(vii)                           The arbitral tribunal shall have no authority to award punitive, exemplary or multiple damages or any other damages not measured by the prevailing Parties’ actual damages.

 

(viii)                        All notices by one Party to another in connection with the arbitration shall be in accordance with the provisions of Section 8.1 hereof, except that all notices for a demand for arbitration made pursuant to this Article VI must be made by personal delivery or receipted overnight courier. This agreement to arbitrate shall be binding upon the successors and permitted assigns of each Party. This Agreement and the rights and obligations of the Parties shall remain in full force and effect pending the award in any arbitration proceeding hereunder.

 

Section 6.2                             Confidentiality. Except to the extent necessary to compel arbitration or in connection with arbitration of any dispute under this Agreement, or for enforcement of an arbitral award, information concerning (i) the existence of an arbitration pursuant to this Article VI, (ii) any documentary or other evidence given by a Party or a witness in the arbitration or (iii) the arbitration award may not be disclosed by the tribunal administrator, the arbitrators, any Party or its counsel to any Person not connected with the proceeding unless required by law or by a court or competent regulatory body, and then only to the extent of disclosing what is legally required. A Party filing any document arising out of or relating to any arbitration in court shall seek from the court confidential treatment for such document and provide notice thereof to the non-disclosing Party.

 

Section 6.3                             Conduct During Dispute Resolution. The Parties shall continue the performance of their respective obligations under this Agreement that are not the subject of dispute during the resolution of any dispute or disagreement, including during any period of arbitration, unless and until this Agreement is terminated or expires in accordance with its terms and conditions.

 

ARTICLE VII

 

TERM

 

Section 7.1                             Term.

 

(a)                                 Transitional License.  With respect to the Transitional Servicemarks and Transitional Old Mutual Domain Names, this Agreement shall commence on the Effective Date and the Transitional License shall terminate automatically, along with all licenses and sublicenses granted therefor hereunder, on the first day following the day that is six (6) months after the end of the Transition Period.  .

 

(b)                                 Perpetual License.  With respect to the Perpetual Servicemarks and Perpetual Old Mutual Domain Name, this Agreement shall commence on the Effective Date and shall continue

 

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in perpetuity, unless terminated pursuant to Section 7.2 below.  In the event the Perpetual License is terminated pursuant to Section 7.2 below and the Transitional License has been terminated pursuant to Section 7.1(a) above, the Agreement shall terminate concurrently therewith.

 

(c)                                  With regard to all dates and time periods set forth or referred to in this Agreement, time is of the essence.

 

Section 7.2                             Termination.  Either Licensor shall have the right to terminate this Agreement at any time if Licensees materially breach this Agreement; provided that if such material breach is capable of being cured, then such Licensor shall not be permitted to terminate this Agreement unless the Licensees fail to cure such material breach within twenty (20) Business Days after receipt of written notice of such breach from one of the Licensors.

 

Section 7.3                             Survival. Section 2.1(b)(iv), Section 2.1(b)(v), Section 2.3(b) and (c), Article III, Section 5.1, Section 5.2, Section 5.3, Article VI, Article VII and Article VIII shall survive the expiration or termination of this Agreement for any reason.

 

ARTICLE VIII

 

MISCELLANEOUS

 

Section 8.1                                   Notices.  Unless otherwise provided in this Agreement, all notices and other communications provided for hereunder shall be dated and in writing and shall be deemed to have been given (i) when delivered, if delivered personally, sent by confirmed telecopy or sent by registered or certified mail, return receipt requested, postage prepaid, provided that such delivery is completed during normal business hours of the recipient, failing which such notice shall be deemed to have been given on the next Business Day, (ii) on the next Business Day if sent by overnight courier and delivered on such Business Day within ordinary business hours and, if not, the next Business Day following delivery; and (iii) when received, if received during normal business hours and, if not, the next Business Day after receipt, if delivered by means other than those specified above. Such notices shall be delivered to the address set forth below, or to such other address as a Party shall have furnished to the other Party in accordance with this Section (each such notice, a “Notice”):

 

If to Pubco, to:

 

c/o Old Mutual (US) Holdings Inc.

200 Clarendon Street, 53rd Floor
 Boston, MA 02116

Attention: Steve Belgrad, CFO

Phone No.: 617-369-7371

Email: Sbelgrad@oldmutualus.com

 

With a copy to:

 

Bingham McCutchen LLP

399 Park Avenue

New York, NY 10022-4689

 

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Attention: Floyd Wittlin, Esq.

Phone No.: 212-705-7466

Email: Floyd.Wittlin@bingham.com

 

If to the Licensors, to:

 

Old Mutual plc

5th Floor, Millennium Bridge House
 2 Lambeth Hill
 London EC4V 4GG, United Kingdom
 Attention: Group Company Secretary

Phone No.: +44(0) 20 7002 7109

Email: martin.murray@omg.co.uk

 

with a copy to:

 

Skadden, Arps, Slate, Meagher & Flom LLP

4 Times Square

New York, New York 10036

Attention: Ralph Arditi

Phone No.: 212-735-3860

Email: ralph.arditi@skadden.com

 

Section 8.2  Entire Agreement.

 

(a)                                 This Agreement, including any Schedules attached hereto, represents the entire understanding of the Parties hereto with respect to the subject matter hereof and thereof and supersede any and all other oral or written agreements heretofore made with respect to such subject matter. Other than as expressly set forth in this Agreement, no Party has relied upon any statement or representation other than statements and representations expressed in this Agreement, and nothing in this Agreement, express or implied, is intended to confer upon any Person, other than the Parties and their respective successors and permitted assigns, any rights or remedies under or by reason of this Agreement.  For the avoidance of doubt, Pubco is liable to the Licensors for every act or omission of any other Licensee which would have breached this Agreement had it been committed or omitted by Pubco itself.

 

(b)                                 It is acknowledged and agreed that: (i) no Party has entered into this Agreement in reliance upon any representation, warranty, undertaking, collateral contract or other assurance of any other Party that is not expressly set out or referred to in this Agreement; (ii) no Party shall have any remedy in respect of misrepresentation or untrue statement made by any other Party unless and to the extent that a claim lies for breach of warranty under this Agreement; and (iii) this clause shall not exclude any liability for fraudulent misrepresentation.

 

Section 8.3    Contracts (Rights of Third Parties) Act.  Except in relation to the rights of indemnification provided to the Indemnitees pursuant to Article V of this Agreement, a Person

 

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who is not a Party to this Agreement shall not have any rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Agreement.

 

Section 8.4    Subsidiary or Affiliate Action. Pubco shall cause each of its Subsidiaries and Affiliates to comply with all of the agreements, obligations and covenants applicable to each such Subsidiary or Affiliate, as applicable, under this Agreement.  This Section 8.4 shall not apply with respect to any Affiliate of Pubco to the extent that Pubco does not have sufficient Control over such Affiliate to procure such conduct from such Affiliate; provided, that such Control shall be deemed to exist in the case of any Subsidiary that is not specifically identified in clause (iii) of the definition of Subsidiary.

 

Section 8.5  Confidential Information. Each Party shall treat all information provided to it by any other Party with the same degree of care as such Party treats its own information of the same nature, provided that this Section 8.5 shall not apply to information relating to or disclosed in the registration statement required in connection with the IPO, provided that confidential information received by a Party from any other Party shall not be utilized by such Party to engage, directly or indirectly (including through Subsidiaries) in a business in competition with the business of such other Party or any of its Subsidiaries..

 

Section 8.6  Interpretation; Effect. In this Agreement, except as context may otherwise require, (a) the words “hereby,” “hereof,” “herein,” and “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement, (b) terms defined in the singular have a comparable meaning when used in the plural, and vice versa, (c) references herein to a specific Article, Section, Subsection or Schedule shall refer, respectively, to Article, Sections, Subsections or Schedules of this Agreement, (d) references to the transactions contemplated hereby include the transactions provided for in this Agreement, (e) references to any agreement (including this Agreement), contract, statute or regulation are to the agreement, contract, statute or regulation as amended, modified, supplemented, restated or replaced from time to time (in the case of an agreement or contract, to the extent permitted by the terms thereof), and to any section of any statute or regulation include any successor to the section, (f) references to any Governmental Authority includes any successor to that Governmental Authority, (g) wherever the word “include,” “includes,” or “including” is used in this Agreement, it shall be deemed to be followed by the words “without limitation,” (h) references herein to any gender include each other gender, (i) all pronouns and variations of pronouns will be deemed to refer to the feminine, masculine or neuter, singular or plural, as the identity of the Person referred to may require, (j) headings and numbering of sections and paragraphs in this Agreement are for convenience only and will not be construed to define or limit any of the terms in this Agreement or affect the meaning or interpretation of this Agreement, (k) this Agreement is the product of negotiation by the Parties, having the assistance of counsel and other advisers, (l) the Parties intend that this Agreement not be construed more strictly with regard to one Party than with regard to any other, and (m) no provision of this Agreement is to be construed to require, directly or indirectly, any Person to take any action, or omit to take any action, to the extent such action or omission would violate Applicable Law (including statutory and common law), rule or regulation.

 

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Section 8.7   Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof. Except as otherwise provided herein, if any provisions of this Agreement or the application thereof to any Person or any circumstance is found by a court or other Governmental Authority of competent jurisdiction to be invalid or unenforceable, (a) a suitable and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision and (b) the remainder of this Agreement and the application of such provision to other Persons or circumstances shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of such provision or the application thereof, in any other jurisdiction.

 

Section 8.8   Applicable Law. This Agreement (together with any non-contractual obligations arising out of it) shall be construed and enforced in accordance with, and the rights and duties of the Parties shall be governed by, the law of England and Wales.

 

Section 8.9   Amendment, Modification and Waiver. This Agreement may be amended, modified or supplemented at any time by written agreement of the Parties. Any failure of any Party to comply with any term or provision of this Agreement may be waived by the other Parties by an instrument in writing signed by such Parties, but such waiver or failure to insist upon strict compliance with such term or provision shall not operate as a waiver of, or estoppel with respect to, any subsequent or other failure to comply. No waiver by any Party of any breach of this Agreement shall be considered as a waiver of any subsequent breach of the same provision or any other provision.

 

Section 8.10   Assignment.

 

(a)                                 Neither this Agreement nor any of the rights, interests or obligations of any Party under this Agreement may be assigned by such Party without the prior written consent of the other Parties, except that the Licensors may, without written consent of the Licensees, assign all of their rights, benefits and obligations under this Agreement to one or more of their Affiliates; provided that any such transferee assumes all of the relevant Licensor’s obligations under this Agreement in a written instrument.

 

(b)                                 This Agreement shall be binding upon and inure to the benefit of the Parties and the Licensees who are not Parties and their respective permitted successors and assigns.

 

Section 8.11   Counterparts. This Agreement may be executed in two or more counterparts that may be delivered by means of facsimile or email (or any other electronic means such as “.pdf” or “.tiff” files), each of which shall be deemed to constitute an original, but all of which together shall be deemed to constitute one and the same instrument.

 

Section 8.12   Further Assurances.  Each Party shall, on being required to do so by any other Party, perform or procure the performance of all such acts and/or execute and/or deliver or procure the execution and/or delivery of all such documents (in each case at its own expense), as may be required by law or as any other Party may from time to time reasonably require in order to implement and give full effect to this Agreement.

 

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Section 8.13   No Joint Venture.  Nothing in this Agreement is intended to or shall operate to create a partnership, agency, employment joint venture of any kind among the Parties.

 

Section 8.14   Compliance with Law.  The Licensors shall not be in breach of this Agreement and shall have no liability to the Licensees whatsoever to the extent that a Licensor acts (or omits to act) in a given manner in order to abide by any Applicable Law and/or in taking steps to mitigate any breach of this Agreement by the Licensees or any of them.

 

Section 8.15  Bribery Act.

 

(a)                                 Each Party expects that the other has an awareness of the requirements of the Bribery Act and to have appropriate processes and controls in place to prevent the offering or acceptance of bribes. Each Party shall:

 

(i)                                     comply with all Applicable Laws, regulations, codes and sanctions relating to anti-bribery and anti-corruption including the Bribery Act 2010 (“Relevant Requirements”);

 

(ii)                                  not engage in any activity, practice or conduct which would constitute an offence under sections 1, 2 or 6 of the Bribery Act 2010 if such activity, practice or conduct had been carried out in the United Kingdom;

 

(iii)                               have and shall maintain in place throughout the term of this Agreement its own policies and procedures, including but not limited to adequate procedures under the Bribery Act 2010, to ensure compliance with the Relevant Requirements, and to avoid criminal liability and/or prosecution under the Bribery Act 2010, and will enforce them where appropriate;

 

(b)                                 Promptly report to the others any request or demand for any undue financial or other advantage of any kind received by it in connection with the performance of this Agreement;

 

(c)                                  Breach of this Section 8.15 shall be a material breach of this Agreement entitling the non-defaulting Party or Parties to terminate this Agreement without incurring any liability for such termination.

 

(d)                                 For the purpose of this Section 8.15 the meaning of adequate procedures and foreign public official and whether a Person is associated with another Person shall be determined in accordance with section 7(2) of the Bribery Act 2010 (and any guidance issued under section 9 of that Act), sections 6(5) and 6(6) of that Act and section 8 of that Act respectively.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the Effective Date.

 

 

	
 
    	
OM Asset Management plc
    
	
 
    	
“Pubco”
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Stephen H. Belgrad
    
	
 
    	
 
    	
Name: Stephen H. Belgrad
    
	
 
    	
 
    	
Title: Executive Vice President and Chief   Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Old Mutual plc
    
	
 
    	
“OM plc”
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Martin C. Murray
    
	
 
    	
 
    	
Name: Martin C. Murray
    
	
 
    	
 
    	
Title: Solicitor and Group Company Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
Old Mutual Life Assurance Company (South Africa)   Ltd.
    
	
 
    	
“OMLAC”
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Mokaedi Dilotsotlhe
    
	
 
    	
 
    	
Name: Mokaedi Dilotsotlhe
    
	
 
    	
 
    	
Title: General Manager
    

 

22

 

Schedule 1

 

Perpetual Domain Name

 

	
Domain Name
    	
 
    	
Owner
    
	
Omam.com
    	
 
    	
Old Mutual (US)   Holdings Inc.
    

 

Transitional Domain Names

 

	
Domain Name
    	
 
    	
Owner
    
	
Oldmutualus.com
    	
 
    	
Old Mutual (US)   Holdings Inc.
    
	
Oldmutualglobalfunds.com
    	
 
    	
Old Mutual (US)   Holdings Inc.
    
	
Omamnet.com
    	
 
    	
Old Mutual (US)   Holdings Inc.
    
	
Omamus.com
    	
 
    	
Old Mutual (US)   Holdings Inc.
    
	
Omip.com
    	
 
    	
Old Mutual (US)   Holdings Inc.
    
	
Omamtrust.com
    	
 
    	
Old Mutual (US)   Holdings Inc.
    
	
Omamint.com
    	
 
    	
Old Mutual (US)   Holdings Inc.
    

 

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Schedule 2.4

 

OLD MUTUAL

OM Logo

OM

OMAM

OM ASSET MANAGEMENT

OMGI

SKANDIA

 

1Exhibit 10.4

 

Execution Copy

 

OCTOBER 8, 2014

 

OM GROUP (UK) LIMITED

 

OM ASSET MANAGEMENT PLC

 

DEFERRED TAX ASSET DEED

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
1.
    	
DEFINITIONS
    	
1
    
	
 
    	
 
    	
 
    
	
2.
    	
DETERMINATION OF REALISED   TAX BENEFIT
    	
8
    
	
 
    	
 
    	
 
    
	
3.
    	
INFORMATION; FINALIZATION OF   SCHEDULES
    	
9
    
	
 
    	
 
    	
 
    
	
4.
    	
PAYMENTS
    	
10
    
	
 
    	
 
    	
 
    
	
5.
    	
TERMINATION
    	
12
    
	
 
    	
 
    	
 
    
	
6.
    	
RECONCILIATION
    	
14
    
	
 
    	
 
    	
 
    
	
7.
    	
CONDUCT OF AN ENQUIRY/CLAIM
    	
15
    
	
 
    	
 
    	
 
    
	
8.
    	
LATE PAYMENTS
    	
16
    
	
 
    	
 
    	
 
    
	
9.
    	
NOTICES
    	
16
    
	
 
    	
 
    	
 
    
	
10.
    	
ASSIGNMENT; AMENDMENTS;   WAIVERS; AND SUCCESSORS
    	
17
    
	
 
    	
 
    	
 
    
	
11.
    	
ARBITRATION
    	
18
    
	
 
    	
 
    	
 
    
	
12.
    	
WITHHOLDING
    	
20
    
	
 
    	
 
    	
 
    
	
13.
    	
CONFIDENTIALITY
    	
20
    
	
 
    	
 
    	
 
    
	
14.
    	
NO JOINT VENTURE
    	
20
    
	
 
    	
 
    	
 
    
	
15.
    	
COUNTERPARTS
    	
20
    
	
 
    	
 
    	
 
    
	
16.
    	
ENTIRE DEED; NO THIRD-PARTY   BENEFICIARIES
    	
20
    
	
 
    	
 
    	
 
    
	
17.
    	
GOVERNING LAW
    	
21
    
	
 
    	
 
    	
 
    
	
18.
    	
SEVERANCE
    	
21
    
	
 
    	
 
    	
 
    
	
19.
    	
REMEDIES
    	
21
    
	
 
    	
 
    	
 
    
	
20.
    	
FURTHER ASSURANCES
    	
22
    

 

i

 

This DEFERRED TAX ASSET DEED is made on October 8, 2014

 

BETWEEN:

 

(1)                                OM GROUP (UK) LIMITED a company incorporated and registered in England and Wales with company number 3591572 whose registered office is at 5th Floor, Millennium Bridge House, 2 Lambeth Hill, London EC4V 4GG (together with its successors and permitted assigns, “OMGUK”); and

 

(2)                                OM ASSET MANAGEMENT PLC a company incorporated and registered in England and Wales with company number 09062478 whose registered office is at 5th Floor, Millennium Bridge House, 2 Lambeth Hill, London EC4V 4GG (together with its successors and permitted assigns, “OMAM”).

 

WHEREAS

 

(A)                              As at the date of this deed, OMGUK beneficially owns all of the issued share capital of OMAM. Each of OMGUK and OMAM is a party to the Shareholder Agreement.

 

(B)                              On June 30, 2014, OMAM filed the Registration Statement pursuant to which OMGUK will offer for sale to the public a certain number of its ordinary shares of OMAM.

 

(C)                              Immediately following the closing of the IPO, the OMAM Subsidiaries expect to have, and to be able to utilise, the Pre-IPO Tax Assets.

 

(D)                              Utilisation of the Pre-IPO Tax Assets is expected to reduce the OMAM Subsidiaries’ liability for Taxes in respect of Post-IPO Tax Periods.

 

(E)                               In connection with the IPO and pursuant to the Shareholder Agreement, the parties will enter into this Deed in order to make certain arrangements with respect to the effect of the Pre-IPO Tax Assets on the reported liability for Taxes of the OMAM Subsidiaries in respect of Post-IPO Tax Periods.

 

(F)                                It is intended that the provisions of this Deed will not result in duplicative payment of any amount (including interest) required under this Deed. It is also intended that the provisions of this Deed provide that an amount equal to 100% of the Realised Tax Benefits for all Subject Taxable Years on or before the Tax Benefit Termination Date shall be paid to OMGUK pursuant to this Deed.

 

IT IS AGREED as follows:

 

1.                                      DEFINITIONS

 

1.1                               As used in this Deed, the terms set forth in this clause 1 shall have the following meanings:

 

“2019 Termination Date” means 31 December 2019.

 

“Advisory Firm” means an independent law or accounting firm that is nationally recognised as being expert in Tax matters.

 

“Adjustment Amount” is defined in clause 4.4.

 

“Amended Tax Benefit Schedule” is defined in clause 2.5(d).

 

“Amended Termination Amount” is defined in clause 5.9

 

 

“Amended Termination Schedule” is defined in clause 5.8

 

“Business Day” means any day except (i) a Saturday, (ii) a Sunday, (iii) any day on which the principal office of OMGUK or OMAM is not open for business, and (iv) any other day on which commercial banks in the United Kingdom or New York, USA are authorized or obligated by law or executive order to close.

 

“Change of Control” means Old Mutual plc ceasing to beneficially own, directly or indirectly, more than 50% of the ordinary share capital of OMAM, the common stock of OMUSH or the assets of OMUSH.

 

“Change of Control Termination Date” means a Tax Benefit Termination Date within limb (b) of that definition.

 

“Code” means the United States Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder.

 

“Cumulative Actual Tax Liability” means, as of the end of any Subject Taxable Year, the cumulative liability of the relevant OMAM Subsidiary for Taxes in respect of all Post-IPO Tax Periods, subject to any adjustment as contemplated in the definition of Realised Tax Benefit.

 

“Cumulative Hypothetical Tax Liability” means, as of the end of any Subject Taxable Year, the cumulative liability of the relevant OMAM Subsidiary for Taxes in respect of all Post-IPO Tax Periods, applying the applicable Tax rates for each Tax period, and using the same methods, elections, conventions and similar practices used on the relevant Tax Return of the relevant OMAM Subsidiary for each applicable Tax Period, but assuming that there were no Pre-IPO Tax Assets.

 

“Deed” means this deferred tax asset deed.

 

“Deed Termination Date” means the first the date on which all payments due and payable hereunder have been paid and the statute of limitations with respect to all Subject Taxable Years in which Realised Tax Benefits accrued or the amount of the Pre-IPO Tax Assets was relevant, inclusive of tax years subsequent to the Tax Benefit Termination Date, has expired.

 

“Default Rate” means LIBOR plus 300 basis points.

 

“Determination” shall have the meaning ascribed to such term in clause 1313(a) of the Code or similar provision of state, local and non-United States Tax law, as applicable, or any other event (including the execution of a Form 870-AD) that finally and conclusively establishes the amount of any liability for Tax or the amount of the Pre-IPO Tax Assets.  A Determination shall include the expiration of all periods of limitations relating to the assessment of Tax for a Taxable Year.

 

“Dispute” is defined in clause 11.1.

 

“Elected Change of Control Termination Date” is defined in clause 5.4.

 

“Enquiry/Claim” means any audit, enquiry, investigation, assessment, adjustment or claim by any Taxing Authority in relation to, or which may be relevant in any material way to, the determination or calculation of the Pre-IPO Tax Assets or Realised Tax Benefits.

 

“Expert” is defined in clause 6.1.

 

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“Fund” means any pooled investment vehicle for which any Subsidiary of OMAM, directly or indirectly, provides any investment advisory or sub-advisory services, or serves as the general partner, managing member or in any similar capacity (including any master or feeder fund, parallel fund or other alternate investment vehicle or third party co-investment vehicle).

 

“Indebtedness” means as of any time, without duplication, the outstanding principal amount of, accrued and unpaid interest on, and other payment obligations (including any prepayment premiums, “breakage costs”, redemption fees, out-of-pocket costs and expenses, penalties and other obligations payable) arising under, any obligations of OMAM consisting of (i) indebtedness for borrowed money or indebtedness issued in substitution or exchange for borrowed money or extensions of credit, (ii) amounts owing as deferred purchase price for property or services (including obligations under capitalized leases (as determined in accordance with GAAP, applied on a consistent basis) but excluding any trade payables and accrued expenses arising in the ordinary course of business), (iii) indebtedness evidenced by any note, bond, debenture or other debt security, in each case, as of such time, (iv) obligations for the reimbursement of any obligor on any letter of credit to the extent such letter of credit has been drawn upon, (v) any liabilities associated with derivative or other hedging contracts (valued at the termination cost thereof), and (vi) obligations in the nature of guarantees of the obligations of other Persons of the type referred to in clauses (i) through (v) above as of such time.  Notwithstanding the foregoing, “Indebtedness” shall not include (x) any undrawn letters of credit, (y) any Indebtedness among OMAM and its Subsidiaries on the one hand, and OM plc and its Subsidiaries, on the other hand or (z) any inter-company Indebtedness between OMAM and its Subsidiaries.

 

“IPO” means the initial public offering of ordinary shares of OMAM referred to in Recital (B) of this Deed.

 

“LCIA Court” is defined in clause 11.2.

 

“LIBOR” means for each month (or portion thereof) during any period, an interest rate per annum equal to the rate per annum reported, on the date two days prior to the first day of such month, as published by Reuters (or other commercially available source providing quotations of LIBOR) for London interbank offered rates for U.S. dollar deposits for such month (or portion thereof).

 

“OMAM Subsidiaries” collectively means OMAM US and its Subsidiaries, and individually means any of OMAM US or any of the Subsidiaries of OMAM US.

 

“OMAM US” means OMAM US, Inc.

 

“OMUSH” means Old Mutual (US) Holdings Inc., a company incorporated under the laws of the State of Delaware.

 

“Payment on Account” is defined in clause 4.2.

 

“Person” means any individual, corporation, partnership, joint venture, limited liability company, association or other business entity and any trust, unincorporated organization or political subdivision thereof.

 

“Post-IPO Tax Period” shall mean a Taxable Year of the OMAM Subsidiaries beginning on the day immediately following the closing date of the IPO.  In the case of a Straddle Period, the portion of such Taxable Year beginning on the day immediately following the closing date of the IPO shall be deemed to be a Post-IPO Tax Period.

 

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“Pre-IPO Tax Assets” means, in each of cases (i) to (iii) below, with respect to the Pre-IPO Tax Periods, (i) the aggregate interest expense deductions of the OMAM Subsidiaries that have been disallowed pursuant to section 163(j) of the Code; (ii) the aggregate U.S. federal net operating losses and net operating loss carryovers of any of the OMAM Subsidiaries; (iii) the foreign tax credits of the OMAM Subsidiaries relating to Rogge Global Partners plc; and (iv) without duplication, the tax benefits of the book amortization reflected on OMAM’s financial statements for the expense related to share awards for periods ending before or on the closing date of the IPO, with such tax benefits treated as realized upon the vesting of the shares with respect to the grant that gave rise to such amortization.  The share awards and the amortization thereof to the date hereto will be set forth in a letter from OMAM to OMGUK on or about the date hereof         .

 

“Pre-IPO Tax Period” shall mean a Taxable Year of the OMAM Subsidiaries beginning before the closing date of the IPO.  In the case of a Straddle Period, the portion of such Taxable Year ending on (and including) the closing date of the IPO shall be deemed to be a Pre-IPO Tax Period.

 

“Realised Tax Benefit” means, as of the end of a Subject Taxable Year with respect to any OMAM Subsidiary, the excess (if any) of (i) the Cumulative Hypothetical Tax Liability (as of such time) over (ii) the sum of (A) the Cumulative Actual Tax Liability (as of such time) and (B) the aggregate amount of payments previously made pursuant to this Deed in respect of the Realised Tax Benefit of such OMAM Subsidiary as of such time, provided that if, as of such time, there is an unresolved claim, proposed adjustment or similar item by a Taxing Authority that, if the Taxing Authority prevailed, would decrease the Realised Tax Benefit or increase the Cumulative Actual Tax Liability, representatives of OMGUK and OMAM shall consult with each other in good faith to determine the appropriate assumptions to use with respect to calculating the Realised Tax Benefit or Cumulative Actual Tax Liability, as applicable, for the relevant affected Subject Taxable Year; provided that, to the extent reasonable and consistent with applicable law, the parties hereto intend that the Realised Tax Benefit and/or Cumulative Actual Tax Liability, as applicable, will generally be calculated in a manner consistent with any previously-filed Tax Returns or with any Tax Returns to be filed in accordance with the provisions of Section 3.2 hereof and, in the event that the parties hereto cannot agree, the Realised Tax Benefit and Cumulative Actual Tax Liability shall be calculated in accordance with such Tax Returns as filed.

 

“Reconciliation Dispute” has the meaning set forth in clause 6.1.

 

“Reconciliation Procedures” means those procedures set forth in clause 6.

 

“Registration Statement” means the registration statement on Form S-1 filed by OMAM with the U.S. Securities and Exchange Commission in connection with the IPO, as such registration statement may be amended from time to time.

 

“Schedule” means any Tax Benefit Schedule, Amended Tax Benefit Schedule or Termination Schedule.

 

“Schedule Delivery Date” means, in respect of a Taxable Year of OMAM US and any Subsidiaries of OMAM US, 30 November in the year following the end of such Taxable Year.

 

“Senior Obligations” is defined in clause 8.1.

 

“Shareholder Agreement” means the shareholder agreement entered into, or to be entered into, by OMGUK, OMAM and Old Mutual plc in connection with the IPO.

 

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“Straddle Period” means a Subject Taxable Year of the OMAM Subsidiaries in which the closing date of the IPO occurs.

 

“Subject Taxable Years” means, in relation to the relevant Schedule Delivery Date, the relevant federal Taxable Year of OMAM US and its consolidated Subsidiaries, the relevant state Taxable Year of OMAM US and any Subsidiary with which OMAM US files a consolidated, combined, unitary or other Tax Return, and any federal or state Taxable Year of any non-consolidated OMAM Subsidiary ending within, or with, the consolidated federal Taxable Year of OMAM US.

 

“Subsidiaries” means with respect to any Person, (i) a corporation of which such Person owns stock that possesses at least 80% of the total voting power of the stock of such corporation, and has a value equal to at least 80% of the total value of the stock of such corporation or (ii) a corporation with which such Person files a combined, consolidated, unitary or similar Tax Return.

 

“Takeover” means a Change of Control which arises as a result of a single Person acquiring a holding of more than 50% of the ordinary share capital of OMAM.

 

“Tax” or “Taxes” means any and all U.S. federal, state, local and foreign tax, assessments or similar charges that are based on or measured with respect to net income or profits, whether as an exclusive or on an alternative basis, and any interest or penalties related to such tax.

 

“Tax Benefit Schedule” is defined in clause 2.2.

 

“Tax Benefit Termination Date” means:

 

(a)                                 an Elected Change of Control Termination Date; or

 

(b)                                 if an Elected Change of Control Termination Date has not occurred, the later of:

 

(i)                                     the 2019 Termination Date; and

 

(ii)                                  31 December in the calendar year in which a Change of Control first occurs.

 

“Tax Return” means any return, declaration, report or similar statement required to be filed with respect to Taxes (including any attached schedules), including any information return, claim for refund, amended return and declaration of estimated Tax.

 

“Taxable Year” means a Taxable year of an OMAM Subsidiary as defined in clause 441(b) of the Code or any comparable section of state, local or non-United States Tax law, as applicable (and therefore may include a period of less than 12 months for which a Tax Return is prepared).

 

“Taxing Authority” means any domestic, non-United States, federal, national, state, county or municipal or other local government, any subdivision, agency, commission or authority thereof, or any quasi-governmental body exercising any Taxing authority or any other authority exercising Tax regulatory authority.

 

“Termination Amount” means an amount equal to the present value, discounted at the Termination Rate, of all amounts that would be required to be paid by OMAM to OMGUK pursuant to clause 4 of this Deed on the dates stipulated in that clause (disregarding the effect

 

5

 

of clause 5.1 of this Deed) beginning from the day immediately following the Tax Benefit Termination Date and applying the Valuation Assumptions.

 

“Termination Adjustment Amount” is defined in clause 5.9.

 

“Termination Rate” means an interest rate equal to the sum of the following: (i) the five year U.S. Treasury Rate at the applicable Tax Benefit Termination Date; (ii) the swap rate applicable to a counterparty with a credit rating of BBB+ from Standard & Poors (or equivalent rating from an internationally recognized rating agency) swapping 3-month LIBOR at such Tax Benefit Termination Date into a five year fixed rate; and (iii) 55 basis points.

 

“Termination Schedule” is defined in clause 5.2.

 

“Treasury Regulations” means the final, temporary and proposed regulations under the Code promulgated from time to time (including corresponding provisions and succeeding provisions) as in effect for the relevant taxable period.

 

“True-Up Payment” is defined in clause 4.3.

 

“Valuation Assumptions” means the following assumptions:

 

(a)                                 The taxable income, profits and gains (before deductions for interest expense and net operating losses) of each OMAM Subsidiary (1) for the first Subject Taxable Year after the Tax Benefit Termination Date will equal the average of its taxable income, profits and gains (before deductions for interest expense and net operating losses) in each relevant Subject Taxable Year from the day immediately following the closing date of the IPO to the Tax Benefit Termination Date; and (2) for each Taxable Year subsequent to the Tax Benefit Termination Date shall grow by the compounded annual growth rate of income profits and gains for that OMAM Subsidiary for each of the Subject Taxable years ending between the day immediately following the closing date of the IPO and the Tax Benefit Termination Date over such average each year.

 

(b)                                 the post-IPO component of interest expense in each Subject Taxable Year after the Tax Benefit Termination Date will equal the average annual post-IPO component of interest expense in each relevant Subject Taxable Year from the day immediately following the closing date of the IPO to the Tax Benefit Termination Date (and will remain constant);

 

(c)                                  the projected total interest expense for a Subject Taxable Year after the Tax Benefit Termination Date will be based on the average of the following ratio with respect to each Subject Taxable Year prior to the Tax Benefit Termination Date: total interest expense permitted under section 163(j) of the Code to taxable income before taking interest and net operating loss deductions into account.

 

(d)                                 all Tax laws and Tax rates in force as at the Tax Benefit Termination Date remain in effect, provided that any Tax laws enacted but not yet in force as at the Tax Benefit Termination Date shall be taken into account with effect from the date on which such laws come into force.

 

1.2                              In this Deed (except where the context otherwise requires).

 

(a)                                 any reference to a clause is to the relevant clause of this Deed and any reference to a sub-clause is to the relevant sub-clause of the clause in which it appears;

 

6

 

(b)                                 the table of contents, and clause, schedule and paragraph headings are included for convenience only and shall not affect the interpretation of this Deed;

 

(c)                                  use of the singular includes the plural and vice versa;

 

(d)                                 use of any gender includes the other genders;

 

(e)                                  any reference to “Persons” includes natural persons, firms, partnerships, companies, corporations, associations, organisations, governments, states, governmental or state agencies, foundations and trusts (in each case whether or not having separate legal personality and irrespective of the jurisdiction in or under the law of which it was incorporated or exists);

 

(f)                                   a reference to a “party” is a reference to a party to this Deed and, subject to clause 10, a reference to a “party” includes a reference to that party’s successors in title and permitted transferees (if any);

 

(g)                                  if a period of time is specified and it dates from a given day or the day of an act or event, it shall be calculated exclusive of that day;

 

(h)                                 if a party must do something on a given day, they must do it by 5:00pm on that day (unless this Deed expressly states otherwise).  If they do the thing after 5.00pm on a day they are treated as not having done it until the next day.  A reference to a time of day is a reference to London time;

 

(i)                                     a reference to “writing” does not include email;

 

(j)                                    a reference to a statute or statutory provision is a reference to that statute or statutory provision and to all orders, regulations, instruments or other subordinate legislation made under the relevant statute;

 

(k)                                 any reference to a statute, statutory provision, subordinate legislation, code or guideline (“legislation”) is a reference to such legislation as amended and in force from time to time and to any legislation which re-enacts, rewrites or consolidates (with or without modification) any such legislation;

 

(l)                                     a reference to a governmental authority includes any successor to that governmental authority;

 

(m)                             any reference to an English legal term for any action, remedy, method of judicial proceeding, legal document, legal status, court, official or any legal concept or thing shall, in respect of any jurisdiction other than England, be deemed to include a reference to what most nearly approximates in that jurisdiction to the English legal term;

 

(n)                                 the ejusdem generis rule shall not apply and accordingly general words introduced by the word “other” or any similar word, or followed by the words “including”, “includes”, “include”, “in particular” or any similar words, shall not be given a restricted meaning because they are preceded or followed by more specific words;

 

(o)                                 any reference to another document or any provisions of that document shall be construed as a reference to it as it is in force for the time being and as amended in accordance with the terms of the document or, as the case may be, with the agreement of the relevant parties or the consent of a specified party;

 

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(p)                                 It is the intention of the parties hereto that every covenant, term and provision of the Deed shall be construed simply according to its fair meaning and not strictly for or against any party, it being understood and agreed that the parties to this Deed are sophisticated and have had adequate opportunity and means to retain counsel to represent their respective interests and to otherwise negotiate the terms and provisions of this Deed.  Accordingly, the parties hereby waive, to the fullest extent permitted by applicable law, the benefit of any applicable law that would require that in cases of uncertainty, the language of a contract should be strictly construed against, or most strongly construed against, the party who drafted such language.

 

2.                                      DETERMINATION OF REALISED TAX BENEFIT

 

2.1                               OMAM shall use all reasonable efforts to cause the OMAM Subsidiaries to claim, to the fullest extent permitted by applicable law, the benefit of the Pre-IPO Tax Assets in order to reduce the amount of Taxes that the OMAM Subsidiaries would otherwise be required to pay, and the Pre-IPO Tax Assets shall be utilised in the order and priority set forth in applicable law, but this clause 2.1 shall not require OMAM to cause the OMAM Subsidiaries to utilise the Pre-IPO Tax Assets in priority to any other Tax attributes.

 

2.2                              Subject to clause 2.3, on each Schedule Delivery Date, OMAM shall provide to OMGUK:

 

(a)                                 a schedule (a “Tax Benefit Schedule”) in the format set out in Schedule 1 showing in reasonable detail:

 

(i)                                     the calculation of the Realised Tax Benefit for each OMAM Subsidiary for each relevant Subject Taxable Year;

 

(ii)                                  the amount of any Payments on Account previously paid in respect of the relevant Subject Taxable Year pursuant to clause 4.2; and

 

(iii)                               where relevant, any Adjustment Amount; and

 

(b)                                 all supporting information (including working papers and valuation reports) reasonably necessary to support the calculation of the amounts set forth on the Tax Benefit Schedule.

 

2.3                               In calculating the Realised Tax Benefit in respect of the Straddle Period:

 

(a)                                 the relevant Subject Taxable Year shall on a notional basis be split into two periods, one beginning before, and ending immediately on (and including) the closing date of the IPO and the second beginning on the day immediately following the closing date of the IPO;

 

(b)                                 the Realised Tax Benefit in respect of the relevant Subject Taxable Year will be allocated between the portion of the Straddle Period ending on and including the closing date of the IPO and the portion beginning on the day immediately following the closing date of the IPO on the basis of the number of days in each period, with the Realised Tax Benefit attributable to the latter period being included for the purposes of clause 2.2(a)(i) above; and

 

(c)                                  the relevant Tax Benefit Schedule should include adequate details of any division process referred to in clause 2.3(b) above.

 

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2.4                               A Tax Benefit Schedule provided in accordance with clause 2.2 shall be amended from time to time by OMAM (such amended Tax Benefit Schedule, an “Amended Tax Benefit Schedule”):

 

(a)                                 in connection with a Determination affecting such Schedule;

 

(b)                                 to correct inaccuracies in the Schedule;

 

(c)                                  to comply with the Expert’s determination under the Reconciliation Procedures or any award under clause 11.2;

 

(d)                                 to reflect a change (relative to the amounts in the original Tax Benefit Schedule) in the Realised Tax Benefit for a Subject Taxable Year attributable to an amendment to a Tax Return filed for a relevant Subject Taxable Year; or

 

(e)                                  to take into account the effect of any Determination with respect to an unresolved claim, proposed claim or similar item by a Taxing Authority originally taken into account in computing the Realised Tax Benefit.

 

2.5                               OMAM shall provide any Amended Tax Benefit Schedule to OMGUK as soon as practicable and in any event within 30 Business Days of the occurrence of an event referred to in clauses (a) to (e) of clause 2.4, and any such Amended Tax Benefit Schedule shall be subject to the approval procedures described in clause 3.3.

 

2.6                               OMAM shall also amend a Tax Benefit Schedule at the request of OMGUK to reflect any of the events noted in clause 2.4 and in accordance with the procedures set forth in clause 2.5.

 

3.                                      INFORMATION; FINALIZATION OF SCHEDULES

 

3.1                               Within 30 Business Days following the closing date of the IPO, and within 30 Business Days following the start of each federal Taxable Year of OMAM US thereafter, OMAM shall provide a schedule to OMGUK describing in reasonable detail: (i) the estimated Realised Tax Benefit of each OMAM Subsidiary in respect of its current Subject Taxable Year; and (ii) the estimated payments to be made by OMAM to OMGUK pursuant to clause 4.2 in respect thereof.

 

3.2                               The parties shall procure that:

 

(a)                                 OMAM shall provide to OMGUK drafts of any Tax Returns of the OMAM Subsidiaries (together with any related information) that are relevant to the calculation of Realised Tax Benefit in respect of a Subject Taxable Year for comment at least twenty (20) Business Days before the due date for the filing thereof (taking into account applicable extensions);

 

(b)                                 OMGUK shall provide comments on such draft Tax Returns relevant to the determination of the Realised Tax Benefit for the relevant Subject Taxable Year within eight (8) Business Days of receiving such draft Tax Returns and related information, if any, from OMAM;

 

(c)                                  OMAM shall provide to OMGUK a revised draft of the relevant Tax Returns referenced in subclause 3.2(a) (together with any related information) above at least ten (10) Business Days before the due date for filing thereof, and such drafts shall take into account and reflect OMGUK’s reasonable comments in relation to such Tax Returns to the extent relevant to the determination of the Realised Tax Benefit for the relevant Subject Taxable Year;

 

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(d)                                 OMGUK shall provide any final comments in relation to the revised drafts of such Tax Returns and related information (if any) to the extent relevant to the determination of the Realised Tax Benefit for the relevant Subject Taxable Year no later than five (5) days prior to the due date for filing thereof (taking into account applicable extensions); and

 

(e)                                  OMGUK’s reasonable comments in relation to such revised draft Tax Returns, to the extent relevant to the determination of the Realised Tax Benefit for the relevant Subject Taxable Year shall be taken into account or reflected in the Tax Return as filed by OMAM or the relevant OMAM Subsidiary, as applicable.

 

3.3                               Whenever OMAM delivers to OMGUK a Schedule pursuant to this Deed or makes a payment based on an estimate of payments due, OMAM shall also:

 

(a)                                 deliver to OMGUK schedules, valuation reports, if any, and working papers providing reasonable detail regarding the preparation of the Schedule and an Advisory Firm report, in form and substance reasonably satisfactory to OMGUK, if requested by OMGUK, related to such Schedule (the cost and expense of which shall be borne equally by OMGUK and OMAM); and

 

(b)                                 allow OMGUK reasonable access to the appropriate representatives at each relevant OMAM Subsidiary and at the Advisory Firm in connection with a review of such Schedule. OMGUK will have 15 Business Days after receiving the relevant Schedule to provide OMAM with a notice of objection in relation to such Schedule made in good faith. If the parties, for any reason, are unable to successfully resolve the issues raised in any notice within 30 Business Days of receipt by OMAM of such notice then the Reconciliation Procedures shall be applied.

 

(c)                                  In connection with a payment based on an estimate, OMAM shall deliver to OMGUK reasonable details, including working papers, related to the calculation of the estimate and reasonable access to the appropriate representatives at OMAM and at each OMAM Subsidiary that prepared the estimate.

 

3.4                               In addition to the obligations in clauses 3.1, 3.2, and 3.3 OMAM will, and will procure that the other OMAM Subsidiaries will, on an ongoing basis, promptly provide OMGUK with all information it reasonably requests which may be materially relevant to calculating the amount and utilisation of the Pre-IPO Tax Assets.

 

3.5                               For the avoidance of doubt, the policies and procedures adopted by the board of directors of OMAM shall apply to the activities of OMAM and the OMAM Subsidiaries hereunder until the Majority Holder Date (as defined in the Shareholder Agreement).

 

4.                                      PAYMENTS

 

4.1                               Subject to clauses 4.2 and 4.3, OMAM shall for no consideration annually pay OMGUK amounts equal to the amount of Realised Tax Benefits in respect of each Subject Taxable Year as calculated under this Deed.  The Realised Tax Benefits shall be identified in a Tax Benefit Schedule or Amended Tax Benefit Schedule within 10 Business Days of the date upon which the relevant Tax Benefit Schedule or Amended Tax Benefit Schedule (as applicable) becomes final as regards the Realised Tax Benefit in question in accordance with clauses 3.3 and 6.

 

4.2                               OMAM will make installment payments (each a “Payment on Account”) of the anticipated Realised Tax Benefit in respect of each relevant Subject Taxable Year to OMGUK on 15 March, 15 June, 15 September and 15 December in that Subject Taxable Year.  The first such

 

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payment shall be made on the later of December 15, 2014 and 30 calendar days following the closing of the IPO, in respect of the Subject Taxable Year that includes the first Post-IPO Tax Period.  Each such Payment on Account will be equal to the estimated accrued amount of the Realised Tax Benefits in respect of the Subject Taxable Year as to which the next Schedule Delivery Date relates as at those dates, such estimation being based on the most recent forecast for that Subject Taxable Year.

 

4.3                               To the extent the payment required under clause 4.1 has not yet been made in respect of any relevant Subject Taxable Year, as of November 30, 2015, and each November 30 thereafter, OMAM, utilizing such information as it reasonably possesses as of such date (including the amounts set forth on the Tax Return for the immediately preceding Subject Taxable Year, if such Tax Return has been filed or substantially prepared as of such date), shall make a payment to OMGUK equal to the excess of the Realised Tax Benefit in respect of the immediately preceding Subject Taxable Year over the aggregate of the payments previously made under clause 4.2 in respect of such Subject Taxable Year (the “True-Up Payment”).  Any such True-Up Payment shall be treated as reducing OMAM’s liability to make payment to OMGUK under clause 4.1 above to the extent that such payment relates to the Realised Tax Benefits identified in the relevant Schedule.

 

4.4                               Subject to clause 4.6 and 4.7, if:

 

(a)                                 a Tax Benefit Schedule indicates that the cumulative Payments on Account made pursuant to clause 4.2 and True-Up Payments made pursuant to clause 4.3 (if any) in relation to the relevant Subject Taxable Years exceed (or are less than) the Realised Tax Benefits in relation to the Subject Taxable Years; or

 

(b)                                 an Amended Tax Benefit Schedule indicates that any amounts paid to OMGUK pursuant to clause 4.1 above were in excess of (or were less than) the Realised Tax Benefits for the relevant Subject Taxable Years,

 

the amount of the difference (the “Adjustment Amount”) shall be itemised in the relevant Schedule and set off against and reduce, or serve as an additional amount, and increase, any future payments that would otherwise be due to be paid by OMAM to OMGUK under this Deed until the Adjustment Amount has been exhausted through set-off or application in this manner.

 

4.5                               If OMAM reasonably expects that a reduction of the next following payment due from it to OMGUK pursuant to clause 4.1, 4.2 or 4.3 of this Deed will not be sufficient to exhaust any Adjustment Amount in the manner referred to in clause 4.4, and if an OMAM Subsidiary has a liability to make a payment of Tax to a relevant Taxing Authority as a result of a Determination that a Pre-IPO Tax Asset is unavailable (or available in a reduced amount), then, subject to the immediately following sentence, OMGUK will repay to OMAM the amount of the excess Adjustment Amount up to the amount of the relevant liability to Tax no later than 10 Business Days before the date on which the relevant OMAM Subsidiary must account for the tax to the relevant Taxing Authority.  In no event shall OMGUK be required pursuant to this clause 4.5 to pay to OMAM an amount in excess of the net cumulative payments it had received pursuant to clause 4 prior to the date such payment is requested; any amount requested in excess of the limitation in the immediately preceding clause shall instead constitute an Adjustment Amount and will be credited against future payments to OMGUK in the manner set forth in clause 4.4.

 

4.6                               If OMAM reasonably expects that a reduction of all future payments due from OMAM to OMGUK pursuant to this Deed will be insufficient to exhaust any Adjustment Amounts, a refund of the shortfall will then be made by OMGUK to OMAM within 10 Business Days of the parties agreeing in writing that this expectation is reasonable and that the terms of this

 

11

 

clause shall operate; provided that in no event shall OMGUK be required pursuant to this clause 4.6 to pay to OMAM an amount in excess of the cumulative payments it had received pursuant to this clause 4 prior to the date such payment is requested;

 

4.7                               Each payment made pursuant to this Deed shall be made by wire transfer of immediately available funds to a bank account of OMGUK or OMAM (as applicable) previously designated by the relevant party.

 

5.                                      TERMINATION

 

5.1                               OMAM will not be required to make any payment to OMGUK pursuant to clause 4.1 of this Deed in respect of any Realised Tax Benefits accruing or arising after the Tax Benefit Termination Date.

 

5.2                               In the event that the Tax Benefit Termination Date referred to in clause 5.1 above is the 2019 Termination Date, OMAM shall pay OMGUK an amount equal to a reasonable estimate of the Termination Amount as at the 2019 Termination Date within 30 Business Days following that date.

 

5.3                               In the event of a Change of Control which occurs after the 2019 Termination Date:

 

(a)                                 if the Change of Control is the result of a Takeover, OMAM shall pay OMGUK on the date of the Change of Control an amount equal to the aggregate of:

 

(i)                                   a reasonable estimate of all Payments due under clause 4 of this Deed in respect of the Subject Taxable Year in which the Change of Control occurs (or which would have been due but for this clause 5); and

 

(ii)                                a reasonable estimate of the Termination Amount as calculated from the Change of Control Termination Date; and

 

(b)                                 if the Change of Control does not result from a Takeover, OMAM shall pay OMGUK within 30 Business Days following the date of the Change of Control an amount equal to the aggregate of:

 

(i)                                   a reasonable estimate of all Payments due under clause 4 of this Deed in respect of the Subject Taxable Year in which the Change of Control occurs (or which would have been due but for this clause 5); and

 

(ii)                                a reasonable estimate of the Termination Amount as calculated from the Change of Control Termination Date.

 

5.4                               In the event that a Change of Control is the result of a Takeover which occurs prior to the 2019 Termination Date, OMGUK may elect, at its sole discretion and by written notice to OMAM, to treat 31 December of the year in which the Change of Control occurs as a Change of Control Termination Date (an “Elected Change of Control Termination Date”), in which case OMAM shall pay OMGUK on the date of the Change of Control an amount equal to the aggregate of:

 

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(a)                                 a reasonable estimate of all Payments due under clause 4 of this Deed in respect of the Subject Taxable Year in which the Change of Control occurs (or which would have been due but for this clause 5); and

 

(b)                                 a reasonable estimate of the Termination Amount as calculated from the Change of Control Termination Date.

 

5.5                               On the Schedule Delivery Date next following the Tax Benefit Termination Date:

 

(a)                                 OMAM will provide a Tax Benefit Schedule in respect of the relevant Subject Taxable Years to OMGUK in accordance with the normal procedures set out in clause 2.2; and

 

(b)                                 OMAM will provide a schedule to OMGUK showing in reasonable detail the calculation of the Termination Amount (the “Termination Schedule”) in the format set out in Schedule 2.

 

5.6                               If the Termination Amount exceeds the estimated Termination Amount determined in accordance with clauses 5.2, 5.3 or 5.4 above, OMAM shall pay OMGUK an amount equal to the excess within 10 Business Days of the date upon which the Termination Schedule becomes final in accordance with clauses 3.3 and 6.

 

5.7                               If the Termination Amount is less than the estimated Termination Amount determined in accordance with clauses 5.2, 5.3 or 5.4 above, OMGUK shall pay OMAM an amount equal to the difference within 10 Business Days of the date upon which the Termination Schedule becomes final in accordance with clauses 3.3 and 6.

 

5.8                               A Termination Schedule provided in accordance with clause 5.5 may be amended from time to time by OMAM (such amended schedule, an “Amended Termination Schedule”):

 

(a)                                 to correct inaccuracies in the Amended Termination Schedule;

 

(b)                                 to comply with the Expert’s determination under the Reconciliation Procedures or any award under clause 11.2;

 

(c)                                  to reflect an increase or decrease in the rate of tax that was used to initially calculate the Termination Amount, subject to the provisions of clause 5.12 and 5.13 below; or

 

(d)                                 to take into account the effect of any Determination by a Taxing Authority affecting the computation of the Termination Amount, subject to the provisions of clause 5.13 below.

 

5.9                               OMAM shall provide an Amended Termination Schedule to OMGUK as soon as practicable and in any event within thirty (30) Business Days of the occurrence of an event referred to in clauses (a) through (d) of clause 5.8, and such Amended Termination Schedule shall be subject to the approval procedures described in clause 3.3.

 

5.10                        OMAM shall also amend a Termination Schedule at the request of OMGUK to reflect any of the events noted in clause 5.8 and in accordance with the procedures set forth in clause 5.9.

 

5.11                        Subject to clause 5.13, if:

 

(a)                                 an Amended Termination Schedule indicates that the aggregate amounts paid to OMGUK pursuant to clauses 5.2 through 5.7 above were in excess of (or were less

 

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than) the Termination Amount as reflected on the Amended Termination Schedule(the “Amended Termination Amount”), then

 

(b)                                 the amount of the difference (the “Termination Adjustment Amount”) shall be paid by OMGUK to OMAM, or by OMAM to OMGUK, as applicable, within 10 Business Days of the date upon which the Amended Termination Schedule becomes final in accordance with clauses 3.3 and 6.

 

5.12                        In the case of an increase or decrease in the rate of tax from the rate that was used pursuant to the Valuation Assumptions to initially calculate the Termination Amount, the Amended Termination Amount shall be calculated by amending the Valuation Assumptions to apply the increased or decreased tax rate from and after the date at which such increased or decreased tax rate came into effect.

 

5.13                        Notwithstanding anything to the contrary, in no event shall OMGUK be required to repay to OMAM an amount pursuant to clause 5.11 in excess of the aggregate Termination Amounts paid to OMGUK by OMAM under this Agreement.

 

5.14                        The parties shall have no further obligations or rights under this Deed after the Deed Termination Date, without prejudice to any obligations or rights which have accrued to either party at this date save that clause 13 together with those other clauses, the survival of which is necessary for the interpretation or enforcement of this Deed, shall continue to have effect after the Deed Termination Date.

 

5.15                        If the IPO has not closed before November 30, 2014, the provisions of this Deed shall terminate on that date and the parties shall have no further obligations or rights under this Deed from (and including) such date, save that clause 13, together with those other clauses, the survival of which is necessary for the interpretation or enforcement of this Deed, shall continue to have effect.

 

6.                                      RECONCILIATION

 

6.1                               If OMAM and OMGUK are unable to resolve a disagreement with respect to the matters governed by clause 3.3 within the relevant period designated in this Deed (such disagreement, a “Reconciliation Dispute”), the Reconciliation Dispute shall be submitted for determination to an expert (the “Expert”) in the particular area of disagreement mutually acceptable to both parties. The Expert shall be, or shall be a partner in, a major United States accounting firm or a law firm (other than the Advisory Firm, if one has been selected prior to the selection of the Expert), and the Expert shall not, and/or the firm that employs the Expert shall not, have any material relationship with either OMAM or OMGUK or other actual or potential conflict of interest.

 

6.2                               If the parties are unable to agree on an Expert within 15 Business Days of receipt by the respondent(s) of written notice of a Reconciliation Dispute, the Expert shall be appointed by the International Chamber of Commerce Centre for Expertise. The Expert shall resolve any matter relating to: (i) the Termination Schedule or an amendment thereto within 30 Business Days; and (ii) a Tax Benefit Schedule or an Amended Tax Benefit Schedule within 15 Business Days or as soon thereafter as is reasonably practicable, in each case after the matter has been submitted to the Expert for resolution.

 

6.3                               If the reconciliation provisions contemplated by this clause 6 are utilised, the fees of the Expert shall be paid in proportion to the manner in which the dispute is resolved, such that, for example, if the entire dispute is resolved in favour of OMAM, OMGUK shall pay all of the fees of the Expert, or if the items in dispute are resolved 50% in favour of OMAM and 50% in favour of OMGUK, each of OMAM and OMGUK shall pay 50% of the fees of the

 

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Expert. Any Dispute as to whether a Dispute is a Reconciliation Dispute within the meaning of this clause 6.1 shall be decided by the Expert.  The Expert shall finally determine any Reconciliation Dispute and the determinations of the Expert pursuant to this clause 6 shall be binding on OMAM and OMGUK and may be entered and enforced in any court having jurisdiction.

 

7.                                      CONDUCT OF AN ENQUIRY/CLAIM

 

7.1                               If OMAM becomes aware of an Enquiry/Claim, OMAM will:

 

(a)                                 provide written notice to OMGUK of the Enquiry/Claim as soon as practicable and, in any event, within 14 Business Days of the relevant entity becoming so aware;

 

(b)                                 procure that any relevant OMAM Subsidiary will give OMGUK information and access to personnel, documents and records (and its representatives) as OMGUK may reasonably request in relation to the Enquiry/Claim;

 

(c)                                  insofar as an Enquiry/Claim relates to a matter that would affect the amount of Realised Tax Benefits paid, or payable, under this Deed, procure that the relevant OMAM Subsidiary will take such action as OMGUK shall reasonably request to avoid, dispute, resist, appeal, compromise or defend such portion of the Enquiry/Claim; and

 

(d)                                 procure that OMGUK is kept fully informed of any actual or proposed developments, and is provided with copies of all material correspondence with any Taxing Authority, in relation to the Enquiry/Claim and is given the opportunity to comment on such developments or documents.

 

7.2                               OMAM will not, and will procure that any relevant OMAM Subsidiaries will not, make any admission of liability in respect of, or any agreement to settle or compromise, the Enquiry/Claim without the prior written consent of OMGUK, such consent not to be unreasonably withheld or delayed, provided that it shall not be unreasonable for OMGUK to withhold its consent if, in the written opinion of a Tax professional of appropriate relevant experience appointed by agreement between OMGUK and OMAM, the relevant OMAM Subsidiary has a reasonable prospect of successfully defending the Enquiry/Claim or settling or compromising the Enquiry/Claim in a lower amount.

 

7.3                               If OMGUK does not request OMAM to take any action within 20 Business Days of receiving a notice referred to in clause 7.1(a), OMAM shall be free to conduct, satisfy or settle the Enquiry/Claim (or procure that the Enquiry/Claim is conducted, satisfied or settled) on such terms as it sees fit.

 

7.4                               OMGUK shall indemnify OMAM and any relevant OMAM Subsidiary to their reasonable satisfaction for all reasonable out of pocket legal and other professional costs and expenses that are or may be incurred in connection with actions taken pursuant to clause 7.1(b), (c), or (d).

 

7.5                               If an Enquiry/Claim relates to a Pre-IPO Tax Period and a Post-IPO Tax Period, or includes any matter which does not affect the amount of Realised Tax Benefits paid, or payable, under this Deed, the costs, expenses and fees (other than taxes) relating solely to the conduct of the Enquiry/Claim shall be shared by OMAM and OMGUK by reference to their respective economic interests in the Enquiry/Claim or in such other way as may be agreed between them.

 

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8.                                      LATE PAYMENTS

 

8.1                               The amount of all or any portion of any payment not made to OMGUK or OMAM when due under the terms of this Deed shall be payable together with any interest thereon, computed at the Default Rate and commencing from the date on which such payment was due and payable.

 

9.                                      NOTICES

 

9.1                               Any notice, request, consent and other communication given or made to any party under this Deed shall be in writing and may be served by hand delivering it or sending it by prepaid first class recorded delivery (including without limitation special delivery) or first class registered post or fax to the address and for the attention of the relevant party set out in clause 9.2 (or as otherwise notified by that party under this clause).  Any notice shall be deemed to have been received:

 

(a)                                 if hand delivered or sent by prepaid first class recorded or registered post or prepaid international recorded airmail, at the time of delivery; and

 

(b)                                 if sent by first class post (other than by prepaid recorded or registered post), two days from the date of posting; and

 

(c)                                  in the case of fax, at the time of transmission,

 

provided that if deemed receipt occurs before 9.00a.m. on a Business Day the notice shall be deemed to have been received at 9.00a.m. on that day, and if deemed receipt occurs after 5.00p.m. on a Business Day, or on any day which is not a Business Day, the notice shall be deemed to have been received at 9.00a.m. on the next Business Day.

 

9.2                               The addresses and fax numbers of the parties for the purposes of clause 9.1 are:

 

If to OMAM, to:

 

c/o Old Mutual (US) Holdings Inc.

200 Clarendon Street, 53rd Floor

Boston, MA 02116

Attention: Stephen H. Belgrad, CFO

Phone No: 617-369-7371

Email: Sbelgrad@oldmutualus.com

 

with a copy to:

 

Bingham McCutchen LLP

399 Park Avenue

New York, New York 10022

(T) (212) 705-7000

(F) (212) 752-5378

Attention: Floyd I. Wittlin, Esq.

Email: Floyd.wittlin@bingham.com

 

if to OMGUK, to:

 

Old Mutual  Plc

5th Floor, Millennium Bridge House

2 Lambeth Hill

London EC4V 4GG, United Kingdom

Attention: Group Company Secretary

Phone No: +44 (0) 20 7002 7109

Email: martin.murray@omg.co.uk

 

with a copy to:

 

Skadden, Arps, Slate, Meagher & Flom LLP

4 Times Square

New York, New York 10036

Attention: Ralph Arditi

Phone No: 212-735-3860

Email: ralph.arditi@skadden.com

 

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or such other address or fax number as may be notified in writing from time to time by the relevant party to the other party.  Any change to the place of service shall take effect five Business Days after notice of the change is received or (if later) on the date (if any) specified in the notice as the date on which the change is to take place.

 

9.3                               Notice given under this Deed shall not be validly served if sent by email but a copy of all notices given under this Deed must also be sent via email by the relevant party to their usual, or the most appropriate, contact at the other party at the time at which they are sent by the formal method.

 

10.                               ASSIGNMENT; AMENDMENTS; WAIVERS; AND SUCCESSORS

 

10.1                        Neither this Deed nor any of the rights, interests or obligations of any party under this Deed may be assigned by such party without the prior written consent of the other party, except that OMGUK may assign this Deed or its rights and interests under this Deed to OM plc or any OMAM Subsidiary.

 

10.2                        No amendment, modification, supplement or variation of this Deed (or any document entered into pursuant to or in connection with this Deed) shall be valid unless it is in writing and signed by or on behalf of each of the parties to this Deed. For the avoidance of doubt, no amendment, modification, supplement or variation of this Deed shall be valid if made by e-mail.  Any failure of a Party to comply with any obligation, covenant or agreement contained in this Agreement may be waived by the Party entitled to the benefits thereof only by a written instrument duly executed by the Party granting such waiver, but such waiver or failure to insist upon strict compliance with such obligation, covenant or agreement shall not operate as a waiver of, or estoppel with respect to, any subsequent or other failure of compliance.

 

10.3                        All of the terms and provisions of this Deed shall be binding upon, shall inure to the benefit of and shall be enforceable by the parties hereto and their respective successors and permitted assigns.  OMAM shall require and cause any direct or indirect successor (whether by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of OMAM, by written agreement, expressly to assume and agree to perform this Deed in the same manner and to the same extent that OMAM would be required to perform if no such succession had taken place.

 

11.                               ARBITRATION

 

11.1                        [Reserved]

 

11.2                        Arbitration

 

Any dispute arising out of or in connection with this Deed, including any question regarding its existence, validity or termination, shall be referred to and finally resolved by arbitration under the rules of the London Court of International Arbitration (such court, the “LCIA Court”) which are deemed to be incorporated by reference into this clause, save as modified herein:

 

(i)                                     The seat of arbitration shall be London, England.

 

(ii)                                  There shall be three arbitrators, one nominated by the claimant and one nominated by the respondent within fifteen (15) days of respondent’s receipt of the claimant’s request for arbitration. If any party has not appointed its arbitrator within the 15-day period specified herein, such appointment shall be made by the LCIA Court upon the written request of a party within 15 days of such request. The LCIA Court shall appoint the chairman within 15

 

17

 

days of the nomination of the other two members of the tribunal. The hearing shall be held no later than one-hundred-and-twenty days following the appointment of the third arbitrator.

 

(iii)                               In terms of procedure, the parties agree that:

 

(A)                               The Request shall be treated as the Claimant(s)’ Statement of Case.

 

(B)                               The Statement of Defence shall be sent to the Registrar within 15 days of receipt of notice of appointment of the third arbitrator.

 

(C)                               A case management hearing shall take place within 10 days of receipt of the Statement of Defence to determine the procedure leading up to the hearing.  The parties shall seek to agree to the procedure between them, consistent with the provisions of this clause 11.2.

 

(D)                               The Statement of Reply (if any) shall be sent to the Registrar within 15 days of receipt of the Statement of Defence.

 

(E)                                The Statement of Reply to Counterclaim (if any) shall be sent to the Registrar within 15 days of receipt of the Statement of Reply.

 

(F)                                 The arbitral tribunal shall exercise its power to order the parties to supply copies of any documents in their possession, custody or power that are relevant to the subject matter of the dispute taking into account the parties’ desire that the arbitration be conducted expeditiously and cost effectively. All disclosure of documents shall be completed within sixty (60) days of the appointment of the third arbitrator.

 

(G)                               The parties agree that they shall have the right to be heard orally on the merits of the dispute.

 

(iv)                              By agreeing to arbitration, the parties do not intend to deprive a court of its jurisdiction to issue a pre-arbitral injunction, pre-arbitral attachment, or other order in aid of arbitration proceedings and the enforcement of any award. Without prejudice to such provisional remedies as may be available under the jurisdiction of a court, the arbitral tribunal shall have full authority to grant provisional remedies, to direct the parties to request that any court modify or vacate any temporary or preliminary relief issued by such court, and to award damages for the failure of any party to respect the arbitral tribunal’s orders to that effect. For the purpose of any provisional relief contemplated hereunder, the parties hereby submit to the non-exclusive jurisdiction of the English Courts. Each party unconditionally and irrevocably waives any objections which they may have now or in the future to the jurisdiction of the English Courts including objections by reason of lack of personal jurisdiction, improper venue, or inconvenient forum.

 

(v)                                 The award shall be in writing, shall state the findings of fact and conclusions of law on which it is based, shall be final and binding and shall be the sole and exclusive remedy between the parties regarding any claims or counterclaims presented to the arbitral tribunal. Judgment upon any award may be entered in any court having jurisdiction.

 

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(vi)                              The parties will bear equally all fees, costs, disbursements and other expenses of the arbitration, and each party shall be solely responsible for all fees, costs, disbursements and other expenses incurred in the preparation and prosecution of their own case; provided that in the event that a party fails to comply with the orders or decision of the arbitral tribunal, then such noncomplying party shall be liable for all costs and expenses (including attorney fees) incurred by the other party in its effort to obtain either an order to compel, or an enforcement of an award, from a court of competent jurisdiction.

 

(vii)                           The arbitral tribunal shall have no authority to award punitive, exemplary or multiple damages or any other damages not measured by the prevailing parties’ actual damages.

 

(viii)                        All notices by one party to another in connection with the arbitration shall be in accordance with the provisions of clause 9 hereof, except that all notices for a demand for arbitration made pursuant to this clause 11.2(viii) must be made by personal delivery or receipted overnight courier. This agreement to arbitrate shall be binding upon the successors and permitted assigns of each party. This Deed and the rights and obligations of the parties shall remain in full force and effect pending the award in any arbitration proceeding hereunder.

 

11.3                        Confidentiality

 

Except to the extent necessary to compel arbitration or in connection with arbitration of any dispute under this Deed, or for enforcement of an arbitral award, information concerning (i) the existence of an arbitration pursuant to this clause 11, (ii) any documentary or other evidence given by a Party or a witness in the arbitration, or (iii) the arbitration award, may not be disclosed by the tribunal administrator, the arbitrators, any Party or its counsel to any Person not connected with the proceeding unless required by law or by a court or competent regulatory body, and then only to the extent of disclosing what is legally required. A Party filing any document arising out of or relating to any arbitration in court shall seek from the court confidential treatment for such document and provide notice thereof to the non-disclosing Party.

 

11.4                        Conduct during Dispute Resolution

 

The Parties shall continue the performance of their respective obligations under this Deed that are not the subject of dispute during the resolution of any dispute or agreement, including during any period of arbitration, unless and until this Deed is terminated or expires in accordance with its terms and conditions.

 

12.                               WITHHOLDING

 

Either party shall be entitled to deduct and withhold from any payment payable pursuant to this Deed such amounts as that party is required by law to deduct and withhold with respect to the making of such payment. To the extent that amounts are so withheld and paid over to the appropriate Taxing Authority by the relevant party, such withheld amounts shall be treated for all purposes of this Deed as having been paid to the other party.

 

13.                               CONFIDENTIALITY

 

Each party undertakes that hereafter it will treat all information provided to it by any other party with the same degree of care as such party treats its own information of the same nature; provided that each party hereto may disclose to any and all persons, without limitation of any

 

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kind, the tax treatment and tax structure of the transactions described in this Deed for the relevant party, and all materials of any kind (including opinions or other tax analyses) that are provided to such party relating to such tax treatment and tax structure.

 

14.                               NO JOINT VENTURE

 

Nothing in this Deed is intended to or shall operate to create a partnership or joint venture of any kind between the parties, or to authorise either party to act as agent for the other, and neither party shall have authority to act in the name or on behalf of or otherwise to bind the other in any way (including but not limited to the making of any representation or warranty, the assumption of any obligation or liability and the exercise of any right or power).

 

15.                               COUNTERPARTS

 

This Deed may be executed in any number of counterparts, including electronic counterparts, and by the parties to it on separate counterparts, each of which shall be an original, but all of which together shall constitute one and the same instrument. The Deed is not effective until each party has executed at least one counterpart.

 

16.                               ENTIRE DEED; NO THIRD-PARTY BENEFICIARIES.

 

16.1                        This Deed, including any schedules hereto constitutes the entire agreement and understanding of the parties relating to the subject matter of this Deed and supersedes any previous agreement or understanding between the parties in relation to such subject matter.  Each of the parties acknowledges and agrees that in entering into this Deed, it has not relied on any statement, representation, warranty, understanding, undertaking, promise or assurance of any person (whether party to this Deed or not) which is not expressly set out in this Deed

 

16.2                        The parties acknowledge that they have been independently advised and, having regard to the circumstances and to the other provisions of this Deed, they consider this clause 16 to be fair and reasonable.

 

16.3                        Nothing in this Deed, express or implied, is intended to or shall confer upon any person other than the parties hereto and their respective successors and permitted assigns, any rights or remedies hereunder.  A person who is not a party to this Deed shall have no right under the Contracts (Rights of Third parties) Act 1999 to rely upon or enforce any term of this Deed. This clause shall not affect any right or remedy of a third party which exists or is available apart from that Act.

 

17.                      GOVERNING LAW

 

The validity, construction and performance of this Deed (and any claim, dispute or matter arising under or in connection with it or its enforceability) and any non-contractual obligations arising out of or in connection with it, shall be governed by and construed in accordance with the law of England and Wales.

 

18.                               SEVERANCE

 

18.1                        If any provision of this Deed shall be found to be invalid or unenforceable, such invalidity, illegality or unenforceability shall not affect the other provisions of this Deed which shall remain in full force and effect.

 

18.2                        If any provision of this Deed is so found to be invalid, illegal or unenforceable but would be valid or enforceable if some part of the provision were deleted, the provision in question shall apply with such deletion(s) as may be necessary to make it valid.

 

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18.3                        The parties shall, in the circumstances referred to in clause 18.1, and if clause 18.2 does not apply, use good faith, commercially reasonable endeavours to find and effect an alternative means to achieve the same or substantially the same result as that contemplated by the invalid, illegal or unenforceable provision.

 

19.                               REMEDIES.

 

19.1                        The parties hereby expressly recognize and acknowledge that immediate, extensive and irreparable damage would result, no adequate remedy at law would exist and damages would be difficult to determine in the event that any provision of this Deed is not performed in accordance with its specific terms or is otherwise breached. Therefore, in addition to, and not in limitation of, any other remedy available to any party, and notwithstanding the provisions of clause 8.2, an aggrieved Party under this Deed is entitled to specific performance of the terms hereof and immediate injunctive relief, without the necessity of proving the inadequacy of money damages as a remedy. Neither party shall be required to obtain or furnish any bond or similar instrument in connection with or as a condition to obtaining or seeking any such remedy. For the avoidance of doubt, nothing in this Deed shall diminish the availability of specific performance of the obligations under this Deed or any other injunctive relief.

 

19.2                        Such remedies, and any and all other remedies provided for in this Deed, shall be cumulative in nature and not exclusive and shall be in addition to any other remedies whatsoever which any party may otherwise have. Each of the parties hereby acknowledges and agrees that it may be difficult to prove damages with reasonable certainty, that it may be difficult to procure suitable substitute performance, and that injunctive relief and/or specific performance will not cause an undue hardship to the parties. Each party hereby further agrees that in the event of any action by the other party for specific performance or injunctive relief, it will not assert that a remedy at law or other remedy would be adequate or that specific performance or injunctive relief in respect of such breach or violation should not be available on the grounds that money damages are adequate or any other grounds.

 

20.                               FURTHER ASSURANCES

 

Each party shall, on being required to do so by any other party, perform or procure the performance of all such acts and/or execute and/or deliver or procure the execution and/or delivery of all such documents (in each case at its own expense), as may be required by law or as any other party may from time to time reasonably require in order to implement and give full effect to this Deed.

 

[Signature page follows.]

 

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IN WITNESS WHEREOF, this document has been executed as a Deed and is delivered and takes effect on the date first written above.

 

 

	
EXECUTED   AND DELIVERED
    	
)
    
	
AS   A DEED by
    	
)
    
	
OM ASSET MANAGEMENT PLC
    	
)
    
	
acting by its   authorised signatory
    	
)
    	
/s/ Julian   Roberts
    	
 (authorised   signatory)
    
	
 
    	
 
    
	
In the   presence of:
    	
)
    

 

 

	
Signature of   witness:
    	
/s/   Vance Chapman
    	
 
    
	
 
    	
 
    	
 
    
	
Name of   witness (print) :
    	
Vance   Chapman
    	
 
    
	
 
    	
 
    	
 
    
	
Witness   Address:
    	
41   Lothbury
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
London   EC2R 7HF
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

 

	
EXECUTED   AND DELIVERED
    	
)
    
	
AS   A DEED by
    	
)
    
	
OM GROUP (UK) LIMITED
    	
)
    
	
acting by its   authorised signatory
    	
)
    	
/s/ Martin C.   Murray
    	
 (authorised   signatory)
    
	
 
    	
 
    
	
In the   presence of:
    	
)
    

 

 

	
Signature of   witness:
    	
/s/   Sophie Donnithorne-Tait
    	
 
    
	
 
    	
 
    	
 
    
	
Name of   witness (print) :
    	
Sophie   Donnithorne-Tait
    	
 
    
	
 
    	
 
    	
 
    
	
Witness   Address:
    	
41   Lothbury
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
London   EC2R 7HF
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

 

Schedule 1

 

Form of Tax Benefit Schedule

 

 

Schedule 2

 

Form of Termination Schedule

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00236-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00236-of-00352.parquet"}]]