Document:

Document

        

SUPPLEMENTAL INDENTURE
between
PROSPECT CAPITAL CORPORATION
and
U.S. BANK NATIONAL ASSOCIATION
as Trustee
Dated as of May 27, 2021

        

SUPPLEMENTAL INDENTURE
THIS SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of May 27, 2021, is between Prospect Capital Corporation, a Maryland corporation (the “Company”), and U.S. Bank National Association, as trustee (the “Trustee”).  All capitalized terms used herein shall have the meaning set forth in the Base Indenture (as defined below).
RECITALS OF THE COMPANY

The Company and the Trustee executed and delivered an Indenture, dated as of February 16, 2012, as amended by that certain Agreement of Resignation, Appointment and Acceptance, dated March 12, 2012, by and among the Company, the Trustee, and American Stock Transfer & Trust Company, LLC (the “Base Indenture” and, as supplemented by one or more supplemental indentures, including this Supplemental Indenture, the “Indenture”), to provide for the issuance by the Company from time to time of the Company’s unsecured debentures, notes or other evidences of indebtedness (the “Securities”), to be issued in one or more series as provided in the Indenture.
The Company desires to issue and sell $300,000,000 aggregate principal amount of the Company’s 3.364% Notes due 2026 (the “Notes”).
Sections 9.01(5) and 9.01(7) of the Base Indenture provide that without the consent of Holders of the Securities of any series issued under the Indenture, the Company, when authorized by or pursuant to a Board Resolution, and the Trustee, at any time and from time to time, may enter into one or more indentures supplemental to the Base Indenture to (i) change or eliminate any of the provisions of the Indenture when there is no Security Outstanding of any series created prior to the execution of a supplemental indenture that is entitled to the benefit of such provision and (ii) establish the form or terms of Securities of any series as permitted by Sections 2.01 and 3.01 of the Base Indenture.
The Company desires to establish the form and terms of the Notes and to modify, alter, supplement and change certain provisions of the Base Indenture for the benefit of the Holders of the Notes (except as may be provided in a future supplemental indenture to the Indenture (a “Future Supplemental Indenture”)).
The Company has duly authorized the execution and delivery of this Supplemental Indenture to provide for the issuance of the Notes and all acts and things necessary to make this Supplemental Indenture a valid, binding, and legal obligation of the Company and to constitute a valid agreement of the Company, in accordance with its terms, have been done and performed.
NOW, THEREFORE, THIS INDENTURE WITNESSETH:
1

        

For and in consideration of the premises and the purchase of the Notes by the Holders thereof, it is mutually agreed, for the equal and proportionate benefit of all Holders of the Notes, as follows:  
ARTICLE I

TERMS OF THE NOTES

Section 1.01Establishment of the Notes.
(a)The Notes shall constitute a series of Securities having the title “3.364% Notes due 2026” and shall be designated as Senior Securities under the Indenture.  The Notes shall bear a CUSIP number of 74348T AV4 and an ISIN number of US74348TAV44.
(b)The aggregate principal amount of the Notes that may be initially authenticated and delivered under the Indenture (except for Notes authenticated and delivered upon registration of, transfer of, or in exchange for, or in lieu of, other Notes pursuant to Sections 3.04, 3.05, 3.06, 9.06 or 11.07 of the Base Indenture) shall be $300,000,000.  Under a Board Resolution, Officers’ Certificate pursuant to Board Resolutions or an indenture supplement, the Company may from time to time, without the consent of the Holders of Notes, issue additional Notes (in any such case “Additional Notes”) having the same ranking and the same interest rate, maturity and other terms as the Notes.  Any Additional Notes and the existing Notes will constitute a single series under the Indenture and all references to the relevant Notes herein shall include the Additional Notes unless the context otherwise requires.  No Additional Notes may be issued hereunder if an Event of Default with respect to the Note occurs and is continuing.
Section 1.02Principal and Interest Payments.  The entire outstanding principal of the Notes shall be payable on November 15, 2026 (the “Maturity Date”), unless earlier redeemed or repurchased in accordance with the provisions of this Supplemental Indenture.  The rate at which the Notes shall bear interest shall be 3.364% per annum (the “Applicable Interest Rate”).  The date from which interest shall accrue on the Notes shall be May 27, 2021, or the most recent Interest Payment Date to which interest has been paid or provided for; the Interest Payment Dates for the Notes shall be May 15 and November 15 of each year, commencing November 15, 2021 (if an Interest Payment Date falls on a day that is not a Business Day, then the applicable interest payment will be made on the next succeeding Business Day and no additional interest will accrue as a result of such delayed payment); the initial interest period will be the period from and including May 27, 2021 (or the most recent Interest Payment Date to which interest has been paid or provided for), to, but excluding, the initial Interest Payment Date, and the subsequent interest periods will be the periods from and including an Interest Payment Date to, but excluding, the next Interest Payment Date or the Stated Maturity, as the case may be; the interest so payable, and punctually paid or duly provided for, on any Interest Payment Date, will be paid to the Person in whose name the Note (or one or more predecessor Notes) is 
2

        

registered at the close of business on the Regular Record Date for such interest, which shall be January 8 or July 8 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date.  The initial interest payment on the Notes on the November 15, 2021 Interest Payment Date shall be equal to $15.70 per $1,000 principal amount of the Notes.  Payment of principal of (and premium, if any) and any such interest on the Notes will be made at the Corporate Trust Office of the Trustee in New York, New York in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that at the option of the Company payment of interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register.  Interest on the Notes will be computed on the basis of a 360-day year of twelve 30-day months.
Section 1.03.    Global Security.  The Notes shall be initially issuable in global form (each such Note, a “Global Note”).  The Global Notes and the Trustee’s certificate of authentication thereon shall be substantially in the form of Exhibit A to this Supplemental Indenture.  Each Global Note shall represent the outstanding Notes as shall be specified therein and each shall provide that it shall represent the aggregate amount of outstanding Notes from time to time endorsed thereon and that the aggregate amount of outstanding Notes represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions.  Any endorsement of a Global Note to reflect the amount of any increase or decrease in the amount of outstanding Notes represented thereby shall be made by the Trustee or the Security Registrar, in accordance with Sections 2.03 and 3.05 of the Base Indenture.
Section 1.04.    Depositary.  The depositary for such Global Notes (the “Depositary”) shall be The Depository Trust Company, New York, New York.  The Security Registrar with respect to the Global Notes shall be the Trustee.
Section 1.05.    Defeasance.  The Notes shall be defeasible pursuant to Section 14.02 or Section 14.03 of the Base Indenture.  Covenant defeasance contained in Section 14.03 of the Base Indenture shall apply to the covenants contained in Section 10.06 of the Base Indenture and, if specified pursuant to Section 3.01 of the Base Indenture, the obligations under any other covenant.
Section 1.06.    Optional Redemption.  The Notes shall be redeemable pursuant to Section 11.01 of the Base Indenture and as follows:
(a)The Notes will be redeemable, in whole or in part, at any time, or from time to time, at the option of the Company, at a Redemption Price equal to the greater of the following amounts, plus, in each case, accrued and unpaid interest to the Redemption Date:
i.100% of the principal amount of the Notes to be redeemed; or
ii.the sum of the present values of the remaining scheduled payments of principal and interest (exclusive of accrued and unpaid interest to the Redemption Date) on the Notes to be redeemed, discounted to the Redemption Date on a semi-annual basis (assuming a 
3

        

360-day year consisting of twelve 30-day months) using the applicable Treasury Rate plus 45 basis points; 
provided, however, that if the Company redeems any Notes on or after October 15, 2026, the Redemption Price for the Notes will be equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the Redemption Date.

For purposes of calculating the Redemption Price in connection with the redemption of the Notes, on any Redemption Date, the following terms have the meanings set forth below:

“Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the semi-annual equivalent yield-to-maturity of the Comparable Treasury Issue (computed as of the third Business Day immediately preceding the redemption), assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date. The Redemption Price and the Treasury Rate will be determined by the Company.
“Comparable Treasury Issue” means the United States Treasury security selected by the Reference Treasury Dealer as having a maturity comparable to the remaining term of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financing practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Notes being redeemed.
“Comparable Treasury Price” means (1) the average of the remaining Reference Treasury Dealer Quotations for the Redemption Date, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (2) if the Quotation Agent obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations.
“Quotation Agent” means a Reference Treasury Dealer selected by the Company.
“Reference Treasury Dealer” means each of (1) RBC Capital Markets, LLC, (2) Goldman Sachs & Co. LLC and (3) Barclays Capital Inc.; provided, however, that if any of the foregoing or their affiliates shall cease to be a primary U.S. government securities dealer in the United States (a “Primary Treasury Dealer”), the Company shall select another Primary Treasury Dealer.
“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Quotation Agent by such Reference Treasury Dealer at 3:30 p.m. New York time on the third Business Day preceding such Redemption Date.
4

        

All determinations made by any Reference Treasury Dealer, including the Quotation Agent, with respect to determining the Redemption Price will be final and binding absent manifest error.
(b)Notice of redemption shall be given in writing and mailed, first-class postage prepaid or by overnight courier guaranteeing next-day delivery, or sent electronically in accordance with applicable procedures of the Trustee and, so long as the Notes are registered to the Depositary or its nominee, the Depositary, to each Holder of the Notes to be redeemed, not less than 30 nor more than 90 days prior to the Redemption Date, at the Holder’s address appearing in the Security Register. All notices of redemption shall contain the information set forth in Section 11.04 of the Base Indenture.
(c)Any exercise of the Company’s option to redeem the Notes will be done in compliance with the Investment Company Act, to the extent applicable.
(d)If the Company elects to redeem only a portion of the Notes, the particular Notes to be redeemed will be selected in accordance with the applicable procedures of the Trustee and, so long as the Notes are registered to the Depositary or its nominee, the Depositary; provided, however, that no such partial redemption shall reduce the portion of the principal amount of a Note not redeemed to less than $1,000.
(e)Unless the Company defaults in payment of the Redemption Price, on and after the Redemption Date, interest will cease to accrue on the Notes called for redemption hereunder.
Section 1.07    Change of Control.
(a)If a Change of Control Repurchase Event occurs, unless the Company shall have exercised its right to redeem the Notes in full, the Company shall make an offer to each Holder of the Notes to repurchase all or any part (in minimum denominations of $1,000 in principal amount and integral multiples of $1,000 in excess thereof) of that Holder’s Notes at a repurchase price in cash equal to 100% of the aggregate principal amount of Notes repurchased plus any accrued and unpaid interest (including additional interest, if any) on the Notes repurchased to the date of purchase. Within 30 days following any Change of Control Repurchase Event or, at the Company’s option, prior to any Change of Control, but after the public announcement of the Change of Control, the Company will mail a notice to each Holder describing the transaction or transactions that constitute or may constitute the Change of Control Repurchase Event and offering to repurchase Notes on the payment date specified in the notice, which date will be no earlier than 30 days and no later than 60 days from the date such notice is mailed. The notice shall, if mailed prior to the date of consummation of the Change of Control, state that the offer to purchase is conditioned on the Change of Control Repurchase Event occurring on or prior to the payment date specified in the notice. The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of the Notes as a result of a Change of Control Repurchase Event.
5

        

(b)To the extent that the provisions of any securities laws or regulations conflict with this Section 13.01, the Company shall comply with the applicable securities laws and regulations and shall not be deemed to have breached its obligations under this Section 13.01 by virtue of such conflict.
(c)On the Change of Control Repurchase Event payment date, subject to extension if necessary to comply with the provisions of the Investment Company Act, the Company shall, to the extent lawful:
(i)accept for payment all Notes or portions of Notes properly tendered pursuant to its offer;
(ii)deposit with the Paying Agent an amount equal to the aggregate purchase price in respect of all Notes or portions of Notes properly tendered; and
(iii)deliver or cause to be delivered to the Trustee the Notes properly accepted, together with an Officers’ Certificate stating the aggregate principal amount of Notes being purchased by the Company.
(d)The Paying Agent will promptly remit to each Holder of Notes properly tendered the purchase price for the Notes, and the Trustee will promptly authenticate and mail (or cause to be transferred by book-entry) to each Holder a new Note equal in principal amount to any unpurchased portion of any Notes surrendered; provided that each new Note will be in a minimum principal amount of $1,000 or an integral multiple of $1,000 in excess thereof.
(e)If any Repayment Date upon a Change of Control Repurchase Event falls on a day that is not a Business Day, then the required payment will be made on the next succeeding Business Day and no additional interest will accrue as a result of such delayed payment.
(f)The Company will not be required to make an offer to repurchase the Notes upon a Change of Control Repurchase Event if a third party makes an offer in respect of the Notes in the manner, at the time and otherwise in compliance with the requirements for an offer made by the Company and such third party purchases all Notes properly tendered and not withdrawn under its offer.
For purposes of the Notes:
“Below Investment Grade Rating Event” means the Notes are downgraded below Investment Grade by all the Rating Agencies then rating the Notes at the request of the Company on any date from the date of the public notice of an arrangement that results in a Change of Control until the end of the 60-day period following public notice of the occurrence of a Change of Control (which period shall be extended so long as the rating of the Notes is under publicly announced consideration for possible downgrade by any of such Rating Agencies); provided, however, that a Below Investment Grade Rating Event otherwise arising by virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a particular Change of 
6

        

Control (and thus shall not be deemed a Below Investment Grade Rating Event for purposes of the definition of Change of Control Repurchase Event hereunder) if the Rating Agencies making the reduction in rating to which this definition would otherwise apply do not announce or publicly confirm or inform the trustee in writing at its request that the reduction was the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control (whether or not the applicable Change of Control shall have occurred at the time of the Below Investment Grade Rating Event).
“Change of Control” means the occurrence of any of the following:
(i)the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation) in one or a series of related transactions, of all or substantially all of the assets of the Company and its Controlled Subsidiaries taken as a whole to any “person” or “group” (as those terms are used in Section 13(d)(3) of the Exchange Act), other than to any Permitted Holders; provided that, for the avoidance of doubt, a pledge of assets pursuant to any secured debt instrument of the Company or its Controlled Subsidiaries shall not be deemed to be any such sale, lease, transfer, conveyance or disposition;
(ii)the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any “person” or “group” (as those terms are used in Section 13(d)(3) of the Exchange Act) (other than any Permitted Holders) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the outstanding Voting Stock of the Company, measured by voting power rather than number of shares; or
(iii)the approval by the Company’s stockholders of any plan or proposal relating to the liquidation or dissolution of the Company.
“Change of Control Repurchase Event” means the occurrence of a Change of Control and a Below Investment Grade Rating Event.
“Controlled Subsidiary” means any subsidiary of the Company, 50% or more of the outstanding equity interests of which are owned by the Company and its direct or indirect subsidiaries and of which the Company possesses, directly or indirectly, the power to direct or cause the direction of the management or policies, whether through the ownership of voting equity interests, by agreement or otherwise.
“Egan-Jones” means Egan-Jones Ratings Co., or any successor thereto.
“Investment Grade” means a rating of BBB- or better by S&P (or its equivalent under any successor rating categories of S&P), BBB- or better by Kroll (or its equivalent under any successor rating categories of Kroll), Baa3 or better by Moody’s (or its equivalent under any successor rating categories of Moody’s), BBB (low) or better by Morningstar (or its equivalent under any successor rating categories of Morningstar) and BBB- or better by Egan-Jones (or its equivalent under any successor rating categories of Egan-Jones) (or, in each case, if such Rating Agency ceases to rate the Notes at the request of the Company or for any other reason, the 
7

        

equivalent investment grade credit rating from any Rating Agency selected by the Company as a replacement Rating Agency, if any).
“Kroll” means Kroll Bond Rating Agency, Inc., or any successor thereto.
“Moody’s” means Moody’s Investors Service, or any successor thereto. 
“Morningstar” means DBRS, Inc., or any successor thereto.
“Permitted Holders” means (i) the Company, (ii) one or more of the Company’s Controlled Subsidiaries and (iii) Prospect Capital Management or any affiliate of Prospect Capital Management that is organized under the laws of a jurisdiction located in the United States of America and in the business of managing or advising clients.
“Rating Agency” means:
(i)each of S&P, Kroll, Moody’s, Morningstar or Egan-Jones, if such Rating Agency is then rating the Notes at the request of the Company; and
(ii)if any of S&P, Kroll, Moody’s, Morningstar or Egan-Jones ceases to rate the Notes at the request of the Company or for any other reason, or, if then rating the Notes at the request of the Company, fails to make a rating of the Notes publicly available for reasons outside of the Company’s control, a “nationally recognized statistical rating organization” as defined in Section (3)(a)(62) of the Exchange Act selected by the Company as a replacement agency, if any, for S&P, Kroll, Moody’s, Morningstar or Egan-Jones, or all of them, as the case may be; provided, however, that for the avoidance of doubt the Company shall have no obligation to (a) have more than one Rating Agency rate the Notes at any time or (b) replace a Rating Agency if such Rating Agency ceases to rate the Notes at the request of the Company or for any other reason, or, if then rating the Notes at the request of the Company, fails to make a rating of the Notes publicly available for reasons outside of the Company’s control, in each case subject to the Company’s obligation to have at least one Rating Agency rate the Notes.
“S&P” means Standard & Poor’s Ratings Services, a division of McGraw-Hill, Inc., or any successor thereto.
“Voting Stock” as applied to stock of any person, means shares, interests, participations or other equivalents in the equity interest (however designated) in such person having ordinary voting power for the election of a majority of the directors (or the equivalent) of such person, other than shares, interests, participations or other equivalents having such power only by reason of the occurrence of a contingency.”
Section 1.08    No Sinking Fund.  The Notes shall not be subject to any sinking fund pursuant to Section 12.01 of the Base Indenture.
Section 1.09    Denominations.  The Notes shall be issuable in denominations of $1,000 and integral multiples of $1,000 in excess thereof.
8

        

Section 1.10    Consolidation, Merger, Sale, Lease or Conveyance.
(a)The Company will not, in a single transaction or a series of related transactions, consolidate with or merge with or into any other Person, or sell, convey, transfer or lease its property and assets substantially as an entirety to another Person, unless:
(i)either (a) the Company shall be the continuing corporation or (b) the resulting, surviving or transferee Person (if other than the Company) shall be a corporation or limited liability company organized and existing under the laws of the United States of America, any State thereof or the District of Columbia (the “Successor Company”), and such Successor Company shall expressly assume, by an indenture supplemental to this Indenture in a form reasonably satisfactory to the Trustee, executed and delivered to the Trustee, all the obligations of the Company under the Notes and this Indenture;
(ii)immediately after giving effect to such transaction, no Event of Default has occurred and is continuing; and
(iii)if so requested by the Trustee, the Company shall have delivered to the Trustee any Officers’ Certificate and Opinion of Counsel, each stating that such consolidation, merger, conveyance, transfer or lease and, if a supplemental indenture is required in connection with such transaction, such supplemental indenture, comply with this Section 1.10 and that all conditions precedent herein provided for relating to such transaction have been satisfied.
(b)In the event of any transaction described in and complying with the conditions listed in Section 1.10(a) in which the Company is not the continuing corporation, the Successor Company formed or remaining shall succeed, and be substituted for, and may exercise every right and power of, the Company, and the Company shall be discharged from its obligations, under the Notes and this Indenture.
Section 1.11    Additional Events of Default; Additional Interest; Waiver of Defaults.
(a)In addition to those matters set forth in Section 5.01 of the Base Indenture, an “Event of Default” with respect to the Notes shall also mean any of the following events:
(i)default in the payment of any Additional Interest (as defined below) in respect of any Notes when such interest becomes due and payable, and such default continues for 30 days;
(ii)failure by the Company to pay the repurchase price upon a Change of Control Repurchase Event and such failure continues for a period of five days;
(iii) a failure to pay principal when due (whether at stated maturity or otherwise) or an uncured Event of Default that results in the acceleration of maturity, of any indebtedness for borrowed money of the Company or any of its Significant Subsidiaries in an aggregate amount in excess of $100,000,000 (or its foreign currency equivalent), unless such 
9

        

indebtedness is discharged, or such acceleration is rescinded, stayed or annulled, within a period of 30 calendar days after written notice of such failure or uncured Default is given to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in aggregate principal amount of the Notes then Outstanding.  For purposes of this Supplemental Indenture, (1) “Significant Subsidiary” means any Subsidiary which is a “significant subsidiary” (within the meaning specified in Rule 1-02(w) of Regulation S-X, promulgated under the Securities Act of 1933, as amended) of the Company, excluding any Subsidiary of the Company which is (a) a non-recourse or limited recourse subsidiary, (b) a bankruptcy remote special purpose vehicle, or (c) that is not consolidated with the Company for purposes of GAAP and (2) “Subsidiary” means, with respect to any Person, any corporation or other entity of which a majority of (i) the voting power of the voting equity securities (which means equity securities having voting power for the election of directors, whether at all times or only so long as no senior class of security has such voting power by reason of any contingency) or (ii) the outstanding equity interests of which are owned, directly or indirectly, by such Person;
(iv) Default in the performance, or breach, of any covenant or warranty of the Company in this Indenture with respect to any Note (other than a covenant or warranty an Event of Default in whose performance or whose breach is elsewhere in the Base Indenture or this Section 1.11), and continuance of such Event of Default or breach for a period of 60 days after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of the Notes a written notice specifying such Event of Default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder; or
(v)the Company pursuant to or within the meaning of any Bankruptcy Law:
(1)commences a voluntary case,
(2)consents to the entry of an order for relief against it in an involuntary case,
(3)consents to the appointment of a Custodian of it or for all or substantially all of its property, or
(4)makes a general assignment for the benefit of its creditors;
(vi) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:
(1)is for relief against the Company in an involuntary case,
(2)appoints a Custodian of the Company, or for all or substantially all of either of its property, or
(3)orders the liquidation of the Company, 
10

        

and the continuance of any such order or decree remains unstayed and in effect for a period of 90 days.
(b)The Company shall be required to notify the Trustee promptly upon becoming aware of the occurrence of any Event of Default under this Indenture with respect to the Notes.  Notwithstanding anything to the contrary in this Indenture, the sole remedy for the failure by the Company to comply with Section 7.04 of the Base Indenture, and for any failure to comply with the requirements of Section 314(a)(1) of the Trust Indenture Act, if applicable (each, a “Filing Failure”), will, at the Company’s option, for the 365 days after the occurrence an Event of Default relating to such Filing Failure consist of the right to receive additional interest on the Notes (“Additional Interest”) at an annual rate equal to 0.50% of the principal amount of the Notes.  In the event the Company does not elect to pay the Additional Interest upon the occurrence of an Event of Default relating to a Filing Failure or such Filing Failure continues for more than 365 days after the occurrence of the Event of Default related thereto, the Notes will be subject to acceleration in accordance with Section 5.02 of the Base Indenture.  The Additional Interest will accrue on all Outstanding Notes from and including the date on which the Event of Default relating to Filing Failure first occurs to but not including the 365th day thereafter (or such earlier date on which the Filing Failure shall have been cured or waived).  On such 365th day (or such earlier date on which the Filing Failure shall have been cured or waived), the Additional Interest shall cease to accrue.  For purposes of the Indenture, the term “Interest” with respect to the Notes shall include Additional Interest, to the extent applicable.
(c)In the case of an Event of Default specified in clause (vi) or (vii) of Section 1.11(a), all Outstanding Notes will become due and payable immediately without further action or notice by the Trustee or any Holder.
(d)Notwithstanding the foregoing, if an Event of Default specified in clause (i) of Section 1.11(a) occurs resulting in a declaration of acceleration of the Notes, such declaration of acceleration shall be automatically annulled if such Event of Default triggering such declaration of acceleration pursuant to clause (iv) of Section 1.11(a) shall have been remedied or cured by the Company or any of its Subsidiaries or waived by the holders of the relevant indebtedness within 90 days of the declaration of acceleration with respect thereto and if (i) the annulment of the acceleration of the Notes would not conflict with any judgment or decree of a court of competent jurisdiction and (ii) all existing Events of Default, except nonpayment of principal or interest on the Notes that became due and payable solely because of the acceleration of the Notes, have been cured or waived.
(e)In addition to the Events of Default set forth as clauses (1) and (2) in Section 5.13 of the Base Indenture, with respect to the Notes, the following default shall be added as a non-waivable default in accordance with the terms of Section 5.13 of the Base Indenture:
(i)failure by the Company to pay the repurchase price on a Repayment Date for a Change of Control Repurchase Event.
11

        

Section 1.12    Supplemental Indentures and Amendments.
(a)In addition to those matters set forth in Section 9.01 of the Base Indenture, with respect to the Notes, without the consent of any Holder, the Company may enter into one or more supplemental indentures for the following purpose:
(i)to comply with Section 1.10 of this Supplemental Indenture, including without limitation, (1) to provide for the Company’s repurchase obligations in connection with a Change of Control Repurchase Event in the event of any reclassification of the Company’s common stock, merger or consolidation, or sale, conveyance, transfer or lease of the Company’s property and assets substantially as an entity and (2) to provide for the assumption of the Company’s obligations to the Holders of the Notes in the event of a merger or consolidation, or sale, conveyance, transfer or lease of the Company’s property and assets substantially as an entity.
(b)In addition to those matters set forth in Section 9.02 of the Base Indenture, with respect to the Notes, no supplemental indenture for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture which affects the Notes or of modifying in any manner the rights of the Holders of the Notes shall, without the consent of the Holder of each Note affected thereby:
(i)adversely affect any right of repayment at the option of the Holder of any Note pursuant to Section 1.10 of this Supplemental Indenture or impair the right to institute suit for the enforcement of any such payment on or after any applicable Repayment Date for a Change of Control Repurchase Event;
(ii)relieve the Company of its obligation to maintain an office or agency in the Borough of Manhattan, New York City; and
(iii)change the Company’s obligation to repurchase any Notes upon a Change of Control Repurchase Event in a manner adverse to the Holders after the occurrence of a Change of Control Repurchase Event.
(c)The Company will notify Holders of the Notes within a reasonable time of any amendment to the Indenture or any supplemental indenture entered into that affects the interests of the Holders of the Notes.  However, any failure by the Company to give such notice to all of the Holders, or any defect in the notice, will not impair or affect the validity of the modification or amendment.
ARTICLE II. 
AMENDMENTS
            Section 2.01    Notice of Redemption. The Indenture is hereby amended by deleting the first sentence of Section 11.04 of the Base Indenture in its entirety and replacing it with the following:
12

        

“Notice of redemption shall be given in the manner provided in Section 1.06, not less than 30 days nor more than 90 days prior to the Redemption Date, unless a shorter period is specified by the terms of such series established pursuant to Section 3.01, to each Holder of Securities to be redeemed, but failure to give such notice in the manner herein provided to the Holder of any Security designated for redemption as a whole or in part, or any defect in the notice to any such Holder, shall not affect the validity of the proceedings for the redemption of any other such Security or portion thereof.”
ARTICLE III
OTHER INDENTURE PROVISIONS OF GENERAL APPLICATION
Section 3.01    Definitions.  Except as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities under the Indenture, whether now or hereafter issued and Outstanding, Article One of the Base Indenture shall be amended by adding the following defined terms to Section 1.01 of the Base Indenture in appropriate alphabetical sequence, as follows:
“Exchange Act” means the Securities Exchange Act of 1934, as amended, and any statute successor thereto.
“GAAP” means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants, the opinions and pronouncements of the Public Company Accounting Oversight Board and the statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as have been approved by a significant segment of the accounting profession in the United States, which are in effect from time to time.
“Investment Company Act” means the Investment Company Act of 1940, as amended, and the rules, regulations and interpretations promulgated thereunder, to the extent applicable, and any statute successor thereto.
ARTICLE IV 
COVENANTS
Section 4.01    Company Reports.  Except as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities under the Indenture, whether now or hereafter issued and Outstanding, Section 7.04(1) of the Base Indenture shall be amended by deleting such section in its entirety and replacing such section as follows:
“The Company will:
13

        

(1)        file with the Trustee, within 30 days after the Company is required to file the same with the Commission, copies of the annual reports and of the information, documents, and other reports (or copies of such portions of any of the foregoing as the Commission may from time to time by rules and regulations prescribe) which the Company may be required to file with the Commission pursuant to Section 13 or Section 15(d) of the Exchange Act. If, at any time, the Company is not subject to the reporting requirements of Sections 13 or 15(d) of the Exchange Act, the Company agrees to furnish to the Holders of Notes and the Trustee for the period of time during which the Notes are Outstanding: (i) within 90 days after the end of the each fiscal year of the Company, audited annual consolidated financial statements of the Company and (ii) within 45 days after the end of each fiscal quarter of the Company (other than the Company’s fourth fiscal quarter), unaudited interim consolidated financial statements of the Company. All such financial statements shall be prepared, in all material respects, in accordance with GAAP. All required reports, information and documents referred to in this Section 7.04(1) shall be deemed to be delivered to the Trustee at the time such reports, information and documents are publicly filed with the Commission via the Commission’s EDGAR and/or IDEA filing system (or any successor system).
Section 4.02    Compliance with Investment Company Act.  Except as may be provided in a Future Supplemental Indenture, for the benefit of the Holders of the Notes but no other series of Securities under the Indenture, whether now or hereafter issued and Outstanding, Article Ten of the Base Indenture shall be amended by adding the following new Section 10.08 thereto, each as set forth below:
“Section 10.08            Section 18(a)(1)(A) of the Investment Company Act.
The Company hereby agrees that for the period of time during which Notes are Outstanding, the Company will not violate, whether or not it is subject to, Section 18(a)(1)(A) as modified by Section 61(a) of the Investment Company Act or any successor provisions thereto of the Investment Company Act.”
ARTICLE V
MISCELLANEOUS
Section 5.01    Governing Law.  This Supplemental Indenture and the Notes shall be governed by and construed in accordance with the laws of the State of New York, without regard to principles of conflicts of laws that would cause the application of laws of another jurisdiction.  This Supplemental Indenture is subject to the provisions of the Trust Indenture Act that are required to be part of the Indenture and shall, to the extent applicable, be governed by such provisions.
Section 5.02    Separability Clause.  In case any provision in this Supplemental Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.
14

        

Section 5.03    Counterparts.  This Supplemental Indenture may be executed in any number of counterparts, each of which will be an original, but such counterparts will together constitute but one and the same Supplemental Indenture.  The exchange of copies of this Supplemental Indenture and of signature pages by facsimile, .pdf transmission, email or other electronic means shall constitute effective execution and delivery of this Supplemental Indenture for all purposes.  Signatures of the parties hereto transmitted by facsimile, .pdf transmission, email or other electronic means shall be deemed to be their original signatures for all purposes.
Section 5.04    Ratification of Base Indenture.  The Base Indenture, as supplemented and amended by this Supplemental Indenture, is in all respects ratified and confirmed, and the Base Indenture and this Supplemental Indenture shall be read, taken and construed as one and the same instrument with respect to the Notes.  All provisions included in this Supplemental Indenture supersede any conflicting provisions included in the Base Indenture with respect to the Notes, unless not permitted by law.  The Trustee accepts the trusts created by the Indenture, as supplemented by this Supplemental Indenture, and agrees to perform the same upon the terms and conditions of the Indenture, as supplemented by this Supplemental Indenture.
Section 5.05    Effectiveness.  The provisions of this Supplemental Indenture shall become effective as of the date hereof.
Section 5.06 Article I Terms.  Notwithstanding anything else to the contrary herein, the terms and provisions of Article I of this Supplemental Indenture shall apply only to the Notes and shall not apply to any other series of Securities under the Indenture and this Supplemental Indenture shall not and does not otherwise affect, modify, alter, supplement or change the terms and provisions of any other series of Securities under the Indenture, whether now or hereafter issued and Outstanding.
Section 5.07    Recitals.  The recitals contained herein and in the Notes shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their correctness.  The Trustee makes no representations as to the validity or sufficiency of this Supplemental Indenture, the Notes or any Additional Notes, except that the Trustee represents that it is duly authorized to execute and deliver this Supplemental Indenture, authenticate the Notes and any Additional Notes and perform its obligations hereunder.  The Trustee shall not be accountable for the use or application by the Company of the Notes or any Additional Notes or the proceeds thereof.
15

        

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed as of the date first above written.
PROSPECT CAPITAL CORPORATION

By:    /s/ Kristin L. Van Dask
    Name:    Kristin L. Van Dask
    Title:    Chief Financial Officer and
        Chief Compliance Officer

U.S.  BANK NATIONAL ASSOCIATION,
As Trustee

By:    /s/ Beverly A. Freeney
    Name:    Beverly A. Freeney
    Title:    Vice President

        

EXHIBIT A

[Form of Global Note]

        

EXHIBIT A

[FORM OF GLOBAL NOTE]

THIS SECURITY IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY OR A NOMINEE THEREOF.  THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN THE DEPOSITORY TRUST COMPANY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT AND SUCH CERTIFICATE ISSUED IN EXCHANGE FOR THIS CERTIFICATE IS REGISTERED IN THE NAME OF CEDE & CO., OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL, AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

Prospect Capital Corporation

No.      $
    CUSIP No. 74348T AV4
    ISIN No. US74348TAV44

3.364% Notes due 2026

Prospect Capital Corporation, a corporation duly organized and existing under the laws of Maryland (herein called the “Company”, which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of three hundred twenty five million dollars (U.S.  $300,000,000) on November 15, 2026, and to pay interest thereon from May 27, 2021 or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually on May 15 and November 15 in each year, commencing November 15, 2021 at the rate of 3.364% per annum, until the principal hereof is paid or made available for payment.  The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Security is registered at the close of business on the Regular Record Date for such interest, which shall be May 1 and November 1 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date.  Any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in 
1

        

whose name this Security is registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided in said Indenture.  This Security may be issued as part of a series.
Payment of the principal of (and premium, if any) and any such interest on this Security will be made at the Corporate Trust Office of the Trustee in New York, New York in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that at the option of the Company payment of interest may be made by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register.
Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.
Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

2

        

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed by the undersigned officer.
PROSPECT CAPITAL CORPORATION

By:                        
    Name:
    Title:

Attest

By:                        
    Name:
    Title:

Dated:

3

        

TRUSTEE’S CERTIFICATE OF AUTHENTICATION:
This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.
U.S.  BANK NATIONAL ASSOCIATION,
as Trustee

By:                        
    Authorized Signatory

Dated:

4

        

Prospect Capital Corporation

3.364% Notes due 2026

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of February 16, 2012, as amended by that certain Agreement of Resignation, Appointment and Acceptance, dated March 12, 2012 (herein called the “Base Indenture”, which term shall have the meaning assigned to it in such instrument), between the Company and U.S.  Bank National Association, as Trustee by succession (herein called the “Trustee”, which term includes any successor trustee under the Base Indenture), and reference is hereby made to the Base Indenture for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee, and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered, as supplemented by the Supplemental Indenture, dated as of May 27, 2021 (the “Supplemental Indenture”, together with the Base Indenture collectively referred to herein as the “Indenture”).  In the event of any conflict between the Base Indenture and the Supplemental Indenture, the Supplemental Indenture shall govern and control.
This Security is one of the series designated on the face hereof, initially limited in aggregate principal amount to $300,000,000.  Under a Board Resolution, Officers’ Certificate pursuant to Board Resolutions or an indenture supplement, the Company may from time to time, without the consent of the Holders of Securities, issue additional Securities of this series (in any such case “Additional Securities”) having the same ranking and the same interest rate, maturity and other terms as the Securities.  Any Additional Securities and the existing Securities will constitute a single series under the Indenture and all references to the relevant Securities herein shall include the Additional Securities unless the context otherwise requires.  The aggregate amount of outstanding Securities represented hereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions.
The Securities will be redeemable, in whole or in part, at any time, or from time to time, at the option of the Company, at a Redemption Price equal to the greater of the following amounts, plus, in each case, accrued and unpaid interest to the Redemption Date:
(a)    100% of the principal amount of the Securities to be redeemed; or
(b)    the sum of the present values of the remaining scheduled payments of principal and interest (exclusive of accrued and unpaid interest to the Redemption Date) on the Securities to be redeemed, discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) using the applicable Treasury Rate plus 45 basis points; 
provided, however, that if the Company redeems any Securities on or after October 15, 2026, the Redemption Price for the Securities will be equal to 100% of the principal amount of the Securities to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the Redemption Date.
5

        

The calculation of Redemption Price as well as other redemption terms are described in Section 1.06 of the Supplemental Indenture.  

Holders will have the right to require the Company to repurchase their Securities upon the occurrence of a Change of Control Repurchase Event in the manner described in Section 1.07 of the Supplemental Indenture.
The Indenture contains provisions for defeasance at any time of the entire indebtedness of this Security or certain restrictive covenants and Events of Default with respect to this Security, in each case upon compliance with certain conditions set forth in the Indenture.
The Indenture provides that the Company may not, in a single transaction or a series of related transactions, consolidate with or merge with or into any other person or sell, convey, transfer or lease its property and assets substantially as an entirety to another person, unless certain specified conditions set forth in Section 1.10 of the Supplemental Indenture are satisfied.
If an Event of Default with respect to Securities of this series shall occur and be continuing, the principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture.  Section 1.11 of the Supplemental Indenture provides for the payment of additional interest upon the occurrence of certain Events of Default.
The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of not less than a majority in principal amount of the Securities at the time Outstanding of each series to be affected.  The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.
As provided in and subject to the provisions of the Indenture, the Holder of this Security shall not have the right to institute any proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless (i) such Holder shall have previously given the Trustee written notice of a continuing Event of Default with respect to the Securities of this series, (ii) the Holders of not less than 25% in principal amount of the Securities of this series at the time Outstanding shall have made written request to the Trustee to institute proceedings in respect of such Event of Default as Trustee, (iii) such Holder offered the Trustee indemnity satisfactory to the Trustee against the costs, expenses and liabilities to be incurred in compliance with such request, (iv) the Trustee shall not have received from the 
6

        

Holders of a majority in principal amount of Securities of this series at the time Outstanding a direction inconsistent with such request, and (v) for sixty (60) days after receipt of such notice, request and offer of indemnity, the Trustee shall have failed to institute any such proceeding.  The foregoing shall not apply to any suit instituted by the Holder of this Security for the enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective due dates expressed herein.
No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and any premium and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed.
As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable in the Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Company in any place where the principal of and any premium and interest on this Security are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees.
The Securities of this series are issuable only in registered form without coupons in denominations of $1,000 and any integral multiples of $1,000 in excess thereof.  As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series and of like tenor of a different authorized denomination, as requested by the Holder surrendering the same.
No service charge shall be made for any such registration of transfer or exchange, but the Company or Trustee may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.
Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.
All terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture.
The Indenture and this Security shall be governed by and construed in accordance with the laws of the State of New York, without regard to principles of conflicts of laws.

7Document

CERTAIN CONFIDENTIAL INFORMATION, IDENTIFIED BY BRACKETED ASTERISKS [***], HAS BEEN OMITTED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICALLY DISCLOSED.

INVESTMENT AGREEMENT
by and between
RUSSELL INVESTMENTS GROUP, LTD.
and
HAMILTON LANE ADVISORS, LLC

Dated as of March 29, 2021

TABLE OF CONTENTS
Page
						
	ARTICLE I

PURCHASE AND SALE

	Section 1.1    Issuance of Acquired Shares
	1

	Section 1.2    Closing
	1

	Section 1.3    Deliveries at Closing
	2

	ARTICLE II

REPRESENTATIONS AND WARRANTIES
REGARDING THE COMPANY GROUP

	Section 2.1    Organization
	3

	Section 2.2    The Acquired Shares
	3

	Section 2.3    Capital Structure; Subsidiaries
	3

	Section 2.4    Authority; Validity of Agreements
	4

	Section 2.5    Consents and Approvals
	4

	Section 2.6    No Conflicts
	4

	Section 2.7    Financial Statements
	5

	Section 2.8    Absence of Undisclosed Liabilities
	5

	Section 2.9    Absence of Certain Changes
	5

	Section 2.10    Proceedings
	5

	Section 2.11    Compliance with Law; Permits
	6

	Section 2.12    No Disqualifications
	6

	Section 2.13    Taxes
	7

	Section 2.14    Brokers and Finders
	7

	Section 2.15    No Other Representations and Warranties
	7

	ARTICLE III

REPRESENTATIONS AND WARRANTIES OF INVESTOR

	Section 3.1    Organization
	8

	Section 3.2    Authority; Validity of Agreements
	8

	Section 3.3    Consents and Approvals
	8

	Section 3.4    No Conflicts
	9

	Section 3.5    Legal Proceedings
	9

						
	Section 3.6    Brokers and Finders
	9

	Section 3.7    Purchase for Investment
	9

	Section 3.8    Independent Investigation
	10

	Section 3.9    No Other Representations and Warranties
	10

	ARTICLE IV

SURVIVAL; POST-CLOSING OBLIGATIONS

	Section 4.1    Survival of Representations and Warranties and Covenants
	11

	Section 4.2    Indemnification
	11

	Section 4.3    Claims Notice
	13

	Section 4.4    Exclusive Remedy
	14

	Section 4.5    Purchase Price Adjustment
	14

	Section 4.6    Tax Matters
	14

	ARTICLE V

	MISCELLANEOUS

	Section 5.1    Amendments; Extension; Waiver
	15

	Section 5.2    Entire Agreement
	15

	Section 5.3    Construction and Interpretation
	15

	Section 5.4    Severability
	16

	Section 5.5    Notices
	16

	Section 5.6    Binding Effect; Persons Benefiting; No Assignment
	17

	Section 5.7    Counterparts
	17

	Section 5.8    Dispute Resolution
	17

	Section 5.9    Specific Performance
	18

	Section 5.10    Expenses
	18

	Section 5.11    Announcements
	18

	Section 5.12    Governing Law
	19

	Section 5.13    Waiver of Jury Trial
	19

	Section 5.14    Consent to Jurisdiction
	19

	Section 5.15    No Third-Party Beneficiaries
	19

Annex A  Defined Terms

INVESTMENT AGREEMENT
This INVESTMENT AGREEMENT (this “Agreement”), dated as of March 29, 2021, is by and between Hamilton Lane Advisors, LLC, a Pennsylvania limited liability company (“Investor”), and Russell Investments Group, Ltd., a Cayman Islands exempted limited company (the “Company”). Investor and the Company are each referred to herein as a “Party” and collectively, the “Parties”. Capitalized terms used herein shall have the meanings given to such terms in Annex A of this Agreement.
W I T N E S S E T H :
WHEREAS, Investor desires to purchase from the Company, and the Company desires to issue and sell to Investor, [***] ordinary shares, par value of $0.001 each, of the Company (the “Acquired Shares”) on the terms and subject to the conditions contained in this Agreement (the “Share Purchase”); and
WHEREAS, concurrently with the execution and delivery of this Agreement and the consummation of the Share Purchase hereunder, (a) Investor and the Company are executing and delivering (a) a joinder agreement to the Shareholders Agreement, dated as of June 1, 2016, of the Company (the “Shareholders Agreement”), a copy of which is attached hereto as Exhibit A, pursuant to which joinder agreement Investor is becoming party to the Shareholders Agreement as an Other Holder (as defined therein) thereunder (the “SHA Joinder Agreement”), and (b) Investor and an Affiliate of the Company are entering into the Strategic Agreement, dated as of the date hereof  (the “Strategic Agreement”).
NOW THEREFORE, in consideration of the mutual covenants, representations, warranties and agreements contained herein, and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be bound hereby, the Parties hereby agree as follows:
ARTICLE I
PURCHASE AND SALE

Section 1.1     Issuance of Acquired Shares. Upon the terms and subject to the conditions set forth in this Agreement, concurrently with the execution and delivery of this Agreement, at the Closing, the Company hereby issues, sells, assigns, conveys, transfers and delivers to Investor, and Investor hereby purchases and acquires from the Company, all right, title and interest in and to the Acquired Shares, free and clear of all Liens (other than Liens pursuant to any applicable Securities Laws restrictions, this Agreement and the applicable Governing Documents of the Company, including the Shareholders Agreement), for a purchase price of $90,000,000 (the “Purchase Price”).

Section 1.2    Closing. The closing of the Share Purchase hereunder (the “Closing”) shall take place on the date hereof (the “Closing Date”), concurrently with the 
1

execution and delivery of this Agreement and via the remote exchange of documents on the date hereof.

Section 1.3    Deliveries at Closing. At the Closing:
(a)    Investor shall deliver, or cause to be delivered, to the Company:
(i)    by Wire Transfer to the account of the Company, the Purchase Price; 
(ii)    the SHA Joinder Agreement, duly executed by Investor; and
(iii)    the Strategic Agreement, duly executed by Investor; 
and
(b)    The Company shall deliver, or cause to be delivered, to Investor:
(i)    evidence reasonably satisfactory to Investor that the Acquired Shares have been validly issued to Investor;
(ii)    the SHA Joinder Agreement, duly executed by the Company; and
(iii)    the Strategic Agreement, duly executed by the applicable Affiliate of the Company.

ARTICLE II

REPRESENTATIONS AND WARRANTIES
REGARDING THE COMPANY GROUP
The Company hereby represents and warrants to Investor as of the date hereof as follows:
Section 2.1    Organization. Each member of the Company Group is duly organized or formed, validly existing and in good standing (if applicable) under the Applicable Laws of the jurisdiction of its incorporation or formation. Each member of the Company Group has the requisite corporate or other legal power and authority to carry on its business and to own, lease and operate all of its properties and assets, as currently conducted, owned, leased or operated. Each member of the Company Group is duly qualified to do business in each jurisdiction in which the nature of its businesses or the character or location of the properties and assets owned, leased or operated by it makes such qualifications necessary other than any failure to be so qualified that, individually and in the aggregate, has not, and is not reasonably expected to have a Company Material Adverse Effect. Each Governing Document of the Company Group 
2

is in full force and effect and there are no material violations thereof.  A copy of the Shareholders Agreement as in effect as of the date hereof is attached hereto as Exhibit A.

Section 2.2    The Acquired Shares. The Acquired Shares have been duly authorized and, when issued in accordance with the terms of this Agreement, will be validly issued, fully paid and non-assessable, and of the same class of Company Shares as the other Company Shares that are issued and outstanding as of the date of this Agreement. Upon payment of the Purchase Price for the Acquired Shares at the Closing, Investor will acquire good and valid title to the Acquired Shares, free and clear of any Liens (other than Liens pursuant to any applicable Securities Law restrictions, this Agreement and the applicable Governing Documents of the Company, including the Shareholders Agreement). Once issued, the Acquired Shares will have been issued in compliance with all Securities Laws and will not have been issued in violation of any preemptive rights or rights of first offer or refusal under the Shareholders Agreement or otherwise under the Governing Documents of the Company.

Section 2.3    Capital Structure; Subsidiaries.
(a)    As of the date of this Agreement, the Company’s share capital is $50,000 divided into 50,000,000 ordinary shares of a par value of $0.001 each (“Company Shares”), of which (i) as of immediately prior to the Closing, without giving effect to the transactions contemplated by this Agreement (including the issuance of the Acquired Shares in the Share Purchase), [***] Company Shares are issued and outstanding, and (ii) as of immediately following the Closing, after giving effect to the issuance of the Acquired Shares in the Share Purchase, 28,143,115 Company Shares will be issued and outstanding. As of the date of this Agreement, 2,103,678 Company Shares are issuable under options. As of the date of this Agreement, 972,015 Company Shares are reserved for issuance, either upon the exercise of options that have not yet been granted, or as restricted shares that have not yet been issued. There are no other equity securities (including securities convertible to or exercisable or exchangeable for Capital Stock) of the Company that are outstanding as of the date of this Agreement. All issued and outstanding shares of the Company are duly authorized, validly issued, fully paid and nonassessable, and have been issued in compliance with all applicable Securities Laws and not in violation of any preemptive rights or rights of first offer or refusal under the Shareholders Agreement or otherwise under the Governing Documents of the Company.
(b)    Except as provided in the Governing Documents of the Company Group and in the equity plans of the Company, there are no outstanding securities, options, warrants, calls, rights, conversion rights, preemptive rights, rights of first refusal, redemption rights, repurchase rights, plans, “tag-along” or “drag-along” rights or other commitments, agreements, arrangements or undertakings (“Equity Rights”) (i) obligating any member of the Company Group or any equity owner thereof to issue, deliver, redeem, purchase or sell, or cause to be issued, delivered, redeemed, purchased or sold, any equity interest in any member of the Company Group or any securities or obligations convertible or exchangeable into or exercisable for an equity interest in any member of the Company Group, (ii) giving any Person a right to subscribe for or acquire an equity interest in any member of the Company Group or (iii) obligating any member of the Company Group to issue, grant, adopt or enter into any such 
3

Equity Right. No Person (other than the owners of the Capital Stock of the members of the Company Group) has an ownership interest or other equity interest representing a right to participate in the revenues or profits of any of the members of the Company Group.

Section 2.4    Authority; Validity of Agreements. The Company has full power and authority to execute and deliver this Agreement and the SHA Joinder Agreement, to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The execution, delivery and performance by the Company of each of this Agreement and the SHA Joinder Agreement have been duly and validly authorized and approved by all necessary corporate or other legal action of the Company, including any necessary approval or consent of its board of directors. This Agreement and the SHA Joinder Agreement have been duly and validly executed and delivered by the Company, and (assuming due authorization, execution and delivery of this Agreement and the SHA Joinder Agreement by the other parties thereto) this Agreement and the Shareholders Agreement constitute valid and binding obligations of the Company, enforceable against the Company in accordance with their terms, except insofar as (a) the enforceability hereof or thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar Applicable Laws affecting the enforcement of creditors’ rights generally and (b) the availability of equitable remedies may be limited by equitable principles of general applicability.

Section 2.5    Consents and Approvals. No member of the Company Group is required to obtain any Consent in connection with the execution and delivery by the Company of this Agreement or the SHA Joinder Agreement or the performance of this Agreement or the Shareholders Agreement or the consummation of the transactions contemplated hereby, except, in each case, for such Consents (i) as may be required under applicable Securities Laws in connection with the Share Purchase by Investor or (ii) the absence of which would not, individually or in the aggregate, have or reasonably be expected to have a Company Material Adverse Effect.

Section 2.6    No Conflicts. Neither the execution, delivery and performance of this Agreement or the execution and delivery of the SHA Joinder Agreement by the Company, nor the consummation by the Company of the transactions contemplated hereby and thereby, will, with or without the giving of notice, the termination of any grace period or both: (a) violate, conflict with, or result in a breach or default under any provision of the Governing Documents of any member of the Company Group; (b) violate any Applicable Law in any material respect; (c) result in a violation or breach by any member of the Company Group of, conflict with, or constitute (with or without consent, due notice or lapse of time or both) a default (or give rise to any right of termination, cancellation, redemption, payment or acceleration) under any Contract to which any member of the Company Group is a party or by which any member of the Company Group or any of their respective properties or assets are bound; or (d) result in the creation of any Lien (other than any Permitted Lien) upon any of the properties or assets of any member of the Company Group, except, in the case of clauses (c) and (d) of this Section 2.6, for any violation, breach, conflict, default or right of termination, cancellation, redemption, payment, 
4

Lien or acceleration that would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect.

Section 2.7    Financial Statements. The Company has delivered to Investor prior to the date hereof true, correct and complete copies of : (a) the audited consolidated balance sheets of the Company and its subsidiaries at each of December 31, 2019 and December 31, 2018, and audited consolidated statements of operations and comprehensive income and cash flows of the Company and its subsidiaries for each of the fiscal years then ended (including any notes thereto), and (b) an unaudited consolidated balance sheet of the Company and its subsidiaries at December 31, 2020 (the “Company Balance Sheet”), and unaudited consolidated statements of operations and comprehensive income and cash flows of the Company and its subsidiaries for the fiscal year then ended (including any notes thereto). Such financial statements have been prepared in accordance with GAAP, applied consistently during the periods covered thereby, and present fairly in all material respects the financial condition of the Company and its subsidiaries as at the dates of said statements and the results of their operations and cash flows for the periods covered thereby. Such financial statements are based on the books and records of the Company Group.  The facilities for indebtedness for borrowed money that are outstanding or available to be drawn upon by any member of the Company Group are described in note 6 to the consolidated financial statements of the Company Group for fiscal year 2020.

Section 2.8    Absence of Undisclosed Liabilities. No member of the Company Group has or is subject to any claims, liabilities or obligations of any nature (whether known, unknown, absolute, accrued, contingent or otherwise) of the type required by GAAP to be reserved in the Company Balance Sheet, except (i) liabilities contemplated by or in connection with this Agreement or the transactions contemplated hereby, (ii) as and to the extent disclosed or reserved against in the Company Balance Sheet, (iii) liabilities incurred since December 31, 2020 in the ordinary course of business consistent with past practice (none of which is a liability for breach of Contract) and (iv) liabilities that are not, individually or in the aggregate, material.

Section 2.9    Absence of Certain Changes. Since December 31, 2020, (a) each member of the Company Group has conducted its business in the ordinary course consistent with past practice (other than with respect to actions taken in response to any Contagion Event, (including any Contagion Measure)) and (b) there have not occurred any event or events that, individually or in the aggregate, have had or would reasonably be expected to have a Company Material Adverse Effect.  

Section 2.10    Proceedings. Except as would not reasonably be expected to have a Company Material Adverse Effect, since December 31, 2018, there have been no Proceedings or, to the Knowledge of the Company, any threatened Proceedings including any member of the Company Group or, to the extent related to the business of the Company Group, any current or former owner, director, manager, officer or employee of the Company Group.  There is no pending or, to the Knowledge of the Company, threatened Proceeding including any member of the Company Group that, individually or in the aggregate, would reasonably be expected to have a Company Material Adverse Effect. No member of the Company Group is subject to any outstanding or unsatisfied Orders (excluding customary confidentiality and other administrative 
5

obligations) that, individually or in the aggregate, would reasonably be expected to have a Company Material Adverse Effect.

Section 2.11    Compliance with Law; Permits.

(a)    Except as would not reasonably be expected to have a Company Material Adverse Effect, since December 31, 2018, (i) each member of the Company Group and, to the extent related to the business of the Company Group, each officer and employee of the Company Group, has been in compliance with all Applicable Laws and (ii) no member of the Company Group nor, to the extent related to the business of the Company Group, officer or employee of the Company Group has received any written (or, to the Knowledge of the Company, oral) notice asserting any violation by any member of the Company Group or by any such Person of any Applicable Law.
(b)    Except as would not reasonably be expected to have a Company Material Adverse Effect, (i) since December 31, 2018, each member of the Company Group and, to the extent related to the business of the Company Group, each employee of the Company Group has held all licenses, registrations, franchises, permits, orders, approvals and authorizations (collectively, “Permits”) that are required by it in order to permit it to own or lease its properties and assets and to conduct its business under and pursuant to all Applicable Laws and (ii) all such Permits are in full force and effect and are not subject to any suspension, cancellation, modification or revocation or any Proceedings related thereto, and, to the Knowledge of the Company, no such suspension, cancellation, modification or revocation or Proceeding is threatened.
(c)    Except as would not reasonably be expected to have a Company Material Adverse Effect, since December 31, 2018, each member of the Company Group has filed all registrations, reports, notices and other material filings required to be filed by such member (including Form ADV) with any Governmental Authority, including all amendments or supplements to any of the above (the “Filings”).

Section 2.12    No Disqualifications. No member of the Company Group or any “affiliated person” (as defined in Section 2(a)(3) of the Investment Company Act) of any member of the Company Group is ineligible or disqualified pursuant to Section 9(a) or 9(b) of the Investment Company Act to serve as an investment adviser (or in any similar capacity) to an investment company registered or required to be registered under the Investment Company Act, nor is there any Proceeding pending or, to the Knowledge of the Company, threatened by any Governmental Authority, which could result in the ineligibility or disqualification of any member of the Company Group or any “affiliated person” (as defined in Section 2(a)(3) of the Investment Company Act) of a member of the Company Group to serve in any such capacities.  No member of the Company Group or, to the Knowledge of the Company, any “person associated with” (as defined in Section 202(a)(17) of the Investment Advisers Act) a member of the Company Group is ineligible or disqualified pursuant to Section 203(e) or 203(f) of the Investment Advisers Act to serve as an investment adviser or a “person associated with an investment adviser” (as defined in Section 202(a)(17) of the Investment Advisers Act), nor is there any Proceeding pending or, to 
6

the Knowledge of the Company, threatened by any Governmental Authority, which could result in the ineligibility or disqualification of any member of the Company Group or, to the Knowledge of the Company, any “person associated with” (as defined in Section 202(a)(17) of the Investment Advisers Act) a member of the Company Group to serve in any such capacities.

Section 2.13    Taxes.
(a)    Except as would not reasonably be expected to have a Company Material Adverse Effect, each member of the Company Group has (i) duly and timely filed with the appropriate Governmental Authority all Tax Returns required to be filed by it, and all such Tax Returns are true, correct and complete in all material respects and (ii) timely paid in full all Taxes required to be paid by it or claimed to be due by any Governmental Authority. 
(b)    Except as would not reasonably be expected to have a Company Material Adverse Effect, (i) no federal, state, local or foreign audits, actions, suits, proceedings, investigations, claims, inquiries or administrative or other proceedings have formally commenced or are presently pending with regard to any Taxes or Tax Returns of, or including any member of, the Company Group, and none of the members of the Company Group has received notification that such an audit action, suit, proceeding, investigation, claim, inquiry or administrative or other proceeding is pending or threatened with respect to any Taxes owed by any member of the Company Group or any Tax Return filed by or with respect to any member of the Company Group and (ii) none of the members of the Company Group has received notice of a deficiency or material adjustment for any Tax owed by any member of the Company Group that has not been paid in full.  
(c)    The Company is, and, for all taxable periods following the purchase of the Acquired Shares hereunder, will continue to be, treated as a corporation for U.S. federal income tax purposes and shall make no election nor take any position contrary to such treatment on any Tax Return or in any audit action, suit, proceeding, investigation, claim, inquiry or administrative or other proceeding in respect of Taxes.  The Company is not, and during the applicable period specified in Section 897(c)(1)(A)(ii) of the Code has not been, a United States real property holding corporation within the meaning of Section 897(c)(2) of the Code.
(d)    Neither the Company nor any member of the Company Group is or has been a party to any “reportable transaction,” as defined in Section 6707A(c)(1) of the Code and Treasury Regulation §1.6011-4(b).

Section 2.14    Brokers and Finders.  No member of the Company Group has incurred, become liable for or otherwise entered into any contract or agreement with respect to any broker’s commission, finder’s fee or similar payment relating to or in connection with this Agreement or the transactions contemplated hereby.

Section 2.15    No Other Representations and Warranties. Except for the representations and warranties contained in this Agreement or the Shareholders Agreement, no member of the Company Group nor any representative thereof has made or makes any other 
7

express or implied representation or warranty, either written or oral, on behalf of any member of the Company Group, including any representation or warranty as to the accuracy or completeness of any information regarding the business of the members of the Company Group furnished or made available to Investor and its representatives (including any information, documents or material made available to Investor in any data room, management presentations or in any other form in expectation of the transactions contemplated hereby) or as to the future revenue, profitability or success of the members of the Company Group, or any representation or warranty arising from statute or otherwise in Applicable Law. Except for the representations and warranties contained in this Agreement or the Shareholders Agreement, the Company disclaims, on behalf of itself, the members of the Company Group and their Affiliates and representatives and any other Person any other express or implied representation or warranty, either written or oral, on behalf of any member of the Company Group, including any representation or warranty as to the accuracy or completeness of any information regarding the business of the Company Group furnished or made available to Investor and its representatives (including any information, documents or material made available to Investor in any data room, management presentations or in any other form in expectation of the transactions contemplated hereby) or as to the future revenue, profitability or success of the members of the Company Group, or any representation or warranty arising from statute or otherwise in Applicable Law. Nothing in this Section 2.15 is intended to preclude any claim for Fraud.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF INVESTOR

Investor hereby represents and warrants to the Company as of the date hereof as follows:
Section 3.1    Organization. Investor is a limited liability company duly formed, validly existing and in good standing under the Applicable Laws of the Commonwealth of Pennsylvania. 

Section 3.2    Authority; Validity of Agreements. Investor has full power and authority to execute and deliver this Agreement and the SHA Joinder Agreement, to perform its obligations hereunder and under the Shareholders Agreement and to consummate the transactions contemplated hereby. The execution, delivery and performance by Investor of each of this Agreement and the SHA Joinder Agreement have been, and the consummation by Investor of the transactions contemplated hereby has been, duly and validly authorized and approved by all necessary action of Investor, including any necessary approval or consent of its governing bodies. This Agreement and the SHA Joinder Agreement have been duly and validly executed and delivered by Investor and (assuming due authorization, execution and delivery by the Company and the other parties thereto of this Agreement and the SHA Joinder Agreement) this Agreement and the Shareholders Agreement constitute the valid and binding obligation of Investor, enforceable against Investor in accordance with its terms, except insofar as (a) the enforceability hereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar Applicable Laws affecting the enforcement of creditors’ rights generally and (b) the availability of equitable remedies may be limited by equitable principles of general applicability.

8

Section 3.3    Consents and Approvals. Except for Consents the failure of which to obtain would not reasonably be expected to prevent, impair or delay the consummation of the transactions contemplated hereby, neither Investor nor any of its Affiliates is required to obtain the Consent of any Governmental Authority in connection with the execution and delivery by Investor of this Agreement and the SHA Joinder Agreement or the performance of this Agreement and the Shareholders Agreement or the consummation of the transactions contemplated hereby.  

Section 3.4    No Conflicts. Neither the execution, delivery and performance of this Agreement or the execution and delivery of the SHA Joinder Agreement, nor the consummation by Investor of the transactions contemplated hereby, will, with or without the giving of notice, the termination of any grace period or both: (a) violate, conflict with, or result in a breach or default under any material provision of the Governing Documents of Investor; (b) violate any Applicable Law in any material respect; (c) result in a violation or breach by Investor of, or conflict with or constitute (with or without consent, due notice or lapse of time or both) a default (or give rise to any right of termination, cancellation, redemption, payment or acceleration) under, any Contract to which Investor is a party, or by which Investor or any of its properties or assets are bound; or (d) result in the creation of any Lien (other than any Permitted Lien) (or have such result upon notice or lapse of time, or both) upon any of the properties or assets of Investor under any of the terms, conditions or provisions of any Contract, except for, in the case of clauses (c) and (d) of this Section 3.4, any violation, breach, conflict, default or right of termination, cancellation, redemption, payment, Lien or acceleration that would not, individually or in the aggregate, reasonably be expected to prevent or materially delay the ability of Investor to perform its obligations hereunder or thereunder.

Section 3.5    Legal Proceedings. There is no Proceeding pending or, to the Knowledge of Investor, threatened, against Investor that, individually or in the aggregate, would reasonably be expected to prevent or materially impair or delay Investor’s ability to promptly perform its obligations hereunder or under the Shareholders Agreement.

Section 3.6    Brokers and Finders. No broker, finder or similar intermediary has acted for or on behalf of, or is entitled to any broker’s, finder’s or similar fee or other commission from Investor or any of its Affiliates in connection with this Agreement or the transactions contemplated hereby.

Section 3.7    Purchase for Investment. Investor has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of its purchase of the Acquired Shares. Investor represents and warrants that it is an “accredited investor” within the meaning of Rule 501 under the Securities Act. Investor confirms that the Company has provided Investor with the opportunity to ask questions of the Company and its officers and employees, and to acquire additional information about the business and financial condition of the Company Group. Investor is acquiring the Acquired Shares for investment and not with a view toward or for sale in connection with any distribution thereof in violation of any applicable Securities Law, or with any present intention of distributing or selling such shares in violation of any applicable Securities Law. Investor understands and agrees that the Acquired 

Shares may not be sold, transferred, offered for sale, pledged, hypothecated or otherwise disposed of without registration under the Securities Act, except pursuant to an exemption from such registration available under the Securities Act, and without compliance with Securities Laws and the Shareholders Agreement, in each case, to the extent applicable.

Section 3.8    Independent Investigation. Investor has conducted its own independent investigation, review, and analysis of the business of the members of the Company Group, results of operations, prospects, and condition (financial or otherwise) of the members of the Company Group, and acknowledges that it has been provided access to the personnel, properties, assets, premises, books and records, and other documents and data of the members of the Company Group for such purpose as it has requested. Investor acknowledges and agrees that: (a) in making its decision to enter into this Agreement and to consummate the transactions contemplated hereby, Investor has relied solely upon its own investigation and the representations and warranties regarding the Company Group set forth in this Agreement and the Shareholders Agreement, and has not relied on any other express or implied representation or warranty, either written or oral, on behalf of any member of the Company Group, including any representation or warranty as to the accuracy or completeness of any information regarding the Company Group’s business furnished or made available to Investor and its representatives (including any information, documents or material made available to Investor in any data room, management presentations or in any other form in expectation of the transactions contemplated hereby) or as to the future revenue, profitability or success of the Company Group, or any representation or warranty arising from statute or otherwise in Applicable Law and (b) neither the Company Group nor any representative thereof has made any representation or warranty as to the Company Group, the Company Group’s business or this Agreement, except as expressly set forth in this Agreement and the Shareholders Agreement. Nothing in this Section 3.8 is intended to preclude any claim for Fraud.

Section 3.9    No Other Representations and Warranties. Except for the representations and warranties contained in this Agreement or the Shareholders Agreement, neither Investor nor any other Person has made or makes any other express or implied representation or warranty, either written or oral, on behalf of Investor, including any representation or warranty as to the accuracy or completeness of any information regarding the business of Investor furnished or made available to the Company Group and its representatives (including any information, documents or material made available to the Company Group in any data room, management presentations or in any other form in expectation of the transactions contemplated hereby) or as to the future revenue, profitability or success of Investor or any representation or warranty arising from statute or otherwise in Applicable Law. Except for the representations and warranties contained in this Agreement or the Shareholders Agreement, Investor disclaims, on behalf of itself and its Affiliates and representatives and any other Person any other express or implied representation or warranty, either written or oral, on behalf of Investor, including any representation or warranty as to the accuracy or completeness of any information regarding the business of Investor furnished or made available to the Company Group and its representatives (including any information, documents or material made available to the Company Group in any data room, management presentations or in any other form in expectation of the transactions contemplated hereby) or as to the future revenue, profitability or 
10

success of Investor, or any representation or warranty arising from statute or otherwise in Applicable Law. Nothing in this Section 3.9 is intended to preclude any claim for Fraud.

ARTICLE IV

SURVIVAL; POST-CLOSING OBLIGATIONS

Section 4.1    Survival of Representations and Warranties and Covenants. All of the representations and warranties of the Parties contained in this Agreement shall survive the Closing hereunder for a period of 18 months following the Closing Date, other than (a) the Company Fundamental Representations (other than Section 2.13) and Investor Fundamental Representations, which shall survive for five years following the Closing Date, and (b) the representations in Section 2.13, which shall survive for thirty (30) days following the expiration of the applicable statute of limitations.  Each covenant or other agreement herein that by its terms is to be performed at or prior to the Closing shall survive the Closing hereunder until the date that is one year following the Closing Date, and each covenant or other agreement herein that by its terms is to be performed after the Closing shall survive the Closing hereunder until performed or until such covenant or other agreement expires in accordance with its terms.  If written notice of a claim has been given in the manner required by this Article IV prior to the expiration of the applicable representations and warranties by the Party seeking indemnification for such claim, then the relevant representations and warranties of the other Party shall survive as to such claim until such claim has been finally resolved pursuant to this Article IV.

Section 4.2    Indemnification.
(a)    Subject to the other provisions of this Article IV, from and after the date hereof, the Company shall, without duplication, indemnify, defend and hold harmless Investor and its respective Affiliates, their respective predecessors, successors and permitted assigns, and their respective stockholders, employees, officers, partners, members, trustees, directors and agents (the “Investor Indemnitees”) from and against any Losses that any of them may suffer or incur arising out of or resulting from: (i) any inaccuracy in or breach of any representation or warranty in Article II (disregarding any qualifications as to materiality or Company Material Adverse Effect therein) or (ii) any breach or nonperformance of any of the covenants or other agreements made and to be performed by the Company in this Agreement.
(b)    Subject to the other provisions of this Article IV, from and after the date hereof, Investor shall, without duplication, indemnify, defend and hold harmless the Company Group and their respective shareholders, employees, officers, partners, members, trustees, directors and agents (the “Company Indemnitees”) from and against any Losses that any of them may suffer or incur arising out of or resulting from: (i) any inaccuracy in or breach of any representation or warranty in Article III (disregarding any qualifications as to materiality therein) or (ii) any breach or nonperformance of any of the covenants or other agreements made and to be performed by Investor in this Agreement.
(c)    Notwithstanding Sections 4.2(a), and (b) above:

(i)    (A) the Company shall not be liable for any Losses pursuant to Section 4.2(a)(i) (other than in respect of any failure of the Company Fundamental Representations to be true and correct) unless and until the aggregate amount of indemnifiable Losses which may be recovered pursuant to Section 4.2(a)(i) (in each case other than in respect of any failure of the Company Fundamental Representations to be true and correct) equals or exceeds $900,000 (the “Deductible”), whereupon the Company shall be liable for and shall pay all Losses in excess of the Deductible, and (B) the maximum amount of indemnifiable Losses that may be recovered from the Company arising out of or resulting from the causes set forth in Section 4.2(a)(i) (in each case other than in respect of any failure of the Company Fundamental Representations to be true and correct), shall be an amount equal to $9,000,000 (the “Cap”).
(ii)    (A) Investor shall not be liable for any Losses pursuant to Section 4.2(b)(i) (other than in respect of any failure of the Investor Fundamental Representations to be true and correct), unless and until the aggregate amount of indemnifiable Losses which may be recovered pursuant to Section 4.2(b)(i) (other than in respect of any failure of the Investor Fundamental Representations to be true and correct) equals or exceeds the Deductible, whereupon Investor shall be liable for and shall pay all Losses in excess of the Deductible, and (B) the maximum amount of indemnifiable Losses which may be recovered from Investor arising out of or resulting from the causes set forth in Section 4.2(b)(i) (other than in respect of any failure of the Investor Fundamental Representations to be true and correct), shall be an amount equal to the Cap.
(iii)    The amount of any Losses subject to indemnification under this Section 4.2 shall be net of any insurance proceeds actually recovered by the applicable Indemnified Party for such Losses net of all reasonable costs of collection and any resulting increase in insurance premiums incurred as a result of seeking recovery for such amounts.  In the event that an insurance recovery is made by an Indemnified Party with respect to any Losses for which such Indemnified Party has been indemnified hereunder and such insurance recovery would result in duplicative recovery by such indemnitee, then a refund equal to the aggregate amount of the insurance recovery shall be made promptly by such Indemnified Party to the applicable indemnitor, net of all reasonable and documented costs of collection and any resulting increase in insurance premiums incurred as a result of seeking recovery for such amounts.
(iv)    Notwithstanding anything to the contrary set forth herein, no Indemnifying Party shall be liable for special, incidental, exemplary, consequential or punitive damages (except to the extent that any such damages were reasonably foreseeable or have been paid to a third party other than an Indemnified Party).
(v)    Any Losses for which an Indemnified Party is entitled to indemnification pursuant to this Section 4.2 shall be determined without (A) duplication of recovery by reason of the state of the facts giving rise to such Losses constituting any inaccuracy in or breach of any of more than one representation, warranty, covenant, agreement or obligation under this Agreement and (B) regard for any qualifications as to materiality or Company Material Adverse Effect.

Section 4.3    Claims Notice
(a)    Promptly after the Person seeking indemnification pursuant to Section 4.2 (the “Indemnified Party”) has knowledge of any event or circumstance, including any written claim by a third party, that would reasonably be expected to give rise to indemnification under this Article IV (a “Third-Party Claim”), the Indemnified Party shall deliver to the Person from which indemnification is sought (the “Indemnifying Party”) a notice (a “Claim Notice”) setting forth in reasonable detail a description of the matter giving rise to indemnification hereunder, including, if known, the anticipated Losses (it being understood that any estimate of such Losses if provided shall not be conclusive of the final amount with respect to any such Losses); provided, however, that any failure or delay by the Indemnified Party in delivering a Claim Notice to the Indemnifying Party shall not affect the Indemnified Party’s right to indemnification under this Article IV, except to the extent the Indemnifying Party has been prejudiced by such failure or delay.
(b)    The following provisions shall apply to any Third-Party Claim:
(i)    The Company shall have the right to control the defense, prosecution and resolution of, at the expense of the Indemnifying Party, any Third-Party Claim brought against any member of the Company Group (the Company is referred to herein as the “Controlling Party” and the other Party is referred to herein as the “Non-Controlling Party”). The Non-Controlling Party shall cooperate with and make available to the Controlling Party such assistance and materials as may be reasonably requested by the Controlling Party (at the expense of the Indemnifying Party) in any Third-Party Claim. The Indemnified Party and Indemnifying Party shall each have the right to employ separate counsel in any Third-Party Claim and to participate in (but not control) the defense thereof either (I) at its own expense or (II) at the Indemnifying Party’s cost and expense (so long as such fees are reasonable and such counsel is approved by the Indemnifying Party not to be unreasonably withheld or delayed) if (1) in the reasonable opinion of counsel to the Indemnified Party, a conflict of interest or potential conflict exists between the Indemnified Party and the Indemnifying Party under applicable standards of professional conduct or (2) one or more defenses are available to the Indemnified Party that are not available to the Indemnifying Party (provided that, in the case of clauses (1) or (2), the Indemnifying Party shall not be liable for the fees and expenses of more than one firm of counsel for all Indemnified Parties, other than local counsel, in any action or claim or group of related actions or claims). The Controlling Party shall not admit any liability with respect to, or settle, compromise or discharge, a Third-Party Claim without the prior written consent of the Indemnified Party, unless such admission, settlement, compromise or discharge (A) obligates the Indemnifying Party to pay the full amount of the liability in connection with such Third-Party Claim, (B) releases the Indemnified Party completely in connection with such Third-Party Claim, (C) does not contain any admission of wrongdoing or misconduct by the Indemnified Party and (D) does not involve any injunction or other equitable relief or relief for other than money damages against the Indemnified Party.

(ii)    In the event the Company does not agree or assume the defense of the Third-Party Claim via a written notice delivered to the Indemnifying Party and the Indemnified Party within fifteen (15) days of the receipt of the Claim Notice, the Indemnified Party shall have the right to conduct a defense against such Third-Party Claim at the expense of the Indemnifying Party and shall have the right to settle and compromise such Third-Party Claim if it acts reasonably and in good faith upon ten (10) days’ notice to, and with the consent of, the Indemnifying Party (which consent shall not be unreasonably withheld or delayed).
(iii)    After any such claim has been filed or initiated, each Party shall make available to the other Parties and their attorneys and accountants all pertinent information under its control relating to such claim which is made available under the terms of a confidentiality agreement or similar protective measures, and the Parties agree to render to each other such assistance as they may reasonably require of each other in order to facilitate the proper and adequate defense of any such claim. 

Section 4.4    Exclusive Remedy. Following the Closing, this Article IV shall provide the sole and exclusive monetary remedy of the Parties with respect to any and all claims in any way relating to or arising out of or in connection with this Agreement, whether hereunder, at Applicable Law or otherwise, including a breach of any representation, warranty, covenant or agreement made by any Party, except (a) in the case of Fraud and (b) for the avoidance of doubt, the remedies of specific performance, injunctive relief and other non-monetary equitable remedies. None of the limitations set forth in Section 4.2(c) shall apply in the case of Fraud.

Section 4.5    Purchase Price Adjustment. Any payment required to be made pursuant to this Article IV shall be treated for Tax purposes as an adjustment to the Purchase Price, unless otherwise required by a final determination of an applicable Governmental Authority.

Section 4.6    Tax Matters.
(a)    Transfer Taxes.  The Company will bear and pay when due any Transfer Taxes that may become payable in connection with the sale of the Acquired Shares to Investor and shall prepare and file any Tax Returns required in respect of such Transfer Taxes.  Each Party shall use reasonable efforts to avail itself of any available exemptions from any such Taxes, and to cooperate with the other Parties in providing any information and documentation that may be necessary to obtain such exemptions.
(b)    Information Reporting.
(i)    The Company shall monitor, and shall advise the Investor if it becomes aware that it is a “passive foreign investment company” within the meaning of the Code, and shall provide to the Investor any information that the Investor reasonably requests (to the extent such information is reasonably available to the Company and as soon as commercially practicable after the end of the relevant taxable year) in order for such Investor to: (A) comply with its federal, state, or local tax return filing and 

information reporting obligations with respect to the Company; and (B) make and maintain a QEF election (as defined in the Code) with respect to the Company (such information to be provided at the Company’s expense).
(ii)    If the Company is aware that it or any member of the Company Group has participated in a “reportable transaction” within the meaning of Section 6011 of the Code, and the Investor requests in writing information about any such transactions in which the Company is an investor, the Company shall provide, or cause its accountants to provide, such information it has reasonably available that is required to be obtained by such Investor under the Code as soon as practicable after such request.

ARTICLE V
MISCELLANEOUS

Section 5.1    Amendments; Extension; Waiver. This Agreement may not be amended, altered or modified except by written instrument executed by Investor and the Company. The failure by any Party to enforce at any time any of the provisions of this Agreement shall in no way be construed to be a waiver of any such provision nor in any way to affect the validity of this Agreement or any part hereof or the right of such Party thereafter to enforce each and every such provision. No waiver of any breach of or non-compliance with this Agreement shall be held to be a waiver of any other or subsequent breach or non-compliance. Any waiver made by any Party in connection with this Agreement shall not be valid unless agreed to in writing by the Company and Investor. 

Section 5.2    Entire Agreement. This Agreement, the Exhibits and Schedules hereto and any documents executed by the Parties simultaneously herewith or pursuant hereto, including the SHA Joinder Agreement, constitute the entire agreement of the Parties with respect to the subject matter hereof and supersede all prior agreements and understandings, written and oral, among the Parties with respect to the subject matter hereof.

Section 5.3    Construction and Interpretation. When a reference is made in this Agreement to Sections, Annexes, Exhibits or Schedules, such reference shall be to a Section of or Annex, Exhibit or Schedule to this Agreement unless otherwise indicated. The table of contents headings and footers contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” Unless the defined term “Business Days” is used, references to “days” in this Agreement refer to calendar days. The Parties have participated jointly in the negotiation and drafting of this Agreement. In the event any ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by all Parties, and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any provision of this Agreement.

Section 5.4    Severability. Any term or provision of this Agreement that is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms or provisions of this Agreement in any other jurisdiction. If any provision of this Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only so broad as is enforceable.

Section 5.5    Notices. All notices and other communications hereunder shall be in writing and shall be addressed as follows (or at such other address for a Party as shall be specified by like notice):
If to Investor:

Hamilton Lane Advisors, LLC 
c/o Hamilton Lane Incorporated
Attention: Lydia Gavalis, General Counsel
Email: lgavalis@hamiltonlane.com
Telephone: (610) 617-2032  

From the date hereof until  May 14, 2021:
1 Presidential Boulevard, Suite 400
Bala Cynwyd, PA  19004

Following May 14, 2021:
110 Washington Street
Conshohocken, PA  19428
With copies (which shall not constitute notice) to:
Morgan, Lewis & Bockius LLP
1701 Market Street
Philadelphia, PA 19103-2921
Attention: Michael L. Pillion
Email: michael.pillion@morganlewis.com 

and

Morgan, Lewis & Bockius LLP
101 Park Avenue
New York, New York 10178
Attn:     Robert Goldbaum
    Allison Gargano
E-mail:    robert.goldbaum@morganlewis.com    allison.gargano@morganlewis.com

If to the Company:

Russell Investments Cayman Midco, Ltd.
c/o Russell Investments
1301 Second Ave., 18th Floor
Seattle, Washington 98101
Attention: Robert Hostetter, Global Head of Solutions
Email: rhostett@russellinvestments.com
Telephone: (212) 702-7895
With copies to:
Skadden, Arps, Slate, Meagher & Flom LLP
Four Times Square
New York, New York 10036
Telephone: (212) 735-2000
Attention: David Hepp
Email: david.hepp@skadden.com
All such notices or communications shall be deemed to have been delivered and received: (a) if delivered in person, on the day of such delivery, (b) if by facsimile or email, on the day on which such facsimile or email was sent, provided that receipt is confirmed by telephone or return email, (c) if by certified or registered mail (return receipt requested), on the fifth Business Day after the mailing thereof or (d) if by reputable overnight delivery service, on the second Business Day after the sending thereof.

Section 5.6    Binding Effect; Persons Benefiting; No Assignment. This Agreement shall inure to the benefit of and be binding upon the Parties and their respective successors and permitted assigns. Nothing in this Agreement is intended or shall be construed to confer upon any Person other than the Parties and their respective successors and permitted assigns any right, remedy or claim under or by reason of their Agreement or any part hereof. This Agreement may not be assigned by any Party (other than Investor as described below) without the prior written consent of the other Parties and any purported assignment or other transfer without such consent shall be void and unenforceable.

Section 5.7    Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same agreement, it being understood that all of the Parties need not sign the same counterpart.

Section 5.8    Dispute Resolution. All disputes, claims or controversies arising out of, relating to, or in connection with this Agreement, including disputes relating to the validity or interpretation hereof or the actions of the Parties hereto in the negotiation, administration, performance and enforcement hereof (each a “Dispute”) shall be resolved by 

final and binding arbitration administered by the American Arbitration Association (“AAA”) in accordance with the Commercial Arbitration Rules then in effect, except as modified herein. The place of the arbitration (physically or virtually to the extent physical presence is not reasonably practical) shall be Wilmington, Delaware. Any Party that wishes to raise a Dispute must do so by sending written notice to the other Party identifying in reasonable detail the basis for such Dispute. If, within ten Business Days of receipt of written notice of a Dispute, the Dispute remains unresolved, the Parties shall work with AAA to select a single, impartial arbitrator, without conflicts, in accordance with Section 12 of the American Arbitration Association Commercial Arbitration Rules who shall have substantial business experience in the investment advisory industry. The Parties hereto covenant that they will participate in the arbitration in good faith and that they will share equally its costs except as otherwise provided herein. The arbitrator shall have the power to grant temporary, preliminary and permanent relief, including injunctive relief and specific performance, or any other remedy available from a court of competent jurisdiction, including 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. The provisions of this Section 5.8 shall be enforceable in any court of competent jurisdiction, and the Parties shall bear their own costs in the event of any proceeding to enforce this Agreement except as otherwise provided herein. The arbitrator shall assess costs and expenses (including the reasonable legal fees and expenses of the prevailing party or parties and any expenses incurred in connection with compelling arbitration) in favor of the prevailing party or parties against the other party or parties to such proceeding. Any party unsuccessfully refusing to comply with an order or award of the arbitrator shall be liable for costs and expenses, including attorneys’ fees, incurred by the other party in enforcing the order or award. The Parties shall instruct the arbitration to render a decision within thirty (30) days after the close of the arbitration hearing, however, failure to do so shall not affect the validity of the award. The decision of the arbitrator shall be final and binding and not be subject to appeal. Judgment thereon may be entered in any court of competent jurisdiction. Nothing in this Agreement shall prevent any Party from seeking interim equitable relief in support of the arbitration, and any such request shall not be deemed incompatible with the agreement to arbitrate or a waiver of the right to arbitrate.

Section 5.9    Specific Performance. The Parties each acknowledge that, in view of the uniqueness of the Company and the transactions contemplated hereby, each Party would not have an adequate remedy at law for money damages in the event that the covenants to be performed after the Closing have not been performed in accordance with their terms, and therefore agree that the other Parties shall be entitled to seek specific enforcement of the terms hereof and any other equitable remedy to which such Parties may be entitled.

Section 5.10    Expenses. Investor and the Company shall each bear their own expenses incurred in connection with this Agreement and the Shareholders Agreement.

Section 5.11    Announcements. Investor and the Company shall consult with each other as to the form, substance and timing of any press release or other public disclosure related to this Agreement or the transactions contemplated hereby, and no such press release or other 

public disclosure shall be made by any Party without the consent of the Company and Investor, except as may be required by Applicable Law or regulation or by obligations pursuant to any listing agreement with any national securities exchange (in which case such Party shall use its commercially reasonable efforts to consult, to the extent reasonably practicable, the other Parties prior to issuing such press release or making such public disclosure).

Section 5.12    Governing Law. This Agreement shall be governed by and construed and interpreted in accordance with the laws of the State of Delaware without regard to its conflict of law principles.

Section 5.13    Waiver of Jury Trial. Each Party hereby waives, and agrees to cause each of its Affiliates to waive, to the fullest extent permitted by Applicable Law, any right it may have to a trial by jury in respect of any claim directly or indirectly arising out of, under or in connection with this Agreement or the transactions contemplated hereby.  

Section 5.14    Consent to Jurisdiction. The Parties irrevocably submit to the exclusive jurisdiction of the state and federal courts in the State of Delaware, and no claim arising out of, or concerning this Agreement or the transactions contemplated hereby shall be brought by any Party except in such courts. The Parties irrevocably and unconditionally waive (and agree not to plead or claim) any objection to the laying of venue of any claim arising out of this Agreement or the transactions contemplated hereby in the state or federal courts in the State of Delaware, or that any such claim brought in any such court has been brought in an inconvenient forum. Each of the Parties also agrees that any final and unappealable judgment against a Party in connection with any claim shall be conclusive and binding on such Party and that such award or judgment may be enforced in any court of competent jurisdiction, either within or outside of the United States. A certified or exemplified copy of such award or judgment shall be conclusive evidence of the fact and amount of such award or judgment.

Section 5.15    No Third-Party Beneficiaries. Nothing in this Agreement, expressed or implied, is intended to confer on any person, other than the Parties or their respective successors and permitted assigns, any rights, remedies, obligations or liabilities.
[Remainder of page intentionally left blank.]

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the date first above written.
									
	INVESTOR:
			
	HAMILTON LANE ADVISORS, LLC
			
	By:	/s/ Mario Giannini
	Name: 	Mario Giannini
	Title:	Chief Executive Officer
			
			
	COMPANY:
			
	RUSSELL INVESTMENTS GROUP, LTD.
			
	By:	/s/ Michelle Seitz
	Name:	Michelle Seitz
	Title:	Director

[Investment Agreement]

Annex A
Defined Terms
For all purposes of this Agreement (other than as otherwise defined or specified in any Exhibit or Schedule), the following terms shall have the respective meanings set forth below in this Annex A (such definitions to apply to both the singular and plural forms of the terms herein defined):
“AAA” has the meaning set forth in Section 5.8.
“Acquired Shares” has the meaning set forth in the recitals.
“Affiliate” means, with respect to any Person, any Person that directly or indirectly through one or more intermediaries, Controls, is Controlled by, or is under common Control with, the first Person, provided that (i) an Affiliate of any Person includes any other Person in which the first Person owns a 25% or greater interest, and (ii) no investment company (or any series thereof) registered under the Investment Company Act or any other pooled investment vehicle or, in each case, Controlled Affiliate thereof and none of Investor or any of its Affiliates shall be deemed to be Affiliates of any member of the Company Group.
“Agreement” means this Investment Agreement, as may be amended from time to time, and any Annexes, Exhibits and Schedules hereto.
“Applicable Law” means, with respect to any Person, any domestic or foreign federal, state or local statute, law (whether statutory or common), ordinance, rule, administrative code, administrative interpretation, regulation, order, consent, writ, injunction, directive, judgment, decree, policy, ordinance, decision, guideline or other requirement of, or agreement with, a Governmental Authority applicable to such Person or any of its respective Affiliates, equityholders, directors, officers, employees, agents, properties or assets, including laws relating to the privacy and data security of Clients, the Foreign Corrupt Practices Act of 1977, as amended, the U.K. Bribery Act, or any other laws relating to corruption or bribery, the Investment Advisers Act, the Investment Company Act, and applicable foreign economic sanctions laws and regulations, including economic sanctions administered by the U.S. Department of the Treasury’s Office of Foreign Assets Control.
“Business Day” means a day other than a Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or required by Applicable Law to close.
“Cap” has the meaning set forth in Section 4.2(c)(i).
“Capital Stock” means (i) in the case of a corporation, capital stock, (ii) in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of capital stock, (iii) in the case of a partnership or limited liability company, the partnership or membership interests (whether general or limited) 
Annex A - 1

and, (iv) any other interest or participation that confers on the holder the right to receive a share of the profits and losses of, or distributions of assets of, the issuing entity.
“Claim Notice” has the meaning set forth in Section 4.3(a).
“Client” means any Person to which any member of the Company Group provides investment management or investment advisory services, including any sub-advisory services.
“Closing” has the meaning set forth in Section 1.2.
“Closing Date” has the meaning set forth in Section 1.2.
“Code” means the United States Internal Revenue Code of 1986, as amended.
“Company” has the meaning set forth in the preamble to this Agreement. 
“Company Balance Sheet” has the meaning set forth in Section 2.7. 
“Company Fundamental Representations” means Section 2.1, Section 2.2, Section 2.3, Section 2.4, Section 2.12, Section 2.13 and Section 2.14.
“Company Group” means the Company and its Controlled Affiliates, collectively, and any reference to a “member” or “members” of the Company Group means one or more of the Company and its Controlled Affiliates, as the context may require.
“Company Indemnitees” has the meaning set forth in Section 4.2(b). 
“Company Material Adverse Effect” means any changes, effects, events, matters, occurrences or states of facts that have had or would reasonably be expected to have, a material adverse effect on the business, condition (financial or otherwise), properties, assets, liabilities or operations of the Company Group, taken as a whole, except that none of the following changes, effects, events, matters, occurrences, states of facts or developments shall be taken into account in determining whether there has been or will reasonably be excepted to be a Company Material Adverse Effect: any change, effect, event, circumstance, condition, matter, occurrence, state of facts or development to the extent resulting from (a) general economic, political, regulatory or social conditions in, or directly affecting, any of the geographical areas in which the Company Group operates; (b) any change in the financial, banking, securities, capital or credit markets in general (whether in the United States or any other country or in any international market), including changes in interest rates and credit ratings; (c) any change or condition generally affecting the investment management industry; (d) acts of God, natural disasters, national or international political conditions, weather conditions, the engagement in, or escalation or worsening of, hostilities, whether commenced before or after the date hereof and whether or not pursuant to the declaration of a national emergency, the occurrence of any cyber, military or terrorist attack, whether inside or outside the United States; (e) the failure to achieve any projections, forecasts, estimates, plans, predictions, performance metrics or operating statistics, or the inputs into such items (but not any underlying change, effect, event, circumstance, occurrence, state of facts or developments which causes such failure); (f) the announcement or 
Annex A - 2

consummation of the transactions contemplated hereby; (g) any changes in applicable accounting regulations or accounting principles (or interpretations thereof that are generally accepted) or any change in Applicable Laws or the interpretation thereof, in each case, after the date hereof; (h) any Contagion Event or Contagion Measure and any changes, effects and circumstances arising therefrom or attributable thereto; (i) the taking of any action expressly required by this Agreement or the Shareholders Agreement; or (j) the taking of any action, or the failure to take any action, in each case, to which Investor has specifically consented in writing; provided that, notwithstanding anything to the contrary in the foregoing, in the case of each of clauses (a), (b), (c), (d), (g) and (h) above, if such change, effect, event, circumstance, occurrence, state of facts or development disproportionately affects the Company Group as compared to other similarly-situated Persons or businesses that operate in the same industries in which the Company Group operates, then the disproportionate aspect of such change, effect, event, circumstance, occurrence, state of facts or development shall be taken into account in determining whether a Company Material Adverse Effect has occurred or would reasonably be expected to occur.
“Company Shares” has the meaning set forth in Section 2.3(a).
“Consent” means any consent, approval, authorization, waiver, permit, license, grant, agreement, exemption or order of, or registration, declaration or filing with, any Person, including any Governmental Authority, that is required to be made or obtained in connection with the execution and delivery by any member of the Company Group or Investor of this Agreement or the SHA Joinder Agreement or the consummation of the transactions contemplated hereby.
“Contagion Event” means (i) the outbreak or ongoing effects of any contagious disease, epidemic or pandemic (including the COVID-19 virus) or any global or regional health conditions or (ii) any worsening of any of the foregoing.
“Contagion Measure” means any (i) quarantine, “shelter in place,” “stay at home,” social distancing, shut-down, closure, sequester or declaration of martial law or similar Applicable Law or directive, by any Governmental Authority or (ii) action taken in connection with or in response to any Applicable Law, in each case of clauses (i) and (ii), in respect of any Contagion Event.
“Contract” means, whether written or oral, any contract, agreement, loan agreement, indenture, letter of credit, mortgage, security agreement, pledge agreement, bond, note, guarantee, license, power of attorney, purchase or sales order, lease or other instrument, obligation, undertaking, commitment, arrangement or understanding, in each case as amended, supplemented, waived or otherwise modified, in each case, to which the applicable Person is a party or by which the applicable Person or any of its properties or assets is bound.
“Control” or “Controlled” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract, as trustee or executor, or otherwise. For purposes of this definition, a general partner or managing member of a Person shall always be considered to Control such Person. 
Annex A - 3

“Controlled Affiliate” means with respect to a Person, any Affiliate of such Person under its Control.
“Controlling Party” has the meaning set forth in Section 4.3(b)(i).
“Deductible” has the meaning set forth in Section 4.2(c)(i).
“Dispute” has the meaning set forth in Section 5.8.
“Equity Rights” has the meaning set forth in Section 2.3(b).
“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated by the SEC thereunder.
“Filings” has the meaning set forth in Section 2.11(c).
“Fraud” means common law fraud as defined under Applicable Law in the State of Delaware.
“GAAP” means the generally accepted accounting principles, consistently applied, of the applicable jurisdiction that govern the preparation of the financial statements in question as in effect at the time such financial statements were or are prepared.
“Governing Documents” means, with respect to any Person, (i) such Person’s articles or certificate of incorporation, memorandum and articles of association, bylaws, certificate of limited partnership, limited partnership agreement, certificate of formation, limited liability company operating agreement, declaration or agreement of trust or other governing documents and (ii) any stockholders agreement or similar agreement related to any of the foregoing. 
“Governmental Authority” means any nation, state, territory, province, county, city or other unit or subdivision thereof or any entity, authority, agency, department, board, commission, instrumentality, court or other judicial body authorized on behalf of any of the foregoing to exercise legislative, judicial, regulatory or administrative functions of or pertaining to government, and any Self-Regulatory Organization.
“Indemnified Party” has the meaning set forth in Section 4.3(a).
“Indemnifying Party” has the meaning set forth in Section 4.3(a).
“Investment Advisers Act” means the Investment Advisers Act of 1940, as amended, and the rules and regulations of the SEC thereunder.
“Investment Company Act” means the Investment Company Act of 1940, as amended, and the rules and regulations promulgated thereunder by the SEC. 
Annex A - 4

“Investor” has the meaning set forth in the preamble to this Agreement and includes any successor or permitted assign.
“Investor Fundamental Representations” means Sections 3.1 and 3.2.
“Investor Indemnitees” has the meaning set forth in Section 4.2(a).
“Knowledge” means the actual knowledge of the Company or Investor, as applicable, after reasonable inquiry of its employees, officers, partners, members, trustees, directors or agents with responsibility for the applicable subject matter.
“Lien” means, whether arising under any Contract or otherwise, any debts, claims, security interests, liens, encumbrances, pledges, mortgages, retention agreements, hypothecations, rights of others, assessments, restrictions, voting trust agreements, options, rights of first offer, proxies, title defects, and charges or other restrictions or limitations of any nature whatsoever.
“Losses” shall mean any and all losses, penalties, damages, costs, fines, expenses, demands, judgments and settlements (including interest and penalties with respect thereto and all reasonable out-of-pocket expenses incurred in the investigation or defense of any of the same), in all cases whether or not resulting from a Third-Party Claim.
“Non-Controlling Party” has the meaning set forth in Section 4.3(b)(i).
“Order” means any judgment, outstanding order, injunction, stipulation, award or decree of any Governmental Authority and any award in any arbitration Proceeding or settlement agreement.
“Party” or “Parties” have the meaning set forth in the preamble to this Agreement.
“Permits” has the meaning set forth in Section 2.11(b). 
“Permitted Liens” means all Liens that are:
(a)    for property Taxes which have been incurred in the ordinary course of business and are not yet due and payable and for which adequate reserves have been included on the financial statements of the Company Group;
(b)    Liens or pledges to secure payments of workmen’s compensation and other payments, unemployment and other insurance, old-age pensions or other social security obligations, or the performance of bids, tenders, leases, contracts, public or statutory obligations, surety, stay or appeal bonds, or other similar obligations arising in the ordinary course of business;

(c)    workmen’s, repairmen’s, warehousemen’s, vendors’ or carriers’ Liens or other similar Liens arising in the ordinary course of business and securing sums that are not past due and for which adequate reserves have been included on the financial 
Annex A - 5

statements of the Company Group, or deposits or pledges to obtain the release of any such Liens;

(d)    statutory landlords’ Liens and landlord’s Liens under Leases to which any member of the Company Group is a party , that do not materially impair the use of such property in the normal operation of the business or the value of such property for the purpose of such business; and

(e)    zoning restrictions, easements, rights of way, licenses and restrictions on the use of real property or minor irregularities in title thereto, that do not materially impair the use of such property in the normal operation of the business or the value of such property for the purpose of such business.
“Person” means any natural person or any firm, partnership, limited liability partnership, association, corporation, limited liability company, joint venture, trust, business trust, sole proprietorship, Governmental Authority or other entity or any division thereof.
“Proceeding” means any judicial, administrative or arbitral action, suit, action, investigation, examination, audit, review, inquiry or other proceeding.
“Purchase Price” has the meaning set forth in Section 1.1.
“SEC” means the U.S. Securities and Exchange Commission.
“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder by the SEC.
“Securities Laws” means the Securities Act, the Exchange Act, the Investment Company Act, the Investment Advisers Act, state “blue sky” securities and investment advisory laws, all similar foreign securities laws, and the rules and regulations promulgated thereunder.
“Self-Regulatory Organization” means, each national securities exchange in the United States and each other commission, board, agency or body, whether United States or foreign, that is charged with the supervision or regulation of brokers, dealers, commodity pool operators, commodity trading advisors, futures commission merchants, securities underwriting or trading, stock exchanges, commodities exchanges, insurance companies or agents, investment companies or investment advisers, or to the jurisdiction of which any member of the Company Group is subject.
“SHA Joinder Agreement” has the meaning set forth in the recitals to this Agreement.
“Share Purchase” has the meaning set forth in the recitals.
“Shareholders Agreement” has the meaning set forth in the recitals to this Agreement.
Annex A - 6

“Strategic Agreement” has the meaning set forth in the recitals to this Agreement.
“Tax” means (i) any federal, state, local, foreign and other taxes, levies, fees, imports, duties and charges of whatever kind imposed by any taxing or similar authority (including any interest, penalties, or additions to the tax attributable to, imposed in connection therewith, or with respect thereto), including taxes imposed on, or measured by net or gross income, alternative minimum, accumulated earnings, personal holding company, franchise, doing business, unincorporated business, capital stock, net worth, capital, profits, windfall profits, gross receipts, business, securities transaction, value added, sales, use, excise, custom, transfer, registration, stamp, premium, real property, personal property, ad valorem, intangibles, rent, occupancy, license, occupational, escheat, employment, unemployment, social security, disability, workers’ compensation, payroll, withholding, estimated and recording, whether computed on a separate, consolidated, unitary, combined or other basis; (ii) any liability for the payment of any amounts described in this definition as a result of being a member of an affiliated, consolidated, combined, unitary or similar group, as a result of transferor or successor liability, or as a result of the operation of law; and (iii) any liability for the payments of any amounts as a result of being a party to any tax sharing agreement or as a result of any express or implied obligation to indemnify any other Person with respect to the payment of any amounts of the type described in clauses (i) or (ii).
“Tax Return” means any return, report, declaration, form, claim for refund or information statement relating to Taxes, including any schedule or attachment thereto, and including any amendment thereof.
“Third-Party Claim” has the meaning set forth in Section 4.3(a). 
“Transfer Tax” means any transfer, documentary, recording, sales, use, stamp, registration and other such Taxes, and all conveyance fees, recording charges and other fees and charges (including any penalties and interest) incurred in connection with the consummation of the transactions contemplated by this Agreement.
“USD” or “$” means U.S. dollars.
“Wire Transfer” means a payment in immediately available funds by wire transfer in lawful money in USD to such account or to a number of accounts as shall have been designated by written notice from the receiving party no later than two Business Days prior to the payment date.
Annex A - 7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00328-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00328-of-00352.parquet"}]]