Document:

EX-10.1

 Exhibit 10.1 

EXECUTION VERSION 
  

 
 May 2, 2019 
 Navient
Corporation 
 123 Justison Street 
 Wilmington, DE 19801 

Ladies and Gentlemen: 
 Pursuant to this letter
agreement (this “Agreement”) Canyon Capital Advisors LLC and the entities set forth in the signature pages hereto (other than the Company) (collectively, “Investor”) and Navient Corporation (the
“Company”) (each of the Company and Investor, a “Party,” and collectively, the “Parties”) hereby agree as follows: 

1.    Board Matters. 

(a)    Appointment of New Directors. The Company agrees that the Board of Directors of the Company (the
“Board”) will, effective as soon as practicable after the date of this Agreement, following, and subject to, the satisfactory completion of customary background checks and the Company’s standard directors and officers
questionnaire, appoint both Larry Klane and Marjorie Bowen (each, a “New Director” and, collectively, the “New Directors”) as a Company director. Simultaneously with the appointment of the New Directors to the
Board, the size of the Board will be increased to twelve (12) directors. The Board, based on preliminary information provided by Investor and the New Directors, believes that each New Director (i) qualifies as an “independent
director” under the applicable rules of the Nasdaq Global Select Market and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”), (ii) satisfies the guidelines and policies with respect to
service on the Board applicable to all non-management directors (including the requirements set forth in Section 1(i)(iii) hereof) and (iii) has no prior relationship with
Investor, its principals (including serving as a nominee on a board of directors with any of Investor’s principals) or any of its Affiliates (as hereinafter defined). 

(b)    Nominations at 2019 Annual Meeting. The Company agrees that the Board will nominate each New Director for
election as a director of the Company at the 2019 annual meeting of the Company’s stockholders (the “2019 Annual Meeting”), together with the other persons included in the Company’s slate of nominees for election as
directors at the 2019 Annual Meeting, with terms expiring at the 2020 annual meeting of the Company’s stockholders (the “2020 Annual Meeting”), and will recommend that the stockholders of the Company vote to elect each New
Director as a director of the Company at the 2019 Annual Meeting. The Company further agrees that it will use its reasonable best efforts to obtain the election of each New Director as a director of the Company at the 2019 Annual Meeting. 

 (c)    Investor Vote at 2019 Annual Meeting. Investor will cause
all shares of common stock of the Company (“Company Common Stock”) beneficially owned by Investor to be present in person or by proxy for quorum purposes and to be voted at the 2019 Annual Meeting or at any adjournments or
postponements thereof in favor of each director nominated and recommended by the Board for election at the 2019 Annual Meeting. Investor, on behalf of itself and its controlled Affiliates, hereby (i) irrevocably withdraws the notice of
stockholder nomination of individuals for election as directors of the Company at the 2019 Annual Meeting submitted to the Company on February 21, 2019; (ii) agrees not to submit any notice of nomination of individuals for election as directors
of the Company at the 2019 Annual Meeting; (iii) agrees to terminate immediately its solicitation of proxies in connection with the 2019 Annual Meeting; and (iv) irrevocably withdraws any related materials or notices submitted to the
Company in connection therewith. 
 (d)    Committees. The Company and Investor will discuss committee
composition through the 2020 Annual Meeting, but the Company agrees that the Board will appoint at least one New Director to each of the Nominations and Governance Committee of the Board (the “Nominations Committee”) and the
Compensation and Personnel Committee of the Board, subject to a New Director being eligible to serve on one of those committees. Except if there may be conflicts of interest, as determined in good faith by the Board, the Board will not utilize
committees of the Board for the purpose of discriminating against the New Directors in order to limit their participation in substantive deliberations of the Board. 

(e)    New Director Replacements. If a New Director is not appointed to the Board or does not stand for election at
the 2019 Annual Meeting, or is appointed to the Board but ceases to be a director before the end of the Standstill Period (as hereinafter defined), whether as a result of death or incapacity or for any other reason, and at such time Investor
beneficially owns, in the aggregate, at least seven and one half percent (7.5%) of the then-outstanding Company Common Stock (the “Minimum Ownership Threshold”), the Board will appoint a replacement director (a “Replacement
Director”) who is mutually acceptable to both the Board and Investor. The Replacement Director will thereafter be deemed a New Director for purposes of this Agreement and be entitled to the same rights and subject to the same requirements
under this Agreement that had been applicable to the replaced New Director, and the Company agrees that the Board will appoint such Replacement Director to the Board to serve the unexpired term, if any, of the replaced New Director. Following the
appointment of any Replacement Director to replace a New Director in accordance with this Section 1(e), all references to a New Director herein shall be deemed to include any Replacement Director (it being understood that
this sentence shall apply whether or not references to a New Director expressly state that they include any Replacement Director). If at any time Investor’s aggregate beneficial ownership of the Company Common Stock decreases to less than the
Minimum Ownership Threshold, the right of Investor pursuant to this Section 1(e) to participate in the recommendation of a Replacement Director to fill the vacancy caused by the resignation of either of New Directors or any
Replacement Director shall automatically terminate. Prior to the appointment of any Replacement Director to the Board the Replacement Director will submit to the Company the information, documentation and acknowledgements set forth in clause
(iii) of Section 1(i) hereof. 

  
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 (f)    Size of Board. The Company agrees that the size of the
Board will be no more than twelve (12) directors at any time prior to the retirement from the Board of William M. Diefenderfer, III (“Mr. Diefenderfer”) or Barry L. Williams
(“Mr. Williams”). After the retirements of both Mr. Diefenderfer and Mr. Williams, which retirements shall be effective not later than the conclusion of the second day of the regularly scheduled meeting
of the Board to occur in August 2019 (and in any event not later than August 31, 2019), the Company agrees that, during the Standstill Period, the size of the Board will be no more than ten (10) directors. 

(g)    New Chairman. The Company agrees that the Board will select from its independent directors a new Chairman of
the Board to replace its current Chairman of the Board, effective as of the 2019 Annual Meeting. 
 (h)    Finance
Committee Matters. The Company agrees that the Board will, effective as of the date of this Agreement, appoint Frederick Arnold as a member of the Finance and Operations Committee of the Board (the “Finance Committee”). Promptly
following the execution of this Agreement, the Finance Committee shall retain, in its discretion, one or more financial advisors and/or consultants for the purpose of assisting the Finance Committee with its oversight and review of the
Company’s policies and practices, including, without limitation, with respect to (i) multi-year balance sheet, income statement and cash flow projections and (ii) expenses. 

(i)    Additional Agreements. 

(i)    Investor agrees that it will cause its controlled Affiliates and Associates to comply with the terms of this
Agreement and shall be responsible for any breach of this Agreement by any such controlled Affiliate or Associate. As used in this Agreement, the terms “Affiliate” and “Associate” shall have the respective meanings set forth in
Rule 12b-2 promulgated by the SEC under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall include all persons or entities that at any time during the term of this
Agreement become Affiliates of any person or entity referred to in this Agreement. 
 (ii)    Investor agrees that it
will (A) continue to have the sole right to vote 25,649,480 shares of the Company Common Stock through the date of the 2019 Annual Meeting, and (B) at each annual or special meeting of stockholders held during the Standstill Period
(x) be present for quorum purposes, (y) vote or cause to be voted all shares of the Company Common Stock beneficially owned, or deemed beneficially owned (as determined under Rule 13d-3 promulgated
under the Exchange Act), by Investor at such meeting in favor of the slate of directors nominated by the Board and against the removal of any member of the Board and (z) vote in accordance with the Board’s recommendation with respect to
each proposal specified in the Company’s proxy statement, dated April 29, 2019, filed with the SEC if presented at the 2019 Annual Meeting, unless either Institutional Shareholder Services Inc. (“ISS”) or Glass,
Lewis & Co. (“Glass Lewis”) issues a recommendation against the Board’s position on such other proposal, in which case, Investor shall have the right to vote in accordance with such ISS or Glass Lewis recommendation.

 (iii)    After being identified as a New Director candidate, any New Director candidate will promptly, to the extent
not previously delivered (but in any event prior to being appointed to the Board in accordance with this Agreement), deliver to the Company (A) a fully 

  
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completed copy of the Company’s standard director and officer questionnaire and other reasonable and customary director onboarding documentation required by the Company’s written
policies and procedures of non-management directors in connection with the appointment or election of new Board members; (B) the information required pursuant to Section 1.10(b)
of Article I of the Company’s Second Amended and Restated Bylaws (as may be amended from time to time, the “Bylaws”); and (C) a written acknowledgement in substantially the form entered into by the other directors of
the Company that, if appointed to the Board such New Director candidate agrees to be bound by all current policies, codes and guidelines applicable to directors of the Company, including, without limitation, the Company’s trading policy, code
of business conduct, corporate governance guidelines and any related person transaction policy. 
 2.    Standstill
Provisions. 
 Investor agrees that it will abide by the provisions set forth in Annex A attached hereto and deemed a part of
this Agreement, which provisions are a modified version of Paragraph 9 of the confidentiality agreement, dated October 19, 2018, by and among the Company, Canyon Partners, LLC and Canyon Capital Advisors LLC, as amended (the
“NDA”), at all times from the date of this Agreement until 12:01 A.M., New York City time, on the earlier of (i) ten business days prior to the deadline for the submission of a notice of stockholder nomination of individuals
for election as directors of the Company at the 2020 Annual Meeting and (ii) December 31, 2019 (such period the “Standstill Period”). The Parties acknowledge that concurrently with the execution of this Agreement, each of
the New Directors and Frederick Arnold are delivering to the Company an irrevocable advance resignation letter, pursuant to which each of the New Directors and Frederick Arnold agree to resign from the Board upon the occurrence of certain specified
events set forth in such resignation letters. Investor further agrees that neither of the New Directors nor Frederick Arnold may be nominated by Investor for election to the Board at the 2020 Annual Meeting. 

3.    Representations and Warranties of the Company. 

The Company represents and warrants to Investor that (i) the Company has the corporate power and authority to execute this Agreement and
to bind the Company thereto, (ii) this Agreement has been duly and validly authorized, executed and delivered by the Company, constitutes a valid and binding obligation and agreement of the Company, and is enforceable against the Company in
accordance with its terms, except as enforcement hereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws generally affecting the rights of creditors and subject to general equity
principles and (iii) the execution, delivery and performance of this Agreement by the Company does not and will not (A) violate or conflict with any law, rule, regulation, order, judgment or decree applicable to the Company, or
(B) result in any breach or violation of or constitute a default (or an event which with notice or lapse of time or both could constitute such a breach, violation or default) under or pursuant to, or result in the loss of a material benefit
under, or give any right of termination, amendment, acceleration or cancellation of, any organizational document, agreement, contract, commitment, understanding or arrangement to which the Company is a party or by which it is bound. 

  
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 4.    Representations and Warranties of Investor. 

Investor represents and warrants to the Company that (i) Investor (collectively) has the power and authority to execute this Agreement
and to bind Investor thereto; (ii) this Agreement has been duly and validly authorized, executed and delivered by Investor, constitutes a valid and binding obligation and agreement of Investor, and is enforceable against Investor in accordance
with its terms, except as enforcement hereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws generally affecting the rights of creditors and subject to general equity principles;
(iii) the execution, delivery and performance of this Agreement by Investor does not and will not (A) violate or conflict with any law, rule, regulation, order, judgment or decree applicable to Investor, or (B) result in any breach or
violation of or constitute a default (or an event which with notice or lapse of time or both could constitute such a breach, violation or default) under or pursuant to, or result in the loss of a material benefit under, or give any right of
termination, amendment, acceleration or cancellation of, any organizational document, agreement, contract, commitment, understanding or arrangement to which Investor is a party or by which it is bound; (iv) as of the date hereof, Investor is
deemed to beneficially own (as determined under Rule 13d-3 promulgated under the Exchange Act), in the aggregate, 25,649,480 shares of the Company Common Stock and will be entitled to vote all of such shares
of the Company Common Stock at the 2019 Annual Meeting; (v) as of the date hereof, Investor does not currently have, and does not currently have any right to acquire, any interest in any other Voting Securities (as defined in Annex A
attached hereto) or any rights, options or other securities convertible into or exercisable or exchangeable (whether or not convertible, exercisable or exchangeable immediately or only after the passage of time or the occurrence of a specified
event) for such securities or any obligations measured by the price or value of any Voting Securities, including any swaps or hedging transactions or other derivative arrangements designed to produce economic benefits and risks that correspond to
the ownership of Company Common Stock, whether or not any of the foregoing would give rise to beneficial ownership (as determined under Rule 13d-3 promulgated under the Exchange Act), and whether or not to be
settled by delivery of Company Common Stock, payment of cash or by other consideration, and without regard to any short position under any such contract or arrangement; (vi) Investor will not, directly or indirectly, compensate or agree to
compensate either of the New Directors for their service as a nominee or director of the Company in any manner including, but not limited to, with any cash, securities (including any rights or options convertible into or exercisable for or
exchangeable into securities or any profit sharing agreement or arrangement), or other form of compensation; (vii) other than the economic rights of third party investors in Investor, no Person (as hereinafter defined) other than Investor has
any rights with respect to its shares of the Company Common Stock; and (viii) none of Investor or its controlled Affiliates has formed, or has any present intent to form, a group (within the meaning of Section 13(d) under the Exchange Act)
with any third party in relation to the Company or the Company Common Stock. 
 5.    Mutual Non-Disparagement. 
 Subject to applicable law, each of the Parties covenants and agrees that, during
the Standstill Period or until such time as the other Party or any of its agents, subsidiaries, affiliates, successors, assigns, principals, partners, members, officers, key employees, directors or other representatives (collectively,
“Representatives”) shall have breached this Section 5, neither Party nor any of its Representatives, shall in any way, directly or indirectly, in any capacity or manner, whether written or oral,
electronically or otherwise (including, without limitation, in a television, radio, internet, newspaper, magazine interview, podcast or otherwise through the press, media, analysts or other 

  
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persons or in any document or report filed with the SEC), publicly criticize, attempt to discredit, disparage, call into disrepute, make ad hominem attacks on or otherwise defame or slander or
make, express, transmit, speak, write, verbalize or otherwise communicate in any public way (or cause, further, assist, solicit, encourage, support or participate in any of the foregoing), any remark, comment, message, information, declaration,
communication or any other public statement of any kind, whether verbal, in writing, electronically transferred or otherwise, that might reasonably be construed to be derogatory or critical of, or negative toward, the other Party or such other
Party’s Representatives (including any current officer or director of a Party or a Parties’ subsidiaries who no longer serves in such capacity following the execution of this Agreement), employees, stockholders (solely in their capacity as
stockholders of the applicable Party), agents, attorneys or representatives, or any of their practices, procedures, businesses, business operations, products or services, in any manner that would reasonably be expected to damage the business, or
reputation of the other Party or of its Representatives (including former officers and directors), directors (or former directors), employees, stockholders (solely in their capacity as stockholders of the applicable Party), agents or attorneys, or
to malign, harm, disparage, defame or damage the reputation or good name of either Party or its subsidiaries or Affiliates, or is derogatory, detrimental, or injurious to the goodwill, reputation or business standing of, either Party, its
Affiliates, its subsidiaries and its or their business. The foregoing will not prevent (a) the making of any factual statement in the event that either Party or any of its Representatives is required to make that statement by applicable
subpoena, legal process, other legal requirement or the rules of any securities exchange to which it is subject or (b) in addition to the other remedies available in connection with any breach of this Agreement, a response by a Party to any
breach by the other Party of this Section 5. 
 6.    Public Announcement. Promptly
following the execution of this Agreement, the Company and Investor will announce the material terms of this Agreement by means of a joint press release, in the form attached to this Agreement as Annex B (the “Press
Release”). Neither the Company nor Investor will make any public statements inconsistent with the Press Release, except as required by law or the rules of any stock exchange or with the prior written consent of the other Party. 

7.    Notices. All notices, consents, requests, instructions, approvals and other communications provided for
herein and all legal process in regard to this Agreement will be in writing and will be deemed validly given, made or served, if (a) given by email, upon confirmation of receipt of such email to the applicable email address set forth below;
provided such confirmation is not automatically generated, (b) given by a nationally recognized overnight delivery service, one business day after deposited with such service or (c) if given by any other means, when actually
received during normal business hours at the applicable address set forth below: 
 if to the Company: 

Navient Corporation 
 123
Justison Street 
 Wilmington, Delaware 19801 

Attention: Mark L. Heleen 
 Email:
Mark.L.Heleen@navient.com 

  
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 with a copy to: 

Skadden, Arps, Slate, Meager & Flom LLP 

4 Times Square 
 New York, NY
10036 
 Attention: Richard J. Grossman 

Email: richard.grossman@skadden.com 

if to Investor: 
 Canyon Capital
Advisors LLC 
 2000 Avenue of the Stars, 11th Floor 

Los Angeles, California 90067 

Attention: Jonathan Kaplan 

Email: jkaplan@CanyonPartners.com 

with a copy to: 

Sullivan & Cromwell LLP 

125 Broad Street 
 New York, New
York 10004-2498 
 Attention: Joseph C. Shenker; Alan J. Sinsheimer 

Email: shenkerj@sullcrom.com; sinsheimera@sullcrom.com 

or to such other email address or address for either Party as such Party shall have specified in a notice to the other Party. 

8.    Expenses. Within ten (10) business days following receipt of reasonably satisfactory documentation
thereof, the Company will reimburse Investor for its reasonable and documented out-of-pocket fees and expenses incurred by Investor to date in connection with preparing
for, engaging in and settling the proxy contest for the 2019 Annual Meeting, in an amount not to exceed $2,750,000 in the aggregate. 

9.    Termination. This Agreement will terminate upon the earliest of: 

(a)    the expiration of the Standstill Period; 

(b)    delivery of written notice by a Party to the other Party of a material breach of this Agreement by such other Party
(provided, that such other Party will have five (5) business days following receipt of such written notice to remedy such material breach if capable of remedy); and 

(c)    such other date established by mutual written agreement of the Parties. 

10.    Miscellaneous. 

(a)    Specific Performance, Remedies. The Company and Investor acknowledge and agree that irreparable injury to
the other Party hereto would occur in the event any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise 

  
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breached and that such injury would not be adequately compensable by the remedies available at law (including the payment of money damages). It is accordingly agreed that the Company and Investor
will be entitled to an injunction or injunctions, without proof of actual damages or the requirement of posting a bond, to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement, in addition to any
other remedy to which they are entitled at law or in equity, and the other Party will not take any action, directly or indirectly, in opposition to the Party seeking such relief on the grounds that any other remedy or relief is available at law or
equity. This Section 10(a) is not the exclusive remedy for any violation of this Agreement. 

(b)    Governing Law, Dispute Resolution. This Agreement shall be governed by and construed in accordance with the
laws of the State of Delaware without giving effect to the choice of law principles of such state that may direct application of laws of another jurisdiction. Each Party to this Agreement hereby irrevocably and unconditionally agrees that any
action, suit or proceeding of any kind or nature with respect to or arising out of this Agreement may be brought and maintained only in the Court of Chancery of the State of Delaware or, if that court refuses to accept jurisdiction, any other state
or federal court sitting in the State of Delaware. Each Party hereby irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or proceeding arising out of this Agreement in such court, and further irrevocably
and unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum. The Parties agree that a final judgment in any such dispute
shall be conclusive and may be enforced in other jurisdictions by suits on the judgment or in any other manner provided by law. EACH OF THE COMPANY AND INVESTOR (A) IRREVOCABLY WAIVES THE RIGHT TO TRIAL BY JURY AND (B) AGREES TO WAIVE ANY
BONDING REQUIREMENT UNDER ANY APPLICABLE LAW. 
 (c)    Private Communications and Requirements of Law. Subject
to complying with its obligations under Section 2, Section 5 and Annex A hereof, nothing in this Agreement will be deemed to limit Investor’s ability to (A) provide its views
privately in a meeting to a majority of the Board or to a majority of a committee of the Board or to the chairperson of the Board or to senior management of the Company on any matter or to privately request a waiver of any provision of this
Agreement; provided that such actions are not intended to and would not require public disclosure of such actions by either Investor or the Company, or (B) take any action necessary to comply with any law, rule or regulation or any
action required by any governmental or regulatory authority or stock exchange that has, or may have, jurisdiction over Investor. Investor agrees however, that it will not communicate with any director of the Company on an individual basis, with
respect to matters relating to the Company or its business or affairs. 
 (d)    Severability. If at any time
subsequent to the date hereof, any provision of this Agreement other than Section 1, Section 2 or Appendix A is held by any court of competent jurisdiction to be illegal, void or
unenforceable, such provision will be of no force and effect, but the illegality or unenforceability of such provision will have no effect upon the legality or enforceability of any other provision of this Agreement, unless
Section 1, Section 2 or Appendix A is what is illegal, void or unenforceable. 

(e)    Counterparts. This Agreement shall be a binding contract only upon execution by both Parties and may be
executed in one or more counterparts and by scanned computer image 

  
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(such as pdf), each of which will be deemed to be an original copy of this Agreement. For the avoidance of doubt, neither Party shall be bound by any contractual obligation to the other Party
(including by means of any oral agreement) until all counterparts to this Agreement have been duly executed by each of the Parties and delivered to the other Party (including by means of electronic delivery). 

(f)    No Third Party Beneficiaries. This Agreement is solely for the benefit of the Company and Investor and is
not enforceable by any other persons. Neither Party may assign its rights or delegate its obligations under this Agreement, whether by operation of law or otherwise, and any assignment in contravention hereof will be null and void. 

(g)    No Waiver. No failure or delay by either Party in exercising any right or remedy hereunder will operate as a
waiver thereof, nor will any single or partial waiver thereof preclude any other or further exercise thereof or the exercise of any other right or remedy hereunder. 

(h)    Entire Understanding. This Agreement and the NDA contain the entire understanding of the Parties with
respect to the subject matter hereof and supersedes any and all prior and contemporaneous agreements, memoranda, arrangements and understandings, both written and oral, between the Parties, or any of them, with respect to the subject matter of this
Agreement. This Agreement may be amended only by an agreement in writing executed by the Company and Investor. 
 [Signature page
follows] 

  
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 Please confirm your agreement with the foregoing by signing and returning this Agreement to the undersigned,
whereupon this Agreement shall become a binding agreement between the Company and Investor. 
  

			
	Sincerely,
	
	CANYON PARTNERS, LLC
		
	By:	 	/s/ Jonathan M. Kaplan
	Name:	 	Jonathan M. Kaplan
	Title:	 	Authorized Signatory
	
	CANYON CAPITAL ADVISORS LLC, on behalf of itself and the following funds:
	Canyon Value Realization Fund, L.P.
	The Canyon Value Realization Master Fund (Cayman), L.P.
	Canyon Value Realization Fund MAC 18, Ltd.
	Canyon Balanced Master Fund, Ltd.
	Canyon-GRF Master Fund II, L.P.
	Canyon Distressed Opportunity Master Fund II, L.P.
	EP Canyon Ltd.
	Canyon NZ-DOF Investing, L.P.
	Canyon-EDOF (Master) L.P.
		
	By:	 	/s/ Jonathan M. Kaplan
	Name:	 	Jonathan M. Kaplan
	Title:	 	Authorized Signatory

  
 [Signature
Page to Letter Agreement] 

 Accepted and agreed to as of the date first above written: 

 

			
	NAVIENT CORPORATION
		
	By:	 	/s/ John F. Remondi
	Name:	 	John F. Remondi
	Title:	 	President and Chief Executive Officer

  
 [Signature
Page to Letter Agreement] 

 ANNEX A1 

(a)    Investor agrees that during the Standstill Period, neither Investor nor any of its controlled Affiliates or
Associates nor any of their respective Representatives acting on their behalf will, and Investor will cause each of its controlled Affiliates and Associates and their respective Representatives acting on their behalf not to, directly or indirectly,
in any manner, alone or in concert with others: 
 (i)    engage in any “solicitation” (as
such term is defined under the Exchange Act) of proxies or consents with respect to the election or removal of Company directors or any other matter or proposal with respect to the Company or become a “participant” (as such term is defined
in Instruction 3 to Item 4 of Schedule 14A promulgated under the Exchange Act) in any such solicitation of proxies or consents; 

(ii)    knowingly encourage, advise or influence any other Person or knowingly assist any Person in so
encouraging, advising or influencing any Person with respect to the giving or withholding of any proxy, consent or other authority to vote or in conducting any type of referendum, binding or non-binding (other
than such encouragement, advice or influence that is consistent with the Company management’s recommendation in connection with such matter or otherwise specifically permitted under the Agreement); 

(iii)    form, join or act in concert with any “group” as defined pursuant to Section 13(d)
of the Exchange Act with respect to any Voting Securities, other than solely with other Affiliates of Investor with respect to Voting Securities now or hereafter owned by them; 

(iv)    acquire, offer, seek or agree to acquire, by purchase or otherwise, or direct any third party in
the acquisition of, any Voting Securities or assets of the Company, or rights or options to acquire any Voting Securities or assets of the Company, or engage in any swap or hedging transactions or other derivative agreements of any nature with
respect to Voting Securities, in the case of each of the foregoing, only if such action would result in Investor, together with its controlled Affiliates and Associates, having an aggregate beneficial ownership of greater than 25,649,480 shares of
Company Common Stock or economic exposure to more than 14.9% of the then-outstanding Company Common Stock immediately following the consummation of such transaction; provided, that the foregoing shall not permit Investor to make, directly or
indirectly, any private proposal, either alone or in concert with others, to the Company or the Board that would reasonably be expected to require the Company or Investor to make public disclosure (of any kind) regarding activities described above
or any of the matters set forth in this Annex A; 
  

	1 	 Capitalized terms used but not defined in this Annex A shall have the meanings given to them in this Agreement.

 (v)    sell, offer or agree to sell, all or
substantially all, directly or indirectly, through swap or hedging transactions or otherwise, voting rights decoupled from the underlying Company Common Stock held by Investor to any third party; 

(vi)    (A) make or in any way participate, directly or indirectly, in any tender offer, exchange offer,
merger, consolidation, acquisition, business combination, recapitalization, restructuring, liquidation, dissolution or other similar extraordinary transaction involving the Company or any of its subsidiaries or its or their Voting Securities or
assets (it being understood that the foregoing shall not restrict Investor from tendering shares, receiving payment for shares or otherwise participating in any such transaction on the same basis as other stockholders of the Company, or from
participating in any such transaction that has been approved by the Board); (B) make, directly or indirectly, any public proposal, either alone or in concert with others, to the Company or the Board regarding activities described in part
(A) above or any of the matters set forth in this Annex A or (C) make, directly or indirectly, any private proposal, either alone or in concert with others, to the Company or the Board that would reasonably be expected to require
the Company or Investor to make public disclosure (of any kind) regarding activities described in part (A) above or any of the matters set forth in this Annex A; 

(vii)    enter into a voting trust, arrangement or agreement or subject any Voting Securities to any
voting trust, arrangement or agreement, in each case other than solely with other Affiliates of Investor, with respect to Voting Securities now or hereafter owned by them and other than granting proxies in solicitations approved by the Board; 

(viii)    (A) seek, alone or in concert with others, election or appointment to, or representation on, the
Board or nominate or propose the nomination of, or recommend the nomination of, any candidate to the Board, (B) seek, alone or in concert with others, the removal of any member of the Board or (C) conduct a referendum of stockholders; 

(ix)    make or be the proponent of any stockholder proposal (pursuant to Rule 14a-8 under the Exchange Act or otherwise); 
 (x)    make any request
for stockholder list materials or other books and records of the Company under Section 220 of the Delaware General Corporation Law or other statutory or regulatory provisions providing for stockholder access to books and records; 

(xi)    make any public proposal with respect to (A) any change in the number or term of directors or
the filling of any vacancies on the Board, (B) any material change in the capitalization or dividend policy of the Company, (C) any other material change in the Company’s management or corporate structure, (D) any waiver,
amendment or modification to the Company’s Certificate of Incorporation or Bylaws, (E) causing a class of securities of the Company to be delisted from or to cease to be authorized to be quoted on, any securities exchange or
(F) causing a class of equity securities of the Company to become eligible for termination of registration pursuant to Section 12(g)(4) of the Exchange Act; 

  
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 (xii)    institute, solicit, assist or join any
litigation, arbitration or other proceeding against or involving the Company or any of its current or former directors or officers (including derivative actions) in order to effect or take any of the actions expressly prohibited by this Annex
A; provided, however, that for the avoidance of doubt the foregoing shall not prevent Investor or its Affiliates or Associates from (A) bringing litigation to enforce the provisions of the Agreement, (B) making
counterclaims with respect to any proceeding initiated by, or on behalf of, the Company against Investor or its Affiliates or Associates, (C) bringing bona fide commercial disputes that do not relate to the subject matter of the Agreement, or
(D) exercising statutory appraisal rights; provided, further, that the foregoing shall also not prevent Investor or any of its Affiliates or Associates from responding to or complying with a subpoena, a validly issued legal
process or a request by a governmental or regulatory authority; 
 (xiii)    enter into any
negotiations, agreements or understandings with any Person to take any action that Investor is prohibited from taking pursuant to this Annex A; 

(xiv)    make any request or submit any proposal, directly or indirectly, to amend or waive the terms of
the Agreement, in each case which would be reasonably expected to result in a public announcement or disclosure of such request or proposal; or 

(xv) make, alone or in concert with others, any proposal regarding a change with respect to the Board, the Company, its
management, policies or affairs or any of its securities, assets, business, corporate or governance structure, including with respect to any tender or exchange offer, merger, consolidation, acquisition, sale of all or substantially all assets or
sale, spinoff, splitoff or other similar separation of one or more business units, scheme of arrangement, plan of arrangement, business combination transaction, extraordinary dividend, significant stock repurchase, recapitalization, restructuring,
reorganization, liquidation, dissolution or issuance of the Company’s then-outstanding equity or equity equivalent securities (including in a PIPE, convertible note, convertible preferred security or similar structure) or other extraordinary
transaction involving the Company or any of its subsidiaries or joint ventures or any of their respective securities or a material amount of any of their respective assets or businesses, in each case that would reasonably be expected to require the
Company or Investor to make public disclosure (of any kind) regarding the activities described above or any of the matters set forth in this Annex A. 

(b)    Nothing in the Agreement or this Annex A shall be deemed to limit the actions of the New Directors in their
capacity as directors of the Company, recognizing that such actions are subject to the exercise in good faith by each of the New Directors of his or her fiduciary duties to the Company and its stockholders. 

(c)    For the purposes of the Agreement and this Annex A, the term (i) “Person” shall be
interpreted broadly to include, among others, any individual, general or limited partnership, corporation, limited liability or unlimited liability company, joint venture, estate, trust, group, association fund, syndicate or other entity of any kind
or structure and (ii) “Voting Securities” shall mean the shares of Company Common Stock and any other securities of the Company generally entitled to vote in the election of directors, or securities convertible into, or exercisable
or exchangeable for, such shares of Company Common Stock or other securities, whether or not subject to the passage of time or other contingencies. 

  
 3 

 (d)    Notwithstanding anything to the contrary in this Annex or the
Agreement, the Standstill Period shall terminate automatically (and the provisions applicable during the Standstill Period shall no longer be applicable) upon (a) any Person (other than Investor and its controlled Affiliates and Associates)
becoming the beneficial owner (within the meaning of Section 13(d)(1) of the Exchange Act) or constructive economic owner (through swaps, options, similar securities or contracts or otherwise), directly or indirectly, of more than thirty seven
and one half percent (37.5%) of the outstanding shares of Company Common Stock, (b) announcement of a tender or exchange offer by any third party (other than Investor and its controlled Affiliates and Associates) for Company Common Stock that,
if consummated, would make such Person the beneficial owner (as defined in Section 13(d)(1) of the Exchange Act) of thirty seven and one half percent (37.5%) or more of the Company Common Stock, or any rights or options to acquire such
ownership, including from a third party, but only if the Board does not publicly recommend against such tender or exchange offer within ten (10) business days of such announcement, or (c) the Company entering into one or more definitive
agreements involving the acquisition by one or more third parties of more than thirty seven and one half percent (37.5%) of the outstanding Company Common Stock or more than thirty seven and one half percent (37.5%) of the Company’s
consolidated total assets. 

  
 4 

 ANNEX B 

FORM OF PRESS RELEASE 

 

 
 NEWS RELEASE 

For immediate release 

Navient and Canyon Partners Reach Cooperation Agreement; Navient Will Add Two Experienced Directors to its Board of Directors 

WILMINGTON, Del. and LOS ANGELES, May 2, 2019—Navient Corporation (Nasdaq: NAVI) and Canyon Partners, LLC today announced that
they reached a cooperation agreement pursuant to which Navient will add two experienced directors, Marjorie Bowen and Larry Klane, to its Board of Directors as soon as practicable. Ms. Bowen is a former investment banker and Mr. Klane is a
financial technology investor and former banking executive. Both Ms. Bowen and Mr. Klane will be nominated by Navient for election at Navient’s upcoming annual meeting, scheduled for June 6, 2019. 

Under the agreement, Canyon will withdraw its nomination notice and vote in favor of directors nominated by Navient at the annual meeting. 

“We believe this agreement with Canyon is in the best interests of all Navient shareholders, and we welcome Marjorie and Larry to the board,” said
Jack Remondi, President and Chief Executive Officer. “We can now return our full focus to building on our strong first quarter results and continuing to deliver superior value for our customers and shareholders.” 

Jonathan Heller, a partner at Canyon, said, “We are pleased to have reached a settlement with Navient that adds two highly qualified directors to the
Board. We have consistently engaged in an open and constructive dialogue with management and the Board, and we look forward to continuing our productive and cooperative relationship with Navient.” 

Board Chair William M. Diefenderfer III has chosen not to stand for election at the 2019 annual meeting. Director Barry L. Williams will retire in the summer
of 2019. 
 New Director Biographies 
 Marjorie Bowen
was an investment banker with Houlihan Lokey from 1989 until 2007, serving as managing director since 1997. Ms. Bowen has served on the boards of Genesco Inc. and Harley Marine Services, Inc. since 2018 and has served as a director for V Global
Holdings, LLC since 2016. Previously, she was a director for SquareTwo Financial, a privately held company engaged in financial asset recovery and management. Ms. Bowen was also a special independent director on the board of Illinois Power
Generating Company (a subsidiary of Dynegy). Previously, Ms. Bowen served as the audit committee chair on the board of Hansen Medical, Inc. and served on the board of Global Aviation Holdings and as a director of The Talbots, Inc.
Ms. Bowen received a B.A. from Colgate University and an MBA from the University of Chicago. 
 Larry Klane is a
co-founding principal at Pivot Investment Partners LLC, an investment firm founded in 2014 focused on financial technology and financial services companies. Previously,

 
he was the global financial institutions leader at Cerberus Capital Management. He served on the Board of Directors of Aozora Bank, a publicly traded bank in Japan in which Cerberus held a
controlling interest. Mr. Klane joined Cerberus after serving as chair and CEO of Korea Exchange Bank, a publicly traded Korean commercial and retail bank of approximately $100 billion of assets. Mr. Klane held multiple leadership
roles at Capital One, including as president of the Global Financial Services division and its London-based bank subsidiary. Mr. Klane served on the board of Ethoca Limited, a privately held global network between issuers and merchants, until
the company’s recent acquisition by Mastercard, and served as a director of VeriFone Systems and Nexi Group S.p.A. Mr. Klane is a graduate of Harvard College and the Stanford Graduate School of Business. 

The full agreement between Navient and Canyon will be filed on Form 8-K with the U.S. Securities and Exchange
Commission and Navient will file supplemental proxy materials. 
 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS 

This news release contains “forward-looking statements,” within the meaning of the federal securities laws, about our business and prospects and
other information that is based on management’s current expectations as of the date of this release. Statements that are not historical facts, including statements about the Company’s beliefs, opinions or expectations and statements
that assume or are dependent upon future events, are forward-looking statements and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,”
“will,” “would,” “may,” “could,” “should,” “goal” or “target.” Forward-looking statements are subject to risks, uncertainties, assumptions and other factors that may cause actual
results to be materially different from those reflected in such forward-looking statements. For Navient, these factors include, among others, the risks and uncertainties associated with increases in financing costs; the availability of financing or
limits on our liquidity resulting from disruptions in the capital markets or other factors; unanticipated increases in costs associated with compliance with federal, state or local laws and regulations; changes in the demand for asset management and
business processing solutions or other changes in marketplaces in which we compete (including increased competition); changes in accounting standards including but not limited to changes pertaining to loan loss reserves and estimates or other
accounting standards that may impact our operations; adverse outcomes in any significant litigation to which the Company is a party; credit risk associated with the Company’s underwriting standards or exposure to third parties, including
counterparties to hedging transactions; and changes in the terms of education loans and the educational credit marketplace (including changes resulting from new laws and the implementation of existing laws). The Company could also be affected by,
among other things: unanticipated repayment trends on loans including prepayments or deferrals in our securitization trusts that could accelerate or delay repayment of the bonds; reductions to our credit ratings, the credit ratings of asset-backed
securitizations we sponsor or the credit ratings of the United States of America; failures of our operating systems or infrastructure or those of third-party vendors; risks related to cybersecurity including the potential disruption of our
systems or those of our third-party vendors or customers, or potential disclosure of confidential customer information; damage to our reputation resulting from cyber-breaches, litigation, the politicization of student loan servicing or other actions
or factors; failure to successfully implement cost-cutting initiatives and adverse effects of such initiatives on our business; failure to adequately integrate acquisitions or realize anticipated benefits from acquisitions including delays or errors
in converting portfolio acquisitions to our servicing platform; changes in law and regulations whether new laws or regulations, or new interpretations of existing laws and regulations applicable to any of our businesses or activities or those of our
vendors, suppliers or customers; changes in the general interest rate environment, including the availability of any relevant money-market index rate, 

  
 3 

 
including LIBOR, or the relationship between the relevant money-market index rate and the rate at which our assets are priced; our ability to successfully effectuate any acquisitions and other
strategic initiatives; activities by shareholder activists, including a proxy contest or any unsolicited takeover proposal; changes in general economic conditions; and the other factors that are described in the “Risk Factors” section of
Navient’s Annual Report on Form 10-K for the year ended December 31, 2018 and in our other reports filed with the Securities and Exchange Commission. The preparation of the Company’s
consolidated financial statements also requires management to make certain estimates and assumptions including estimates and assumptions about future events. These estimates or assumptions may prove to be incorrect and actual results could differ
materially. All forward-looking statements contained in this release are qualified by these cautionary statements and are made only as of the date of this release. The Company does not undertake any obligation to update or revise these
forward-looking statements except as required by law. 
 About Navient 

Navient (Nasdaq: NAVI) is a leader in education loan management and business processing solutions for education, healthcare and government clients at the
federal, state and local levels. The company helps its clients and millions of Americans achieve financial success through services and support. Headquartered in Wilmington, Delaware, Navient also employs team members in western New York,
northeastern Pennsylvania, Indiana, Tennessee, Texas, Virginia, Wisconsin and other locations. Learn more at navient.com. 
 About Canyon Partners, LLC
 
 Founded and partner owned since 1990, Canyon employs a deep value, credit intensive approach across its investment platform. Canyon specializes
in value-oriented special situation investments for endowments, foundations, pension funds, sovereign wealth funds, family offices and other institutional investors. The firm invests across a broad range of asset classes, including distressed loans,
corporate bonds, convertible bonds, securitized assets, direct investments, real estate, arbitrage, and event-oriented equities. For more information visit: www.canyonpartners.com. 

Navient Contacts: 
 Media Contacts: 

Paul Hartwick,302-283-4026, paul.hartwick@navient.com 

Jim Barron/Paul Scarpetta, Sard Verbinnen, 212-687-8080 

Investors: Joe Fisher, 302-283-4075, joe.fisher@navient.com 

Canyon Capital Contact: 
 Brian Schaffer, Prosek Partners,
646-818-9229, bschaffer@prosek.com 
 # # # 

  
 4msci-ex101_117.htm

 

 

 

Exhibit 10.1

May 15, 2018

 

Mr. Jigar Thakkar

[ADDRESS]

 

Dear Jigar:

I am pleased to extend to you a formal offer of employment at MSCI Inc. (“MSCI” or the “Firm”). Those of us who have had the opportunity to meet with you are very excited about your joining our team. Your position will be that of Managing Director, Chief Technology Officer and Head of Engineering of MSCI Inc., subject to approval of the Board of Directors of MSCI.  In this position, you will work in the New York office, be an Executive Officer and member of the Firm’s Executive Committee reporting directly to C.D. Baer Pettit, President.  Your anticipated start date is July 9, 2018.

The details of our offer are as follows:

	
1.
	
Compensation.  Your target compensation will consist of the following components:

	
 
	
•
	
Base Salary:  Your annual base salary will be $500,000, prorated from the date you commence employment and paid in semi-monthly installments. You will be eligible for an adjustment to your base salary beginning in January 2020.

Annual Incentive Plan (AIP):  You will be eligible to participate in MSCI’s Annual Incentive Plan (AIP) with a bonus target of $700,000, prorated for 2018 based on the date you commence employment.  

	
 
	
•
	
Actual AIP payments will be based on the achievement of specific annual metrics and goals aligned with your role. 

	
 
	
•
	
70% of your AIP bonus is formulaic and based on specific MSCI financial metrics aligned to your role. These metrics will be reviewed annually. 

	
 
	
•
	
30% of your AIP bonus is discretionary and tied to the attainment of key performance indicators (KPIs) goals and your performance as a leader and manager.

	
 
	
•
	
Payments, if any, under the Annual Incentive Plan are not guarantees or commitments to pay and are subject to the Firm’s performance as well as your individual performance as determined by management and the Board. All Incentive plan payments are contingent upon satisfactory performance and conduct and you must remain employed through the payment date.

 

 

1

 

 

 

	
 
	
•
	
Long- Term Incentive Plan:  You will be eligible to receive a discretionary equity award pursuant to MSCI’s Long Term Incentive Plan (LTIP).  You will be eligible for your first annual LTIP award in February 2019.

	
 
	
•
	
Your LTIP target is $1,300,000. The design of your LTIP will be aligned to other Executive Committee members with the same mix of equity vehicles, terms and performance period. Equity awards, if any, will be made pursuant to the terms of the applicable plan and are governed by such plan and applicable grant agreements approved by the Board. 

	
 
	
•
	
Special Restricted Stock Unit (RSU) Awards: You will be granted a special RSU award with an aggregate value of $3,000,000.

	
 
	
•
	
On your start date, you will be granted an equity based award of MSCI RSUs valued at $1,500,000. The number of restricted stock units you will receive will be determined by dividing the award value by the closing price of MSCI common stock on the day before the grant date rounded down to the nearest whole share. Your restricted stock units will vest 25% per year over a four year period starting on the first anniversary of the grant date.

	
 
	
•
	
On or about the first (1st) anniversary of your start date, you will be granted an equity based award of MSCI RSUs valued at $1,000,000. The number of restricted stock units you will receive will be determined by dividing the award value by the closing price of MSCI common stock on the day before the grant date rounded down to the nearest whole share. Your restricted stock units will vest 25% per year over a four year period starting on the first anniversary of the grant date.

	
 
	
•
	
On or about the second (2nd) anniversary of your start date, you will be granted an equity based award of MSCI RSUs valued at $500,000. The number of restricted stock units you will receive will be determined by dividing the award value by the closing price of MSCI common stock on the day before the grant date rounded down to the nearest whole share. Your restricted stock units will vest 25% per year over a four year period starting on the first anniversary of the grant date.

	
2.
	
Make Whole Transition Compensation. We will provide the following to compensate you for compensation you will forfeit from your prior employer:

	
 
	
•
	
Forfeited Cash Bonus - You will receive a one-time cash bonus of $500,000 less applicable withholdings and deductions, payable within 30 days after your hire date. If you voluntarily resign or are terminated for cause prior to the first anniversary of your hire date, you agree to repay 100% of the one-time cash bonus within thirty (30) days of providing such notice of resignation or receiving such notice of termination.

	
 
	
•
	
Forfeited LTI Vesting in August 2018 - You will receive a one-time cash bonus of $1,350,000 less applicable withholdings and deductions, payable within 30 days after your hire date. If you voluntarily resign or are terminated for cause prior to the first anniversary of your hire 

2

 

 

 

	
 
		
date, you agree to repay 100% of the one-time cash bonus within thirty (30) days of providing such notice of resignation or receiving such notice of termination.

	
 
	
•
	
Forfeited LTI Vesting in 2019, 2020 and 2021 - On your start date, you will be granted an equity based award of MSCI RSUs valued at $1,760,000. The number of restricted stock units you will receive will be determined by dividing the award value by the closing price of MSCI common stock on the day before the grant date rounded down to the nearest whole share. Your restricted stock units will vest 33% per year over a three year period starting on the first anniversary of the grant date.

All LTIP payments are contingent upon your remaining employed through the vesting dates, unless you terminate employment due to death or disability or involuntary termination without cause and are subject to your compliance with the restrictions, terms, and conditions of the award and plan provisions (including, without limitation, the cancellation provisions).

Any equity awards and other incentive compensation that you may receive from MSCI will contain restrictive covenants with respect to non-competition, non-solicitation, non-hire, non-disparagement, notice requirements and other restrictions that you must comply with, including after any resignation or termination of your employment with MSCI.  Exhibit 1 is an example of the restrictive covenants contained in equity awards. 

All payments are subject to applicable withholdings and deductions and you are responsible for payment of any applicable taxes that are not withheld.  If any provision of this offer letter fails to satisfy the requirements of Section 409A of the Internal Revenue Code or any regulations or Treasury guidance promulgated thereunder, or would result in your recognizing income for United States federal income tax purposes with respect to any amount payable hereunder before the date of payment, or to incur interest or additional tax pursuant to Section 409A, MSCI reserves the right to reform such provision; provided that MSCI shall maintain, to the maximum extent practicable, the original intent of the applicable provision without violating the requirements of Section 409A.

	
3.
	
Relocation Allowance.  You will receive a one-time cash bonus of $500,000 less applicable withholdings and deductions, payable within 30 days after your hire date to cover all relocation, living and commuting expenses you may incur for you and your family’s relocation from Seattle to New York. If you voluntarily resign or are terminated for cause prior to the first anniversary of your hire date, you agree to repay 100% of the one-time cash bonus within thirty (30) days of providing such notice of resignation or receiving such notice of termination.

	
4.
	
Executive Destination Services.  The Company will contract with a vender to provide you services that include neighborhood tours, home search and school search assistance. 

	
5.
	
Spousal Job Search Assistance.  The Company will contract with a vender to provide your spouse with 3 months of job search assistance. 

	
6.
	
Severance.  As a member of the Executive Committee, in the event of an involuntary not-for-cause termination, you are eligible for lump sum payment equal to one times the sum of annual 

3

 

 

 

		
base salary and target bonus plus a prorated cash bonus for the year of term. Based on the current terms of LTIP awards, all outstanding equity would vest.

	
7.
	
Change in Control Severance.  As a member of the Executive Committee, in the event of an involuntary not-for-cause termination after a Change in Control, you are eligible for lump sum payment equal to two times the sum of annual base salary and target bonus plus a prorated cash bonus for the year of term. Based on the current terms of LTIP awards, all outstanding equity would vest.

	
8.
	
Ownership Policy.  As an Executive Officer, you are required to own 3X your base salary in Company stock within five years of the date of hire. Until the expected stock ownership level is achieved, you are required to hold stock with a value of 50% of the estimated after-tax net proceeds upon the vesting of equity awards. Executive Officers may be subject to additional holding requirements under the terms of individual equity awards.

	
9.
	
Vacation.  You will be eligible for 30 days of vacation, pro-rated from your date of hire.  Vacation must be taken at a time that is mutually agreed upon by you and your manager.  We ask that you request your vacation time with as much advance notice as possible.  Vacation days do not carry over from year to year.

	
10.
	
Group Benefits.  You will be eligible for benefits as follows:

	
 
	
•
	
Health and welfare benefits (medical, dental, vision, life, accident and disability insurance) are generally available retroactive to the date you commence employment, provided that you complete your benefits elections within the 31-day enrollment period.  Please see the enclosed benefits enrollment materials.

	
 
	
•
	
Upon your date of hire, you will be automatically enrolled in the MSCI 401(k) Retirement Savings Plan.   Prior to your first contribution, you will have an opportunity to change your election or opt out of the Plan.  MSCI matches 80% of your contribution (up to 6% of your salary) plus provides a Safe Harbor contribution of 3% of your total eligible cash compensation. You will be 100% vested in all employer contributions after two years of service.

	
 
	
•
	
In the event of any conflict between this letter and/or any oral statement regarding our benefits, the Summary Plan Descriptions will control.  

	
11.
	
Policies.  You agree to comply with all Firm policies and procedures in effect from time to time, including, without limitation, with respect to conduct, privacy, security, confidential and proprietary information, inventions, technology, securities trading and occupational health and safety.  You understand and agree that unless you are granted a waiver in writing by the Legal and Compliance Department you may be required, upon the commencement of employment, to transfer any brokerage/securities accounts that you may influence or control to a designated institution for surveillance and review by the MSCI Legal and Compliance Department and that certain restrictions and requirements may be imposed on your trading in any such accounts.  

4

 

 

 

		
Additionally, you must disclose to MSCI all other business activities that you engage in, which will be subject to review and approval by the MSCI Legal and Compliance Department. 

	
12.
	
Representations and Warranties.  You represent and warrant that:

	
 
	
•
	
You have the right to be employed by MSCI and you are not a party to any employment agreement or other contract, and are not otherwise subject to any obligation or restriction, that prohibits or limits your full time employment with MSCI or is otherwise inconsistent with your accepting this offer of employment and performing your duties, and you do not know of any conflict or other constraint that would restrict your employment with MSCI.  

	
 
	
•
	
In connection with your employment by MSCI you will not violate any non-compete, non-solicitation, non-hire or other restrictive covenant or continuing obligation to any former employer or other third party.

	
 
	
•
	
You have not directly or indirectly solicited for hire, induced or encouraged any employee (or consultant or independent contractor to) of your current or former employer to leave their employer or position or to join or perform services for any other company (including MSCI). 

	
 
	
•
	
You have not directly or indirectly solicited, induced or encouraged any entity or person who is a customer or client of your current or former employers to cease to engage the services of any such employer or to use the services of any entity or person that competes directly with a material business of any such employer.

	
 
	
•
	
You have or will give timely notice of resignation to any current employer as required under any applicable contract, policy or law, and you have not retained and will not retain original records or copies of any confidential or proprietary information of your former employers.

	
 
	
•
	
In the course of your employment with the Firm you will not make any unauthorized use or disclosure of documents or other information that are the confidential, trade secret or proprietary information of another individual or company (“Third Party Confidential Information”).  You will not bring onto the Firm’s premises or network any Third Party Confidential Information, including relating to your prior employers or positions.  

	
13.
	
Conditional Offer.  This offer is contingent upon a number of additional steps in the employment process including, but not limited to, background and reference checking.  Enclosed is a new-hire kit that contains personnel forms that need to be completed and brought with you on your first day of work.  You must also bring with you government-issued photo identification, such as a valid passport or a driver's license. 

You are required by law to show appropriate proof of authorization to commence work in the United States and that you possess all licenses and registrations necessary for your position, if any.  We ask that you complete Part 1 of the Form I-9, on or before your first day of work (see, in the attached packet, a list of the type of documentation we will need).  If you are not legally able to work for the Firm in the United States in the position offered to you, or if any part of the screening process proves unsatisfactory to the Firm or you are unable to complete Part 1 of the 

5

 

 

 

Form I-9, the Firm reserves the right to rescind any outstanding offer of employment or terminate your employment without notice or severance benefits and rescind any equity or other awards described herein.

You confirm that the information provided on your resume and application form, and the information you have provided orally to MSCI during the interview process, is complete and accurate.  You understand that a false statement or omission with the intent to mislead MSCI can disqualify you from employment and is grounds for dismissal for cause if discovered after you are employed by MSCI.

In accepting this position with MSCI, you acknowledge that your employment is on an at will basis and for an unspecified duration.  Neither this offer letter nor any oral representations shall confer any right to continuing employment.  Either you or MSCI may terminate your employment relationship at any time, with or without cause.  You further understand that neither job performance, promotions, accommodations, salary, bonuses nor the like shall imply any obligation on the part of MSCI to continue your employment.  It is expressly agreed that any payments or awards do not create an obligation of, nor entitlement to, future payments or awards by the Firm.  Nothing in this letter should be construed as a guarantee of any particular level of compensation or benefits or of your participation in any compensation or benefit plan.  MSCI reserves the right to amend, modify or terminate, in its sole discretion, all compensation and benefit plans in effect from time to time.  

	
14.
	
Entire Agreement.  This offer letter constitutes the entire understanding and contains a complete statement of all agreements between you and MSCI and supersedes all prior or contemporaneous oral or written agreements, understandings or communications (including, without limitation, any term sheet or other summary writing relating to your employment).   You acknowledge that you have not relied on any assurance or representation not expressly stated in this offer letter.  

We ask that you confirm your acceptance of this offer by signing and dating this letter in the area designated below and returning this letter via email to [NAME] ([EMAIL]) at MSCI Human Resources. Your signature below confirms that you understand and agree with the contents of this offer letter and that you are subject to no contractual or other restriction or obligation that is inconsistent with your accepting this offer of employment and performing your duties. Please retain the additional copy of this offer letter for your reference.

We are very excited to offer you a position with MSCI and look forward to you joining us.  

Sincerely,

 

	
	
/s/ Scott Crum

	
Scott Crum

	
Chief Human Resources Officer

 

Offer Accepted and Agreed To:

 

	
Signed:
	
/s/ Jigar Thakkar

6

 

 

 

	
 
	
Jigar Thakkar

 

		
	
Date:
	
5/15/2018

7

 

 

 

Exhibit 1

RESTRICTIVE COVENANTS

Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to them in the Award Agreement.

Section 1.Confidential Information; Assignment of Inventions. (a)  During your employment or service with the Company and at all times thereafter, you agree to keep secret and retain in strictest confidence and trust for the sole benefit of the Company, and shall not disclose, directly or indirectly, or use for your benefit or the benefit of others, without the prior written consent of the Company, any Confidential Information. For purposes of this Exhibit B and the Award Agreement, “Confidential Information” shall mean all proprietary or confidential matters or trade secrets of, and confidential and competitively valuable information concerning, the Company (whether or not such information is in written form). Without limiting the generality of the foregoing, Confidential Information shall include: information concerning organization and operations, business and affairs; formulae, processes, technical data; “know-how”; flow charts; computer programs and computer software; access codes or other systems of information; algorithms; technology and business processes; business, product or marketing plans or strategies; sales and other forecasts; financial information or financing/financial projections; lists of clients or customers or potential clients or customers; details of client or consultant contracts; supplier or vendor lists or arrangements; business acquisition or disposition plans; employee information, new personnel acquisition plans and information relating to compensation and benefits; budget information and procedures; research products; research and development; all data, concepts, ideas, findings, discoveries, developments, programs, designs, inventions, improvements, methods, practices and techniques, whether or not patentable, relating to present or planned future activities or products or services; and public information that becomes proprietary as a result of the Company’s compilation of that information for use in its business; provided, however, that the Confidential Information shall in no event include (x) any Confidential Information which was generally available to the public at the time of disclosure by you or (y) any Confidential Information which becomes publicly available other than as a consequence of the breach by you of your confidentiality obligations hereunder or under any other confidentiality agreement you have entered into with the Company, if any.  In the event of a termination of your employment or service with the Company for any reason, you shall deliver to MSCI all documents and data pertaining to the Confidential Information and shall not take with you any documents or data of any kind or any reproductions (in whole or in part) or extracts of any items relating to the Confidential Information.  Nothing contained in this Section 1 of this Exhibit B shall prohibit you from disclosing Confidential Information if such disclosure is required by law, governmental process or valid legal process.  Unless you are reporting a possible violation of law to a governmental entity or law enforcement, making a disclosure that is protected under the whistleblower protections of applicable law and/or participating in a governmental investigation, in the event that you are legally compelled to disclose any of the Confidential Information, you shall provide MSCI with prompt written notice so that MSCI, at its sole cost and expense, may seek a protective order or other appropriate remedy or waive compliance with the provisions of this Section 1 of this Exhibit B.  If such protective order or 

8

 

 

 

other remedy is not obtained, or if the Company waives compliance with the provisions of this Section 1, you shall furnish only that portion of the Confidential Information that you in good faith believe is legally required to be disclosed. In addition to the foregoing, and subject to the second preceding sentence, you hereby agree to comply with the requirements of any and all agreements that you have entered into, or may in the future enter into, with the Company with respect to the use or disclosure of confidential or proprietary information of the Company.  

(b)All rights to discoveries, inventions, improvements and innovations, copyright and copyrightable materials (including all data and records pertaining thereto) related to the business of the Company, whether or not patentable, copyrightable, registrable as a trademark or reduced to writing, that you may discover, invent or originate during your employment or service with the Company or any predecessor entity, either alone or with others and whether or not during working hours or by the use of the facilities of the Company (collectively, “Inventions”), shall be the exclusive property of the Company, and you hereby irrevocably assign all right, title and interest in and to all Inventions to the Company.  You shall promptly disclose all Inventions to the Company, shall execute at the request of the Company any assignments or other documents that the Company may deem necessary to protect or perfect the rights of the Company therein, and shall assist the Company, at the Company’s expense, in obtaining, defending and enforcing the Company’s rights therein.  You hereby appoint the Company as your attorney-in-fact to execute on your behalf any assignments or other documents deemed necessary by the Company to protect or perfect its rights to any Inventions.

Section 2.Non-Compete.  During your employment or service with the Company and for a period of one year following the termination of your employment or service with the Company for any reason (the “Non-Compete Restricted Period”), you shall not, without the consent of the Company, directly or indirectly, provide services to, accept employment with, be a consultant or advisor to, form, lend financial support to, own any interest in (other than shares of a publicly traded company that represent less than 1% of the outstanding shares) or otherwise enter into any arrangement with, or engage in any activity for or on behalf of, any person, entity or business in competition with the MSCI Business (the “Competing Business”); provided, however, that the foregoing will not prohibit you from accepting or beginning employment with any company that, as part of its overall business model, engages in one or more of the Competing Businesses, provided that you (x) do not directly provide assistance to any of the Competing Businesses in the form of day-to-day responsibility for any aspect of the operation, supervision, compliance or regulation of any of the Competing Businesses or (y) provide only administrative, non-operational assistance to any such Competing Business and it is an immaterial part of such company’s overall business. For purposes of this Exhibit B and the Award Agreement, “MSCI Business” means any business engaged in, contemplated or actively planned by the Company as of the date of your termination of employment that you were actively providing services to such line of business during your employment with MSCI.

Section 3.Non-Solicit and No-Hire.  During your employment or service with the Company and for a period of two years following the termination of your employment or service with the Company for any reason (the “Non-Solicit Restricted Period”), you shall not, directly or indirectly, (a) solicit or encourage any employee of the Company to terminate his or her employment with the Company, (b) hire any employee of the Company prior to the date on which such person has not been employed by the Company or any of its Subsidiaries for a period of at 

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least one year or (c) induce or attempt to induce any customer, client, supplier, vendor, licensee or other business relationship of the Company to cease doing or reduce their business with the Company, or in any way interfere with the relationship between the Company and any customer, client, supplier, licensee or other business relationship of the Company.

Section 4.Non-Disparagement.  At all times during your employment or service with the Company and after termination of your employment or service with the Company for any reason, you will not knowingly make any statement, written or oral, that would disparage the business or reputation of the Company or its officers, managers, directors or employees. It will not be a violation of this Section 4 for you to make truthful statements, under oath, as required by law, to a governmental entity or law enforcement agency or as part of a litigation or administrative agency proceeding.

Section 5.Certain Remedies. You acknowledges that the terms of this Exhibit B are reasonable and necessary in light of your unique position, responsibility and knowledge of the operations of the Company and the unfair advantage that your knowledge and expertise concerning the business of the Company would afford a competitor of the Company and are not more restrictive than necessary to protect the legitimate interests of the Company.  If the final judgment of a court of competent jurisdiction, or any final non-appealable decision of an arbitrator in connection with a mandatory arbitration, declares that any term or provision of this Exhibit B or the Award Agreement is invalid or unenforceable, the parties agree that the court or arbitrator making the determination of invalidity or unenforceability shall have the power to reduce the scope, duration, or geographic area of the term or provision, to delete specific words or phrases, or to replace any invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, and this Exhibit B and the Award Agreement shall be enforceable as so modified after the expiration of the time within which the judgment or decision may be appealed.  You acknowledge that the Company and its shareholders would be irreparably harmed by any breach of this Exhibit B and that there would be no adequate remedy at law or in damages to compensate the Company and its shareholders for any such breach.  You agree that MSCI shall be entitled to injunctive relief, without having to post bond or other security, requiring specific performance by you of your obligations in this Exhibit B in addition to any other remedy to which the Company is entitled at law or in equity, and you consent to the entry thereof. You agree that the Non-Compete Restricted Period and the Non-Solicit Restricted Period, as applicable, shall be extended by any and all periods during which you are in breach of ‎this ‎Exhibit B.

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