EFTA01079016

CONFIDENTIAL Valuation Analysis of Rockefeller Financial Services, Inc. as of December 31, 2015 Berkshire Capital EFTA01079016 Rockefeller Financial Services, Inc. Table of Contents TAB SECTION PAGE I Valuation Letter 1 II Market & Industry Overview 4 III Valuation Methodologies 12 IV Valuation Model Berkshire Capital CONFIDENTIAL EFTA01079017 Rockefeller Financial Services, Inc. Valuation Letter Pursuant to an engagement letter dated October 9, 2015 between Rockefeller Financial Services, Inc. (the "Company" or "RFS") and Berkshire Capital Securities LLC ("Berkshire Capital"), Berkshire Capital has prepared a valuation of the Company with its consolidated subsidiaries (the "Valuation") as of December 31, 2015 (the "Reference Date"). We understand that the Valuation will be used by the Company to establish a value for both the Class A (Voting) and the Class B (Non-Voting) shares of RFS as of the Reference Date. The Valuation was completed in a manner consistent with the requirements of: (i) the Shareholders' Agreement, by and among RFS, the Family Trust established under Indenture dated December 21, 1979 (the "Family Trust") and the Shareholders named therein, dated as of February 1, 1991 as amended and supplemented to date; (ii) the Stockholders Agreement dated as of May 29, 2012 and effective as of September 28, 2012 among RFS, the Family Trust and RIT Capital Partners plc ("RIT"); and (iii) the Resolution adopted by the RFS Compensation Committee on January 8, 2009 on fair market methodology. The valuation standard is nonmarketable minority interest, where the analysis presumes the continued operation of the business as a going concern without a sale of the assets or businesses of the Company. Berkshire Capital is a private investment bank that focuses exclusively on providing financial advisory services to the investment management and securities industries. Berkshire Capital, as a customary part of its investment banking business, is regularly engaged in the valuation of financial services companies in connection with mergers and acquisitions, and valuations for estate, corporate and other purposes. Since inception in 1983, Berkshire Capital has acted as financial advisor in over 310 transactions with an aggregate value exceeding $10 billion. Over this period, Berkshire Capital has rendered over 275 valuations, strategic reviews and fairness opinions for publicly traded and privately owned financial services firms. For purposes of the estimate of value set forth herein, we have: (i) reviewed certain audited financial statements, unaudited financial statements, organizational documents and other financial and operating data provided by the management of the Company; (ii) discussed the businesses, financial condition, recent results of operations and the prospects of the Company with senior management; (iii) compared certain financial information for the Company with similar information for certain other companies the securities of which are publicly traded; (iv) reviewed the financial terms, to the extent publicly available or otherwise available to Berkshire Capital due to its role as financial advisor to one of the parties to the transaction, of certain mergers and acquisitions of companies which we deemed to be relevant to the Valuation of the Company; and (v) performed such other analyses and considered such other information as we deemed appropriate. We have assumed and relied upon, without independent verification, the accuracy and completeness of all of the information reviewed by us for purposes of this Valuation, and we have assumed no responsibility for and did not conduct any independent verification of the information. In that regard, we have assumed that the information relating to the prospects of the Company were reasonably prepared on a basis reflecting the best currently available judgments and estimates of senior management. Berkshire Capital Page 1 EFTA01079018 Rockefeller Financial Services, Inc. Valuation Letter In connection with the preparation of this Valuation, we performed a variety of financial analyses. Our Valuation conclusions are based upon various determinations as to the most appropriate and relevant methods of financial analysis and the application of these methods to the particular circumstances. In performing our analyses, we made numerous assumptions with respect to industry performance, general business and economic conditions and other matters, many of which are beyond the control of the Company. The analyses performed by us are not necessarily indicative of future values or future results that might be achieved, all of which may be more or less favorable than that suggested by such analyses, and such analyses and estimates are inherently subject to substantial uncertainty. With respect to the analysis of guideline publicly traded companies and the analysis of guideline acquisitions, an evaluation of the results of those analyses is not entirely mathematical. Accordingly, an analysis of guideline publicly traded companies and guideline acquisitions necessarily involves complex considerations and judgments concerning financial and operating characteristics and other factors that could affect the public trading values or announced transaction values, as the case may be, of the companies being analyzed. Our estimate of value is based on all relevant financial information, operating data and market, economic and other conditions as of the Reference Date that was available to us as of the date hereof. Events occurring after the Reference Date could materially affect the assumptions and conclusions contained in this Valuation. Neither Berkshire Capital nor the individuals involved in the preparation of this Valuation on behalf of Berkshire Capital have any present or contemplated future interest in the Company. This Valuation has been prepared solely for the internal use of the Company and is not intended for dissemination to, and may not be relied upon by, persons other than the senior management of the Company. Neither the contents of this report, nor its conclusions, may be disclosed, referred or communicated in whole or in part to any third party for any purpose whatsoever except with our written consent in each instance. In furnishing this report, we do not admit that we are experts on the securities laws of any foreign or domestic jurisdiction. Berkshire Capital Page 2 EFTA01079019 Rockefeller Financial Services, Inc. Valuation Letter Based on the foregoing, and the other matters discussed in greater detail in this report, we are of the opinion that, as of the Reference Date, the value of the Company on a non-marketable minority interest basis is $188.9 million. Very truly yours, Berkshire Capital Securities LLC By: R. Bruce Cameron President January 23, 2016 Berkshire Capital Page 3 EFTA01079020 Rockefeller Financial Services, Inc. Market & Industry Overview Throughout 2015, the market generally has continued the broad-based rally that started in the summer of 2011, with a brief decline between August and October. As of the end of December 2015, the market has gained 202.1% since its 2009 low. Year over year, the market was relatively flat, with the market falling 0.7% from the end of December 2014 to the end of December 2015. S&P 500 Index 60% Fannie Mae, Freddie Mac Conservatorships Lehman Bankruptcy, Merrill Sale 40% WaMu Failure First AIG Bailout Bear Stearns/ Credit Markets Seize JP Morgan TARP Enacted 20% Citigroup Loss Sharing Deal 0% -20% -40% -60% 045 01 01 OS 01, 101v09 0 9 v10.1 0 vec,10 1% oec1% 11- Oec;1.1 1-5 l e• OytAa Oec.1$ Vec 'Dec \O°. Oec: )O<%- Oe°' 1%>('" Berkshire Capital Page 4 EFTA01079021 Rockefeller Financial Services, Inc. Market & Industry Overview In 2015, market performance in AUM, revenue and pre-tax income growth varied for each participant, and, while some investment management firms experienced strong growth, others encountered steep declines in 2015. Trends in AUM, Revenues & Pre-Tax Income, 2Q14 - 2Q15 Growth Rates, 2Q14 - 2Q15 Pre-Tax Firm AUM Revenues Income Affiliated Managers Group, Inc. 5.9% 6.8% 12.0% BlackRock, Inc. 2.8% 3.9% 5.0% Calamos Asset Management Inc. -5.1% -14.1% -48.0% Cohen & Steers, Inc. -4.1% 3.2% -4.1% Diamond Hill Investment Group 17.8% 24.3% 50.8% Eaton Vance Corp. 8.8% 2.3% 6.1% Federated Investors, Inc. -0.6% 2.2% 3.5% Franklin Resources, Inc. -5.9% -0.5% 2.0% GAMCO Investors, Inc. -8.0% -8.5% -18.9% Invesco Ltd. 0.1% 0.9% 0.4% Janus Capital Group Inc. 8.3% 13.2% 17.4% Legg Mason, Inc. -0.7% 2.0% 3.1% Manning & Napier, Inc. -20.3% -4.8% 84.1% Pzena Investment Management, Inc. 3.7% 9.5% 1.3% T. Rowe Price Group, Inc. 4.7% 9.9% 8.3% Virtus Investment Partners, Inc. -14.6% -3.7% -18.6% Waddell & Reed Financial, Inc. -11.0% 3.9% -1.1% Westwood Holdings Group, Inc. 15.0% 17.3% 13.6% MEAN -0.2% 3.8% 6.5% MEDIAN -0.2% 2.8% 3.3% Source: SNL Database Berkshire Capital Page 5 EFTA01079022 Rockefeller Financial Services, Inc. Market & Industry Overview Median Publicly Traded Investment Management Multiples' 20.0x 18.0x 16.0x 14.8x 14.0x 12.9x 12.7x 12.0x 11.0x 10.2x 10.0x 9.3x 8.0x 6.0x 4.3x 3.8x 4.0x 3.2x 2.0x 0.0x Median Price-to-Current Fiscal Year Median Price-to-Forward Fiscal Year Median Price-to-Current Fiscal Year Pre-Tax Income Pre-Tax Income Revenues • December 2013 • December 2014 tv December 2015 I 2013 multiples include the following firms: APAM, BPFH, CLMS, CNS, DHIL, EV, GBONS, PZN, SAMG, VRTS, WDR and WHG. 2014 multiples include the following firms: APAM, BPFH, CLMS, CNS, DHIL, EV, GBL, JNS, PZN, SAMG, VRTS, WDR and WHG. 2015 multiples include APAM, BPFH, CLMS, CNS, OHIL, EV, GSL, INS, PZN, SAMG, VRTS, WDR and WHG. Berkshire Capital Page 6 EFTA01079023 Rockefeller Financial Services, Inc. Market & Industry Overview Earnings estimates have rebounded from their 2009 lows due to the sustained market rebound and an increasingly optimistic economic outlook. However, estimates remain volatile due to uncertainty around U.S. fiscal policy and the global economic recovery, with fourth quarter 2015 estimates decreasing in the face of this uncertainty. Forward EPS Estimates — T. Rowe Price Forward EPS Estimates — Franklin Resources $6.00 - $4.50 5.50 - 4.00 5.00 - 3.50 4.50 - 4.00 - 3.00 3.50 - 2.50 3.00 - 2.00 2.50 - 2.00 1.50 1.50 1.00 1.00 0.50 0.50 0.00 0.00 N 1-t. :15 Oe~1S 1. pe~O9 O PQt.1 1 cyte--/' Pr •O lot cm, c...9 6: pe~09 tx`) No pc1-\ ye( 11 "<- I XY (Ya tx‘M, ixol v ac' Source: SNL Database, Berkshire Capital research Berkshire Capital Page 7 EFTA01079024 Rockefeller Financial Services, Inc. Market & Industry Overview While investment manager five-year EPS growth expectations increased throughout the first three quarters of 2014, expectations have declined from the fourth quarter of 2014 and throughout 2015 due to increased uncertainty in the global economy. Five-Year Estimated EPS Growth Rates — Investment Managers 20% 18% 16% 14% 12% 10% 100114 8% 6% sil)Nov"):40Ned).S.2.0) G.1 1. /,:•S G.0 sPt %.5 S5 .S5 c:N•C" kl% o kik .0 se oe kika No se oe osc Or 40 cog% 02S- ov s oe Ranges defined by 25th and 75th percentile projected growth rates. Index includes AMG, APAM (as of 3/13), ART (3/11through 12/12), BEN, BLK, CLMS, CNS, EPHC (3/11 through 11/12), EV, FII, GBL, GROW (3/11through 4/12), IVZ, JNS, LM, MN (as of 6/12), OMAM (as of 10/14), PZN, SAMG (as of 9/13), TROW and WDR. Source: SNL Database, Berkshire Capital research Berkshire Capital Page 8 EFTA01079025 Rockefeller Financial Services, Inc. Market & Industry Overview After steadily rising since 2011, multiples began a steady decline in the second half of 2014 and into 2015, with investment managers currently trading at LTM pre-tax of 8.1x— 10.0x as of December 2015, compared to 10.2x— 12.3x one year ago. Price / LTM Pre-Tax Multiples — Investment Managers 25.0x 20.0x 15.0x 10.0x 5.0x 0.0x 1 11 •ys. .‘"S. c, \,1, 1. x.1 1 c,*11. '3 0) et,"1.$ e.S% t < O -%.11e‘secAPIvac Sell tpc'15 SIsec ' v.e.•'15 :15 't oe v. oe sey Ranges defined by 25th and 75th percentile Price / LTM Pre-Tax Multiples. Index includes AMG, APAM (as of 3/13), ART (3/11 through 12/12), BEN, BLK, CLMS, CNS, EPHC (3/11 through 11/12), EV, File GBL, GROW (10/09 through 4/12), IVZ_INS, LM, MN (as of 6/12), OMAM (as of 10/14), PZN, SAMG (as of 9/13), TROW and WDR. Source: SNL Database, Berkshire Capital research Berkshire Capital Page 9 EFTA01079026 Rockefeller Financial Services, Inc. Market & Industry Overview When viewed on a forward-looking basis, relative valuations increased steadily throughout 2012 and 2013 but fell slightly in 2014 and continued to decline in 2015. At the end of December 2015, firms were valued at 7.5x — 10.2x forward fiscal year projected pre- tax income, compared to 9.7x — 12.4x one year ago. Price / Forward Fiscal Year Projected Pre-Tax Multiples — Investment Managers 20.0x 16.0x 12.0x 8.0x II Ilvi I woo II 4.0x 0.0x r1))- „11. e;11- „.1 1- e:O c% /4 ^ AP% A S C1 f. S C1 /4 ( .S5 A SS ^N S c. SS ‘,10 \\Y - SeX ‘.40' \%)•- CAT 0e - kVb' S - O2/ ‘‘I• sex roe= tp: \a, - sex vs= Ranges defined by 25th and 75th percentile Price / Forward Fiscal Year Pre-Tax multiples. Index includes AMG, APAM (as of 3/13), ART (3/11 through 12/12), BEN, BLK, CLMS, CNS, EPHC (3/11 through 11/12), EV, FII, GBL, GROW (10/09 through 4/12), IVZ, JNS, LM, MN (as of 6/12), OMAM (as of 10/14), PZN, SAMG (as of 9/13), TROW and WDR. Source: SNL Database, Berkshire Capital research Berkshire Capital Page 10 EFTA01079027 Rockefeller Financial Services, Inc. Market & Industry Overview Investment managers have experienced a decline in market performance in 2015. As of the end of December 2015, equity managers were down 19.2% relative to their December 2014 levels, while fixed income managers were down 10.4% over the same period. Banks, in comparison, were only down 1.6% relative to their December 2014 levels. Indexed Stock Price Performance 100% 75% - 50% 25% 0% -25% -50% ISS IN IN O. 1O.vIN 'O tit (,„ O- A1- A.1- SSS AS NS ND'A"' ND• seoscs.N NS -te N2pio NS yt • O -sec, O6-Oev NS NS .0e ce tt..9‘,P pc pe t p t so NV' ce 07.4 O6Oecov$84 oat Ovisi, —Equity Firms (BEN, JNS, TROW) Fixed Income Firms (BLK, EV, FII) —S&P 500 —KBW Bank Index Source: Bloomberg Berkshire Capital Page 11 EFTA01079028 Rockefeller Financial Services, Inc. Valuation Methodologies LEVELS OF VALUE In general, a security can be valued on one of three levels: control interest value; marketable minority interest value; or nonmarketable minority interest value! • A control interest value represents the value of the enterprise as a whole, as if the enterprise were sold to a hypothetical buyer. The control interest value can be derived directly from the valuation multiples paid for comparable companies in recent acquisition transactions or indirectly by applying control premiums paid in recent acquisitions of comparable publicly traded companies to the current valuation multiples of comparable companies the securities of which are currently publicly traded.; • A marketable minority interest value reflects quoted prices on a stock exchange or in the over-the-counter market. • The nonmarketable minority interest value of a privately held company reflects the value of a security for which there is no active market or other ability to convert readily into cash or cash equivalents. By definition, these interests lack indicia of control over the affairs of the subject company. Levels of Value 4 Relevant Market Data Control Value Guideline Acquisitions CONTINUUM OF VALUE Discount for Lack of Premiums Paid in Acquisitions of Public Control Premium Control Companies Freely Traded Minority Interest Value Guideline Publicly Traded Companies Restricted Stock Studies; Proprietary Marketability Discount Analysis Nonmarketable Minority Interest Value 2 Abrams, Jay B., Quantitative Business Valuation, McGraw-Hill, 2001. Hitchner, James R., Financial Valuation: Applications and Models, John Wiley & Sons, 2003. 4 Mercer, Z. Christopher, Quantifying Marketability Discounts, Peabody Publishing, 2001. Berkshire Capital Page 12 EFTA01079029 Rockefeller Financial Services, Inc. Valuation Methodologies VALUATION METHODOLOGIES Current valuation theory encompasses three distinct approaches: the income, market and asset-based (or cost) approaches to valuation.s4 • The income approach involves discounting projected cash flows and terminal value at an appropriate discount rate. • The market approach involves capitalizing earnings, revenues, cash flow or other measures at multiples drawn from current market valuations of publicly traded companies or recent acquisition transactions. • The asset-based approach involves marking to market tangible and intangible assets. Berkshire Capital's valuation model focuses on the income and market approaches and derives indicated values from (1) current market multiples for publicly traded investment management firms; (2) transaction multiples for recent acquisitions of investment management firms; and (3) a discounted cash flow analysis incorporating the current financial condition and prospects of the subject company. The asset-based approach is not considered to be relevant in most cases due to (i) the characteristics of the investment management industry and (ii) the fact that the asset-based approach is primarily used when valuing not-for-profit organizations, holding companies, manufacturing companies, asset-intensive companies, such as family limited partnerships, or companies in bankruptcy proceedings.$) MARKET APPROACH The market approach is based on the premise that the fair market value of securities for which no trading market exists can be inferred from recent sales of securities of guideline companies. These sales can take the form of (i) trades of minority interests of registered securities on a securities exchange or in the over-the-counter market and (ii) the sale of control in mergers or acquisitions. For purposes of this Valuation, Berkshire Capital applied guideline publicly traded company multiples of current fiscal year (2015E) pre-tax income, forward fiscal year (2016E) pre-tax income and current fiscal year (2015E) revenues to the Company's pro forma financial statistics for 2015E pre-tax income, 2016E pre-tax income and 2015E revenues, respectively. Berkshire Capital MA Business Valuation Standards, American Society of Appraisers, 2002. 6 Statement on Standards for Valuation Services No. 1, Valuation of a Business, Business Ownership Interest, Security, or Intangible Asset, American Institute of Certified Public Accountants, 2007. 7 Trugman, Gary R., Understanding Business Valuation, American Institute of Certified Public Accountants, 1998. Berkshire Capital Page 13 EFTA01079030 Rockefeller Financial Services, Inc. Valuation Methodologies applied the guideline acquisition multiples of last twelve months' ("LTM") pre-tax income and LTM revenues to the Company's pro forma financial statistics for 2015E pre-tax income and 2015E revenues, respectively. Berkshire Capital compares the subject firm's financial condition to the guideline publicly traded companies and guideline acquired companies in order to select the appropriate percentile multiples within the ranges defined by the respective peer groups. Berkshire Capital selected the median multiples from the guideline publicly traded companies and the median multiples from the guideline acquisitions for purposes of valuing the Company. Berkshire Capital assigns weightings to the indicated values derived from each of the reference guideline company multiples. In this Valuation, the weightings assigned for the guideline publicly traded companies were 35% on 2015E pre-tax income, 35% on 2016E pre-tax income and 30% on 2015E revenues. For the guideline acquisitions, the weightings assigned were 60% on 2015E pre-tax income and 40% on 2015E revenues. Adjustments to the Financial Statements. Where appropriate, Berkshire Capital may make certain adjustments to the historical, current and/or forward fiscal year financial statements in order to make the financial statements more meaningful for the valuation process. Adjustments may be appropriate for the following reasons, among others: (1) to present financial data of the subject and guideline companies on a consistent basis; (2) to adjust reported values to current values; (3) to adjust revenues and expenses to levels which are reasonably representative of continuing results; and (4) to adjust for non-operating assets and liabilities and the related revenue and expenses.a For purposes of this Valuation, Berkshire Capital made adjustments for the current fiscal year income statement, forward fiscal year income statement and current balance sheet to reflect the sale of the Rockit Solutions, LLC. INCOME APPROACH Financial Projections. Berkshire Capital prepares five- and ten-year financial projections of free cash flow and estimated terminal values at the end of the fifth and tenth years. The projections of free cash flow are intended to estimate cash available to pay dividends on basic shares of the Company. Present Value Analysis. The after-tax cash flows and terminal value are then discounted to present value at the estimated cost of equity capital, on both a five- and ten-year basis. The five- and ten-year DCF values are weighted 60%/40%. The disproportionate weighting attributed to the five-year DCF values is a function of the relatively greater level of confidence attached to five-year projections compared to ten-year projections. a ASA Business Valuation Standards, American Society of Appraisers, 2002. Berkshire Capital Page 14 EFTA01079031 Rockefeller Financial Services, Inc. Valuation Methodologies Discount Rate. Berkshire Capital uses a variation of the Capital Asset Pricing Model ("CAPM") to derive an estimate of the cost of equity capital for a subject firm: 9'1°'11 Ku = Rf + X ERP + RP, + RPu, where Ku = estimated cost of equity capital RI = risk-free rate (3 = beta ERP = general equity risk premium for the market RP, = risk premium for small size RP„ = risk premium attributable to the specific company, or nonsystematic risk Risk-Free Rate ( 1O. Berkshire Capital uses the long-horizon equity risk premiums published by Morningstar, Inc., which quantifies the return generated by stocks, as measured by the S&P 500, in excess of the 20-year constant maturity Treasury bond. To ensure comparability, Berkshire Capital references the 20-year constant maturity Treasury bond as the risk-free rate. The appropriate time horizon is a function of the indeterminate (i.e., long-term) life of the company being valued as a going concern, as opposed to the investor's expected holding period.'2 Beta ( B ). Berkshire Capital selects the median unlevered beta for the guideline publicly traded companies13 and then adjusts the unlevered beta for the subject company's targeted leverage ratio.'" Equity Risk Premium ( ERP). The equity risk premium is a prospective concept (i.e., an estimate of the premium required by the market in the future in order to accept the uncertain outcomes associated with owning equity securities). Unlike bond yields to maturity, market quotes cannot be obtained for the equity risk premium. Due to a lack of widely accepted forecasting techniques to estimate a forward-looking equity risk premium,ls•16 Berkshire Capital refers to historical data 9 Pratt, Shannon P., Robert F. Reilly and Robert P. Schweihs, Valuing a Business: The Analysis and Appraisal of Closely Held Companies, 4th ed., McGraw-Hill, 2000. 143 Pratt, Shannon P., Cost of Capitol: Estimation and Applications, John Wiley & Sons, 1998. " Reilly, Robert F. and Robert P. Schweihs, The Handbook of Advanced Business Valuation, McGraw-Hill, 2000. 12 Ibbotson SBBI, 2014 Valuation Yearbook, Morningstar, Inc., 2014. 13 Pratt, Shannon P. and Alina V. Niculita, Valuing a Business: The Analysis and Appraisal of Closely Held Companies, McGraw-Hill, 2008. 14 Pratt, Shannon P., Cost of Capitol: Estimation and Applications, John Wiley & Sons, 1998. IS Equity Risk Premium Forum, sponsored by the Association for Investment Management and Research, November 8, 2001. 16 Damodaran, Aswath, Equity Risk Premiums (ERP): Determinants, Estimation and Implications —The 2011 Edition, Stern School of Business, 2011. Berkshire Capital Page 15 EFTA01079032 Rockefeller Financial Services, Inc. Valuation Methodologies for insights into the magnitude of the equity risk premium17 Berkshire Capital uses the 30-year average long-horizon equity risk premium published by Morningstar in the Stocks, Bonds, Bills and Inflation ("SBB1") series, reduced by the historical P/E multiple effect in order to eliminate the upward bias in historical data introduced by changes in investor expectations.18'19 This approach is consistent with a recent valuation opinion issued by the Delaware Chancery Court.2° The equity risk premium component of the estimated cost of equity capital represents the expected premium that holders of similar securities can expect to achieve on average in the future. The total return on the S&P 500 reflects both periodic distributions on, and capital appreciation or depreciation reflected by continuous trades in, minority interests of component stocks. While a control shareholder may be able to improve the cash flows generated by the acquired company, such improvements may not necessarily have an impact on the general risk level of the cash flows. Adjustments for minority or controlling interest value are more suitably made to the projected cash flows rather than to the discount rate. So long as there is no disproportionate return to certain shareholders, either through the enterprise cash flows or the equity rights, there is no distinction between minority owners and control owners in the estimation of 21,22 costs of equity capital. Size Premium (RP, ). Research published by Morningstar and others offers compelling statistical evidence of small firm premiums.32'23,20 Morningstar's annual small capitalization study sorts the universe of eligible stocks traded on the NYSE into deciles ranked by market capitalization, with deciles rebalanced quarterly, and calculates (1) betas for each decile since 1926 and (2) returns predicted by beta for each decile based on the average risk-free rate over the time horizon. If CAPM were functioning properly for small companies, all the decile portfolios would fall on the security market line. Instead, Morningstar's research shows that smaller stocks consistently generate returns in excess of the returns that would be predicted by CAPM. Berkshire Capital has developed a size premium calculator using the Morningstar data that " Reilly, Robert F. and Robert P. Schweihs, The Handbook ofAdvanced Business Valuation, McGraw-Hill, 2000. 19 Ibbotson, Roger G. and Peng Chen, "Long-Run Stock Returns: Participating in the Real Economy," Financial Analysts Journal, vol. 59, no. 1 (January/February 2003). 19 Kasper, Larry J., "S Corporation Valuations — An Analysis in Search of a Solution," Business Valuation Review (Winter 2007). n Global CT LP v Golden Telecom, Inc., 2010 WL 1663987 (Del. Ch.)(April 23, 2010). 31 Speech at the 2004 Thirty-Second AICPA National Conference on Current SEC and PCAOB Developments, by Todd E. Hardiman, Associate Chief Accountant, Division of Corporate Finance, Securities and Exchange Commission, Washington, DC, December 6, 2004. 22 lbbotson SBB1, 2014 Valuation Yearbook, Morningstar, Inc., 2014. 23 Banz, R., "The Relationship between Return and Market Value of Common Stocks," Journal ofFinancial Economics (1981). Pratt, Shannon P. and Alina V. Niculita, Valuing a Business: The Analysis and Appraisal of Closely Held Companies, McGraw-Hill, 2008. Berkshire Capital Page 16 EFTA01079033 Rockefeller Financial Services, Inc. Valuation Methodologies estimates the size premiums for the subject firm as well as the guideline publicly traded companies. This approach is 25 consistent with a recent valuation opinion issued by the Delaware Chancery Court. Security Market Line & Size Premium by Decile, 1926 - 2014 25.00% 20.00% • 3 15.00% 2 • 10.00% 1 f. itt 5.00% 0.00% 0.80 0.20 0.40 060 0.80 1.00 1.20 1.40 1.60 1.80 Beta — Company-Specific Risk Premium ( Rp, ). This risk premium accounts for additional elements of risk not captured by the systematic, or market, risk factor beta, such as: (1) relatively higher or lower volatility of economic income; (2) concentration of customer base; (3) key person dependence or small management base; (4) key supplier dependence; (5) abnormal present or pending competition; (6) pending regulatory changes; (7) pending lawsuits; or (8) relatively undiversified operations, by product or by geography.26,27 Recent valuation opinions issued by the Delaware Chancery Court have accepted the use of RPu so long as the risk factors are truly company-specific and not already reflected in zs In re Sunbelt Beverage Corporation, 2010 Consol. CA. No. 16089-CC (Del. Ch.) (Jan. 5, 2010). 26 Kasper, Larry J., Business Valuations: Advanced Topics, Quorum Books, 1997. 27 Reilly, Robert F. and Robert P. Schweihs, The Handbook ofAdvanced Business Valuation, McGraw-Hill, 2000. Berkshire Capital Page 17 EFTA01079034 Rockefeller Financial Services, Inc. Valuation Methodologies projected cash flows, beta or RPs, and the estimated RP. is based on specific financial analysis.28 Berkshire Capital incorporates volatility of economic income and risk of insolvency due to limited capital resources in the scenario analysis of the subject firm; as a result, these factors do not influence the magnitude of RP,,. For purposes of this Valuation, Berkshire Capital assumed that there were no material company-specific risk factors, so RP„ is assumed to be nil. Scenario Analysis. Cash flow projections should be based on the concept of expected cash flows rather than most likely or base- case cash flows.29 The determination of expected cash flows centers on the projection of future cash flows across a range of scenarios, to which probabilities are then attached. Berkshire Capital's valuation model performs the DCF analysis across 25 discrete scenarios. In the case of investment management firms, the scenarios are based on a range of inputs for two key value drivers: total return on managed assets and rate of net new business acquisition. Berkshire Capital has identified these two factors as those with the greatest influence on revenues, profitability and value. The scenario analysis is designed to capture, at least in part, the uncertainty inherent in operating the subject firm's business in the future, and as a result, introduces a broader range of potential outcomes into the ultimate determination of value than offered by a single scenario. The outcomes are then weighted based on an assessment of the appropriate probability distribution in light of the ranges of the respective value drivers relative to historical norms and expectations for the future. This probability distribution is ordinarily designed to reflect the assessment that the scenario outcomes exhibit symmetrical but declining probabilities the more the assumptions underlying a particular scenario diverge from the assumptions underlying the central scenario. Because we run multiple scenarios, we have automated all decision rules governing the subject firm's cost structure to mimic the concept that management teams adjust staffing and expense levels to changes in revenues brought about by market, industry and economic developments. 28 Rosenbloom, Arthur H., Bala G. Dharan and Ihsan Dogramaci, "Using Company-Specific Risk in the Delaware Chancery Court," Business Valuation Update (December 2011). 29 Ibbotson SBBI, 2014 Valuation Yearbook, Morningstar, Inc., 2014. Berkshire Capital Page 18 EFTA01079035 Rockefeller Financial Services, Inc. Valuation Methodologies VALUATION DISCOUNTS AND PREMIUMS Where appropriate, Berkshire Capital applies relevant discounts and premiums to values indicated by the income and market approaches. Discount for Small Size. In many cases, the firm being valued is substantially smaller than the guideline publicly traded companies, as measured by market capitalization. As a result, an adjustment must be made to valuations indicated by guideline publicly traded company valuation multiples in order to account for this differential. The size discount recognizes the direct relationship between P/E ratios and discount rates. Financial theory holds that the price in the numerator of the P/E ratio equals the PV of the market's consensus estimate of future free cash flows and terminal value discounted at the market's consensus estimate of the firm's cost of equity capital. For a given set of free cash flows, if the discount rate is higher due to the size premium, then the P/E ratio will be correspondingly lower. As a result, Berkshire Capital estimates the appropriate small-firm discount to be applied to public market multiples by calculating the percentage difference between the DCF calculated at the subject firm cost of equity capital and the DCF calculated at the median guideline company cost of equity capital. 32 Berkshire Capital's approach is conceptually consistent with methodologies published by Goeldner30, Hitchner31 and Mercer. Goeldner proposed that the principal factors influencing the difference between capitalization rates, or the inverse of P/E multiples, .—risk premium) and earnings growth (Agrowth). where: for public and private firms are differences in risk factors (A P/Esubject = 1 / (Cap Rateguideline Arisk premium + Agrowth) The -risk premium factor is captured in the difference in estimated Ke. At the time, assuming that the private firm beta is equal to the public firm median, Goeldner maintained that tirisk premium can be reduced to the difference in RP„. Peters33 elaborated on Goeldner's equation by expanding the definition of risk factors to include a proxy for the size premium, which was later adopted by Goeldner through the inclusion of RPs as a risk factor.34 Goeldner's fundamental discount does not adjust for other value impairments, such as illiquidity or lack of control. 3° Goeldner, Richard, "Bridging the Gap Between Public and Private Market Multiples," Business Valuation Review (September 1998). 31 Hitchner, James R., Financial Valuation: Applications and Models, John Wiley & Sons, 2006. 32 Mercer, Z. Christopher, Valuing Enterprise and Shareholder Cash Flows — The Integrated Theory of Business Valuation, Peabody Publishing, 2004. 13 Peters, Jerry O., "Adjusting Price/Earnings Ratios for Difference in Company Size," Business Valuation Review (June 1999). 34 Goeldner, Richard, "Practical Application of the Fundamental Discount," Business Valuation Review (September 2000). Berkshire Capital Page 19 EFTA01079036 Rockefeller Financial Services, Inc. Valuation Methodologies Similarly, Hitchner proposed that: P/Esubjed = 1 / [( 1 / P/Eguidekne ) where "6" equals the difference between the respective costs of equity capital for the guideline companies and the subject company, reflected primarily in the difference between respective size premiums published in SBB1. Mercer uses the CAPM with differential RPu and growth rates to estimate differential capitalization rates and implied multiples. For purposes of this Valuation, RFS has fewer assets under management and lower pre-tax income than all of the guideline publicly traded companies, warranting the use of a discount for small size. In this Valuation, the discount for small size is 17.0%. Discount for Lack of Marketability. The principal risks associated with lack of marketability include the inability to sell shares (A) in the face of deteriorating fundamentals, which would have otherwise prompted a decision to sell; (B) when the contemplated means of disposing of the stock through an IPO or sale of the company does not materialize; or (C) when the investor's personal circumstances require liquidity.35 Many factors affect the extent to which the marketability of a security in a privately held firm differs from the marketability found in active, freely traded securities markets: (1) put rights; (2) dividends or distributions; (3) size of potential market of buyers, including limitations on who can own shares; (4) prospects for going public or being acquired; (5) restrictive transfer provisions; (6) absolute and relative size of the block to be sold; and (7) size and financial strength of the firm.36.37 In theory, investors who own nonmarketable securities must be compensated in the form of a higher expected return for the incremental risk introduced by the inability to readily convert such an investment into cash. Purchases and sales of minority interests in publicly traded companies, and the valuation multiples that result, are based on the buyers' and sellers' ability to execute a trade virtually at any time, with cash settlement in three trading days. With no readily available data on pricing of minority interests in privately held firms, Berkshire Capital draws from other empirical data in order to arrive at a credible adjustment to public market multiples to reflect the fact that the holder of a minority interest in a private firm does not enjoy the same ability to achieve liquidity when desired. For guidance on this issue, valuation practitioners have routinely referenced studies of (a) discounts on restricted stock transactions, and (b) pricing of pre-IPO common stock sales.38 Berkshire Capital has not incorporated the pre-IPO common stock sale studies in its analysis due to potential conflicting biases, and resulting lack of reliability, introduced by survivorship bias, potential "friends and 3S Revenue Ruling 77-287, C.B. 1977-2, 319. 36 Pratt, Shannon P., Business Valuation: Discounts and Premiums, John Wiley & Sons, 2001. 37 Mercer, Z. Christopher, Quantifying Marketability Discounts, Peabody Publishing, 2001. Heidt, Paul, ed., BVR's Guide to Discounts for Lack ofMarketability, Business Valuation Resources, 2009. Berkshire Capital Page 20 EFTA01079037 Rockefeller Financial Services, Inc. Valuation Methodologies family" pricing discounts on pre-IPO stock, underpricing of IP0s,39 underwriter hype resulting in post-IPO underperformance,49 earnings accretion41 and non-contemporaneous price comparisons. Berkshire Capital also noted the potential bias introduced as a result of (a) significantly higher RP, and RPL, for pre-IPO companies compared to the subject company due to the early development stage of most IPO companies and (b) likely significant change (i.e., reduction) in RP, and RP„, between the date of issuance of pre-IPO shares and the IPO due to the subject company's advances in corporate development and reduction of business risk. Facebook's valuation history is a prime example of the inapplicability of pre-IPO pricing data. Facebook Valuation History Implied Enterprise Holding Discount for Valuation Est Price Period tack of Date ($8) Per Share (Months) Marketability Event May 2012 81.2 38.00 NA NA IPO Mar 2011 65.0 37.95 14 0% General Atlantic purchases shares from Facebook employee! Feb 2011 52.0 30.36 15 20% Kleiner Perkins invests 538MM for <1% stake Jan 2011 50.0 29.19 16 23% Raises 5500MM from Goldman Sad's and DST Nov 2010 35.0 20.43 18 46% Accel sells approx. 17% of its stake lun 2010 23.0 14.26 23 62% Elevation Partners buys 5120MM of secondary shares lan 2010 14.0 8.68 28 77% Secondary trades on SecondMarket Nov 2009 9.0 5.58 30 85% Elevation Partners invests 590MM Based on shares of convertible preferred stock, Class A common StoCk and Class B common stock outstanding as of most recent balance sheet date. Sources: Facebook prospectus, The New York Times, Benjamin Christine, Berkshire Capital analysis Berkshire Capital estimated the discount for lack of marketability through the use of simulation analysis incorporating the reported discounts on restricted stock transactions and estimates of stock price expected return, stock price volatility, dividend yield, the 39 Ibbotson, Roger G., Jody L. Sindelar and Jay R. Ritter, "The Market's Problems with the Pricing of Initial Public Offerings," Journal of Applied Corporate Finance (Spring 1994). 4° Rajan, Raghuram and Henri Servaes, "Analyst Following of Initial Public Offerings," Journal of Finance (June 1997). 41 Paulson, Jon, "Quantifying Lack of Marketability and Minority Interest Discounts," TAXES, The Tax Magazine (August 1996). Berkshire Capital Page 21 EFTA01079038 Rockefeller Financial Services, Inc. Valuation Methodologies probable length of the restriction period and discount rates reflective of the risks of holding illiquid stock. A restricted stock discount refers to the contemporaneous discount on the pricing of a restricted stock private placement to the reported sales price of the issuer's publicly traded stock. Based on restricted stock pricing data obtained from a commercial database,62 Berkshire Capital estimated that the implied illiquidity risk premium, or excess return required by purchasers of restricted stock to compensate for the incremental risk associated with the inability to freely sell the stock during the lock-out period, was 11.0% during the sample period. Berkshire Capital limited the analysis to restricted stock transactions completed between April 1997 and February 2008 on the theory that the Securities and Exchange Commission's relaxation of the minimum holding period under Rule 144 from two years to one year in April 1997 and to six months in February 2008 materially altered investors' perceptions of holding period risk. Berkshire Capital also examined historical volatility, estimated costs of equity capital, payout ratios, dividend yields and price/earnings multiples for selected publicly traded investment management firms in order to develop a current estimate for the appropriate discount for lack of marketability for a private investment management firm. Berkshire Capital's use of historical volatility as a proxy for expected volatility is consistent with research showing that historical stock volatilities exhibit a high degree of persistency.63 Statement of Financial Accounting Standards No. 123 also directs preparers to use historical volatility in estimating the fair value of employee stock grants." Berkshire Capital constructed a hypothetical private firm with the same expected total return as the median guideline public company expected total return but with an assumed payout ratio of 80%, which Berkshire Capital's experience suggests is typical of a private investment management firm. Because the timing of sale is unknown and cannot be known with certainty, Berkshire Capital assumed that the timing of the future liquidity event would be subject to a uniform probability distribution following a three-year lock-out, with a 10-year maximum holding period. Berkshire Capital also (i) imposed the same implied illiquidity risk premium of 11.0% to the private stock cash flows and (ii) assumed that the holder of the public stock would choose to sell the stock in the absence of any restrictions once the stock appreciated 100% or declined in value by 25%. These buy/sell decision rules are conceptually consistent with those routinely employed by investment management firms, based on Berkshire Capital's experience. This framework also captures the two principal components of price risk: (i) the risk that the realized price is lower than the purchase price and (ii) the opportunity loss that occurs when the asset increases in price during the period of non-marketability and then declines to a lower value before the asset can be liquidated.05 Based on the foregoing, Berkshire Capital derived an implied discount for lack of marketability of 21.5% for a minority interest in the private stock. 42 The FMV Restricted Stock Study, FMV Opinions, Inc. (online subscription). 43Dyl, Edward A. and George J. Jiang, 'Valuing Illiquid Common Stock," Financial Analysts Journal (July/August 2008). "Statement of Financial Accounting Standards No. 123, "Accounting for Stock-Based Compensation" (Financial Accounting Standards Board, 2008). Abbott, Ashok, "Discount for Lack of Liquidity: Understanding and Interpreting Option Models," Business Valuation Review (Fall 2009). Berkshire Capital Page 22 EFTA01079039 Rockefeller Financial Services, Inc. Valuation Methodologies Our model is conceptually consistent with methodologies developed by Mercer," Finnerty,07 Stockdale," Dyl et a109 and Seaman.5° The Quantitative Marketability Discount Model ("QMDM") has been developed by Mercer in order to replicate, in quantitative terms, the investment decision-making process of hypothetical investors in nonmarketable securities. The QMDM is a static model that integrates assumptions regarding the current price of the freely traded security, the growth rate of the security's value, dividends, a point estimate for the probable holding period and the required holding period rate of return into the determination of the appropriate discount for lack of marketability. Mercer has demonstrated that the QMDM produces discounts for lack of marketability that are consistent with the discounts observed in the restricted stock studies. The discount rate is intended to include the analyst's estimate of the incremental return required by a holder of the nonmarketable security due to holding period uncertainty, uncertainty of a favorable exit and transfer restrictions. Finnerty presented an enhancement to the QMDM in which the discount is a function of stock volatility, the length of the restriction period, the stock dividend yield and the time value of money, where the restriction period assumption is static. Finnerty's approach is supported by a study by Bajaj et al.,S1 which found that the standard deviation of stock returns was the most important explanatory variable in regressing restricted stock discounts against a variety of statistics including volatility, relative issue size and whether or not the issue was registered. Stockdale elaborated on Finnerty's model and posited that the discount for lack of marketability is a function of three factors: (1) the future value as a function of time; (2) the probability of sale as a function of time; and (3) the present value as a function of time. Because the timing of future sale is unknown and cannot be known with certainty, Stockdale maintained that the timing of future sale must be considered through the use of a uniform probability distribution over a defined period of time following a fixed minimum. Stockdale's model does not explicitly address the incremental risk premium required by investors for the timing uncertainty. Dyl applied an options-based framework developed by Longstaff52 based on Longstaff's insight that liquidity is essentially the option to sell a security at any time and that the cost of illiquidity can therefore be estimated using techniques from options-pricing theory. The Dyl model incorporates stock price volatility and length of the restriction period in determining the Mercer, Z. Christopher, Quantifying Marketability Discounts, Peabody Publishing, 2001. 17 Finnerty, John D., "The Impact of Transfer Restrictions on Stock Prices," presented at the 22nd Annual Advanced Business Valuation Conference (Chicago, IL, October 2003). As Stockdale, Jr., John J., "Time is of the Essence," Business Valuation Review (Fall 2006). Dyl, Edward A. and George J. Jiang, "Valuing Illiquid Common Stock," Financial Analysts Journal (July/August 2008). so Seaman, Ronald M., "Minimum Marketability Discounts, 3rd Edition," Business Valuation Review (Spring 2008). si Bajaj, M., DJ. Denis, S.P. Ferris and A. Sarin, "Firm Value and Marketability Discounts," Journal of Corporation Law (Fall 2001). S2 Longstaff, F.A., "How Much Can Marketability Affect Security Values?" Journal of Finance (December 1995). Berkshire Capital Page 23 EFTA01079040 Rockefeller Financial Services, Inc. Valuation Methodologies maximum applicable discount, which is then adjusted based on parameters in the Bajaj regression51 to arrive at an estimated discount for lack of marketability. Similar to Longstaff, Seaman examined pricing of Long-Term Equity Anticipation Securities ("LEAPS"), which are actively traded put and call options on common stock with maturities of up to 32 months, in order to gain insight into minimum marketability discounts. Consistent with these other studies, Seaman found that the costs of LEAPS were negatively correlated with company size and positively correlated with company risk (as measured by Value Line Safety Ratings) and option maturity. Stockdale also tested the effectiveness of various mathematical DLOM models in replicating observed restricted stock discounts53 and found that the Finnerty model produced results that fall within the scatter of restricted stock discounts for both one- and two-year time horizons. Abbott tested Black-Scholes put options, Asian put options and maximum price strike look-back put options against observed restricted stock discounts based on uniform assumptions regarding risk-free rate, annual volatility and liquidation period50 Asian put options provide a payout based on the average price achieved for the asset during the life of the option (examined by Finnerty), while the look-back put option provides a payout based on the highest value for the underlying asset achieved over the lifetime of the option (examined by Longstaff). Abbott found that the look-back option provided estimated discounts closest to the reported discounts. In general, Berkshire Capital does not apply a discount for lack of marketability in the case of a control interest valuation for the following reasons: (i) a controlling shareholder can unilaterally elect to pursue a sale of the enterprise with the expectation that a sale could be consummated within three to nine months and (ii) the market approach based on guideline acquisition transactions and control premiums draws on pricing data that explicitly reflects the anticipated time between signing of a definitive agreement and closing.55 For purposes of this Valuation, Berkshire Capital applied 20.0% of the implied discount for lack of marketability of 21.5%, which is 4.3%, due to existing internal buy/sell arrangements for RFS shares that include certain rules and restrictions. Control Premium. Generally, control is defined as the ownership of more than 50% of the vote and value of a firm. Control confers, among other things, the ability to: (1) select officers, directors and employees; (2) hire and fire management; (3) set compensation policies; (4) set policy and change the course of business; (5) decide with whom to do business and enter into binding contracts; (6) alter the capital structure, including repurchasing outstanding shares or issuing new shares; (7) declare dividends; (8) acquire or liquidate assets; (9) register with the SEC for an IPO; (10) make acquisitions; (11) liquidate or sell the company, including sale of a S3 Stockdale, John J., "A Test of DLOM Computational Models," Business Valuation Review (Fall 2008). See also Stockdale, John J., "Time is of the Essence: A Proposed Model for Computing the Discount for Lack of Marketability," Business Valuation Review (Fall 2006). S0 Abbott, Ashok, "Discount for Lack of Liquidity: Understanding and Interpreting Option Models," Business Valuation Review (Fall 2009). Ss Mercer, Z. Christopher, Quantifying Marketability Discounts, Peabody Publishing, 1997. Berkshire Capital Page 24 EFTA01079041 Rockefeller Financial Services, Inc. Valuation Methodologies controlling interest with or without the participation of minority shareholders; (12) change the articles of incorporation or bylaws; or (13) block any of the preceding actions.s6 The topic of control premium has generated ongoing debate within the valuation profession. As far back as 1990, Nath observed that most publicly traded companies must trade at or near their controlling interest value in light of the fact that so few publicly traded companies are taken over in any year.s7 Pratt, an early proponent of applying control premiums to public market multiples, has recently shifted to the position that valuators must be cautious in applying a control premium to public market values, explicitly acknowledging Nath's argument.ss Pratt offers a caveat for the use of transaction multiples, reflecting available synergies, in industries undergoing consolidation where there is a diverse pool of synergistic buyers.s8 While the investment management industry has experienced 14 takeovers of publicly traded firms within the past 17 years, Berkshire Capital notes that a financial buyer, Madison Dearborn, paid a 20% premium for Nuveen Investments in 2007. As a result, Berkshire Capital estimates the applicable control premium by analyzing premiums paid in acquisitions of publicly traded financial services companies. As noted above, no distinction is made between minority shareholders and majority shareholders in the estimation of costs of equity capital. The cash flows in the DCF analysis are typically prepared on an enterprise basis, presuming the owner has the ability to exercise some or all of the indicia of control and the minority owners participate in distributions and terminal value on a pro rata basis. As a result, no control premium or discount for lack of control is applied to the DCF values. In the case of a control interest valuation using the market approach, an adjustment to the indicated valuation based on public market multiples is made by citing premiums paid in recent acquisitions of publicly traded companies. This approach is consistent with a recent valuation opinion issued by the Delaware Chancery Court.S9 Discount for Lack of Control. In the case of a nonmarketable minority interest valuation, a corresponding adjustment is made to the indicated valuation based on acquisition multiples to reflect lack of control. The discount for lack of control is equal to: 1 — 1 / ( 1 + d ), where "d" is equal to the 40th percentile control premium (or 29.9%). In this Valuation, the discount for lack of control is equal to 23.0%. 56 Pratt, Shannon P. and Alina V. Niculita, Valuing a Business: The Analysis and Appraisal of Closely Held Companies, 5th ed., McGraw-Hill, 2008. 57 Nath, Eric W., "Control Premiums and Minority Interest Discounts in Private Companies," Business Valuation Review (June 1990). 58 Pratt, Shannon P., Business Valuation Discounts and Premiums, 2n° ed., John Wiley & Sons, 2009. " Berger v. Pubco Corporation, et al., 2010 C.A. No. 3414-CC (Del. Ch.) (May 10, 2010). Berkshire Capital Page 25 EFTA01079042 Rockefeller Financial Services, Inc. Valuation Methodologies VALUATION METHODOLOGY WEIGHTINGS Berkshire Capital assigns weightings to the guideline publicly traded companies (20%), guideline acquisitions (40%) and DCF (40%) methodologies based on a number of factors relevant to this Valuation, including but not limited to: (1) the lack of direct comparability in terms of range of business activities and relative valuation between the subject company and the guideline publicly traded companies; (2) the greater degree of comparability in terms of relative valuation between the subject company and the guideline acquired companies; and (3) the degree to which the DCF analysis best incorporates the particular financial characteristics, and hence future prospects, of the subject company.6° ADJUSTMENTS TO THE WEIGHTED AVERAGE ENTERPRISE VALUE TO DERIVE FAIR MARKET VALUE OF EQUITY After calculating the weighted average enterprise value of the Company to be $108.0 million based on the weightings indicated in the preceding paragraph, Berkshire Capital made the following adjustments to derive the fair market value of RFS: • Added excess working capital: Assumes working capital required to operate the business is equal to 16.7% (or two months) of annual operating expenses excluding the stock incentive plan and bonus pool, so any working capital on the Company's balance sheet as of November 30, 2015 above this minimum requirement is a positive adjustment to the enterprise value of the Company. • Added long-term assets: Equals the non-current assets on the Company's balance sheet as of November 30, 2015. • Added the present value of the tax benefit due to accumulated tax loss carryforwards: Tax loss carryforwards are a valuable asset because they reduce a subject company's future tax payments. Berkshire Capital calculated the present value of the annual tax savings due to the Company's accumulated tax loss carryforwards under each of the 25 discrete scenarios utilized in the DCF methodology. The outcomes were then weighted based on the same probability distribution used in the DCF methodology. The annual tax benefit or savings were discounted at the Company's estimated cost of equity capital of 15.5%. The total nominal tax benefit attributable to the tax loss carryforwards as of December 31, 2015 is $14.3 million. • Deducted long-term debt obligations: Equals the accrued post-retirement benefits on the Company's balance sheet as of November 30, 2015. After making the adjustments listed above to the weighted average enterprise value of RFS, Berkshire Capital calculated the fair market value of the Company on a non-marketable minority interest basis to be $188.9 million. b0 Cede & Co. v. MC Acquisition Corp., Civil Action No. 18658-NC, 2004 WL 286963, at 2 (Del. Ch. Feb. 10, 2004). Berkshire Capital Page 26 EFTA01079043 CONFIDENTIAL Project Vega Valuation Analysis: Nonmarketable Minority Interest Basis As of 12/31/15 Key Assumptions: - Company valued utilizing three methodologies: Guideline Publidy Traded Companies (20.0%), Guideline Acquisitions (40.0%) and DCF Analysis (40.0%) • Guideline Publicly Traded Companies analysis applies multiples to: 2015 Projected Pre-Tax Income 2016 Projected Pre-Tax Income 2015 Projected Revenues - Guideline Acquisitions analysis applies multiples to: 2015 Projected Pre-Tax Income 2015 Projected Revenues • DCF analysis is based on 5 and 10 year projected income and cash flow statements. See Projected Income Statements & Discounted Cash Flow Analysis - 2016 Pro Forma Income Statement is based on the 2016 preliminary budget provided by management Berkshire Capital EFTA01079044 Project Vega Summary of Valuation as of 12/31/15: Nonmarketable Minority Interest Basis Dollars in thousands, except number of shares and per share data Rockefeller Financial Services, Inc. Final Valuation of RFS Equity Interests 188,890 Class A Shares Class B Shares' (Voting Shares) (Non-Voting Shares) flambee. lisetTetal Number_ % of Total Outstanding 36,800 32.95% Outstanding 70,869 67.05% Aggregate Value 73,603 Aggregate Value 115,291 Price /Share Outstanding 2,000.08 Price / Share Outstanding' 1,539.90 Notes: (1) Due to variances of rights associated with different Class B non-voting shares, there may he additional economic value associated with share ownership that is not reflected in the per share price represented on this page. (2) Reflects a discount for lack of control, relative to the Class A Shares, of 23.0%. Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 2 OF 41 EFTA01079045 Project Vega Valuation as of 12/31/15: Nonmarketable Minority Interest Basis Dollars in thousands Methodology Indicated Methodologies Weightings Value ROCKEFELLER FINANCIAL SERVICES A. Guideline Publicly Traded Companies 20.0% 110,399 B. Guideline Acquisitions 40.0% 101,246 C. DCF Analysis 40.0% 113,616 WEIGHTED AVERAGE ENTERPRISE VALUE BEFORE ADJUSTMENTS 108,025 Plus: Excess Working Capital 72,154 Plus: Long-Term Assets 3,258 Plus: Present Value of Tax Benefit Due to Accumulated Tax Loss Carryforwards (1) 9,752 Minus: Long-Term Debt Obligations (4,295) FAIR MARKET VALUE OF EQUITY - ROCKEFELLER FINANCIAL SERVICES 188,894 Plus 10.0% 207,783 Minus 10.0% 170,005 Note: (1) Represents the weighted average value across 25 discrete scenarios of the total nominal tax benefit attributable to the Tax Loss Carryforwards of $14 million as of 12/31/2015, discounted at the estimated cost of equity capital for RFS of 15.46%. Please refer to footnote 7 on page 6 for the weightings applied across the 25 discrete scenarios. Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 3 OF 41 EFTA01079046 Project Vega Summary Results of Valuation Methodologies as of 12/31/15: Nonmarketable Minority Interest Basis Dollars in thousands Rockefeller Financial Services Indicated Methodology Values / Weightings Methodologies Multiples 20.0% A. Based on Median Multiples for Guideline Publicly Traded Investment Management Firms: 110,399 Price / 2015E Pre-Tax Income 15.4x Price / 2015E Revenues 1.29x Price /Assets Under Management 1.06% 40.0% B. Based on Median Multiples for Guideline Acquisitions of Investment Management Firms: 101,246 Price / 2015E Pre-Tax Income 14.1x Price / 2015E Revenues 1.18x Price /Assets Under Management D.97% 40.0% C. Discounted Cash Flow Analysis: 113,616 Price / 2015E Pre-Tax Income 15.9x Price / 2015E Revenues 1.33x Price / Assets Under Management 1.09% WEIGHTED AVERAGE VALUE 108,025 Price / 2015E Pre-Tax Income 15.1x Price / 2015E Revenues 1.26x Price / Assets Under Management 1.03% Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 4 OF 41 EFTA01079047 Project Vega RFS Summary of Indicated Values as of 12/31/15: Nonmorketable Minority Interest Basis Reference Pro FCM113 Indicated Methodologies Multiples Statistics Values A. Based on Median Multiples for Guideline Publicly Traded Investment Management Firms (1): Pace/Current Fiscal Year Projected (2015E)Pre-Tax Income (35% Weighting) 9.8x 7,159 70,247 Price/ Forward Fiscal Year Projected (2016E) Pre-Tax Income (35% Weight' ng) 8.9x 10,371 92,362 Price/Current Fiscal Year Projected (2015E) Revenues (30% Weighting) 3.19x 85,700 273,763 Small Firm Discount (2) -17.0% Discount for lack of Marketability (3) -4.3% WEIGHTED AVERAGE VALUE 110,399 B. Based on Median Multiples for Guideline Acquisitions of Investment Management Firms (4): Slice / Cur rent Fiscal Year Projected (2015E) Pre-Tax Income (60% Weighting) 9.5x 7,159 67,788 Price/ Current Fiscal Year Projected (2015E) Revenues, (40.0% Weighting): 2.82x 85,700 241,879 Discount for lack of Marketability (31 -4.3% Discount for lack of Control 151 -23.0% WEIGHTED AVERAGE VALUE 101,246 C. Discounted Cash Flow Analysis (6): New Business Scenario (10-Year Annual Average, % of Beginning AUM) Total Return kenarlo (10-Year Optimistic Outperform Neutral Underperfomi Pessimistic Annual Average) 11.90% 9.90% 7.90% 5.91% 3.91% Optimistic 4.00% 295,307 238,348 187,967 140,424 95,525 Outperform 2.00% 246,747 195,216 149,769 102,716 65,383 Neutral 0.00% 203,338 158,476 111,295 71,583 46,040 Underperform -2.00% 166,367 120,639 79.458 49,307 33,628 Pessimistic -4.00% 131,310 88,095 55,426 36,790 21,953 Indicated Value Based on Weighted Average of Scenario Analyses (7) 118,733 Discount for lack of Marketability (3) -4.3% WEIGHTED AVERAGE VALUE 113,616 Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 5 OF 41 EFTA01079048 Project Vega RFS Summary ofIndicated Values as of 12/31/15: Nonmarketoble Minority Interest Basis Dollars in thousands Notes: Ill Based on market prices as of December 31, 2015. See Exhibit A. 12) Represents the weighted average discount, applying 60%/ 40% weightings to the 5-year and 10-year discounts, where the discount equals the ratio of Das divided by DCF,. minus one. DCFs equals the base-case DCF calculated at the subject firm's estimated cost of equity capital and DOI equals the base-case DCF calculated at the median industry cost of equity capital. See Exhibits C and D. RFS has lower AVM than any of the publicly traded comparable companies, warranting the use of a discount for small size. See Exhibit A. 131 In the case of a nonmarketable minority interest valuation, represents the estimated discount for lack of marketability for a representative investment management firm. 20.0% of the total discount is applied to RFS due to existing internal buy/sell arrangements for RFS shares. See Exhibit F. let The multiples are based on guideline acquisitions for which pricing data is available. See Exhibit B. IS) The discount for lack of control, if applicable, is equal to 1 - 1 /I 1 ♦ d where d is equal to the 40th percentile control premium. (6) See "Net New Business & Total Return Scenarios" for a description of the net new business and total return scenarios. 17) Based on the joint probability distribution below. The independent probability of occurrence for each scenario is included in italics. New Business Scenario Total Return Optimistic Outperform Neutral Undeeperforrn Pessimistic Scenario Probability 10.0% 20.0% 40.0% 20.0% 10.0% Optimistic 10.0% 1.000% 2.000% 4O00% 2.000% 1.O00% Outperform 20.0% 2.000% 4.000% 8.000% 4.000% 2.O00% Neutral 40.0% 4.000% 8.000% 16.000% 6.000% 4.O00% Underperform 20.0% 2.000% 4.000% 8.000% 4.000% 2.000% Pessimistic 10.0% 1.000% 2.000% &0W% 2.000% 1.000% 100.000% Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 6 OF 41 EFTA01079049 Project Vega RFS Consolidated HistoricalIncome Statements Dolton in thousands. unless noted Year Ended December 31, 2009 - 2015E 2009 2010 2011 2012 2013 2014 2015E CAGR REVENUES Investment Management Fees 27,310 29,939 32,813 36,490 48,354 47.890 49,989 10.6% Professional and Administrative Services Fees 20,770 21,996 22,974 23,875 25,244 26,533 23,965 2.4% Trust Services Fees 9,928 11,386 12,131 12,505 13,481 15,075 14,905 7.0% Partnership Income (Losses), net 258 181 (33) (24) (18) 52 38 -27.3% Interest and Other 302 514 299 (1) 356 505 750 566 11.0% Total Revenues --.-- 58,568 64,016 68,184 73,202 87,566 90,300 89,363 7.3% EXPENSES Compensation (Pre Bonus) & Benefits 40,935 38,216 43,188 45,071 44,892 43,647 44,118 1.3% Professional Fees 8,571 6,499 5,828 5,711 6,622 7.167 7.335 -2.6% Occupancy 7,378 7,002 6,770 6,966 7,253 7,033 7,121 -0.6% Marketing & Communications 3,874 3,749 3,516 4,002 4,690 4,673 5,021 4.4% Travel & Entertainment 722 834 1,392 1,342 1,261 975 1.083 7.0% General & Administrative 3,304 3,483 3,636 4,754 4,800 4.850 5,168 7.7% Other Expenses 927 1,141 1,226 432 834 190 140 -27.0% Subtotal Expenses S 60,924 65,556 68,278 70,352 68,535 69,986 1.1% EBITDA (Pre Bonus) (7,143) 3,092 2,628 4,924 17,214 21,765 19.377 NM Bonus Pool (10,054) (10,627) (10,466) (9,464) (11,151) (12,102) (12,500) 3.7% Depreciation & Amortization (1,871) (2,719) (2,435) (1,904) (1,735) (1,396) (1,167) -7.6% Interest Expense - - NM PRE-TAX INCOME (19,068) (10,254) (10,273) (6,444) 4,328 8,267 5,710 NM Special Items 5,000 1,000 (1) - Pre-Tax Income after Special Items (14,068) (10,254) (9,273) (6,444) 4.328 8,267 5,710 NM FINANCIAL RATIOS Pre-Tax Margin -32.6% -16.0% -15.1% -8.8% 4.9% 9.2% 6.4% Total Compensation/ Revenues 87.1% 76.3% 78.7% 74.5% 64.0% 61.7% 63.4% Occupancy/ Revenues 12.6% 10.9% 9.9% 9.5% 8.3% 7.8% 8.0% Bonus Pool/ Revenues 17.2% 16.6% 15.3% 12.9% 12.7% 13.4% 14.0% % Change in Total Revenues NA 9.3% 6.5% 7.4% 19.6% 3.1% -1.0% ASSETS UNDER MANAGEMENT (SMM) 6,569 7,071 7,085 10,437 10549 9.591 10,443 8.0% ASSETS UNDER ADVISEMENT (SMM) 8,907 10,364 12,115 16,023 16,699 15.591 16,306 10.6% ASSETS UNDER ADMINISTRATION ($MM) 24,693 25,869 32,129 40,235 43,832 43.094 42,236 9.4% Average Assets Under Administration (SMM) 15,173 25,281 28,999 36,182 42,033 43.463 42,665 Note: Ill Eliminated a one time receipt of a lease termination fee from 'Interest and Other' and added it to 'Special items.' Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 7 OF 41 EFTA01079050 Project Vega RFS Consolidated Historical Income Statements %of revenuer Year Ended December 31, 2009 2010 2011 2012 2013 2014 2015E REVENUES Investment Management Fees 46.6% 46.8% 48.1% 49.8% 55.2% 53.0% 55.8% Professional and Administrative Services Fees 35.5% 34.4% 33.7% 32.6% 28.8% 29.4% 26.8% Trust Services Fees 17.0% 17.8% 17.8% 17.1% 15.4% 16.7% 16.7% Partnership Income (Losses), net 0.4% 0.3% 0.0% 0.0% 0.0% 0.1% 0.0% Interest and Other 0.5% 0.8% 0.4% 0.5% 0.6% 0.8% 0.6% Total Revenues 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% EXPENSES Compensation (Pre Bonus) & Benefits 69.9% 59.7% 63.3% 61.6% 51.3% 48.3% 49.4% Professional Fees 14.6% 10.2% 8.5% 7.8% 7.6% 7.9% 8.2% Occupancy 12.6% 10.9% 9.9% 9.5% 8.3% 7.8% 8.0% Marketing & Communications 6.6% 5.9% 5.2% 5.5% 5.4% 5.2% 5.6% Travel & Entertainment 1.2% 1.3% 2.0% 1.8% 1.4% 1.1% 1.2% General & Administrative 5.6% 5.4% 5.3% 6.5% 5.5% 5.4% 5.8% Other Expenses 1.6% 1.8% 1.8% 0.6% 1.0% 0.2% 0.2% Subtotal Expenses 112.2% 95.2% 96.1% 93.3% 80.3% 75.9% 78.3% EBITDA (Pre Bonus) -12.2% 4.8% 3.9% 6.7% 19.7% 24.1% 21.7% Bonus Pool -17.2% -16.6% -15.3% -12.9% -12.7% -13.4% -14.0% Depreciation & Amortization -3.2% -4.2% -3.6% -2.6% -2.0% -1.5% -1.3% Interest Expense 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% PRE-TAX INCOME -32.6% -16.0% -15.1% 4.8% 4.9% 9.2% 6.4% Special Items 8.5% 0.0% 1.5% 0.0% 0.0% 0.0% 0.0% Pre-Tax Income after Special Items -24.0% -16.0% -13.6% 4.8% 4.9% 9.2% 6.4% Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 8 OF 41 EFTA01079051 Project Vega RFS Consolidated Balance Sheet, as of11/30/1S Dollars in thousands RFS RockIT RFS % of Total RFS MST RFS %of Total Pre-Sale Adj. (1) Post-Sale Assets Pre-Sale 14).(1) Post-Sale Assets CURRENT ASSETS CURRENT LIABILITIES Cash and Cash EquNalents 65,202 1,502 66,744 62.8% Payables and Accrued Liabilities 3,005 (672) 2,333 2.9% Held-to-Maturity Securities -Trust Companies 21,215 21,215 20.4% Deferred Revenue 2,316 (333) 1,983 2.2% Restricted Cash 533 (533) 0.5% Accrued Bonus 11,001 (889) 10,112 10.6% Trading Securities 4,999 4,999 4.8% Total Current Liabilities 16,322 (1,894) 14,428 15.7% Receivables, net, and Income Tax Receivables 4,904 (217) 4,687 4.7% Total Current Assets 96,853 792 97,645 93.2% FIXED ASSETS NON-CURRENT LIABIUT ES Property and Equipment, net 3.302 (1,1901 2,152 3.2% Deferred Rent Expense 2,537 043) 1,794 2.4% Total Fixed Assets, net 3.302 (1,1901 2,152 3.2% Accrued Post-Retirement Benefits 4.295 4,295 4.1% Total Non-Current liabilities 6,832 (743) 6,089 6.6% NON-CURRENT ASSETS TOTAL LIABILITIES 23,154 (2,637) 20,517 22.3% Investments in Partnerships, at fair value 304 304 0.3% Deferred Tax Assets, net 72 72 0.1% EQUITY Other 3,323 (4411 2.882 3.2% Common Stock- Cass A Shares, $1 par value 37 37 0.0% Total Non-Current Assets 3,699 (4411 3.258 3.6% Common Stock- Cass B Shares, $1 par value 75 75 0.1% TOTAL ASSETS 103,890 (8391 103.055 100.0% Additional Paid-In Capital 136,697 (25,052) 111,645 131.6% Retained Earnings (Accumulated Deficit) (55,335) 26,850 (28,485) -53.3% Accumulated Other Comprehensive Income 1,491 1,491 1.4% Note Receivable from Class A Stockholder (1,60D) (1,61:0) -1.5% WORKING CAPITAL 80,531 2,686 83.217 Treasury Stock, at cost (Class B common) (625) (625) -0.6% Total Equity 80,740 1,798 82,538 77.7% TOTAL LIABILITIB -t EQUITY 103.894 (839) 103,055 100.036 Notes: (1) Adjustments from RockIT transaction provided to Berkshire Capital by Vega management team. Estimated 52.0mm cash proceeds from sale reflected on pro forma balance sheet. Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 9 OF 41 EFTA01079052 Project Vega RFS Consolidated Pro Forma Income Statement Oasis for Valuation Dolton n thousands. unless 00W Projected Year Ending December 31, 2015 Projected Year Ending December 31, 2016 RFS RocklT RFS Pro Forma Pro RFS Pro Forma Pro Consolidated Adjustments (a) Consolidated Adjustments Forma Consolidated Adjustments Poems REVENUES Investment Management Fees 49,889 49,889 49.899 53540 53,540 Professional & Administrative Services Fees 23,965 (3,625) 20,340 20.340 21.351 21.351 Trust & Estate Services Fees 14,905 - 14,905 14,905 15529 15,529 Partnership Income (Losses), net 38 - 38 (38) b. . - - Interest & Other 566 (1) - 566 566 399 (2) 399 Total Revenues 89,363 (3,625) 85738 (38) 85.700 90219 90,819 EXPENSES Salaries 32,653 (7,564) 25,089 25,039 27,365 27,365 401(k) Plan & Post-Retitement Benefits 1,907 (458) 1,449 1,449 1,720 1,720 Other Employee Benefits 3,712 (994) 2,718 2,718 2236 2,836 Stock Incentive Plan 2,830 - 2230 12,830) c. . 3,794 (3,794) c. - Other Compensation 2,808 13) (674) 2,134 2,134 2,174 (4) 2,174 Severance 208 (8) 200 1200) d. . 360 1360) d. - Compensation (Pre Bonus) & Benefits 44,118 (9,698) 34,420 13,030) 31,390 38,249 14,154) 34,095 Occupancy 7,121 (3,012) 6,109 6,109 5,608 5,608 Marketing 663 663 663 721 721 Communications 4,359 (3,441) 2,517 2,517 2,574 2.574 Professional Fees 7,335 (1,109) 6,226 6,226 5,752 5,752 Seeking Fees - 13,881 13,881 13,881 14,000 14,000 Travel& Entertainment 1,083 (35) 1,048 1,048 1,026 1,026 General & Administrative 5168 (746) 4,422 4,422 4,453 4,453 Other Expenses 140 120) 120 120 114 114 Total Operating Expenses 69,986 (580) 69,406 (3.030) 66,376 72,497 (4,154) 68,343 EBITDA (Pee Bonus) 19,377 (3,045) 16,332 2992 19,324 1.8.322 4,154 22,476 Bonus Pool (12,500) 1,085 (11,4151 5 e. (11..410) (11,573) 111,573) Depreciation & AmortizatIan (1.167) 412 (755) - ()SS) (532) (532) PRE-TAX INCOME 5710 (1.548) 4,162 2,997 7,159 6,217 4,154 10,371 FINANCIAL RATIOS Pre-Tax Margin 6.4% 4.9% 8.4% 6.8% 11.4% Total Compensation / Revenues 63.4% 53.5% 49.9% 51.9% 50.3% Employee Benefits/ Salaries 17.2% 156% 16.6% 16.6% 16.6% OttvPancy/ Revenues &0% 7.1% 7.1% 6.2% 6.2% Marketing & Communications/ Revenues 5.6% 3.7% 3.7% 3.6% 3.6% Professional Fees/Revenues &2% 7.3% 7.3% 6.3% 6.3% Sentking Fees/Revenues 0.0% 16.2% 16.2% 15.4% ISA% Travel& Entertainment/ Revenues 1.2% 1.2% 1.2% 1.1% 1.1% General & Administrative/ Revenues 58% 5.2% 5.2% 4.9% 4.9% Bonus Pool / Revenues 14.0% 13.3% 13.3% 12.7% 12.7% ASSETS UNDER MANAGEMENT (SMM) 10,443 10,443 10,443 11,295 11,295 ASSETS UNDER ADVISEMENT ($MM) 16,306 16,306 16,306 17,628 17,628 ASSETS UNDER ADMINISTRATION ($MM) 42,236 (13,587) 28,649 28,649 30,958 30,958 Average Assets Under Administration (SPAM) 42,665 04,557) 28,108 28,108 29,804 29,804 Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 10 OF 41 EFTA01079053 Project Vega RFS Canso!Rioted Pro Forma Income Statement Basis for Valuation Dollars 01 thousands, unless noted Matto a. Adjusted to reflect goionvard revenue and cost basis post-sale of RocklT Solutions, LLC. Source: Vega Management. b. Adjusted to account for capitalization of partnership assets. e. Adjusted to ekninate non-cash stock incentive plan expense; the cash taxes related to this expense are deducted in the OCF analysis. d. Eliminates non-recurring expenses. e. Adjusted bonus pool to equal the same percentage of revenues as the unadjusted percentage under the 'MS Consoidated" columns for each respective fiscal year. Line Item Detais: (1) Interest and Other includes: (i) Gains (Losses) on Trading Securities, net; (ii) Interest and Dividends; and (A) Other. (2) Interest and Other includes: (i) Interest and Dividends and (ii) Other. (3) Other Compensation includes: (i) Commissions; (ii) Payroll Taxes; and (iii) Other Compensation. (4) Other Compensation includes: (i) Payroll Taxes and (ii) Other Compensation. Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 11 OF 41 EFTA01079054 Project Vega RFS PrOletted Income Statements & Discounted Cosh Flow Analysis 0o0onin thonono',. a/Oilsnixed GAAP GAAP Adjusted Adjusted Projected Year Ending December 31, 2015-2020 2015-2025 2015 2016 2017 2018 2019 2020 2021 2022 20:0 2024 2015 CAGR CAGR REVENUES Investment Management Fees 49.889 52543 57,965 62,806 68)65 73,878 80,291 87,276 94,661 102219 109.892 8.2% 12% Professional & Administratne Services Fees 20,340 21.351 22.014 23,241 20409 25,851 27,266 28.759 30,266 31,700 33,031 4.9% 5.0% Trust & Estate Services Fees 14,905 15)29 16,771 18,113 19)62 21,127 22,817 20,643 26,550 28,072 30.392 7.2% 7.4% Interest & Other 566 399 411 434 161 489 520 554 590 629 670 3.9% 1.7% Total Revenues 86703 90)19 97,191 104.594 112497 121.345 130394 141231 152.067 163,020 173.914 7.2% 7.3% % change from prior year NA 6.016 7.0% 7.6% 7.7% 7.8% 7.9% 7.9% 7.7% 7.2% 67% WENS!) Salaries 2,am 27365 29,093 31,087 33)28 35,552 38,070 40,775 43,591 46217 49)26 7.2% 7.0% 401(11 Plan & Post.Retirement Bends 1µ9 1,720 1,829 1,954 2)89 2,235 2,393 2563 2,740 2,917 3.094 9.0% 7.9% Other Employee Benefits 2,718 2,836 3,015 3,222 3,444 3,684 3,94S 0,226 4,518 4,810 5,102 6.3% 6.5% Stock Incentive Plan 2,830 3,794 3,790 3,794 3,794 3,794 3,794 3,790 3,794 1,794 3,790 6.0% 3.0% Other Compensation 2134 4174 2.311 2070 2µ0 2.824 3.024 3,239 3.463 3.688 3.911 S.8% 62% Compensatan (Pre Bonus) & Bend As 34,120 37)89 40,042 42,527 45,194 49,089 51,226 50,597 58,106 61,626 65,127 7.0% 66% Occupancy 6,109 54843 5,661 5,724 5,725 5,729 S,765 5,791 5,823 5,903 5,932 -1.3% 0.3% Marketing 663 721 901 1,127 1,408 1,760 2,280 2.750 3,031 4,297 6372 21.6% 23.3% Cannualicatans 2,517 2.374 2,703 2,838 2,980 3,129 3,285 3,449 3,622 3)03 3,993 4.0% 4.7% Professional Fees 6,226 5,752 5.925 6,102 6.285 6,074 6,668 6868 7.074 7,286 7.506 0.8% 1.9% Servicing Fees 13,981 14)80 14,983 16,042 17,183 18,017 19,709 22186 22,689 24,211 25,739 S.8% 64% Travel 8 Entertammem 1,048 1426 1329 1,241 1.366 1,502 1,652 1.818 1,999 2,199 2.419 7.5% 67% General &Administrative 4,022 4,453 4.587 4,724 4,866 5,012 6162 5.317 5,077 5,641 5,810 2.5% 2.8% Other Expenses 120 114 122 131 141 152 164 177 191 205 218 4.9% 62% Total Operating Espemes 69,206 72,137 76.052 80,457 85,148 90 263 95,873 101.950 109,419 115,172 122315 5.5% £8% ERMA (Pre Saws, 16,494 18,692 21340 24,137 27,449 31,082 35,022 39,277 43,649 07,848 51.868 11.5% 12.1% Bonus Pool 112,503) (11.873) (11.663) 02,3511 (13412) 114,561) (167071 (16.948) 118,249) (19,5621 (20,878) 3.1% £3% Depreciation & Amortizatsan (7551 (532) IS59) (5871 (6161 (647) (679) 1713) (749) (7861 1825) 4.1% 0.9% PRETAX INCOME 3,239 6.577 8,918 10.999 13121 15,874 11635 21,616 24,652 27,499 30,165 37.4% 25.0% % change from prior year NA I03.2% % 23.3% LI% 1. % 17.46 1 14.0% 11.5% 9.7% ANANOAL PATIOS Pre Tax Margin 3.8% 7.2% 9.2% 10.5% 11.8% 13.1% 14.2% 15.3% 16.2% 16.9% 17.3% Total Compensation/Revenues 543% 54.5% 53.2% 57-7% 52.1% 51.6% 51.1% 50.7% 50.2% 49.8% 49.4% Occupancy /Revenues 7.1% 6.2% S.8% 53% £1% 4.7% 4.4% 4.1% 3.8% 3.6% 3.4% Marketing/Revenues 0.8% 0.8% 0.9% 1.1% 1.3% 1.5% 1.7% 1.9% 2.3% 2.6% 3.1% Ccenrmaticatans / Revenues 2.9% 2.8% 2.8% 27% 2.6% 2.6% 25% 2.4% 2.0% 1.3% 2.1% Professional Fees/Revenues 7.3% 63% 6.1% 5.8% 5.6% 5.3% &I% 4.9% 4.7% OS% 4.3% Servicing Fees/Revenues 16.2% 15.4% 15.4% 15.3% 15.3% 15.2% 15.1% 15.0% 14.9% 14.9% 14.8% Travel& Entertainment/Revenues 1.2% 1.1% 1.2% 1.2% 1.2% 1.2% 1.3% 1.3% 1.3% 1.3% 1.4% General & Administrative/ Revenues 5.2% 4.9% 4.7% 4.5% 4.3% 4.1% 3.9% 3.8% 3.6% 3.5% 3.3% Bonus Pool/Revenues 14.6% 12.7% 12.0% 12.0% 12.0% 12.0% 17-0% 12.0% 12.0% 12.0% 12.0% TOTAL MANAGED ASSL1SISMM) 10,443 12295 12239 13,259 10)73 15,617 16,973 18.449 19,966 21.312 23,075 8.4% 8.3% 94 change from prior year 8.2% 14% 13% 8.4% 8.7% 8.7% 8.7% 8.2% 7.7% 7.3% TOTAL ADVISED ASSETS (SMIN) 16,306 17,628 19,078 20,645 22.349 24,232 26,277 21498 30,769 33,071 35185 8.2% 8.1% 94 change from prior year 8.2% 8.2% 82% 8.3% 8.4% 8.4% 8.5% 80% 7.5% 7.0% TOTAL ADIANISTEREO ASSETS (SINMI 28,649 30,958 33175 36.191 39,142 42,369 05)64 46652 53)09 52,001 61299 8.1% 7.9% 96 change from prior year 8.2% 8.1% 8.1% 8.1% 8.2% 8.3% 8.3% 7.8% 7.3% 68% Notes: a line item reflect unadmstoi figures for 2014E and 2015E Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 12 OF 41 EFTA01079055 Project Vega RFS Needed Income Statements & Discounted Cosh Flow Mahon Ocean in thonorrth. unless mrted Pro forma Projected Year Ending December 11. 2015 2016 2017 2018 2019 2020 2021 2022 2028 2024 2026 Taxes Paid (1) 2.631 3.567 4,400 5.328 6.349 7,454 8.647 9,861 11,000 12.066 5-YEAR CASH FLOW ANALYSIS Net Income (1) 3,946 5,351 6,600 7.993 9,524 Stock Incentive Plan 3,790 3,794 3,794 3,794 3,794 Stock Incentive Plan Cash Taxes 110001 (1.000) (1,0001 41.0001 (1,030) Depreciation & Amortisaban - 532 559 587 616 647 Carnal Expenditures - 410001 1587) (6161 (6471 4679) Additions to Waiting Capital (2) . (3281 02) (7341 (7821 (533) Oistnbutions 5,944 7.465 8,630 9,974 11,433 Terminal Value - 175,197 5,944 7.465 8430 9,974 18%630 10•YEAR CASH RAY/ANALYSIS Net Income (1) 3,946 5.351 6,0:0 7,991 9,524 11,181 12,970 14,791 16,499 18.099 Stock Incentive Plan 3,790 3,790 3,794 3,790 3,794 3,790 3,794 3,794 3,790 3,794 Stock Incentive Plan • Cash Taxes 110001 (1,000) (1,0:01 (1000) (1,000) 110001 0.0001 (1,000) 11,0001 (1.000) Deprecation & Amortisaban S32 559 587 616 647 679 713 749 786 825 Capital Expenditures 410001 1587) (6161 (6471 4679) (7131 17491 (786) (8251 1867) Additions to Working Capital (2) (3281 1652) (7341 (7821 (353) (9351 0.0141 (1,077) 11.1261 42.157) Ontnbutions 5,944 7.465 8,630 9,974 11,433 13,006 14,715 16.470 18,129 19,695 Terminal Value • • • 233.914 5,944 7.465 8.630 9,174 11.433 13.006 14,715 16.470 18.129 253.609 TERMINAL MULTIPLE / VALUES PRESENT VALUE ANALYSIS Sth Year 10th Year A Maanum Terminal Multiple (3) 10.50x 10.50x Discount Itate44) 11.82% 15.46% Mmimurn Termmal Multiple (3) 5.806 5.00x Five.Year PV 130,571 112,929 Maanum Growth Rate (5) 20.00% 20.00% %of PV Represented by PV of Terminal Value 763% 75.6% Mmimurn Growth Rate (5) 5.00% 5.00% Discount Relative to PV at Industry E. NA 13.5% 3-year Pre.Tax Income GAGA 15.66% 10.15% Ten•Year PV 140,074 108143 Multiple of Pre-Tax Income (6) 8.91* 6.89* %of PV Represented by PV of Terminal Value 54.6% 51.1% Percentile Rank vs. Guideline Ccenpanes 480% 14S% Discount Relativeto PV at Industry 6, NA 22.3% Terminal Value (7) 175,197 233,914 Weighted Average PV (SI 134,372 111,295 Weighted Average Discount at Industry L, NA 17.0% footnoteson blowing pap. Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 13 OF 41 EFTA01079056 Project Vega RFSProjededIncome Statements & Discounted Cosh Flow Analysis Ocean u, Maori*. emirs, mrted Notes: (1) In the case of a nonmarketable minority interest valuation of a C corporaton, the DCF analysts utilizes the &helm.* tax rate tithe subject firm (40.0%). (2) Additions based on the ',crease in annual operating expenses. (3) Compared to 25th and 75th percentile multiples for guidelne acquisitions of g.3x and 116x, respectively. and the 25th and 75th percentile multiples for guideline publicly traded fins, after applicabk discounts and premiums, of 6.4x and 8.0x, respectively. (4) Case A corresponds to the subject fern's cash flows discounted at the median estmated cost of equitycarnal of the pakline publicly traded companies, reflecting actual kverage ratios and applicable size premiums. Case 0 corresponds to the subject firm's cash flows discounted at an emanated cost of equity capital reflecting a 573 basis point size prerniwn based on the subject firm's relative valuation and a 0 basis pont corrpantspecific risk member.. (5) Compared to 25th and 75th percenNefiveyear estimated EPS growth rates for publicly traded calvaries of 64% and 15.0%, respectwely. (6) Terminal multiplesare equal to TMun•(TMuvt TMwm DOG G,... /4 C‘,„ • G.., IdMICTO trainman terminal multiple a maximum terminal multiple G a 3-year trades CAGR tar pre-tax mcome plus ncocash add backs (tie., stack ncemwe plan). Gun a minenum growth rate Gus, a maximum growth rate (7) Prior to applyng a multiple to pretax income, the stock intent.** plan pretax expense is added back to the Sth and 10th year pretax income. (8) 6016weighting appked to Sitar OCF, 40% weighting applied to 10year OCP. Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 14 OF 41 EFTA01079057 Project Vega Working Capitol & Other Assumptions 0odan in Movsoexis. Intl noted Projected Year Ending December 31, 2015 2016 2017 201.8 2019 2020 2021 2022 2023 2024 2025 WOOXING CAPITAL Opening Balance 83,217 11.063 11.391 1/.013 11.777 13.559 14.411 15,346 16.360 17.437 18,563 Ontributan of Excess Workng Carnal (72,150) Additions to Working Capital (1) 316 651 734 781 853 935 1.014 1.077 1.116 1,157 Clown Balance 11,063 11,391 12.043 12.777 13,559 14.412 15.346 16360 17.437 18.563 19,720 Portfolio Interest Income (2) 399 411 034 461 489 520 554 590 629 670 Cumulative Additions to Working Capital: &Ea ASSUMPTIONS Portfolio Interest Income Yield (2) 3.61% 3.61% 3.61% 3.61% 341% 3.61% 3.61% 3.61% 3.61% 3.61% %Change in Total Revenues 5.97% 7.02% 7.62% 7.66% 7.77% 7.87% 7.90% 7.67% 7.10% 6.73% %Change in Salaries (3) 90.00% 90.00% 9.07% 6.31% 6.85% 6.89% 6.99% 7.08% 7.11% 191% 6.48% 6.05% 401(111Plan& Post.Retirement Benefit as %of Salaries (4) 6.29% 6.29% 6.29% 6.29% 6.29% 6.29% 6.29% 6.29% 6.29% 6.29% Other Employee Benefits as %of Salaries (5) 10.36% 10.36% 10.36% 10.36% 10.36% 10.36% 10.36% 10.36% 10.36% 10.36% Other Compensation as % of Salaries (6) 7.94% 7.94% 7.94% 7.94% 7.94% 7.94% 7.94% 7.94% 7.91% 7.90% %Change in Office Rent (7) 4.20% 0.95% 1.12% 0.01% 0.07% 0.63% 0.45% 0.55% 1.38% 0.48% %Change in Mattes 8.75% 2&00% 25.00% 25.00% 25,00% 25.00% 25.00% 25.00% 25.00% 25.00% %Change in Communications 2.26% S.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% &00% %Change n Professional fees -7.61% 3,00% 3.00% 3.00% 3.00% 3.00% 3.00% 100% 3.00% 3.00% %Change n Servicing fees 0.86% 7.02% 7.07% 7.11% 7.18% 7.24% 7.27% 7.10% 6.71% 6.31% %Change n Travel & Entertainment 4.10% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% %Change in General & Administrate* 0.70% 100% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% %Change in Stock Incentive Plan 34.06% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00/6 Other Expenses as %of Revenues 0.13% 0.13% 0.13% 0.13% 0.13% 0.13% 0.13% 0.13% 0.13% 0.13% Bonus Pool as% of Revenues (8) 12.74% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% %Change in Depreciation &Ainonization (9) 5.00% -2934% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% SAO% %Change in Stock Incentive Plan Cash Taxes 0.00% NA 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Capital Expenditures (101 1.05x 1,000 587 616 647 679 713 749 786 826 867 Non Cash Add Backs Stock Incentive Plan 2,830 3,794 3.794 3,794 3,794 3,794 3,794 3,790 3,794 3,794 1794 Total 2,830 3,794 3,794 1,794 3,794 3,794 1,794 3,790 3,794 1,794 3,794 Notes: (1) Equal to the amount necessary to ecrease (decrease) working capital to 16.67% of RFS total operating expenses excludes the stock incentive plan and bonus pool (2) Pcmfole interest income based on opening balance of working capital. Assumes 100.00% of waken capital balance bears interest at 3.61%. (3) Salaries increase 9.07% in 2036 and then grow at 90.00% of revenue growth through 2020. In 2021 and 2022, revenues grow at 90.00% and 90.00% of revenuegrowth. After 2022, salaries grow at 90.00% of revenue growth. (4) 401(k) plan and past.regrement benefit equal stated percentage of salaries. (5) Other empbyee benefits equal stated percentage of salaries. (6) Other compensation equals stated percentage of salaries. (7) Office rent increases or decreases by stated percentage based on actual lease agreement and growth invariable costs of 3.00%. The decrease from 2015 to 2016 is due to space canes off lease that win not be replaced. (8) Bonus pool equals 12.74% of revenues in 2016 and 12.00% of revenues from 2017 onwards. (9) Depot:mean and amortization 'notches management's expectaticns in 2016 and Nemeses by 5.00% per year thereafter. (101 Capital expenditures are estimated by management for 2016 and are assumed to equal 1.05x depreciation expense from 2017 onwards. Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 15 OF 41 EFTA01079058 Project Vega Client &earth Rote Assumptions Dacus w entflims, unali onembe 4.4:04 FINAN0.41 SERVICES • CENT ACCOUNTS S Year 10 Year Projected At or For the Year Ending December 31, Avenge/ Avenge/ 2015 2016 2017 2018 2019 2020 2021 2022 2083 2024 2023 CAGE CAGE Banns Accomts 345 361 379 392 418 439 461 484 506 526 New Accounts ill 15 IS 19 20 21 22 23 22 20 18 Total Accounts 345 361 379 398 418 439 461 484 506 526 544 491% 465% New Accounts (% of Spiriting Accounts) 45% 5.0% 5.0% 5.076 50% 5.0% 5.0% 4.5% 4.0% 15% Fee Per Account l$0301 51 51 51 51 51 51 51 51 S1 51 Total Annual Fees 6001 17,572 1Sµ5 13,905 19,851 20,248 21,896 22,926 24,147 15491 26,37i 27,343 4_50% 4.52% Fee Per Account Mnwl Growth 0.5% OA14 0.0% 0.0% 0.0% 0.0% 0.0% OA% 0.0% 0.0% UNFAV SYNC* Feel (6000) 17,572 1Sµ5 13,905 19,951 20)348 21,896 22.996 24,147 15491 26,371 27,343 teat= At III new accounts Looked ratiON Vita-ghoul the year. Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 16 OF 41 EFTA01079059 Project Vega External Servking Expense Rot'lanyard &Won in malass, unless caltovMe toad 5 Year 10Year At Nov.30, Protected At or For the Year Ending December 31„ Avenge/ Average/ 2015 2016 2017 2015 2019 2020 2021 2022 2023 202A 2025 CAGE CAGE SERVICING EXPENSE UNNW & wealth Management Assets 2214 23,920 25,334 27,900 30.132 32,543 35,147 37,958 40,805 43,661 46,499 807% 7.70% Fee Baas 0.03% 0.03% 003% 0.03% aim' 0.03% 0.03% 0.03% 0.03% 0.03% 0.03% SeMcing Fee (30000 7,362 7,656 8269 8,930 9,645 10,416 11,250 12,150 13,090 14,038 14,984 7.19% 7.37% Partnership Assets 2,044 2,203 2,384 2,575 2.781 3,003 3.234 3,503 3,766 4,029 4.291 1300% 7.70% Fee Data 004% 0.04% 0.0116 0.04% acm% 0.04% 0.04% 004% 0.04% 0.04% 0.04% multiple.- 3.705 3.705 3.704 3.70s 3.705 3.701 3.704 3.70e 3.705 3.701 3.705 Servicing Fee (SOON 3,023 3,146 3.398 3,670 3.963 4,283 4,623 4,993 5,379 5,768 6,157 7.19% 7.37% Sub-Advisory/ Institutional Assets 1,610 1,766 1.347 2,144 2.369 2,653 2,971 3,328 3,710 4,119 4,351 1037% 1028% Fee Data 0.02% 0.02% 0.02% 0.02% acu% 0.02% 0.02% 002% 0.02% 0.02% 0.02% Servicing Fee (SOON 324 339 371 409 451 502 562 630 701 783 867 9.16% 10.35% Account Fee (3000s) 3,170 2,959 2,945 3,033 3.124 3,283 3.314 3,414 3,516 3,622 3,730 03016 1.64% Assigned Growth 9.8% 30% 30% 3.0% 3.0% 30% 3.0% 3.0% 3.0% 30% Total Assets 25,812 27294 30,165 32,620 35.282 38,199 41.361 44,789 48,281 51,309 55,342 316% 7.93% Servicing Foes (6000S1 13,881 14,000 14,983 16,042 17.183 18,417 19,749 21,186 22,689 24,211 25,739 522% 6.37% Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 17 OF 41 EFTA01079060 Project Vega PartnershipServidagrees CloYets ochetwisenowd S Year 10Year At Nov.30, Projected At or For Me Year Ending December 31, Morale/ Average/ 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 CAGR CAGR TMALPARTNERSIWPSSETS Besotting Pannership Assets 2,044 2.208 2.39A 2,575 2,781 3.003 3,244 3,503 3,766 4,029 Net New Business 164 177 191 206 222 240 259 263 264 262 Total Rehm - • • Ending Partnership Assets 2044 2208 1,384 2575 2.781 3,003 3244 3,503 3.766 4.029 4,291 800% 7.70% %Change FromNor Year 8.00% 8.00% 800% 1100% 8.00% 8.00% 8.00% 7.50% 3.00% 630% Net New Business 800% 8.00% 800% 803% 8.00% 81076 8.00% 7.50% 3.00% 6.50% 8.00% 7.70% Total Return 000% 0.00% 0.00% 0.00% 0.00% 0.00% O00% 0.00% 0.00% 0.00% 0.00% 0.00% Total Return on Net New BOSOM III OM% 0.00% 010% CL00% 0.00% 0.00% O00% 0.00% 0.00% 0.00% 0.00% 0.00% Net Asset Growth 8.00% 8.00% &CO% 8.00% 8.00% 600% 8.00% 7.50% 3.00% 6.50% 8.00% 7.70% Average Partnership Assets 2064 2,126 2296 2.479 2,678 23192 3,123 3,373 3,634 3.898 4,160 AVOW* F ee 63116 0.134% 0.137% 0.137% 0.137% 0.137% 0.137% 0.137% 0.137% 0.137% 0.137% 0.137% Partnersho Fees ¿06061 2,768 2,986 3.139 3,390 3,661 3,954 4.270 4,612 4,969 5329 5,688 7.39% 7.47% Notes: (II Assumes net new bulaness booked ratably throughout the year. Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 18 OF 41 EFTA01079061 Project Vega Investment Management AUA Growth Rate Assumptions DoSeers am(tts ~mist n>f0 5Year 10Year At Nev. 30, Projected At or Forth/ Year Ending December 31, Average / Average/ 2015 2016 2017 2018 2019 2020 2021 2022 2023 2014 2025 CA% CAGR TO741INVESTMENT MANAGEMENT ASSETS %pinkie IM Assets 23.768 25,686 27,781 30,045 32,501 35,1% 38,118 41,286 44,516 47,780 Net New %fines 1,918 2,095 2.266 2,456 2,695 2.922 3,168 3,230 3.265 3,270 Total Retesn • • . EndIng IM Assets 23,768 25,686 27,781 30045 32.501 35.196 38,118 41.286 44.516 47393 51,050 8.17% 7.94% %Change FromPlot Year 8.07% 8.16% 8.15% 8.18% 829% 8.30% 831% 7.82% 7.33% 684% Net New Dullness 8.07% 8.16% saw am% 8.29% 8.30% 8.31% 7.82% 7.33% 684% 8.17% 7.95% Total Return 000% 0.00% 000% 000% 0.00% 0.006 000% 0.00% 0.00% 000% airs 0.00% Total Return on Net New Bushiest 000% 0.00% acox osiost 0.00% 0.006 000% 0.00% 0.00% 000% aim 0.00% Net Asset Grenvlb 8.07% 8.16% 815% 8.18% 829% 8.30% 8.31% 7.82% 7.33% 634% 8.17% 7.95% Average investment Management Assets 24,727 26,734 28913 31,273 33,848 36,657 39,702 42,901 46,148 49,415 Average Fee Basks 0.217% 0.217% 0.217% 0.218% 0.218% 0.219% 0220% 0321% 0.222% 0222% Management Fc%(000N 19,627 21,340 23,250 25,345 27.741 30,462 33,461 36.6110 40039 43,521 Administration sees (000s) 33,913 36,626 39,556 42.720 46.138 49,229 53,815 57,981 62379 66,371 Tetal Investment Management Fees (000s) 49,2429 53,540 57,965 62,806 65,065 73,878 80,291 87,276 94,661 10;219 109,892 8.17% 8.22% Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 19 OF 41 EFTA01079062 Protect Vega Investment Management AUA Growth Rote Assumptions Dacits tAllen,unless othetwise awed 5Year 10Year At Nov.30, Projected At or For the Year Ending December 31, Average/ Average/ 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 CAGR CAGR UNSAY AVM Ileenning Balance - Existing AUM 5.485 5.485 SµS SASS 5.485 Sµ5 SAR5 5.485 SµS SASS Total Rettrn Ending Balance .. Fading AUM Sµ5 SASS SASS SµS SA85 5µS5 SµS 5.48.5 5.485 SµS SARS BeennIng Balance .. New AUM 439 913 1A25 1977 2.374 3,219 3,915 4,620 6,328 Net New Business 439 474 612 553 597 645 696 706 707 703 Total Reties • • • • • • Ending Balarce .. New AUM 439 913 1A25 1,977 1574 3219 1915 4.620 5228 6031 Ending Balance .. 'totalNSA SµS 5,924 6.398 6909 7A62 8,069 8204 9µ0 10,106 10,813 11615 8.00% 7.70% %Change FromMIN Year &OM 8.00% 600% 603% 8.00% 8.07% 800% 7.50% 7.00% 630% %ol Total PA Assets 23.06% 2106% 23.03% 2300% 2196% 22.90% 22.83% 22.77% 22.70% 22.63% 2236% Net New Business &OM 8.00% &OD% 800% 8.00% 8.00% 800% 7.50% 2.00% 630% Total Rehm 000% 0.00% 000% 0.00% 0.00% 0.00% C00% 0.00% 0.00% 000% Total Retinas Net New Sassiness III 000% 0.00% 000% 000% 0.00% 0.00% 0.00% 0.00% 0.00% 000% Net New Assets Growth 8.00% 8.00% &OD% 800% 8.00% 8.00% 800% 7.50% 2.00% 630% Average Managed Assets 6,704 &161 6,654 7,1116 7,761 9382 9,052 9,753 10µ9 11,164 Average Fee Basis 0.196% 0.196% 0.19E% 0.196% 0.196% 0.196% 0.196% 0.196% 0.191% 0.196% Management Fees OXON 11,163 11056 11020 14,062 15,187 16,402 17,714 19,085 20µ7 21,847 %of Total 20.8% 20.8% 20.7% 20.7% 20.6% 20.4% 20.3% 20.2% 20.0% 19.9% UMW NONAMNAGEO ASSETS BegrnIng Balance .. Existing AUAdmInistratIon 16,663 16,663 16,663 16,663 16,663 16,663 16,663 16,663 16,663 16,663 Total Rehm Endirg 8Sance .. Existing AUDArtwastration 16,663 16,663 16,663 16,663 16,663 16,663 16,663 16,663 16,663 16,663 16,663 awning Balance .. Now AUbsinistraton 1,133 2,773 4,328 6,003 7,821 9,779 11,895 14937 16,1116 Not New Business 1,333 1,440 1.855 1,679 1,814 1,959 2,115 2,142 2,169 2,135 Total Return • • • . Ending Iltanee - New AUAdminstratian 1,333 1773 4.328 6/007 7.821 9,779 11895 14.037 16,186 18321 Ending Saone.. 'total AUMImInIstratIon 16,663 17.996 19,436 20,991 22,670 24484 26µ3 15.658 30.700 32,849 34.984 8.00% 7.70% %Change FromMIN Year 8.00% 8.00% &OD% 600% 8.00% 8.1:0% 800% 7.50% 7.1:0% 630% %ol Total IM Assets 7011% 7606% 69.96% 69.87% 69.75% 6µ.56% 69.37% 69.17% 68.96% 68.76% 6833% Net New Business 8.00% 8.00% &OD% 800% 8.00% &CO% 800% 7.50% 3.00% 630% Total Mixon 000% 0.00% 000% COOK 0.00% 0.00% 060% 0.00% MOD% 000% Total Rehm on Net New Siamese III 000% 0.00% 0.00% 0.00% 0.00% 0.00% 000% 0.00% 0.00% 000% Net New Assets Growth 800% 8.00% &OD% &CO% 8.00% &OD% 603% 7.50% 3.00% 630% Avenge Administered Assets 17,330 18.716 20214 21,331 23,577 25µ3 27,500 29,629 31,774 33,916 Avenge Fee Basis 0.196% 0.196% 0.196% 0.196% 0.196% 0.191% 0.196% 0.196% 0.19E% 0.196% Administration Fees (000s) 33,913 36.626 39,556 42,720 46,138 49,829 S3)315 67,981 62,179 66,371 % of Total 63.3% 63.2% 630% 62.8% 62.5% 62.1% 61.7% 61.3% 60396 60.6% Notes: (II Assumes net new business booked ratably throughout the year. Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 20 OF 41 EFTA01079063 Project Vega Investment Management AUA Growth Rote Assumptions 000d I tAftilnA, vatii ol#MYt !Wed 5Year 10Year At Nov.30, Protected At or For the Year Ending December 31, Average/ Average/ 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 CAGR CAGR SUSADVISORY/ INVITIU7K3NALASSEIS Regaining Balance - EXIStill€AUM 1,505 1505 1,505 1,505 1.505 1,505 1,505 1505 1,505 1.505 Total Return Ending Balance .. Ealing AUM 1305 1.505 1505 1305 1505 1505 1.505 1505 1505 1.505 1506 Regaining Balance - New AUM 181 383 610 863 1,148 1,666 1322 2.205 2,613 Net New BuNness 181 202 227 254 284 318 357 383 4011 432 TWA Rotten • • • • Ending Balarce .. New AUM 181 383 610 863 1.148 1,466 1,822 2.205 2.613 3.046 Ending Balance .. 'total AUM 1,505 1,686 1388 2,115 2,369 2.663 2,971 3,328 3,710 4,119 4,551 12.00% 11.70% %Change FromPilot Year 12.00% 12.00% 12.00% 12.00% 12.00% 12.074 1200% 11.50% 11.00% 1030% %of Taal AUM 633% 6.56% 6.80% 7.04% 7.29% 7.54% 7.79% 806% 8.34% 8.62% 891% Net New Business 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 1200% 11.50% 11.00% 1050% Total Rehm 000% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Total Rotten on Net New Business III 000% 0.00% 0.00% 0.00% 0.00% 0.00% 000% 0.00% 0.00% 0.00% Net New Assets Growth 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 11.50% MOD% 11150% Average Manage," Assets 1,596 1,7117 2002 2,242 2,511 2.312 3,149 3,519 3,914 4,335 Average Fee Basis 0.503% 0.500% 0.500% 0300% 0.500% 0.500% 0300% 0.500% 0.500% 0.503% Management Fees (0000 7,978 8,935 10,008 11,209 12554 14060 15,747 17,595 19,572 21,674 ft of Total 145% 15.4% 153% 163% 17.0% 175% 180% 18.6% 19.1% 19.7% SUSADVISORY ASSE15 • NIKKO 8066(048 Balance- (Acting AUM 114 114 114 114 114 114 114 114 11A 114 Total Return Ending 84ance .. EsistInq AUM 114 114 114 114 114 114 11A 114 114 114 114 Ileenning Balance .. Now ALMA 1341 (55) 1661 111AI (114) (114) 11141 (114) (114) Not New Byline:5 134) 1211 (30) 130) Total Return Ending Balance New AUM 1341 1551 (85) (1141 11141 (114) (114) 11141 (114) (114) Ending Balance Total AUM 114 80 59 30 .100.00% 400(00% %Change From Price Year 2929% .10000% NM NM NM NM NM NM %of Taal AUM 043% 0.31% 0.21% 010% 000% 0.00% 0.1:0% 0.00% 0.00% 0.00% 000% Net New Business 2929% .10000% 0.00% 0.00% 000% 0.00% OM% 000% Total Rotten 0.00% 0.00% DLO% 000% 0.00% 0.00% 0.00% 0.00% OM% MOM Total Return on Net New Business III 0.00% 0.00% 000% 0.00% 0.00% 0.006 000% 0.00% 0.00% 000% Net New Assets Growth .2939% .26.20% 50.00% 10100% 0.00% ODD% 000% 0.00% ODD% ODOR Average Managed Assets 97 70 44 15 Average Fee 6314 0300% 0.500% 0.500% 0300% 0.000% 0.000% 0.000% 0.000% 0060% ODOM Management Fees (000F1 486 348 222 74 % el Total OS% GEM 0.4% 0.1% 0.0% 00% 0.0% 0.0% GO% 0.0% Notes: (II Assumes net new busiest booked ratably througtout the year. Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 21 OF 41 EFTA01079064 Project Vega Twit ALSA Growth Rate Assumptions Darin 0~4amiss orhembe no:n0 rrear 10Year At Nov.30, Pr.:Weed At or For the Year Ending December 31. Average/ Average/ 2015 2015 21/17 2018 2019 2020 2021 2022 2023 2024 2025 CAGR GDR 70141 TRUST ASSETS Bs:gaining Trust Assets 4,881 5,272 5,69E 6,149 6.641 7,172 7,746 8.366 8,993 9,623 Not New Business 391 412 455 492 531 574 620 627 630 625 Total Retisn • • • . Ending Trust Assets 4.3411 5.272 5,69E 6369 6,641 7,172 7,746 8.366 8.993 9,623 10248 800% 7.70% %Change From Prior Year 803% 8.00% 810% 800% 8.00% ILCO% 800% 7.50% 1.006 6_50% Net New Business 8.00% 8.00% 8.01% 800% 8.00% 8.00% 800% 7.50% 1.00% 6_50% 800% 7.70% Total Rehm 0.00% 0.00% 010% 000% 0.00% 010% 0.00% 0.00% 0.00% 0.00% 0.00% 010% Total Rehm on Net New Business 0.00% 0.00% 010% 0.03% 0.00% 0.00% 000% 0.00% 0.00% 0.00% 0.00% 010% Net Asset GroMb 8.00% 8.00% 810% 800% 8.00% 8.00% 200% 7.50% 2.00% 650% 8.00% 7.70% Average Truss Assets 5,077 5.483 5.921 6,395 6,907 7,459 8256 8679 9208 9,935 Average Fee Bases 0306% 0.306% 0.30466 0306% 0306% 0306% 0306% 0.306% 0.30166 0.306% Management Fees (MON 10,620 11,470 12)B8 13,379 14,449 15,605 16,853 18.158 19,473 20,785 Administration Fees (0000 4,909 5,301 5,725 6,183 6,678 7212 7,789 8392 9200 9.607 Total 'Trust Fees (0001) 14,905 15,529 16.771 18,113 19,562 21327 22217 24,643 26.550 28,472 30,392 7.23% 7.38% Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 22 OF 41 EFTA01079065 Project Vega Twit AU6 Growth Rote Ariumptien &Woes N ra1Was,uo(rts ott.wwise two., S Year 10 Year At Nev. 30, Preeeeted At or For the Year Ending December 31, Avenge/ Average 1 2015 2016 2017 2018 2019 2020 2011 2022 2023 2024 1025 CAGR CAGR TRUST AIM Beereng Balance - Existing AOM 3,338 3,338 3,339 3,338 3,338 3,338 3,338 3238 3338 3,338 Total Behalf Ending Balance .. bating RUM 3,338 3,338 3.338 3.339 3,338 3.338 3338 3338 3233 3338 3338 Besoreng Balance - New AUM 267 556 867 1103 1.567 1,959 2,383 2.312 3,243 Net Now Business 267 288 312 336 363 392 424 429 431 428 10al Return • • • • • • • Endlog 8Narce .. New AUNI 267 556 867 1,203 1.567 1,959 2.383 2.912 3.243 3.670 Ending Balance ••lotalA0M 3.338 3,605 3.891 4.205 4,542 4,905 5,298 5,721 6,150 6,581 7009 8.00% 7.70% %Change Framed« Year 800% 8.40% 820% 8.00% 8.00% 8.0:0, 800% 7.50% 7.40% 630% %ol Total Trust Assets 61139% 68.39% 68.39% 68.39% 6839% 68.39% 68.391 6839% 68.29% 68.39% 6839% Net New Dullness 800% 8.00% 8.0D% 803% 8.00% 820% 800% 7.50% 7.00% 630% Total Rehm 000% 0.00% 0.00% 003% 0.00% 0.00% 0.00% 0.00% 0.00% 000% Total Rehm on Net New BOSOM III 000% 0.00% 0.00% 0.00% 0.00% 0.40% 0.00% 0.00% 0.40% 000% Net New Assets Growth 8.0011 8.00% &CO% 300% 8.00% 8.00% &OD% 7.50% 7.00% 650% Average Managed Assets 3,471 3,750 4,050 4,374 4,723 5,101 5509 5,936 6.366 6,795 Avenge Fee BUB 0306% 0.306% 0.301% 0306% 0.306% 13301% 0306% 0.306% 0.306% 0309% Management hail/CON 10,620 11,470 12,388 13,379 14,449 15,605 16.853 18,158 19,473 20,785 % of Total Tryst Fees 68.4% 68.4% at% 68,4% 68.0% 684% 68.4% 68.0% 654% 68.4% TRUST NON.M4.10030.05521S BeonnIng Balance •• Existing 40Administraton 1,543 1,543 1.5.13 1,543 1543 1.343 1,543 1,543 1.513 1,543 TOtal Return EndIng Balance .. basting AUAdmastration 1.503 1.543 1,543 1.503 1,503 1,543 1,543 1.543 1,543 1.513 1,543 Beganing Balance - New AUAttnInKtr36on 123 157 401 556 724 906 1,101 1200 1,499 Net Now &Junes: 123 133 144 155 168 181 196 198 199 198 Total Return • • EndIng 13ance .. New 40Adminairaton 123 257 401 556 724 906 1,101 1.300 1,499 1.696 Endsng 88.3483 - 'Total AUMminiticaton 1.513 1.666 1,800 1,984 2/199 1,267 2µ8 1,644 1.943 3,012 3239 8.00% 7.70% %Change From ela Year BM% 8.00% 810% 8.03% 8.00% 810% 800% 7.50% 7.00% 650% %CI( TOtal lrust Assets 3161% 3161% 31.61% 3161% 3161% 31.61% 31.61% 31.61% 31.61% 31.61% 31.61% Net NewButlnets SD» 8.00% &OD% 300% 8.00% 8.00% 800% 7.50% 710% 630% TOtal Return 000% 0.00% 0.00% 000% 0.00% 0.00% 0.00% 0.00% ODO% 0.00% TOtal Rot," on Net New BOSOM III 000% 0.00% 0.00% 000% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Net New Assets Growth 800% 8.00% &CO% 800% 8.00% ILCO% 800% 7.50% 710% &SO% AVOW* Administered Assets 1,605 1733 1372 2,021 2,133 2.358 2,546 2,743 2,912 3,140 Average Fee Bata 0.305% 0.306% 030E% 0306% 0.306% 0.306% 0305% 0.306% 0.305% 0305% Admin%ln0ºn F863(0003) 4,909 5.301 5,725 6,183 6.678 7,212 7,789 8,392 9,000 9,607 % e( Total Trust Fees 31.6% 31.6% 316% 31.6% 31.6% 31.6% 31.6% 31.6% 316% 31.6% MOWS: (II assumes net new business booked ratably througtout the year. Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 23 OF 41 EFTA01079066 Project Vega Net New Easiness & Total Return A%sumption% Arithmetic Projected Year Ending December 31, Avg Taal 2016 2017 2018 2019 2020 2021 2022 SECS 2024 2025 Return NET NEW BUSINESS UNNWAuhl 3 Pessimntk 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 340% 3.00% 2.50% Underperican 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% LSO% 5.00% 4.50% Neutral 800% 100% 8.00% 8.00% 800% 100% 8.00% 730% 7.00% 6.50% Outperform 10.00% 10.00% 10.00% 1000% 10.00% 10.00% 10.00% 930% 9.00% 830% Opt probe 11.00% 12.00% 12.00% 12.00% 12.00% 12.00% 17-00% 1140% 11.00% 10.50% Neutral 800% 100% 100% 8.00% 800% 103% 100% 730% 7.00% 6.50% NET NEW BUSINESS UHNW Nas.Managed Assets 3 Pessimistic 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 330% 3.00% 2.50% UnderperIcan 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 5.50% 500% 4.50% Nelill31 8.00% 8.00% 8.00% 8.00% 100% 8.00% 8.00% 730% 7.00% 6.50% Outperform 1000% 10.00% 10.00% 10.00% 1000% 1000% 10.00% 9.50% 9.00% &SO% Opt erotic 12.00% 12.00% 12.00% 11.00% 12.00% 12.00% 12.00% I L SO% 11.00% 10.50% Neutral 8.00% 8.00% 8.00% 100% 100% 8.00% 8.00% 7.50% 7.00% 6.50% NET NEW BUSINESS Truu AUM 3 Pessimnik 4.00% 4.00% 4.0016 4.00% 4.00% &CO% 4.00% 3.50% 3.00% 2.50% Underperkem 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 5.50% 5.00% 4.30% Neutral 8.00% 8.00% 8.00% 8.00% 800% 8.00% 8.00% 7.50% 7.00% 6.30% Outperform 1000% 10.00% 10.00% 10.00% 10.00% 1000% 10.00% 930% 9.00% &SO% Opt imosbc 12.00% 12.00% 12.00% 12.00% 12.00% 12.02% 12.00/6 11.50% 11.00% 10.50% Neutral 8.00% 8.00% 8.00% 800% 800% 8.03% 8.00% 730% 7.00% 6.50% NET NEW BUSINESS Trust NomManaged Assets 3 Pessimistic 4.00% 4.00% 4.0016 4.00% 4.00% 4.00% 4.00/6 330% 3.00% 2.50% Underperican 6.00% 6.00% 6.00% 6.00/6 6.00% 6.00% 6.00% 5.50% 500% 4.30% Nelill31 8.00% 8.00% 8.00% 8.00% 100% 8.00% 8.00% 7.50% 7.00% 6.30% Outperform 1000% 10.00% 10.00% 10.0016 10.00% 1000% 10.00% 930% 9.00% &SO% Opt imosbc 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00/6 11.50% 11.00% 10.50% Neutral 8.00% 8.00% 8.00% 8.00% 800% 103% 8.00% 7.50% 7.00% 6.50% Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 24 OF 41 EFTA01079067 Project Vega Net New &Nines> & Total Return Afsumption> Arithmetic Projected Year Ending December 31, Avg Total 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Return NET NEW BUSINESS Subadvtioryi in2autional Assets 3 Pessimistic 800% 8.00% 8.00% 800% &Of% 8.00% 800)6 7.50% 7.00% 6.50% Underperkem 10.00% 10.00% 10.00% 10.0016 10.00% 10.00% 10.00% 9.50% 800% 8.50% Neutral 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 11.50% 11.00% 10.50% Outperform 14.00% 14.00% 14.00% 14.0016 14.00% 14.00% 14.00% 1150% 1100% 12.50% Ootirmsbc 16.00% 16.02% 16.00% 16.00% 16.00% 16.00% 16.00% 15.50% 15.00% 14.50% Neutral 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 11.50% 11.00% 10.50% CUMULATIVE NEW BUSINESS - Nikko Run.Off Ill 3 Pessimistic 44.35% 400.006 100.00% -100.00)6 -100.00% -100.02% -100.00% - 100.00% Underperkem -34.89% -74.13% -100.02% -100.00)6 -100.00% -100.02% -102.00% - 100.00% Neutral -29.89% 41.26% -7&13% -100.00)6 -100.00% -100.00% -100.00% - 100.00% Culp:glum -24.89% -40.19% 69.00% -100.00% -100.00% -100.00% -100.00% - 100.00% Optimistic 49.89% -32.11% -S&73% -7&36% -100.00% •100.00% -100.00% 100.00% Neutral -29.89% 48.26% -74.13% -100.00% -100.00% 100.00% -1CO.00)6 -100.00% NET NEW BUSINESS Partnership Assets 3 Pessimistic 4.00% 4.00% 4.00/6 4.00% 4.00% &CO% 4.00)6 3.50% 3.00% 2.50% Underpericem 6.00% 6.00% 6.00% 6.00)6 6.00% 6.00% 6.00% SSC% 5.00% 4.50% Neutral 1.00% B.00% 8.00% 800% 100% &CO% &CO% 7.50% 7.00% 6.50% Outperform 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 9.50% 9.00% &SO% Optimistic 12.00% 12.00% 12.00% 12.00% 12.00% 12.00% 1100)6 11.50% 11.00% 10.50% Neutral 1.00% 800% 8.00% 800% 800% 8.00% 8.0))6 7.50% 7.00% 6.50% Note: (1) Management prodded run- off schedule for the Nikko account acquired at year end 2012 neutral scenario reflects management's projected cumulative run- off of the Nikko assns. Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 25 OF 41 EFTA01079068 Project Vega Net New °wines> .4 Total Return A%sumption% Arithmetic Projected Year Ending December 31, Avg Total 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Return TOTAL RETURN UMW Assets 1 Pessimistic 4.00% 4.00% -4.00% -4.02% 4.00% 400% -4.00% Underperkan .2.00% .2.00% -2.00% 4.00% -200% 4.00% 4.00% -2.00% Neutral 0.00% 0.00% 0.00% 000% 0.00% 0.00% 0.00% 000% 0.00% 0.00% 040% Outperform 2.00% 2.00% 240% 2.00% 2.00% 2.00% 2.00% 200% 2.00% 2.00% 240% °Menne 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 400% 4.00% 4.00% 4.00% Neutral 0.00% 0.00% 040% 000% 0.00% 0.00% 040/6 000% 040% 0.00% 040% TOTAL RETURN Truu Assets 1 Pessimistic 4.00% 4.00% 440% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% Underperkan -2.00% .2.00% -2.00% 4.00% -2.00% Neutral 0.00% 0.00% 0.00% 000% 0.00% 0.00% 0.00% 000% 0.00% 0.00% 0.00% Outperform 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Z00% Opterotic 4.00% 4.00% 440% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 440% 4.00% Neutral 0.00% 0.00% 0.00% 000% 0.00% 0.00% 0.00% 000% 0.00% 0.00% 0.00% TOTAL RETURN Subachnsory/ instatuteinal Assets 1 Pessimistic 4.00% 4.00% 4.03% -4.02% 4.00% 400% 4.00E Underperkem -2.00% .2.00% .2.00% 4.00% -200% -2.00% Neutral 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 000% 0.00E 0.00% 0.00% Outperform 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 200% 2.00E 2.00% 2.00% Optimistic 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 400% 4.00% 4.00% 4.00% Neutral 0.00% 0.00% 0.00% 000% 0.00% 0.00% 0.00% 000% 0.00% 0.00% 040% TOTAL RETURN Partnership Assets I Pessimistic 4.00% 4.00% -4.02% 4.00% .4.00% 4.00% Underperkan -2.00% .2.00% -2.03% 4.00% -2.00% Neutral 0.00% 0.00% 0.00% 000% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Outperform 2.00% 2.00% 240% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Optimatic 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% Neutral 0.00% 0.00% 0.02% 000% 0.00% 0.00% 0.1:016 000% 0.00% 0.00% 0,0016 Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 26 OF 41 EFTA01079069 Project Vega Exhibits • Exhibit A: Market Statistics & Financial Data for Guideline U.S. Publicly Traded Investment Management Firms • Exhibit B: Selected Acquisitions of Investment Management Firms • Exhibit C: Estimated Cost of Equity Capital for Guideline U.S. Publicly Traded Investment Management Firms • Exhibit D: Estimated Cost of Equity Capital Calculator for RFS • Exhibit E: Premiums Paid in Acquisitions of Selected U.S. Publicly Traded Investment Management Firms • Exhibit F: Estimated Discount for Lack of Marketability Based on Simulation Analysis Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 27 OF 41 EFTA01079070 Exhibit A: Market Statistics & Financial Data GuideMe U.S. Publicly TradedInvestment Management Nam 0abv2 tql20‘0.2%34 twtp whve no:ni wait, Quotomo.in Stock Pace. Market Value & AUM ValuatiOnParann: YID PIE Rath:. 0) tv / terra* multnies le) Prke 52 Week P00% %ticket PUPA Markel/ Market/ Market/ 2015 2015 it Forward 2016 2016FY 2015 2016 Firm 12/31/15 High Low Charge Value (a) (SMM) AUM Revs (0) Pre•Ta (t) LTM FY Est (a) prwTax IN 4Q Est (0 FYEU (e) Pro-Ta lfl LTM FY Eel (e) FT Est (e) Eaton Vance Corp. I0 32.43 44.18 31_02 .20.816 3,760,226 311.354 1.21% 2.71x 8.4% 14.1x 13.8x 8.71 1324 12.5x 7.9% 8.3x 8.4x 7.6x Artisan Partners Asset Management Ye. (ml 36.06 49.89 33.24 38.6% 2.650,410 96.968 2.73% 3.23x 8.4x 12.9x 13.3% 814 1354 13.5x 8.9% tax 9.2% 9.0% Wa6:3418.Fteed Financial. Ine.(n) 28.66 51.80 27.07 .42.5% 2392,222 106,192 2.25% 1.56x 5.6x Elx 9.7x 62x 924 9.9% 6.3x 6.4x 6.7x 74x Janus Capital Group MC. (WI 14.09 18.98 13.12 .12.6% 2626,376 115,000 1.42% 2.56x 9.3x 15.2x 153x 9.8x 1424 13.6x 8.6x 9.5€ 8.6x 7.9x Cohen & SteamInc. (P) 30.48 46.39 2:5.42 •27.6% 2396398 49,744 2.81% 4.34x 11.4x 18.8x 17.8x 1130 162, 16.Ox 10.1x 11.04 10.3x 10.0% Venus Investment Partners. Inc. le) 11746 165.95 94.52 .31.1% 2030,712 47.938 2.15% 3.19x 7.3x 12.2x 153x 10.14 15.1x 14.1x 8.9% 6.9x 9.5x 9.0% Boston Private Financial Holdings. Inc (c) 11.34 1332 1035 •152% 945,407 27,406 3.45% 2.74x 9.1x 17.4x 150x 11.14 14.7x 14.3x 11.04 NA NA NA GAMCO Investors, Inc (al 31.04 48.13 23.32 45.1% 783,481 39375 1.98% 1.904 5.1x 8.2x 930 5.9x 10.7x 10.7x E8x 2.94 3.04 3.0% 0 I amos Asset manner:lent,Ix. In 958 13.70 8.77 •273% 757,517 22451 3.37% 3.27x 17.2x 24.2x 38.7x 14.14 2054 20.04 12.7x 21.34 20.6x 15.4x Diamond H0 Investment Group Cu) 189.00 231.85 12335 363% 638669 15)914 4.01% 4.46x 10.7x 16.6x NM NM NM NM NM 9.6x NA NA Plena kwestmewl Manasement, Inc. Iv) 8.60 12.25 716 585311 2:5.300 2.29% 4.95x 10.04 16.6x 173x 11.14 165), 17.6x 11.1% 9.6x 9.9% 9.9% Westwood HolOrgs Group, W. lw) 52.09 64.09 48.30 15.7% 418461 24375 2.05% 3.28x 9.2x 14.2x NM NM NM NM NM 9.04 NA HA Sikieruest Asset Management Group Inc (x) 11.89 16.14 10.19 .24.016 162.370 17,621 0.92% 2.21% 8.1x 14.7x 143x 92x 16.64 17.4x 11.04 8.7x 8.7x 8.6x MAXIMUM 36.9% 3,760,226 312354 4.01% 495x 17.2x 24.2x 38.7x 14.50 2054 2Ct0x 12.7x 21.3:4 20.6x 15.4x 7 ST H PERCENTILE 15.7% 2392,222 96.962 2.81% 3.28% 10.04 16.6x 16.9x 11.14 16.4x lam 11.04 9.6x 9.8x 9.7x 60TH PERCENTILE •192% 1,103,949 48399 2.38% 3.24x 9.2x 15.5x 15.5x 10.14 15.1% 14.3x 10.1% t9% 9.3x 9.0% MEDIAN .24.0% 948407 39375 2.25% 3.19% 9.1x 14.7x 15.0x 924 14.7% 14.1x 8.9x tax 8.9% 8.8% 40TH PERCENTILE 37,4% 778.200 27)325 2.13% 2.73x 8.4x 14.2x 14.5x 914 1424 13.6x 8.9% 8.6x 8.6x 8.3x 25TH PERCENTILE 38.816 638369 22,454 1.96% 2.56x 8.1x 12.8x 133x 8.7x 138€ 13.04 8.2x 8.04 8.4x 7.6x MINIMUM .65.1% 167370 15,914 0.92% 1.56x 5.1x 8.2x 9.30 5.9x 934 9.9% 6.3x 1.9% 3.04 3.0% COEFFICIENT OF VARIATION 38% 32% 33% 28% 48% 21% INTER•QUARTILE RATIO 37% 23% 22% 26% 22% 26% Propti Yip 10,443 Peownict Rank PAN FOCtnOteS appear neat the end of ihe exhibit_ Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 28 OF 41 EFTA01079071 Exhibit k Market Statistics Er Financial Data Guideline U.S. PubNcty Traded Inn-Unwept Management Firms Valuation Parameters E per,. Capeal Ratios AUM Comoomson (%) 2016 Markel / Ment % ol Revenues lei LTM Entank/ LI DeM / Est,mated 2016 Est. Fees/ Mgmt enesax Effective Common Total Feted Money Firm Revenue Revenue ROM AUM Fees Comp Arnort 03ITEM Income Tax Rate Easily Equity Equity income Market Other Eaton Vance Corp. II) 1,342,882 2.80v MI% 0.38% 863% 34.9% 0.7% 35.4% 31.716 37.7% 47.1% 156.1% 28936 16.8% OA% 54.3% Artisan Partners Asset Management K. Iml 7'96,250 3344 192.8% 0.85% 100.0% 507% 0.0% 41.9% 38.5% 17.4% 0.0% 169.1% 10/0% 0.0% 00% 0.0% WadOed 8, Reed !Merck* Inc. (n) 1,450,133 1.654 322% 0.69% 47.6% 13.0% 0.0% 29.6% 27.8% 38.4% 18.9% 22.7% 793% 18.7% 10% 0.0% Janus CaNtaIGCOUP mc. to) 1,160,771 2264 9.9% OAS% 87.2% 41.3% NA. 33.5% 27.6% 36.7% 117.7% NA 74.9% 22,5% 0.7% 1.9% Cohen 8, Steen, Inc. IP) 333,917 A.184 310% 0.64% 99.6% 33.1% 00% 38.8% MA% 39.7% 8.0% 0.0% 24.3% 0.0% 0.0% 75.7% Venus Investment PillfieS.I.IC. ig) 274,611 3.754 7.8% 0.74% 1092% 42.4% NA 45.6% 43.5% 50.0% 9.0% 1.7% 67.5% 32.5% 00% 7.7% Boston Petalerinannal Helaine,. Inc.(r) 371,415 235x 8.4% 0.30% 23.5% 46.3% 1.9% 34.9% 28505 33.7% 25.2% 76.7% 77.0% 16.0% 00% 7.0% GAMCO Investors, Inc (si NA NA 16.6% 0.90% 86.7% 43.0% NA 39.6% 37.5% 38.3% 0.9% NA 95.7% 4.3% 4.1% 0.0% Gahm°, Asset manaennenc Inc. It) 213,359 3.554 71% 0.85% 81.9% 39.3% 0.0% 15.2% 190% 6.9% 2.0% 12.2% 445% 10.0% 00% 45.5% Diamond Hel Investment Group Cu) NA NA 43.1% 0.66% 73.0% 31.0% 0.0% 46.1% 41.7% 36.8% 0.0% 00% 981% 1.9% 0.0% 0.0% Plena woodmen.: Manmernent, mc. [VI 122,843 4.764 65.7% 0.46% 99.5% 39.1% 0.0% 49.6% 49.3% 6.0% 0.0% 00% 100.0% 0.0% 0.0% 0.0% Westwood Holdtegs Group, be. IM NA NA 24.6% 0.63% 100.1% 48.0% 02% 36.4% 350% 34.1% 39.2% 0.0% 95.1% 5.0% 0.0% 0.0% Sintercrest Asset Management Group Inc (x) 79,283 2.054 21.1% 0.40% 95.1% 57.9% 2.0% 29.7% 25.3% 37.8% 68.1% NA 100.0% 0.0% 00% 0.0% MAXIMUM 1,450,133 4.764 192.8% 0.90% 109.8% 57.9% 20% 49.6% 49.3% 50.0% 117.7% 169.1% 103.0% 32,5% 4.1% 75.7% 75TH PERCENTILE 1,069,141 3.704 391% 0.74% 99.8% 46.3% 02% 41.9% 38.5% 3113% 39.2% 63.2% 931% 16.8% 0.0% 7.7% 60TH PERCENTILE 540,549 3424 312% 0.66% 960% 42,5% 03% 38.9% 37.6% 37.7% 20,2% 16.4% 952% 11.2% 0.0% 2.9% MEDIAN 352,666 3)374 24.6% 0.64% 87.2% 41.3% 00% 36.4% 35.0% 36.8% 9.0% 69% 793% 5.0% 00% 0.0% 40TH PERCENTILE 310,195 2.704 202% 0.60% 862% 39.3% 00% 35.3% 31.1% 36.1% 6.8% 1.0% 766% 3.8% 00% 0.0% 25TH PERCENTILE 228,672 2.334 92% 0.46% 829% 34.9% OA% 33.5% 272% 33.7% 0.9% 0.0% 675% 0.0% OA% 0.0% MINIMUM 79,283 1.65x 7.3% 0.30% 235% 13.0% OA% 15.2% 19.0% 6.0% 0.0% 0.0% 243% 0.0% OA% 0.0% COEFFICIENT OF VARIATION 32% 25% INTER•QUARTILE RATIO 43% 30% Prolect Yip 90,819 53% 582% 49.9% 9.2% 8.4% Peomble Rank 3% MIN 12% 89% MIN MIN ~MI Visa . Sth Year 51.6% 13.1% ~erne* Rank 93% MIN Feanes appear near the end of Ø exhIbli- Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 29 OF 41 EFTA01079072 Exhibit A: Market Statistics & Financial Data Guidane U.S. Publicly TradedInvestment Aloirogement Finns Oodaw rn Mewondi, now: why.,natalmdg, sort annum HISttelcal Gee n:l• Rat,: voiat n m Sates Performance Ratios 3•Yr Growth Rates Estimated EPS Estimates EsIlmatcct Pro•TM O4uted Operating S-Yr Rev 1•Yr Revenue Latest Current Forward Forward S Yr fps AVM / Ren/ Pre Tax / Firm AUM Revenues Income EPS leverage Volatifrty Growth SY I.TM FY (el FY le) 4Q (e) % Ch II Groash (el Eno Ernpl Empl Eaton Vance Corp. 10 165% 6.2% 112% 6.7% 1.824 9.3% S.Y% 129 219 2.36 260 135 10.4% 7.6% 293.453 1.308 415 Artisan Partners Asset Management Inc. Iml 236% 23.5% 29.9% NM 127x 8.5% 3.1% 3.17 222 2.71 2.67 2.61 150% 281.067 2.375 914 Wadded 6 Reed FinanCLU. Inc. 00 14.1% 12.9% 21.3% 23.1% 1.654 4.7% .5.6% 3.77 3.15 2.94 229 2.90 1.9% 2.6% 64.437 932 259 Janus CapitalGroup mt. MI 18% 0.3% 3.4% 1.3% NM 11.2% 13.1% 0.81 0.93 0.91 10$ 0.99 14.3% 183% 153.019 849 235 Cohen 8, Meer% Inc. IP) 2896 9.8% 12-0% 10.2% 1.224 15.8% 32% 1.65 1.62 1.71 191 1.87 11.6% 11.2% 189.141 1.223 465 Venus Investment Partners, Inc. Id) 17.9% 30.8% 118.996 3.864 10.0% .14.9% 10.87 9.63 7.37 334 7.76 13.2% 04% 116,921 737 343 Boston Private Financial Holdings. Inc. 0) 16.1% 2.4% 490% 18.0% NM 1.1% 7.6% 0.72 0.65 0.76 0.79 0.77 4.6% NA 30.519 384 109 GAMCO Investors, Inc DI 11.7% 11.4% 14.0% 16.2% 1.234 7.7% NA 4.28 339 3.33 2.69 2.90 •132% 150% 184.930 1.925 722 Calamos Asset Management, NE. (0 .101% 40.2% .22.9% 3.1% .2.244 11.9% 4.036 0.58 040 0.25 0.48 0.47 93.2% 100% 61657 639 121 Diamond HP Investment Group (u) 212% 19.7% 29.9% 25.8% 1314 9.8% NA 9.11 11_36 NA NA NA NA NA 146.729 1.337 558 Plena Swaim:Al Management, hx. (v) 27.1% 10.0% 12.6% 12.7% 1274 12.3% 4.0% 0.51 OM 0.48 0.49 0.52 2.1% la 314615 1,458 719 Westwood Holciegs Group, M. lw) 15.5% 18.0% 21296 18.1% 1.184 5.9% ILA 3.51 3.66 NA NA NA NA la 156,731 962 344 SiNercrest Asset Management Group Inc- (4) 21.0% 17.8% 4.0% NA 0.234 2.5% 7.7% 0.86 021 0.82 0.69 0.72 .16.5% Pa 181.660 759 192 MAXIMUM 27.1% 30.8% 118.9% 25.8% 3264 15.8% 13.1% 93.2% 184% 314615 2.375 914 75TH PERCENTILE 21.0% 18.0% 292% 18.0% 1.584 11.2% 6.7% 12.4% 150% 189.141 1.337 558 60TH PERCENTILE 162% 13.9% 21.396 16.2% 1.274 9.8% 39% 10.4% 120% 181314 1.240 425 MEDIAN 16.1% 11.4% 14.0% 12.7% 1.274 9.3% 0.4% 4.6% 10.6% 356731 962 344 40TH PERCENTILE 15.3% 9.9% 123% 10.2% 1.234 8.3% 3.1% 2.1% 9.5% 152.161 916 326 25TH PERCENTILE 11.2% 6.2% 11.296 4.0% 1.204 5.9% .5.0% 64% 116321 737 235 MINIMUM .10S% 40.2% .2.244 1.1% .14.9% .16.5% 04% 30.519 384 109 Proyen Vega OD% 6.9% NM 6.9% 60% 373% Penni. Rank 5% 27% MAX 30% 73% Ma Footnote appear near the end of the exhibit_ Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 30 OF 41 EFTA01079073 Exhibit A: Market Statistics & Financial Data GuideMe U.S. Publicly Traded Investment Management Films Oonns rn IMtsoM4 now: e noIA1 o140.1sfroft °mouth Inc4te Statnoenl Data BaUt, Sheet Data AUM Comoosnion I5MM) Total Pre.Tu Net Total Common fixed Money Firm Revs lb) Amon Income Income Assets Intangibles LT DeM W Equity Equity Income Market Other Total Eaton Vance Corp. 10 1.387.593 9,693 440317 271.149 2.116.471 293,394 573.811 620,231 93,013 52.373 168.968 311,354 Artisan Partners Asset Mw€ementic. (ml 819,500 315,303 206,600 1,010929 200,000 122,451 96968 96,96S Wa00ell& Reed Financial. Inc.(n) 1,536,753 427,613 263,505 1,442,729 154118 190,000 836,937 84,233 19,867 2.092 106,192 Janus capanGC0411306. M 1,026.600 NA 283,720 173,827 2,857,700 1917900 297,100 1,568900 138,600 41900 1900 3.500 185,000 Cohen 6 Stew; Inc. IP) 321,558 89 122,279 74,370 296023 19,798 245,942 12,089 . 37,655 49,744 Venus InvestrneM MIOCIS. Inc. lq) 322,658 NA 140479 87,675 826.763 43,321 539,626 32,357 15,581 3,622 47,938 Boston Mate Financial Holdings, Inc (r) 345938 4 436 97,929 54,290 7.180.528 186,684 568262 689960 21,103 4,385 1918 27,406 GAMCO Investors, Inc (II 411,898 NA 154,454 96,122 872.669 5,358 106,750 562.645 37,893 1,682 1,637 39,575 CO2MOSAS601 Manamenent, bx. II) 231,796 43,981 31,619 545,980 7,351 45,955 194,505 10,003 2,236 10,215 22,454 Diamond HD Investment Group lull 143,054 59,688 37,771 145,624 • 308,045 15,615 299 15,914 Flea 0601401001 Manaement, Inc. Ib) 114130 54222 35,268 117,750 • 14484 25,500 • 25500 Westwood HOS:Yip GrOUPA1C. be0 127,635 LIMO 44674 29,746 166,217 50957 130,137 19,380 1,020 20,375 Siktercrest Asset Manamenent Group Inc 0) 73,636 1,477 18947 11,188 101946 40,519 45560 17,621 17621 MAXIMUM 1,536,753 440,317 7,180,528 1,564603 75TH PERCENTILE 819,500 283,720 1,442,789 620231 60TH PERCENTILE 358,410 143,274 930,301 544230 MEDIAN 322,658 322,279 826,763 245912 40TH PERCENTILE 303,606 94281 495,989 181,631 2 ST H PERCENTILE 143,054 58,222 166,217 122.451 MINIMUM 73,636 13647 101,946 14484 06111M Yap 85,700 7,159 103,894 80,740 Peecenele Rank 2% MIN 13% 6064110101 appear near the end of the exhibit Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 31 OF 41 EFTA01079074 Exhibit A: Market Statistics & Financial Data Guideline O.S. Publidy TradedInvestment Monogement Firms OuDrrs ehiseeresoi thxagre44 reeepl move. nOted eNPSI Shn C•itesqg EEITCIA Other Data Investment Recent In:Skated 2015 FY WMFY Fiscal LTM AeNnory Quarter Dendend Shares owrentap Firm LTA Est Est Yr End as of hes Dividend `field Outstanding Insides instexaceal smpioyeas Eaton Vance Corp. 10 491,072 486,333 539,000 DeloIxf 31 October 31 2,196466 017 327% 115.949 42% 75.1% 1.061 Artisan Partners Asset 1112013€011111M linC.Iml 343100 329,667 336,500 December 31 September 93 819,477 0.60 6.66% 73,500 NA NA 345 Wadden & Reed !Mamba. Inc. 00 454,945 434,500 389,667 December 31 September 30 731,2605 0,46 6.42% 83,169 3.6% 87.9% 1.648 Janus Capital Group MC M 344,020 342000 371,200 December 31 September30 436103 0.09 2.56% 186.400 NA NA 1109 Cohen IL Steen, Inc. IP) 124,730 132,600 137,600 December 31 September30 320,119 0.24 3.28% 45430 563% 410% 263 Venus Investment Parties. Inc. Ig) 147,187 108033 113000 December 31 September30 354449 OAS 153% 8,775 NA NA 410 Boston Private Financial Holdings. Inc. (ril 120433 NA NA December31 September 30 81107 0.09 3.17% 83,369 NA 92.3% 898 GAMCO Investors, Inc DI 163,053 159,000 157,013 December31 Septanber 30 357015 0.07 0.90% 25,241 149% 66.7% 214 Glamor KIRI Manamenent,Me.It) 35138 36,600 48400 December31 September30 129,94 0.15 6.20% 78,262 21.1% 62.2% 363 Diamond lid Investment Group Re) 6590 NA NA December31 September30 101,405 NA NA 3,379 11.6% 57.3% 107 FICA.1'madman Manamment, ax. lid 58488 57,000 67,000 December31 September30 117,495 003 1.40% 68.036 204% 541% 81 Westwood HOItIftp Gray. MC. I0 46.475 NA NA December31 September30 127,773 047 4.38% 8,037 109% 63.1% 130 SiNererest Asset Management Group Inc (x) 21)348 21,950 22,250 December31 September30 701331 0.12 404% 13,656 24.0% MB% 97 MAXIMUM 666% 56.5% 92.3% 35TH PERCENTILE 441% 21.1% 73.4% 60TH PERCENTILE 3.73% 20.1% 67.2% MEDIAN 327% 18.9% 64.9% 40TH PERCENTILE 321% 13.1% 62.7% 25TH PERCENTILE 230% 10.9% 59.8% MINIMUM 090% 3.6% 410% F0OMOtet appear on the following page. Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 32 OF 41 EFTA01079075 Exhibit A Market Statistics 8 Financial Data Guideline U.S. PubNdy FordedInyeatment Management Firms Notes: (a) Includes pubidy traded Investment management firms with market values In excess of Site (region. (b) Revenues include net interest income_ (d) The (Wowing companies have foal years Witch do not end on December 31: Franklin Resources, Eaton Vance, Lea Mason, and Value Line. Please see the (c) Ratio based on pretax income Wore amortization of intangibles and goodwill, net of minority Interest. Previous Page for theammonite year end. (I) Multiples on current and forward fdeal year pretax Mane are based *lemmata. from Thomson First cal and median LIM effective tax rate for the industry sector. (g) Enterprise value adjusted for excess working capital. Assumesrequired worksng capital is equal to LT1A expanses multiple, by the medan workang caplet as a percent of LIM expenses. Investments In mutual funds are excluded from working capita/. (el Source: Thornton First Call. 04 Based almost recent fiscal yearend. Revenue volatility is thestandard deviation of annual changes In soul revenues. Revenues include net Merest axone. (IQ Weighted average Muted shares outstanding, as of most recent quarter. (11 Represents change from current fiscal year estimate toforward fiscal year estimate. a Includes longterm debt and emitted* debt- (lj Income adjusted to elminate aerating incomeof consolidated closed end funds, closed end fund structuring tees, nal convening interest ate adivstments, loss on extinguishment of debt and senlement of state tax audit. (m) Pre.tax Income. net +gem* and FPS are as:lusted for extinguishment of debt, net income attributable to nmoccntrolling interests.offerne related componatimi,pin and net losses on tax receivable agreements and gain on value of contmeem rips (n) Reflects adjustments tor the launch of the ivy mgh Income Omorturigy Fund. (o) Income adjusted to add back decrees associated with the early retirement of debt and net charge on mark to market. (p) Regent*, pre-tax income, net income and FPSreflect nal GAWP metrics as reported In public flings. (q) Cash net income. cash EPS and cash pretax income reflect add-back of email:may cost of restnxturing ard severance, consolidated sponsored Weastment product expenses, steel based comp/meta:nand Newflett transition related expenses. (el Income adjusted for ciscontinued operations and allocation to Danielson% securities. (sl Income adjusted to reflect the elimination of min operating items, WeludIng shareholderdesignated charitable contributkons and extinguishment of debt. (t) Net Moore, FPS and diluted shares outstanding assume moonlit./ Interests in Catamos Holdings 11Cconvened Into Class A shares_ Ululation of shares outstandog conforms to CMS's computation armada capitalization. Effectwe tax rate calculated including valuation allowance. NM Income isadjusted for deferred tax amortization on intangible assets, rninonly interest partnership investments and deferred tax valuationallowance. (u) Pre-tax, net income and EPS represent net operating Mane before Investment natums, loss applicable taxes. (V) Income adjusted to reflect pro forma results as reported In mac kings (col Reflects adjustments for Intarsgedeamortizatian and deferred taxes on goodwill. (x) Income, FPS and (BUDA adjusted to reflect pro foam results asreported In pubk ling Sources: MI Finanoal. Bloanbers Thomsen First Call, company filings. Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 33 OF 41 EFTA01079076 Exhibit A: Market Statistics & Financial Data U.S. Publicly Traded Investment Management Firms Valuation Parameters PIE Ratios Enterprise Market / Market / Market / Current FY Current FY Forward FY Forward FY Value / Firm AUM Revs Pre-Tax LTM Estimate Pre-Tax Estimate Pre-Tax EBITDA Multiples for Publicly Traded Investment Management Companies, After Applicable Premiums & Discounts: -20.6% Adjustment Factor MAXIMUM 3.19% 333x 13.7x 19.2x 30.7x 19.4x 15.9x 10.1x 16.4x 75TH PERCENTILE 2.23% 2.60x 8.Cbc 13.2x 13.4x 9.0x 13.2x 8.7x 7.8x 60TH PERCENTILE 1.89% 2.57x 7.3x 12.3x 12.3x 8.0x 11.4x 8.0x 7.0x MEDIAN 1.79% 2.54x 7.2x 11.7x 11.9x 7.8x 11.2x 7.1x 7.1x 40TH PERCENTILE 1.69% 2.17x 6.7x 11.3x 11.5x 7.3x 10.8x 7.1x 6.9x 25TH PERCENTILE 1.57% 2.03x 6.4x 10.2x 10.8x 6.9x 10.3x 6.5x 6.7x MINIMUM 0.73% 1.24x 0.0x 6.5x 7.4x 4.7x 7.9x 5.0x 2.4x Adjustment Factor. Small Firm Discount -17.0% Discount for Lack of Marketability -4.3% -20.6% Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 34 OF 41 EFTA01079077 Exhibit Selected Acquisitions of Investment Management Firms Tronsoctions Involving Wealth Management and Investment Advisory Finns (Excludes Alf Minority Stake Transactions) Aggregate Value / Monate Date Value Pre-Tax Avg. Foe Announced Seller (entity Sold) Mayer 15MM) Ault4 PAM/ Revs Pre-Tax AVM Morels Basis 11/30/2015 Courier Capital Corporation Financial iculitutions. Inc 114 982 3.424 834 12074 41.2µ 0.35% 6/17/2015 Constaatbn Wealth Adelson, LLC first Republic ant 4,294 4/28/2015 Ozark Trust b investment Conadation Simmons First National Corporation 201 1.100 3.524 1.2E% NA 053% A/21/2015 Wala Fargo & Coronary IWealth Enhancement Group LLCI LSONIC Capnal LLC 0.0 4,700 122% NA NA 2/11/2015 Samson Capital AdAson /LC flora Carnal Corporation 7,600 1/15/2015 Woodwey 64-m-stal Achisors Inc. Westwood Holing, Group. Inc 450 1,600 4.294 904 212% 473% 066% 7/16/2014 Banyan Partners. Lit Aston Private nnenoal sidrings. Inc 811 3,729 3.254 11.64 2.18% 28.0% 067% 6/30/2014 Geneva Capital Management La Henderson Group Plc 179.1 6,300 6.021C 11.6x 224% 51.7% 047% 6/4/2024 Lea Mown, Inc. Rea Mason Investmer4 CounselA Trust Co.,M) WM FinancialCoro. Ufa 4/16/2014 Creshiew Adelson /LC (launder Capital Management) VictoryCapital Holdinp 1440 1/7/2014 Cluttwell investment Partners TriStale capital fulaIxtx 56.3 7,503 2.25x 9.4x 0.75% 24.0% 0.33% 9/3/13 Bel Bar imestment Advoon LLC tree Capital Corporation 119 5.960 200% NA NA 9/3/13 Eruncul Adam S Monument Eneneer04 USA- Inc eMIkron (Made& Co Inc) Cure Capital Corporation 31 2,046 150% NA NA 7/15/13 Cursor, Oarl& Umn Financial Group Aston NII rinanom M. 16 1.167 1.69% NA NA 4/11/13 Invest', Ud. 'Alban Trust Growl Groben Impute! Bank of Commerce 210 20,300 103% NA NA 3/27/13 Genworth Fs-uncut Inc Kenworth Financial Wealth Management ard Alter el Aquiline CopalPartner% Genstar Capital 413 2U49 1.064 694 1.85% 15.4% 3.75% 2/21/13 Pat-Corp (Vatcce Capital lAdmt_ I waryCepa AchlSor0 Creststow Partners,. 246 22,000 2.204 7.14 1.12% 28.6% 0.51% 2/13/13 Argo Global Investors Inc Aberdeen Asset Manaamem PLC 113 1/513 1.264 0.98% .41.4% 0.78% 10/19/12 RiverPoIM CaNtelManagemeM, Bicknell fan* Holding Company,UC 1300 10/15/12 lhomnPartron, Inc Charles Schwab Corp. 85 2.300 3.70% NA NA 6/19/12 The Winthrop Onedatich National Patera Orrilorovnt Corporation 1400 0.41% NA NA 4/25/12 Rochdale Corporallon ale National lank 4442 4/16/12 Edelman natantiorcumnc. Lee Ecerkey Partners, LLC 268 14345 1.544 1294 1St% 11.9% /07% 3/20/12 velour. LP. AtAG Wealth Parent's 117 11.100 132% NA NA 5/11/11 CSI Capital Management Inc RatTna kit Inc. 1300 2/21/11 Hershey Trust Company (Private Wealth Management Business) Sr a Mawr Bank Corporation 1.138 MAXIMUM 22.349 4024 12-94 310% 51.7% 3.75% ]STN PERCENTILE 10,698 3.524 11.6x 2/35% 36.7% 0.74% 60TH PERCENTILE 6300 3114 1024 1.85% 28.4% 067% MEDIAN 4$71 2.824 954 1St% 28.0% 061% 40TH PERCENTILE 1,729 2.354 924 155% 25.1% 055% 2 TN PERCENTILE 1.600 2.184 %Ix 1.12% 23.8% 0.52% MINIMUM 982 2.064 574 0,41% -41.4% 033% COEFFICIENT OF VARIATION 45% 22% 46% INTER-QUARTILE RATIO 004 35% 57% Propel Vega 10,443 8.4% Pmentile Rai 74% 7% Notes: Excludes all minority mat transactions, Including airs accaisltion ot a 37% stake in RFShornSG. The discount for lack ot marletablity and discount to lack of control are applied to the majority stake transaction multiples. so by excLxIng all ininceity stake trans/arm there is no dothle rowan of discounts due to • whaton prepared on a nenmarketable minority 'least basis. Proprietary infarnation relating to tirade:esfor which (ierlohire Capital receved condeleatial data or acted es financial sensor toeither the War or the serer (denoted it toldface type) Is not shoats for transactions where transaction wartsOita was not disclosed to the pubic_ la coefficient of variation, a measure of disperpon,is uvula the standard deviation distall by the mean. Source: Berkshire CopalInvestment Management harem Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 35 OF 41 EFTA01079078 Exhibit C: Estimated Cost of Equity Capital Guideline U.S. Publicly Traded Investment Management Firms Dottan in ihousands Adjusted Beta Levered Market Debt / Equity at Target CAPM Cost Capitalization Levered Ratio Unlevered Leverage Size of Equity Firm 1.2/31/15 Beta Wd /W„ Beta (1) Ratio (2) Premium (3) Capital (0) Eaton Vance Corp. 3,760,226 1.22 0.15 1.12 1.12 1.42% 11.84% Artisan Partners Asset Management Inc. 2,650,410 1.29 0.08 1.24 1.24 1.64% 12.53% Waddell & Reed Financial, Inc. 2,392,222 1.51 0.08 1.44 1.44 1.64% 13.89% Janus Capital Group Inc. 2,626,376 1.18 0.11 1.11 1.11 1.64% 11.81% Cohen & Steers, Inc. 1,396,898 1.02 0.00 1.02 1.02 1.76% 10.88% MMus Investment Partners, Inc. 1,030,712 1.18 0.00 1.18 1.18 2.00% 12.14% Boston Pnvate Financial Holdings, Inc. 945,407 1.02 0.60 0.75 0.75 2.06% 11.23% GAMCO Investors, Inc. 783,481 1.21 0.14 1.12 1.12 2.18% 12.52% Calamos Asset Management, Inc. 757,577 1.08 0.06 1.04 1.04 2.21% 11.71% Diamond Hill Investment Group 638,669 0.97 0.00 0.97 0.97 2.36% 11.20% Pzena Investment Management, Inc. 585,111 0.92 0.00 0.92 0.92 2.43% 10.92% Westwood Holdings Group, Inc. 418,651 1.14 0.00 1.14 1.14 2.71% 12.60% MEDIAN 988,059 1.16 0.07 1.11 1.11 2.03% 11.82% Notes: iii B„=&/( le( 1 -t)(Wd /WO),where Unlevered beta 01 = Levered beta t= 40.00%= Tax rate Wd = Percentage of debt capital in the capital structure Wt = Percentage of equity capital in the capital structure, based on market value (2) h. go xl1•I 1-tjf We / Wt. ), where the targeted leverage ratio is 0.00x. See Exhibit D. (3) Extrapolated from returns in excess of CUM by decile for companies traded on NYSE/AMEX/NASDAQ (3,356 companies as of 9/30/14, 1926.2014. (4) Adjusted Capital Asset Pricing Model: I(, = R, a 6 x ERP • RP,, where R, = 2.67% = Current risk-free rate (current yield on constant maturity 20-year Treasury bond as of 12/31/15) Beta ERP = 6.35% = Equity risk premium, based on historical data (30-year average long-horizon equity risk premium, 1985-2014), net of the P/E expansion effect identified by Ibbotson and then in a study that decomposed average annual total returns on large.cap stocks between 1926 and 2000 into supply factors - inflation, real growth in earnings, income return through dividends, and expansion of P/E multiples. An updated study determined that PIE multiple expansion contributed 0.44% to annual total returns of stocks over 1926-2014. Size premium, based on historical data Sources: Bloomberg; U.S. Treasury; Morningstar, Inc., Ibbotson SBBI 0 Classic Yearbook; Morningstar, Inc., lbbotson SBBI 0 Valuation Yearbook; John Wiley & Sons, Duff & Phelps 0 Valuation Handbook; Ibbotson, Roger G. and Peng then, 'Long-Run Stock Returns: Participating in the Real Economy', Financial Analysts Journal, vol. 59, no. 1 (January/February 2003); Berkshire Capital analysis. Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 36 OF 41 EFTA01079079 Exhibit D: Estimated Cost of Equity Capital Calculator RFS Dollars in thousands Adjusted Capital Asset Pricing Model: K. = x ERP + RP, + RP. ERP Equity Risk Premium (1) 6.35% Median Industry Unlevered Beta 1.11 Targeted Wd We Ratio 0.00x Levered Beta, where ri * x(1+ ( 1 - t)(Wd / )) x 1.11 Risk-Adjusted Equity Risk Premium 7.06% R, Current Risk-Free Rate (Current Yield on Constant Maturity 20-Year Treasury Bond) 2.67% 9.73% RP, Size Premium: Estimated Valuation of Subject Firm 150,000 Estimated Size Premium (2) 5.73% Company-Specific Risk Premium (3) 0.00% Estimated Cost of Equity Capital for Subject Firm 15.46% Notes: (1) Equity risk premium, based on historical data (30-year average long-horizon equity risk premium, 19135-2014 net of the PIE expansion effect identified by Ibbotson and Chen in a study that decomposed average annual total returns on large-cap stocks between 1926 and 2000 into supply factors — inflation, real growth in earnings, income return through dividends, and expansion of PIE multiples. An updated study determined that P/E multiple expansion contributed 0.44% to annual total returns of stocks over 1926-2014. (2) Extrapolated from returns in excess of CAPM by decile for companies traded on NYSE/AMEX/NASDAQ (3,356 companies as of 9/30/14,1926-2014). (3) Assumes no material company-specific risk premium. Sources: Bloomberg; U.S. Treasury; Morningstar, Inc., Ibbotson SBBI 0 Classic Yearbook; Morningstar, Inc., Ibbotson SBBI 0 Valuation Yearbook; John Wiley & Sons, Duff & Phelps 0 Valuation Handbook; Ibbotson, Roger G. and Peng Chen, Yong-Run Stock Returns: Participating in the Real Economy', Financial Analysts Journal, vol. 59, no. 1(January/Febniary 2003); Berkshire Capital analysis. Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 37 OF 41 EFTA01079080 Exhibit D: Estimated Cost of Equity Capital Calculator Security Market Line vs. Risk 8 Return of Size-Declie Portfolios of the NYSE/AMEX/NASOAQ. 1926 - 2014 15.00% 10th Oecile [Smallest Market Cap Stocks) • 1%00% 9 Arithmetic Mean Return 7 • 56 8 • 15.00% 4 • i •• •• • 1st Deck (Largest Market Cap Stocks) SOP SOO 10.00% S.00% Risk-Free Rate 0 00% 0.00 0.20 040 0.60 0.80 1.00 1.20 1.40 1.60 LSO Seta Source: MomkIgstar, Inc., Ibbotson 588120/5 Classic Yearbook Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 38 OF 41 EFTA01079081 Exhibit E: Premiums Paid in Acquisitions of Selected U.S. Publicly Traded Investment Management Firms 1999 - Present Announcement Transaction Date seller seller Type Buyer BuyerType Price( $MM) 1-Day Premium 30-Day Premium 2/13/13 Artio Global Investors Inc IA Aberdeen Asset Management Plc IA 182 28.5% 36.8% 12/6/12 Epoch Holding Corporation IA Toronto-Dominion Bank BK 668 27.8% 28.2% 4/16/12 Edelman Financial Group Inc. PA Lee Equity Partners, LLC FIN 268 43.2% 27.7% 12/14/09 Highbury Financial Inc. MF Affiliated Managers Group, Inc. FIN 114 52.5% 54.4% 6/19/07 Nuveen Investments, Inc. MF Madison Dearborn Partners LLC PE 5,760 19.8% 20.3% 7/21/03 Neuberger Berman Inc. IA Lehman Brothers Holdings Inc. BR 2,947 0.2% 19.3% 7/10/01 Tremont Advisers Inc. IA OppenheimerFunds Inc. MF 145 -3.8% 5.6% 6/27/01 Borel Bank and Trust Company TR Boston Private Financial Holdings TR 113 21.2% 50.6% 10/25/00 Fiduciary Trust Co. International IA Franklin Resources, Inc. MF 825 74.4% 99.8% 6/19/00 United Asset Management Corp. IA Old Mutual Plc IN 1,439 21.6% 39.4% 6/16/00 Nvest L.P., Nvest Companies L.P. IA Caisse des Depots et Consignations BK 1,870 100.0% 109.2% 5/15/00 Pioneer Group, Inc. MF Unicredno Italian SpA BK 1,270 40.3% 97.7% 1/13/00 U.S. Trust Corporation TR Charles Schwab Corp. BR 2,619 63.5% 67.9% 10/31/99 Pimco Advisors Holdings LP MF Allianz AG IN 3,216 11.7% 17.7% MAXIMUM 5,760.0 100.0% 109.2% 7 5 TH PERCENTILE 2431.8 50.2% 64.5% 60TH PERCENTILE 1,405.2 38.0% 48.4% MEDIAN 1,047.5 28.2% 38.1% 40TH PERCENTILE 699.8 22.8% 29.9% 25TH PERCENTILE 203.5 20.2% 22.2% MINIMUM 113.2 -3.8% 5.6% COEFFICIENT OF VARIATION 81% 70% INTER -QUARTILE RATIO 107% 111% Source: SNL Financial Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 39 OF 41 EFTA01079082 Exhibit F: Estimated Discount for Lack of Marketability Based on Simulation Analysis Benchmoth Analysis Based on Restricted Stock Studies Marketable Minority Non-Marketable Notes Interest Minority Interest Security Publicly Traded Stock Restricted Stock Projected Annual Earnings Growth 1 17.08% 17.08% Standard Deviation of Monthly Capital Appreciation Return 2 10.15% 10.15% Indicated Dividend Yield 0.00% 0.00% Payout Ratio 0.00% 0.00% Estimated Cost of Equity Capital Ke ) 17.08% 17.08% Implied Illiquidity Risk Premium NA 11.00% Discount Rate 17.08% 28.08% Minimum Holding Period NA 1 year Block Size (% of Total Shares Outstanding) NA 1.00% Rule 144 Stock (RI, Private Stock (P) NA Maximum Rule 144 Liquidation First Year Post-Lock-Out 4.00% Maximum Annual Non-Rule 144 Liquidations 99.99% Maximum Annual Liquidations Post Lock-Out/Liquidity Event (% of Block): 3 NA 100.00% Sell Decision Trigger Percentage (Upside) 4 100.00% 100.00% Sell Decision Trigger Percentage (Downside) 4 25.00% 25.00% Simulation Count 10,000 SIMULATED DISCOUNT FOR LACK OF MARKETABILITY 5 17.9% MEDIAN DISCOUNT, FMV RESTRICTED STOCK STUDY 17.9% Notes: (1) Analysis assumes that the publicly traded stock and the private stock have identical estimated earnings growth rates. The estimated earnings growth rate for the publicly traded stock, equal to the projected annual capital appreciation, equals the estimated cost of equity capital less the indicated dividend yield. Analysis assumes constant P/E multiples and payout ratios. Time Frame Statistic Average Annual Total Return, Small-Cap Stocks 1926-2007 17.08% Standard Deviation of Monthly Total Return, Small-Cap Stocks (2) 2004-2007 10.15% Median Dividend Yield, Restricted Stock Issuers 1998-2007 0.00% Median Market Capitalization, Restricted Stock Issuers 19913-2007 $63MM 12) Based on a study of all publicly traded stocks of companies with (a) market cap between 550MM and 5500MM as of 12/31/03, (b) positive EPS, and 4)48 months of stock pnce data, 12/31/03-12/31/07 (661 companies). 131 Assumes liquidation of 100% in the month following the liquidity event. 141 Represents the percentage price increase or decrease from the purchase pnce that will trigger sale of the freely traded stock. IS) Before taxes and transaction costs. Based on simulation of monthly pnces, dividends and cash flows, where capital appreciation returns are lognormally distributed. Assumes no reinvestment upon sale of security. Sources: Morningstar, Inc. (annual total return and standard deviation data); Bloomberg (monthly stock price volatility data); FMV Restricted Stock Study (median restncted stock discount, annual dividend and market capitalization data); Berkshire Capital research Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 40 OF 41 EFTA01079083 Exhibit F: Estimated Discount for Lack of Marketability Based on Simulation Analysis Updated Analysis as of 12/31/07 Based on Representative Payout Ratios & Earnings Growth Rates for Investment Management Firms Marketable Minority Non-Marketable Notes Interest Minority Interest Security Publicly Traded Stock Private Stock Projected Annual Earnings Growth 1 10.69% 10.69% Standard Deviation of Monthly Capital Appreciation Returns 2 6.42% 6.42% Indicated Dividend Yield 3 1.29% 5.48% Implied Payout Ratio 23.4S% 80.00% Estimated Cost of Equity Capital ( Ke ) 4 11.97% 11.97% Implied Illiquidity Risk Premium 5 NA 11.00% Discount Rate 11.97% 22.97% Minimum Holding Period NA 3 yrs Liquidity Event Occurs With Equal Probability Over Next N of Years (Maximum of 7 Years) NA 7 yrs Block Size OS of Total Shares Outstanding) NA 5.00% Maximum Annual Liquidations Post Liquidity Event (% of Block): 6 NA 100.00% Sell Decision Trigger Percentage (Upside) 7 100.00% NA Sell Decision Trigger Percentage (Downside) 7 25.00% NA Simulation Count 10,000 10,000 Expected Value 8 110.56 86.74 INDICATED DISCOUNT FOR LACK OF MARKETABILITY 21.5% Notes: (1) Analysis assumes that the publicly traded stock and the private stock have identical estimated earnings growth rates. The estimated earnings growth rate for the publicly traded stock, equal to the projected annual capital appreciation, equals the estimated cost of equity capital less the indicated dividend yield. Analysis assumes constant P/E multiples and payout ratios. (2) Based on the median monthly stock price volatility, 12/31/03-12/31/07, for all publicly traded companies with (a) market cap between $50MM and $500MM as of 12/31/03, (b) positive EPS, and (c) dividend yield between 3.00% and 8.00% (57 companies). (3) In the case of the publicly traded stock, equal to the median indicated dividend yield for the guideline public companies as of 12/31/07. The implied dividend for the private stock is equal to the publicly traded stock dividend yield multiplied by the ratio of the private stock payout ratio divided by the publicly traded stock payout ratio, divided by an estimate for the discount for lack of marketability. (4) Based on the median estimated cost of equity capital for the guideline public companies as of 12/31/07. (5) The illiquidity risk premium for the non-marketable minority interest is derived in the benchmark analysis. (6) Assumes maximum liquidations in the case of private stock of 100% in the month following the buy/sell trigger. (7) Represents the percentage price increase or decrease from the purchase price that will trigger sale of the public company stock. (8) Before taxes and transaction costs. Based on simulation of monthly prices, dividends and cash tows, where capital appreciation returns are lognormally distributed. Assumes no reinvestment upon sale of security. Source: Bloomberg, Berkshire Capital research Berkshire Capital CONFIDENTIAL 1/23/2016 / PAGE 41 OF 41 EFTA01079084