StepStone 8K Entry into a Material Definitive Agreement | STEP 8 Feb 24

Exhibit 2.3

STRICTLY CONFIDENTIAL

Execution Version

TRANSACTION AGREEMENT

by and among

STEPSTONE GROUP INC.,

STEPSTONE GROUP LP,

STEPSTONE EUROPE LIMITED,

SWISS CAPITAL ALTERNATIVE INVESTMENTS AG,

SC PARTNER LP

AND

MARCEL SCHINDLER, as Initial Asset Class Head,

Dated as of February 7, 2024

TABLE OF CONTENTS


		Page

ARTICLE I THE EXCHANGE			2

1.1	The Exchange		2
1.2	Closing		3
1.3	Cash Percentage		3
1.4	Distribution Adjustments		3
1.5	True-Up		4
1.6	Acceleration Exchange		5
1.7	Adjustment for Reclassification		7
1.8	Limitations on Exchanges		7
1.9	Allocation Procedures		8

ARTICLE II CONDITIONS TO EACH CLOSING			8

2.1	Conditions to All Parties’ Obligations to Close		8
2.2	Conditions to the Seller’s Obligations		9
2.3	Conditions to SSG’s and STEP’s Obligations		10
2.4	Withholding		11

ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE SELLER			11

3.1	Organization; Good Standing; Power		11
3.2	Required Consents; Authority		11
3.3	No Conflicts		11
3.4	Title to the Exchanged Securities		12
3.5	Litigation		12
3.6	No Unlawful Payment; Compliance with Anti-Money Laundering Laws; Compliance with Sanction Laws		12
3.7	Investment Representations and Warranties		13
3.8	Acquisition for Own Account		13
3.9	Ability to Protect Its Own Interests and Bear Economic Risks		13
3.10	Accredited Investor; No Bad Actor		13
3.11	No Governmental Review		13
3.12	Access to Information		13
3.13	Advisors		14
3.14	SCP Capitalization		14

ARTICLE IV REPRESENTATIONS AND WARRANTIES OF STEP, SSG AND SSE			14

4.1	Organization; Good Standing; Power		14
4.2	Required Consents; Authority		14
4.3	No Conflicts		15
4.4	Title to Consideration Securities		15
4.5	Litigation		15
4.6	Rule 506 Matters		15
4.7	No Unlawful Payment; Compliance with Anti-Money Laundering Laws; Compliance with Sanction Laws		16

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ARTICLE V CONSENT TO GOVERNANCE CHANGES		17

5.1	Consent to Governance Updates	17

ARTICLE VI SECURITIES LAWS COMPLIANCE COVENANTS		17

6.1	Restricted Securities	17

ARTICLE VII OTHER COVENANTS OF THE PARTIES		17

7.1	Required Regulatory Approvals; Efforts.	17
7.2	Tax Matters	19
7.3	Public Announcements	19
7.4	Reasonable Best Efforts	19
7.5	Acknowledgment	19
7.6	Limits on Transfer of Class A Common Stock	19
7.7	SPD Name Change	20
7.8	SCP Participations	20

ARTICLE VIII TERMINATION		21

8.1	Termination	21
8.2	Procedure and Effect of Termination.	21

ARTICLE IX MISCELLANEOUS		21

9.1	Further Assurances	21
9.2	Notices	21
9.3	Annexes, Exhibits and Schedules	23
9.4	Amendment, Modification and Waiver	23
9.5	Entire Agreement	23
9.6	Severability	23
9.7	Binding Effect; Assignment	23
9.8	No Third-Party Beneficiaries	24
9.9	Fees and Expenses	24
9.10	Counterparts	24
9.11	Interpretation	24
9.12	Enforcement of Agreement	25
9.13	Forum; Service of Process	25
9.14	Governing Law	25
9.15	WAIVER OF JURY TRIAL	25
9.16	Asset Class Head.	26
9.17	SCP Partner Majority	27

ARTICLE X DEFINITIONS		27

Annexes:

Annex A – Calculation of Exchange Value

Annex B – Required Regulatory Approvals

Annex C – Termination Acceleration Exchange

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Schedules:

Schedule A – Annual Exchange Schedule

Schedule B – SPD Swap Schedule

Exhibits:

Exhibit A – Form of Registration Rights Agreement

Exhibit B – SCP Capitalization Table

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TRANSACTION AGREEMENT

This TRANSACTION AGREEMENT (this “Agreement”), dated as of February 7, 2024, is by and among StepStone Group Inc., a Delaware corporation (“STEP”), StepStone Group LP, a Delaware limited partnership (“SSG”), Stepstone Europe Limited, a private limited liability company incorporated in England (“SSE” and together with STEP and SSG, “StepStone”), Marcel Schindler, solely in his capacity as the representative of the Seller under this Agreement, Swiss Capital Alternative Investments AG, a private company limited by shares incorporated in the canton of Zurich (“SPD”), SC Partner LP, a Cayman Islands exempted limited partnership, acting by its general partner SC General Partner Limited (the “Seller” and together with STEP, SSG, SSE, the Asset Class Head, each a “Party” and collectively, the “Parties”).

RECITALS

WHEREAS, to support the ongoing operational integration of business practices and to enhance client and staff experiences at StepStone and SPD, the Parties desire to enter into this Transaction Agreement to facilitate the medium to long-term economic integration of the Parties;

WHEREAS, in furtherance of the purposes in the foregoing recital, the Parties intend for the Seller to exchange, in a series of transactions, the Seller’s equity interests in SPD for equity interests in STEP (or cash in lieu of a portion thereof) (collectively, the “Transactions”, and each such exchange, an “Exchange”);

WHEREAS, substantially concurrently with the execution and delivery of this Agreement, StepStone has separately entered into (i) a transaction agreement (the “SIRA Transaction Agreement”) with StepStone Group Real Assets LP, a Delaware limited partnership (“SIRA”), certain equityholders of SIRA parties thereto and the seller representative of SIRA (the “SIRA Asset Class Head”), and (ii) a transaction agreement (the “SRE Transaction Agreement”) with StepStone Group Real Estate LP, a Delaware limited partnership (“SRE”), certain equityholders of SRE parties thereto and the seller representative of SRE (the “SRE Asset Class Head”);

WHEREAS, subject to the terms and conditions in this Agreement, including with respect to any Acceleration Exchange, Termination Acceleration Exchange and Change of Control Exchange (each as defined below), the Parties intend to consummate ten (10) annual Exchanges, with the first Exchange to be conducted with a reference date of April 1, 2024 (the “Initial Reference Date”) and to be consummated promptly following the Initial Reference Date upon the satisfaction or waiver of the conditions set forth in this Agreement applicable to such Exchange, and the nine (9) subsequent Exchanges to be conducted with a reference date of each of the nine (9) following anniversaries of the Initial Reference Date (such dates, together with the Initial Reference Date, each, a “Reference Date”) and to be consummated promptly following each applicable Reference Date upon the satisfaction or waiver of the conditions set forth in this Agreement applicable to such Exchanges;

WHEREAS, the Parties intend that, at the consummation of the tenth (10^th) Exchange or the Acceleration Exchange (as defined below), SSG (or its nominee) will own all of the outstanding equity interests of SPD; and

NOW, THEREFORE, in consideration of the foregoing and the mutual representations, warranties, covenants and agreements set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the Parties hereby agree as follows:

ARTICLE I

THE EXCHANGE

1.1 The Exchange.

(a) Upon the terms and subject to the conditions of this Agreement, at each Closing (as defined below), the Seller shall sell, convey, assign, transfer and deliver to SSG (or to its nominee), and SSG (or its nominee) shall purchase, acquire and accept from the Seller, all of the Seller’s right, title and interest in and to such amount of Equity Securities of SPD set forth in Schedule A attached hereto (the “Annual Exchange Schedule”) for the Reference Date of the relevant Exchange. For purposes of this Agreement, any Equity Securities of SPD exchanged pursuant to this Agreement may be referred to as the “Exchanged Securities”. The Exchanged Securities that are the subject of any Exchange shall correspond to the SCP Participations allocated among the SCP Partners in accordance with Section 1.9.

(b) In exchange therefor, at each Closing (except with respect to an Acceleration Exchange, which shall be governed by Section 1.6), SSG shall convey to the Seller the Adjusted Exchange Value by (i) pursuant to Section 1.3, delivering to the Seller an amount in cash equal to (x) the Reduced Exchange Value multiplied by the Cash Percentage for such Exchange, plus (y) the Fractional Equity Payment, and (ii) causing STEP to issue to the Seller the number of whole shares of STEP Class A Common Stock (rounded down to the nearest whole share of STEP Class A Common Stock) (the “Consideration Securities”) equal to (x) (A) the Adjusted Exchange Value less (B) the cash amount delivered pursuant to the foregoing clause (i)(x), divided by (y) the STEP 30-Day VWAP. Additionally, at the Closing of the Fifth Exchange (or, if applicable, an Acceleration Exchange), SSG shall make payment in cash to the Seller of the liquidation preference compensation amount in respect of the Exchanged Securities in such Exchange which are Preferred Shares CHF 100 (as set forth in Schedule A attached hereto), which shall be in an aggregate amount equal to CHF 4,860,863.50.

(c) In lieu of the issuance of any fractional share of STEP Class A Common Stock, if the Seller would otherwise have been entitled to a fractional share of STEP Class A Common Stock pursuant to the terms of this Agreement, then the Seller shall be paid cash, without interest (the “Fractional Equity Payment”), in an amount equal to (i) the fractional share of STEP Class A Common Stock to which the Seller would otherwise be entitled under Article I of this Agreement multiplied by (ii) the STEP 30-Day VWAP, and rounded to the nearest cent.

(d) Upon the terms and subject to the conditions of this Agreement, immediately prior to the Closing of the First Exchange, the Seller shall sell, convey, assign, transfer and deliver to SSG (or its nominee), and SSG (or its nominee) shall purchase, acquire and accept from the Seller, all of the Seller’s right, title and interest in and to such amount of Equity Securities of SPD as is set forth in the first column of Schedule B attached hereto (the

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“SPD Swap Schedule”) in consideration for (i) the sale, conveyance, assignment, transfer and delivery by SSG (or an Affiliate of SSG) to the Seller of all of SSG’s (or SSG’s Affiliate, as applicable) right, title and interest in and to such amount of Equity Securities of SPD set forth in the second column of the SPD Swap Schedule and (ii) the payment in cash by SSG to the Seller of the liquidation preference compensation amount set out in the third column of the SPD Swap Schedule.

1.2 Closing.

(a) The closing of any Exchange (each a “Closing”) shall take place remotely via electronic exchange of documents and signatures, as promptly as practicable following, but in no event later than, the third (3^rd) Business Day after the satisfaction or waiver of each of the conditions set forth in Article II of this Agreement applicable to such Closing (other than, but subject to satisfaction of, the conditions to be satisfied on the applicable Closing Date); provided, however, in no event shall a Closing take place prior to the first (1^st) Business Day after the latest of (i) the last day of the determination period for the STEP 30-Day VWAP for such Exchange, (ii) the date on which STEP issues its audited financial statements for its latest fiscal year ending prior to the Closing (the “STEP Audited Financials”), and (iii) the date on which the Adjustment Statement is delivered in respect of the preceding Exchange. For purposes of this Agreement, the date of the Closing with respect to an Exchange may be referred to as the “Closing Date” of such Exchange, and the effective time of the Closing with respect to an Exchange may be referred as the “Effective Time” of such Exchange.

(b) The failure to consummate an Exchange on the date and time determined pursuant to Section 1.2(a) shall not result in the termination of this Agreement or relieve any Party of any of its obligations under this Agreement.

1.3 Cash Percentage. The Cash Percentage for each Exchange shall be twenty percent (20%). Subject to restrictions under applicable Law, any governance documents of STEP and SSG, and any credit agreement, loan agreement, note, indenture or other financing agreements under which STEP or SSG is bound, and subject to the receipt of any applicable stockholder or regulatory approval, SSG, at its sole discretion, shall use commercially reasonable efforts to deliver, or cause to be delivered, at Closing the cash portion of the Exchange Value (or, for each Exchange other than the first Exchange, the Reduced Exchange Value) that corresponds to the Cash Percentage; provided, that, to the extent SSG does not deliver, or cause to be delivered, all or a portion of such cash consideration, the cash portion of the Exchange Value for the relevant Exchange to be delivered pursuant to Section 1.1(b)(i)(x) shall be ratably reduced and, consequently, the number of Consideration Securities to be delivered pursuant to Section 1.1(b)(ii) shall be ratably increased.

1.4 Distribution Adjustments. It is intended that (a) any distributions made by SPD in respect of the Exchanged Securities with respect to any period (i) ending prior to the Reference Date for an Exchange will inure to the benefit of the Seller and (ii) commencing on or after the applicable Reference Date for an Exchange will inure to the benefit of SSG (or its nominee); and that (b) the Consideration Securities issued in such Exchange shall entitle the Seller to receive a cash payment in an amount equal in value to any distributions made by STEP in respect of such Consideration Securities with respect to any period commencing on or after the applicable Reference Date. Consistent with the foregoing, it is intended that any

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distributions made in respect of the other Equity Securities that are transferred by (A) the Seller to SSG (or its nominee) pursuant to Section 1.1(d) with respect to any period (i) ending prior to the Reference Date for the First Exchange will inure to the benefit of the Seller and (ii) commencing on or after the applicable Reference Date for the First Exchange will inure to the benefit of SSG (or its nominee, as applicable) and (B) SSG (or its nominee) to the Seller pursuant to Section 1.1(d) with respect to any period (i) ending prior to the Reference Date for the First Exchange will inure to the benefit of SSG (or its nominee, as applicable) and (ii) commencing on or after the applicable Reference Date for the First Exchange will inure to the benefit of the Seller. In the event any such distributions are paid or made to a Person in a manner inconsistent with such intent, then the Parties shall make appropriate adjustments to the consideration delivered in such Exchange or in the subsequent Exchanges.

1.5 True-Up.

(a) Adjustment Statement. As soon as practicable, but in no event later than ten (10) days after each issuance of the STEP Audited Financials, SSG shall deliver to the Asset Class Head a statement (an “Adjustment Statement”) setting forth SSG’s re-calculation of the Exchange Value of the last Exchange by applying the Applicable SPD Multiple as of the preceding Reference Date to the actual Adjusted Net Income of SPD (rather than the SPD Budget ANI) used to prepare the STEP Audited Financials (such recalculated amount, the “Final Exchange Value”). An “Upward Adjustment Amount” shall exist to the extent (if any) of the positive difference between (w) the Final Exchange Value and (x) the Exchange Value originally calculated and used for such Exchange (the “Original Exchange Value”); and a “Downward Adjustment Amount” shall exist to the extent (if any) of the positive difference between (y) the Original Exchange Value and (z) the Final Exchange Value.

(b) Upward Adjustment. If an Upward Adjustment Amount exists, then STEP shall, at the Closing of the current year’s Exchange, (x) issue an additional amount of Consideration Securities (rounded down to the nearest whole Consideration Security) to the Seller equal to (A) the Upward Adjustment Amount divided by (B) the STEP 30-Day VWAP and (y) pay or cause to be paid to the Seller an amount of cash equal to the applicable Fractional Equity Payment. For the avoidance of doubt, any reference to Upward Adjustment Amount in this paragraph shall be a reference to the Upward Adjustment Amount with respect to the preceding Exchange.

(c) Downward Adjustment. If a Downward Adjustment Amount exists, then in the current year Exchange (x) the Reduced Exchange Value shall be decreased by the Downward Adjustment Amount and (y) the Adjusted Exchange Value shall equal the Reduced Exchange Value as adjusted pursuant to clause (x). To the extent the Reduced Exchange Value would fall below zero as a result of an adjustment pursuant to this Section 1.5(c), then, at SSG’s option, (i) the Seller shall promptly (and in any event within thirty (30) days) pay SSG an amount in cash equal to the remaining Downward Adjustment Amount or (ii) the remaining Downward Adjustment Amount shall be carried forward to the next succeeding future Exchange(s). To the extent any remaining balance of the applicable portion of any Downward Adjustment Amount exists immediately after the Closing of the final Exchange, the Seller shall promptly (and in any event within thirty (30) days) pay SSG or its designee an amount in cash equal to such remaining

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balance. The Seller acknowledges and agrees that, in the event that the Seller does not timely pay SSG any cash amount payable by the Seller to SSG pursuant to this Section 1.5(c), SSG shall have the right to set off such cash amount against any dividends, distributions or other income allocations from SSG or its Affiliates to the Seller or its Affiliates and against any other amounts (including, to the extent permitted by applicable Law, employment compensation and expense reimbursements) otherwise payable by SSG or its Affiliates to the Seller or its Affiliates. For the avoidance of doubt, any reference to Downward Adjustment Amount in this paragraph shall be a reference to the Downward Adjustment Amount with respect to the preceding Exchange.

1.6 Acceleration Exchange.

(a) Acceleration Exchange. At any point following the Exchange with respect to the April 1, 2028 Reference Date, SSG and the Seller, acting with an SCP Partner Majority, may, by mutual agreement, elect to accelerate the remaining annual Exchanges in one final Exchange as of the Reference Date immediately following such election. If such election is so made, then the Seller shall sell and surrender all Equity Securities of SPD held by the Seller in such final Exchange. For purposes of this Agreement, such final Exchange may be referred to as the “Acceleration Exchange”.

(b) Holdback. At the Closing of the Acceleration Exchange, Consideration Securities representing fifty percent (50%) of the Reduced Exchange Value (the “Holdback”) shall not be issued by STEP but shall instead be held back to facilitate a true-up following the issuance of the STEP Audited Financials for the Final Projection Year. For the avoidance of doubt, the Holdback shall not include any cash consideration included in the Reduced Exchange Value. SSG shall pay to the Seller an amount equal to all dividends, distributions and other income with respect to fifty percent (50%) of the unissued Consideration Securities included in the Holdback (net of any withholding due under applicable law with respect to dividends, distributions and other income with respect to such Consideration Securities pursuant to Section 2.4) which payment shall be made at the same time as such dividends, distributions and other income are distributed or paid to the equityholders of STEP generally in accordance with the terms of STEP’s organizational documents; SSG shall pay to the Seller an amount equal to all dividends, distributions and other income with respect to the other fifty percent (50%) of the unissued Consideration Securities included in the Holdback (net of any withholding due under applicable law with respect to dividends, distributions and other income with respect to such Consideration Securities pursuant to Section 2.4), which payment shall be made at such time as, and to the extent, the Seller becomes entitled to such Consideration Securities.

(c) Acceleration Exchange Adjustment Statement. As soon as practicable, but in no event later than ten (10) days after the issuance of the STEP Audited Financials for the Final Projection Year, SSG shall deliver to the Asset Class Head a statement (the “Acceleration Exchange Adjustment Statement”) setting forth SSG’s re-calculation of the Exchange Value of the Acceleration Exchange by applying the Applicable SPD Multiple as of the Reference Date of the Acceleration Exchange to the Actual Acceleration SPD ANI (rather than Acceleration SPD Budget ANI) (such recalculated amount, the “Final Acceleration Exchange Value”). An “Upward Acceleration Exchange Adjustment Amount” shall exist to the extent (if any) of the positive difference between the Final Acceleration Exchange Value and the Exchange Value originally calculated and used for the Acceleration Exchange (the “Original Acceleration Exchange Value”); and a “Downward Acceleration Exchange Adjustment Amount” shall exist to the extent (if any) of the positive difference between the Original Acceleration Exchange Value and the Final Acceleration Exchange Value.

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(d) No Adjustment. If the Final Acceleration Exchange Value equals the Original Acceleration Exchange Value, SSG shall promptly (and in any event within thirty (30) days of the date of determination of the Final Acceleration Exchange Value) release the Holdback to the Seller.

(e) Upward Acceleration Exchange Adjustment. If an Upward Acceleration Exchange Adjustment Amount exists, SSG shall promptly deliver or cause STEP to deliver to the Seller (i) the Holdback, (ii) cash equal to the Fractional Equity Payment, and (iii) a number of issued Consideration Securities (rounded down to the nearest whole Consideration Security) equal to (x) the Upward Acceleration Exchange Adjustment Amount (net of any Downward Adjustment carried forward pursuant to Section 1.5(c)), divided by (y) the STEP 30-Day VWAP.

(f) Downward Acceleration Exchange Adjustment. If a Downward Acceleration Exchange Adjustment Amount exists, SSG shall (i) retain for the account of STEP or SSG from the Holdback an amount equal to the Downward Acceleration Exchange Adjustment Amount (together with all dividends, distributions and other income with respect to the relevant unissued Consideration Securities) (the Holdback after such deduction, the “Adjusted Holdback”), and (ii) following the completion of step (i), promptly release the Adjusted Holdback, if any, to the Seller net of any Downward Adjustment carried forward pursuant to Section 1.5(c).

(g) Further Adjustment. In the event the Downward Acceleration Exchange Adjustment Amount exceeds the Exchange Value of the Holdback, the Seller shall promptly (and in any event within thirty (30) days) pay SSG an amount in cash equal to (i) the Downward Acceleration Exchange Adjustment Amount less (y) the Exchange Value of the Holdback. The Seller acknowledges and agrees that, in the event that the Seller does not timely pay SSG any cash amount payable by the Seller to SSG pursuant to this Section 1.6(g), SSG shall have the right to set off such cash amount against any dividends, distributions or other income allocations from SSG, STEP or their Affiliates to the Seller, the SCP Partners or their Affiliates and against any other amounts (including, to the extent permitted by applicable Law, employment compensation and expense reimbursements) otherwise payable by SSG or its Affiliates to the Seller, the SCP Partners or their Affiliates.

(h) Termination Acceleration Exchange. With respect to any SCP Partner who is terminated (with or without cause), resigns or retires (an “Acceleration Party”), the remaining Equity Securities in SPD held by the Seller that correspond to such SCP Partner’s equity interests in the Seller (on a look through basis) shall be treated as set forth in Annex C attached hereto.

(i) Change of Control Exchange. If a Change of Control of STEP or SSG shall occur, then the Exchanges provided for herein shall continue as scheduled; provided, that:

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(i) the STEP Multiple for all Exchanges occurring on or after the date of the Change of Control shall be the lower of (x) 40 and (y) the STEP Multiple implied by the fair value (as determined in good faith by the Board of Directors of STEP (the “STEP Board”)) of the consideration paid in such Change of Control for each share of STEP Class A Common Stock or unit of SSG, as applicable; provided, however, that this Section 1.6(i)(i) shall be subject to Section 1.8, and the provisions relating to Skipped Exchanges shall apply, if the applicable STEP Multiple as determined in accordance with the foregoing is below 16; and

(ii) for the purposes of subsequent calculations of the Exchange Value, the Exchange Value shall be calculated based on the fair value (as determined in good faith by the STEP Board) of the consideration paid in such Change of Control for each share of STEP Class A Common Stock or unit of SSG, as applicable; and

(iii) the Exchange Value to be delivered to the Seller for Exchanges occurring on or after the effective date of the Change of Control shall be payable in the kind of securities, cash or other property paid in such Change of Control to other equityholders of STEP or SSG (such securities, cash or other property, the “Reference Property” and the amount and kind of Reference Property that a holder of one Consideration Security would be entitled to receive, a “Reference Property Security”); provided, that, (x) if the Reference Property consists of more than a single type of consideration to be determined based in part upon any form of equityholder election, then the composition of the Reference Property Security shall be deemed to be the weighted average of the types and amounts actually received by the other equityholders of STEP or SSG in the Change of Control transaction, and (y) if the Reference Property consists of equity securities that are not Publicly Traded Securities, STEP and SSG shall use commercially reasonable efforts, acting in good faith, to structure the Change of Control transaction to avoid a disproportionate and materially adverse effect on the Seller relative to the other equityholders of STEP or SSG party to such Change of Control transaction.

1.7 Adjustment for Reclassification. If the number of outstanding Equity Securities of STEP or SPD has been changed into a different number of units or shares (as applicable) or a different class, including by reason of any reclassification, unit split (including a reverse unit split) or stock split (as applicable), recapitalization, split-up, combination, exchange of units or shares, readjustment or other similar transaction, or if a dividend or distribution thereon is declared, the relevant provisions of this Agreement shall be equitably adjusted to reflect such change so as to provide STEP, SSG and the Seller the same economic effect as contemplated by this Agreement prior to such event; provided, that nothing in this Section 1.7 shall be deemed to permit or authorize SPD to effect any such change that it is not authorized or permitted to undertake.

1.8 Limitations on Exchanges.

(a) Notwithstanding the other provisions of this Article I, the Seller shall not be obligated to effect any Exchange if the STEP Multiple with respect to such Exchange is below 16 (such Exchange, a “Skipped Exchange”).

(b) Notwithstanding the provisions of this Article I, neither STEP nor SSG shall be obligated to effect any Exchange if, after giving effect to such Exchange, STEP and/or SSG would have issued, pursuant to the terms of this Agreement and/or the Other Transaction Agreements, more than an aggregate of 75 million Consideration Securities and/or Consideration Units (as such term is defined in each Other Transaction Agreement) (the “Aggregate Equity Limit”). To the extent an Exchange would otherwise result in the issuance of Consideration Securities in excess of the Aggregate

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Equity Limit, STEP or SSG may, at its option and in its sole discretion, (i) increase the Cash Percentage for such Exchange so as to complete such Exchange without exceeding the Aggregate Equity Limit, or (ii) increase the Aggregate Equity Limit; provided that, upon the request of the Asset Class Head, STEP and/or SSG shall consider in good faith using its commercially reasonable efforts to effectuate the foregoing clause (ii) (and failing that, the foregoing clause (i)).

(c) For the avoidance of doubt, no Closing shall occur with respect to a Skipped Exchange, and the Seller shall not be required to sell, convey or deliver Equity Securities of SPD in connection with such Skipped Exchange.

(d) In the event of a Skipped Exchange, the Exchanged Securities that would otherwise have been subject to such Exchange (i) shall be subject to the next annual Exchange for which the STEP Multiple is equal to or greater than 16 or the Aggregate Equity Limit has not been exceeded, as applicable, (ii) the Exchange Value for such Exchanged Securities shall be calculated using the actual Adjusted Net Income of SPD (rather than SPD Budget ANI) for the fiscal year that was the subject of the Skipped Exchange and (iii) no true-up pursuant to Section 1.5 shall be made with respect to such Exchanged Securities.

1.9 Allocation Procedures. With respect to each Exchange, the Asset Class Head shall deliver to SSG an allocation notice (“Allocation Notice”), which shall set forth the proposed allocation of the Exchanged Securities set forth on the Annual Exchange Schedule opposite the applicable Reference Date of such Exchange among the SCP Participations of each SCP Partner, including the pro forma ownership of SCP Participations (and indirectly of Consideration Securities) by the SCP Partners as a result of such Exchange. The Allocation Notice will be delivered (i) with respect to the first Closing, within ten (10) days of the date of this Agreement, and (ii) with respect to any other Closing, no later than February 1^st of the corresponding year for the applicable Reference Date. SSG’s approval of the allocation proposed in any Allocation Notice shall be required only if such allocation does not conform to the programme set out in Schedule C attached hereto, and such approval by SSG shall not be unreasonably withheld; provided that, if SSG does not agree to such proposed allocation, then the SCP Participations subject to the relevant Exchange shall be reallocated to conform to such programme. The Asset Class Head shall promptly and in any event (x) with respect to the first Closing, within twenty (20) days of the date of this Agreement, and (y) with respect to any other Closing, prior to the applicable Reference Date, deliver an exchange notice (an “Exchange Notice”) to each SCP Partner, which shall set forth the amount of Exchanged Securities attributable to the SCP Participations of such SCP Partner in such Exchange. With respect to each Exchange, the Seller shall, reasonably promptly following the applicable Closing, distribute the applicable Consideration Securities and cash amounts to the applicable SCP Partners in accordance with the applicable allocation in redemption of the SCP Participations to which such Exchange is attributable (each such distribution, an “SCP Distribution”), and the Seller shall cause such changes in the SCP Participations as are appropriate to reflect the result of the Exchange and resulting SCP Distribution.

ARTICLE II

CONDITIONS TO EACH CLOSING

2.1 Conditions to All Parties’ Obligations to Close. The obligations of SSG and STEP, on the one hand, and of the Seller, on the other hand, to complete any Closing contemplated by this Agreement are subject to the fulfillment at or prior to such Closing of each of the following conditions (any or all of which may be waived in whole or in part by SSG with respect to SSG and STEP, or by the Seller as applicable):

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(a) Required Regulatory Approvals. The authorizations, consents, orders or approvals of, or declarations or filings with, and the expirations or terminations of waiting periods required from, any Governmental Authorities set forth in Annex B attached hereto, with respect to this Agreement, the Transactions, and the relevant Exchange (all such permits, approvals, filings and consents and the expiration or termination of all such waiting periods being referred to as the “Required Regulatory Approvals”), and all such Required Regulatory Approvals shall be in full force and effect.

(b) Stockholders Approval. The STEP Stockholder Approval shall have been obtained and shall be in full force and effect.

(d) No Injunctions or Restraints. No applicable Law or injunction enacted, entered, promulgated, enforced or issued by any Governmental Authority or other legal restraint or prohibition preventing the consummation of the Transactions or the relevant Closing shall be in effect.

(e) SPD Shareholders’ Agreement. The SPD Shareholders’ Agreement shall have been duly executed and delivered by all parties thereto and shall be in full force and effect in accordance with its terms.

2.2 Conditions to the Seller’s Obligations. The obligations of the Seller to complete each Closing contemplated by this Agreement are subject to the fulfillment at or prior to such Closing of each of the following conditions (any or all of which may be waived in whole or in part by the Asset Class Head):

(a) Representations and Warranties. The representations and warranties regarding SSG and STEP in Section 4.4 shall be true and correct in all material respects on and as of the date hereof and on and as of each applicable Effective Time as though such representations and warranties were made on and as of such Effective Time, or in the case of representations and warranties that are made as of a specified date, such representations and warranties shall be true and correct as of such specified date, and the other representations and warranties regarding SSG and STEP in Article IV of this Agreement shall be true and correct in all respects on and as of the date hereof and on and as of each applicable Effective Time as though such representations and warranties were made on and as of such Effective Time, or in the case of representations and warranties that are made as of a specified date, such representations and warranties shall be true and correct as of such specified date, except, in each case, where the failure of such representations and warranties to be true and correct has not, or would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on SSG’s and STEP’s ability to consummate the Transactions.

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(b) Registration Rights Agreement. The Registration Rights Agreement duly executed by STEP and the parties necessary for such agreement (as contemplated to be amended pursuant to this Agreement) to be effective (except for the Seller) shall have been delivered to the Seller; provided, that, no such agreement needs to be delivered if STEP has already delivered such agreement at a prior Closing and such agreement remains in full force and effect;

(c) SSG and STEP shall have delivered a certificate to the Seller to the effect set forth in Section 2.2(a), signed by a duly authorized officer of each of SSG and STEP.

2.3 Conditions to SSG’s and STEP’s Obligations. The obligations of SSG and STEP to complete each Closing contemplated by this Agreement are subject to the fulfillment at or prior to such Closing of each of the following conditions (any or all of which may be waived in whole or in part by SSG and STEP):

(a) Representations and Warranties. The representations and warranties regarding the Seller in Article III of this Agreement shall be true and correct in all respects on and as of the date hereof and on and as of each applicable Effective Time as though such representations and warranties were made on and as of such Effective Time, or in the case of representations and warranties that are made as of a specified date, such representations and warranties shall be true and correct as of such specified date.

(b) Deliverables. The Seller shall have delivered to SSG and STEP each of the following documents:

(i) a transfer instrument (a “Transfer Instrument”) in a form to be agreed between SSG and the Asset Class Head, setting forth the number of Exchanged Securities in SPD to be exchanged pursuant to Section 1.1(a), duly executed by or on behalf of the Seller;

(ii) only in respect of the First Exchange, a Transfer Instrument in a form to be agreed between SSG and the Asset Class Head, setting forth the number of Equity Securities in SPD to be transferred pursuant to Section 1.1(d)(i), duly executed by or on behalf of the Seller;

(iii) in respect of Closing of the First Exchange only, the Acknowledgement in a form reasonably satisfactory to SSG, duly executed by or on behalf of the Seller and each SCP Partner;

(iv) the amended and restated SCP LPA duly executed by or on behalf of the Seller;

(v) a Registration Rights Agreement duly executed by or on behalf of the Seller; provided, that, no such agreement needs to be delivered if the Seller has already delivered such agreement at a prior Closing and such documentation remains in full force and effect;

(vi) in respect of the Closing of the First Exchange only, an amendment to the Waterfall Allocation Agreement, serving primarily to fix the applicable percentage therein to 25%, in a form satisfactory to SSG, duly executed by the Seller; and

(vii) a properly executed applicable IRS Form W-8 from the Seller.

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(c) The Seller shall have delivered a certificate to SSG and STEP to the effect set forth in Section 2.3(a), duly signed by or on behalf of the Seller.

2.4 Withholding. Each of SSG and STEP shall be entitled to deduct and withhold from any consideration otherwise payable to any Person pursuant to this Agreement or pursuant to any Person’s ownership of equity of SSG, STEP or their Affiliates such amounts as it is required to deduct and withhold with respect to the making of such payment under the Code or any provision of state, local or foreign Tax Law, as determined by SSG or STEP in its reasonable discretion. SSG or STEP shall use commercially reasonable efforts to cooperate with the Seller to reduce or eliminate any such withholding requirement with respect to amounts payable to the Seller or its equityholders. To the extent that such amounts are so withheld or paid over to or deposited with the relevant Governmental Authority by or on behalf of SSG or STEP, such withheld amounts shall be treated for all purposes of this Agreement as having been paid to the applicable Person in respect to which such deduction and withholding was made.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE SELLER

The Seller hereby represents and warrants to SSG as follows:

3.1 Organization; Good Standing; Power. The Seller has been duly organized and is validly existing and in good standing under the laws of its jurisdiction of organization. The Seller has all requisite power and authority to enter into this Agreement and any other documents to be entered into by the Seller (as applicable) in connection with the Transactions and to consummate the transactions contemplated hereby and thereby.

3.2 Required Consents; Authority. All consents, approvals, authorizations and orders necessary for the execution and delivery by the Seller of this Agreement, and for the sale and delivery of the Exchanged Securities to be sold by the Seller hereunder, and the Seller has full right, power and authority to enter into this Agreement and to sell, assign, transfer and deliver the Exchanged Securities to be sold by the Seller hereunder; this Agreement has been duly authorized, executed and delivered by the Seller.

3.3 No Conflicts. The execution, delivery and performance by the Seller of this Agreement, the sale of the Exchanged Securities to be sold by the Seller and the consummation by the Seller of the transactions contemplated herein or therein will not (i) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, result in the termination, modification or acceleration of, or result in the creation or imposition of any lien, charge or encumbrance upon any property, right or asset of the Seller pursuant to, any material indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which the Seller is a party or by which the Seller is bound or to which any of the property, right or asset of the Seller is subject, (ii) result in any violation of the provisions of the charter or by-laws or similar organizational documents of the Seller, or (iii) result in the violation of any law or statute or any judgment, order, rule or regulation of any court or arbitrator or governmental or regulatory agency.

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3.4 Title to the Exchanged Securities. The Seller has good and valid title to the Exchanged Securities and the Equity Securities to be sold by the Seller under Section 1.1(d), free and clear of all liens, encumbrances, equities or adverse claims; and, upon delivery of the Transfer Instrument in respect of such Exchanged Securities and Equity Securities and payment therefor pursuant hereto, good and valid title to such Exchanged Securities and Equity Securities, free and clear of all liens, encumbrances, equities or adverse claims, will pass to SSG or its designee.

3.5 Litigation. There are no Proceedings pending, or to the Seller’s knowledge, threatened against the Seller, at Law or in equity, by or before any Governmental Authority, or by or on behalf of any third party with respect to execution of this Agreement and the other documents in connection with the Transactions to which the Seller is a party or consummation by the Seller of the transactions contemplated hereby or thereby.

3.6 No Unlawful Payment; Compliance with Anti-Money Laundering Laws; Compliance with Sanction Laws..

(a) Neither the Seller nor any of its subsidiaries, Affiliates, directors, officers, employees, nor, to the knowledge of the Seller, any agents or other Persons associated with or acting on behalf of the Seller or any of its subsidiaries has (i) violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, or any applicable law or regulation implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, or committed an offence under the Bribery Act 2010 of the United Kingdom or any other applicable anti-bribery or anti-corruption law, or (ii) otherwise made, offered, agreed, requested or taken an act in furtherance of any unlawful bribe or unlawful benefit.

(b) The Seller has been in compliance with, and, the operations of the Seller are and have been conducted at all times in compliance with any applicable Anti-Money Laundering Laws, and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Seller with respect to the Anti-Money Laundering Laws is pending or, to the knowledge of the Seller, threatened.

(c) Neither the Seller nor, to the knowledge of the Seller, any agents or other Persons associated with or acting on behalf of the Seller is currently the subject or the target of any sanctions administered or enforced by the U.S. government (including, without limitation, the Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”) or the U.S. Department of State and including, without limitation, the designation as a “specially designated national” or “blocked person”), the United Nations Security Council (“UNSC”), the European Union, His Majesty’s Treasury (“HMT”) or other relevant sanctions authority (collectively, “Sanctions”), nor is the Seller, or any of its subsidiaries located, organized or resident in a country or territory that is the subject or target of Sanctions, including, without limitation, Crimea, Cuba, Iran, North Korea, Syria, the so-called Donetsk People’s Republic, the so-called Luhansk People’s Republic (each, a “Sanctioned Country”); and the Seller will not directly or indirectly use the proceeds of the transactions hereunder, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity (i) to fund or facilitate any activities of or business with any person that, at the time of such funding or facilitation, is the subject or target of Sanctions, (ii) to fund or facilitate any activities of or business in any Sanctioned Country or (iii) in any other manner that will result in a

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violation by any person (including any person participating in the transaction, whether as underwriter, advisor, investor or otherwise) of Sanctions. For the past five (5) years, the Seller has not knowingly engaged in, are not now knowingly engaged in any dealings or transactions with any person that at the time of the dealing or transaction is or was the subject or the target of Sanctions or with any Sanctioned Country.

3.7 Investment Representations and Warranties. The Seller understands and agrees that the offering, sale and issuance of the Consideration Securities (the “Offered Securities”) have not been and will not be registered under the Securities Act or any applicable state securities laws and such offer, sale and issuance are being made in reliance upon federal and state exemptions for transactions not involving a public offering which depend upon, among other things, the bona fide nature of the investment intent of the Seller (subject to the SCP Distributions to be effected hereunder) and the accuracy of the representations, warranties, agreements, acknowledgements and understandings in respect of the Seller as expressed in this Agreement.

3.8 Acquisition for Own Account. Subject to the SCP Distributions to be effected hereunder, the Seller is acquiring the Offered Securities for its own account for investment and not with a view toward distribution in a manner which would violate the Securities Act or any applicable state securities Laws. The Seller is not party to any agreement providing for or contemplating the distribution of any of the Offered Securities, other than this Agreement (with respect to the SCP Distributions) and the Registration Rights Agreement.

3.9 Ability to Protect Its Own Interests and Bear Economic Risks. The Seller, by reason of the business and financial experience of the Seller or its representatives, has the capacity to protect its own interests in connection with the transactions contemplated by this Agreement and is capable of evaluating the merits and risks of the investment in the Offered Securities. The Seller is able to bear the economic risk of an investment in the Offered Securities and is able to sustain a loss of all of its investment in the Offered Securities without economic hardship, if such a loss should occur.

3.10 Accredited Investor; No Bad Actor. The Seller is an “accredited investor” as that term is defined in Rule 501(a) under the Securities Act. The Seller has not taken any of the actions set forth in, and is not subject to, the disqualification provisions of Rule 506(d)(1) of the Securities Act.

3.11 No Governmental Review. The Seller understands that no U.S. federal or state agency or any U.S. or non-U.S. Governmental Authority has passed on or made any recommendation or endorsement of the Offered Securities or the fairness or suitability of the investment in the Offered Securities nor have such authorities passed upon or endorsed the merits of the offering of the Offered Securities.

3.12 Access to Information. The Seller has access to documents, records and other information about SSG and STEP, and has been given an opportunity to ask questions of, and receive answers from, the officers, employees, agents, accountants, and representatives of SSG and STEP concerning their business, operations, financial condition, assets, liabilities and other matters relevant to an investment in the Offered Securities.

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3.13 Advisors. The Seller has had the opportunity to review with its own tax, financial and legal advisors regarding the consequences of an investment in the Offered Securities, including the tax consequences thereof, and of the transactions contemplated by this Agreement. The Seller is relying solely on its own determination as to the consequences of such investment and transactions.

3.14 SCP Capitalization. The SCP Capitalization Table attached hereto as Exhibit B accurately represents the equity and debt capitalization of the Seller and the SCP Participations held by each SCP Partner as of the date of this Agreement.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF STEP, SSG AND SSE

Each of STEP, SSG and SSE represents and warrants to the Seller as follows:

4.1 Organization; Good Standing; Power. Each of STEP, SSG and SSE has been duly organized and is validly existing and in good standing under the Laws of its respective jurisdictions of organization. Each of STEP, SSG and SSE has all requisite power and authority to enter into this Agreement, the Registration Rights Agreement and any other documents to be entered into by STEP, SSG or SSE in connection with the Transactions.

4.2 Required Consents; Authority. All consents, approvals, authorizations and orders necessary for the execution and delivery by STEP, SSG and SSE of this Agreement, the Registration Rights Agreement and any other documents to be entered into by SSE, SSG and STEP in connection with the Transaction, including the delivery of the Consideration Securities and any cash consideration amount by STEP hereunder, have been obtained (except for anything set forth in Section 2.1) except where the failure, individually or in the aggregate, would not reasonably be expected to impair SSE’s, SSG’s and STEP’s ability to consummate the transactions contemplated hereby and thereby; and SSG has full right, power and authority to enter into this Agreement and the Registration Rights Agreement and to sell, assign, transfer and deliver the Consideration Securities to be exchanged by SSG hereunder. This Agreement has been duly authorized, executed and delivered by each of STEP, SSG and SSE and the Registration Agreement and the other documents to be entered into by STEP, SSG or SSE in connection with the Transactions have been duly authorized by each of STEP, SSG and SSE. At a meeting duly called and held, the STEP Board has (i) determined that this Agreement, the Registration Rights Agreement and any other documents to be entered into by STEP, SSG or SSE in connection with the Transactions are fair to and in the best interests of STEP’s stockholders, (ii) approved, adopted and declared advisable this Agreement, the Registration Rights Agreement and any other documents to be entered into by STEP, SSG or SSE in connection with the Transactions, (iii) resolved to recommend the approval of the Transactions by the stockholders of STEP (such recommendation, the “STEP Board Recommendation”) and (iv) directed that the approval of the Transactions be submitted to a vote of STEP’s stockholders, each of which resolutions has not been rescinded, modified or withdrawn as of the date of this Agreement. The affirmative vote (in person or by proxy) of the holders of a majority of STEP’s shares of common stock, voting together as a single class, that are present at a meeting where holders of a majority of the voting power of the stock outstanding and entitled to vote are present, is the only vote of the holders of any class or series of

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capital stock of STEP necessary to obtain the STEP Stockholder Approval and Nasdaq Approval. STEP has taken and will take all such steps as may be required to cause to qualify for exemption under Rule 16b-3(d) or (e), as applicable, under the Exchange Act, and be exempt for purposes of Section 16(b) under the Exchange Act, any acquisitions or dispositions of equity securities of STEP (including derivative securities with respect thereto) and any securities that may be deemed to be equity securities or derivative securities of STEP for such purposes that result from the transactions contemplated by this Agreement, by each director or officer of STEP (including directors-by-deputization) who may reasonably be expected to be subject to the reporting requirements of Section 16(a) of the Exchange Act with respect to STEP upon the registration of any class of equity security of STEP pursuant to Section 12 of the Exchange Act.

4.3 No Conflicts. The execution, delivery and performance by each of STEP, SSG and SSE of this Agreement, the Registration Rights Agreement and the other documents to be entered into by STEP, SSG or SSE in connection with the Transactions, including the sale of the Consideration Securities to be sold by SSG and the consummation by each of STEP, SSG and SSE of the transactions contemplated hereby and thereby will not (i) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, result in the termination, modification or acceleration of, or result in the creation or imposition of any lien, charge or encumbrance upon any property, right or asset of STEP, SSG or SSE pursuant to, any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which STEP, SSG or SSE is a party or by which STEP, SSG or SSE is bound or to which any of the property, right or asset of STEP, SSG or SSE is subject, (ii) result in any violation of the provisions of the charter or by-laws or similar organizational documents of STEP, SSG or SSE, or (iii) result in the violation of any Law or statute or any judgment, order, rule or regulation of any court or arbitrator or governmental or regulatory agency, except in the case of clauses (i) and (iii) as would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of STEP, SSG and their respective subsidiaries, taken as a whole.

4.4 Title to Consideration Securities. The Consideration Securities, when delivered on a Closing Date pursuant to an Exchange, shall be duly authorized and validly issued. Following the delivery of the Consideration Securities pursuant to Section 1.1(b), the Seller shall acquire good and valid title to the applicable portions of the Consideration Securities, free and clear of all liens, encumbrances, equities or adverse claims other than liens, encumbrances, equities or adverse claims to which the Consideration Securities are subject under applicable securities Laws, under the SSG LPA, the Registration Rights Agreement (as applicable), STEP’s organizational documents, SSE’s organizational documents, or any other similar governance agreements regarding such Consideration Securities, or created by the Seller.

4.5 Litigation. There are no Proceedings pending, or to SSE’s, SSG’s and STEP’s knowledge, threatened against SSE, SSG or STEP, at Law or in equity, by or before any Governmental Authority, or by or on behalf of any third party with respect to execution of this Agreement and the other documents in connection with the Transactions to which SSE, SSG or STEP is a party or consummation by SSE, SSG or STEP of the transactions contemplated hereby or thereby.

4.6 Rule 506 Matters. Each of SSE, SSG and STEP represents and warrants that none of SSE, SSG and STEP and, to the knowledge of SSE, SSG and STEP, no Person listed in the first paragraph of Rule 506(d)(1) of the Securities Act, has taken any of the actions set forth in, or is not subject to, the disqualification provisions of Rule 506(d)(1) of the Securities Act.

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4.7 No Unlawful Payment; Compliance with Anti-Money Laundering Laws; Compliance with Sanction Laws.

(a) Except as would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of STEP, SSG and their respective subsidiaries, taken as a whole, none of SSG, STEP or any of their respective subsidiaries, Affiliates (other than SPD and its subsidiaries), directors, officers, employees, nor, to the knowledge of SSE, SSG and STEP, any agents or other Persons associated with or acting on behalf of SSE, SSG or STEP has (i) violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, or any applicable Law or regulation implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, or committed an offence under the Bribery Act 2010 of the United Kingdom or any other applicable anti-bribery or anti-corruption Law, or (ii) otherwise made, offered, agreed, requested or taken an act in furtherance of any unlawful bribe or unlawful benefit.

(b) Except as would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of STEP, SSG and their respective subsidiaries, taken as a whole, each of SSE, SSG and STEP has been in compliance with, and the operations of such Person and its subsidiaries (other than SPD and its subsidiaries) are and have been conducted at all times in compliance with, any applicable Anti-Money Laundering Laws, and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving such Person or any of its subsidiaries with respect to the Anti-Money Laundering Laws is pending or, to the knowledge of such Person, threatened.

(c) Except as would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of STEP, SSG and their respective subsidiaries, taken as a whole, none of SSG, STEP and any of their respective subsidiaries, Affiliates (other than SPD and its subsidiaries), directors, officers, employees, nor, to the knowledge of SSE, SSG and STEP, any agents or other Persons associated with or acting on behalf of SSE, SSG or STEP is currently the subject or the target of any Sanctions, nor is SSG, STEP or any of their respective subsidiaries located, organized or resident in a Sanctioned Country; and neither SSE, SSG nor STEP will directly or indirectly use the proceeds of the transactions hereunder, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity (i) to fund or facilitate any activities of or business with any person that, at the time of such funding or facilitation, is the subject or target of Sanctions, (ii) to fund or facilitate any activities of or business in any Sanctioned Country or (iii) in any other manner that will result in a violation by any person (including any person participating in the transaction, whether as underwriter, advisor, investor or otherwise) of Sanctions. Except as would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the business, financial condition or results of operations of STEP, SSG and their respective subsidiaries, taken as a whole, for the past five (5) years, SSG and STEP and their respective subsidiaries (other than SPD and its subsidiaries) have not knowingly engaged in, are not now knowingly engaged in any dealings or transactions with any person that at the time of the dealing or transaction is or was the subject or the target of Sanctions or with any Sanctioned Country.

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ARTICLE V

CONSENT TO GOVERNANCE CHANGES

5.1 Consent to Governance Updates. The Seller hereby (i) gives its consent to the amendment of the governance documents of SPD and SCP (including without limitation, the SPD Shareholders’ Agreement and the SCP LPA) to reflect the governance changes agreed between SSG and the Seller concurrent with or contingent upon the Closing of the first Exchange, and (ii) agrees to do or cause to be done all such further acts and things, including giving any further consents, to effectuate and document any amendment of the governance documents of SPD and SCP (including without limitation, the SCP LPA and the SPD Shareholders’ Agreement) to reflect such governance changes.

ARTICLE VI

SECURITIES LAWS COMPLIANCE COVENANTS

6.1 Restricted Securities. The Seller understands that the Offered Securities will be characterized as “restricted securities” under the U.S. federal securities Laws inasmuch as they are being acquired pursuant to an exemption from registration under the Securities Act and, accordingly, such securities may be resold only pursuant to an exemption from registration under the Securities Act or pursuant to a registration under the Securities Act. The Seller understands that neither SSG nor STEP is under any obligation to register the Offered Securities, except as shall be provided for in the Registration Rights Agreement. It is understood that the certificates evidencing the Offered Securities may bear a private placement legend substantially in the form set forth below:

“THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT.”

ARTICLE VII

OTHER COVENANTS OF THE PARTIES

7.1 Required Regulatory Approvals; Efforts.

(a) STEP and SSG shall use their commercially reasonable efforts to obtain or cause to be obtained all Required Regulatory Approvals (including the HSR Approval) and any other licenses, permits, authorizations, consents and approvals of all third parties and Governmental Authorities necessary in connection with the consummation of the transactions contemplated by this Agreement. The Parties hereto shall coordinate and cooperate with each other in exchanging such information and assistance as any of the Parties hereto may reasonably request in connection with the foregoing. Notwithstanding anything in this Agreement to the contrary, in no event shall STEP, SSG or any of their respective Affiliates be obligated to (i)

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undertake or commit or agree to undertake, by consent decree, hold separate order or otherwise the sale, lease, license, divestiture or disposition of any asset of STEP, SSG or any of their respective Affiliates (including the Exchanged Securities after giving effect to the Transactions), or (ii) offer, accept, agree, commit to, or consent to, any material undertaking, term, condition, liability obligation, commitment or other measure.

(b) STEP shall set a record date for, duly give notice of, convene and hold a meeting of the stockholders of STEP to obtain any stockholder approval required under STEP’s governance documents or any applicable Law in favor of the adoption of this Agreement, the Transactions and the relevant Exchanges, and the issuance of the STEP Class A Common Stock contemplated hereunder (the “STEP Stockholder Approval”) as soon as practicable after the date hereof. STEP shall include the STEP Board Recommendation in the proxy statement filed with the U.S. Securities and Exchange Commission (the “SEC”) by STEP and shall solicit, and use commercially reasonable efforts to obtain from STEP’s stockholders, the STEP Stockholder Approval at such meeting. STEP shall use commercially reasonable efforts to file a preliminary proxy statement relating to the STEP Stockholder Approval with the SEC as soon as practicable following the date hereof, and as promptly as practicable after the date on which STEP learns that such proxy statement will not be reviewed or that the SEC staff has no further comments thereon, duly call, give notice of, convene and hold a meeting of its stockholders for the purpose of obtaining the STEP Stockholder Approval, file a definitive proxy statement with respect to the STEP Stockholder Approval and disseminate such proxy statement in accordance with applicable law.

(c) STEP shall use commercially reasonable efforts to obtain any required approval from the Nasdaq Stock Market with respect to this Agreement, the Transactions and the relevant Exchanges (the “Nasdaq Approval”).

(d) In fulfilling SSG’s and STEP’s obligations pursuant to this Section 7.1, the Asset Class Head and the Seller shall cooperate in good faith with SSG and STEP to (A) prepare and make or file any Required Regulatory Approvals, (B) effect all necessary filings, applications, registrations, consents and authorizations and execute all agreements and documents, (C) use reasonable best efforts to obtain the transfer or reissuance to SSG or STEP of, and participate in discussion with respect to, all necessary permits, consents, approvals and authorizations of all Governmental Authorities, (D) if necessary, execute a common interest agreement, and (E) use reasonable best efforts to obtain all necessary consents, approvals and authorizations of all third Persons, in the case of each of the foregoing clauses (A), (B), (C), (D), and (E) necessary to consummate the Transactions. Each Party hereto shall keep the other apprised in a prompt manner of the status and substance of any communications with, and inquiries or requests for additional information in connection with any Required Regulatory Filings or from any Governmental Authority in connection with the Transactions.

(e) STEP shall use commercially reasonable efforts to cause the parties other than the Seller necessary for the Registration Rights Agreement (as contemplated to be amended pursuant to this Agreement) to be effective to execute the Registration Rights Agreement before the Closing of the first Exchange.

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7.2 Tax Matters.

(a) Intended Tax Treatment. For U.S. federal income and other applicable tax purposes, the Parties shall treat (a) each Exchange as a taxable exchange under Section 1001 of the Code, and (b) any adjustments between the Reference Date and Closing Date as an adjustment to the amount realized in the Exchange, unless in each case otherwise required by applicable law, as determined by SSG or STEP in its reasonable discretion. For U.S. federal income and other applicable tax purposes, and unless otherwise determined by SSG or STEP in its reasonable discretion, STEP is treated as contributing the Consideration Securities to SSG for a like number of Class A Units of SSG, and subsequently SSG is treated as conveying the Consideration Securities to the Seller.

(b) Tax Information. The Seller agrees to furnish to StepStone such tax-related information, documentation, certifications and representations as StepStone or its agents may from time to time reasonably request to comply with any legal, regulatory and tax (including withholding tax) requirements, including FATCA, as well as any informational reporting, disclosure or other similar requirements.

7.3 Public Announcements. The Seller shall not make or issue any report, statement or press release or otherwise make any other public statement with respect to this Agreement and the Transactions without prior written approval of SSG. Each of STEP and SSG shall be entitled to make any report, press release or public statements with respect to this Agreement or the Transactions.

7.4 Reasonable Best Efforts. Subject to the terms and conditions of this Agreement, each of the Parties hereto shall (i) use its reasonable best efforts to take, or cause to be taken, all actions, and to do, or cause to be done, all things necessary, proper or advisable under applicable Laws to consummate the transactions contemplated by this Agreement and (ii) refrain from taking any actions that could reasonably be expected to impair, delay or impede the transactions contemplated by this Agreement.

7.5 Acknowledgment. The Asset Class Head and the Seller shall use such Party’s respective best efforts to obtain a fully executed Acknowledgment from each SCP Partner as promptly as possible (and in any event within thirty (30) days after the date of this Agreement).

7.6 Limits on Transfer of Class A Common Stock. Other than to effect the SCP Distributions contemplated hereby, the Seller agrees not to Transfer all or any portion of the shares of Class A Common Stock received as Consideration Securities (or beneficial interest therein), without the consent of STEP and in accordance with applicable STEP policies, except that the Seller may:

(a) after six months and until the first anniversary after the Closing Date pursuant to which the shares of Class A Common Stock are issued, Transfer up to a cumulative number of such shares of Class A Common Stock equal to (i) (x) 50% of the Adjusted Exchange Value, less (y) the cash amount delivered in such Exchange, divided by (ii) the STEP 30-Day VWAP, in each case as calculated for such Exchange;

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(b) after the first anniversary after the Closing Date pursuant to which the shares of Class A Common Stock are issued, all of such shares of Class A Common Stock may be Transferred;

(i) after six months and until the first anniversary after the Closing Date pursuant to which the shares of Class A Common Stock are issued, up to a cumulative number of one third (1/3) of such shares of Class A Common Stock may be Transferred;

(ii) after the first anniversary and until the second anniversary after the Closing Date pursuant to which the shares of Class A Common Stock are issued, up to a cumulative number of two thirds (2/3) of such shares of Class A Common Stock may be Transferred; and

(iii) after the second anniversary after the Closing Date pursuant to which the shares of Class A Common Stock are issued, all of such shares of Class A Common Stock may be Transferred;

(d) provided, that (x) the shares of Class A Common Stock delivered with respect to an Upward Adjustment Amount, Upward Acceleration Exchange Adjustment Amount or Holdback will not be subject to the limitations above and may be Transferred at any time after delivery of such shares of Class A Common Stock to the Seller; and (y) the STEP Board (or a committee to which the STEP Board has delegated such authority) may, in its sole discretion and subject to conditions, release all or a portion of such shares of Class A Common Stock from the foregoing restriction.

7.7 SPD Name Change. Each of the Seller and SPD undertakes to STEP and SSG to effect a change in name of SPD to StepStone Group Private Debt AG, or such other name as agreed by SSG in its sole discretion, and to use its best efforts to effect such change in name on or before the First Exchange.

7.8 SCP Participations. Jointly with the delivery of the corresponding Allocation Notice for every Closing after the first Closing in accordance with Section 1.9, the Seller shall deliver to SSG an updated SCP Capitalization Table, which shall accurately reflect the equity and debt capitalization of the Seller as of such date, the SCP Participations held by each SCP Partner, and noting any transfers of SCP Participations that occurred since the previous update of the SCP Capitalization Table.

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ARTICLE VIII

TERMINATION

8.1 Termination. This Agreement may be terminated and the transactions contemplated hereby may be abandoned; provided, that, in connection with any such termination by or made with agreement of SSG, SSG shall consult in good faith with the SIRA Asset Class Head and the SRE Asset Class Head prior to the effectiveness of such termination:

(a) at any time, by mutual written agreement of SSG and the Seller, with an SCP Partner Majority; and

(b) if any Closing shall not have occurred on or before the first (1^st) anniversary of the Reference Date for an Exchange (other than a Skipped Exchange) (each, an “Applicable Outside Date”), by either SSG or the Seller, with an SCP Partner Majority; provided, however, that SSG or the Seller, as the case may be, shall not be permitted to terminate this Agreement pursuant to this Section 8.1(b) if a breach or failure to perform by the Asset Class Head or the Seller (in the case of termination by the Seller with an SCP Partner Majority) or SSG (in case of termination by SSG) of any of its representations, warranties, covenants or obligations contained in this Agreement was the primary cause of, or primarily resulted in, the failure of a condition to consummate such Closing on or before the Applicable Outside Date.

8.2 Procedure and Effect of Termination.

(a) Any Party desiring to terminate this Agreement pursuant to Section 8.1 shall give written notice of such termination to the other Parties to this Agreement. Except as set forth in this Section 8.2, in the event of the termination of this Agreement and the abandonment of the transactions contemplated hereby pursuant to this Section 8.2, (i) each Party’s representations and warranties shall survive any such termination of this Agreement for two (2) years and (ii) that the foregoing termination shall not relieve the Seller of any liability, damages or losses resulting from any fraud or any willful and material breach of any of its representations, warranties, covenants or agreements set forth in this Agreement. For purposes of this Agreement, “willful and material breach” shall mean any deliberate act or failure to act, which act or failure to act constitutes in and of itself a material breach of this Agreement, regardless of whether breaching was the conscious object of the act or failure to act.

(b) In the event this Agreement is terminated pursuant to Section 8.2, all filings, applications and other submissions made by any party hereto to any Person, including any Governmental Authority, in connection with the transactions contemplated hereby shall, to the extent practicable and not legally prohibited, be withdrawn from such Person by such party.

ARTICLE IX

MISCELLANEOUS

9.1 Further Assurances. Without limiting and in addition to the other provisions of this Agreement, at the request of a Party, the other Parties shall execute and deliver to such requesting Party such documents and take such other action as such requesting Party may reasonably request in order to give effect to the transactions contemplated hereby.

9.2 Notices. All notices, requests, demands, waivers and communications required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given and received if delivered (i) by hand (including by reputable overnight courier), (ii) by mail (certified or registered mail, return receipt requested), or (iii) by E-mail (receipt of which is confirmed, followed by delivery of an original via overnight courier service) to the respective Parties at the following addresses:

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(a) if to a Seller, at the address and E-mail address set forth on such Seller’s signature page, with a copy to the Asset Class Head at the address and E-mail address set forth on the Asset Class Head’s signature page (which shall constitute notice to such Seller including for purposes of Section 9.13);

(b) if to the Asset Class Head at the address and E-mail address set forth on the Asset Class Head’s signature page;

Swiss Capital Alternative Investments AG

Klausstrasse 4, 8008

Zürich

Attention: Marcel Schindler

Email: Marcel.Schindler@stepstonegroup.com

with a copy to:

Attention: Nigel Campion-Smith

Email: Nigel.Campion-Smith@outlook.com

(d) if to STEP, SSE or SSG, to:

StepStone Group LP

4225 Executive Square, Suite 1600

La Jolla, CA 92037

Attention: Chief Legal Officer

Email: Jennifer.Ishiguro@stepstonegroup.com

with a copy to:

Gibson, Dunn & Crutcher LLP

200 Park Avenue

New York, NY 10166

Attention: Edward Sopher; Eric Scarazzo: Mark Sperotto

Email: ESopher@gibsondunn.com; EScarazzo@gibsondunn.com;

MSperotto@gibsondunn.com

or to such other Person or address as any party shall specify by notice in writing delivered pursuant to the requirement set forth in this Section 9.2 to the other Party. All such notices, requests, demands, waivers and communications shall be deemed to have been given (i) on the date on which so hand-delivered, (ii) on the fifth (5^th) Business Day following the date on which so mailed and (iii) on the date on which the E-mail is confirmed, except for a notice of change of address, which shall be effective only upon receipt thereof. For purposes of determining the date of delivery and receipt, the delivery or receipt of the copy of notices to outside legal counsel shall be irrelevant.

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9.3 Annexes, Exhibits and Schedules. Any matter, information or item in any Annexes, Exhibits and Schedules attached hereto are hereby incorporated in and made a part of this Agreement as if set forth herein.

9.4 Amendment, Modification and Waiver. This Agreement or any portion thereof, including any Annexes and Exhibits, may be amended, modified or supplemented by written agreement signed by STEP or SSG on the one hand, and by the Seller or Asset Class Head, on the other hand; provided. Any failure of the Seller or the Asset Class Head to comply with any term or provision of this Agreement may be waived by SSG or STEP, and any failure of SSG or STEP to comply with any term or provision of this Agreement may be waived by the Seller or the Asset Class Head, at any time by an instrument in writing signed by or on behalf of such other party, but such waiver shall not operate as a waiver of, or estoppel with respect to, any subsequent or other failure to comply. Further, neither the waiver by any of the Parties hereto of a breach of or a default under any of the provisions of this Agreement, nor the failure by any of the Parties, on one or more occasions, to enforce any of the provisions of this Agreement or to exercise any right or privilege hereunder, shall be construed as a waiver of any other breach or default of a similar nature, or as a waiver of any such provisions, rights or privileges hereunder. Each Party agrees that, to the extent all or a portion of this Agreement is amended, modified, supplemented or waived pursuant to the terms of this Section 9.4, such amendment, modification, supplement or waiver shall be binding on such Party, regardless of whether such Party provided consent to such amendment, modification, supplement or waiver (except if such consent is expressly required pursuant to this Section 9.4).

9.5 Entire Agreement. This Agreement, and the annexes, exhibits, schedules and other documents referred to herein which form a part hereof contain the entire understanding of the Parties hereto with respect to the subject matter hereof. This Agreement supersedes all prior agreements and understandings, oral and written, with respect to its subject matter.

9.6 Severability. Whenever possible, each provision or portion of any provision of this Agreement shall be interpreted in such manner as to be effective and valid. If any term or other provision of this Agreement for any reason is declared invalid, illegal or unenforceable, such decision shall not affect the validity or enforceability of any of the other provisions of this Agreement, which other provisions shall remain in full force and effect and the application of such invalid or unenforceable provision to Persons or circumstances other than those as to which it is held invalid, illegal or unenforceable shall be valid and be enforced to the fullest extent permitted by applicable Law.

9.7 Binding Effect; Assignment. Neither this Agreement nor any of the rights, interests or obligations under this Agreement may be assigned or delegated, in whole or in part, by operation of Law or otherwise, by any Party without the prior written consent of SSG or STEP (in the case of an assignment by the Asset Class Head or the Seller) or the Asset Class Head (in the case of an assignment by SSG or STEP), and any such assignment without such prior written consent shall be null and void; provided, however, that SSG and STEP each may assign in whole or a part of this Agreement to any Affiliate without the prior consent of any other Party to this Agreement; provided further, that no assignment shall limit the assignor’s obligations or liabilities hereunder. Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of, and be enforceable by, the Parties and their respective successors and assigns.

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9.8 No Third-Party Beneficiaries. This Agreement is for the sole benefit of the Parties to this Agreement and their permitted successors and assigns and nothing in this Agreement, express or implied, is intended to or shall confer upon any other Person or entity any legal or equitable right, benefit or remedy of any nature whatsoever, including any rights of employment for any specified period, under or by reason of this Agreement.

9.9 Fees and Expenses. Whether or not the transactions contemplated hereby are consummated pursuant hereto, the fees and expenses associated with amending the governance documents of SPD and SCP (including without limitation, the SPD Shareholders’ Agreement and the SCP LPA), and the fees and expenses associated with negotiating and consummating the transactions contemplated by this Agreement, the Other Transaction Agreements, the indicative term sheet setting forth the terms of this Agreement and the Other Transaction Agreements, structuring the transactions contemplated hereby and thereby, and amending the governance documents of each of SRE, SIRA and SPD to reflect the governance changes in connection with entering into the transactions contemplated by this Agreement and the Other Transaction Agreements, shall be pooled and shall be borne 50% by SSG, one-sixth by SPD, one-sixth by SIRA, and one-sixth by SRE. Each Party hereto shall pay all other fees and expenses incurred by it or on its behalf in connection with the consummation of the transactions contemplated hereby. For the avoidance of doubt, the amount of the fees and expenses paid or payable by any party pursuant to this Section 9.9 shall be treated as transaction expenses and not reflected in any calculation hereunder of budgeted or actual adjusted net income of any party.

9.10 Counterparts. This Agreement may be executed in two or more counterparts (delivery of which may be via email as a portable document format (.pdf)), each of which will be deemed an original, and it will not be necessary in making proof of this Agreement or the terms of this Agreement to produce or account for more than one (1) of such counterparts.

9.11 Interpretation. The article and section headings contained in this Agreement are solely for the purpose of reference, are not part of the agreement of the Parties and shall not in any way affect the meaning or interpretation of this Agreement. The words “include,” “includes” and “including” are deemed to be followed by the phrase “without limitation.” The words, “herein,” “hereto,” “hereof” and words of similar import refer to this Agreement as a whole, including any annexes, schedules and exhibits hereto, and not to any particular section, subsection, paragraph, subparagraph or clause contained in this Agreement. References in this Agreement to Sections and Section numbers are to Sections and Section numbers of this Agreement unless the context otherwise specifies or requires. The words “party” or “parties” shall refer to parties to this Agreement. References from or through any date mean, unless otherwise specified, from and including or through and including, respectively. The words “dollar” or “$” shall mean U.S. dollars. The word “day” means calendar day unless Business Day is expressly specified. Any reference to the masculine, feminine or neuter gender shall include such other genders and any reference to the singular or plural shall include the other, in each case unless the context otherwise requires. If any action under this Agreement is required to be done or taken on a day that is not a Business Day, then such action shall be required to be done or taken not on such day but on the first succeeding Business Day thereafter. The provisions of this Agreement shall be construed according to their fair meaning and neither for nor against any party hereto irrespective of which party caused such provisions to be drafted. Each of the Parties acknowledges that it has been represented by counsel in connection with the preparation and execution of this Agreement.

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9.12 Enforcement of Agreement. Each Party agrees that irreparable damage may occur in the event that the parties hereto do not perform the provisions of this Agreement in accordance with the specific terms thereof or otherwise breach such provisions, and that money damages may not be an adequate remedy, even if available. The Parties hereto accordingly agree that, prior to the valid termination of this Agreement pursuant to Article VIII, each Party shall be entitled to specific performance of the terms hereof, including an injunction or injunctions, to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof, as applicable, in a court determined pursuant to Section 9.13, this being in addition to any other remedy to which they are entitled at law or in equity. Each Party agrees that it will not oppose the granting of an injunction, specific performance and other equitable relief on the basis that any other party has an adequate remedy at law or that any award of specific performance is not an appropriate remedy for any reason at law or in equity. Any Party seeking an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement shall not be required to provide any bond or other security in connection with any such Order.

9.13 Forum; Service of Process. Each Party hereto submits to the exclusive jurisdiction of the Court of Chancery of the State of Delaware or, if such court does not have jurisdiction, any other state or federal court located in the State of Delaware, in any action or proceeding arising out of or relating to this Agreement, and agrees that all claims in respect of the action or proceeding may be heard and determined in any such court and agrees not to bring any action or proceeding arising out of or relating to this Agreement in any other court. Each Party hereto waives any defense of inconvenient forum to the maintenance of any action or proceeding so brought and waives any bond, surety or other security that might be required of any other party with respect thereto. Each Party hereto agrees that service of summons and complaint or any other process that might be served in any action or proceeding may be made on such party by sending or delivering a copy of the process to the party to be served at the address of the party and in the manner provided for the giving of notices in Section 9.2; provided, however, that nothing in this Section 9.13 shall affect the right of any party to serve legal process in any other manner permitted by Law. Each Party hereto agrees that a final, non-appealable judgment in any action or proceeding so brought shall be conclusive and may be enforced by suit on the judgment or in any other manner provided by Law.

9.14 Governing Law. This Agreement shall be governed by the Laws of the State of Delaware, excluding choice of law principles that would require the application of the Laws of a jurisdiction other than the State of Delaware.

9.15 WAIVER OF JURY TRIAL. TO THE FULLEST EXTENT PERMITTED BY LAW, THE PARTIES HERETO HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS TRANSACTION. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS AGREEMENT, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THE PARTIES HERETO ACKNOWLEDGE THAT THIS WAIVER IS A MATERIAL

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INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THE WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH WILL CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED FUTURE DEALINGS. THE PARTIES HERETO FURTHER WARRANT AND REPRESENT THAT EACH HAS REVIEWED THIS WAIVER WITH ITS, HIS OR HER, AS THE CASE MAY BE, LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THE WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE TRANSACTIONS CONTEMPLATED HEREBY. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

9.16 Asset Class Head.

(a) Appointment. The Seller hereby designates Marcel Schindler as the initial Asset Class Head. The Asset Class Head is the representative of the Seller and its attorney-in-fact with full power of substitution to act on behalf of the Seller to the extent and in the manner set forth in this Agreement and any other documents in connection with the Transactions (the “Asset Class Head”). The Seller confirms that all decisions, actions, consents and instructions by the Asset Class Head with respect to this Agreement and any other documents in connection with the Transactions shall be binding upon the Seller, and the Seller shall not have the right to object to, dissent from, protest or otherwise contest the same. STEP and SSG shall be entitled to rely on any decision, action, consent or instruction of the Asset Class Head as being the decision, action, consent or instruction of the Seller, and STEP and SSG are hereby relieved from any liability to any Person for acts done by them in accordance with any such decision, act, consent or instruction. Without limiting the generality of the foregoing, STEP and SSG are entitled to rely, without inquiry, upon any document delivered by the Asset Class Head as being genuine and correct and having been duly signed or sent by the Asset Class Head. The SCP Partners will acknowledge and confirm in the Acknowledgement that all decisions, actions, consents and instructions by the Asset Class Head with respect to this Agreement and any other documents in connection with the Transactions shall be binding upon all of the Seller and the SCP Partners, and neither the Seller nor any SCP Partner shall have the right to object to, dissent from, protest or otherwise contest the same.

(b) Changes to the Asset Class Head. In the event Marcel Schindler ceases to be the Head of Private Debt of SPD, whether due to death, incapacity, resignation or otherwise, then (i) such Person shall automatically cease to be the Asset Class Head, and (ii) the individual appointed by the SCP Partner Majority shall become the Asset Class Head for all purposes under this Agreement.

(c) Authority. The grant of authority provided for in this Section 9.16 is coupled with an interest, is being granted, in part, as an inducement to STEP and SSG to enter into this Agreement, and (i) shall be irrevocable and survive the dissolution, liquidation or bankruptcy of any party or the death, incompetency, liquidation or bankruptcy of the Seller, shall be binding on any successor thereto and (ii) shall survive the assignment by the Seller of the whole or any portion of his, her or its interest under this Agreement.

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(d) The Seller hereby consents to the taking of any and all actions and the making of any decisions required or permitted to be taken or made by Asset Class Head pursuant to this Section 9.16. The Seller agrees that the Asset Class Head shall have no obligation or liability to any Person for any action taken or omitted by her in good faith, and the Seller shall indemnify and hold harmless the Asset Class Head from, and shall pay to the Asset Class Head the amount of, or reimburse the Asset Class Head for, any loss that the Asset Class Head may suffer, sustain or become subject to as a result of any such action or omission by the Asset Class Head under this Agreement. The Asset Class Head may seek the advice of legal counsel in the event of any dispute or question as to the construction of any of the provisions of this Agreement or her duties hereunder, and, without limiting the foregoing, shall incur no liability in his capacity as the Asset Class Head to the Seller and shall be fully protected with respect to any action taken, omitted or suffered by it in good faith in accordance with the advice of such counsel.

(e) Any expenses or liabilities incurred by the Asset Class Head in connection with the performance of its duties under this Agreement or any other documents in connection with the Transactions shall not be the personal obligation of the Asset Class Head but shall be payable by the Seller.

9.17 SCP Partner Majority. Any action, vote or consent of the Seller or the Asset Class Head taken, cast or granted under this Agreement that under the terms of this Agreement is to be taken with an SCP Partner Majority, shall constitute a representation on the part of the Seller or the Asset Class Head, as applicable, that such Person has obtained the approval or consent in writing of SCP Partners holding at such time SCP Participations corresponding in the aggregate to at least a majority of the Seller’s economic equity interests in SPD (an “SCP Partner Majority”). SSG may from time to time require the Seller to provide written evidence of any such SCP Partner Majority.

ARTICLE X

DEFINITIONS

“Acceleration Exchange” has the meaning set forth in Section 1.6(a).

“Acceleration Exchange Adjustment Statement” has the meaning set forth in Section 1.6(c).

“Acceleration Party” has the meaning set forth in Section 1.6(h).

“Acknowledgement” means that certain acknowledgement to be entered into by SSG, the Seller and each SCP Partner pursuant to which, amongst other things, each SCP Partner shall acknowledge the terms and conditions of this Agreement, including (without limitation) the matters referred to in Sections 5.1, 6.1 and 7.6.

“Adjusted Exchange Value” means, with respect to an Exchange, an amount equal to the Exchange Value to be delivered in such Exchange as adjusted (i) pursuant to Section 1.5 with respect to an annual Exchange, or (ii) pursuant to Section 1.6 with respect to an Acceleration Exchange.

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“Adjusted Holdback” has the meaning set forth in Section 1.6(f).

“Adjustment Statement” has the meaning set forth in Section 1.5(a).

“Affiliate” means, with reference to a specified Person, any other Person that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, the specified Person. For purposes of this definition, the term “control” (including with correlative meanings, the terms “controlling”, “controlled by”, and “under common control with”), with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, either through the ownership of a majority of such Person’s voting stock, by contract or otherwise.

“Aggregate Equity Limit” has the meaning set forth in Section 1.8(a)

“Agreement” has the meaning set forth in the introductory paragraph.

“Allocation Notice” has the meaning set forth in Section 1.9.

“Annual Exchange Schedule” has the meaning set forth in Section 1.1(a).

“Antitrust Laws” means any antitrust, competition or trade regulation Laws that are designed or intended to prohibit, restrict or regulate actions having the purpose or effect of monopolization or restraint of trade or lessening competition through merger or acquisition, including without limitation the HSR Act, the Sherman Antitrust Act of 1890, the Clayton Act of 1914, the Federal Trade Commission Act of 1914, Council Regulation (EC) No 139/2004 of 20 January 2004 on the control of concentrations between undertakings in the European Union.

“Applicable Outside Date” means has the meaning set forth in Section 8.1(b).

“Asset Class Head” has the meaning set forth in Section 9.16(a).

“blocked person” has the meaning set forth in Section 3.6(c).

“Business Day” means any day other than a Saturday, Sunday or a day on which banks in New York, New York are authorized or obligated by applicable Law or executive order to close.

“Cash Percentage” means the percentage of the Exchange Value for an Exchange that is to be settled in cash.

“Change of Control” has the meaning given to such term in the SSG LPA.

“Closing” has the meaning set forth in Section 1.2(a).

“Closing Date” has the meaning set forth in Section 1.2(a).

“Code” means the Internal Revenue Code of 1986, as amended.

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“Consideration Securities” has the meaning set forth in Section 1.1(b).

“Downward Acceleration Exchange Adjustment Amount” has the meaning set forth in Section 1.6(c).

“Downward Adjustment Amount” has the meaning set forth in Section 1.5(a).

“Effective Time” has the meaning set forth in Section 1.2(a).

“Equity Percentage” means, with respect to certain Exchanged Securities, a percentage representing (a) the number of such Exchanged Securities divided by (b) the total number of issued and outstanding Equity Securities of SPD.

“Equity Securities” means, with respect to any Person, any and all partnership interests, capital stock, options or other equity securities in such Person, and all securities exchangeable for or convertible or exercisable into, any of the foregoing.

“Exchange” has the meaning set forth in the recitals of this Agreement.

“Exchange Notice” has the meaning set forth in Section 1.9.

“Exchanged Securities” has the meaning set forth in Section 1.1(a).

“Fifth Exchange” means the fifth annual Exchange to take place pursuant to this Agreement.

“Final Acceleration Exchange Value” has the meaning set forth in Section 1.6(c).

“Final Exchange Value” has the meaning set forth in Section 1.5(a).

“FINMA” means the Swiss Financial Market Supervisory Authority.

“First Exchange” means the first annual Exchange to take place pursuant to this Agreement with a Reference Date of the Initial Reference Date.

“Fractional Equity Payment” has the meaning set forth in Section 1.1(c).

“GAAP” means U.S. generally accepted accounting principles.

“Governmental Authority” means any government, court, regulatory or administrative agency, arbitral body or self-regulated entity, tribunal, commission or authority or other legislative, executive or judicial governmental entity, whether federal, national, provincial, state, local, foreign or multinational.

“HMT” has the meaning set forth in Section 3.6(c).

“Holdback” has the meaning set forth in Section 1.6(b).

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“HSR Act” means the U.S. Hart Scott Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations thereunder.

“HSR Approval” means the expiration or termination of any applicable waiting periods under the HSR Act or the execution of any consent agreement or other arrangement with any Governmental Authority that resolves concerns or objections under the Antitrust Laws with respect to the Transactions or any relevant Exchange.

“Initial Reference Date” has the meaning set forth in the recitals of this Agreement.

“IRS” means the U.S. Internal Revenue Service.

“Law” means any United States federal, state, local, municipal or non-United States statute, law, decree, Order, executive order, ordinance, rule, regulation, code, judgement, injunction and any common law.

“Nasdaq Approval” has the meaning set forth in Section 7.1(c).

“OFAC” has the meaning set forth in Section 3.6(c).

“Offered Securities” has the meaning set forth in Section 3.7.

“Order” means any final award, judgment, injunction, or verdict entered, issued, made or rendered by any Governmental Authority.

“Original Exchange Value” has the meaning set forth in Section 1.5(a).

“Other Transaction Agreements” mean the SIRA Transaction Agreement and the SRE Transaction Agreement.

“Party” has the meaning set forth in the introductory paragraph of this Agreement.

“Person” means and includes an individual, a corporation, a partnership, a limited liability company, a trust, an estate, an unincorporated organization, a government or any department or agency thereof, or any entity similar to any of the foregoing.

“Publicly Traded Securities” means (i) stock or other shares of capital, debt instruments or other interests which are traded on a U.S. national securities exchange and are not subject to any restrictions on transfer under the Securities Act or other applicable U.S. federal or state securities laws or any contractual restrictions on sale or transfer, (ii) income interests or capital interests in a partnership, limited liability company or other entity that are convertible or exchangeable into such securities described in clause (i) in full without any limitation on amount or timing, and (iii) other types of securities that are convertible or exchangeable into such securities described in clauses (i) or (ii) in full without any limitation on amount or timing.

“Proceedings” means actions, litigation, suits, charge, complaint, subpoena, grievance, order, demand, audit, investigation, claims and legal, administrative, arbitration or mediation or similar proceedings (whether sounding in contract, tort or otherwise, whether civil or criminal and whether brought at law or in equity).

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“Reduced Exchange Value” means, with respect to an Exchange, the Exchange Value (as defined in Annex A) in such Exchange, net of any Downward Adjustment carried forward pursuant to clause (ii) of the second sentence of Section 1.5(c).

“Reference Date” has the meaning set forth in the recitals of this Agreement.

“Reference Property” has the meaning set forth in Section 1.6(i)(iii).

“Reference Property Security” has the meaning set forth in Section 1.6(i)(iii).

“Registration Rights Agreement” means a registration rights agreement substantially in the form attached hereto as Exhibit A.

“Required Regulatory Approvals” has the meaning set forth in Section 2.1(a).

“Sanctioned Country” has the meaning set forth in Section 3.6(c).

“Sanctions” has the meaning set forth in Section 3.6(c).

“SCP LPA” means the amended and restated limited partnership agreement of SC Partner LP, as the same may be further amended or restated from time to time.

“SCP Participations” means partnership interests or other securities in the Seller that represent an economic interest in the Seller and that correspond to an indirect economic interest in SPD.

“SCP Capitalization Table” means the capitalization table of the Seller attached hereto as Exhibit B, which may be updated from time as contemplated by Section 7.8.

“SCP Distribution” has the meaning set forth in Section 1.9.

“SCP Partner” means a partner in the Seller.

“SCP Partner Majority” has the meaning set forth in Section 9.17.

“Securities Act” means the U.S. Securities Act of 1933, as amended.

“Seller” has the meaning set forth in the introductory paragraph of this Agreement.

“SIRA” has the meaning set forth in the recitals of this Agreement.

“SIRA Asset Class Head” has the meaning set forth in the recitals of this Agreement.

“Skipped Exchange” has the meaning set forth in Section 1.8(c).

“SPD” has the meaning set forth in the introductory paragraph of this Agreement.

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“SPD Shareholders’ Agreement” means the Amended and Restated Shareholders’ Agreement of StepStone Group Private Debt AG, to be dated no later than the date of the first Exchange, in form satisfactory to each of SSG and the Asset Class Head, as the same may be further amended or restated from time to time.

“specially designated national” has the meaning set forth in Section 3.6(c).

“SRE” has the meaning set forth in the recitals of this Agreement.

“SRE Asset Class Head” has the meaning set forth in the recitals of this Agreement.

“SSG” has the meaning set forth in the introductory paragraph of this Agreement.

“SSG LPA” means Ninth Amended and Restated Limited Partnership Agreement of StepStone Group LP, dated September 20, 2021, as the same may be further amended or restated from time to time in accordance with the terms thereof.

“STEP” has the meaning set forth in the introductory paragraph of this Agreement.

“STEP Audited Financials” has the meaning set forth in Section 1.5(a).

“STEP Board” has the meaning set forth in Section 1.6(i).

“STEP Class A Common Stock” means the Class A Common Stock of STEP, par value $0.001 per share (or any successor security of STEP).

“STEP Stockholder Approval” has the meaning set forth in Section 7.1(b).

“StepStone” has the meaning set forth in the introductory paragraph of this Agreement.

“STEP 30-Day VWAP” means, as of any date, the arithmetic average (rounded to the nearest second decimal place) of the per share volume-weighted average price as displayed under the heading “Bloomberg VWAP” on Bloomberg page “STEP <equity> AQR” (or its equivalent successor if such page is not available) or any successor security thereto, in respect of the period from the scheduled open of trading until the scheduled close of trading of the primary trading session on such Trading Day, on the trading market on which STEP Class A Common Stock is primarily listed on and quoted for trading as reported by Bloomberg L.P. (or its successor) or, if not available, by Dow Jones & Company Inc. (or its successor), or if neither is available, by another authoritative source, for each of the thirty (30) consecutive Trading Days ending on and including the fifteenth (15th) Trading Day after the Reference Date.

“Tax” or “Taxes” means (a) any federal, state, local or foreign income, gross receipts, franchise, estimated, alternative minimum, add-on minimum, sales, use, transfer, real property gains, registration, value added, excise, natural resources, severance, stamp, occupation, premium, windfall profit, environmental, customs, duties, real property, special assessment, personal property, capital stock, social security, unemployment, disability, payroll, license, employee or other withholding, or other tax, of any kind whatsoever, including any interest, penalties or additions to tax or additional amounts in respect of the foregoing; (b) any liability for payment of amounts described in clause (a) whether as a result of transferee liability, of being a

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member of an affiliated, consolidated, combined or unitary group for any period or otherwise through operation of law; and (c) any liability for the payment of amounts described in clauses (a) or (b) as a result of any tax sharing, tax receivable, tax indemnity or tax allocation agreement or any other express or implied agreement to indemnify any other Person (other than any commercial agreement entered into in the ordinary course of business and the primary focus of which is not Tax).

“Termination Acceleration Exchange” has the meaning set forth in Annex C this Agreement.

“Trading Day” means a day on which (i) trading in the STEP Class A Common Stock (or other security for which a closing sale price must be determined) generally occurs on Nasdaq or, if the STEP Class A Common Stock (or such other security) is not then listed on Nasdaq, on the principal other U.S. national or regional securities exchange on which the STEP Class A Common Stock (or such other security) is then listed or, if the STEP Class A Common Stock (or such other security) is not then listed on a U.S. national or regional securities exchange, on the principal other market on which the STEP Class A Common Stock (or such other security) is then traded and (ii) a last reported sale price for the STEP Class A Common Stock (or closing sale price for such other security) is available on such securities exchange or market; provided, that, if the STEP Class A Common Stock (or such other security) is not so listed or traded, “Trading Day” means a Business Day.

“Transaction” has the meaning set forth in the recitals of this Agreement.

“Transfer”, including correlative terms, means any sale, conveyance, exchange, assignment, pledge, encumbrance, gift, bequest, hypothecation or other transfer or disposition by any other means, of any or all of the Seller’s shares of Class A Common Stock (or other economic interest in STEP), whether for value or no value and whether directly or indirectly, voluntary or involuntary (including, without limitation, by operation of law), or an agreement to do any of the foregoing.

“Transfer Instrument” has the meaning set forth in Section 2.3(b)(i).

“UNSC” has the meaning set forth in Section 3.6(c).

“Upward Acceleration Exchange Adjustment Amount” has the meaning set forth in Section 1.6(c).

“Upward Adjustment Amount” has the meaning set forth in Section 1.5(a).

“Waterfall Allocation Agreement” means the waterfall allocation agreement made between SPD, the Seller, SSE and SSG dated 2 December 2016, as amended from time to time.

“willful and material breach” means has the meaning set forth in Section 8.2(a).

* * * * *

[Signature Pages Follow]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.


STEP:

STEPSTONE GROUP INC.

By:		/s/ Scott Hart
Name: Scott Hart
Title: Partner and Chief Executive Officer