10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2010

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file number 1-13908

Invesco Ltd.

(Exact Name of Registrant as Specified in Its Charter)

Bermuda	98-0557567
(State or Other Jurisdiction of	(I.R.S. Employer
Incorporation or Organization)	Identification No.)
1555 Peachtree Street, N.E., Suite 1800, Atlanta, GA	30309
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (404) 892-0896

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Name of Exchange on Which Registered
Common Shares, $0.20 par value per share	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

     Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

     Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No o

     Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer þ	Accelerated filer o	Non-accelerated filer o	Smaller reporting company o
		(Do not check if a smaller reporting company)

     Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.) Yes o No þ

     As of June 30, 2010, the most recent practicable date, 468,130,948 of the company’s common shares and common share equivalents par value $0.20 per share, were outstanding.

TABLE OF CONTENTS

     We include cross references to captions elsewhere in this Quarterly Report on Form 10-Q, which we refer to as this “Report,” where you can find related additional information. The following table of contents tells you where to find these captions.

		Page
PART I — Financial Information
Item 1.	Financial Statements (unaudited)
	Condensed Consolidated Balance Sheets		3
	Condensed Consolidated Statements of Income		4
	Condensed Consolidated Statements of Cash Flows		5
	Condensed Consolidated Statements of Changes in Equity		6
	Notes to the Condensed Consolidated Financial Statements		7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		44
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		94
Item 4.	Controls and Procedures		95
PART II — Other Information
Item 1.	Legal Proceedings		96
Item 1A.	Risk Factors		96
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		96
Item 3.	Defaults upon Senior Securities		97
Item 4.	Submission of Matters to a Vote of Security Holders		97
Item 6.	Exhibits		98
	Signatures		99
EX-10.1
EX-10.2
EX-31.1
EX-31.2
EX-32.1
EX-32.2
EX-101 INSTANCE DOCUMENT
EX-101 SCHEMA DOCUMENT
EX-101 CALCULATION LINKBASE DOCUMENT
EX-101 LABELS LINKBASE DOCUMENT
EX-101 PRESENTATION LINKBASE DOCUMENT
EX-101 DEFINITION LINKBASE DOCUMENT

2

Item 1. Financial Statements

Invesco Ltd.

Condensed Consolidated Balance Sheets

(Unaudited)

	As of
$ in millions, except share data	June 30, 2010			December 31, 2009
ASSETS
Current assets:
Cash and cash equivalents		555.6			762.0
Cash and cash equivalents of consolidated investment products		301.7			28.0
Unsettled fund receivables		685.2			383.1
Accounts receivable		326.0			289.3
Accounts receivable of consolidated investment products		100.5			—
Investments		314.0			182.4
Prepaid assets		67.7			57.6
Other current assets		91.0			77.9
Deferred tax asset, net		64.8			57.7
Assets held for policyholders		1,151.5			1,283.0
Total current assets		3,658.0			3,121.0
Non-current assets:
Investments		147.7			157.4
Investments of consolidated investment products		6,788.5			685.0
Prepaid assets		5.9			16.2
Other non-current assets		19.7			13.0
Deferred sales commissions		40.3			23.8
Deferred tax asset, net		—			65.8
Property and equipment, net		232.1			220.7
Intangible assets, net		1,322.8			139.1
Goodwill		6,688.9			6,467.6
Total non-current assets		15,245.9			7,788.6
Total assets		18,903.9			10,909.6
LIABILITIES AND EQUITY
Current liabilities:
Unsettled fund payables		643.6			367.9
Income taxes payable		58.8			82.8
Other current liabilities		596.4			559.9
Other current liabilities of consolidated investment products		324.7			4.8
Policyholder payables		1,151.5			1,283.0
Total current liabilities		2,775.0			2,298.4
Non-current liabilities:
Long-term debt		1,395.7			745.7
Long-term debt of consolidated investment products		5,404.4			—
Deferred tax liabilities, net		258.0			—
Other non-current liabilities		250.7			244.7
Total non-current liabilities		7,308.8			990.4
Total liabilities		10,083.8			3,288.8
Commitments and contingencies (See Note 15)
Equity:
Equity attributable to common shareholders:
Common shares ($0.20 par value; 1,050.0 million authorized; 471.2 million shares issued as of June 30, 2010, and December 31, 2009)		94.2			91.9
Participating preferred shares ($0.20 par value; 25,000 authorized as of June 30, 2010; 19,212 shares issued as of June 30, 2010)		—			—
Additional paid-in-capital		6,249.3			5,688.4
Treasury shares		(846.4	)		(892.4	)
Retained earnings		1,678.7			1,631.4
Retained earnings appropriated for investors in consolidated investment products		719.5			—
Accumulated other comprehensive income/(loss), net of tax		213.6			393.6
Total equity attributable to common shareholders		8,108.9			6,912.9
Equity attributable to noncontrolling interests in consolidated entities		711.2			707.9
Total equity		8,820.1			7,620.8
Total liabilities and equity		18,903.9			10,909.6

See accompanying notes.

3

Invesco Ltd.

Condensed Consolidated Statements of Income

(Unaudited)

	Three months Ended						Six months Ended
	June 30,						June 30,
$ in millions, except per share data	2010			2009			2010			2009
Operating revenues:
Investment management fees		627.9			501.6			1,221.4			938.1
Service and distribution fees		139.4			100.4			251.9			189.4
Performance fees		3.5			8.0			4.9			18.9
Other		16.2			15.1			27.9			27.3
Total operating revenues		787.0			625.1			1,506.1			1,173.7
Operating expenses:
Employee compensation		260.5			229.0			498.1			464.8
Third-party distribution, service and advisory		220.7			166.3			416.3			314.5
Marketing		35.2			23.9			63.5			50.8
Property, office and technology		55.8			48.6			109.3			94.5
General and administrative		64.1			46.9			114.1			76.9
Transaction and integration		79.3			—			96.5			—
Total operating expenses		715.6			514.7			1,297.8			1,001.5
Operating income		71.4			110.4			208.3			172.2
Other income/(expense):
Equity in earnings of unconsolidated affiliates		10.4			7.5			16.2			10.0
Interest income		1.8			1.2			3.4			6.0
Interest income of consolidated investment products		53.1			—			105.6			—
Gains/(losses) of consolidated investment products, net		187.2			(48.4	)		290.3			(134.9	)
Interest expense		(14.1	)		(16.5	)		(26.5	)		(32.4	)
Interest expense of consolidated investment products		(25.6	)		—			(46.4	)		—
Other gains and losses, net		(9.3	)		10.0			(11.4	)		5.8
Income before income taxes, including gains and losses attributable to noncontrolling interests		274.9			64.2			539.5			26.7
Income tax provision		(36.7	)		(36.0	)		(86.8	)		(56.3	)
Net income/(loss), including gains and losses attributable to noncontrolling interests		238.2			28.2			452.7			(29.6	)
(Gains)/losses attributable to noncontrolling interests in consolidated entities, net		(197.4	)		47.5			(316.9	)		136.0
Net income attributable to common shareholders		40.8			75.7			135.8			106.4
Earnings per share:
— basic	$	0.09		$	0.18		$	0.30		$	0.26
— diluted	$	0.09		$	0.18		$	0.30		$	0.26
Dividends declared per share	$	0.11		$	0.1025		$	0.2125		$	0.2025

See accompanying notes.

4

Invesco Ltd.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Six months ended June 30,
$ in millions	2010			2009
Operating activities:
Net income/(loss), including gains attributable to noncontrolling interests of $316.9 million during the six months ended June 30, 2010 (losses of $136.0 million during the six months ended June 30, 2009)		452.7			(29.6	)
Adjustments to reconcile net income/(loss) to net cash used in operating activities:
Amortization and depreciation		39.1			32.7
Share-based compensation expense		55.5			43.9
Purchase of trading investments		(1,360.6	)		(38.0	)
Proceeds from sale of trading investments		1,298.1			8.9
Other gains and losses, net		11.4			(5.8	)
(Gains)/losses of consolidated investment products, net		(290.3	)		134.9
Tax benefit from share-based compensation		44.8			31.6
Excess tax benefits from share-based compensation		(12.3	)		—
Equity in earnings of unconsolidated affiliates		(16.2	)		(10.0	)
Dividends from unconsolidated affiliates		2.3			25.8
Changes in operating assets and liabilities:
(Increase)/decrease in cash held by consolidated investment products		(92.5	)		25.6
(Increase)/decrease in receivables		(288.3	)		(362.5	)
Increase/(decrease) in payables		92.9			139.7
Net cash used in operating activities		(63.4	)		(2.8	)
Investing activities:
Purchase of property and equipment		(35.7	)		(17.1	)
Disposal of property and equipment		—			0.3
Purchase of available-for-sale investments		(20.4	)		(3.3	)
Proceeds from sale of available-for-sale investments		11.2			16.4
Purchase of investments by consolidated investment products		(1,090.2	)		(17.2	)
Proceeds from sale of investments by consolidated investment products		1,241.1			9.7
Returns of capital in investments of consolidated investment products		44.4			8.5
Purchase of other investments		(36.3	)		(19.8	)
Proceeds from sale of other investments		39.0			20.4
Acquisition of businesses (cash paid $770.0 million, less cash acquired $57.8 million)		(712.2	)		—
Net cash used in investing activities		(559.1	)		(2.1	)
Financing activities:
Issuance of new shares		—			441.8
Proceeds from exercises of share options		6.2			9.6
Dividends paid		(93.7	)		(80.2	)
Excess tax benefits from share-based compensation		12.3			—
Capital invested into consolidated investment products		2.0			2.8
Capital distributed by consolidated investment products		(40.1	)		(24.5	)
Repayments of debt of consolidated investment products		(102.4	)		—
Net borrowings/(repayments) under credit facility		650.0			(12.0	)
Repayments of senior notes		—			(103.0	)
Acquisition of remaining noncontrolling interest in subsidiary		—			(10.3	)
Net cash provided by financing activities		434.3			224.2
(Decrease)/increase in cash and cash equivalents		(188.2	)		219.3
Foreign exchange movement on cash and cash equivalents		(18.2	)		13.2
Cash and cash equivalents, beginning of period		762.0			585.2
Cash and cash equivalents, end of period		555.6			817.7
Supplemental Cash Flow Information:
Interest paid		(21.6	)		(31.9	)
Interest received		3.2			6.3
Taxes paid		(79.5	)		(31.2	)

See accompanying notes.

5

Invesco Ltd.

Condensed Consolidated Statements of Changes in Equity

(Unaudited)

	Equity Attributable to Common Shareholders
														Retained
														Earnings
														Appropriated for					Non-
														Investors in		Accumulated			Controlling
			Participating		Additional									Consolidated		Other			Interests in
	Common		Preferred		Paid-in-			Treasury			Retained			Investment		Comprehensive			Consolidated			Total
$ in millions	Shares		Shares		Capital			Shares			Earnings			Products		Income			Entities			Equity
January 1, 2010		91.9		—		5,688.4			(892.4	)		1,631.4			—		393.6			707.9			7,620.8
Adoption of FASB Statement No. 167		—		—		—			—			5.2			274.3		(5.2	)		—			274.3
January 1, 2010, as adjusted		91.9		—		5,688.4			(892.4	)		1,636.6			274.3		388.4			707.9			7,895.1
Net income, including gains and losses attributable to noncontrolling interests		—		—		—			—			135.8			277.4		—			39.5			452.7
Other comprehensive income:
Currency translation differences on investments in overseas subsidiaries		—		—		—			—			—			37.1		(186.1	)		—			(149.0	)
Change in accumulated OCI related to employee benefit plans		—		—		—			—			—			—		7.0			—			7.0
Change in net unrealized gains on available-for-sale investments		—		—		—			—			—			—		6.0			—			6.0
Tax impacts of changes in accumulated other comprehensive income balances		—		—		—			—			—			—		(1.7	)		—			(1.7	)
Total comprehensive income		—		—		—			—			—			—		—			—			315.0
Change in noncontrolling interests in consolidated entities, net		—		—		—			—			—			—		—			(36.2	)		(36.2	)
Business Combination		2.3		—		566.9			—			—			130.7		—			—			699.9
Dividends		—		—		—			—			(93.7	)		—		—			—			(93.7	)
Employee share plans:
Share-based compensation		—		—		55.5			—			—			—		—			—			55.5
Vested shares		—		—		(59.1	)		59.1			—			—		—			—			—
Exercise of options		—		—		(14.7	)		20.9			—			—		—			—			6.2
Tax impact of share-based payment		—		—		12.3			—			—			—		—			—			12.3
Purchase of shares		—		—		—			(34.0	)		—			—		—			—			(34.0	)
June 30, 2010		94.2		—		6,249.3			(846.4	)		1,678.7			719.5		213.6			711.2			8,820.1

	Equity Attributable to Common Shareholders														Non-
												Accumulated			Controlling
			Additional									Other			Interests in
	Common		Paid-in-			Treasury			Retained			Comprehensive			Consolidated			Total
$ in millions	Shares		Capital			Shares			Earnings			Loss			Entities			Equity
January 1, 2009		85.3		5,352.6			(1,128.9	)		1,476.3			(95.8	)		906.7			6,596.2
Net income/(loss), including gains and losses attributable to noncontrolling interests		—		—			—			106.4			—			(136.0	)		(29.6	)
Other comprehensive income:
Currency translation differences on investments in overseas subsidiaries		—		—			—			—			319.5			—			319.5
Change in minimum pension liability													(3.5	)					(3.5	)
Change in net unrealized gains on available-for-sale investments		—		—			—			—			3.1			—			3.1
Adoption of FSP FAS 115-2		—		—			—			—			(1.5	)		—			(1.5	)
Tax impacts of changes in accumulated other comprehensive income balances		—		—			—			—			2.0			—			2.0
Total comprehensive income		—		—			—			—			—			—			290.0
Adoption of FSP FAS 115-2		—		—			—			1.5			—			—			1.5
Change in noncontrolling interests in consolidated entities, net		—		—			—			—			—			(61.9	)		(61.9	)
Issuance of new shares		6.6		435.2			—			—			—			—			441.8
Dividends		—		—			—			(80.2	)		—			—			(80.2	)
Employee share plans:																—			—
Share-based compensation		—		43.9			—			—			—			—			43.9
Vested shares		—		(83.2	)		83.2			—			—			—			—
Exercise of options		—		(15.8	)		25.4			—			—			—			9.6
Tax impact of share-based payment		—		(2.5	)		—			—			—			—			(2.5	)
Modification of share-based payment awards		—		(13.0	)		—			—			—			—			(13.0	)
Purchase of shares		—		—			(12.3	)		—			—			—			(12.3	)
Acquisition of remaining noncontrolling interest in subsidiary		—		(8.9	)		—			—			—			(1.4	)		(10.3	)
June 30, 2009		91.9		5,708.3			(1,032.6	)		1,504.0			223.8			707.4			7,202.8

See accompanying notes.

6

Invesco Ltd.

Notes to the Condensed Consolidated Financial Statements

1. ACCOUNTING POLICIES

Corporate Information

     Invesco Ltd. (Parent) and all of its consolidated entities (collectively, the company or Invesco) provide retail, institutional and high-net-worth clients with an array of global investment management capabilities. The company’s sole business is investment management.

Basis of Accounting and Consolidation

     The accompanying Condensed Consolidated Balance Sheets, Statements of Income, Statements of Cash Flows, and Statement of Changes in Equity (together, the Condensed Consolidated Financial Statements) have not been audited and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the company’s Annual Report on Form 10-K for the year ended December 31, 2009. In the opinion of management, the Condensed Consolidated Financial Statements reflect all adjustments, consisting of normal recurring accruals, which are necessary for the fair presentation of the financial condition and results of operations for the interim periods presented. All significant intercompany transactions, balances, revenues and expenses are eliminated upon consolidation.

     The Condensed Consolidated Financial Statements have been prepared in accordance with U.S. GAAP and consolidate the financial statements of the Parent, all of its controlled subsidiaries, any variable interest entities (VIEs) required to be consolidated, and any non-VIE general partnership investments where the company is deemed to have control. Control is deemed to be present when the Parent holds a majority voting interest or otherwise has the power to govern the financial and operating policies of the subsidiary so as to obtain the benefits from its activities. The company provides investment management services to, and has transactions with, various private equity funds, real estate funds, fund-of-funds, collateralized loan obligations (CLOs), and other investment products sponsored by the company for the investment of client assets in the normal course of business. The company serves as the investment manager, making day-to-day investment decisions concerning the assets of these products. Certain of these entities are considered to be VIEs.

     The company follows the provisions of Accounting Standards Codification (ASC) Topic 810, “Consolidation,” when accounting for VIEs, including Accounting Standards Update (ASU) No. 2010-10, “Amendments for Certain Investment Funds” (ASU 2010-10), detailed in “Accounting Pronouncements Recently Adopted and Pending Accounting Pronouncements” below. VIEs, or entities in which the risks and rewards of ownership are not directly linked to voting interests, for which the company is the primary beneficiary are consolidated. For all investment products with the exception of CLOs, if the company is deemed to have a variable interest in, and to have the majority of rewards/risks of ownership associated with, these entities, then the company is deemed to be their primary beneficiary and is required to consolidate these entities. For CLOs, if the company is deemed to have the power to direct the activities of the CLO that most significantly impact the CLO’s economic performance, and the obligation to absorb losses/right to receive benefits from the CLO that could potentially be significant to the CLO, then the company is deemed to be the CLO’s primary beneficiary and is required to consolidate the CLO. Investment products that are consolidated are referred to as consolidated investment products in the accompanying Condensed Consolidated Financial Statements.

     A significant portion of consolidated investment products are CLOs. CLOs are investment vehicles created for the sole purpose of issuing collateralized loan instruments that offer investors the opportunity for returns that vary with the risk level of their investment. The notes issued by the CLOs are backed by diversified collateral asset portfolios consisting primarily of loans or structured debt. For managing the collateral for the CLO entities, the company earns investment management fees, including in some cases subordinated management fees, as well as contingent incentive fees. The company has invested in certain of the entities, generally taking a portion of the unrated, junior subordinated position. The company’s investments in CLOs are generally subordinated to other interests in the entities and entitles the company and other subordinated tranche investors to receive the residual cash flows, if any, from the entities. Investors in the CLOs have no recourse against the company for any losses sustained in the CLO structure.

7

     All of the investments held and notes issued by consolidated investment products are presented at fair value in the company’s Condensed Consolidated Balance Sheet at June 30, 2010, and interest income and expense of consolidated CLOs is presented as other income/(expense) in the company’s Condensed Consolidated Income Statement for the six months ended June 30, 2010. The surplus of consolidated CLO assets over consolidated CLO liabilities is reflected in the company’s Condensed Consolidated Balance Sheet as retained earnings appropriated for investors in consolidated investment products. Current period gains/(losses) attributable to investors in consolidated CLOs are included in (gains)/losses attributable to noncontrolling interests in consolidated entities in the Condensed Consolidated Statement of Income and in the retained earnings appropriated for investors in consolidated investment products in the Condensed Consolidated Balance Sheet, as they are considered noncontrolling interests of the company. See Note 12, “Consolidated Investment Products,” for additional details.

     The company also consolidates certain private equity funds that are structured as partnerships in which the company is the general partner receiving a management and/or performance fee. Private equity investments made by the underlying funds consist of direct investments in, or fund investments in other private equity funds that hold direct investments in, equity or debt securities in operating companies that are generally not initially publicly traded. Private equity funds are considered investment companies and are therefore accounted for under the Accounting Standards Codification (ASC) Topic 946, “Financial Services — Investment Companies.” The company has retained the specialized industry accounting principles of these investment products in its Condensed Consolidated Financial Statements. See Note 12, “Consolidated Investment Products,” for additional details.

     Non-VIE general partnership investments are deemed to be controlled by the company and are consolidated under a voting interest entity (VOE) model, unless the limited partners have the substantive ability to remove the general partner without cause based upon a simple majority vote or can otherwise dissolve the partnership, or unless the limited partners have substantive participating rights over decision-making.

     If the company determines that it does not control the private equity partnership funds in which it has invested, the equity method of accounting is used to account for the company’s investment in these entities. The equity method of accounting is also used to account for investments in joint ventures and noncontrolled subsidiaries in which the company’s ownership is between 20 and 50 percent. Equity investments are carried initially at cost (subsequently adjusted to recognize the company’s share of the profit or loss of the investee after the date of acquisition) and are included in investments on the Condensed Consolidated Balance Sheets. The proportionate share of income or loss is included in equity in earnings of unconsolidated affiliates in the Condensed Consolidated Statements of Income. If the company determines that it does not control CLOs in which it has invested, the company accounts for its investments as available-for-sale investments.

     The financial statements have been prepared primarily on the historical cost basis; however, certain items are presented using other bases such as fair value, where such treatment is required or voluntarily elected. The financial statements of subsidiaries, with the exception of consolidated investment products as discussed above, are prepared for the same reporting year as the Parent and use consistent accounting policies, which, where applicable, have been adjusted to U.S. GAAP from local generally accepted accounting principles or reporting regulations. The financial information of the consolidated CLOs is included in the company’s consolidated financial statements on a one-month lag. Noncontrolling interests in consolidated entities and retained earnings appropriated for investors in consolidated investment products represent the interests in certain entities consolidated by the company either because the company has control over the entity or has determined that it is the primary beneficiary, but of which the company does not own all of the entity’s equity.

     In preparing the financial statements, management is required to make estimates and assumptions that affect reported revenues, expenses, assets, liabilities and disclosure of contingent liabilities. The primary estimates relate to investment valuation, goodwill impairment and taxes. Use of available information and application of judgment are inherent in the formation of estimates. Actual results in the future could differ from such estimates and the differences may be material to the financial statements.

Reclassifications

     The presentation of certain prior period reported amounts has been reclassified to be consistent with the current presentation. Such reclassifications had no impact on net income or equity attributable to common shareholders.

Accounting Pronouncements Recently Adopted and Pending Accounting Pronouncements

     In December 2007, the FASB issued Statement No. 141 (revised 2007), “Business Combinations (FASB Statement No. 141(R)),” and Statement No. 160, “Noncontrolling Interests in Consolidated Financial Statements, an amendment of ARB No. 51 (FASB

8

Statement No. 160).” Under FASB Statement No. 141(R), which is now encompassed in ASC Topic 805, “Business Combinations,” the acquirer must recognize, with certain exceptions, 100% of the fair values of assets acquired, liabilities assumed, and noncontrolling interests in acquisitions of less than 100% controlling interest when the acquisition constitutes a change in control of the acquired entity. Additionally, when an acquirer obtains partial ownership in an acquiree, an acquirer recognizes and consolidates assets acquired, liabilities assumed and any noncontrolling interests at 100% of their fair values at that date regardless of the percentage ownership in the acquiree. As goodwill is calculated as a residual, all goodwill of the acquired business, not just the acquirer’s share, is recognized under this “full-goodwill” approach. Contingent consideration obligations that are elements of consideration transferred are recognized as of the acquisition date as part of the fair value transferred in exchange for the acquired business. Acquisition-related costs incurred in connection with a business combination shall be expensed. FASB Statement No. 160, which is now encompassed in ASC Topic 810, “Consolidation,” establishes new accounting and reporting standards for noncontrolling interests (formerly known as “minority interests”) in a subsidiary and for the deconsolidation of a subsidiary. FASB Statement No. 141(R) and FASB Statement No. 160 became effective for the company on January 1, 2009. FASB Statement No. 141(R) was applied prospectively, while FASB Statement No. 160 required retroactive adoption of the presentation and disclosure requirements for existing noncontrolling interests but prospective adoption of all of its other requirements. The adoption of FASB Statement No. 141(R) amended the definition of a business, which led to a change in the company’s basis, but not the company’s conclusion, of determining that it has one reporting unit for goodwill impairment purposes. See Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations, Critical Accounting Policies and Estimates – Goodwill” for additional information. The company completed the acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments (the “acquired business” or the “acquisition”) on June 1, 2010. See Note 4, “Business Combination and Integration” for additional details.

     In February 2008, the FASB issued Staff Position No. FAS 157-2, “Effective Date of FASB Statement No. 157 (FSP FAS 157-2).” FSP FAS 157-2, which is now encompassed in ASC Topic 820, amended FASB Statement No. 157 to delay the effective date for nonfinancial assets and nonfinancial liabilities except for items that are recognized or disclosed at fair value in the financial statements on a recurring basis (that is, at least annually). For items within its scope, FSP FAS 157-2 delayed the effective date of FASB Statement No. 157 to January 1, 2009. As of January 1, 2008, Invesco applied the fair value measurement and disclosure provisions of FASB Statement No. 157 to its financial assets and financial liabilities that are recognized or disclosed at fair value in the financial statements. As of January 1, 2009, Invesco applied the fair value measurement and disclosure provisions of FASB Statement No. 157 to nonfinancial assets and nonfinancial liabilities that are recognized or disclosed at fair value in the financial statements on a non-recurring basis. Those items include: (1) nonfinancial assets and nonfinancial liabilities initially measured at fair value in a business combination or other new basis event, but not measured at fair value in subsequent periods; (2) nonfinancial long-lived assets measured at fair value for an impairment assessment under FASB Statement No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets;” (now encompassed in ASC Topic 360, “Property, Plant and Equipment”); (3) nonfinancial liabilities for exit or disposal activities initially measured at fair value under FASB Statement No. 146, “Accounting for Costs Associated with Exit or Disposal Activities;” (now encompassed in ASC Topic 420, “Exit or Disposal Cost Obligations”) and (4) nonfinancial assets and nonfinancial liabilities measured at fair value in the second step of a goodwill impairment test. The adoption of FSP FAS 157-2 did not have a material impact on the company’s financial statements.

     In April 2008, the FASB issued Staff Position No. FAS 142-3, “Determination of the Useful Life of Intangible Assets” (FSP FAS 142-3). FSP FAS 142-3, which is now encompassed in ASC Topic 350, “Intangibles – Goodwill and Other” (ASC Topic 350), amended the factors that should be considered in developing renewal or extension assumptions used to determine the useful life over which to amortize the cost of a recognized intangible asset under FASB Statement No. 142, “Goodwill and Other Intangible Assets,” also now encompassed in ASC Topic 350. FSP FAS 142-3 required an entity to consider its own assumptions about renewal or extension of the term of the arrangement, consistent with its expected use of the asset. FSP FAS 142-3 was intended to improve the consistency between the useful life of an intangible asset determined under FASB Statement No. 142 and the period of expected cash flows used to measure the fair value of the asset under FASB Statement No. 141(R) (now encompassed in ASC Topic 805) and other U.S. GAAP. The guidance provided by FSP FAS 142-3 for determining the useful life of a recognized intangible asset was to be applied prospectively to intangible assets acquired after the effective date, which is January 1, 2009. FSP FAS 142-3 did not have a material impact on the company’s financial statements.

     During June 2008, the FASB issued Staff Position No. EITF 03-6-1, “Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities” (FSP EITF 03-6-1). FSP EITF 03-6-1, which is now encompassed in ASC Topic 260, “Earnings Per Share” (ASC Topic 260), addressed whether instruments granted in share-based payment transactions are participating securities prior to vesting and need to be included in the earnings allocation in computing earnings per share (EPS) under the two-class method described in FASB Statement No. 128, “Earnings Per Share,” also now encompassed in ASC Topic 260. The guidance in the FSP EITF 03-6-1 provided that only those unvested share-based payment awards that contain nonforfeitable rights to

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dividends or dividend equivalents are participating securities that should be included in the calculation of basic EPS under the two-class method. The FASB concluded that the holder of a share-based award receives a noncontingent transfer of value each time the entity declares a dividend, and therefore the share-based award meets the definition of a participating security. FSP EITF 03-6-1 was effective for financial statements issued for fiscal years beginning after December 15, 2008, with all prior period EPS data being adjusted retrospectively. The adoption of FSP EITF 03-6-1 on January 1, 2009, required the company to include unvested restricted stock units (RSUs) that contain nonforfeitable dividend equivalents as outstanding common shares for purposes of calculating basic EPS. The adoption of FSP EITF 03-6-1 did not have a material impact on the company’s calculation of diluted EPS for periods prior to January 1, 2009.

     In December 2008, the FASB issued FASB Staff Position No. FAS 140-4 and FIN 46(R)-8, “Disclosures about Transfers of Financial Assets and Interests in Variable Interest Entities (FSP FAS 140-4 and FIN 46(R)-8),” which became effective for the company on March 31, 2009. FSP FAS 140-4 and FIN 46(R)-8, which is now encompassed in ASC Topic 860, “Transfers and Servicing,” required additional disclosures by public entities with a) continuing involvement in transfers of financial assets to a special purpose entity or b) a variable interest in a variable interest entity. The adoption of FSP FAS 140-4 and FIN 46(R)-8 did not have a material impact on the company’s financial statements. See Note 12, “Consolidated Investment Products,” for additional disclosures.

     In January 2009, the FASB issued Staff Position No. EITF 99-20-1, “Amendments to the Impairment Guidance of EITF Issue No. 99-20 (FSP EITF 99-20-1),” which became effective for the company on March 31, 2009. FSP EITF 99-20-1, which is now encompassed in ASC Topic 325, revised the impairment guidance provided by EITF 99-20 for beneficial interests to make it consistent with the requirements of FASB Statement No. 115 (now encompassed in ASC Topic 320) for determining whether an impairment of other debt and equity securities is other-than-temporary. FSP EITF 99-20-1 eliminated the requirement to rely exclusively on market participant assumptions about future cash flows and permitted the use of reasonable management judgment of the probability that the holder will be unable to collect all amounts due. Instead, FSP 99-20-1 required that an other-than-temporary impairment be recognized when it is probable that there has been an adverse change in the holder’s estimated cash flows. FSP EITF 99-20-1 did not have a material impact on the company’s financial statements.

     On April 9, 2009, the FASB issued three Staff Positions (FSPs) intended to provide additional application guidance and enhance disclosures regarding fair value measurements and impairments of securities. FSP FAS 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions that Are Not Orderly (FSP FAS 157-4),” now encompassed in ASC Topic 820, provided guidelines for making fair value measurements more consistent with the principles presented in FASB Statement No. 157. FSP FAS 107-1 and APB 28-1, “Interim Disclosures about Fair Value of Financial Instruments (FSP FAS 107-1),” now encompassed in ASC Topic 825, enhanced consistency in financial reporting by increasing the frequency of fair value disclosures. FSP FAS 115-2 and FAS 124-2, “Recognition and Presentation of Other-Than-Temporary Impairments (FSP FAS 115-2),” now encompassed in ASC Topic 320-10-65, provided additional guidance designed to create greater clarity and consistency in accounting for and presenting impairment losses on securities.

     FSP FAS 157-4 addressed the measurement of fair value of financial assets when there is no active market or where the price inputs being used could be indicative of distressed sales. FSP FAS 157-4 reaffirmed the definition of fair value already reflected in FASB Statement No. 157, which is the price that would be paid to sell an asset in an orderly transaction (as opposed to a distressed or forced transaction) at the measurement date under current market conditions. FSP FAS 157-4 also reaffirmed the need to use judgment to ascertain if a formerly active market has become inactive and in determining fair values when markets have become inactive. FSP FAS 157-4 became effective for the company for the period ended June 30, 2009. The application of FSP FAS 157-4 did not have a material impact on the Consolidated Financial Statements. See Note 2, “Fair Value of Assets and Liabilities,” and Note 12, “Consolidated Investment Products,” for additional details.

     FSP FAS 107-1 was issued to improve the fair value disclosures for any financial instruments that are not currently reflected on the balance sheets of companies at fair value. Prior to issuing FSP FAS 107-1, fair values of these assets and liabilities were only disclosed on an annual basis. FSP FAS 107-1 required these disclosures on a quarterly basis, providing qualitative and quantitative information about fair value estimates for all financial instruments not measured on the balance sheet at fair value. FSP FAS 107-1 became effective for the company for the period ended June 30, 2009, which required the company to make annual disclosures in its interim financial statements, which are included in Note 2, “Fair Value of Assets and Liabilities,” Note 3, “Investments,” and Note 7, “Debt.”

     FSP FAS 115-2 was intended to improve the consistency in the timing of impairment recognition and provide greater clarity to investors about the credit and noncredit components of impaired debt securities that are not expected to be sold. FSP FAS 115-2 required increased and more timely disclosures sought by investors regarding expected cash flows, credit losses, and an aging of

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securities with unrealized losses. The company adopted FSP FAS 115-2 on April 1, 2009. Upon adoption, the company recorded a cumulative effect adjustment of $1.5 million to the April 1, 2009, opening balance of retained earnings with a corresponding adjustment to accumulated other comprehensive income.

     In May 2009, the FASB issued Statement No. 165, “Subsequent Events” (FASB Statement No. 165). FASB Statement No. 165, which is now encompassed in ASC Topic 855, “Subsequent Events,” established general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. Specifically, FASB Statement No. 165 provided clarity around the period after the balance sheet date during which management of a reporting entity should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements, the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its financial statements, and the disclosure that an entity should make about events or transactions that occurred after the balance sheet date. FASB Statement No. 165 was effective for interim and annual financial reporting periods ending after June 15, 2009, and was applied prospectively. On February 24, 2010, the FASB issued Accounting Standards Update 2010-09, “Amendments to Certain Recognition and Disclosure Requirements” (ASU 2010-09). ASU 2010-09 amended the guidance on subsequent events to remove the requirement for Securities and Exchange Commission filers to disclose the date through which an entity has evaluated subsequent events.

     In June 2009, the FASB issued Statement No. 166, “Accounting for Transfers of Financial Assets — an amendment of FASB Statement No. 140,” (FASB Statement No. 166), which addresses the effects of eliminating the qualifying special-purpose entity concept from FASB Statement No. 140, “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities (FASB Statement No. 140), and will generally subject those entities to the consolidation guidance applied to other VIEs as provided by FASB Statement No. 167, “Amendments to FASB Interpretation No. 46(R)” (FASB Statement No. 167). FASB Statement No. 166 is now encompassed in ASC Topic 860. FASB Statement No. 167 is now encompassed in ASC Topic 810. Specifically, FASB Statement No. 166 introduces the concept of a participating interest, which will limit the circumstances where the transfer of a portion of a financial asset will qualify as a sale, assuming all other derecogntion criteria are met, and clarifies and amends the derecogntion criteria for determining whether a transfer qualifies for sale accounting. FASB Statement No. 166 will be applied prospectively to new transfers of financial assets occurring on or after January 1, 2010. The adoption of FASB Statement No. 166 did not have a material impact on the company’s Consolidated Financial Statements.

     In June 2009, the FASB issued Statement No. 167, which amends certain provisions of FIN 46(R). Specifically, FASB Statement No. 167 amends certain provisions for determining whether an entity is a VIE, it requires a qualitative rather than a quantitative analysis to determine whether the company is the primary beneficiary of a VIE, it amends FIN 46(R)’s consideration of related party relationships in the determination of the primary beneficiary of a VIE by providing an exception regarding de facto agency relationships in certain circumstances, it requires continuous assessments of whether the company is a VIE’s primary beneficiary, and it requires enhanced disclosures about the company’s involvement with VIEs, which are generally consistent with those disclosures required by FSP FAS 140-4 and FIN 46(R)-8 discussed above. In February 2010, the FASB issued ASU 2010-10, a deferral of the effective date of FASB Statement No. 167 for a reporting entity’s interests in certain investment funds which have attributes of investment companies, for which the reporting entity does not have an obligation to fund losses, and which are not structured as securitization entities. In addition, the deferral applies to a reporting entity’s interest in money market fund-type products. The company has determined that all of its managed funds with the exception of certain collateralized loan obligation products (CLOs) qualify for the deferral.

     FASB Statement No. 167, which was effective January 1, 2010, had a significant impact on the presentation of the company’s financial statements, as its provisions required the company to consolidate certain CLOs that were not previously consolidated. The cumulative effect adjustment upon adoption of FASB Statement No. 167 at January 1, 2010, resulted in an appropriation of retained earnings and a reclassification of other comprehensive income into retained earnings of $274.3 million and $5.2 million, respectively. The company’s Consolidated Statement of Income for the six months ended June 30, 2010, reflect the elimination of $17.6 million in management fees earned from these CLOs, and the addition of $105.6 million in interest income, $46.4 million in interest expense, and $243.2 million in net other gains. The $281.2 million net income impact during the six months ended June 30, 2010, of consolidation of these CLOs is largely offset by gains/(losses) attributable to investors in noncontrolling interests of $277.4 million. Prior to the adoption of FASB Statement No. 167, the company accounted for its investments in these CLOs as available-for-sale investments, with changes in the value of the company’s interests being recorded through other comprehensive income. After the adoption of FASB Statement No. 167, the change in value of the company’s investments in these CLOs is reflected in the company’s net income. For the six months ended June 30, 2010, the net impact to the company of its investments in these CLOs was $3.8 million. The Condensed Consolidated Balance Sheet at June 30, 2010, reflects the consolidation of $6.5 billion in assets held and $5.4 billion in debt issued by these CLOs, despite the fact that the assets cannot be used by the company, nor is the company obligated for the debt. Retained earnings appropriated for investors of consolidated investment products of $719.5 million is presented as part of the

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company’s total equity, reflecting the excess of the consolidated CLOs’ assets over their liabilities, attributable to noncontrolling third-party investors in their consolidated CLOs at June 30, 2010. In addition, the company’s Condensed Consolidated Cash Flow Statement for the six months ended June 30, 2010, reflects the cash flows of these CLOs. In accordance with the standard, prior periods have not been restated to reflect the consolidation of these CLOs.

     Upon adoption of FASB Statement No. 167, the assets and liabilities of the consolidated CLOs were measured at fair value, as the determination of the carrying amounts was not practicable. The company has elected the fair value option under ASC Topic 825-10-25 to measure the assets and liabilities of all consolidated CLOs at fair value subsequent to the date of initial adoption of FASB Statement No. 167, as the company has determined that measurement of the notes issued by consolidated CLOs at fair value better correlates with the value of the assets held by consolidated CLOs, which are held to provide the cash flows for the note obligations. See Note 12, “Consolidated Investment Products,” for a consolidating balance sheet at June 30, 2010.

     In July 2009, the FASB issued Statement No. 168, “The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles – A Replacement of FASB Statement No. 162,” (FASB Statement No. 168). FASB Statement No. 168 replaced the existing hierarchy of U.S. Generally Accepted Accounting Principles with the FASB ASC as the single source of authoritative U.S. accounting and reporting standards applicable for all nongovernmental entities, with the exception of guidance issued by the U.S. Securities and Exchange Commission and its staff. FASB Statement No. 168 is now encompassed in ASC Topic 105, “Generally Accepted Accounting Principles,” and was effective July 1, 2009. The company has replaced references to FASB accounting standards with ASC references, where applicable and relevant, in this Report.

     In August 2009, the FASB issued Accounting Standards Update 2009-05, “Fair Value Measurements and Disclosures (Topic 820) – Measuring Liabilities at Fair Value” (ASU 2009-05). ASU 2009-05 amends Topic 820 by providing additional guidance (including illustrative examples) clarifying the measurement of liabilities at fair value. When a quoted price in an active market for the identical liability is not available, the amendments in ASU 2009-05 require that the fair value of a liability be measured using one or more of the listed valuation techniques that should maximize the use of relevant observable inputs and minimize the use of unobservable inputs. In addition, the amendments in ASU 2009-05 clarify that when estimating the fair value of a liability, an entity is not required to include a separate input or adjustment to the other inputs relating to the existence of a restriction that prevents the transfer of the liability. The amendments also clarify how the price of a traded debt security (i.e., an asset value) should be considered in estimating the fair value of the issuer’s liability. The amendments in ASU 2009-05 became effective for the company on October 1, 2009. The company has made the required disclosures in Note 7, “Debt.”

     In September 2009, the FASB issued Accounting Standards Update 2009-12, “Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent)” (ASU 2009-12). ASU 2009-12 amends ASC Topic 820 to provide further guidance on how to measure the fair value of investments in alternative investments, such as hedge, private equity, real estate, venture capital, offshore and fund of funds. ASU 2009-12 permits, as a practical expedient, the measurement of fair value of an investment on the basis of the net asset value per share of the investment (or its equivalent) if the net asset value of the investment (or its equivalent) is calculated in a manner consistent with ASC Topic 946, “Financial Services — Investment Companies,” including measurement of all or substantially all of the fund’s underlying investments at fair value in accordance with ASC Topic 820. ASU 2009-12 is effective for interim and annual periods ending after December 15, 2009. The adoption of ASU 2009-12 did not have a material impact on the Consolidated Financial Statements.

     In January 2010, the FASB issued Accounting Standards Update 2010-06, “Improving Disclosures about Fair Value Measurements” (ASU 2010-06). ASU 2010-06 amends Topic 820 to require a number of additional disclosures regarding fair value measurements. Specifically, ASU 2010-06 requires entities to disclose: (1) the amount of significant transfers between Level 1 and Level 2 of the fair value hierarchy and the reasons for these transfers; (2) the reasons for any transfers in or out of Level 3; and (3) information in the reconciliation of recurring Level 3 measurements about purchases, sales, issuances and settlements on a gross basis. ASU 2010-06 also clarifies existing fair value disclosures about the appropriate level of disaggregation and about inputs and valuation techniques for both recurring and nonrecurring fair value measurements that fall in either Level 2 or Level 3. The new disclosures and clarifications of existing disclosures are effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosures about purchases, sales, issuances, and settlements in the rollforward of activity in Level 3 fair value measurements, which are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The company has made the required disclosures in Note 12, “Consolidated Investment Products.”

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2. FAIR VALUE OF ASSETS AND LIABILITIES

     The carrying value and fair value of financial instruments is presented in the below summary table. The fair value of financial instruments held by consolidated investment products is presented in Note 12, “Consolidated Investment Products.”

	June 30, 2010								December 31, 2009
	Footnote		Carrying						Carrying
$ in millions	Reference		Value			Fair Value			Value			Fair Value
Cash and cash equivalents				555.6			555.6			762.0			762.0
Available for sale investments		3		130.6			130.6			92.7			92.7
Assets held for policyholders				1,151.5			1,151.5			1,283.0			1,283.0
Trading investments		3		160.0			160.0			84.6			84.6
Support agreements		15		(2.5	)		(2.5	)		(2.5	)		(2.5	)
Policyholder payables				(1,151.5	)		(1,151.5	)		(1,283.0	)		(1,283.0	)
Financial instruments sold, not yet purchased				(0.2	)		(0.2	)		—			—
Derivative liabilities				(0.2	)		(0.2	)		—			—
Long-term debt		7		(1,395.7	)		(1,428.3	)		(745.7	)		(765.5	)

     A three-level valuation hierarchy exists for disclosure of fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:

• Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

• Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

• Level 3 — inputs to the valuation methodology are unobservable and significant to the fair value measurement.

     An asset or liability’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

     There are three types of valuation approaches: a market approach, which uses observable prices and other relevant information that is generated by market transactions involving identical or comparable assets or liabilities; an income approach, which uses valuation techniques to convert future amounts to a single, discounted present value amount; and a cost approach, which is based on the amount that currently would be required to replace the service capacity of an asset.

     The following is a description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy.

Cash equivalents

     Cash equivalents carried at fair value include cash investments in money market funds. Cash investments in money market funds are valued under the market approach through the use of quoted market prices in an active market, which is the net asset value of the underlying funds, and are classified within level 1 of the valuation hierarchy.

Available-for-sale investments

     Available-for-sale investments include amounts seeded into affiliated investment products and investments in affiliated unconsolidated CLOs. Seed money is valued under the market approach through the use of quoted market prices available in an active market and is classified within level 1 of the valuation hierarchy. Seed money investments are investments held in Invesco managed funds with the purpose of providing capital to the funds during their development periods. These investments are recorded at fair value using quoted market prices in active markets; there is no modeling or additional information needed to arrive at the fair values of these investments. CLOs are valued using an income approach through the use of certain observable and unobservable inputs. Due to current liquidity constraints within the market for CLO products that require the use of unobservable inputs, these investments are classified as level 3 within the valuation hierarchy.

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Assets held for policyholders

     Assets held for policyholders represent investments held by one of the company’s subsidiaries, which is an insurance entity that was established to facilitate retirement savings plans in the U.K. The assets held for policyholders are accounted for at fair value pursuant to ASC Topic 944, “Financial Services — Insurance,” and are comprised primarily of affiliated unitized funds. The assets are measured at fair value under the market approach based on the quoted prices of the underlying funds in an active market and are classified within level 1 of the valuation hierarchy. The policyholder liabilities are indexed to the value of the assets held for policyholders.

Trading investments

     Trading investments include investments held to economically hedge against costs the company incurs in connection with certain deferred compensation plans in which the company participates, as well as trading and investing activities in equity and debt securities entered into in its capacity as sponsor of unit investment trusts (UITs).

     Investments related to deferred compensation plans

     Investments related to deferred compensation plans are primarily invested in affiliated funds that are held to economically hedge current and non-current deferred compensation liabilities. Investments related to deferred compensation plans are valued under the market approach through the use of quoted prices in an active market and are classified within level 1 of the valuation hierarchy.

     UIT-related equity and debt securities

     At June 30, 2010, UIT-related equity and debt securities consisted of investments in corporate stock, UITs, U.S. state and political subdivisions. Each is discussed more fully below.

     Corporate stock

     The company temporarily holds investments in corporate stock for purposes of creating a UIT. Corporate stocks are valued under the market approach through use of quoted prices on an exchange. To the extent these securities are actively traded, valuation adjustments are not applied and they are categorized in Level 1 of the fair value hierarchy; otherwise, they are categorized in Level 2.

     UITs

     The company may hold units of its sponsored UITs at period-end for sale in the primary market or secondary market. Equity UITs are valued under the market approach through use of quoted prices on an exchange. Fixed income UITs are valued using recently executed transactions, market price quotations (where observable), bond spreads, or credit default swap spreads. The spread data used is for the same maturity as the underlying bond. If the spread data does not reference the issuer, then data that references a comparable issuer is used. When observable price quotations are not available, fair value is determined based on cash flow models with yield curves, bond or single name credit default spreads, and recovery rates based on collateral value as key inputs. Depending on the nature of the inputs, these investments are categorized as Level 1, 2, or 3.

     U.S. state and political subdivision securities

     U.S. state and political subdivision (collectively ‘municipals’) securities are valued using recently executed transactions, market price quotations (where observable), bond spreads, or credit default swap spreads. The spread data used is for the same maturity as the underlying bond. If the spread data does not reference the issuer, then data that references a comparable issuer is used. When observable price quotations are not available, fair value is determined based on cash flow models with yield curves, bond or single name credit default spreads, and recovery rates based on collateral value as key inputs. Depending on the nature of the inputs, these investments are categorized as Level 1, 2, or 3.

     UIT-related derivative contracts and hedging strategies

     The company uses U.S. Treasury futures, which are types of derivative financial instruments, to economically hedge fixed income UIT inventory and securities in order to mitigate market risk. Open futures contracts are marked to market daily through earnings, which is recorded in the company’s consolidated statement of income in other revenue, along with the mark-to-market on the underlying trading securities held. Fair values of derivative contracts in an asset position are included in other assets in the company’s consolidated statement of position. Fair values of derivative contracts in a liability position are included in other liabilities in the company’s consolidated statement of position. These derivative contracts are valued under the market approach through use of quoted prices in an active market and are classified within Level 1 of the valuation hierarchy. Additionally, to economically hedge the market risk associated with equity UITs temporarily held as trading investments, the company will hold short corporate equity or ETF positions. These transactions are recorded as financial instruments sold, not yet purchased, and are valued in the same manner as corporate stock.

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     The following table presents, for each of the hierarchy levels described above, the carrying value of the company’s assets and liabilities, including major security type for equity and debt securities, which are measured at fair value on the face of the statement of financial position as of June 30, 2010.

	As of June 30, 2010
				Quoted Prices in
				Active Markets for			Significant Other		Significant
	Fair Value			Identical Assets			Observable Inputs		Unobservable Inputs
$ in millions	Measurements			(Level 1)			(Level 2)		(Level 3)
Current assets:
Cash equivalents:
Money market funds		199.2			199.2			—		—
Investments:*
Available-for-sale:
Seed money		130.0			130.0			—		—
Trading investments:
Investments related to deferred compensation plans		143.3			143.3			—		—
UIT-related equity and debt securities
Corporate stock		1.5			1.5			—		—
UITs		2.0			2.0			—		—
U.S. state and political subdivisions securities		13.2			—			13.2		—
Assets held for policyholders		1,151.5			1,151.5			—		—
Total current assets		1,640.7			1,627.5			13.2		—
Non-current assets:
Investments — available-for-sale*:
CLOs**		0.6			—			—		0.6
Total assets at fair value		1,641.3			1,627.5			13.2		0.6
Current liabilities:
UIT-related financial instruments sold, not yet purchased:
Corporate equities		(0.2	)		(0.2	)		—		—
UIT-related derivative liabilities		(0.2	)		(0.2	)		—		—
Total liabilities at fair value		(0.4	)		(0.4	)		—		—

*	Current foreign time deposits of $23.5 million and other current investments of $0.5 million are excluded from this table. Other non-current equity and cost method investments of $142.6 million and $4.5 million, respectively, are also excluded from this table. These investments are not measured at fair value, in accordance with applicable accounting standards.
**	The company adopted FASB Statement No. 167, now encompassed in ASC Topic 810, “Consolidation,” on January 1, 2010, resulting in the consolidation of CLOs for which the company has an underlying investment of $21.8 million at June 30, 2010 (before consolidation). In accordance with the standard, prior periods have not been restated to reflect the consolidation of these CLOs.

15

     The following table presents, for each of the hierarchy levels described above, the carrying value of the company’s assets that are measured at fair value as of December 31, 2009:

	As of December 31, 2009
			Quoted Prices in
			Active Markets for		Significant Other		Significant
	Fair Value		Identical Assets		Observable Inputs		Unobservable Inputs
$ in millions	Measurements		(Level 1)		(Level 2)		(Level 3)
Current assets:
Cash equivalents:
Money market funds		498.6		498.6		—		—
Investments:*
Available-for-sale:
Seed money		74.8		74.8		—		—
Trading investments:
Investments related to deferred compensation plans		84.6		84.6		—		—
Assets held for policyholders		1,283.0		1,283.0		—		—
Total current assets		1,941.0		1,941.0		—		—
Non-current assets:
Investments — available-for-sale:
CLOs		17.9		—		—		17.9
Total assets at fair value		1,958.9		1,941.0		—		17.9

* Current foreign time deposits of $22.5 million and other current investments of $0.5 million are excluded from this table. Other non-current equity method and other investments of $134.7 million and $4.8 million, respectively, are also excluded from this table. These investments are not measured at fair value, in accordance with applicable accounting standards.

     The following table shows a reconciliation of the beginning and ending fair value measurements for level 3 assets during the three and six month periods ending June 30, 2010, which are comprised solely of CLOs, and are valued using significant unobservable inputs:

	Three months		Six months
	Ended June 30,		Ended June 30,
$ in millions	2010		2010
Beginning balance		0.4		17.9
Adoption of FASB Statement No. 167*		—		(17.4	)
Beginning balance, as adjusted		0.4		0.5
Net unrealized gains and losses included in accumulated other comprehensive income/(loss)**		0.2		0.1
Purchases and issuances		—		—
Other-than-temporary impairment included in other gains and losses, net		—		—
Return of capital		—		—
Ending balance		0.6		0.6

*

The company adopted FASB Statement No. 167, now encompassed in ASC Topic 810, “Consolidation,” on January 1, 2010, resulting in the consolidation of CLOs for which the company has an underlying investment of $21.8 million at June 30, 2010 (before consolidation). The adjustment of $17.4 million in the table above reflects the elimination of the company’s equity interest upon adoption. In accordance with the standard, prior periods have not been restated to reflect the consolidation of these CLOs.

**

Of these net unrealized gains and losses included in accumulated other comprehensive income/(loss), $0.2 million for the three months ended June 30, 2010 and $0.1 million for the six months ended June 30, 2010 are attributed to the change in unrealized gains and losses related to assets still held at June 30, 2010.

16

     The following table shows a reconciliation of the beginning and ending fair value measurements for level 3 assets during the three and six month periods ending June 30, 2009, which were comprised solely of CLOs (prior to the adoption of FASB Statement No. 167), and were valued using significant unobservable inputs:

	Three months			Six months
	Ended June 30,			Ended June 30,
$ in millions	2009			2009
Beginning balance		13.5			17.5
Net unrealized gains and losses included in accumulated other comprehensive income/(loss)*		0.8			0.9
Purchases and issuances		—			—
Other-than-temporary impairment included in other gains and losses, net		(0.8	)		(4.4	)
Return of capital		(0.1	)		(0.6	)
Ending balance		13.4			13.4

* Of these net unrealized gains and losses included in accumulated other comprehensive income/(loss), $0.8 million for the three months ended June 30, 2009, and $0.9 million for the six months ended June 30, 2009, are attributed to the change in unrealized gains and losses related to assets still held at June 30, 2009.

3. INVESTMENTS

     The disclosures below include details of the company’s investments. Investments held by consolidated investment products are detailed in Note 12, “Consolidated Investment Products.”

Current Investments

	As of
	June 30,		December 31,
$ in millions	2010		2009
Available-for-sale investments:
Seed money		130.0		74.8
Trading investments:
Investments related to deferred compensation plans		143.3		84.6
UIT-related equity and debt securities		16.7		—
Foreign time deposits		23.5		22.5
Other		0.5		0.5
Total current investments		314.0		182.4

Non-current Investments

	As of
	June 30,		December 31,
$ in millions	2010		2009
Available-for-sale investments:
CLOs		0.6		17.9
Equity method investments		142.6		134.7
Other		4.5		4.8
Total non-current investments		147.7		157.4

     The portion of trading gains and losses for the six months ended June 30, 2010, that relates to trading securities still held at June 30, 2010, was $6.6 million net loss.

17

     Realized gains and losses recognized in the income statement during the year from investments classified as available-for-sale are as follows:

For the Three months Ended June 30, 2010

For the Six months Ended June 30, 2010

Gross

Gross

Gross

Gross

Proceeds

Realized

Realized

Proceeds

Realized

Realized

$ in millions

from Sales

Gains

Losses

from Sales

Gains

Losses

Current available-for-sale investments

3.7

0.3

—

10.6

0.7

(0.5

)

Non-current available-for-sale investments

0.4

—

—

0.6

—

—

     Upon the sale of available-for-sale securities, net realized gains of $0.3 million and $0.2 million were transferred from accumulated other comprehensive income into the Condensed Consolidated Statements of Income during three and the six months ended June 30, 2010, respectively. The specific identification method is used to determine the realized gain or loss on securities sold or otherwise disposed.

     Gross unrealized holding gains and losses recognized in other accumulated comprehensive income from available-for-sale investments are presented in the table below:

	June 30, 2010									December 31, 2009
			Gross		Gross							Gross		Gross
			Unrealized		Unrealized							Unrealized		Unrealized
			Holding		Holding			Fair				Holding		Holding			Fair
$ in millions	Cost		Gains		Losses			Value		Cost		Gains		Losses			Value
Current:
Seed money		129.4		5.1		(4.5	)		130.0		74.7		5.9		(5.8	)		74.8
Current available-for-sale investments		129.4		5.1		(4.5	)		130.0		74.7		5.9		(5.8	)		74.8
Non-current:
CLOs*		0.3		0.3		—			0.6		12.6		5.3		—			17.9
Non-current available-for-sale investments:		0.3		0.3		—			0.6		12.6		5.3		—			17.9
		129.7		5.4		(4.5	)		130.6		87.3		11.2		(5.8	)		92.7

* The company adopted FASB Statement No. 167, now encompassed in ASC Topic 810, “Consolidation,” on January 1, 2010, resulting in the consolidation of CLOs for which the company has an underlying investment of $21.8 million at June 30, 2010 (before consolidation). In accordance with the standard, prior periods have not been restated to reflect the consolidation of these CLOs.

     Available-for-sale debt securities as of June 30, 2010, by maturity, are set out below:

	Available-for-Sale
$ in millions	(Fair Value)
Less than one year		—
One to five years		—
Five to ten years		0.6
Greater than ten years		—
Total available-for-sale		0.6

     The following table provides the breakdown of available-for-sale investments with unrealized losses at June 30, 2010:

Less Than 12 Months

12 Months or Greater

Total

Gross

Gross

Gross

Unrealized

Unrealized

Unrealized

$ in millions

Fair Value

Losses

Fair Value

Losses

Fair Value

Losses

Seed money (124 funds)

62.1

(4.0

)

7.1

(0.5

)

69.2

(4.5

)

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     The following table provides the breakdown of available-for-sale investments with unrealized losses at December 31, 2009:

Less Than 12 Months

12 Months or Greater

Total

Gross

Gross

Gross

Unrealized

Unrealized

Unrealized

$ in millions

Fair Value

Losses

Fair Value

Losses

Fair Value

Losses

Seed money (44 funds)

5.7

(0.3

)

25.1

(5.5

)

30.8

(5.8

)

     The company has reviewed investment securities for other-than-temporary impairment in accordance with its accounting policy and has recognized other-than-temporary impairment charges of $4.0 million and $6.1 million on seed money investments during the three and six months ended June 30, 2010, respectively, as discussed in Note 2, “Fair Value of Assets and Liabilities.”

     The gross unrealized losses of seed money investments at June 30, 2010, were primarily caused by declines in the market value of the underlying securities in the seeded funds and foreign exchange movements. After conducting a review of the financial condition and near-term prospects of the underlying securities in the seeded funds as well as the severity and duration of the impairment, the company does not consider any material portion of its gross unrealized losses on these securities to be other-than-temporarily impaired. The securities are expected to recover their value over time and the company has the intent and ability to hold the securities until this recovery occurs.

     As discussed in Note 1, “Accounting Policies,” the company adopted FSP FAS 115-2, now encompassed in ASC Topic 320, on April 1, 2009. Upon adoption, the company recorded a cumulative effect adjustment of $1.5 million to the April 1, 2009, opening balance of retained earnings with a corresponding adjustment to accumulated other comprehensive income, representing the non-credit component of previously-recognized other-than-temporary impairment (OTTI). During the six months ended June 30, 2010, there were no charges to other comprehensive income from other-than-temporary impairment related to non-credit related factors. A rollforward of the cumulative credit-related other-than-temporary impairment charges recognized in earnings for which some portion of the impairment was recorded in other comprehensive income is as follows:

	Three months ended		Six months ended
In millions	June 30, 2010		June 30, 2010
Beginning balance		0.8		18.8
Adoption of FASB Statement No. 167*		—		(18.0	)
Beginning balance, as adjusted		0.8		0.8
Additional credit losses recognized during the period related to securities for which:
No OTTI has been previously recognized		—		—
OTTI has been previously recognized		—		—
Ending balance		0.8		0.8

* The company adopted FASB Statement No. 167, now encompassed in ASC Topic 810, “Consolidation,” on January 1, 2010, resulting in the consolidation of CLOs for which the company has an underlying investment of $21.8 million at June 30, 2010 (before consolidation). Of the $18.8 million cumulative credit-related OTTI balance at January 1, 2010, $18.0 million relates to CLOs that were consolidated into the company’s Condensed Consolidated Balance Sheet, resulting in the elimination of our equity interest.

4. BUSINESS COMBINATION AND INTEGRATION

     On June 1, 2010, Invesco acquired from Morgan Stanley its retail asset management business, including Van Kampen Investments (the “acquired business” or the “acquisition”), in exchange for an aggregate of 30.9 million shares of common stock and participating preferred stock on an as converted basis and $770.0 million in cash.

     The acquired business brings in assets under management across the equity, fixed income and alternative asset classes (including mutual funds, variable insurance funds, separate accounts and unit investment trusts).

     Each participating preferred shares issued to Morgan Stanley is convertible into 1,000 common shares upon transfer by Morgan Stanley to an unrelated third party. The 30.9 million shares issued to Morgan Stanley include 11.7 million common shares and 19.2 million participating preferred shares as converted to common shares.

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     The transaction was accounted for under the acquisition method of accounting. Accordingly, the purchase price was allocated to the assets acquired and liabilities assumed based upon their estimated fair values at the date of the transaction. Substantially all of the $362.7 million excess of the purchase price over the fair value of assets acquired and liabilities and non-controlling interests assumed was recorded as nondeductible goodwill. The goodwill balance resulted primarily from an opening balance sheet net deferred tax liability of $307.8 million which reflects a carryover tax basis in certain assets that were acquired.

     The following table summarizes the initial estimate of amounts of identified assets acquired and liabilities assumed at the acquisition date, as well as the consideration transferred to acquire Morgan Stanley’s retail asset management business, including Van Kampen Investments.

$ in millions	Fair Value Estimate
ASSETS
Cash and cash equivalents		57.8
Cash of consolidated investment products		4.4
Investments		71.4
Investments of consolidated investment products		762.3
Receivables		81.1
Receivables of consolidated investment products		11.6
Property and equipment		3.2
Institutional relationships intangible		18.0
Sub-Advised relationships intangible		54.0
Fund management contracts intangible		1,047.0
Distribution relationships intangible		40.0
Distribution agreements intangible		17.0
Trademarks / Trade Names intangible		13.0
Goodwill		362.7
Other assets		18.8
Total assets		2,562.3
LIABILITIES AND APPROPRIATED EQUITY
Accruals and accounts payables		(135.6	)
Other current liabilities of consolidated investment products		(16.3	)
Deferred taxation, net		(307.8	)
Long-term debt of consolidated investment products		(630.2	)
Retained earnings appropriated for investors of consolidated investment products		(130.7	)
Total liabilities and appropriated equity		(1,220.6	)
Total identifiable net assets		1,341.7
Summary of consideration:
Cash paid		770.0
Payable to seller		2.5
Capital stock at fair value		569.2
Total cash and stock consideration		1,341.7

     The 30.9 million aggregate common shares and participating preferred shares as converted to common shares issued to Morgan Stanley had a total fair value of $567.8 million based on the company’s opening market price of $18.38 per share on June 1, 2010, the acquisition date. The vested portion of replacement employee share based awards had a fair value of $1.4 million.

     Operating revenues and net income of the acquired business from June 1 through June 30, 2010, were approximately $67.0 million and $11.2 million, respectively, which represents the incremental impact of the acquired business and does not represent the stand-alone results of the acquired business. Immediately following the acquisition date, the company commenced the integration of the acquired business with its pre-existing operations. The integration of the acquired business is largely complete as of the date of this Report; as such, the company does not expect to be able to disclose the amount of operating revenues and earnings generated by the acquired business for periods subsequent to June 30, 2010. The following unaudited proforma summary presents consolidated information of the Company as if the business combination had occurred on January 1, 2009, the earliest period presented herein. Transaction and integration expenses have been removed from the proforma information as they are deemed to be costs directly

20

attributable to the acquired business. These pro forma results are not indicative of the actual results of operations that would have been achieved nor are they indicative of future results of operations.

	For the three months ended June 30,
$ in millions	2010		2009
Operating Revenues		925.2		796.2
Net income		124.7		76.8

	For the six months ended June 30,
$ in millions	2010		2009
Operating Revenues		1,823.8		1,453.6
Net income		254.6		97.6

     During the three and six months ended June 30, 2010, the company incurred $79.3 million, and $96.5 million, respectively, of transaction and integration costs ($64.5 million and $79.8 million net of taxation, respectively). Transaction and integration costs include acquisition-related charges incurred during the period to effect a business combination, including legal, regulatory, advisory, valuation, and other professional or consulting fees, general and administrative costs, including travel costs related to the transaction and the costs of temporary staff involved in executing the transaction, and post-closing costs of integrating the acquired business into the company’s existing operations including incremental costs associated with achieving synergy savings. The following table presents acquisition-related and integration-related charges incurred during the period.

	For the three months ended		For the six months ended
$ in millions	June 30, 2010		June 30, 2010
Acquisition-related charges		4.4		5.4
Integration-related charges		74.9		91.1
Total transaction and integration charges(1)		79.3		96.5

(1) The company incurred $4.3 million of acquisition-related costs and $6.5 million of integration-related costs during 2009, which is not reflected in this table.

     Integration charges include costs associated with activities that do not represent ongoing costs of the fully integrated combined organization, such as severance and employee-related charges, costs associated with proxy solicitation to fund shareholders and other integration-related charges. The company expects to incur an additional $13.4 million of severance and employee-related charges and $54.3 million of additional integration-related charges during 2010 and 2011.

5. INTANGIBLE ASSETS

     The following table presents the major classes of the company’s finite-lived intangible assets at June 30, 2010, and December 31, 2009:

	Weighted Average
	Amortization		Gross Book		Accumulated			Net Book
	Period (years)		Value		Amortization			Value
$ in millions
June 30, 2010
Management contracts		8.7		174.5		(81.4	)		93.1
Customer relationships		12.0		40.0		(0.3	)		39.7
Distribution agreements		4.0		17.0		(0.4	)		16.6
Trademarks / Trade Names		2.0		13.0		(0.5	)		12.5
Other		5.0		3.1		(2.5	)		0.6
Total		8.6		247.6		(85.1	)		162.5
December 31, 2009
Management contracts		9.3		103.4		(75.8	)		27.6
Other		5.0		2.8		(1.9	)		0.9
Total		9.0		106.2		(77.7	)		28.5

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     Where evidence exists that the underlying management contracts are renewed annually at little or no cost to the company, the management contract intangible asset is assigned an indefinite life. The acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments, added $1,047.0 million of indefinite-lived intangible assets to the company’s Condensed Consolidated Balance Sheet at June 1, 2010, as discussed in Note 4, “Business Combination and Integration,” above. Indefinite-lived intangible assets, which total $1,160.3 million at June 30, 2010 (December 31, 2009: $110.6 million) primarily relate to fund management contracts acquired during the June 1, 2010 acquisition.

     Amortization expense was $5.2 million and $8.3 million, respectively, during the three and six months ended June 30, 2010 (three and six months ended June 30, 2009: $3.1 million and $6.3 million, respectively) and is included within General and Administrative expenses in the Condensed Consolidated Statements of Income. Estimated amortization expense for each of the five succeeding fiscal years based upon the company’s intangible assets at June 30, 2010, is as follows:

Years Ended June 30,
$ in millions
2011	33.7
2012	27.7
2013	20.6
2014	18.5
2015	12.4

6. GOODWILL

     The table below details changes in the goodwill balance:

	Gross Book			Accumulated			Net Book
$ in millions	Value			Impairment			Value
January 1, 2009		5,983.4			(16.6	)		5,966.8
Business combinations		34.2			—			34.2
Foreign exchange		466.6			—			466.6
December 31, 2009		6,484.2			(16.6	)		6,467.6
January 1, 2010		6,484.2			(16.6	)		6,467.6
Business combinations		388.5			—			388.5
Foreign exchange		(167.2	)		—			(167.2	)
June 30, 2010		6,705.5			(16.6	)		6,688.9

     The acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments, added $362.7 million of goodwill to the company’s Condensed Consolidated Balance Sheet at June 1, 2010, as discussed in Note 4, “Business Combination and Integration,” above. The April 3, 2010, earn-out calculation related to the 2006 acquisition of W.L. Ross & Co. resulted in an addition to goodwill and a non-interest bearing note payable to the sellers of $25.8 million, payable at the next measurement date, October 3, 2010 (2009 earn-out goodwill addition: $34.2 million). See Note 15, “Commitments and Contingencies,” for additional information.

22

7. DEBT

     The disclosures below include details of the company’s debt. Debt of consolidated investment products is detailed in Note 12, “Consolidated Investment Products.”

	June 30, 2010				December 31, 2009
	Carrying				Carrying
$ in millions	Value		Fair Value		Value		Fair Value
Unsecured Senior Notes*:
5.625% — due April 17, 2012		215.1		226.7		215.1		227.0
5.375% — due February 27, 2013		333.5		351.3		333.5		343.4
5.375% — due December 15, 2014		197.1		200.3		197.1		195.1
Floating rate credit facility terminated May 24, 2010		—		—		—		—
Floating rate credit facility expiring May 23, 2013		650.0		650.0		—		—
Total debt		1,395.7		1,428.3		745.7		765.5
Less: current maturities of total debt		—		—		—		—
Long-term debt		1,395.7		1,428.3		745.7		765.5

* The company’s Senior Note indentures contain certain restrictions on mergers or consolidations. Beyond these items, there are no other restrictive covenants in the indentures.

     The fair market value of the company’s total debt was determined by market quotes provided by Bloomberg. In the absence of an active market, the company relies upon the average price quoted by brokers for determining the fair market value of the debt. The level of trading, both in number of trades and amount of Notes traded, has increased to a level that the company believes market quotes to be a reasonable representation of the current fair market value of the Notes.

Analysis of Borrowings by Maturity:

$ in millions	June 30, 2010
2011		—
2012		215.1
2013		983.5
2014		197.1
Thereafter		—
Total debt		1,395.7

     On May 24, 2010, the company terminated its existing $500.0 million credit facility and entered into a new $1,250.0 million credit facility. Amounts borrowed under the credit facility are repayable at maturity on May 23, 2013,

     At June 30, 2010, the outstanding balance on the credit facility was $600.0 million and the weighted average interest rate on the credit facility was 1.73%. Borrowings under the credit facility will bear interest at (i) LIBOR for specified interest periods or (ii) a floating base rate (based upon the highest of (a) the Bank of America prime rate, (b) the Federal Funds rate plus 0.50% and (c) LIBOR for an interest period of one month plus 1.00%), plus, in either case, an applicable margin determined with reference to the company’s credit ratings and specified credit default spreads. Based on credit ratings as of June 30, 2010, of the company and such credit default spreads, the applicable margin for LIBOR-based loans was 1.075% and for base rate loans was 0.075%. In addition, the company is required to pay the lenders a facility fee on the aggregate commitments of the lenders (whether or not used) at a rate per annum which is based on the company’s credit ratings. Based on credit ratings as of June 30, 2010, the annual facility fee was equal to 0.30%.

     The credit agreement governing the credit facility contains customary restrictive covenants on the company and its subsidiaries. Restrictive covenants in the credit agreement include, but are not limited to: prohibitions on creating, incurring or assuming any liens; entering into certain restrictive merger arrangements; selling, leasing, transferring or otherwise disposing of assets; making a material change in the nature of the business; making material amendments to organic documents; making a significant accounting policy change in certain situations; entering into transactions with affiliates; incurring certain indebtedness through the non-guarantor subsidiaries. Many of these restrictions are subject to certain minimum thresholds and exceptions. Financial covenants under the credit agreement include: (i) the quarterly maintenance of a debt/EBITDA ratio, as defined in the credit agreement, of not greater than 3.25:1.00 through December 31, 2011, and not greater than 3.00:1.00 thereafter, (ii) a coverage ratio (EBITDA, as defined in the

23

credit agreement/interest payable for the four consecutive fiscal quarters ended before the date of determination) of not less than 4.00:1.00.

     The credit agreement governing the credit facility also contains customary provisions regarding events of default which could result in an acceleration or increase in amounts due, including (subject to certain materiality thresholds and grace periods) payment default, failure to comply with covenants, material inaccuracy of representation or warranty, bankruptcy or insolvency proceedings, change of control, certain judgments, ERISA matters, cross-default to other debt agreements, governmental action prohibiting or restricting the company or its subsidiaries in a manner that has a material adverse effect and failure of certain guaranty obligations.

     The lenders (and their respective affiliates) may have provided, and may in the future provide, investment banking, cash management, underwriting, lending, commercial banking, leasing, foreign exchange, trust or other advisory services to the company and its subsidiaries and affiliates. These parties may have received, and may in the future receive, customary compensation for these services.

8. SHARE CAPITAL

     Movements in the number of common shares and common share equivalents issued are represented in the table below:

	Six months Ended			Six months Ended
In millions	June 30, 2010			June 30, 2009
Common shares issued — beginning balance		459.5			426.6
Issue of new shares		11.7			32.9
Common shares issued — ending balance		471.2			459.5
Less: Treasury shares for which dividend and voting rights do not apply		(22.3	)		(32.7	)
Common shares outstanding		448.9			426.8
Participating preferred shares, on an as converted basis		19.2			—
Common shares and common share equivalents outstanding		468.1			426.8

     Total treasury shares at June 30, 2010, were 35.3 million (June 30, 2009: 45.7 million), including 13.0 million unvested restricted stock awards (June 30, 2009: 13.0 million) for which dividend and voting rights apply.

     Separately, an aggregate of 1.4 million shares were withheld on vesting events during the six months ended June 30, 2010, to meet employees’ withholding tax obligations (six months ended June 30, 2009: 1.1 million shares). The value of these shares withheld was $34.0 million (six months ended June 30, 2009: $12.3 million). Approximately $1.4 billion remained authorized under the company’s share repurchase plan at June 30, 2010.

     On June 1, 2010, Invesco acquired Morgan Stanley’s retail asset management business, including Van Kampen Investments. In connection with this transaction, Invesco issued to Morgan Stanley 19,212 shares of Series A convertible participating preferred stock (“participating preferred shares”). Each participating preferred share is convertible into 1,000 common shares upon transfer of the shares by Morgan Stanley to an unrelated third party. Each participating preferred share participates in dividends on a basis equal to common shares. The participating preferred shares are non-voting except as otherwise provided by applicable law and benefit from a liquidation preference of $0.01 per share.

9. OTHER COMPREHENSIVE INCOME

     The components of accumulated other comprehensive income, which includes our proportionate share of equity method investees’ accumulated other comprehensive income, were as follows:

	June 30,			December 31,
$ in millions	2010			2009
Net unrealized gains/(losses) on available-for-sale investments		6.2			5.4
Tax on unrealized losses/(gains) on available-for-sale investments		(1.4	)		(1.6	)
Cumulative foreign currency translation adjustments		255.9			442.0
Tax on cumulative foreign currency translation adjustments		2.0			2.0
Employee benefit plan liability adjustments		(67.5	)		(74.5	)
Tax on employee benefit plan liability adjustments		18.4			20.3
Total accumulated other comprehensive income		213.6			393.6

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     Total other comprehensive income details are presented below:

	Three months Ended						Six months Ended
	June 30,						June 30,
$ in millions	2010			2009			2010			2009
Net income/(loss), including gains and losses attributable to noncontrolling interests		238.2			28.2			452.7			(29.6	)
Adoption of FSP FAS 115-2		—			(1.5	)		—			(1.5	)
Unrealized holding gains and losses on available-for-sale investments*		(3.7	)		6.6			0.1			(2.3	)
Tax on net unrealized holding gains and losses on available-for-sale investments		0.5			(0.2	)		0.3			(1.2	)
Reclassification adjustments for net gains and losses on available-for-sale investments included in net income		3.7			0.5			5.9			5.4
Tax on reclassification adjustments for net gains and losses on available-for-sale investments included in net income		(0.1	)		—			(0.2	)		0.4
Foreign currency translation adjustments**		(96.7	)		391.6			(149.0	)		319.5
Tax on foreign currency translation adjustments		—			0.9			—			0.8
Adjustments to employee benefit plan liability		1.7			(3.9	)		7.0			(3.5	)
Tax on adjustments to pension liability		(0.3	)		2.2			(1.8	)		2.0
Total comprehensive income/(loss)		143.3			424.4			315.0			290.0

*

The company adopted FASB Statement No. 167, now encompassed in ASC Topic 810, “Consolidation,” on January 1, 2010, resulting in the consolidation of certain CLOs. Upon adoption, accumulated other comprehensive income was reduced by $5.2 million, as accumulated net unrealized gains at January 1, 2010, relating to the company’s investments in certain CLOs were reclassified into retained earnings upon their consolidation.

**

Included in this amount is $32.0 million and $37.1 million for the three and six months ended June 30, 2010, respectively, related to foreign currency translation adjustments attributable to consolidated investment products. Such amounts form part of the company’s total comprehensive income but are presented in retained earnings appropriated for investors in consolidated investment products rather than accumulated other comprehensive income.

10. TAXATION

     At June 30, 2010, the total amount of gross unrecognized tax benefits was $38.6 million as compared to the December 31, 2009, total amount of $39.0 million.

     The company and its subsidiaries file annual income tax returns in the United States (“U.S.”) federal jurisdiction, various U.S. state and local jurisdictions, and in numerous foreign jurisdictions. A number of years may elapse before an uncertain tax position, for which the company has unrecognized tax benefits, is finally resolved. To the extent that the company has favorable tax settlements, or determines that accrued amounts are no longer needed due to a lapse in the applicable statute of limitations or other reasons, such liabilities, as well as the related interest and penalty, would be reversed as a reduction of income tax expense (net of federal tax effects, if applicable) in the period such determination is made.

11. EARNINGS PER SHARE

     Basic earnings per share is calculated by dividing net income attributable to common shareholders by the weighted average number of shares outstanding during the periods, excluding treasury shares. Diluted earnings per share is computed using the treasury stock method, which requires computing share equivalents and dividing net income attributable to common shareholders by the total weighted average number of shares and share equivalents outstanding during the periods.

     On June 1, 2010, Invesco acquired Morgan Stanley’s retail asset management business, including Van Kampen Investments. In connection with this transaction, Invesco issued to Morgan Stanley 19,212 participating preferred shares. Each participating preferred share is convertible into 1,000 common shares upon transfer of the shares by Morgan Stanley to an unrelated third party. Each participating preferred share participates in dividends on a basis equal to common shares. Due to the similarities in terms between the company’s participating preferred shares and common shares, and the fact that the number of participating preferred shares outstanding and the dividends payable on participating preferred shares would not change the amount of basic or diluted EPS, the company considers the participating preferred shares to be common share equivalents. As such, the company has included the outstanding participating preferred shares, as converted to common shares, in the calculation of average basic and diluted shares outstanding for the three and six months ended June 30, 2010.

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     The calculation of earnings per share is as follows:

	Net Income
	Attributable to
	Common		Weighted Average		Per Share
In millions, except per share data	Shareholders		Number of Shares		Amount
For the three months ended June 30, 2010
Basic earnings per share	$	40.8		455.0	$	0.09
Dilutive effect of share-based awards		—		2.8		—
Diluted earnings per share	$	40.8		457.8	$	0.09
For the three months ended June 30, 2009
Basic earnings per share	$	75.7		410.6	$	0.18
Dilutive effect of share-based awards		—		6.2		—
Diluted earnings per share	$	75.7		416.8	$	0.18

	Net Income
	Attributable to
	Common		Weighted Average		Per Share
In millions, except per share data	Shareholders		Number of Shares		Amount
For the six months ended June 30, 2010
Basic earnings per share	$	135.8		447.0	$	0.30
Dilutive effect of share-based awards		—		3.1		—
Diluted earnings per share	$	135.8		450.1	$	0.30
For the six months ended June 30, 2009
Basic earnings per share	$	106.4		401.3	$	0.26
Dilutive effect of share-based awards		—		6.2		—
Diluted earnings per share	$	106.4		407.5	$	0.26

     See Note 13, “Share-based Compensation,” for a summary of share awards outstanding under the company’s share-based payment programs. These programs could result in the issuance of common shares that would affect the measurement of basic and diluted earnings per share.

     Options to purchase 9.2 million shares at a weighted average exercise price of 2,053 pence were outstanding for the six months ended June 30, 2010 (six months ended June 30, 2009: 13.2 million share options at a weighted average exercise price of 1,845 pence), but were not included in the computation of diluted earnings per share because the option’s exercise price was greater than the average market price of the shares and therefore their inclusion would have been anti-dilutive.

     There were no contingently issuable shares excluded from the diluted earnings per share computation for the six months ended June 30, 2010 (six months ended June 30, 2009: 1.6 million contingently issuable shares), because the necessary performance conditions for the shares to be issuable had not yet been satisfied at the end of the respective period. There were no contingently issuable shares that were excluded from the computation of diluted earnings per share during the six months ended June 30, 2010 and 2009, due to their inclusion being anti-dilutive.

12. CONSOLIDATED INVESTMENT PRODUCTS

     The company provides investment management services to, and has transactions with, various private equity funds, real estate funds, fund-of-funds, CLOs and other investment entities sponsored by the company for the investment of client assets in the normal course of business. The company serves as the investment manager, making day-to-day investment decisions concerning the assets of the products and generally has a small investment in certain of these products to demonstrate “skin in the game” to other potential unaffiliated investors in these products. Certain of these investments are considered to be variable interest entities (VIEs). If the company is the primary beneficiary of the VIEs, then the investment products are consolidated into the company’s financial statements. Other partnership entities are consolidated under a voting interest entity (VOE) model where the company is the general partner and is presumed to have control, in the absence of simple majority kick-out rights to remove the general partner, simple majority liquidation rights to dissolve the partnership, or any substantive participating rights of the other limited partners.

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     The company’s risk with respect to each investment is limited to its equity ownership and any uncollected management fees. Therefore, the gains or losses of consolidated investment products have not had a significant impact on the company’s results of operations, liquidity or capital resources. The company has no right to the benefits from, nor does it bear the risks associated with, these investments, beyond the company’s minimal direct investments in, and management fees generated from, the investment products. If the company were to liquidate, these investments would not be available to the general creditors of the company, and as a result, the company does not consider investments held by consolidated investment products to be company assets.

     CLOs

     For CLO entities, as discussed in Note 1, “Accounting Policies,” and Note 2, “Fair Value of Assets and Liabilities,” the company generally invests in a portion of the unrated, junior subordinated positions. The company’s investments in CLOs are generally subordinated to other interests in the entities and entitle the company and other subordinated tranche investors to receive the residual cash flows, if any, from the entities. The company’s underlying investments in the CLOs of $22.4 million (before consolidation) at June 30, 2010 (December 31, 2009: $17.9 million) represent its maximum risk of loss.

     Prior to the adoption of FASB Statement No. 167, now encompassed in ASC Topic 810, “Consolidation” (discussed in Note 1, “Accounting Policies”), the company’s ownership interests, which were classified as available-for-sale investments on the company’s Consolidated Balance Sheets, combined with its other interests (management and incentive fees), were quantitatively assessed to determine if the company is the primary beneficiary of these entities. The company determined, for periods prior to the adoption of FASB Statement No. 167, that it did not absorb the majority of the expected gains or losses from the CLOs and therefore was not their primary beneficiary.

     Effective January 1, 2010, upon the adoption of FASB Statement No. 167, the company determined that it was the primary beneficiary of certain CLOs, as it has the power to direct the activities of the CLOs that most significantly impact the CLOs’ economic performance, and the obligation to absorb losses/right to receive benefits from the CLOs that could potentially be significant to the CLOs. The primary beneficiary assessment includes an analysis of the rights of the company in its capacity as investment manager. In certain CLOs, the company’s role as investment manager provides that the company contractually has the power, as defined in FASB Statement No. 167, to direct the activities of the CLOs that most significantly impact the CLOs’ economic performance, such as managing the collateral portfolio and its credit risk. In other CLOs, the company determined that it does not have this power in its role as investment manager due to certain restrictions that limit its ability to manage the collateral portfolio and its credit risk. Additionally, the primary beneficiary assessment includes an analysis of the company’s rights to receive benefits and obligation to absorb losses associated with its first loss position and management/incentive fees. As part of this analysis, the company uses a quantitative model to corroborate its qualitative assessments. The quantitative model includes an analysis of the expected performance of the CLOs and a comparison of the company’s absorption of this performance relative to the other investors in the CLOs. The company has determined that it could receive significant benefits and/or absorb significant losses from certain CLOs in which it holds a first loss position and has the right to significant fees. It was determined that the company’s benefits and losses from certain other CLOs could not be significant, particularly in situations where the company does not hold a first loss position and where the fee interests are based upon a fixed percentage of collateral asset value.

     The company generally invests in only a portion of the unrated, junior subordinated positions. This subordinated interest can take the form of (1) subordinated notes, (2) income notes or (3) preference/preferred shares. The company has determined that, although the junior tranches have certain characteristics of equity, they should be accounted for and disclosed as debt on the company’s Condensed Consolidated Balance Sheet, as the subordinated and income notes have a stated maturity indicating a date for which they are mandatorily redeemable. The preference shares are also classified as debt, as redemption is required only upon liquidation or termination of the CLO and not of the company.

     The collateral assets of the CLOs are held solely to satisfy the obligations of the CLOs. The company has no right to the benefits from, nor does it bear the risks associated with, the collateral assets held by the CLOs, beyond the company’s minimal direct investments in, and management fees generated from, the CLOs. If the company were to liquidate, the collateral assets would not be available to the general creditors of the company. Additionally, the investors in the CLOs have no recourse to the general credit of the company for the notes issued by the CLOs.

     Private equity, real estate and fund-of-funds (partnerships)

     For investment products that are structured as partnerships and are determined to be VIEs, including private equity funds, real estate funds and fund-of-funds products, the company evaluates the structure of the partnership to determine if it is the primary beneficiary of the investment product. This evaluation includes assessing the rights of the limited partners to transfer their economic interests in the investment product. If the limited partners lack objective rights to transfer their economic interests, they are considered

27

to be de facto agents of the company, resulting in the company determining that it is the primary beneficiary of the investment product. The company generally takes less than a 1% investment in these entities as the general partner. Interests in unconsolidated private equity funds, real estate funds and fund-of-funds products are classified as equity method investments in the company’s Consolidated Balance Sheets.

     On July 8, 2009, the U.S. Treasury announced the launch of the Public-Private Investment Program (PPIP), which was designed to support market functioning and facilitate price discovery in the asset-based securities markets, to allow banks and other financial institutions to re-deploy capital, and to extend new credit to households and businesses. Under this program, the U.S. Treasury will invest up to $30.0 billion of equity and debt into funds established with private sector investment managers and private investors for the purpose of purchasing legacy securities. The U.S. Treasury has partnered with eight investment management firms, including Invesco, in the PPIP. The company determined that certain feeder funds within the Invesco-sponsored PPIP partnership structure are VIEs; however, the company is not their primary beneficiary, as it does not absorb the majority of the expected gains or losses from these funds. Additionally, the company does not have any capital invested or committed into these funds. Other funds within the PPIP structure are VOEs; however, the company as general partner is not deemed to control these entities due to the presence of substantive kick-out or liquidation rights.

     Other investment products

     As discussed in Note 15, “Commitments and Contingencies,” the company has entered into contingent support agreements for two of its investment trusts to enable them to sustain a stable pricing structure, creating variable interests in these VIEs. The company earns management fees from the trusts and has a small investment in one of these trusts. The company was not deemed to be the primary beneficiary of these trusts after considering any explicit and implicit variable interests in relation to the total expected gains and losses of the trusts. The maximum committed amount under the support agreements, which represents the company’s maximum risk of loss, is equivalent to the amount of support that the trusts required as of June 30, 2010, to maintain the net asset value of the trusts at $1.00 per share. The recorded fair value of the guarantees related to these agreements at June 30, 2010, was estimated to be $2.5 million (December 31, 2009: $2.5 million), which was recorded as a guarantee obligation in other current liabilities in the Consolidated Balance Sheet. The fair value of these agreements is lower than the maximum support amount reflecting management’s estimation that the likelihood of funding under the support agreement is low, as significant investor redemptions out of the trusts before the scheduled maturity of the underlying securities or significant credit default issues of the securities held within the trusts’ portfolios would be required to trigger funding by the company.

     In June 2009, the company invested in the initial public offering of Invesco Mortgage Capital Inc. (NYSE: IVR), a real estate investment trust which is managed by the company. The company purchased 75,000 common shares of IVR at $20.00 per share and 1,425,000 limited partner units at $20.00 per unit through private placements for a total of $30.0 million. The company determined that IVR is a VIE and that its investment represents a variable interest. The company’s ownership interests, which are classified as equity method investments on the company’s Consolidated Balance Sheets, combined with its other interests (management fees), were quantitatively assessed to determine if the company is the primary beneficiary of IVR. The company determined that it did not absorb the majority of the expected gains or losses from IVR and therefore is not its primary beneficiary.

     At June 30, 2010, the company’s maximum risk of loss in significant VIEs in which the company is not the primary beneficiary is presented in the table below.

						Company’s Maximum
$ in millions	Footnote Reference		Carrying Value			Risk of Loss
CLO investments		2		0.6			0.6
Partnership and trust investments		—		17.0			17.0
Investments in Invesco Mortgage Capital Inc.		—		31.3			31.3
Support agreements*		12		(2.5	)		36.0
Total							84.9

* As of June 30, 2010, the committed support under these agreements was $36.0 million with an internal approval mechanism to increase the maximum possible support to $66.0 million at the option of the company.

     FASB Statement No. 167, which was effective January 1, 2010, had a significant impact on the presentation of the company’s financial statements, as its provisions required the company to consolidate certain CLOs that were not previously consolidated. The cumulative effect adjustment upon adoption of FASB Statement No. 167 at January 1, 2010, resulted in an appropriation of retained earnings and a reclassification of other comprehensive income into retained earnings of $274.3 million and $5.2 million, respectively.

28

The company’s Consolidated Statement of Income for the six months ended June 30, 2010, reflect the elimination of $17.6 million in management fees earned from these CLOs, and the addition of $105.6 million in interest income, $46.4 million in interest expense, and $243.2 million in net other gains. The $281.2 million net income impact during the six months ended June 30, 2010, of consolidation of these CLOs is largely offset by gains/(losses) attributable to investors in noncontrolling interests of $277.4 million. Prior to the adoption of FASB Statement No. 167, the company accounted for its investments in these CLOs as available-for-sale investments, with changes in the value of the company’s interests being recorded through other comprehensive income. After the adoption of FASB Statement No. 167, the change in value of the company’s investments in these CLOs is reflected in the company’s net income. For the six months ended June 30, 2010, the net impact to the company of its investments in these CLOs was $3.8 million. The Condensed Consolidated Balance Sheet at June 30, 2010, reflects the consolidation of $6.5 billion in assets held and $5.4 billion in debt issued by these CLOs, despite the fact that the assets cannot be used by the company, nor is the company obligated for the debt. Retained earnings appropriated for investors of consolidated investment products of $719.5 million is presented as part of the company’s total equity, reflecting the excess of the consolidated CLOs’ assets over their liabilities, attributable to noncontrolling third-party investors in their consolidated CLOs at June 30, 2010. In accordance with the standard, prior periods have not been restated to reflect the consolidation of these CLOs.

During the six months ended June 30, 2010, entities with the following balance sheets were consolidated:

Balance Sheet

	VIEs
$ in millions	consolidated
During the six months ended June 30, 2010*
Current assets		254.6
Non-current assets		6,188.1
Total assets		6,442.7
Current liabilities		154.2
Non-current liabilities		5,883.4
Total liabilities		6,037.6
Total equity		405.1
Total liabilities and equity		6,442.7

* The amounts consolidated in this table reflect the initial consolidation of CLOs at the adoption of FASB Statement No. 167 on January 1, 2010 as well as the initial consolidation of certain CLOs acquired in the June 1, 2010, acquisition.

     During the six months ended June 30, 2009, the company deconsolidated $53.3 million of investments held by consolidated investment products and related noncontrolling interests in consolidated entities as a result of determining that the company is no longer the primary beneficiary. The amounts deconsolidated from the Condensed Consolidated Balance Sheet are illustrated in the table below. There was no net impact to the Condensed Consolidated Statement of Income for the six months ended June 30, 2009, from the deconsolidation of these investment products.

Balance Sheet

	Amounts
	deconsolidated
$ in millions	under FIN 46(R)
During six months ended June 30, 2009
Current assets		—
Non-current assets		53.3
Total assets		53.3
Current liabilities		—
Non-current liabilities		—
Total liabilities		—
Equity attributable to common shareholders		—
Equity attributable to noncontrolling interests in consolidated entities		53.3
Total liabilities and equity		53.3

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     The following tables reflect the impact of consolidation of investment products into the Condensed Consolidated Balance Sheets as of June 30, 2010, and December 31, 2009, and the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2010, and 2009.

Condensed Consolidating Balance Sheets

	Before				Other
$ in millions	Consolidation*		CLOs - VIEs **		VIEs		VOEs		Eliminations			Total
As of June 30, 2010
Current assets		3,255.7		382.6		4.6		34.6		(19.5	)		3,658.0
Non-current assets		8,492.8		6,107.3		64.6		616.5		(35.3	)		15,245.9
Total assets		11,748.5		6,489.9		69.2		651.1		(54.8	)		18,903.9
Current liabilities		2,450.2		340.4		0.7		3.2		(19.5	)		2,775.0
Long-term debt of consolidated investment products		—		5,426.2		—		—		(21.8	)		5,404.4
Other non-current liabilities		1,904.4		—		—		—					1,904.4
Total liabilities		4,354.6		5,766.6		0.7		3.2		(41.3	)		10,083.8
Retained earnings attributable to investors in consolidated investment products		—		723.3		—		—		(3.8	)		719.5
Other equity attributable to common shareholders		7,389.4		—		0.2		9.5		(9.7	)		7,389.4
Equity attributable to noncontrolling interests in consolidated entities		4.5		—		68.3		638.4		—			711.2
Total liabilities and equity		11,748.5		6,489.9		69.2		651.1		(54.8	)		18,903.9

	Before		Other
$ in millions	Consolidation*		VIEs		VOEs		Eliminations			Total
As of December 31, 2009
Current assets		3,089.8		4.2		27.0		—			3,121.0
Non-current assets		7,111.8		67.9		617.1		(8.2	)		7,788.6
Total assets		10,201.6		72.1		644.1		(8.2	)		10,909.6
Current liabilities		2,293.6		0.7		4.1		—			2,298.4
Non-current liabilities		990.4		—		—		—			990.4
Total liabilities		3,284.0		0.7		4.1		—			3,288.8
Total equity attributable to common shareholders		6,912.9		0.2		8.0		(8.2	)		6,912.9
Equity attributable to noncontrolling interests in consolidated entities		4.7		71.2		632.0		—			707.9
Total liabilities and equity		10,201.6		72.1		644.1		(8.2	)		10,909.6

*	The Before Consolidation column includes Invesco’s equity interest in the investment products subsequently consolidated, accounted for as equity method and available-for-sale investments.
**	The company adopted FASB Statement No. 167 on January 1, 2010, resulting in the consolidation of certain CLOs. In accordance with the standard, prior periods have not been restated to reflect the consolidation of these CLOs. Prior to January 1, 2010, the company was not deemed to be the primary beneficiary of these CLOs.

30

Condensed Consolidating Statements of Income

	Before						Other
$ in millions	Consolidation*			CLOs - VIEs **			VIEs			VOEs			Eliminations			Total
Three months ended June 30, 2010
Total operating revenues		799.3			—			—			—			(12.3	)		787.0
Total operating expenses		712.9			10.2			0.6			4.2			(12.3	)		715.6
Operating income		86.4			(10.2	)		(0.6	)		(4.2	)		—			71.4
Equity in earnings of unconsolidated affiliates		10.6			—			—			—			(0.2	)		10.4
Interest income		1.8			54.3			—			—			(1.2	)		54.9
Other investment income/(losses)		(9.3	)		158.1			1.3			27.8			—			177.9
Interest expense		(14.1	)		(26.8	)		—			—			1.2			(39.7	)
Income before income taxes, including gains and losses attributable to noncontrolling interests		75.4			175.4			0.7			23.6			(0.2	)		274.9
Income tax provision		(36.7	)		—			—			—			—			(36.7	)
Net income, including gains and losses attributable to noncontrolling interests		38.7			175.4			0.7			23.6			(0.2	)		238.2
(Gains)/losses attributable to noncontrolling interests in consolidated entities, net		(0.1	)		(173.0	)		(0.7	)		(23.6	)		—			(197.4	)
Net income attributable to common shareholders		38.6			2.4			—			—			(0.2	)		40.8

	Before
$ in millions	Consolidation*			VIEs			VOEs			Eliminations			Total
Three months ended June 30, 2009
Total operating revenues		625.3			0.1			0.7			(1.0	)		625.1
Total operating expenses		514.6			0.5			0.6			(1.0	)		514.7
Operating income		110.7			(0.4	)		0.1			—			110.4
Equity in earnings of unconsolidated affiliates		6.5			—			—			1.0			7.5
Interest income		1.2			—			—			—			1.2
Other investment income/(losses)		10.0			(1.8	)		(46.6	)		—			(38.4	)
Interest expense		(16.5	)		—			—			—			(16.5	)
Income before income taxes, including gains and losses attributable to noncontrolling interests		111.9			(2.2	)		(46.5	)		1.0			64.2
Income tax provision		(36.0	)		—			—			—			(36.0	)
Net income/(loss), including gains and losses attributable to noncontrolling interests		75.9			(2.2	)		(46.5	)		1.0			28.2
(Gains)/losses attributable to noncontrolling interests in consolidated entities, net		(0.2	)		2.2			45.5			—			47.5
Net income attributable to common shareholders		75.7			—			(1.0	)		1.0			75.7

*	The Before Consolidation column includes Invesco’s equity interest in the investment products, accounted for as equity method and available-for-sale investments.
**	The company adopted FASB Statement No. 167 on January 1, 2010, resulting in the consolidation of certain CLOs In accordance with the standard, prior periods have not been restated to reflect the consolidation of these CLOs. Prior to January 1, 2010, the company was not deemed to be the primary beneficiary of these CLOs.

31

	Before						Other
$ in millions	Consolidation*			CLOs - VIEs **			VIEs			VOEs			Eliminations			Total
Six months ended June 30, 2010
Total operating revenues		1,528.8			—			—			0.2			(22.9	)		1,506.1
Total operating expenses		1,291.9			21.2			1.0			6.6			(22.9	)		1,297.8
Operating income		236.9			(21.2	)		(1.0	)		(6.4	)		—			208.3
Equity in earnings of unconsolidated affiliates		16.6			—			—			—			(0.4	)		16.2
Interest income		3.4			107.4			—			—			(1.8	)		109.0
Other investment income/(losses)		(11.4	)		243.2			4.5			42.6			—			278.9
Interest expense		(26.5	)		(48.2	)		—			—			1.8			(72.9	)
Income before income taxes, including gains and losses attributable to noncontrolling interests		219.0			281.2			3.5			36.2			(0.4	)		539.5
Income tax provision		(86.8	)		—			—			—			—			(86.8	)
Net income, including gains and losses attributable to noncontrolling interests		132.2			281.2			3.5			36.2			(0.4	)		452.7
(Gains)/losses attributable to noncontrolling interests in consolidated entities, net		(0.2	)		(277.4	)		(3.5	)		(35.8	)		—			(316.9	)
Net income attributable to common shareholders		132.0			3.8			—			0.4			(0.4	)		135.8

	Before
$ in millions	Consolidation*			VIEs			VOEs			Eliminations			Total
Six months ended June 30, 2009
Total operating revenues		1,175.5			0.3			1.9			(4.0	)		1,173.7
Total operating expenses		999.7			1.0			4.8			(4.0	)		1,001.5
Operating income		175.8			(0.7	)		(2.9	)		—			172.2
Equity in earnings of unconsolidated affiliates		7.9			—			—			2.1			10.0
Interest income		6.0			—			—			—			6.0
Other investment income/(losses)		5.8			(16.5	)		(118.4	)		—			(129.1	)
Interest expense		(32.4	)		—			—			—			(32.4	)
Income before income taxes, including gains and losses attributable to noncontrolling interests		163.1			(17.2	)		(121.3	)		2.1			26.7
Income tax provision		(56.3	)		—			—			—			(56.3	)
Net income/(loss), including gains and losses attributable to noncontrolling interests		106.8			(17.2	)		(121.3	)		2.1			(29.6	)
(Gains)/losses attributable to noncontrolling interests in consolidated entities, net		(0.3	)		17.2			119.1			—			136.0
Net income attributable to common shareholders		106.5			—			(2.2	)		2.1			106.4

*	The Before Consolidation column includes Invesco’s equity interest in the investment products, accounted for as equity method and available-for-sale investments.
**	The company adopted FASB Statement No. 167 on January 1, 2010, resulting in the consolidation of certain CLOs In accordance with the standard, prior periods have not been restated to reflect the consolidation of these CLOs. Prior to January 1, 2010, the company was not deemed to be the primary beneficiary of these CLOs.

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     The carrying value of investments held and notes issued by consolidated investment products is also their fair value. The following table presents the fair value hierarchy levels of investments held and notes issued by consolidated investment products, which are measured at fair value as of June 30, 2010:

	As of June 30, 2010
				Quoted Prices in		Significant
				Active Markets		Other		Significant
	Fair Value			for Identical		Observable		Unobservable
$ in millions	Measurements			Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)
Assets:
CLO collateral assets:
Bank loans		5,780.8			—		5,780.8		—
Bonds		250.8			250.8		—		—
Equity securities		75.7			75.7		—		—
Private equity fund assets:
Equity securities		117.1			8.0		—		109.1
Investments in other private equity funds		553.6			—		—		553.6
Debt securities issued by in U.S. Treasury		10.5			10.5		—		—
Liabilities:
CLO notes		(5,404.4	)		—		—		(5,404.4	)

     The following table presents the fair value hierarchy levels of the carrying value of investments held by consolidated investment products, which are measured at fair value as of December 31, 2009:

	As of December 31, 2009
			Quoted Prices in		Significant
			Active Markets		Other		Significant
	Fair Value		for Identical		Observable		Unobservable
$ in millions	Measurements		Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)
Private equity fund assets:
Equity securities		117.2		7.0		—		110.2
Investments in other private equity funds		556.9		—		—		556.9
Debt securities issued by U.S. Treasury		10.9		10.9		—		—

     The following table shows a reconciliation of the beginning and ending fair value measurements for level 3 assets using significant unobservable inputs:

	Three months			Three months			Six months Ended			Six months Ended
$ in millions	Ended June 30, 2010			Ended June 30, 2009			June 30, 2010			June 30, 2009
Beginning balance		665.5			674.7			667.1			761.0
Purchases, sales, issuances and settlements, net		(30.1	)		4.1			(47.3	)		6.2
Gains and losses included in the Condensed Consolidated Statement of Income*		27.3			(46.4	)		42.9			(134.8	)
Ending balance		662.7			632.4			662.7			632.4

* Included in gains and losses of consolidated investment products in the Condensed Consolidated Statement of Income for the three and six months ended June 30, 2010, are $23.5 million and $42.1 million, respectively, in net unrealized gains attributable to investments held at June 30, 2010, by consolidated investment products (three and six months ended June 30, 2009: $38.3 million and $125.3 million, respectively, attributable to investments still held at June 30, 2009).

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     The following table shows a reconciliation of the beginning and ending fair value measurements for level 3 liabilities using significant unobservable inputs:

	Three months
	Ended June 30,			Six months Ended
$ in millions	2010*			June 30, 2010*
Beginning balance		(5,119.1	)		(5,234.9	)
Purchases, sales, issuances and settlements/prepayments, net		55.0			102.4
Acquisition of business		(630.2	)		(630.2	)
Gains and losses included in the Condensed Consolidated Statement of Income		119.0			55.9
Foreign exchange		170.9			302.4
Ending balance		(5,404.4	)		(5,404.4	)

* The company adopted FASB Statement No. 167 on January 1, 2010, resulting in the consolidation of certain CLOs. In accordance with the standard, prior periods have not been restated to reflect the consolidation of these CLOs. Prior to January 1, 2010, the company was not deemed to be the primary beneficiary of these CLOs.

     Fair value of consolidated CLOs

     The collateral assets held by consolidated CLOs are primarily invested in senior secured bank loans, bonds, and equity securities. Bank loan investments, which comprise the majority of consolidated CLO portfolio collateral, are senior secured corporate loans from a variety of industries, including but not limited to the aerospace and defense, broadcasting, technology, utilities, household products, healthcare, oil and gas, and finance industries. Bank loan investments mature at various dates between 2010 and 2018, pay interest at Libor or Euribor plus a spread of between 0.25% and 11%, and typically range in credit rating categories from BBB down to unrated. At June 30, 2010, the unpaid principal balance exceeded the fair value of the senior secured bank loans and bonds by approximately $345 million. Less than 3% of the collateral assets are in default as of June 30, 2010. CLO investments are valued based on price quotations provided by an independent third-party pricing source. For bank loan investments, in the event that the third-party pricing source is unable to price an investment, other relevant factors, data and information are considered, including: i) information relating to the market for the investment, including price quotations for and trading in the investment and interest in similar investments and the market environment and investor attitudes towards the investment and interests in similar investments; ii) the characteristics of and fundamental analytical data relating to the investment, including, for senior secured corporate loans, the cost, size, current interest rate, period until next interest rate reset, maturity and base lending rate, the terms and conditions of the senior secured corporate loan and any related agreements, and the position of the senior secured corporate loan in the borrower’s debt structure; iii) the nature, adequacy and value of the senior secured corporate loan’s collateral, including the CLO’s rights, remedies and interests with respect to the collateral; iv) for senior secured corporate loans, the creditworthiness of the borrower, based on an evaluation of its financial condition, financial statements and information about the business, cash flows, capital structure and future prospects; v) the reputation and financial condition of the agent and any intermediate participants in the senior secured corporate loan; and vi) general economic and market conditions affecting the fair value of the senior secured corporate loan.

     In a typical CLO structure, notes are issued in tranches and are categorized into varying degrees of subordination. Each tranche has a different level of credit protection or risk exposure than another. There is generally a senior (“A”) class of securities and one or more junior subordinated (“B,” “C,” etc.) classes that function as protective layers for the “A” class. The senior classes have first claim on the cash that the CLO receives, and the more junior classes receive repayment only after the more senior classes have repaid. Because of the cascading effect between classes, this arrangement is often referred to as a cash flow waterfall. In the event that the underlying collateral asset pool becomes insufficient to make payments on the notes, the loss is absorbed first by the subordinated tranches, and the upper-level tranches remain unaffected until the losses exceed the entire amount of the subordinated tranches. The senior securities are typically AAA-rated, signifying a lower risk, while the lower-credit quality subordinated classes receive a lower credit rating, signifying a higher risk. The most junior class (often called the equity class) is the most exposed to payment risk. In some cases the equity class receives no coupon (either fixed or floating), but only the residual cash flow (if any) after all the other classes have been paid.

     Notes issued by consolidated CLOs mature at various dates between 2014 and 2024 and have a weighted average maturity of 10.1 years. The notes are issued in various tranches with different risk profiles. The interest rates are generally variable rates based on Libor or Euribor plus a pre-defined spread, which varies from 0.21% for the more senior tranches to 7.50% for the more subordinated tranches. At June 30, 2010, the outstanding balance on the notes issued by consolidated CLOs exceeds their fair value by approximately $1.4 billion. The investors in this debt are not affiliated with the company and have no recourse to the general credit of the company for this debt. Notes issued by CLOs are recorded at fair value using an income approach, driven by cash flows expected to be received from the portfolio collateral assets. Fair value is determined using current information, notably market yields and

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projected cash flows of collateral assets based on forecasted default and recovery rates that a market participant would use in determining the current fair value of the notes, taking into account the overall credit quality of the issuers and the company’s past experience in managing similar securities. Market yields, default rates and recovery rates used in the company’s estimate of fair value vary based on the nature of the investments in the underlying collateral pools. In periods of rising market yields, default rates and lower debt recovery rates, the fair value, and therefore the carrying value, of the notes may be adversely affected. The current liquidity constraints within the market for CLO products require the use of certain unobservable inputs for CLO valuation. Once the undiscounted cash flows of the collateral assets have been determined, the company applies appropriate discount rates that a market participant would use, to determine the discounted cash flow valuation of the notes.

     The significant inputs for the valuation model of the notes issued by consolidated CLOs include a cumulative average default rate of 4.6%, an average long-term recovery rate of 72.8%, and an average reinvestment rate of Libor plus 445 basis points. The discount rate applied to the undiscounted cash flows of the collateral assets was derived by utilizing the applicable forward rate curves and appropriate spreads.

     Fair value of consolidated private equity funds

     Consolidated private equity funds are generally structured as partnerships. Generally, the investment strategy of underlying holdings in these partnerships is to seek capital appreciation through direct investments in public or private companies with compelling business models or ideas or through investments in partnership investments that also invest in similar private or public companies. Various strategies may be used. Companies targeted could be distressed organizations, targets of leveraged buyouts or fledgling companies in need of venture capital. Investees of these consolidated investment products may not redeem their investment until the partnership liquidates. Generally, the partnerships have a life that range from seven to twelve years unless dissolved earlier. The general partner may extend the partnership term up to a specified period of time as stated in the Partnership Agreement. Some partnerships allow the limited partners to cause an earlier termination upon the occurrence of certain events as specified in the Partnership Agreement.

     For private equity partnerships, fair value is determined by reviewing each investment for the sale of additional securities of an issuer to sophisticated investors or for investee financial conditions and fundamentals. Publicly traded portfolio investments are carried at market value as determined by their most recent quoted sale, or if there is no recent sale, at their most recent bid price. For these investments held by consolidated investment products, level 1 classification indicates that fair values have been determined using unadjusted quoted prices in active markets for identical assets that the partnership has the ability to access. Level 2 classification may indicate that fair values have been determined using quoted prices in active markets but give effect to certain lock-up restrictions surrounding the holding period of the underlying investments.

     The fair value of level 3 investments held by consolidated investment products are derived from inputs that are unobservable and which reflect the limited partnerships’ own determinations about the assumptions that market participants would use in pricing the investments, including assumptions about risk. These inputs are developed based on the partnership’s own data, which is adjusted if information indicates that market participants would use different assumptions. The partnerships which invest directly into private equity portfolio companies (direct private equity funds) take into account various market conditions, subsequent rounds of financing, liquidity, financial condition, purchase multiples paid in other comparable third-party transactions, the price of securities of other companies comparable to the portfolio company, and operating results and other financial data of the portfolio company, as applicable.

     The partnerships which invest into other private equity funds (funds of funds) take into account information received from those underlying funds, including their reported net asset values and evidence as to their fair value approach, including consistency of their fair value application. These investments do not trade in active markets and represent illiquid long-term investments that generally require future capital commitments. While the partnerships’ reported share of the underlying net asset values of the underlying funds is usually the most significant input in arriving at fair value and is generally representative of fair value, other information may also be used to value such investments at a premium or discount to the net asset values as reported by the funds, including allocations of priority returns within the funds as well as any specific conditions and events affecting the funds.

     Unforeseen events might occur that would subsequently change the fair values of these investments, but such changes would be inconsequential to the company due to its minimal investments in these products (and the large offsetting noncontrolling interests resulting from their consolidation). Any gains or losses resulting from valuation changes in these investments are substantially offset by resulting changes in gains and losses attributable to noncontrolling interests in consolidated entities and therefore do not have a material effect on the financial condition, operating results (including earnings per share), liquidity or capital resources of the company’s common shareholders.

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13. SHARE-BASED COMPENSATION

     The company issues equity-settled share-based awards to certain employees, which are measured at fair value at the date of grant, in accordance with ASC Topic 718, “Compensation — Stock Compensation.” The fair value determined at the grant date is expensed, based on the company’s estimate of shares that will eventually vest, on a straight-line or accelerated basis over the vesting period. The initial forfeiture rate applied to most grants is 5% per year, based upon the company’s historical experience with respect to employee turnover. Fair value for share awards representing equity interests identical to those associated with shares traded in the open market is determined using the market price at the grant date. Fair value is measured by use of the Black Scholes valuation model for certain share awards that do not include dividend rights, and fair value was measured by use of a stochastic model (a lattice-based model) for share option awards.

     The company recognized total expenses of $55.5 million in the six months ended June 30, 2010 (June 30, 2009: $43.9 million) related to equity-settled share-based payment transactions. The total income tax benefit recognized in the Consolidated Statements of Income for share-based compensation arrangements was $21.6 million for the six months ended June 30, 2010 (June 30, 2009: $15.2 million).

     Cash received from the exercise of share options granted under share-based compensation arrangements was $6.2 million in the six months ended June 30, 2010 (June 30, 2009: $9.6 million). The total tax benefit realized from share based payment awards was $44.8 million in the six months ended June 30, 2010 (June 30, 2009: $31.6 million).

Share Awards

     Share awards are broadly classified into two categories: time-vested and performance-vested share awards. Share awards are measured at fair value at the date of grant and are expensed, based on the company’s estimate of shares that will eventually vest, on a straight-line or accelerated basis over the vesting period.

     Time-vested awards vest ratably over or cliff-vest at the end of a period of continued employee service. Performance-vested awards cliff-vest at the end of or vest ratably over a defined vesting period of continued employee service upon the company’s attainment of certain performance criteria, generally the attainment of cumulative earnings per share growth targets at the end of the vesting period reflecting a compound annual growth rate of between 10.0% and 15.0% per annum during a three-year period. Time-vested and performance-vested share awards are granted in the form of restricted share awards (RSAs) or restricted share units (RSUs). Dividends accrue directly to the employee holder of RSAs, and cash payments in lieu of dividends are made to employee holders of certain RSUs. There is therefore no discount to the fair value of these share awards at their grant date. Movements on share awards priced in Pounds Sterling prior to the company’s primary share listing moving to the New York Stock Exchange from the London Stock Exchange, which occurred on December 4, 2007, in connection with the redomicile of the company from the U.K. to Bermuda, are detailed below:

	Six months ended June 30, 2010								Six months ended June 30, 2009
							Weighted Average								Weighted Average
	Time-			Performance-			Grant Date		Time-			Performance-			Grant Date
	Vested			Vested			Fair Value (£ Sterling)		Vested			Vested			Fair Value (£ Sterling)
Millions of shares, except fair values
Unvested at the beginning of period		5.4			2.0			11.24		10.2			6.0			9.62
Forfeited during the period		—			(1.4	)		12.02		(0.2	)		(0.1	)		8.77
Modification of share-based payment awards*		—			—			—		—			(1.4	)		9.37
Vested and distributed during the period		(1.1	)		(0.5	)		8.93		(1.5	)		(2.2	)		8.32
Unvested at the end of the period		4.3			0.1			11.86		8.5			2.3			10.14

* During the six months ended June 30, 2009, the company modified the terms of 1.4 million equity-settled share-based payment awards such that the awards are now deferred cash awards. As a result of this modification, $13.0 million was reclassified out of additional paid in capital and into other current and non-current liabilities on the Condensed Consolidated Balance Sheet during the period. There was no impact to the Condensed Consolidated Statement of Income or earnings per share as a result of this modification.

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     Subsequent to the company’s primary share listing moving to the New York Stock Exchange, shares are now priced in U.S. dollars. Movements on share awards priced in U.S. dollars are detailed below:

	Six months ended June 30, 2010					Six months ended June 30, 2009
				Weighted Average					Weighted Average
	Time-			Grant Date		Time-			Grant Date
	Vested			Fair Value ($)		Vested			Fair Value ($)
Millions of shares, except fair values
Unvested at the beginning of period		11.6			15.24		3.5			26.67
Granted during the period		9.9			19.19		8.9			11.47
Forfeited during the period		(0.1	)		21.55		—			16.41
Vested and distributed during the period		(2.8	)		14.48		(0.6	)		26.58
Unvested at the end of the period		18.6			17.42		11.8			15.27

     Share awards outstanding at June 30, 2010, had a weighted average remaining contractual life of 1.93 years.

Share Options

     The company has not granted share option awards since 2005. All share options awards, therefore, were granted prior to the December 4, 2007, redomicile from the United Kingdom to Bermuda and relisting from the London Stock Exchange (where the predecessor company’s ordinary shares traded in Pounds Sterling) to the New York Stock Exchange (where the company’s common shares now trade in U.S. Dollars). The company maintains its two historical share option plans which have outstanding share options: The 2000 Share Option Plan and the No. 3 Executive Share Option Scheme. All remaining outstanding share option awards were fully vested and were expensed by the company over the applicable vesting periods (the latest of which ended prior to December 31, 2008). At the time of their grants, the exercise prices of the share options were denominated in the company’s trading currency, which was Pounds Sterling. The company did not change the accounting for share options at the redomicile/relisting date, because the share options were not modified at that date. The exercise price remains in Pounds Sterling and was not changed to U.S. Dollars. Therefore, upon exercise of the share options, the Pounds Sterling exercise price will be converted into U.S. Dollars using the spot foreign exchange rate in effect on the exercise date.

     The share option plans provided for a grant price equal to the quoted market price of the company’s shares on the date of grant. If the options remain unexercised after a period of 10 years from the date of grant, the options expire. Furthermore, options are forfeited if the employee leaves the company before the options vest. The options outstanding at June 30, 2010, had a range of exercise prices from 50 pence to 3,360 pence, and a weighted average remaining contractual life of 2.26 years (for options exercisable at June 30, 2010, the weighted average remaining contractual life is 2.26 years). The total intrinsic value of options exercised during the six months ended June 30, 2010 and 2009, was $4.5 million and $2.7 million, respectively. At June 30, 2010, the aggregate intrinsic value of options outstanding and options exercisable was $33.5 million and $33.5 million, respectively. The market price of the company’s common stock at June 30, 2010, was $16.83.

     Changes in outstanding share option awards are as follows:

	Six months ended June 30, 2010					Six months ended June 30, 2009
				Weighted Average					Weighted Average
	Options			Exercise Price		Options			Exercise Price
	(millions of shares)			(£ Sterling)		(millions of shares)			(£ Sterling)
Outstanding at the beginning of the period		16.4			14.99		23.1			14.06
Forfeited during the period		(0.3	)		19.34		(0.7	)		18.05
Exercised during the period		(0.8	)		6.09		(0.6	)		7.94
Outstanding at the end of the period		15.3			15.39		21.8			14.08
Exercisable at the end of the period		15.3			15.39		21.6			14.24

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14. RETIREMENT BENEFIT PLANS

Defined Contribution Plans

     The company operates defined contribution retirement benefit plans for all qualifying employees. The assets of the plans are held separately from those of the company in funds under the control of trustees. When employees leave the plans prior to vesting fully in the contributions, the contributions payable by the company are reduced by the amount of forfeited contributions.

     The total amounts charged to the Condensed Consolidated Statements of Income for the six months ended June 30, 2010 and 2009, of $23.3 million and $22.0 million, respectively, represent contributions paid or payable to these plans by the company at rates specified in the rules of the plans. As of June 30, 2010, accrued contributions of $9.0 million (December 31, 2009: $17.1 million) for the current year will be paid to the plans when due.

Defined Benefit Plans

     The company maintains legacy defined benefit pension plans for qualifying employees of its subsidiaries in the U.K., Ireland, Germany, Taiwan and the U.S. All defined benefit plans are closed to new participants, and the U.S. plan benefits have been frozen. The company also maintains a postretirement medical plan in the U.S., which was closed to new participants in 2005. In 2006, the plan was amended to eliminate benefits for all participants who will not meet retirement eligibility by 2008. The assets of all defined benefit schemes are held in separate trustee-administered funds. Under the plans, the employees are generally entitled to retirement benefits based on final salary at retirement.

     The components of net periodic benefit cost in respect of these defined benefit plans are as follows:

	Three months Ended June 30,												Six months Ended June 30,
	Retirement Plans						Medical Plan						Retirement Plans						Medical Plan
$ in millions	2010			2009			2010			2009			2010			2009			2010			2009
Service cost		1.0			3.4			—			0.1			2.0			6.7			0.1			0.2
Interest cost		3.9			4.9			0.6			0.7			7.8			9.8			1.3			1.3
Expected return on plan assets		(3.5	)		(5.2	)		(0.1	)		(0.1	)		(6.9	)		(10.5	)		(0.2	)		(0.2	)
Amortization of prior service cost		—			—			(0.5	)		(0.5	)		—			—			(1.0	)		(1.0	)
Amortization of net actuarial (loss)/gain		0.6			0.2			0.9			1.0			1.3			0.5			1.8			2.1
Net periodic benefit cost		2.0			3.3			0.9			1.2			4.2			6.5			2.0			2.4

     The estimated amounts of contributions expected to be paid to the plans during 2010 is $7.9 million for retirement plans, with no expected contribution to the medical plan.

     The Patient Protection and Affordable Care Act that was signed into law in the U.S. on March 23, 2010, and its related modifications as part of the Health Care and Education Reconciliation Act of 2010 did not have a material impact on the company’s financial statements during the six months ended June 30, 2010. The company is evaluating whether these new laws may require any longer-term changes in our benefit plans.

15. COMMITMENTS AND CONTINGENCIES

     Commitments and contingencies may arise in the ordinary course of business.

     The company has transactions with various private equity, real estate and other investment entities sponsored by the company for the investment of client assets in the normal course of business. Many of the company’s investment products are structured as limited partnerships. The company’s investment may take the form of the general partner or a limited partner, and the entities are structured such that each partner makes capital commitments that are to be drawn down over the life of the partnership as investment opportunities are identified. At June 30, 2010, the company’s undrawn capital commitments were $85.5 million (December 31, 2009: $77.6 million).

     The volatility and valuation dislocations that occurred from 2007 to the date of this Report in certain sectors of the fixed income market have generated pricing issues in many areas of the market. As a result of these valuation dislocations, during the fourth quarter of 2007, Invesco elected to enter into contingent support agreements for two of its investment trusts to enable them to sustain a stable pricing structure. These two trusts are unregistered trusts that invest in fixed income securities and are available only to limited types

38

of sophisticated investors. In June 2010, the agreements were amended to extend the term through December 31, 2010. As of June 30, 2010, the total committed support under these agreements was $36.0 million with an internal approval mechanism to increase the maximum possible support to $66.0 million at the option of the company. The recorded fair value of the guarantees related to these agreements at June 30, 2010, was estimated to be $2.5 million (December 31, 2009: $2.5 million), which was recorded in other current liabilities on the Condensed Consolidated Balance Sheet. No payments have been made under either agreement nor has Invesco realized any losses from the support agreements through the date of this Report. These trusts were not consolidated because the company was not deemed to be the primary beneficiary.

     A subsidiary of the company has received assessments from the Canada Revenue Agency (CRA) for goods and services tax (GST) related to various taxation periods from April 1999 to December 2006 in the amount of $20.9 million related to GST on sales charges collected from investors upon the redemption of certain mutual funds. The company has objected to the assessments and sought remedial action in the Ontario Superior Court of Justice. In November 2009, the company was successful in such remedial action and, as a result, anticipates successfully contesting the assessments. As a result of such actions, the CRA is currently considering its next steps and has not responded to the company in this regard. Management believes that the CRA’s claims are unfounded and that this assessment is unlikely to stand, and accordingly no provision has been recorded in the Consolidated Financial Statements.

Acquisition Contingencies

     Contingent consideration related to acquisitions includes the following:

• Earn-outs relating to the Invesco PowerShares acquisition. A contingent payment of up to $500.0 million could be due in October 2011, five years after the date of acquisition, based on compound annual growth in management fees (as defined and adjusted pursuant to the acquisition agreement) from an assumed base of $17.5 million at closing. The Year 5 management fees will be reduced by $50.0 million, for purposes of the calculation, since the second contingent payment was earned. For a compound annual growth rate (CAGR) in Year 5 below 15%, no additional payment will be made. For a CAGR in Year 5 between 15% and 75%, $5.0 million for each CAGR point above 15%, for a maximum payment of $300.0 million for a 75% CAGR. For a CAGR in Year 5 between 75% and 100%, $300.0 million, plus an additional $8.0 million for each CAGR point above 75%, for a maximum total payment of $500.0 million for a 100% CAGR.

• Earn-outs relating to the WL Ross acquisition. Contingent payments of up to $55.0 million are due each year for the five years following the October 2006 date of acquisition based on the size and number of future fund launches in which W.L. Ross & Co. is integrally involved. The maximum remaining contingent payments of $110.0 million would require annual fund launches to total $4.0 billion. The April 3, 2010, earn-out calculation resulted in an addition to goodwill and a non-interest bearing note payable to the sellers of $25.8 million, payable at the next measurement date, October 3, 2010.

Legal Contingencies

     Following the industry-wide regulatory investigations in 2003 and 2004, multiple lawsuits based on market timing allegations were filed against various parties affiliated with Invesco. These lawsuits were consolidated in the United States District Court for the District of Maryland, together with market timing lawsuits brought against affiliates of other mutual fund companies, and on September 29, 2004, three amended complaints were filed against company-affiliated parties: (1) a putative shareholder class action complaint brought on behalf of shareholders of AIM funds formerly advised by Invesco Funds Group, Inc.; (2) a derivative complaint purportedly brought on behalf of certain AIM funds and the shareholders of such funds; and (3) an ERISA complaint purportedly brought on behalf of participants in the company’s 401(k) plan. The company and plaintiffs have reached settlements in principle of these lawsuits. The proposed settlements, which are subject to court approval, call for a payment by the company of $9.8 million, recorded in general and administrative expenses in the Consolidated Statement of Income in 2007, in exchange for dismissal with prejudice of all pending claims. In addition, under the terms of the proposed settlements, the company may incur certain costs in connection with providing notice of the proposed settlements to affected shareholders. Based on information currently available, it is not believed that any such incremental notice costs will have any material effect on the consolidated financial position or results of operations of the company.

     The asset management industry also is subject to extensive levels of ongoing regulatory oversight and examination. In the United States and other jurisdictions in which the company operates, governmental authorities regularly make inquiries, hold investigations and administer market conduct examinations with respect to compliance with applicable laws and regulations. Additional lawsuits or regulatory enforcement actions arising out of these inquiries may in the future be filed against the company and related entities and individuals in the U.S. and other jurisdictions in which the company and its affiliates operate. Any material loss of investor and/or

39

client confidence as a result of such inquiries and/or litigation could result in a significant decline in assets under management, which would have an adverse effect on the company’s future financial results and its ability to grow its business.

     In the normal course of its business, the company is subject to various litigation matters. Although there can be no assurances, at this time management believes, based on information currently available to it, that it is not probable that the ultimate outcome of any of these actions will have a material adverse effect on the consolidated financial condition or results of operations of the company.

16. GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

     Prior to the December 4, 2007, redomicile of the company from the United Kingdom to Bermuda and the relisting of the company from the London Stock Exchange to the New York Stock Exchange, INVESCO PLC (now known as Invesco Holding Company Limited), the Issuer, issued 4.5% $300.0 million senior notes due 2009, 5.625% $300.0 million senior notes due 2012, 5.375% $350.0 million senior notes due 2013 and 5.375% $200.0 million senior notes due 2014. These senior notes, are fully and unconditionally guaranteed as to payment of principal, interest and any other amounts due thereon by Invesco Ltd. (the Parent), together with the following wholly owned subsidiaries: Invesco Aim Management Group, Inc., Invesco Aim Advisers, Inc., Invesco North American Holdings, Inc., and Invesco Institutional (N.A.), Inc. (the Guarantors). On June 9, 2009, IVZ, Inc. also became a guarantor of the senior notes. On December 31, 2009, Invesco Aim Advisors, Inc. merged with Invesco Institutional (N.A.), Inc., which was renamed Invesco Advisors, Inc. The company’s remaining consolidated subsidiaries do not guarantee this debt. The guarantees of each of the Guarantors are joint and several. Presented below are Condensed Consolidating Balance Sheets as of June 30, 2010, and December 31, 2009, Condensed Consolidating Statements of Income for the three and six months ended June 30, 2010 and 2009, and Condensed Consolidating Statements of Cash Flows for the six months ended June 30, 2010 and 2009.

40

Condensed Consolidating Balance Sheets

			Non-
$ in millions	Guarantors		Guarantors			Issuer		Parent			Eliminations			Consolidated
As of June 30, 2010
Assets held for policyholders		—		1,151.5			—		—			—			1,151.5
Other current assets		207.3		2,270.1			2.8		26.3			—			2,506.5
Total current assets		207.3		3,421.6			2.8		26.3			—			3,658.0
Goodwill		2,357.4		3,912.8			418.7		—			—			6,688.9
Investments in subsidiaries		1,236.8		5.7			4,508.1		7,531.1			(13,281.7	)		—
Other non-current assets		505.1		8,041.6			7.0		3.3			—			8,557.0
Total assets		4,306.6		15,381.7			4,936.6		7,560.7			(13,281.7	)		18,903.9
Policyholder payables		—		1,151.5			—		—			—			1,151.5
Other current liabilities		38.8		1,578.3			5.7		0.7			—			1,623.5
Total current liabilities		38.8		2,729.8			5.7		0.7			—			2,775.0
Intercompany balances		1,381.6		(1,562.8	)		748.8		(567.6	)		—			—
Non-current liabilities		677.7		5,866.7			745.7		18.7			—			7,308.8
Total liabilities		2,098.1		7,033.7			1,500.2		(548.2	)		—			10,083.8
Total equity attributable to common shareholders		2,208.5		7,636.8			3,436.4		8,108.9			(13,281.7	)		8,108.9
Equity attributable to noncontrolling interests in consolidated entities		—		711.2			—		—			—			711.2
Total equity		2,208.5		8,348.0			3,436.4		8,108.9			(13,281.7	)		8,820.1
Total liabilities and equity		4,306.6		15,381.7			4,936.6		7,560.7			(13,281.7	)		18,903.9
			Non-
$ in millions	Guarantors		Guarantors			Issuer		Parent			Eliminations			Consolidated
As of December 31, 2009
Assets held for policyholders		—		1,283.0			—		—			—			1,283.0
Other current assets		211.5		1,591.7			3.1		31.7			—			1,838.0
Total current assets		211.5		2,874.7			3.1		31.7			—			3,121.0
Goodwill		2,302.8		3,709.4			455.4		—			—			6,467.6
Investments in subsidiaries		714.9		5.7			4,697.7		6,859.3			(12,277.6	)		—
Other non-current assets		147.5		1,165.2			4.9		3.4			—			1,321.0
Total assets		3,376.7		7,755.0			5,161.1		6,894.4			(12,277.6	)		10,909.6
Policyholder payables		—		1,283.0			—		—			—			1,283.0
Other current liabilities		35.7		972.2			7.1		0.4			—			1,015.4
Total current liabilities		35.7		2,255.2			7.1		0.4			—			2,298.4
Intercompany balances		956.8		(1,660.0	)		722.1		(18.9	)		—			—
Non-current liabilities		31.5		213.1			745.8		—			—			990.4
Total liabilities		1,024.0		808.3			1,475.0		(18.5	)		—			3,288.8
Total equity attributable to common shareholders		2,352.7		6,238.8			3,686.1		6,912.9			(12,277.6	)		6,912.9
Equity attributable to noncontrolling interests in consolidated entities		—		707.9			—		—			—			707.9
Total equity		2,352.7		6,946.7			3,686.1		6,912.9			(12,277.6	)		7,620.8
Total liabilities and equity		3,376.7		7,755.0			5,161.1		6,894.4			(12,277.6	)		10,909.6

41

Condensed Consolidating Statements of Income

				Non-
$ in millions	Guarantors			Guarantors			Issuer			Parent			Eliminations			Consolidated
For the three months ended June 30, 2010
Total operating revenues		230.1			556.9			—			—			—			787.0
Total operating expenses		183.3			528.5			0.2			3.6			—			715.6
Operating income/(loss)		46.8			28.4			(0.2	)		(3.6	)		—			71.4
Equity in earnings of unconsolidated affiliates		3.2			7.0			22.6			44.2			(66.6	)		10.4
Other income/(expense)		(26.7	)		235.3			(15.7	)		0.2			—			193.1
Income before income taxes, including gains and losses attributable to noncontrolling interests		23.3			270.7			6.7			40.8			(66.6	)		274.9
Income tax provision		(6.5	)		(28.1	)		(2.1	)		—			—			(36.7	)
Net income, including gains and losses attributable to noncontrolling interests		16.8			242.6			4.6			40.8			(66.6	)		238.2
(Gains)/losses attributable to noncontrolling interests in consolidated entities, net		—			(197.4	)		—			—			—			(197.4	)
Net income attributable to common shareholders		16.8			45.2			4.6			40.8			(66.6	)		40.8
				Non-
$ in millions	Guarantors			Guarantors			Issuer			Parent			Eliminations			Consolidated
For the three months ended June 30, 2009
Total operating revenues		127.8			497.3			—			—			—			625.1
Total operating expenses		102.7			409.7			(0.2	)		2.5			—			514.7
Operating income/(losses)		25.1			87.6			0.2			(2.5	)		—			110.4
Equity in earnings of unconsolidated affiliates		12.5			21.7			31.3			78.0			(136.0	)		7.5
Other income/(expense)		(0.9	)		(63.8	)		10.8			0.2			—			(53.7	)
Income before income taxes and noncontrolling interest		36.7			45.5			42.3			75.7			(136.0	)		64.2
Income tax provision		(9.7	)		(23.1	)		(3.2	)		—			—			(36.0	)
Net income, including losses attributable to noncontrolling interests		27.0			22.4			39.1			75.7			(136.0	)		28.2
(Gains)/Losses attributable to the noncontrolling interests in consolidated entities, net of tax		—			47.5			—			—			—			47.5
Net income attributable to common shareholders		27.0			69.9			39.1			75.7			(136.0	)		75.7

42

				Non-
$ in millions	Guarantors			Guarantors			Issuer			Parent			Eliminations			Consolidated
For the six months ended June 30, 2010
Total operating revenues		411.3			1,094.8			—			—			—			1,506.1
Total operating expenses		323.7			967.2			0.8			6.1			—			1,297.8
Operating income/(loss)		87.6			127.6			(0.8	)		(6.1	)		—			208.3
Equity in earnings of unconsolidated affiliates		2.9			13.0			72.0			144.0			(215.7	)		16.2
Other income/(expense)		(44.7	)		392.1			(30.3	)		(2.1	)		—			315.0
Income/(loss) before income taxes, including gains and losses attributable to noncontrolling interests		45.8			532.7			40.9			135.8			(215.7	)		539.5
Income tax provision		(23.9	)		(64.9	)		2.0			—			—			(86.8	)
Net income, including gains and losses attributable to noncontrolling interests		21.9			467.8			42.9			135.8			(215.7	)		452.7
(Gains)/losses attributable to noncontrolling interests in consolidated entities, net		—			(316.9	)		—			—			—			(316.9	)
Net income attributable to common shareholders		21.9			150.9			42.9			135.8			(215.7	)		135.8
				Non-
$ in millions	Guarantors			Guarantors			Issuer			Parent			Eliminations			Consolidated
For the six months ended June 30, 2009
Total operating revenues		245.3			928.4			—			—			—			1,173.7
Total operating expenses		194.5			799.8			0.7			6.5			—			1,001.5
Operating income/(loss)		50.8			128.6			(0.7	)		(6.5	)		—			172.2
Equity in earnings of unconsolidated affiliates		14.7			40.1			51.1			115.0			(210.9	)		10.0
Other income/(expense)		(1.6	)		(149.2	)		(2.6	)		(2.1	)		—			(155.5	)
Income before income taxes, including gains and losses attributable to noncontrolling interests		63.9			19.5			47.8			106.4			(210.9	)		26.7
Income tax provision		(18.4	)		(18.8	)		(19.1	)		—			—			(56.3	)
Net income, including gains and losses attributable to noncontrolling interests		45.5			0.7			28.7			106.4			(210.9	)		(29.6	)
(Gains)/losses attributable to noncontrolling interests in consolidated entities, net of tax		—			136.0			—			—			—			136.0
Net income attributable to common shareholders		45.5			136.7			28.7			106.4			(210.9	)		106.4
Condensed Consolidating Statements of Cash Flows
				Non-
$ in millions	Guarantors			Guarantors			Issuer			Parent			Eliminations			Consolidated
For the six months ended June 30, 2010
Net cash (used in)/provided by operating activities		(38.2	)		(99.3	)		59.4			47.9			(33.2	)		(63.4	)
Net cash (used in)/provided by investing activities		(660.1	)		363.4			(59.3	)		(9.3	)		(193.8	)		(559.1	)
Net cash (used in)/provided by financing activities		650.0			(403.8	)		—			(38.9	)		227.0			434.3
(Decrease)/increase in cash and cash equivalents		(48.3	)		(139.7	)		0.1			(0.3	)		—			(188.2	)
				Non-
$ in millions	Guarantors			Guarantors			Issuer			Parent			Eliminations			Consolidated
For the six months ended June 30, 2009
Net cash (used in)/provided by operating activities		(15.5	)		98.3			118.2			46.2			(250.0	)		(2.8	)
Net cash (used in)/provided by investing activities		(4.5	)		2.4			—			—			—			(2.1	)
Net cash (used in)/provided by financing activities		—			139.6			(119.4	)		(46.0	)		250.0			224.2
(Decrease)/increase in cash and cash equivalents		(20.0	)		240.3			(1.2	)		0.2			—			219.3

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17. SUBSEQUENT EVENTS

     On July 27, 2010, the company declared a second quarter 2010 dividend of 11 cents per share, payable on September 9, 2010, to common and participating preferred shareholders of record at the close of business on August 23, 2010.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

     The following Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the Condensed Consolidated Financial Statements and related Notes thereto, which appear elsewhere in this Report. Except for the historical financial information, this Report may include statements that constitute “forward-looking statements” under the United States securities laws. Forward-looking statements include information concerning possible or assumed future results of our operations, expenses, earnings, liquidity, cash flows and capital expenditures, industry or market conditions, assets under management, acquisition activities and the effect of completed acquisitions, debt levels and our ability to obtain additional financing or make payments on our debt, regulatory developments, demand for and pricing of our products and other aspects of our business or general economic conditions. In addition, when used in this Report, the documents incorporated by reference herein or such other documents or statements, words such as “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “projects,” “forecasts,” and future or conditional verbs such as “will,” “may,” “could,” “should,” and “would,” and any other statement that necessarily depends on future events, are intended to identify forward-looking statements.

     Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from our expectations. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our most recent Form 10-K and subsequent Forms 10-Q, filed with the Securities and Exchange Commission.

References

     In this Report, unless otherwise specified, the terms “we,” “our,” “us,” “company,” “Invesco,” and “Invesco Ltd.” refer to Invesco Ltd., a company incorporated in Bermuda, and its subsidiaries.

Executive Overview

     The following executive overview summarizes the significant trends affecting our results of operations and financial condition for the periods presented. This overview and the remainder of this management’s discussion and analysis supplements, and should be read in conjunction with, the Condensed Consolidated Financial Statements of Invesco Ltd. and its subsidiaries and the notes thereto contained elsewhere in this Report.

     Invesco is a leading independent global investment manager with offices in 22 countries. As of June 30, 2010, we managed $557.7 billion in assets for retail, institutional and high-net-worth investors around the world. By delivering the combined power of our distinctive worldwide investment management capabilities, Invesco provides a comprehensive array of enduring solutions for our clients. We have a significant presence in the institutional and retail segments of the investment management industry in North America, UK, Europe and Asia-Pacific, with clients in more than 150 countries.

     Risk aversion came to the fore during the second quarter as doubts about the sovereign debt of Greece, Spain, Portugal, Ireland, and Italy unnerved investors. Global equity markets experienced significant declines as investors sought the safe haven of U.S. Treasury securities. The declines in the second quarter erased previous market gains achieved in the first quarter. The table below summarizes the second quarter and first half returns of several major market indices for 2010 and 2009:

Index	Three months ended June 30,						Six months ended June 30,
	2010			2009			2010			2009
S&P 500		(11.9	%)		15.2	%		(8.5	%)		3.2	%
FTSE 100		(13.4	%)		8.2	%		(8.9	%)		(3.3	%)
Nikkei 225		(15.4	%)		22.8	%		(11.0	%)		12.4	%
MSCI Emerging Market Index		(9.1	%)		33.6	%		(7.2	%)		34.6	%

44

     Investor concerns about European sovereign debt and the sustainability of the economic recovery pressured global equity markets during the second quarter of 2010. The S&P 500 index posted its worst quarterly performance since the final three months of 2008 when the global financial crisis was in full swing declining over 11%. Steep declines were felt in most global markets with the FTSE 100 down just over 13% and the Nikkei 225 index down over 15%.

     The strong returns in the corporate credit markets during the first quarter also ended with the increase in sovereign debt worries in Europe. As borrowing costs in Greece and other European nations soared, corporations found it more difficult to borrow as well. Corporate bond yields rose relative to U.S. Treasuries and new debt issuance ground to a halt as investors pulled money out of riskier credits and purchased the safer U.S. Treasury bonds. As a result of the flight to safety, U.S. Treasury bond prices jumped and yields, which move in the opposite direction of price, fell. U.S. Treasury securities returned 4.7% during the second quarter.

     A significant portion of our business and assets under management (AUM) is based outside of the U.S. The strengthening or weakening of the U.S. dollar against other currencies, primarily the Pound Sterling and the Canadian dollar, will impact our reported revenues and expenses from period to period. Additionally, our revenues are directly influenced by the level and composition of our AUM. Therefore, movements in global capital market levels, net new business inflows (or outflows) and changes in the mix of investment products between asset classes and geographies may materially affect our revenues from period to period. The returns from most global capital markets decreased in the three and six months ended June 30, 2010, which resulted in market depreciation in our AUM of $24.2 billion and $14.5 billion during the respective period; additionally the change in foreign exchange rates reduced AUM by $3.4 billion and $7.9 billion during the respective period. AUM at June 30, 2010, were $557.7 billion.

     Summary operating information is presented in the table below:

	Three months ended June 30,						Six months ended June 30,
U.S. GAAP Financial Measures Summary	2010			2009			2010			2009
Operating revenues	$	787.0	m	$	625.1	m	$	1,506.1	m	$	1,173.7	m
Operating margin		9.1	%		17.7	%		13.8	%		14.7	%
Net income attributable to common shareholders	$	40.8	m	$	75.7	m	$	135.8	m	$	106.4	m
Diluted EPS	$	0.09		$	0.18		$	0.30		$	0.26
Average assets under management (in billions)	$	480.5		$	401.5		$	465.0		$	377.9

	Three months ended June 30,						Six months ended June 30,
Non-GAAP Financial Measures Summary	2010			2009			2010			2009
Net revenues(1)	$	589.0	m	$	470.1	m	$	1,133.4	m	$	881.7	m
Adjusted operating margin(2)		32.0	%		26.9	%		32.8	%		23.3	%
Adjusted net income(3)	$	125.4	m	$	87.3	m	$	245.4	m	$	129.7	m
Adjusted EPS(3)	$	0.27		$	0.21		$	0.55		$	0.32
Average assets under management (in billions)	$	480.5		$	401.5		$	465.0		$	377.9

(1)	Net revenues are operating revenues less third-party distribution, service and advisory expenses, plus our proportional share of the net revenues of our joint venture investments, plus management fees earned from, less other revenue recorded by, consolidated investment products. See “Schedule of Non-GAAP Information” for the reconciliation of operating revenues to net revenues.
(2)	Adjusted operating margin is adjusted operating income divided by net revenues. Adjusted operating income includes operating income plus our proportional share of the operating income of our joint venture investments, transaction and integration charges, amortization of acquisition-related prepaid compensation and other intangibles, and the operating income impact of the consolidation of investment products. See “Schedule of Non-GAAP Information” for the reconciliation of operating income to adjusted operating income.
(3)	Adjusted net income is net income attributable to common shareholders adjusted to add back transaction and integration charges, amortization of acquisition-related prepaid compensation and other intangibles, and the tax cash flow benefits resulting from tax amortization of goodwill and indefinite-lived intangible assets. Adjusted net income excludes the net income of consolidated investment products, and the net income impact of deferred compensation plans. By calculation, adjusted EPS is adjusted net income divided by the weighted average number of shares outstanding (for diluted EPS). See “Schedule of Non-GAAP Information” for the reconciliation of net income to adjusted net income.

45

     On June 1, 2010, the company completed the acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments (the “acquired business” or the “acquisition”), in exchange for a combination of $770.0 million in cash paid and 30.9 million common shares and common share equivalents. The acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments, added assets under management across equity, fixed income and alternatives (including mutual funds, variable insurance funds, separate accounts and unit investment trusts). More specifically, this combination will:

• Expand the depth and breadth of the company’s investment strategies, enabling the company to offer an even more comprehensive range of investment capabilities and vehicles to its clients around the world;

• Enhance the company’s ability to serve U.S. clients by positioning Invesco among the leading U.S. asset managers by assets under management (AUM), diversity of investment teams and client profile;

• Deepen Invesco’s relationships with clients and strengthen its overall distribution capabilities; and

• Further strengthen its position in the Japanese investment management market.

     Current estimates indicate that the transaction will yield total adjusted earnings accretion in the first year after the close of the transaction of between 22 and 24 cents per share.

46

     Investment Capabilities Performance Overview

     Invesco’s first strategic priority is to achieve strong investment performance over the long-term for our clients. Performance in our equities capabilities, as measured by the percentage of AUM ahead of benchmark and ahead of peer median, has generally been strong with some pockets of outstanding performance and some areas where we have been challenged. Within our equity asset class, U.S. Value, Continental European, and Global ex-U.S. and Emerging Markets have generally had strong relative performance versus competitors and versus benchmark over three- and five-year periods. Near term investment performance in our Canadian equities has seen a strong turnaround as 68% of assets are ahead of peers and benchmark. On a one-year basis, U.K. equity performance has lagged against both competitors and benchmarks; however long-term performance remains strong with over 91% of assets ahead of peers and benchmarks on a 3- and 5- year basis. Within our fixed income asset class, the global fixed income products have had at least 80% of AUM ahead of benchmark and peers over one-, three-, and five-year periods. Our money market capability had at least 93% of AUM ahead of peers on a one-, three-, and five-year basis.

	Benchmark Comparison									Peer Group Comparison
	% of AUM Ahead of									% of AUM In Top Half of
	Benchmark									Peer Group
	1yr			3yr			5yr			1yr			3yr			5yr
Equities
U.S. Core		17	%		87	%		88	%		35	%		59	%		75	%
U.S. Growth		62	%		62	%		76	%		47	%		52	%		62	%
U.S. Value		63	%		93	%		94	%		86	%		92	%		92	%
Sector		73	%		72	%		71	%		41	%		49	%		61	%
U.K.		10	%		94	%		94	%		5	%		91	%		95	%
Canadian		68	%		64	%		3	%		68	%		36	%		25	%
Asian		51	%		49	%		73	%		59	%		55	%		60	%
Continental European		91	%		78	%		94	%		85	%		75	%		73	%
Global		59	%		65	%		81	%		64	%		37	%		39	%
Global Ex U.S. and Emerging Markets		86	%		94	%		94	%		92	%		91	%		90	%
Balanced
Balanced		46	%		75	%		73	%		71	%		67	%		74	%
Fixed Income
Money Market		40	%		74	%		71	%		97	%		94	%		93	%
U.S. Fixed Income		84	%		35	%		59	%		69	%		64	%		62	%
Global Fixed Income		94	%		80	%		87	%		95	%		80	%		80	%

Note: AUM measured in the one-, three-, and five-year peer group rankings represents 60%, 60%, and 58% of total Invesco AUM, respectively, and AUM measured versus benchmark on a one-, three-, and five-year basis represents 72%, 71%, and 65% of total Invesco AUM, respectively, as of 6/30/10. Peer group rankings are sourced from a widely-used third party ranking agency in each fund’s market (Lipper, Morningstar, Russell, Mercer, eVestment Alliance, SITCA) and asset-weighted in USD. Rankings are as of prior quarter-end for most institutional products and prior month-end for Australian retail funds due to their late release by third parties. Rankings for the most representative fund in each GIPS composite are applied to all products within each GIPS composite. Excludes Invesco PowerShares, W.L. Ross & Co., Invesco Private Capital, non-discretionary direct real estate products and CLOs. Certain funds and products were excluded from the analysis because of limited benchmark or peer group data. Had these been available, results may have been different. These results are preliminary and subject to revision. Performance assumes the reinvestment of dividends. Past performance is not indicative of future results and may not reflect an investor’s experience.

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Results of Operations for the three months ended June 30, 2010, Compared with the three months ended June 30, 2009

Assets Under Management

  The company’s rolling presentation of AUM from period to period illustrates long-term inflows and outflows separately from the net flows into institutional money market funds. Long-term inflows and the underlying reasons for the movements in this line item include investments from new clients, existing clients adding new accounts/funds or contributions/subscriptions into existing accounts/funds, and new funding commitments into private equity funds. We present net flows into institutional money market funds separately, because shareholders of those funds typically utilize them as short-term funding vehicles, and because their flows are particularly sensitive to short-term interest rate movements. Long-term outflows and the underlying reasons for the movements in this line item include redemptions resulting from closed client accounts/funds, partial redemptions in continuing client accounts/funds, and reductions in funding commitments into private equity funds.

     There are numerous drivers of AUM inflows and outflows, from individual investor decisions to change their investment preferences to fiduciaries making broad asset allocation decisions on behalf of advised clients to reallocate investments within portfolios. We are not a party to these asset allocation decisions, as the company does not generally have access to the underlying investor’s decision-making process, including their risk appetite or short-term cash needs. Therefore, the company is not in a position to provide meaningful information regarding the drivers of inflows and outflows.

     To align our external reporting of AUM with how Invesco is portrayed in the industry and to reflect more fully the company’s revenue drivers, in the three months ended June 30, 2010, the company changed its definition of AUM to include assets with which the company is also associated: the PowerShares QQQ fund, DB PowerShares ETFs, and other passive assets. These products previously were not included in the company’s reported AUM, because the company does not receive investment management fees from these assets. These assets are marketed as Invesco products, and to include them as part of our AUM more accurately reflects the full size and capabilities of Invesco. Additionally, the company may receive meaningful performance, service, distribution, or transaction revenues from these assets. The inclusion of these assets as AUM changed the following data points from those previously disclosed:

				Post-
	Previously			Reporting
$ in billions	Disclosed			Alignment
Ending AUM:
January 1, 2009		357.2			377.1
March 31, 2009		348.2			369.0
June 30, 2009		388.7			414.4
December 31, 2009		423.1			459.5
March 31, 2010		419.6			457.7
Average AUM:
Three months ended June 30, 2009		376.5			401.5
Six months ended June 30, 2009		365.4			377.9
Net revenue yield on AUM:
Three months ended June 30, 2009		49.9	bps		46.8	bps
Six months ended June 30, 2009		48.2	bps		46.7	bps
Net revenue yield on AUM before performance fees:
Three months ended June 30, 2009		49.1	bps		46.0	bps
Six months ended June 30, 2009		47.1	bps		45.7	bps
Gross revenue yield on AUM:
Three months ended June 30, 2009		67.1	bps		62.8	bps
Six months ended June 30, 2009		64.8	bps		62.7	bps
Gross revenue yield on AUM before performance fees:
Three months ended June 30, 2009		66.2	bps		62.0	bps
Six months ended June 30, 2009		63.8	bps		61.7	bps

     Additionally, as a result of the June 1, 2010, acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments (the “acquired business” or the “acquisition”), the company now manages unit investment trust (UIT) products,

48

which are now categorized in this passive asset group, and for which we earn revenues related to transactional sales charges from the sale of these products and trading income arising from securities temporarily held to form new UIT products.

     AUM at June 30, 2010, were $557.7 billion (March 31, 2010: $457.7 billion; June 30, 2009: $414.4 billion). The June 1, 2010, acquisition added $114.6 billion in AUM at that date. During the three months ended June 30, 2010, net inflows increased AUM by $13.9 billion, while negative market movements decreased AUM by $24.2 billion. We also experienced net outflows in institutional money market funds of $0.9 billion, and decreases in AUM of $3.4 billion due to changes in foreign exchange rates during the three months ended June 30, 2010. During the three months ended June 30, 2009, net inflows increased AUM by $4.4 billion, and positive market movements increased AUM by $28.2 billion. We also experienced net inflows in institutional money market funds of $1.7 billion, and increases in AUM of $11.1 billion due to changes in foreign exchange rates during the three months ended June 30, 2009. Average AUM during the three months ended June 30, 2010, were $480.5 billion, compared to $401.5 billion for the three months ended June 30, 2009.

     Net flows increased AUM by $13.9 billion during the three months ended June 30, 2010 (three months ended June 30, 2009: $4.4 billion), and included net long-term inflows of ETF, UIT and passive AUM of $14.7 billion and other net long-term outflows of $0.8 billion. Net flows were driven by net inflows into our Institutional distribution channel of $15.7 billion, which resulted primarily from a $15.8 billion passive mandate in Japan, a post-close direct consequence of the newly acquired business. Our retail distribution channel experienced net outflows of $2.4 billion during the three months ended June 30, 2010, primarily in the equity asset class, while our high net worth distribution channel experienced net inflows of $0.6 billion.

     Market gains and losses/reinvestment of AUM includes the net change in AUM resulting from changes in market values of the underlying investments from period to period and reinvestment of client dividends. Market declines led to a $24.2 billion decrease in AUM during the three months ended June 30, 2010, compared to an increase of $28.2 billion in the comparative 2009 period. Of the total decrease in AUM resulting from market declines during the three months ended June 30, 2010, $21.1 billion of this decrease was due to the change in value of our equity asset class across all of our business components. Our alternatives and balanced asset classes were also negatively impacted by the change in market valuations during the period. During the three months ended June 30, 2010, our equity AUM decreased in line with equity markets globally from March 31, 2010. As discussed in the “Executive Overview” section of this Management’s Discussion and Analysis, the S&P 500 and the FTSE 100 indices decreased 11.9% and 13.4%, respectively, during the three months ended June 30, 2010. The decline in equity valuations impacted our retail distribution channel the most significantly. In contrast, of the $28.2 billion increase in AUM resulting from market increases during the three months ended June 30, 2009, $21.0 billion of this increase was due to the change in value of our equity asset class, in line with increases in the S&P 500 and the FTSE 100 indices of 15.2% and 8.2%, respectively, during that period.

     Foreign exchange rate movements in our AUM result from the effect of changes in foreign exchange rates from period to period as non-U.S.-Dollar denominated AUM is translated into U.S. Dollars, the reporting currency of the company. Foreign exchange rate movements led to a $3.4 billion decrease in AUM during the three months ended June 30, 2010, compared to an $11.1 billion increase in the comparative 2009 period. The impact of the change in foreign exchange rates in the three months ended June 30, 2010, was driven primarily by the marginal weakening of the Pounds Sterling relative to the U.S. Dollar, which was reflected in the translation of our Pounds Sterling-based AUM into U.S. Dollars, the marginal weakening of the Canadian Dollar relative to the U.S. Dollar, which was reflected in the translation of our Canadian Dollar-based AUM into U.S. Dollars, and to the marginal weakening of the Euro relative to the U.S. Dollar, which was reflected in the translation of our Euro-based AUM into U.S. Dollars. In contrast, the impact of the change in foreign exchange rates in the three months ended June 30, 2009, which led to an increase in AUM during that period of $11.1 billion, was driven by more significant strengthening of the Pounds Sterling, Canadian Dollar, and Euro to the U.S. Dollar.

     The table below illustrates the spot foreign exchange rates for translation into the U.S. Dollar, the reporting currency of the company, at June 30, 2010 and 2009, as compared with the rates that existed at March 31, 2010 and 2009:

	June 30, 2010		March 31, 2010		June 30, 2009		March 31, 2009
Pounds Sterling ($  per £)		1.50		1.52		1.65		1.43
Canadian Dollar (CAD per $)		1.06		1.02		1.16		1.26
Euro ($  per Euro)		1.23		1.35		1.40		1.33

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     Net revenue yield increased 2.2 basis points to 49.0 basis points in the three months ended June 30, 2010, from the three months ended June 30, 2009, level of 46.8 basis points, resulting from a 25.3% increase in net revenues and a 19.7% increase in average AUM from the three months ended June 30, 2009. The June 1, 2010, acquired business added $114.6 billion in AUM at that date, with an expected effective fee rate of approximately 47 basis points. Market driven changes in our asset mix significantly impact our net revenue yield calculation. Our equity AUM generally earn a higher net revenue rate than money market AUM. At June 30, 2010, equity AUM were $263.2 billion, representing 47% of our total AUM at that date; whereas at June 30, 2009, equity AUM were $155.6 billion, representing 37.5% of our total AUM at that date.

     Gross revenue yield on AUM increased 3.2 basis points to 66.0 basis points in the three months ended June 30, 2010, from the three months ended June 30, 2009, level of 62.8 basis points. Gross revenue yield, the most comparable U.S. GAAP-based measure to net revenue yield, is not considered by management to be a meaningful effective fee rate measure. The numerator of the gross revenue yield measure, operating revenues, excludes the management fees earned from consolidated investment products; however the denominator of the measure includes the AUM of these investment products. Therefore, the gross revenue yield measure is not considered representative of the company’s true effective fee rate from AUM. The company evaluates net revenue yield instead. See “Schedule of Non-GAAP Information” for a reconciliation of operating revenues (gross revenues) to net revenues.

     Changes in AUM were as follows:

				AUM ex									AUM ex
				ETF, UIT &			ETF, UIT &						ETF, UIT			ETF, UIT &
	Total AUM			Passive			Passive			Total AUM			& Passive			Passive
$ in billions	2010			2010			2010			2009			2009			2009
March 31		457.7			402.0			55.7			369.0			338.0			31.0
Long-term inflows		45.3			18.7			26.6			25.5			16.5			9.0
Long-term outflows		(31.4	)		(19.5	)		(11.9	)		(21.1	)		(14.4	)		(6.7	)
Long-term net flows		13.9			(0.8	)		14.7			4.4			2.1			2.3
Net flows in money market funds		(0.9	)		(0.9	)		—			1.7			1.7			—
Market gains and losses/reinvestment		(24.2	)		(19.4	)		(4.8	)		28.2			22.7			5.5
Acquisitions		114.6			100.9			13.7			—			—			—
Foreign currency translation		(3.4	)		(3.3	)		(0.1	)		11.1			10.9			0.2
June 30		557.7			478.5			79.2			414.4			375.4			39.0
Average long-term AUM		413.4			355.9			57.5			310.9			276.8			34.1
Average institutional money market AUM		67.1			67.1			—			90.6			90.6			—
Average AUM		480.5			423.0			57.5			401.5			367.4			34.1
Gross revenue yield on AUM(1)		66.0	bps		73.4	bps		12.0	bps		62.8	bps		67.4	bps		14.0	bps
Gross revenue yield on AUM before performance fees(1)		65.7	bps		73.1	bps		12.0	bps		62.0	bps		66.5	bps		14.0	bps
Net revenue yield on AUM(2)		49.0	bps		54.1	bps		12.0	bps		46.8	bps		49.9	bps		14.0	bps
Net revenue yield on AUM before performance fees(2)		48.7	bps		53.8	bps		12.0	bps		46.0	bps		49.0	bps		14.0	bps

(1)

Gross revenue yield on AUM is equal to annualized total operating revenues divided by average AUM, excluding joint venture (JV) AUM. Our share of the average AUM in the second quarter for our JVs in China was $3.5 billion (first quarter 2010: $3.8 billion; second quarter 2009: $3.6 billion). It is appropriate to exclude the average AUM of our JVs for purposes of computing gross revenue yield on AUM, because the revenues resulting from these AUM are not presented in our operating revenues. Under U.S. GAAP, our share of the pre-tax earnings of the JVs is recorded as equity in earnings of unconsolidated affiliates on our Condensed Consolidated Statements of Income.

(2)

Net revenue yield on AUM is equal to annualized net revenues divided by average AUM. See “Schedule of Non-GAAP Information” for a reconciliation of operating revenues to net revenues.

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Our AUM by channel, by asset class, and by client domicile were as follows:

Total AUM by Channel⁽¹⁾

										Private
										Wealth
$ in billions	Total			Retail			Institutional			Management
March 31, 2010 AUM		457.7			244.3			197.8			15.6
Long-term inflows		45.3			23.0			21.2			1.1
Long-term outflows		(31.4	)		(25.4	)		(5.5	)		(0.5	)
Long-term net flows		13.9			(2.4	)		15.7			0.6
Net flows in money market funds		(0.9	)		—			(0.9	)		—
Market gains and losses/reinvestment		(24.2	)		(18.6	)		(4.8	)		(0.8	)
Acquisitions		114.6			105.1			9.5			—
Foreign currency translation		(3.4	)		(2.4	)		(1.0	)		—
June 30, 2010 AUM		557.7			326.0			216.3			15.4
March 31, 2009 AUM(2)		369.0			155.4			200.6			13.0
Long-term inflows		25.5			19.8			4.2			1.5
Long-term outflows		(21.1	)		(14.9	)		(4.7	)		(1.5	)
Long-term net flows		4.4			4.9			(0.5	)		—
Net flows in money market funds		1.7			—			1.7			—
Market gains and losses/reinvestment		28.2			22.4			5.0			0.8
Foreign currency translation		11.1			9.4			1.7			—
June 30, 2009 AUM		414.4			192.1			208.5			13.8

ETF, UIT & Passive AUM by Channel⁽¹⁾

										Private
										Wealth
$ in billions	Total			Retail			Institutional			Management
March 31, 2010 AUM		55.7			49.7			6.0			—
Long-term inflows		26.6			10.6			16.0			—
Long-term outflows		(11.9	)		(11.9	)		—			—
Long-term net flows		14.7			(1.3	)		16.0			—
Net flows in money market funds		—			—			—			—
Market gains and losses/reinvestment		(4.8	)		(4.6	)		(0.2	)		—
Acquisitions		13.7			13.7			—			—
Foreign currency translation		(0.1	)		—			(0.1	)		—
June 30, 2010 AUM		79.2			57.5			21.7			—
March 31, 2009 AUM(2)		31.0			28.0			3.0			—
Long-term inflows		9.0			9.0			—			—
Long-term outflows		(6.7	)		(6.7	)		—			—
Long-term net flows		2.3			2.3			—			—
Net flows in money market funds		—			—			—			—
Market gains and losses/reinvestment		5.5			5.0			0.5			—
Foreign currency translation		0.2			—			0.2			—
June 30, 2009 AUM		39.0			35.3			3.7			—

See accompanying notes to these AUM tables on the following page.

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Total AUM by Asset Class⁽³⁾

							Fixed						Money
$ in billions	Total			Equity			Income			Balanced			Market			Alternatives(4)
March 31, 2010 AUM		457.7			198.5			79.5			40.6			72.6			66.5
Long-term inflows		45.3			33.9			5.4			2.1			0.6			3.3
Long-term outflows		(31.4	)		(19.4	)		(4.7	)		(2.2	)		(0.4	)		(4.7	)
Long-term net flows		13.9			14.5			0.7			(0.1	)		0.2			(1.4	)
Net flows in money market funds		(0.9	)		—			—			—			(0.9	)		—
Market gains and losses/reinvestment		(24.2	)		(21.5	)		1.6			(1.9	)		—			(2.4	)
Acquisitions		114.6			73.7			37.8			0.3			0.6			2.2
Foreign currency translation		(3.4	)		(2.0	)		(0.3	)		(0.7	)		—			(0.4	)
June 30, 2010 AUM		557.7			263.2			119.3			38.2			72.5	(5)		64.5
March 31, 2009 AUM(2)		369.0			127.1			63.2			29.9			92.6			56.2
Long-term inflows		25.5			12.9			4.8			2.3			0.6			4.9
Long-term outflows		(21.1	)		(12.2	)		(3.2	)		(2.2	)		(0.8	)		(2.7	)
Long-term net flows		4.4			0.7			1.6			0.1			(0.2	)		2.2
Net flows in money market funds		1.7			—			—			—			1.7			—
Market gains and losses/reinvestment		28.2			21.0			2.1			3.4			—			1.7
Foreign currency translation		11.1			6.8			1.6			1.6			0.2			0.9
June 30, 2009 AUM		414.4			155.6			68.5			35.0			94.3			61.0

ETF, UIT and Passive AUM by Asset Class⁽³⁾

							Fixed					Money
$ in billions	Total			Equity			Income			Balanced		Market		Alternatives(4)
March 31, 2010 AUM		55.7			34.3			4.6			—		—		16.8
Long-term inflows		26.6			24.4			0.8			—		—		1.4
Long-term outflows		(11.9	)		(9.7	)		(0.2	)		—		—		(2.0	)
Long-term net flows		14.7			14.7			0.6			—		—		(0.6	)
Net flows in money market funds		—			—			—			—		—		—
Market gains and losses/reinvestment		(4.8	)		(4.6	)		0.9			—		—		(1.1	)
Acquisitions		13.7			4.5			9.2			—		—		—
Foreign currency translation		(0.1	)		—			—			—		—		(0.1	)
June 30, 2010 AUM		79.2			48.9			15.3			—		—		15.0
March 31, 2009 AUM(2)		31.0			20.7			1.2			—		—		9.1
Long-term inflows		9.0			5.5			0.6			—		—		2.9
Long-term outflows		(6.7	)		(5.8	)		—			—		—		(0.9	)
Long-term net flows		2.3			(0.3	)		0.6			—		—		2.0
Net flows in money market funds		—			—			—			—		—		—
Market gains and losses/reinvestment		5.5			4.2			0.1			—		—		1.2
Foreign currency translation		0.2			—			—			—		—		0.2
June 30, 2009 AUM		39.0			24.6			1.9			—		—		12.5

See accompanying notes to these AUM tables on the following page.

52

Total AUM by Client Domicile⁽⁶⁾

													Continental
$ in billions	Total			U.S.			Canada			U.K.			Europe			Asia
March 31, 2010 AUM		457.7			290.4			29.2			83.9			27.0			27.2
Long-term inflows		45.3			18.9			0.6			4.7			3.3			17.8
Long-term outflows		(31.4	)		(21.3	)		(1.8	)		(3.7	)		(3.2	)		(1.4	)
Long-term net flows		13.9			(2.4	)		(1.2	)		1.0			0.1			16.4
Net flows in money market funds		(0.9	)		(1.7	)		—			(0.3	)		2.0			(0.9	)
Market gains and losses/reinvestment		(24.2	)		(12.9	)		(1.4	)		(5.6	)		(1.4	)		(2.9	)
Acquisitions		114.6			103.7			0.6			1.8			2.9			5.6
Foreign currency translation		(3.4	)		—			(1.2	)		(1.2	)		(1.0	)		—
June 30, 2010 AUM		557.7			377.1			26.0			79.6			29.6			45.4
March 31, 2009 AUM(2)		369.0			250.6			21.4			53.8			22.4			20.8
Long-term inflows		25.5			16.4			0.5			4.1			2.3			2.2
Long-term outflows		(21.1	)		(13.7	)		(1.3	)		(1.7	)		(2.1	)		(2.3	)
Long-term net flows		4.4			2.7			(0.8	)		2.4			0.2			(0.1	)
Net flows in money market funds		1.7			(0.1	)		—			0.1			1.3			0.4
Market gains and losses/reinvestment		28.2			16.2			2.7			4.8			1.7			2.8
Foreign currency translation		11.1			—			1.9			7.6			1.0			0.6
June 30, 2009 AUM		414.4			269.4			25.2			68.7			26.6			24.5

ETF, UIT and Passive AUM by Client Domicile⁽⁶⁾

											Continental
$ in billions	Total			U.S.			Canada		U.K.		Europe			Asia
March 31, 2010 AUM		55.7			53.1			—		—		1.0			1.6
Long-term inflows		26.6			10.7			—		—		0.1			15.8
Long-term outflows		(11.9	)		(11.8	)		—		—		(0.1	)		—
Long-term net flows		14.7			(1.1	)		—		—		—			15.8
Net flows in money market funds		—			—			—		—		—			—
Market gains and losses/reinvestment		(4.8	)		(4.0	)		—		—		(0.1	)		(0.7	)
Acquisitions		13.7			13.7			—		—		—			—
Foreign currency translation		(0.1	)		—			—		—		—			(0.1	)
June 30, 2010 AUM		79.2			61.7			—		—		0.9			16.6
March 31, 2009 AUM(2)		31.0			29.4			—		—		0.6			1.0
Long-term inflows		9.0			8.9			—		—		0.1			—
Long-term outflows		(6.7	)		(6.7	)		—		—		—			—
Long-term net flows		2.3			2.2			—		—		0.1			—
Net flows in money market funds		—			—			—		—		—			—
Market gains and losses/reinvestment		5.5			5.2			—		—		0.1			0.2
Foreign currency translation		0.2			—			—		—		—			0.2
June 30, 2009 AUM		39.0			36.8			—		—		0.8			1.4

(1)	Channel refers to the distribution channel from which the AUM originated. Institutional AUM originated from individual corporate clients, endowments, foundations, government authorities, universities, or charities. Retail AUM arose from client investments into funds available to the public with shares or units. Private Wealth Management AUM arose from high net worth client investments.
(2)	The beginning balances were adjusted to reflect certain asset reclassifications, including the previously discussed AUM reporting alignment to include ETF, UIT and passive AUM.
(3)	Asset classes are descriptive groupings of AUM by common type of underlying investments.
(4)	The alternatives asset class includes financial structures, absolute return, real estate, private equity, asset allocation, portable alpha and multiple asset strategies.
(5)	Ending Money Market AUM includes $68.1 billion in institutional money market AUM and $4.4 billion in retail money market AUM.
(6)	Client domicile disclosure groups AUM by the domicile of the underlying clients.

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Results of Operations

Adoption of FASB Statement No. 167

     The company provides investment management services to, and has transactions with, various private equity, real estate, fund-of-funds, collateralized loan obligation products (CLOs), and other investment entities sponsored by the company for the investment of client assets in the normal course of business. The company serves as the investment manager, making day-to-day investment decisions concerning the assets of the products. Certain of these entities are consolidated under variable interest or voting interest entity consolidation guidance. See Part I, Item 1, Financial Statements — Note 12, “Consolidated Investment Products,” for additional details.

     FASB Statement No. 167, which was effective January 1, 2010, had a significant impact on the presentation of the company’s financial statements, as its provisions required the company to consolidate certain CLOs that were not previously consolidated. The cumulative effect adjustment upon adoption of FASB Statement No. 167 at January 1, 2010, resulted in an appropriation of retained earnings and a reclassification of other comprehensive income into retained earnings of $274.3 million and $5.2 million, respectively. The company’s Consolidated Statement of Income for the three months ended June 30, 2010, reflects the elimination of $8.9 million in management fees earned from these CLOs, and the addition of $53.1 million in interest income, $25.6 million in interest expense, and $158.1 million in net other gains. The $175.4 million net income impact during the three months ended June 30, 2010, of consolidation of these CLOs is largely offset by gains/(losses) attributable to investors in noncontrolling interests of $173.0 million. Prior to the adoption of FASB Statement No. 167, the company accounted for its investments in these CLOs as available-for-sale investments, with changes in the value of the company’s interests being recorded through other comprehensive income. After the adoption of FASB Statement No. 167, the change in value of the company’s investments in these CLOs is reflected in the company’s net income. For the three months ended June 30, 2010, the net impact to the company of its investments in these CLOs was $2.4 million. The Condensed Consolidated Balance Sheet at June 30, 2010, reflects the consolidation of $6.5 billion in assets held and $5.4 billion in debt issued by these CLOs, despite the fact that the assets cannot be used by the company, nor is the company obligated for the debt. Retained earnings appropriated for investors of consolidated investment products of $719.5 million is presented as part of the company’s total equity, reflecting the excess of the consolidated CLOs’ assets over their liabilities, attributable to noncontrolling third-party investors in their consolidated CLOs at June 30, 2010, and includes $130.7 million related to consolidated CLOs acquired as part of the June 1, 2010, acquisition. In accordance with the standard, prior periods have not been restated to reflect the consolidation of these CLOs.

     The majority of the company’s consolidated investment products balances were CLO-related as of June 30, 2010. The collateral assets of the CLOs are held solely to satisfy the obligations of the CLOs. The company has no right to the benefits from, nor does it bear the risks associated with, the collateral assets held by the CLOs, beyond the company’s minimal direct investments in, and management fees generated from, the CLOs. If the company were to liquidate, the collateral assets would not be available to the general creditors of the company, and as a result, the company does not consider them to be company assets. Additionally, the investors in the CLOs have no recourse to the general credit of the company for the notes issued by the CLOs. The company therefore does not consider this debt to be a company liability. The discussion that follows will separate consolidated investment product results of operations from the company’s investment management operations through the use of non-GAAP financial measures. See the Schedule of Non-GAAP Information for additional details and reconciliations of the most directly comparable U.S. GAAP measures to the non-GAAP measures.

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Condensed Consolidating Statements of Income

				Consolidated
	Before			Investment
$ in millions	Consolidation*			Products**			Eliminations			Total
Three months ended June 30, 2010
Total operating revenues		799.3			—			(12.3	)		787.0
Total operating expenses		712.9			15.0			(12.3	)		715.6
Operating income		86.4			(15.0	)		—			71.4
Equity in earnings of unconsolidated affiliates		10.6			—			(0.2	)		10.4
Interest income		1.8			54.3			(1.2	)		54.9
Other investment income/(losses)		(9.3	)		187.2			—			177.9
Interest expense		(14.1	)		(26.8	)		1.2			(39.7	)
Income before income taxes, including gains and losses attributable to noncontrolling interests		75.4			199.7			(0.2	)		274.9
Income tax provision		(36.7	)		—			—			(36.7	)
Net income, including gains and losses attributable to noncontrolling interests		38.7			199.7			(0.2	)		238.2
(Gains)/losses attributable to noncontrolling interests in consolidated entities, net		(0.1	)		(197.3	)		—			(197.4	)
Net income attributable to common shareholders		38.6			2.4			(0.2	)		40.8
				Consolidated
	Before			Investment
$ in millions	Consolidation*			Products			Eliminations			Total
Three months ended June 30, 2009
Total operating revenues		625.3			0.8			(1.0	)		625.1
Total operating expenses		514.6			1.1			(1.0	)		514.7
Operating income		110.7			(0.3	)		—			110.4
Equity in earnings of unconsolidated affiliates		6.5			—			1.0			7.5
Interest income		1.2			—			—			1.2
Other investment income/(losses)		10.0			(48.4	)		—			(38.4	)
Interest expense		(16.5	)		—			—			(16.5	)
Income/(loss) before income taxes, including gains and losses attributable to noncontrolling interests		111.9			(48.7	)		1.0			64.2
Income tax provision		(36.0	)		—			—			(36.0	)
Net income/(loss), including gains and losses attributable to noncontrolling interests		75.9			(48.7	)		1.0			28.2
(Gains)/losses attributable to noncontrolling interests in consolidated entities, net		(0.2	)		47.7			—			47.5
Net income attributable to common shareholders		75.7			(1.0	)		1.0			75.7

*	The Before Consolidation column includes Invesco’s equity interest in the investment products, accounted for as equity method and available-for-sale investments and does not include any other adjustments related to non-GAAP financial measure presentation.
**	The company adopted FASB Statement No. 167 on January 1, 2010, resulting in the consolidation of certain CLOs. In accordance with the standard, prior periods have not been restated to reflect the consolidation of these CLOs. Prior to January 1, 2010, the company was not deemed to be the primary beneficiary of these CLOs.

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Operating Revenues and Net Revenues

     Operating revenues increased by $161.9 million (25.9%) in the three months ended June 30, 2010, to $787.0 million (June 30, 2009: $625.1million). Net revenues increased by $118.9 million (25.3%) in the three months ended June 30, 2010, to $589.0 million (June 30, 2009: $470.1 million). Net revenues are operating revenues less third-party distribution, service and advisory expenses, plus our proportional share of net revenues from joint venture arrangements, plus management fees earned from, less other revenue recorded by, consolidated investment products. See “Schedule of Non-GAAP Information” for additional important disclosures regarding the use of net revenues. A significant portion of our business and managed AUM are based outside of the U.S. The income statements of foreign currency subsidiaries are translated into U.S. dollars, the reporting currency of the company, using average foreign exchange rates. Over the three month period, the U.S. dollar strengthened against the Pound Sterling and Euro, but weakened against the Canadian dollar which impacted our reported revenues for the three months ended June 30, 2010, as compared to the three months ended June 30, 2009. The impact of foreign exchange rate movements resulted in a $6.6 million offset to the increase in operating revenues during the three months ended June 30, 2010. Additionally, our revenues are directly influenced by the level and composition of our AUM as more fully discussed below. Movements in global capital market levels, net new business inflows (or outflows) and changes in the mix of investment products between asset classes and geographies may materially affect our revenues from period to period.

     The main categories of revenues, and the dollar and percentage change between the periods, were as follows:

	Three months ended
	June 30,
$ in millions	2010			2009			$ Change			% Change
Investment management fees		627.9			501.6			126.3			25.2	%
Service and distribution fees		139.4			100.4			39.0			38.8	%
Performance fees		3.5			8.0			(4.5	)		(56.3	)%
Other		16.2			15.1			1.1			7.3	%
Total operating revenues		787.0			625.1			161.9			25.9	%
Third-party distribution, service and advisory expenses		(220.7	)		(166.3	)		(54.4	)		32.7	%
Proportional share of revenues, net of third-party distribution expenses, from joint venture investments		10.4			11.1			(0.7	)		(6.3	)%
Management fees earned from consolidated investment products		12.3			1.0			11.3			1,130.0	%
Other revenues recorded by consolidated investment products		—			(0.8	)		0.8			(100.0	)%
Net revenues		589.0			470.1			118.9			25.3	%

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     The operating results for the three months ended June 30, 2010, include the operating results of the acquired business from the closing date of June 1, 2010. The following table provides an analysis of the estimated impact of the acquired business on the company’s operating results for the three months ended June 30, 2010.

			Acquired		Transaction
	Existing		Business		and
	Invesco		from June 1,		Integration			Q2 2010
$ in millions	Business		2010*		Expenses			Combined
Operating revenues
Investment management fees		591.6		36.3		—			627.9
Service and distribution fees		114.2		25.2		—			139.4
Performance fees		3.5		—		—			3.5
Other		10.7		5.5		—			16.2
Total operating revenues		720.0		67.0		—			787.0
Operating expenses
Employee compensation		244.3		16.2		—			260.5
Third-party distribution, service and advisory		201.7		19.0		—			220.7
Marketing		29.3		5.9		—			35.2
Property, office and technology		52.8		3.0		—			55.8
General and administrative		59.8		4.3		—			64.1
Transaction and integration		—		—		79.3			79.3
Total operating expenses		587.9		48.4		79.3			715.6
Operating income		132.1		18.6		(79.3	)		71.4

* The integration of the acquired business into the existing Invesco business is now largely complete and as a result management does not expect to be able to provide similarly segregated information for future periods.

Investment management fees

     Investment management fees are derived from providing professional services to manage client accounts and include fees earned from retail mutual funds, unit trusts, investment companies with variable capital (ICVCs), exchange-traded funds, investment trusts and institutional and private wealth management advisory contracts. Investment management fees for products offered in the retail distribution channel are generally calculated as a percentage of the daily average asset balances and therefore vary as the levels of AUM change resulting from inflows, outflows and market movements. Investment management fees for products offered in the institutional and private wealth management distribution channels are calculated in accordance with the underlying investment management contracts and also vary in relation to the level of client assets managed.

Investment management fees increased by $126.3 million (25.2%) in the three months ended June 30, 2010, to $627.9 million (June 30, 2009: $501.6 million) due to the acquisition, increases in average AUM, primarily retail AUM and changes in the mix of AUM between asset classes, offset by the impact of foreign exchange rate movement. The June 1, 2010, acquisition contributed to an increase in investment management fees of $36.3 million during the period. The June 1, 2010, acquired business added $114.6 billion in AUM at that date, with an expected effective fee rate of approximately 47 basis points. Average AUM for the three months ended June 30, 2010, increased 19.7% to $480.5 billion from $401.5 billion for the three months ended June 30, 2009. Average long-term AUM, which generally earn higher fee rates than money market AUM, for the three months ended June 30, 2010, increased 33.0% to $413.4 billion from $310.9 billion for the three months ended June 30, 2009, while average institutional money market AUM decreased 25.9% to $67.1 billion at June 30, 2010, from $90.6 billion for the three months ended June 30, 2009. The increase in average AUM and average long-term AUM includes the impact of the June 1, 2010, acquired business. Our equity AUM generally earns a higher net revenue rate than money market AUM. At June 30, 2010, equity AUM were $263.2 billion, representing 47% of our total AUM at that date; whereas at June 30, 2009, equity AUM were $155.6 billion, representing 37.5% of our total AUM at that date. See the company’s disclosures regarding the changes in AUM during the three months ended June 30, 2010, in the “Assets Under Management” section of the “Results of Operations for the three months ended June 30, 2010, compared with the three months ended

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June 30, 2009,” above for additional information regarding the movements in AUM. Foreign exchange rate movements led to a decrease in investment management fees of $4.3 million during the three months ended June 30, 2010.

     Additionally, the change in investment management fee revenues reflects the adoption of FASB Statement No. 167, now encompassed in ASC Topic 810, “Consolidation,” on January 1, 2010, which resulted in the consolidation of certain CLOs with total assets of $6.5 billion at June 30, 2010. As part of the consolidation, management fees of earned from consolidated CLOs and other products of $12.3 million were eliminated from the company’s operating revenues for the three months ended June 30, 2010. In accordance with the standard, prior periods have not been restated to reflect the consolidation of these CLOs. The company uses a non-GAAP financial measure, net revenues, to add back these eliminated management fees as part of net revenues, as the company has earned them for providing investment management services to the consolidated CLOs. See “Schedule of Non-GAAP Information” for the reconciliation of operating revenues to net revenues.

Service and distribution fees

     Service fees are generated through fees charged to cover several types of expenses, including fund accounting fees and other maintenance costs for mutual funds, unit trusts and ICVCs, and administrative fees earned from closed-ended funds. Service fees also include transfer agent fees, which are fees charged to cover the expense of processing client share purchases and redemptions, call center support and client reporting. U.S. distribution fees can include 12b-1 fees earned from certain mutual funds to cover allowable sales and marketing expenses for those funds and also include asset-based sales charges paid by certain mutual funds for a period of time after the sale of those funds. Distribution fees typically vary in relation to the amount of client assets managed. Generally, retail products offered outside of the U.S. do not generate a separate distribution fee, as the quoted management fee rate is inclusive of these services.

     In the three months ended June 30, 2010, service and distribution fees increased by $39.0 million (38.8%) to $139.4 million (June 30, 2009: $100.4 million) due to increases in average AUM during the period. Additionally, the June 1, 2010, acquisition contributed $25.2 million of the increase in service and distribution fees during the three months ended June 30, 2010.

Performance fees

     Performance fee revenues are generated on certain management contracts when performance hurdles are achieved. Such fee revenues are recorded in operating revenues as of the performance measurement date, when the contractual performance criteria have been met and when the outcome of the transaction can be measured reliably in accordance with Method 1 of ASC Topic 605-20-S99, “Revenue Recognition — Services — SEC Materials.” Cash receipt of earned performance fees occurs after the measurement date. The performance measurement date is defined in each contract in which incentive and performance fee revenue agreements are in effect, and therefore we have performance fee arrangements that include monthly, quarterly and annual measurement dates. Given the uniqueness of each transaction, performance fee contracts are evaluated on an individual basis to determine if revenues can and should be recognized. Performance fees are not recorded if there are any future performance contingencies. If performance arrangements require repayment of the performance fee for failure to perform during the contractual period, then performance fee revenues are recognized no earlier than the expiration date of these terms. Performance fees will fluctuate from period to period and may not correlate with general market changes, since most of the fees are driven by relative performance to the respective benchmark rather than by absolute performance. Additionally, of our $557.7 billion in AUM at June 30, 2010, only approximately $31.6 billion, or 5.7%, could potentially earn performance fees. Of the $114.6 billion AUM acquired on June 1, 2010, through the acquisition, $2.7 billion, or 2.4%, earn performance fees.

     In the three months ended June 30, 2010, performance fees decreased by $4.5 million (56.3%) to $3.5 million (June 30, 2009: $8.0 million). The performance fees generated in the three months ended June 30, 2010, arose primarily due to products managed in our real estate group.

Other revenues

     Other revenues include fees derived primarily from transaction commissions earned upon the sale of new investments into certain of our funds and fees earned upon the completion of transactions in our direct real estate and private equity asset groups. Real estate transaction fees are derived from commissions earned through the buying and selling of properties. Private equity transaction fees include commissions associated with the restructuring of, and fees from providing advice to, portfolio companies held by the funds. These transaction fees are recorded in our financial statements on the date when the transactions are legally closed.

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     Following the June 1, 2010, acquisition, the company is the sponsor of unit investment trust products (UITs). In its capacity as sponsor of UITs, the company earns other revenues related to transactional sales charges resulting from the sale of UIT products and from the difference between the purchase or bid and offer price of securities temporarily held to form new UIT products. These revenues are recorded net of concessions to dealers who distribute UITs to investors.

     In the three months ended June 30, 2010, other revenues increased by $1.1 million (7.3%) to $16.2 million (June 30, 2009: $15.1 million). Other revenues included $5.5 million in UIT revenues during the period, which were offset by a $1.6 million decline in transaction commissions, and lower front-end fees earned in the U.K. of $1.7 million.

Third-party distribution, service and advisory expenses

     Third-party distribution, service and advisory expenses include periodic “renewal” commissions paid to brokers and independent financial advisors for their continuing oversight of their clients’ assets, over the time they are invested, and are payments for the servicing of client accounts. Renewal commissions are calculated based upon a percentage of the AUM value. Third-party distribution expenses also include the amortization of upfront commissions paid to broker-dealers for sales of fund shares with a contingent deferred sales charge (a charge levied to the investor for client redemption of AUM within a certain contracted period of time). The distribution commissions are amortized over the redemption period. Also included in third-party distribution, service and advisory expenses are sub-transfer agency fees that are paid to third parties for processing client share purchases and redemptions, call center support and client reporting. Third-party distribution, service and advisory expenses may increase or decrease at a rate different from the rate of change in service and distribution fee revenues due to the inclusion of distribution, service and advisory expenses for the U.K. and Canada, where the related revenues are recorded as investment management fee revenues, as noted above.

     Third-party distribution, service and advisory expenses increased by $54.4 million (32.7%) in the three months ended June 30, 2010, to $220.7 million (June 30, 2009: $166.3 million), consistent with the increases in investment management and service and distribution fee revenues. The acquired business contributed $19.0 million of the increase in third-party distribution, service and advisory expenses during the period.

Proportional share of revenues, net of third-party distribution expenses, from joint venture investments

     Management believes that the addition of our proportional share of revenues, net of third-party distribution expenses, from joint venture arrangements should be added to operating revenues to arrive at net revenues, as it is important to evaluate the contribution to the business that our joint venture arrangements are making. See “Schedule of Non-GAAP Information” for additional disclosures regarding the use of net revenues. The company’s most significant joint venture arrangement is our 49.0% investment in Invesco Great Wall Fund Management Company Limited (the “Invesco Great Wall” joint venture).

     Our proportional share of revenues, net of third-party distribution expenses decreased by $0.7 million (6.3%) to $10.4 million in the three months ended June 30, 2010 (June 30, 2009: $11.1 million), driven by decreases in average AUM during the period in the Invesco Great Wall joint venture. Our share of the Invesco Great Wall joint venture’s average AUM in the three months ended June 30, 2010, was $3.5 billion (June 30, 2009: $3.6 billion).

     Management fees earned from consolidated investment products

     Management believes that the consolidation of investment products may impact a reader’s analysis of our underlying results of operations and could result in investor confusion or the production of information about the company by analysts or external credit rating agencies that is not reflective of the underlying results of operations and financial condition of the company. Accordingly, management believes that it is appropriate to adjust operating revenues for the impact of consolidated investment products in calculating net revenues. As management and performance fees earned by Invesco from the consolidated products are eliminated upon consolidation of the investment products, management believes that it is appropriate to add these operating revenues back in the calculation of net revenues. See “Schedule of Non-GAAP Information” for additional disclosures regarding the use of net revenues.

     Management fees earned from consolidated investment products increased by $11.3 million (1,130.0%) to $12.3 million in the three months ended June 30, 2010 (June 30, 2009: $1.0 million). The increase reflects the adoption of FASB Statement No. 167, now encompassed in ASC Topic 810, “Consolidation,” on January 1, 2010, which primarily resulted in the consolidation of certain CLOs with total assets of $6.5 billion at June 30, 2010. As part of the CLO consolidation, management fees of $17.6 million were eliminated from the company’s operating revenues for the six months ended June 30, 2010. In accordance with the standard, prior periods have not been restated to reflect the consolidation of these CLOs.

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Operating revenues of consolidated investment products

     Operating revenues of consolidated investment products are included in U.S. GAAP operating revenues resulting from the consolidation of investment products into the company’s results of operations. Management believes that this consolidation could impact a reader’s analysis of our underlying results of operations. Therefore, management believes that it is appropriate to deduct operating revenues of consolidated investment products in calculating net revenues. See “Schedule of Non-GAAP Information” for additional disclosures regarding the use of net revenues. The change in operating revenues of consolidated investment products is discussed above.

Operating Expenses

     During the three months ended June 30, 2010, operating expenses increased by $200.9 million (39.0%) to $715.6 million (June 30, 2009: $514.7 million). As discussed above, a significant portion of our business and managed AUM are based outside of the U.S. The income statements of foreign currency subsidiaries are translated into U.S. dollars, the reporting currency of the company, using average foreign exchange rates. Over the three months, the U.S. dollar strengthened against the Pound Sterling and Euro, and weakened against the Canadian Dollar, which impacted our reported expenses for the three months ended June 30, 2010, as compared to the three months ended June 30, 2009. The impact of foreign exchange rate movements resulted in a $3.0 million decrease in operating expenses during the three months ended June 30, 2010.

     The main categories of operating expenses, and the dollar and percentage changes between periods, are as follows:

	Three months ended
	June 30,
$ in millions	2010		2009		$ Change		% Change
Employee compensation		260.5		229.0		31.5		13.8	%
Third-party distribution, service and advisory		220.7		166.3		54.4		32.7	%
Marketing		35.2		23.9		11.3		47.3	%
Property, office and technology		55.8		48.6		7.2		14.8	%
General and administrative		64.1		46.9		17.2		36.7	%
Transaction and integration		79.3		—		79.3		N/A
Total operating expenses		715.6		514.7		200.9		39.0	%

     The table below sets forth these cost categories as a percentage of total operating expenses and operating revenues, which we believe provides useful information as to the relative significance of each type of expense:

			% of Total			% of					% of Total			% of
Three months ended:	June 30,		Operating			Operating			June 30,		Operating			Operating
$ in millions	2010		Expenses			Revenues			2009		Expenses			Revenues
Employee compensation		260.5		36.4	%		33.1	%		229.0		44.5	%		36.6	%
Third-party distribution, service and advisory		220.7		30.8	%		28.0	%		166.3		32.3	%		26.6	%
Marketing		35.2		4.9	%		4.5	%		23.9		4.6	%		3.8	%
Property, office and technology		55.8		7.8	%		7.1	%		48.6		9.4	%		7.8	%
General and administrative		64.1		9.0	%		8.1	%		46.9		9.2	%		7.5	%
Transaction and integration		79.3		11.1	%		10.1	%		—		N/A			N/A
Total operating expenses		715.6		100.0	%		90.9	%		514.7		100.0	%		82.3	%

Employee Compensation

     Employee compensation includes salary, cash bonuses and share-based payment plans designed to attract and retain the highest caliber employees. Employee staff benefits plan costs and payroll taxes are also included in employee compensation.

     Employee compensation increased $31.5 million (13.8%) to $260.5 million in the three months ended June 30, 2010, (June 30, 2009: $229.0 million), including an increase of approximately $16.2 million related to the June 1, 2010, acquisition. Base salaries and variable compensation increased $23.3 million during the three months ended June 30, 2010, from the three months ended June 30, 2009, due to incremental costs associated with the June 1, 2010, acquisition, the impact of annual merit increases, and the increase in variable compensation accruals to reflect the overall underlying core earnings growth of the company from the three months ended

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June 30, 2009. Also included in compensation expenses during the three months ended June 30, 2010, are share-based payment costs of $29.4 million, compared to $20.2 million during the three months ended June 30, 2009, an increase of $9.5 million, also due to the incremental impact of the acquisition and to the additional amortization of share awards granted February 28, 2010, as part of the company’s annual share award cycle. Slightly offsetting these increases in employee compensation during the three months ended June 30, 2010, is a decrease of $1.3 million caused by foreign exchange rate movements from the three months ended June 30, 2009. Additionally, employee compensation costs for the three months ended June 30, 2010 and 2009, included $5.0 million of prepaid compensation amortization expenses related to the 2006 acquisition of W.L. Ross & Co. This expense amortization will continue through 2010, and the acquisition-related asset will be fully amortized by the third quarter of 2011.

     Headcount at June 30, 2010, was 5,421 (June 30, 2009: 5,084). The June 1, 2010, acquisition added 580 employees at that date.

Third-Party Distribution, Service and Advisory Expenses

     Third-party distribution, service and advisory expenses are discussed above in the operating and net revenues section.

Marketing

     Marketing expenses include marketing support payments, which are payments made to distributors of certain of our retail products over and above the 12b-1 distribution payments. These fees are contracted separately with each distributor. Marketing expenses also include the cost of direct advertising of our products through trade publications, television and other media, and public relations costs, such as the marketing of the company’s products through conferences or other sponsorships, and the cost of marketing-related employee travel.

     Marketing expenses increased by $11.3 million (47.3%) in the three months ended June 30, 2010, to $35.2 million (June 30, 2009: $23.9 million) primarily due to a market-driven increase in marketing support payments of $3.3 million as compared to the three months ended June 30, 2009. Additionally, travel and sales literature/research expenses increased $1.2 million and $1.6 million, respectively, during the three months ended June 30, 2010, from the three months ended June 30, 2009. The June 1, 2010, acquisition contributed $5.9 million to the increase in marketing expenses.

Property, Office and Technology

     Property, office and technology expenses include rent and utilities for our various leased facilities, depreciation of company-owned property and capitalized computer equipment costs, minor non-capitalized computer equipment and software purchases and related maintenance payments, and costs related to externally provided operations, technology, and other back office management services.

     Property, office and technology expenses increased by $7.2 million (14.8%) to $55.8 million in the three months ended June 30, 2010 (June 30, 2009: $48.6 million). The June 1, 2010, acquisition increased property, office and technology expenses by $3.0 million. The remaining increase of $4.2 million was the result of higher depreciation on purchased technology and increased outsourcing costs in the U.K. and Hyderabad.

General and Administrative

     General and administrative expenses include professional services costs, such as information service subscriptions, consulting fees, professional insurance costs, audit, tax and legal fees, non-marketing related employee travel expenditures, recruitment and training costs, and the amortization of certain intangible assets.

     General and administrative expenses increased by $17.2 million (36.7%) to $64.1 million in the three months ended June 30, 2010 (June 30, 2009: $46.9 million). Included in general and administrative expenses for the three months ended June 30, 2010, is $8.9 million ($6.0 million net of tax and reducing diluted EPS by $0.01 per share) representing fund reimbursement costs from the correction of historical foreign exchange allocations. Travel expenses increased $3.1 million during the three months ended June 30, 2010, from the three months ended June 30, 2009, driven by higher levels of business activity. The June 1, 2010, acquisition contributed $4.3 million to the increase in general and administrative expenses during the period.

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     During the three months ended June 30, 2010, intangible amortization expense increased $2.0 million resulting from additional amortization of the various finite-lived intangible assets that arose from the June 1, 2010, acquisition. Estimated amortization expense for all of the company’s intangible assets, for each of the five succeeding years based upon the company’s intangible assets at June 30, 2010, is included in Part I, “Financial Information, Item 1. Financial Statements, Note 5, Intangible Assets.”

Transaction and integration

     Transaction and integration expenses include acquisition-related charges incurred during the period to effect a business combination, including legal, regulatory, advisory, valuation, and other professional or consulting fees, general and administrative costs, including travel costs related to the transaction and the costs of temporary staff involved in executing the transaction, and post-closing costs of integrating the acquired business into the company’s existing operations including incremental costs associated with achieving synergy savings.

     Transaction and integration charges were $79.3 million in the three months ended June 30, 2010 (three months ended June 30, 2009: none) and relate to the acquired business. The acquisition was announced in October 2009 and closed on June 1, 2010. Transaction and integration expenses include $18.5 million of employee compensation costs, including $14.5 million of severance costs, $6.1 million for the proxy solicitation of fund investors to approve a change in fund advisor, $27.5 million for transition of the Van Kampen funds to Invesco’s platform and governance structure, $4.7 million related to office space including onerous lease charges associated with vacating office space in Houston as we consolidate operations, $5.4 million of sales and marketing costs as we print re-branded fund prospectuses, $12.8 million of professional services, principally legal, consultancy and insurance, and $4.3 million in technology contractor and travel costs. As previously announced, these costs in aggregate are currently expected to be less than $175 million and include $10.8 million incurred in 2009 with the remainder being incurred in 2010 and 2011.

Operating Income, Adjusted Operating Income, Operating Margin and Adjusted Operating Margin

     Operating income decreased by $39.0 million (35.3%) to $71.4 million in the three months ended June 30, 2010 (June 30, 2009: $110.4 million), as the increase in operating expenses, primarily due to transaction and integration expenses, was greater than the increase in operating revenues during the period. As a result of the decline in operating income, operating margin (operating income divided by operating revenues) declined from 17.7% in the three months ended June 30, 2009, to 9.1% in the three months ended June 30, 2010. Adjusted operating income (operating income plus our proportional share of the operating income from joint venture arrangements, transaction and integration charges, amortization of acquisition-related prepaid compensation and other intangibles, and the operating income impact of the consolidation of investment products), however, increased by $62.2 million (49.2%) to $188.7 million in the three months ended June 30, 2010, from $126.5 million in the three months ended June 30, 2009. Adjusted operating margin is equal to adjusted operating income divided by net revenues. Net revenues are equal to operating revenues less third-party distribution, service and advisory expenses, plus our proportional share of the net revenues from our joint venture arrangements, plus management fees earned from, less other revenue recorded by, consolidated investment products. Adjusted operating margin increased to 32.0% in the three months ended June 30, 2010, from 26.9% in the three months ended June 30, 2009. See “Schedule of Non-GAAP Information” for a reconciliation of operating revenues to net revenues, a reconciliation of operating income to adjusted operating income and additional important disclosures regarding net revenues, adjusted operating income and adjusted operating margin.

Other Income and Expenses

     The main categories of other income and expenses, and the dollar and percentage changes between periods are as follows:

	Three months ended
	June 30,
$ in millions	2010			2009			$ Change			% Change
Equity in earnings of unconsolidated affiliates		10.4			7.5			2.9			38.7	%
Interest income		1.8			1.2			0.6			50.0	%
Interest income of consolidated investment products		53.1			—			53.1			—	%
Gains/(losses) of consolidated investment products, net		187.2			(48.4	)		235.6			N/A
Interest expense		(14.1	)		(16.5	)		2.4			(14.5	)%
Interest expense of consolidated investment products		(25.6	)		—			(25.6	)		—	%
Other gains and losses, net		(9.3	)		10.0			(19.3	)		N/A
Total other income and expenses		203.5			(46.2	)		249.7			N/A

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Equity in earnings of unconsolidated affiliates

     Equity in earnings of unconsolidated affiliates increased by $2.9 million (38.7%) to $10.4 million in the three months ended June 30, 2010 (June 30, 2009: $7.5 million). Included in equity in earnings from affiliates is our share of the income from our joint ventures in China, which declined $1.5 million to $6.3 million in the three months ended June 30, 2010, from $7.8 million earned during the three months ended June 30, 2009. This decline was offset by our share of the valuation changes in certain partnership investments that increased by $4.7 million for these comparative periods. Declines in equity in earnings from our joint ventures are due to declines in average AUM in those entities during the period.

Interest income and interest expense

     Interest income increased by $0.6 million (50.0%) to $1.8 million in the three months ended June 30, 2010 (June 30, 2009: $1.2 million). Higher yields during the three months ended June 30, 2010, offset lower cash and cash equivalent balances, resulting in an increase in interest income. Interest expense decreased by $2.4 million (14.5%) to $14.1 million in the three months ended June 30, 2010 (June 30, 2009: $16.5 million), resulting from a lower average debt balance during the three months ended June 30, 2010, versus the comparative period.

Interest income and interest expense of consolidated investment products

     Interest income of consolidated investment products results from interest generated by the collateral assets held by consolidated CLOs, which is used to satisfy the interest expenses of the notes issued by the consolidated CLOs and other operating expense requirements, including the payment of the management and performance fees to the company as investment manager. See Part I, Item 1, Financial Statements — Note 12, “Consolidated Investment Products,” for additional details.

     In the three months ended June 30, 2010, interest income and interest expense of consolidated investment products were $53.1 million and $25.6 million, respectively. The balances reflect the adoption of FASB Statement No. 167, now encompassed in ASC Topic 810, “Consolidation,” on January 1, 2010, which resulted in the consolidation of certain CLOs with total assets of $6.5 billion at June 30, 2010. In accordance with the standard, prior periods have not been restated to reflect the consolidation.

Gains and losses of consolidated investment products, net income impact of consolidated investment products, and noncontrolling interests in consolidated entities

     Included in other income and expenses are gains and losses of consolidated investment products, net, which are driven by realized and unrealized gains and losses of underlying investments held by consolidated investment products. In the three months ended June 30, 2010, other gains and losses of consolidated investment products were a net gain of $187.2 million, as compared to a net loss of $48.4 million in the three months ended June 30, 2009. The increase primarily reflects the adoption of FASB Statement No. 167, now encompassed in ASC Topic 810, “Consolidation,” on January 1, 2010, which resulted in the consolidation of certain CLOs with total assets of $6.5 billion at June 30, 2010. Collateral assets and notes issued by consolidated CLOs are held at fair value, and the unrealized and realized gains and losses of the collateral assets and notes are reflected in this line item. In accordance with the standard, prior periods have not been restated to reflect the consolidation of these CLOs. As these gains and losses are largely attributable to non-affiliated third party investors in consolidated investment products, it is not practicable for the company to analyze the components of the net gains and losses.

     As illustrated in the Condensed Consolidating Statements of Income for the three months ended June 30, 2010 and 2009, at the beginning of this Results of Operations section, the consolidation of investment products during the three months ended June 30, 2010, resulted in a net income impact of $199.5 million before attribution to noncontrolling interests. Invesco invests in only a portion of these products, and as a result this net income is offset by noncontrolling interests of $197.3 million, resulting in a net income impact to the company of $2.2 million. Net losses of consolidated investment products for the three months ended June 30, 2009, were $47.7 million, and were largely offset by noncontrolling interests of consolidated entities of $47.5 million.

     Non-controlling interests in consolidated entities represent the profit or loss amounts attributed to third party investors in consolidated investment products. The amounts recorded are determined by comparisons of the underlying investments held by the company to the total investment products’ net assets or beneficial interests. Movements in amounts attributable to non-controlling interests in consolidated entities on the company’s Condensed Consolidated Statements of Income generally offset the gains and losses, interest income and interest expense of consolidated investment products.

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Other gains and losses, net

     Other gains and losses, net were a net loss of $9.3 million in the three months ended June 30, 2010, as compared to a net gain of $10.0 million in the three months ended June 30, 2009. Included in other gains and losses is a net loss of $5.6 million as a result of the depreciation of assets held for our deferred compensation plans (2009: $0.0 million net gain), and $4.0 million of other-than-temporary impairment charges related to the company’s seed money investments (2009: $0.1 million). In the three months ended June 30, 2010, we incurred $0.1 million in net foreign exchange losses (2009: $7.2 million in net foreign exchange gains).

Income Tax Expense

     Our subsidiaries operate in several taxing jurisdictions around the world, each with its own statutory income tax rate. As a result, our effective tax rate will vary from year to year depending on the mix of the profits and losses of our subsidiaries. The majority of our profits are earned in the U.S., Canada and the U.K. The current U.K. statutory tax rate is 28%, the Canadian statutory tax rate is 31% and the U.S. Federal statutory tax rate is 35%.

     Our effective tax rate, excluding noncontrolling interests in consolidated entities, for the three months ended June 30, 2010, was 47.4%, up from 32.2% for the three months ended June 30, 2009. The effective tax rate for the three months ended June 30, 2010, included the impact of non-deductible transaction and integration costs related to the acquired business.

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Results of Operations for the Six months ended June 30, 2010, Compared with the Six months ended June 30, 2009

Assets Under Management

     AUM at June 30, 2010, were $557.7 billion (March 31, 2010: $457.7 billion; June 30, 2009: $414.4 billion). The June 1, 2010, acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments (the “acquired business” or the “acquisition”), added $114.6 billion in AUM at that date. During the six months ended June 30, 2010, net inflows increased AUM by $17.5 billion, while negative market movements decreased AUM by $14.5 billion. We also experienced net outflows in institutional money market funds of $11.5 billion, and decreases in AUM of $7.9 billion due to changes in foreign exchange rates during the six months ended June 30, 2010. During the six months ended June 30, 2009, net inflows increased AUM by $6.1 billion, and positive market movements increased AUM by $11.7 billion. We also experienced net inflows in institutional money market funds of $10.3 billion, and increases in AUM of $9.2 billion due to changes in foreign exchange rates during the six months ended June 30, 2009. Average AUM during the six months ended June 30, 2010, were $465.0 billion, compared to $377.9 billion for the six months ended June 30, 2009.

     Net flows increased AUM by $17.5 billion during the six months ended June 30, 2010 (six months ended June 30, 2009: $6.1 billion), driven by net inflows into our Institutional distribution channel of $18.3 billion, which resulted primarily from the $15.8 billion passive mandate in Japan, a post-close direct consequence of the newly acquired business. Our retail distribution channel experienced net outflows of $1.7 billion during the six months ended June 30, 2010, primarily in the alternatives asset class, while our high net worth distribution channel experienced net inflows of $0.9 billion.

     Market declines led to a $14.5 billion decrease in AUM during the six months ended June 30, 2010, compared to an increase of $11.7 billion in the comparative 2009 period. Of the total decrease in AUM resulting from market declines during the six months ended June 30, 2010, $14.8 billion of this decrease was due to the change in value of our equity asset class across all of our business components. During the six months ended June 30, 2010, our equity AUM decreased in line with the decreases in equity markets globally from June 1, 2010. As discussed in the “Executive Overview” section of this Management’s Discussion and Analysis, the S&P 500 and the FTSE 100 indices decreased 8.5% and 8.9%, respectively, during the six months ended June 30, 2010. The decline in equity valuations impacted our retail distribution channel the most significantly. Additionally, the decrease in equity valuations was $14.8 billion across our AUM grouped by client domicile. In contrast, of the total increase in AUM resulting from market increases during the six months ended June 30, 2009, $9.7 billion of this increase was due to the change in value of our equity asset class.

     Foreign exchange rate movements led to a $7.9 billion decrease in AUM during the six months ended June 30, 2010, compared to a $9.2 billion increase in the comparative 2009 period. The impact of the change in foreign exchange rates in the six months ended June 30, 2010, was driven primarily by the marginal weakening of the Pounds Sterling relative to the U.S. Dollar, which was reflected in the translation of our Pounds Sterling-based AUM into U.S. Dollars, the marginal weakening of the Canadian Dollar relative to the U.S. Dollar, which was reflected in the translation of our Canadian Dollar-based AUM into U.S. Dollars, and the marginal weakening of the Euro relative to the U.S. Dollar, which was reflected in the translation of our Euro-based AUM into U.S. Dollars. In contrast, the impact of the change in foreign exchange rates in the six months ended June 30, 2009, which led to an increase in AUM during that period of $9.2 billion, was driven by more significant strengthening of the Pounds Sterling, Canadian Dollar, and Euro to the U.S. Dollar.

     The table below illustrates the spot foreign exchange rates for translation into the U.S. Dollar, the reporting currency of the company, at June 30, 2010 and 2009, as compared with the rates that existed at December 31, 2009 and 2008:

	June 30, 2010		December 31, 2009		June 30, 2009		December 31, 2008
Pounds Sterling ($  per £)		1.50		1.61		1.65		1.45
Canadian Dollar (CAD per $)		1.06		1.05		1.16		1.23
Euro ($  per Euro)		1.23		1.43		1.40		1.39

     Net revenue yield increased 2.0 basis points to 48.7 basis points in the six months ended June 30, 2010, from the six months ended June 30, 2009, level of 46.7 basis points, resulting from a 4.5% increase in net revenues and a 23.0% increase in average AUM from the six months ended June 30, 2009. The June 1, 2010, acquired business added $114.6 billion in AUM at that date, with an expected effective fee rate of approximately 47 basis points. Market driven changes in our asset mix significantly impact our net revenue yield calculation. Our equity AUM generally earns a higher net revenue rate than money market AUM. At June 30, 2010, equity AUM were

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$263.2 billion, representing 47% of our total AUM at that date; whereas at June 30, 2009, equity AUM were $155.6 billion, representing 37.5% of our total AUM at that date.

     Gross revenue yield on AUM increased 2.6 basis points to 65.3 basis points in the six months ended June 30, 2010, from the six months ended June 30, 2009, level of 62.7 basis points. Gross revenue yield, the most comparable U.S. GAAP-based measure to net revenue yield, is not considered a meaningful effective fee rate measure. The numerator of the gross revenue yield measure, operating revenues, excludes the management fees earned from consolidated investment products; however the denominator of the measure includes the AUM of these investment products. Therefore, the gross revenue yield measure is not considered representative of the company’s true effective fee rate from AUM. The company evaluates net revenue yield instead. See “Schedule of Non-GAAP Information” for a reconciliation of operating revenues (gross revenues) to net revenues.

     Changes in AUM were as follows:

				AUM ex									AUM ex
				ETF, UIT &			ETF, UIT &						ETF, UIT			ETF, UIT &
	Total AUM			Passive			Passive			Total AUM			& Passive			Passive
$ in billions	2010			2010			2010			2009			2009			2009
December 31		459.5			406.5			53.0			377.1			346.6			30.5
Long-term inflows		77.4			38.3			39.1			48.1			29.7			18.4
Long-term outflows		(59.9	)		(36.0	)		(23.9	)		(42.0	)		(27.5	)		(14.5	)
Long-term net flows		17.5			2.3			15.2			6.1			2.2			3.9
Net flows in money market funds		(11.5	)		(11.5	)		—			10.3			10.3			—
Market gains and losses/reinvestment		(14.5	)		(11.9	)		(2.6	)		11.7			7.3			4.4
Acquisition		114.6			100.9			13.7			—			—			—
Foreign currency translation		(7.9	)		(7.8	)		(0.1	)		9.2			9.0			0.2
June 30		557.7			478.5			79.2			414.4			375.4			39.0
Average long-term AUM		393.5			338.9			54.6			289.5			258.4			31.1
Average institutional money market AUM		71.5			71.5			—			88.4			88.4			—
Average AUM		465.0			410.4			54.6			377.9			346.8			31.1
Gross revenue yield on AUM(1)		65.3	bps		72.3	bps		13.0	bps		62.7	bps		67.3	bps		12.0	bps
Gross revenue yield on AUM before performance fees(1)		65.1	bps		72.1	bps		13.0	bps		61.7	bps		66.2	bps		12.0	bps
Net revenue yield on AUM(2)		48.7	bps		53.5	bps		13.0	bps		46.7	bps		49.8	bps		12.0	bps
Net revenue yield on AUM before performance fees(2)		48.5	bps		53.3	bps		13.0	bps		45.7	bps		48.7	bps		12.0	bps

(1)

Gross revenue yield on AUM is equal to annualized total operating revenues divided by average AUM, excluding joint venture (JV) AUM. Our share of the average AUM in the six months ended June 30, 2010, for our JVs in China was $3.6 billion (six months ended June 30, 2009 $3.4 billion). It is appropriate to exclude the average AUM of our JVs for purposes of computing gross revenue yield on AUM, because the revenues resulting from these AUM are not presented in our operating revenues. Under U.S. GAAP, our share of the pre-tax earnings of the JVs is recorded as equity in earnings of unconsolidated affiliates on our Condensed Consolidated Statements of Income.

(2)

Net revenue yield on AUM is equal to annualized net revenues divided by average AUM. See “Schedule of Non-GAAP Information” for a reconciliation of operating revenues to net revenues.

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     Our AUM by channel, by asset class, and by client domicile were as follows:

     Total AUM by Channel⁽¹⁾

										Private
										Wealth
$ in billions	Total			Retail			Institutional			Management
December 31, 2009 AUM(2)		459.5			239.8			204.5			15.2
Long-term inflows		77.4			47.6			27.9			1.9
Long-term outflows		(59.9	)		(49.3	)		(9.6	)		(1.0	)
Long-term net flows		17.5			(1.7	)		18.3			0.9
Net flows in money market funds		(11.5	)		—			(11.5	)		—
Market gains and losses/reinvestment		(14.5	)		(11.1	)		(2.7	)		(0.7	)
Acquisition		114.6			105.1			9.5			—
Foreign currency translation		(7.9	)		(6.1	)		(1.8	)		—
June 30, 2010 AUM		557.7			326.0			216.3			15.4
December 31, 2008 AUM(2)		377.1			166.4			197.3			13.4
Long-term inflows		48.1			37.6			7.5			3.0
Long-term outflows		(42.0	)		(30.8	)		(8.3	)		(2.9	)
Long-term net flows		6.1			6.8			(0.8	)		0.1
Net flows in money market funds		10.3			—			10.3			—
Market gains and losses/reinvestment		11.7			10.7			0.7			0.3
Foreign currency translation		9.2			8.2			1.0			—
June 30, 2009 AUM		414.4			192.1			208.5			13.8

     ETF, UIT & Passive AUM by Channel⁽¹⁾

										Private
										Wealth
$ in billions	Total			Retail			Institutional			Management
December 31, 2009 AUM		53.0			48.0			5.0			—
Long-term inflows		39.1			23.1			16.0			—
Long-term outflows		(23.9	)		(23.9	)		—			—
Long-term net flows		15.2			(0.8	)		16.0			—
Net flows in money market funds		—			—			—			—
Market gains and losses/reinvestment		(2.6	)		(3.4	)		0.8			—
Acquisition		13.7			13.7			—			—
Foreign currency translation		(0.1	)		—			(0.1	)		—
June 30, 2010 AUM		79.2			57.5			21.7			—
December 31, 2008 AUM		30.5			27.1			3.4			—
Long-term inflows		18.4			18.4			—			—
Long-term outflows		(14.5	)		(14.5	)		—			—
Long-term net flows		3.9			3.9			—			—
Net flows in money market funds		—			—			—			—
Market gains and losses/reinvestment		4.4			4.3			0.1			—
Foreign currency translation		0.2			—			0.2			—
June 30, 2009 AUM		39.0			35.3			3.7			—

     See accompanying notes to these AUM tables on the following page.

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     Total AUM by Asset Class⁽³⁾

							Fixed						Money
$ in billions	Total			Equity			Income			Balanced			Market			Alternatives(4)
December 31, 2009 AUM(2)		459.5			192.6			76.2			39.9			83.5			67.3
Long-term inflows		77.4			53.3			12.3			3.9			0.9			7.0
Long-term outflows		(59.9	)		(36.6	)		(9.2	)		(3.9	)		(1.0	)		(9.2	)
Long-term net flows		17.5			16.7			3.1			—			(0.1	)		(2.2	)
Net flows in money market funds		(11.5	)		—			—			—			(11.5	)		—
Market gains and losses/reinvestment		(14.5	)		(14.8	)		3.3			(0.9	)		—			(2.1	)
Acquisition		114.6			73.7			37.8			0.3			0.6			2.2
Foreign currency translation		(7.9	)		(5.0	)		(1.1	)		(1.1	)		—			(0.7	)
June 30, 2010 AUM		557.7			263.2			119.3			38.2			72.5	(3)		64.5
December 31, 2008 AUM(2)		377.1			140.6			61.5			31.7			84.2			59.1
Long-term inflows		48.1			24.4			9.4			4.4			1.6			8.3
Long-term outflows		(42.0	)		(24.9	)		(6.0	)		(4.4	)		(1.9	)		(4.8	)
Long-term net flows		6.1			(0.5	)		3.4			—			(0.3	)		3.5
Net flows in money market funds		10.3			—			—			—			10.3			—
Market gains and losses/reinvestment		11.7			9.7			2.3			2.1			(0.1	)		(2.3	)
Foreign currency translation		9.2			5.8			1.3			1.2			0.2			0.7
June 30, 2009 AUM		414.4			155.6			68.5			35.0			94.3			61.0

     ETF, UIT & Passive AUM by Asset Class⁽³⁾

							Fixed					Money
$ in billions	Total			Equity			Income			Balanced		Market		Alternatives(4)
December 31, 2009 AUM		53.0			31.1			4.0			—		—		17.9
Long-term inflows		39.1			34.5			1.3			—		—		3.3
Long-term outflows		(23.9	)		(18.1	)		(0.5	)		—		—		(5.3	)
Long-term net flows		15.2			16.4			0.8			—		—		(2.0	)
Net flows in money market funds		—			—			—			—		—		—
Market gains and losses/reinvestment		(2.6	)		(3.1	)		1.3			—		—		(0.8	)
Acquisition		13.7			4.5			9.2			—		—		—
Foreign currency translation		(0.1	)		—			—			—		—		(0.1	)
June 30, 2010 AUM		79.2			48.9			15.3			—		—		15.0
December 31, 2008 AUM		30.5			21.6			0.9			—		—		8.0
Long-term inflows		18.4			12.0			1.0			—		—		5.4
Long-term outflows		(14.5	)		(12.6	)		—			—		—		(1.9	)
Long-term net flows		3.9			(0.6	)		1.0			—		—		3.5
Net flows in money market funds		—			—			—			—		—		—
Market gains and losses/reinvestment		4.4			3.6			—			—		—		0.8
Foreign currency translation		0.2			—			—			—		—		0.2
June 30, 2009 AUM		39.0			24.6			1.9			—		—		12.5

See accompanying notes to these AUM tables on the following page.

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     Total AUM by Client Domicile⁽⁶⁾

													Continental
$ in billions	Total			U.S.			Canada			U.K.			Europe			Asia
December 31, 2009 AUM(2)		459.5			294.1			29.0			84.9			24.4			27.1
Long-term inflows		77.4			39.9			1.2			9.2			7.1			20.0
Long-term outflows		(59.9	)		(40.0	)		(3.5	)		(8.0	)		(5.3	)		(3.1	)
Long-term net flows		17.5			(0.1	)		(2.3	)		1.2			1.8			16.9
Net flows in money market funds		(11.5	)		(13.3	)		—			(0.9	)		3.7			(1.0	)
Market gains and losses/reinvestment		(14.5	)		(7.3	)		(0.9	)		(1.7	)		(1.4	)		(3.2	)
Acquisition		114.6			103.7			0.6			1.8			2.9			5.6
Foreign currency translation		(7.9	)		—			(0.4	)		(5.7	)		(1.8	)		—
June 30, 2010 AUM		557.7			377.1			26.0			79.6			29.6			45.4
December 31, 2008 AUM(2)		377.1			252.7			23.8			57.1			22.3			21.2
Long-term inflows		48.1			31.9			1.2			7.9			3.9			3.2
Long-term outflows		(42.0	)		(28.9	)		(2.5	)		(3.1	)		(4.0	)		(3.5	)
Long-term net flows		6.1			3.0			(1.3	)		4.8			(0.1	)		(0.3	)
Net flows in money market funds		10.3			6.3			—			0.2			3.3			0.5
Market gains and losses/reinvestment		11.7			7.4			1.2			(0.5	)		0.6			3.0
Foreign currency translation		9.2			—			1.5			7.1			0.5			0.1
June 30, 2009 AUM		414.4			269.4			25.2			68.7			26.6			24.5

     ETF, UIT & Passive AUM by Client Domicile⁽⁶⁾

											Continental
$ in billions	Total			U.S.			Canada		U.K.		Europe			Asia
December 31, 2009 AUM		53.0			50.4			—		—		1.0			1.6
Long-term inflows		39.1			23.2			—		—		0.1			15.8
Long-term outflows		(23.9	)		(23.8	)		—		—		(0.1	)		—
Long-term net flows		15.2			(0.6	)		—		—		—			15.8
Net flows in money market funds		—			—			—		—		—			—
Market gains and losses/reinvestment		(2.6	)		(1.8	)		—		—		(0.1	)		(0.7	)
Acquisition		13.7			13.7			—		—		—			—
Foreign currency translation		(0.1	)		—			—		—		—			(0.1	)
June 30, 2010 AUM		79.2			61.7			—		—		0.9			16.6
December 31, 2008 AUM		30.5			29.0			—		—		0.5			1.0
Long-term inflows		18.4			18.2			—		—		0.2			—
Long-term outflows		(14.5	)		(14.5	)		—		—		—			—
Long-term net flows		3.9			3.7			—		—		0.2			—
Net flows in money market funds		—			—			—		—		—			—
Market gains and losses/reinvestment		4.4			4.1			—		—		0.1			0.2
Foreign currency translation		0.2			—			—		—		—			0.2
June 30, 2009 AUM		39.0			36.8			—		—		0.8			1.4

(1)	Channel refers to the distribution channel from which the AUM originated. Institutional AUM originated from individual corporate clients, endowments, foundations, government authorities, universities, or charities. Retail AUM arose from client investments into funds available to the public with shares or units. Private Wealth Management AUM arose from high net worth client investments.
(2)	The beginning balances were adjusted to reflect certain asset reclassifications, including the previously discussed AUM reporting alignment to include ETF, UIT and passive AUM.
(3)	Asset classes are descriptive groupings of AUM by common type of underlying investments.
(4)	The alternatives asset class includes financial structures, absolute return, real estate, private equity, asset allocation, portable alpha and multiple asset strategies.
(5)	Ending Money Market AUM includes $68.1 billion in institutional money market AUM and $4.4 billion in retail money market AUM.
(6)	Client domicile disclosure groups AUM by the domicile of the underlying clients.

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Results of Operations

Adoption of FASB Statement No. 167

     The company’s Consolidated Statement of Income for the six months ended June 30, 2010, reflect the elimination of $17.6 million in management fees earned from CLOs, and the addition of $105.6 million in interest income, $46.4 million in interest expense, and $243.2 million in net other gains. The $281.2 million net income impact during the six months ended June 30, 2010, of consolidation of these CLOs is largely offset by gains/(losses) attributable to investors in noncontrolling interests of $277.4 million. Prior to the adoption of FASB Statement No. 167, the company accounted for its investments in these CLOs as available-for-sale investments, with changes in the value of the company’s interests being recorded through other comprehensive income. After the adoption of FASB Statement No. 167, the change in value of the company’s investments in these CLOs is reflected in the company’s net income. For the six months ended June 30, 2010, the net impact to the company of its investments in these CLOs was $3.8 million.

Condensed Consolidating Statements of Income

				Consolidated
	Before			Investment
$ in millions	Consolidation*			Products**			Eliminations			Total
Six months ended June 30, 2010
Total operating revenues		1,528.8			0.2			(22.9	)		1,506.1
Total operating expenses		1,291.9			28.8			(22.9	)		1,297.8
Operating income		236.9			(28.6	)		—			208.3
Equity in earnings of unconsolidated affiliates		16.6			—			(0.4	)		16.2
Interest income		3.4			107.4			(1.8	)		109.0
Other investment income/(losses)		(11.4	)		290.3			—			278.9
Interest expense		(26.5	)		(48.2	)		1.8			(72.9	)
Income before income taxes, including gains and losses attributable to noncontrolling interests		219.0			320.9			(0.4	)		539.5
Income tax provision		(86.8	)		—			—			(86.8	)
Net income, including gains and losses attributable to noncontrolling interests		132.2			320.9			(0.4	)		452.7
(Gains)/losses attributable to noncontrolling interests in consolidated entities, net		(0.2	)		(316.7	)		—			(316.9	)
Net income attributable to common shareholders		132.0			4.2			(0.4	)		135.8
				Consolidated
	Before			Investment
$ in millions	Consolidation*			Products			Eliminations			Total
Six months ended June 30, 2009
Total operating revenues		1,175.5			2.2			(4.0	)		1,173.7
Total operating expenses		999.7			5.8			(4.0	)		1,001.5
Operating income		175.8			(3.6	)		—			172.2
Equity in earnings of unconsolidated affiliates		7.9			—			2.1			10.0
Interest income		6.0			—			—			6.0
Other investment income/(losses)		5.8			(134.9	)		—			(129.1	)
Interest expense		(32.4	)		—			—			(32.4	)
Income/(loss) before income taxes, including gains and losses attributable to noncontrolling interests		163.1			(138.5	)		2.1			26.7
Income tax provision		(56.3	)		—			—			(56.3	)
Net income/(loss), including gains and losses attributable to noncontrolling interests		106.8			(138.5	)		2.1			(29.6	)
(Gains)/losses attributable to noncontrolling interests in consolidated entities, net		(0.3	)		136.3			—			136.0
Net income attributable to common shareholders		106.5			(2.2	)		2.1			106.4

*	The Before Consolidation column includes Invesco’s equity interest in the investment products, accounted for as equity method and available-for-sale investments and does not include any other adjustments related to non-GAAP financial measure presentation.
**	The company adopted FASB Statement No. 167 on January 1, 2010, resulting in the consolidation of certain CLOs. In accordance with the standard, prior periods have not been restated to reflect the consolidation of these CLOs. Prior to January 1, 2010, the company was not deemed to be the primary beneficiary of these CLOs.

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Operating Revenues and Net Revenues

     Operating revenues increased by $332.4 million (28.3%) in the six months ended June 30, 2010, to $1,506.1 million (June 30, 2009: $1,173.7 million). Net revenues increased by $251.7 million (28.5%) in the six months ended June 30, 2010, to $1,133.4 million (June 30, 2009: $881.7 million). Net revenues are operating revenues less third-party distribution, service and advisory expenses, plus our proportional share of net revenues from joint venture arrangements, plus management fees earned from, less other revenue recorded by, consolidated investment products. See “Schedule of Non-GAAP Information” for additional important disclosures regarding the use of net revenues. A significant portion of our business and managed AUM are based outside of the U.S. The income statements of foreign currency subsidiaries are translated into U.S. dollars, the reporting currency of the company, using average foreign exchange rates. Over the six month period, the U.S. dollar weakened against the Pound Sterling and Canadian dollar, and strengthened against the Euro, which impacted our reported revenues for the six months ended June 30, 2010, as compared to the six months ended June 30, 2009. The impact of foreign exchange rate movements resulted in $29.7 million (8.9%) of the increase in operating revenues during the six months ended June 30, 2010. Additionally, our revenues are directly influenced by the level and composition of our AUM as more fully discussed below. Movements in global capital market levels, net new business inflows (or outflows) and changes in the mix of investment products between asset classes and geographies may materially affect our revenues from period to period.

     The main categories of revenues, and the dollar and percentage change between the periods, were as follows:

	Six months ended
	June 30,
$ in millions	2010			2009			$ Change			% Change
Investment management fees		1,221.4			938.1			283.3			30.2	%
Service and distribution fees		251.9			189.4			62.5			33.0	%
Performance fees		4.9			18.9			(14.0	)		(74.1	)%
Other		27.9			27.3			0.6			2.2	%
Total operating revenues		1,506.1			1,173.7			332.4			28.3	%
Third-party distribution, service and advisory expenses		(416.3	)		(314.5	)		101.8			32.4	%
Proportional share of revenues, net of third-party distribution expenses, from joint venture investments		20.9			20.7			0.2			1.0	%
Management fees earned from consolidated investment products		22.9			4.0			18.9			472.5	%
Other revenues recorded by consolidated investment products		(0.2	)		(2.2	)		(2.0	)		(90.9	)%
Net revenues		1,133.4			881.7			251.7			28.5	%

     Investment management fees

Investment management fees increased by $283.3 million (30.2%) in the six months ended June 30, 2010, to $1,221.4 million (June 30, 2009: $938.1 million) due to the acquisition, increases in average AUM, changes in the mix of AUM between asset classes and foreign exchange rate movement. The June 1, 2010, acquisition contributed to an increase in investment management fees of $36.3 million during the period. The June 1, 2010, acquired business added $114.6 billion in AUM at that date, with an expected effective fee rate of approximately 47 basis points. Average AUM for the six months ended June 30, 2010, were $465.0 billion (June 30, 2009: $377.9 billion). Average long-term AUM, which generally earn higher fee rates than money market AUM, for the six months ended June 30, 2010, were $393.5 billion (June 30, 2009: $289.5 billion), while average institutional money market AUM decreased 19.1% to $71.5 billion at June 30, 2010, from $88.4 billion for the six months ended June 30, 2009. The increase in average AUM and average long-term AUM includes the impact of the June 1, 2010, acquired business. Our equity AUM generally earns a higher net revenue rate than money market AUM. At June 30, 2010, equity AUM were $263.2 billion, representing 47% of our total AUM at that date; whereas at June 30, 2009, equity AUM were $155.6 billion, representing 37.5% of our total AUM at that date. See the company’s disclosures regarding the changes in AUM during the six months ended June 30, 2010, in the “Assets Under Management” section of the “Results of Operations for the six months ended June 30, 2010, compared with the six months ended June 30, 2009,” above for additional information regarding the movements in AUM. Foreign exchange rate movements led to an increase in investment management fees of $27.1 million during the six months ended June 30, 2010.

     Additionally, the change in investment management fee revenues is primarily due to the adoption of FASB Statement No. 167, now encompassed in ASC Topic 810, “Consolidation,” on January 1, 2010, which resulted in the consolidation of certain CLOs with total assets of $6.5 billion at June 30, 2010. In accordance with the standard, prior periods have not been restated to reflect the consolidation of these CLOs. The company uses a non-GAAP financial measure, net revenues, to add back these eliminated management fees as part of net revenues, as the company has earned them for providing investment management services to

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consolidated investment products. See “Schedule of Non-GAAP Information” for the reconciliation of operating revenues to net revenues.

Service and distribution fees

     In the six months ended June 30, 2010, service and distribution fees increased by $62.5 million (33.0%) to $251.9 million (June 30, 2009: $189.4 million) due to increases in average AUM during the period. Additionally, the June 1, 2010, acquisition contributed $25.2 million of the increase in service and distribution fees during the six months ended June 30, 2010.

Performance fees

     In the six months ended June 30, 2010, performance fees decreased by $14.0 million (74.1%) to $4.9 million (June 30, 2009: $18.9 million). The performance fees generated in the six months ended June 30, 2010, arose primarily due to products managed in the UK and in our real estate groups.

Other revenues

     In the six months ended June 30, 2010, other revenues increased by $0.6 million (2.2%) to $27.9 million (June 30, 2009: $27.3 million). Other revenues included $5.5 million in UIT revenues during the period, which was offset primarily by lower front-end fees earned in the U.K. of $3.1 million.

Third-party distribution, service and advisory expenses

     Third-party distribution, service and advisory expenses increased by $101.8 million (32.4%) in the six months ended June 30, 2010, to $416.3 million (June 30, 2009: $314.5 million), consistent with the increases in investment management and service and distribution fee revenues. The acquired business contributed $19.0 million of the increase in third-party distribution, service and advisory expenses during the period.

Proportional share of revenues, net of third-party distribution expenses, from joint venture investments

     Our proportional share of revenues, net of third-party distribution expenses increased by $0.2 million (1.0%) to $20.9 million in the six months ended June 30, 2010 (June 30, 2009: $20.7 million), driven by increases in average AUM during the period in the Invesco Great Wall joint venture. Our share of the Invesco Great Wall joint venture’s average AUM in the six months ended June 30, 2010, was $3.6 billion (June 30, 2009: $3.4 billion).

Management fees earned from consolidated investment products

     Management fees earned from consolidated investment products increased by $18.9 million (472.5%) to $22.9 million in the six months ended June 30, 2010 (June 30, 2009: $4.0 million). The increase is primarily due to the adoption of FASB Statement No. 167, now encompassed in ASC Topic 810, “Consolidation,” on January 1, 2010, which resulted in the consolidation of certain CLOs with total assets of $6.5 billion at June 30, 2010. In accordance with the standard, prior periods have not been restated to reflect the consolidation of these CLOs.

Operating revenues of consolidated investment products

     See “Schedule of Non-GAAP Information” for additional disclosures regarding the use of net revenues. The change in operating revenues of consolidated investment products is discussed above.

Operating Expenses

     During the six months ended June 30, 2010, operating expenses increased by $296.3 million (29.6%) to $1,297.8 million (June 30, 2009: $1,001.5 million). As discussed above, a significant portion of our business and managed AUM are based outside of the U.S. The income statements of foreign currency subsidiaries are translated into U.S. dollars, the reporting currency of the company, using average foreign exchange rates. Over the six months, the U.S. dollar weakened against the Pound Sterling and Canadian dollar, and strengthened against the Euro, which impacted our reported expenses for the six months ended June 30, 2010, as compared to the six months ended June 30, 2009. The impact of foreign exchange rate movements resulted in $24.0 million (8.1%) of the increase in operating expenses during the six months ended June 30, 2010.

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     The main categories of operating expenses, and the dollar and percentage changes between periods, are as follows:

	Six months ended
	June 30,
$ in millions	2010		2009		$ Change		% Change
Employee compensation		498.1		464.8		33.3		7.2	%
Third-party distribution, service and advisory		416.3		314.5		101.8		32.4	%
Marketing		63.5		50.8		12.7		25.0	%
Property, office and technology		109.3		94.5		14.8		15.7	%
General and administrative		114.1		76.9		37.2		48.4	%
Transaction and integration		96.5		—		96.5		—	%
Total operating expenses		1,297.8		1,001.5		296.3		29.6	%

     The table below sets forth these cost categories as a percentage of total operating expenses and operating revenues, which we believe provides useful information as to the relative significance of each type of expense:

			% of Total			% of					% of Total			% of
Six months ended:	June 30,		Operating			Operating			June 30,		Operating			Operating
$ in millions	2010		Expenses			Revenues			2009		Expenses			Revenues
Employee compensation		498.1		38.4	%		33.1	%		464.8		46.4	%		39.6	%
Third-party distribution, service and advisory		416.3		32.1	%		27.6	%		314.5		31.4	%		26.8	%
Marketing		63.5		4.9	%		4.2	%		50.8		5.1	%		4.3	%
Property, office and technology		109.3		8.4	%		7.3	%		94.5		9.4	%		8.1	%
General and administrative		114.1		8.8	%		7.6	%		76.9		7.7	%		6.6	%
Transaction and integration		96.5		7.4	%		6.4	%		—		N/A			N/A
Total operating expenses		1,297.8		100.0	%		86.2	%		1,001.5		100.0	%		85.3	%

Employee Compensation

     Employee compensation increased $33.3 million (7.2%) to $498.1 million in the six months ended June 30, 2010, (June 30, 2009: $464.8 million), including an increase of approximately $16.2 million related to the June 1, 2010, acquisition. Base salaries and variable compensation increased $20.2 million during the six months ended June 30, 2010, from the six months ended June 30, 2009, due to incremental costs associated with the June 1, 2010, acquisition, the impact of annual merit increases, and the increase in variable compensation accruals to reflect the overall underlying core earnings growth of the company from the six months ended June 30, 2009. Severance costs decreased by $12.5 million during the six months ended June 30, 2010, from the prior comparative period. Also included in compensation expenses during the six months ended June 30, 2010, are share-based payment costs of $55.5 million, compared to $43.9 million during the six months ended June 30, 2009, an increase of $11.6 million, also due to the incremental impact of the acquisition and to the additional amortization of share awards granted February 28, 2010, as part of the company’s annual share award cycle. Foreign exchange rate movement led to an increase in employee compensation expenses of $8.5 million during the six months ended June 30, 2010, from the six months ended June 30, 2009. Additionally, employee compensation costs for the six months ended June 30, 2010 and 2009, included $10.0 million of prepaid compensation amortization expenses related to the 2006 acquisition of W.L. Ross & Co. This expense amortization will continue through 2010, and the acquisition-related asset will be fully amortized by the third quarter of 2011.

     Headcount at June 30, 2010, was 5,421 (June 30, 2009: 5,084). The June 1, 2010, acquisition added 580 employees at that date.

Third-Party Distribution, Service and Advisory Expenses

     Third-party distribution, service and advisory expenses are discussed above in the operating and net revenues section.

Marketing

     Marketing expenses increased by $12.7 million (25.0%) in the six months ended June 30, 2010, to $63.5 million (June 30, 2009: $50.8 million) primarily due to a market-driven increase in marketing support payments of $6.3 million as compared to the six months ended June 30, 2009. Additionally, travel and sales literature/research expenses increased $1.7 million and $0.9 million, respectively, during the six months ended June 30, 2010, from the six months ended June 30, 2009, offset by a decrease in advertising expenses of

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$1.5 million during the six months ended June 30, 2010, from the six months ended June 30, 2009. The June 1, 2010, acquisition contributed $5.9 million to the increase in marketing expenses.

Property, Office and Technology

     Property, office and technology expenses increased by $14.8 million (15.7%) to $109.3 million in the six months ended June 30, 2010 (June 30, 2009: $94.5 million). Rent expense increased $1.9 million during the six months ended June 30, 2010, from the six months ended June 30, 2009. Technology expenses included increases of $4.6 million and $6.2 million for the six months ended June 30, 2010, from the six months ended June 30, 2009, due to higher depreciation on purchased technology assets and increased outsourced administration costs the U.K. and associated with the Hyderabad transition. Additionally, the June 1, 2010, acquisition contributed $3.0 million to the increase in property, office and technology costs.

General and Administrative

     General and administrative expenses increased by $37.2 million (48.4%) to $114.1 million in the six months ended June 30, 2010 (June 30, 2009: $76.9 million). Included in general and administrative expenses for the six months ended June 30, 2010, is $8.9 million ($6.0 million net of tax and reducing diluted EPS by $0.01 per share) representing fund reimbursement costs from the correction of historical foreign exchange allocations. Travel expenses increased $5.5 million during the six months ended June 30, 2010, from the six months ended June 30, 2009, driven by higher levels of business activity. Information services expenses increased $3.1 million during the six months ended June 30, 2010, from the six months ended June 30, 2009, due to increases in costs associated with certain quantitative securities analysis services. Additionally, irrecoverable tax expense increased $2.7 million during the six months ended June 30, 2010, from the six months ended June 30, 2009, due in part to an increase in VAT tax rates from 15% to 17.5%. Foreign exchange rate movements led to an increase of $2.0 million in general and administrative expenses during the six months ended June 30, 2010, from the six months ended June 30, 2009. The June 1, 2010, acquisition contributed $4.3 million to the increase in general and administrative expenses during the period.

     During the six months ended June 30, 2010, intangible amortization expense increased $2.0 million resulting from additional amortization of the various finite-lived intangible assets that arose from the June 1, 2010, acquisition. Estimated amortization expense for all of the company’s intangible assets, for each of the five succeeding years based upon the company’s intangible assets at June 30, 2010, is included in Part I, “Financial Information, Item 1. Financial Statements, Note 5, Intangible Assets.”

     General and administrative expenses in the six months ended June 30, 2009, included an insurance recovery of $9.5 million related to legal costs associated with the market-timing regulatory settlement.

Transaction and integration

     Transaction and integration charges were $96.5 million in the six months ended June 30, 2010 (six months ended June 30, 2009: none) and relate to the acquired business. Transaction and integration expenses include $19.2 million of employee compensation costs, including $14.5 million of severance costs; $16.3 million for the proxy solicitation of fund investors to approve a change in fund advisor, $27.5 million for transition of the Van Kampen funds to Invesco’s platform and governance structure, $5.5 million related to office space including onerous lease charges associated with vacating office space in Houston as we consolidate operations, $5.5 million of sales and marketing costs as we print re-branded fund prospectuses, $17.4 million of professional services, principally legal, consultancy and insurance, and $4.3 million in technology contractor and travel costs. As previously announced, these costs in aggregate are currently expected to be less than $175 million and include $10.8 million incurred in 2009 with the remainder being incurred in 2010 and 2011.

Operating Income, Adjusted Operating Income, Operating Margin and Adjusted Operating Margin

     Operating income increased by $36.1 million (21.0%) to $208.3 million in the six months ended June 30, 2010 (June 30, 2009: $172.2 million); however, operating margin (operating income divided by operating revenues) declined slightly to 13.8% in the six months ended June 30, 2010, from 14.7% in the six months ended June 30, 2009. The decline in operating margin resulted from a greater increase in operating expenses (29.6%) than in operating revenues (28.3%) during the period. The following measures have improved, however, during the six months ended June 30, 2010: adjusted operating income, and adjusted operating margin. Adjusted operating income (operating income plus our proportional share of the operating income from joint venture arrangements, transaction and integration charges, amortization of acquisition-related prepaid compensation and other intangibles, and the operating income impact of the consolidation of investment products) increased by $166.2 million (80.9%) to $371.7 million in the six months ended

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June 30, 2010, from $205.5 million in the six months ended June 30, 2009. Adjusted operating margin is equal to adjusted operating income divided by net revenues. Net revenues are equal to operating revenues less third-party distribution, service and advisory expenses, plus our proportional share of the net revenues from our joint venture arrangements, plus management fees earned from, less other revenue recorded by, consolidated investment products. Adjusted operating margin increased to 32.8% in the six months ended June 30, 2010, from 23.3% in the six months ended June 30, 2009. See “Schedule of Non-GAAP Information” for a reconciliation of operating revenues to net revenues, a reconciliation of operating income to adjusted operating income and additional important disclosures regarding net revenues, adjusted operating income and adjusted operating margin.

Other Income and Expenses

     The main categories of other income and expenses, and the dollar and percentage changes between periods are as follows:

	Six months ended
	June 30,
$ in millions	2010			2009			$ Change			% Change
Equity in earnings of unconsolidated affiliates		16.2			10.0			6.2			62.0	%
Interest income		3.4			6.0			(2.6	)		(43.3	)%
Interest income of consolidated investment products		105.6			—			105.6			100.0	%
Gains/(losses) of consolidated investment products, net		290.3			(134.9	)		425.2			N/A
Interest expense		(26.5	)		(32.4	)		5.9			(18.2	)%
Interest expense of consolidated investment products		(46.4	)		—			(46.4	)		100.0	%
Other gains and losses, net		(11.4	)		5.8			(17.2	)		N/A
Total other income and expenses		331.2			(145.5	)		476.7			N/A

Equity in earnings of unconsolidated affiliates

     Equity in earnings of unconsolidated affiliates increased by $6.2 million (62.0%) to $16.2 million in the six months ended June 30, 2010 (June 30, 2009: $10.0 million). Included in equity in earnings from affiliates is our share of the income from our joint ventures in China, which declined $2.1 million to $11.8 million in the six months ended June 30, 2010, from $13.9 million earned during the six months ended June 30, 2009. This decline was offset by our share of the valuation changes in certain partnership investments that increased by $8.7 million for these comparative periods.

Interest income and interest expense

     Interest income decreased by $2.6 million (43.3%) to $3.4 million in the six months ended June 30, 2010 (June 30, 2009: $6.0 million), as a result of lower yields and cash and cash equivalent balances during the period. The decrease in yields was consistent with market direction during the period. Interest expense decreased by $5.9 million (18.2%) to $26.5 million in the six months ended June 30, 2010 (June 30, 2009: $32.4 million), resulting from a lower average debt balance during the six months ended June 30, 2010, versus the comparative period.

Interest income and interest expense of consolidated investment products

     In the six months ended June 30, 2010, interest income and interest expense of consolidated investment products were $105.6 million and $46.4 million, respectively. The increases reflect the adoption of FASB Statement No. 167, now encompassed in ASC Topic 810, “Consolidation,” on January 1, 2010, which resulted in the consolidation of certain CLOs with total assets of $6.5 billion at June 30, 2010. In accordance with the standard, prior periods have not been restated to reflect the consolidation.

Gains and losses of consolidated investment products, net income impact of consolidated investment products, and noncontrolling interests in consolidated entities

     Included in other income and expenses are gains and losses of consolidated investment products, net, which are driven by realized and unrealized gains and losses of underlying investments held by consolidated investment products. In the six months ended June 30, 2010, other gains and losses of consolidated investment products were a net gain of $290.3 million, as compared to a net loss of $134.9 million in the six months ended June 30, 2009. The increase primarily reflects the adoption of FASB Statement No. 167, now encompassed in ASC Topic 810, “Consolidation,” on January 1, 2010, which resulted in the consolidation of certain CLOs with total assets of $6.5 billion at June 30, 2010. Collateral assets and notes issued by consolidated CLOs are held at fair value, and the

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unrealized and realized gains and losses of the collateral assets and notes are reflected in this line item. In accordance with the standard, prior periods have not been restated to reflect the consolidation of these CLOs.

     As illustrated in the Condensed Consolidating Statements of Income for the six months ended June 30, 2010 and 2009, at the beginning of this Results of Operations section, the consolidation of investment products during the six months ended June 30, 2010, resulted in a net income impact of $320.5 million before attribution to noncontrolling interests. Invesco invests in a portion of these products, and as a result this net income is offset by noncontrolling interests of $316.7 million, resulting in a net income impact to the company of $3.8 million. Net losses of consolidated investment products for the six months ended June 30, 2009, were $136.4 million, and were largely offset by noncontrolling interests of consolidated entities of $136.3 million.

Other gains and losses, net

     Other gains and losses, net were a net loss of $11.4 million in the six months ended June 30, 2010, as compared to a net gain of $5.8 million in the six months ended June 30, 2009. Included in other gains and losses is a net loss of $3.4 million as a result of the depreciation of assets held for our deferred compensation plans (2009: $0.0 million net gain). In the six months ended June 30, 2010, we incurred $2.2 million in net foreign exchange losses (2009: $7.9 million in net foreign exchange gains). Included in other losses are $6.1 million of other-than-temporary impairment charges related to the company’s seed money investments (2009: $2.7 million).

Income Tax Expense

     Our subsidiaries operate in several taxing jurisdictions around the world, each with its own statutory income tax rate. As a result, our effective tax rate will vary from year to year depending on the mix of the profits and losses of our subsidiaries. The majority of our profits are earned in the U.S., Canada and the U.K. The current U.K. statutory tax rate is 28%, the Canadian statutory tax rate is 31% and the U.S. Federal statutory tax rate is 35%.

     Our effective tax rate, excluding noncontrolling interests in consolidated entities, for the six months ended June 30, 2010, was 39.0%, up from 34.6% for the six months ended June 30, 2009. The effective tax rate for the six months ended June 30, 2010, included the impact of non-deductible transaction and integration costs related to the acquired business.

Schedule of Non-GAAP Information

     Beginning with the presentation of the company’s results for the three months ended March 31, 2010, the company has expanded its use of non-GAAP measures to include reconciling items primarily relating to Financial Accounting Standards Board (FASB) Statement No. 167, “Amendments to FASB Interpretation No. 46(R)” (FASB Statement No. 167), now encompassed in the Accounting Standards Codification Topic 810 (discussed in Part I, Item I, “Financial Statements — Note 1, Accounting Policies”), and the acquisition of Morgan Stanley’s retail asset management business, including Van Kampen Investments (the “acquired business” or the “acquisition”). We are presenting the following non-GAAP measures: net revenue (and by calculation, net revenue yield on AUM), adjusted operating income (and by calculation, adjusted operating margin), adjusted net income (and by calculation, adjusted earnings per share (EPS)). Prior to June 30, 2010, adjusted operating income, adjusted operating margin, adjusted net income, and adjusted earnings per share were described as “adjusted cash operating income,” “adjusted cash operating margin,” “adjusted cash net income,” and “adjusted cash earnings per share,” respectively. We believe these non-GAAP measures provide greater transparency into our business and allow more appropriate comparisons with industry peers. Management uses these performance measures to evaluate the business, and they are consistent with internal management reporting. Effective June 30, 2010, the company removed “cash” from the names of these measures to emphasize that these measures are performance measures and not liquidity measures.

     The most directly comparable U.S. GAAP measures are operating revenues (and by calculation, gross revenue yield on AUM), operating income (and by calculation, operating margin), net income (and by calculation, diluted EPS). Each of these measures is discussed more fully below. Also beginning with the presentation of the company’s results for the three months ended March 31, 2010, the net revenue measure has been redefined from that previously used to adjust for the impact of consolidating certain investment products. The presentation of net revenue in this Report for the three and six months ended June 30, 2009, has been restated to conform the calculation to the current period’s methodology. These non-GAAP measures should not be considered as substitutes for any measures derived in accordance with U.S. GAAP and may not be comparable to other similarly titled measures of other companies. Additional reconciling items may be added in the future to these non-GAAP measures if deemed appropriate.

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     The following are reconciliations of operating revenues, operating income (and by calculation, operating margin), and net income (and by calculation, diluted EPS) on a U.S. GAAP basis to net revenues, adjusted operating income (and by calculation, adjusted operating margin), and adjusted net income (and by calculation, adjusted EPS):

	Three months ended June 30,						Six months ended June 30,
$ in millions	2010			2009			2010			2009
Operating revenues, U.S. GAAP basis		787.0			625.1			1,506.1			1,173.7
Third-party distribution, service and advisory expenses(1)		(220.7	)		(166.3	)		(416.3	)		(314.5	)
Proportional share of net revenues from joint venture arrangements(2)		10.4			11.1			20.9			20.7
Management fees earned from consolidated investment products eliminated upon consolidation(3)		12.3			1.0			22.9			4.0
Other revenues recorded by consolidated investment products(3)		—			(0.8	)		(0.2	)		(2.2	)
Net revenues		589.0			470.1			1,133.4			881.7
Operating income, U.S. GAAP basis		71.4			110.4			208.3			172.2
Proportional share of operating income from joint venture investments(2)		6.0			7.7			11.3			13.5
Transaction and integration charges(4)		79.3			—			96.5			—
Amortization of acquisition-related prepaid compensation(4)		5.0			5.0			10.0			10.0
Amortization of other intangibles(4)		5.2			3.1			8.3			6.2
Compensation expense related to market valuation changes in deferred compensation plans		(2.1	)		—			(0.2	)		—
Consolidation of investment products(3)		15.0			0.3			28.6			3.6
Other reconciling items(6)		8.9			—			8.9			—
Adjusted operating income		188.7			126.5			371.7			205.5
Operating margin*		9.1	%		17.7	%		13.8	%		14.7	%
Adjusted operating margin**		32.0	%		26.9	%		32.8	%		23.3	%
Net income attributable to common shareholders, U.S. GAAP basis		40.8			75.7			135.8			106.4
Transaction and integration charges, net of tax(4)		64.5			—			79.8			—
Amortization of acquisition-related prepaid compensation(4)		5.0			5.0			10.0			10.0
Amortization of other intangibles, net of tax(4)		4.6			3.0			7.6			6.1
Deferred compensation plan market valuation changes less compensation expense, net of tax		2.5			—			2.2			—
Deferred income taxes on intangible assets(4)		4.2			3.6			7.8			7.2
Consolidation of investment products(3)		(2.2	)		—			(3.8	)		—
Other reconciling items(6)		6.0			—			6.0			—
Adjusted net income		125.4			87.3			245.4			129.7
Average shares outstanding — diluted		457.8			416.8			450.1			407.5
Diluted EPS	$	0.09		$	0.18		$	0.30		$	0.26
Adjusted EPS***	$	0.27		$	0.21		$	0.55		$	0.32

*	Operating margin is equal to operating income divided by operating revenues.
**	Adjusted operating margin is equal to net operating income divided by net revenues.
***	Adjusted EPS is equal to adjusted net income divided by the weighted average shares outstanding amount used in the calculation of diluted EPS.

(1)	Third-party distribution, service and advisory expenses
	Third-party distribution, service and advisory expenses include renewal commissions, management fee rebates and distribution costs (12b-1) paid to brokers and independent financial advisors. While the terms used for these types of expense vary by geography, they are all expense items that are closely linked to the value of AUM and the revenue earned by Invesco from AUM.
	Renewal commissions are paid to independent financial advisors for as long as the clients’ assets remain invested and are payments for the servicing of client accounts. These commissions, similar to our management fee revenues, are based upon a

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	percentage of the AUM value and apply to much of our non-U.S. retail business. They can also take the form of management fee rebates, particularly outside of the U.S.
	The revenues of our U.S. business include distribution fees earned from mutual funds, principally 12b-1 fees. Distribution costs are expenses paid to third-party brokers of our U.S. business. These include the amortization over the redemption period of upfront commissions paid to brokers for sales of fund shares with a contingent deferred sales charge (a charge levied on investors for redemptions within a certain contracted period of time). Both the revenues and the costs are dependent on the underlying AUM of the brokers’ clients.
	Also included in third-party distribution, service and advisory expenses are sub-transfer agency fees that are paid to third parties for processing client share purchases and redemptions, call center support and client reporting. These costs are reimbursed by the related funds.
	Since the company has been deemed to be the principal in the third-party arrangements, the company must reflect these expenses gross of operating revenues under U.S. GAAP. Management believes that the deduction of third-party distribution, service and advisory expenses from operating revenues in the computation of net revenues (and by calculation, net revenue yield on AUM) and the related computation of adjusted operating income (and by calculation, adjusted operating margin), is useful information for investors and other users of the company’s financial statements because such presentation appropriately reflects the nature of these expenses as revenue-sharing activities, as these costs are passed through to external parties who perform functions on behalf of the company’s managed funds. Further, these expenses vary extensively by geography due to the differences in distribution channels. The net presentation assists in identifying the revenue contribution generated by the business, removing distortions caused by the differing distribution channel fees and allowing for a fair comparison with U.S. peer investment managers and within Invesco’s own investment units. Additionally, management evaluates net revenue yield on AUM, which is equal to net revenues divided by average AUM during the reporting period. This financial measure is an indicator of the basis point net revenues we receive for each dollar of AUM we manage and is useful when evaluating the company’s performance relative to industry competitors and within the company for capital allocation purposes.
(2)	Proportional share of net revenues and operating income from joint venture investments
	The company has two joint venture investments in China. The Invesco Great Wall joint venture was one of the largest Sino-foreign managers of equity products in China, with AUM of approximately $6.2 billion as of June 30, 2010. The company has a 49.0% interest in Invesco Great Wall. The company also has a 50% joint venture with Huaneng Capital Services to assess private equity investment opportunities in power generation in China through Huaneng Invesco WLR Investment Consulting Company Ltd. Enhancing our operations in China is one effort that we believe could improve our competitive position over time. Accordingly, we believe that it is appropriate to evaluate the contribution of our joint venture investments to the operations of the business.
	Management believes that the addition of our proportional share of revenues, net of distribution expenses, from joint venture investments in the computation of net revenues and the addition of our proportional share of operating income in the related computations of adjusted operating income and adjusted operating margin also provide useful information to investors and other users of the company’s financial statements, as management considers it appropriate to evaluate the contribution of its joint ventures to the operations of the business. It is also consistent with the presentation of AUM and net flows (where our proportional share of the ending balances and related activity are reflected) and therefore provides a more meaningful calculation of net revenue yield on AUM.
(3)	Consolidated investment products
	In June 2009, the U.S. FASB issued Statement No. 167, which was effective January 1, 2010. It has had a significant impact on the presentation of the company’s financial statements. The provisions of FASB Statement No. 167 required us to consolidate into our financial statements certain CLOs with approximately $6.5 billion in assets and $5.4 billion in debt at June 30, 2010. The company’s Consolidated Statements of Income reflect the elimination of management and performance fees earned from these CLOs and other consolidated investment products of $12.3 million and $22.9 million during the three and six months ended June 30, 2010, respectively, and the addition of $53.1 million and $105.6 million in interest income, $25.6 million and $46.4 million in interest expense, and $187.2 million and $290.3 million in net other gains for the respective periods. The $199.5 million and $320.5 million net income impact during the three and six months ended June 30, 2010, respectively, of consolidation is largely offset by gains/(losses) attributable to noncontrolling interests of $197.3 million and $316.7 million, respectively. See Part I, Item I, “Financial Statements— Note 12, Consolidated Investment Products” for a detailed analysis of the impact to the company’s Condensed Consolidated Financial Statements from the consolidation of investment products.

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	Management believes that the consolidation of investment products may impact a reader’s analysis of our underlying results of operations and could result in investor confusion or the production of information about the company by analysts or external credit rating agencies that is not reflective of the underlying results of operations and financial condition of the company. Accordingly, management believes that it is appropriate to adjust operating revenues, operating income and operating margin for the impact of consolidated investment products in calculating the respective net revenues, adjusted operating income and adjusted operating margin. The reconciling items add back the management and performance fees earned by Invesco from the consolidated products and remove the revenues and expenses recorded by the consolidated products that have been included in the U.S. GAAP Condensed Consolidated Statements of Income.
(4)	Acquisition-related reconciling items
	Acquisition-related adjustments include transaction and integration expenses and intangible asset amortization related to acquired assets, amortization of prepaid compensation related to the 2006 acquisition of W.L. Ross & Co., and tax cash flow benefits resulting from tax amortization of goodwill and indefinite-lived intangible assets.
	Transaction and integration charges were $79.3 million and $96.5 million for the three and six months ended June 30, 2010 (three and six months ended June 30, 2009: none), and relate to June 1, 2010, acquisition. Taxation on this amount, calculated at the applicable tax rate for the tax deductible portion of the charges, is $14.8 million and $16.7 million for the three and six months ended June 30, 2010 (three and six months ended June 30, 2009: none) giving a net adjustment of $64.5 million and $79.8 million for the three and six months ended June 30, 2010 (six months ended June 30, 2009: none). These aggregate costs are currently expected to be less than $175 million, including those costs incurred in the second half of 2009 of $10.8 million, and are expected to continue to be incurred during 2010-2011. These charges reflect the legal, regulatory, advisory, valuation and other professional or consulting fees, general and administrative costs, including travel costs related to the transaction and the costs of temporary staff involved in executing the transaction, and the post closing costs of integrating the acquired business into the company’s existing operations including incremental costs associated with achieving synergy savings.
	The acquisition will result in additional future amortization expenses of approximately $23 million per year for the first 2 years following June 1, 2010, the expense then reduces in future years as the acquired finite-lived intangible assets become fully expensed. The U.S. GAAP to non-GAAP reconciling items also include acquisition-related amortization charges related to previous business combinations. These reconciling items are intangible amortization of $5.2 million and $8.3 million for the three and six months ended June 30, 2010, respectively (three and six months ended June 30, 2009: $3.0 million and $6.2 million, respectively), and the amortization of prepaid compensation of $5.0 million and $10.0 million for the three and six months ended June 30, 2010, respectively (three and six months ended June 30, 2009: $5.0 million and $10.0 million, respectively), related to the October 2006 acquisition of W.L. Ross & Co. Taxation of $0.6 million and $0.7 million for the three and six months ended June 30, 2010, respectively (three and six months ended June 30, 2009: $0.1 million), is recorded on a portion of the intangible amortization expense that does not generate a cash tax benefit, giving a net adjustment of $4.6 million and $7.6 million for the three and six months ended June 30, 2010 (three and six months ended June 30, 2009: $3.0 million and $6.1 million, respectively). The W.L. Ross & Co. prepaid compensation expense will continue through 2010, and the acquisition-related asset will be fully amortized by the third quarter of 2011.
	Management believes it is useful to investors and other users of our financial statements to adjust for the transaction and integration charges and the amortization expenses in arriving at adjusted operating income, adjusted operating margin and adjusted EPS, as this will aid comparability of our results period to period, and aid comparability with peer companies that may not have similar acquisition-related charges.
	While finite-lived intangible assets are amortized under U.S. GAAP, there is no amortization charge on goodwill and indefinite-lived intangibles. In certain qualifying situations, these can be amortized for tax purposes, generally over a 15-year period, as is the case in the U.S. These cash flows represent tax benefits that are not included in the Condensed Consolidated Statements of Income absent an impairment charge or the disposal of the related business. We believe it is useful to include these tax cash flow benefits in arriving at the adjusted EPS measure. The company receives these cash flow benefits but does not anticipate a sale or impairment of these assets in the foreseeable future, and therefore the deferred tax liability recognized under U.S. GAAP is not expected to be used either through a credit in the Condensed Consolidated Statements of Income or through settlement of tax obligations. Adjustments for deferred income taxes on goodwill and indefinite-lived intangibles that are amortized for tax purposes were $4.2 million and $7.8 million for the three and six months ended June 30, 2010, respectively (three and six months ended June 30, 2009: $3.6 million and $7.2 million, respectively).

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(5)	Market movement on deferred compensation plan liabilities
	In 2009, Invesco introduced an incentive plan whereby certain of our investment team members can receive deferred cash compensation linked in value to the investment products being managed by the team. This is in lieu of share-based awards which were largely the only prior form of deferred compensation used by Invesco.
	These new awards involve a return to the employee linked to the appreciation (depreciation) of specified investments, typically the funds managed by the employee. Invesco economically hedges the exposure to market movements by holding these investments on its balance sheet. U.S. GAAP requires the appreciation (depreciation) in the compensation liability to be expensed over the award vesting period in proportion to the vested amount of the award as part of compensation expense. The full value of the investment appreciation (depreciation) is immediately recorded below operating income in other gains and losses. This creates a timing difference between the recognition of the compensation expense and the investment gain or loss impacting net income attributable to common shareholders and diluted EPS which will reverse over the life of the award and net to zero at the end of the multi-year vesting period. During periods of high market volatility these timing differences impact compensation expense, operating income and operating margin that, over the life of the award, will ultimately be offset by gains and losses recorded below operating income on the Consolidated Statements of Income.
	Since these plans are economically hedged, management believes it is useful to reflect the offset ultimately achieved from hedging the investment market exposure in the calculation of adjusted operating income (and by calculation, adjusted operating margin) and adjusted net income (and by calculation, adjusted EPS), to produce results that will be more comparable period to period. The related fund shares will have been purchased on or around the date of grant, eliminating any ultimate cash impact from market movements that occur over the vesting period. The non-GAAP measures therefore exclude the mismatch created by differing U.S. GAAP treatments of the market movement on the liability and the investments.
	The market depreciation of the compensation liability was $2.1 million and $0.2 million for the three and six months ended June 30, 2010, respectively, with an investment loss of $5.8 million and $3.4 million for the three and six months ended June 30, 2010, respectively, on the assets held to economically hedge the compensation liability. This additional compensation expense and the investment loss are adjusted in arriving at the non-GAAP information and, net of applicable taxation of $1.2 million and $1.4 million for the three and six months ended June 30, 2010, respectively, result in a net income adjustment of $2.5 million and $2.2 million for the three and six months ended June 30, 2010, respectively. No adjustments are being made for the 2009 comparative non-GAAP measures presented above due to the relative insignificance of the amounts in that period.
(6)	Other reconciling items
	Included within general and administrative expenses is a charge of $8.9 million ($6.0 million net of tax and reducing diluted EPS by $0.01 per share) for the three and six months ended June 30, 2010 (three and six months ended June 30, 2009: none), representing reimbursement costs from the correction of historical foreign exchange allocations in the fund accounting process that impacted the reporting of fund performance in certain funds. Management does not include these costs in internal reporting and these costs do not form part of the overall evaluation of the business Management therefore believes that the exclusion of these costs, due to their unique character and magnitude, from total operating expenses provides useful information to investors, as this view is consistent with how management evaluates the performance of the business. Exclusion of these costs will aid in comparability of our results from period to period and the comparability of our results with those of peer investment managers.

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Balance Sheet Discussion

     Condensed Consolidating Balance Sheets are presented below and reflect the adoption of FASB Statement No. 167, now encompassed in ASC Topic 810, “Consolidation,” at January 1, 2010. The majority of the company’s consolidated investment products were CLOs as of June 30, 2010. The collateral assets of the CLOs are held solely to satisfy the obligations of the CLOs. The company has no right to the benefits from, nor does it bear the risks associated with, the collateral assets held by the CLOs, beyond the company’s minimal direct investments in, and management fees generated from, CLOs. If the company were to liquidate, the collateral assets would not be available to the general creditors of the company, and as a result, the company does not consider them to be company assets. Additionally, the investors in the CLOs have no recourse to the general credit of the company for the notes issued by the CLOs. The company therefore does not consider this debt to be a company liability.

Condensed Consolidating Balance Sheets

			Consolidated
	Before		Investment
$ in millions	Consolidation*		Products**		Eliminations			Total
As of June 30, 2010
Current assets		3,255.7		421.8		(19.5	)		3,658.0
Non-current assets		8,492.8		6,788.4		(35.3	)		15,245.9
Total assets		11,748.5		7,210.2		(54.8	)		18,903.9
Current liabilities		2,450.2		344.3		(19.5	)		2,775.0
Long-term debt of consolidated investment products		—		5,426.2		(21.8	)		5,404.4
Other non-current liabilities		1,904.4		—		—			1,904.4
Total liabilities		4,354.6		5,770.5		(41.3	)		10,083.8
Retained earnings attributable to investors in consolidated investment products		—		723.3		(3.8	)		719.5
Other equity attributable to common shareholders		7,389.4		9.7		(9.7	)		7,389.4
Equity attributable to noncontrolling interests in consolidated entities		4.5		706.7		—			711.2
Total liabilities and equity		11,748.5		7,210.2		(54.8	)		18,903.9
			Consolidated
	Before		Investment
$ in millions	Consolidation*		Products		Eliminations			Total
As of December 31, 2009
Current assets		3,089.8		31.2		—			3,121.0
Non-current assets		7,111.8		685.0		(8.2	)		7,788.6
Total assets		10,201.6		716.2		(8.2	)		10,909.6
Current liabilities		2,293.6		4.8		—			2,298.4
Non-current liabilities		990.4		—		—			990.4
Total liabilities		3,284.0		4.8		—			3,288.8
Total equity attributable to common shareholders		6,912.9		8.2		(8.2	)		6,912.9
Equity attributable to noncontrolling interests in consolidated entities		4.7		703.2		—			707.9
Total liabilities and equity		10,201.6		716.2		(8.2	)		10,909.6

*	The Before Consolidation column includes Invesco’s equity interest in the investment products, accounted for as equity method and available-for-sale investments and does not include any other adjustments related to non-GAAP financial measure presentation.
**	The company adopted FASB Statement No. 167 on January 1, 2010, resulting in the consolidation of certain CLOs. In accordance with the standard, prior periods have not been restated to reflect the consolidation of these CLOs. Prior to January 1, 2010, the company was not deemed to be the primary beneficiary of these CLOs.

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     The following table presents a comparative analysis of significant detailed balance sheet line items:

				December 31,
$ in millions	June 30, 2010			2009			$ Change			% Change
Cash and cash equivalents		555.6			762.0			(206.4	)		(27.1	)%
Unsettled fund receivables		685.2			383.1			302.1			78.9	%
Current investments		314.0			182.4			131.6			72.1	%
Assets held for policyholders		1,151.5			1,283.0			(131.5	)		(10.2	)%
Non-current investments		147.7			157.4			(9.7	)		(6.2	)%
Investments of consolidated investment products		6,788.5			685.0			6,103.5			N/A
Goodwill		6,688.9			6,467.6			221.3			3.4	%
Policyholder payables		(1,151.5	)		(1,283.0	)		(131.5	)		(10.2	)%
Long-term debt		(1,395.7	)		(745.7	)		650.0			87.2	%
Long-term debt of consolidated investment products		(5,404.4	)		—			5,404.4			100.0	%
Retained earnings appropriated for investors in consolidated investment products		(719.5	)		—			719.5			100.0	%
Equity attributable to common shareholders		(8,108.9	)		(6,912.9	)		1,196.0			17.3	%
Equity attributable to noncontrolling interests in consolidated entities		(711.2	)		(707.9	)		3.3			0.5	%

Cash and Cash Equivalents

     Cash and cash equivalents decreased by $206.4 million from $762.0 million at December 31, 2009, to $555.6 million at June 30, 2010, as we utilized cash balances to pay annual bonus awards, to fund investment purchases, and to partly fund the acquisition. Of the $712.2 million net cash paid to close the acquisition, $650.0 million was borrowed from the credit facility while the balance was funded from existing cash balances.

     Invesco has local capital requirements in several jurisdictions, as well as regional requirements for entities that are part of the European sub-group. These requirements mandate the retention of liquid resources in those jurisdictions, which we meet in part by holding cash and cash equivalents. This retained cash can be used for general business purposes in the European sub-group or in the countries where it is located. Due to the capital restrictions, the ability to transfer cash between certain jurisdictions may be limited. In addition, transfers of cash between international jurisdictions may have adverse tax consequences that may substantially limit such activity. At June 30, 2010, the European sub-group had cash and cash equivalent balances of $318.3 million, much of which is used to satisfy these regulatory requirements. We are in compliance with all regulatory minimum net capital requirements.

     In addition, the company is required to hold cash deposits with clearing organizations or to otherwise segregate cash to maintain compliance with federal and other regulations in connection with its unit investment trust broker dealer entity, which was acquired on June 1, 2010, as part of the acquired business. At June 30, 2010, these cash deposits totaled $13.7 million.

Unsettled Fund Receivables

     Unsettled fund receivables increased by $302.1 million from $383.1 million at December 31, 2009, to $685.2 million at June 30, 2010, due to $160.2 million of unsettled balances associated with the acquired UIT business as at June 30, 2010, together with higher transaction activity between funds and investors in late June 2010 when compared to late December 2009 in our U.K and offshore funds. Unsettled fund receivables are created by the normal settlement periods on transactions initiated by certain clients of our U.K. and offshore funds. The presentation of the receivable and substantially offsetting payable ($643.6 million) at trade date with both the investor and the fund, for normal purchases and sales, reflects the legal relationship between the underlying investor and the company.

Investments (current and non-current)

     As of June 30, 2010, we had $461.7 million in investments, of which $314.0 million were current investments and $147.7 million were non-current investments. Included in current investments are $130.0 million of seed money investments in affiliated funds used to seed funds as we launch new products, and $143.3 million of investments related to assets held for deferred compensation plans, which are also held primarily in affiliated funds. Seed investments increased by $55.2 million during the six months to June 30, 2010, primarily due to the $53.9 million of seed investments acquired on June 1, 2010, with the acquired business. Investments held to hedge deferred compensation awards increased by $58.7 million during the six month period as we purchased additional investments

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in affiliated funds to economically hedge new employee plan awards. Included in non-current investments are $142.6 million in equity method investments in our Chinese joint ventures and in certain of the company’s private equity, real estate and other investments.

Assets Held for Policyholders and Policyholder Payables

     One of our subsidiaries, Invesco Perpetual Life Limited, is an insurance company that was established to facilitate retirement savings plans in the U.K. The entity holds assets that are managed for its clients on its balance sheet with an equal and offsetting liability. The increasing balance in these accounts from $1,283.0 million at December 31, 2009, to $1,151.5 million at June 30, 2010, was the result of foreign exchange movements, the increase in the market values of these assets, and net flows into the funds.

Investments of consolidated investment products

     The company provides investment management services to, and has transactions with, various private equity funds, real estate funds, fund-of-funds, CLOs and other investment entities sponsored by the company for the investment of client assets in the normal course of business. The company serves as the investment manager, making day-to-day investment decisions concerning the assets of the products and may have a small investment in certain of these products to demonstrate “skin in the game” to other potential unaffiliated investors in these products. Certain of these investments are considered to be variable interest entities (VIEs). If the company is the primary beneficiary of the VIEs, then the investment products are consolidated into the company’s financial statements. Other partnership entities are consolidated under a voting interest entity (VOE) model where the company is the general partner and is presumed to have control, in the absence of simple majority kick-out rights to remove the general partner, simple majority liquidation rights to dissolve the partnership, or any substantive participating rights of the other limited partners. See Part I, Item 1, Financial Statements — Note 12, “Consolidated Investment Products,” for additional details.

     Effective January 1, 2010, upon the adoption of FASB Statement No. 167, now encompassed in ASC Topic 810, the company determined that it was the primary beneficiary of certain CLO VIEs, as it has the power to direct the activities of the CLOs that most significantly impact the CLOs’ economic performance, and the obligation to absorb losses/rights to receive benefits from the CLOs that could potentially be significant to the CLOs. Generally, private equity and fund of funds limited partnership entities where the general partner does not have substantive equity investment at risk and where the other limited partners do not have substantive (greater than 50%) rights to remove the general partner or to dissolve the limited partnership are also VIEs. The primary beneficiary of non-CLO investment products is the party to the VIE who absorbs a majority of the losses or absorbs the majority of the rewards generated by the VIE. Additionally, under the voting interest entity (VOE) consolidation model, the general partner in a partnership that is not a VIE consolidates the partnership because the general partner is deemed to control the partnership where the other limited partner do not have substantive kick-out, liquidation or participation rights. The company has no right to the benefits from, nor does it bear the risks associated with, investments held by consolidated investment products, beyond the company’s minimal direct investments in, and management fees generated from, these products, which are eliminated upon consolidation. If the company were to liquidate, the assets held by consolidated investment products would not be available to the general creditors of the company. Investments of consolidated investment products include the investments of both consolidated VIEs and VOEs.

     As of June 30, 2010, investments of consolidated investment products totaled $6,788.5 million (December 31, 2009: $685.0 million). These investments are offset primarily in long-term debt of consolidated investment products, noncontrolling interests in consolidated entities, and retained earnings appropriated for investors in consolidated investment products on the Condensed Consolidated Balance Sheets, as the company’s equity investment in these structures is very small. The increase from December 31, 2009, primarily reflects adoption of FASB Statement No. 167 on January 1, 2010. In accordance with the standard, prior periods have not been restated. As a result of the June 1, 2010, acquisition, the company consolidated additional CLOs with investments of $762.3 million at June 30, 2010.

Goodwill

     Goodwill increased by $221.3 million from $6,467.6 million at December 31, 2009, to $6,688.9 million at June 30, 2010, as we recorded $362.7 million of goodwill associated with the acquired business, and $25.8 million related to the earn-out on the 2006 acquisition of W.L Ross & Co. The additions were offset by a reduction of $167.2 million due to the impact of foreign currency translation for certain subsidiaries whose functional currency differs from that of the parent.

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Long-term debt

     The non-current portion of our total long-term debt was $1,395.7 million at June, 30, 2010 (December 31, 2009: $745.7 million). On May 24, 2010, the company terminated its existing $500.0 million credit facility and entered into a new $1,250 million credit facility. At June 30, 2010, $650.0 million was drawn on this credit facility and was used to fund part of the consideration for the acquired business, which closed on June 1, 2010. Amounts borrowed under the new credit facility are repayable at maturity on May 23, 2013.

Long-term debt of consolidated investment products

     Long-term debt of consolidated investment products relates to notes issued by consolidated CLOs. Collateral assets of the CLOs, which are included in investments of consolidated investment products, are held solely to satisfy the obligations of the CLOs. The investors in the CLO debt tranches have no recourse to the general credit of the company for the notes issued by the CLOs.

     Long-term debt of consolidated investment products was $5,404.4 million at June 30, 2010, reflecting the adoption of FASB Statement No. 167, now encompassed in ASC Topic 810, “Consolidation,” on January 1, 2010. In accordance with the standard, prior periods have not been restated to reflect the consolidation. As a result of the June 1, 2010, acquisition, the company consolidated additional CLOs with notes issued of $630.2 million at June 30, 2010.

Retained earnings appropriated for investors in consolidated investment products

     The retained earnings appropriated for investors in consolidated investment products relates primarily to the difference in value between the collateral assets held (which are included in investments of consolidated investment products), and the debt issued, by consolidated CLOs. The collateral assets held, and notes issued, by consolidated CLOs are measured at fair value in the Condensed Consolidated Balance Sheet.

     Retained earnings appropriated for investors in consolidated investment products was $719.5 million at June 30, 2010, reflecting the adoption of FASB Statement No. 167, now encompassed in ASC Topic 810, “Consolidation,” on January 1, 2010, which resulted in the consolidation of certain CLOs with $6.5 billion of assets held and $5.4 billion in debt issued at June 30, 2010. In accordance with the standard, prior periods have not been restated to reflect the consolidation. As a result of the June 1, 2010, acquisition, the company consolidated additional CLOs with retained earnings appropriated for investors in consolidated investment products of $130.7 million at June 30, 2010.

Equity attributable to noncontrolling interests in consolidated entities

     Equity attributable to noncontrolling interests in consolidated entities increased by $3.3 million from $707.9 million at December 31, 2009, to $711.2 million at June 30, 2010. Net gains attributable to noncontrolling interests in consolidated entities of $39.5 million were offset by $36.2 million of net changes in the partners’ capital of these entities during the period.

     The noncontrolling interests in consolidated entities are generally offset by the net assets of certain consolidated investment products, as the company’s equity investment in the investment products is not significant.

Equity attributable to common shareholders

     Equity attributable to common shareholders increased from $6,912.9 million at December 31, 2009, to $8,108.9 million at June 30, 2010, an increase of $1,196.0 million. Increases to equity included $566.9 million as a result of the business combination, net income attributable to common shareholders of $135.8 million, share issuances upon employee option exercises of $6.2 million, share based payment credit to capital of $55.5 million, and retained earnings appropriated for investors in consolidated investment products of $719.5 million arising from the adoption of FASB Statement No. 167, now encompassed in ASC Topic 810, “Consolidation.” The increases to equity were partially offset by $93.7 million in dividend payments, $149.0 million of changes in foreign currency rates, and $34.0 million in shares acquired from staff to meet withholding tax obligations on share award vestings.

Liquidity and Capital Resources

     The adoption of FASB Statement No. 167, now encompassed in ASC Topic 810, “Consolidations,” on January 1, 2010, which resulted in the consolidation of $6.5 billion and $5.4 billion of total assets and long-term debt of certain CLO products as of June 30,

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2010, respectively, did not impact the company’s liquidity and capital resources. The collateral assets of the CLOs are held solely to satisfy the obligations of the CLOs. The company has no right to the benefits from, nor does it bear the risks associated with, the collateral assets held by the CLOs, beyond the company’s minimal direct investments in, and management fees generated from, these products, which are eliminated upon consolidation. If the company were to liquidate, the collateral assets would not be available to the general creditors of the company, and as a result, the company does not consider them to be company assets. Additionally, the investors in the CLOs debt tranches have no recourse to the general credit of the company for the notes issued by the CLOs. The company therefore does not consider this debt to be an obligation of the company. See Part I, Item 1, Financial Statements — Note 12, “Consolidated Investment Products,” for additional details.

     The following summary of our recent capital transactions confirms our ability to access capital markets in a timely manner:

• The May 26, 2009, issuance of 32.9 million common shares in a public offering that produced gross proceeds of $460.5 million ($441.8 million net of related expenses);

• The June 9, 2009, replacement of our $900.0 million credit facility, which was never fully utilized, with a $500.0 million credit facility (with an option to increase it to $750.0 million, subject to certain conditions), the amount of which was based upon our past and projected working capital needs;

• The June 30, 2009, completion of a $100.0 million tender offer to purchase publicly traded debt with a principal value of $104.3 million;

• The December 15, 2009, repayment of $294.2 million 4.5% senior notes that matured on that date through the utilization of existing cash balances, having repurchased $3.0 million of these notes earlier in the year;

• The May 24, 2010, termination of the $500.0 million credit facility and entrance into a new three-year $1,250.0 million credit facility.

     In addition, on July 28, 2010, S&P announced an upgrade of our credit rating from BBB+/Positive to A-/Stable.

     We believe that our capital structure, together with available cash balances, cash flows generated from operations, existing capacity under our credit facility, proceeds from the public offering of our shares and further capital market activities, if necessary, should provide us with sufficient resources to meet present and future cash needs, including operating, debt and other obligations as they come due and anticipated future capital requirements. On June 1, 2010, we used a combination of existing cash balances and $650.0 million credit facility borrowing to satisfy the $770.0 million cash consideration related to acquisition. We issued 30.9 million shares of new equity, in the form of common and non-voting common equivalent preferred shares (with economic rights identical to common stock, other than no right to vote such shares) to Morgan Stanley, without holding restrictions, in conjunction with the close. The ultimate purchase price for the business was lower than the $1.5 billion previously announced purchase price, due to depreciation of Invesco’s common share price from the announcement date to the June 1, 2010, closing date. We believe that the cash flow generated from operations of the combined firm, the remaining $600.0 million in credit facility capacity, and our ability to access the capital markets, will provide enough liquidity to meet future capital resource needs.

     Our ability to access the capital markets in a timely manner depends on a number of factors including our credit rating, the condition of the global economy, investors’ willingness to purchase our securities, interest rates, credit spreads and the valuation levels of equity markets. If we are unable to access capital markets in a timely manner, our business could be adversely impacted.

     Certain of our subsidiaries are required to maintain minimum levels of capital. These and other similar provisions of applicable law may have the effect of limiting withdrawals of capital, repayment of intercompany loans and payment of dividends by such entities. After redomicile and after consultation with the U.K. FSA, it has been determined that, for the purposes of prudential supervision, Invesco Ltd. is not subject to regulatory consolidated capital requirements under current European Union (EU) Directives. A sub-group, however, including all of our regulated EU subsidiaries, is subject to these consolidated capital requirements, and capital is maintained within this sub-group to satisfy these regulations. These requirements mandate the retention of liquid resources in those jurisdictions, which we meet in part by holding cash and cash equivalents. This retained cash can be used for general business purposes in the European sub-group or in the countries where it is located. Due to the capital restrictions, the ability to transfer cash between certain jurisdictions may be limited. In addition, transfers of cash between international jurisdictions may have adverse tax consequences that may substantially limit such activity. At June 30, 2010, the European sub-group had cash and cash equivalent balances of $318.3 million, much of which is used to satisfy these regulatory requirements. We are in compliance with all regulatory minimum net capital requirements.

     In addition, the company is required to hold cash deposits with clearing organizations or to otherwise segregate cash to maintain compliance with federal and other regulations in connection with its unit investment trust broker dealer entity, which was acquired on June 1, 2010, as part of the acquired business. At June 30, 2010, these cash deposits totaled $13.7 million.

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Cash Flows

     The ability to consistently generate cash from operations in excess of capital expenditures and dividend payments is one of our company’s fundamental financial strengths. Operations continue to be financed from current earnings and borrowings. Our principal uses of cash, other than for operating expenses, include dividend payments, capital expenditures, acquisitions, purchase of our shares in the open market and investments in certain new investment products.

     Cash flows of consolidated investment products (discussed in Item 1, Financial Statements — Note 12, “Consolidated Investment Products”) are reflected in Invesco’s cash used in operating activities, provided by investing activities and provided by financing activities. Cash held by consolidated investment products is not available for general use by Invesco, nor is Invesco cash available for general use by its consolidated investment products.

Condensed Consolidating Statements of Cash Flows

				Consolidated
	Before			Investment
$ in millions	Consolidation			Products *			Eliminations			Total
For the six months ended June 30, 2010
Net income		132.2			320.9			(0.4	)		452.7
Net purchases of trading investments		(62.5	)		—			—			(62.5	)
Other adjustments to reconcile net income to net cash provided by operating activities		124.2			(290.3	)		0.4			(165.7	)
Changes in cash held by consolidated investment products		—			(92.5	)		—			(92.5	)
Other changes in operating assets and liabilities		(202.5	)		7.1			—			(195.4	)
Net cash used in operating activities		(8.6	)		(54.8	)		—			(63.4	)
Net proceeds of investments by consolidated investment products		—			195.3			—			195.3
Other investing activities		(754.4	)		—			—			(754.4	)
Net cash (used in)/provided by investing activities		(754.4	)		195.3			—			(559.1	)
Net capital distributed by consolidated investment products		—			(38.1	)		—			(38.1	)
Other financing activities		574.8			(102.4	)		—			472.4
Net cash provided by/(used in) financing activities		574.8			(140.5	)		—			434.3
Decrease in cash and cash equivalents		(188.2	)		—			—			(188.2	)
Foreign exchange movement on cash and cash equivalents		(18.2	)		—			—			(18.2	)
Cash and cash equivalents, beginning of period		762.0			—			—			762.0
Cash and cash equivalents, end of period		555.6			—			—			555.6

* The company adopted FASB Statement No. 167 on January 1, 2010, resulting in the consolidation of certain CLOs. In accordance with the standard, prior periods have not been restated to reflect the consolidation of these CLOs. Prior to January 1, 2010, the company was not deemed to be the primary beneficiary of these CLOs.

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				Consolidated
	Before			Investment
$ in millions	Consolidation			Products			Total
For the six months ended June 30, 2009
Net income		106.8			(136.4	)		(29.6	)
Net purchases of trading investments		(29.1	)		—			(29.1	)
Other adjustments to reconcile net income to net cash provided by operating activities		120.3			132.8			253.1
Changes in cash held by consolidated investment products		—			25.6			25.6
Other changes in operating assets and liabilities		(221.5	)		(1.3	)		(222.8	)
Net cash (used in)/provided by operating activities		(23.5	)		20.7			(2.8	)
Net proceeds of investments by consolidated investment products		—			1.0			1.0
Other investing activities		(3.1	)		—			(3.1	)
Net cash (used in)/provided by investing activities		(3.1	)		1.0			(2.1	)
Net capital distributed by consolidated investment products		—			(21.7	)		(21.7	)
Other financing activities		245.9			—			245.9
Net cash provided by/(used in) financing activities		245.9			(21.7	)		224.2
Decrease in cash and cash equivalents		219.3			—			219.3
Foreign exchange movement on cash and cash equivalents		13.2			—			13.2
Cash and cash equivalents, beginning of period		585.2			—			585.2
Cash and cash equivalents, end of period		817.7			—			817.7

Operating Activities

     Operating cash flows are generated by the receipt of investment management and other fees generated from AUM, offset by operating expenses and changes in operating assets and liabilities. Although some receipts and payments are seasonal, particularly bonus payments, in general, after allowing for the change in cash held by consolidated investment products, our operating cash flows move in the same direction as our operating income.

     During the six months ended June 30, 2010, cash used in operating activities increased $60.6 million to $63.4 million from $2.8 million during the six months ended June 30, 2009. As shown on the table above, consolidated investment products accounted for the use of $54.8 million of cash during the six months ended June 30, 2010 compared to a contribution of cash of $20.7 million in the six months ended June 30, 2009. The sum of the operating, investing and financing cash flows of consolidated investment products offsets to a zero impact to the company’s change in cash and cash equivalent balances from period to period. Excluding the impact of consolidated investment products, cash used in operations was $8.6 million in the six months ended June 30, 2010 compared to $23.5 million in the six months ended June 30, 2009.

     The use of $8.6 million of cash to fund operations during the six months ended June 30, 2010, included:

• net purchases of trading investments of $62.5 million, primarily to provide an economic hedge against staff deferred compensation plan awards, and

• net cash generated from the other operating activities of $53.9 million, representing net income as adjusted for non-cash items and the changes in operating assets and liabilities. This six month period included the use of $227.7 million of cash to pay the annual staff bonuses, related payroll taxes, payroll taxes on then annual share award vesting, and annual pension contributions, all of which result in increased operating cash utilization in the first half of the calendar year.

     The use of $23.5 million of cash to fund operations during the six months ended June 30, 2009, included:

• net purchases of trading investments of $29.1 million principally for staff deferred compensation plan awards, and

• Cash generated from the other operating activities of $5.6 million, representing net income as adjusted for non-cash items and the changes in operating assets and liabilities. This six month period included the use of $309.0 million of cash to pay the annual staff bonuses, related payroll taxes, payroll taxes on the annual share based awards vesting, and annual pension contributions, all of which result in increased cash utilization in the first half of the calendar year.

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     After excluding the net purchase of trading investments, cash generated from other operating activities in the six months ended June 30, 2010 improved by $48.3 million from $5.6 million in the six months ended June 30, 2009 to $53.9 million in the six months ended June 30, 2010. This reflects the increased net income as realized into cash together with the lower annual staff related operating cash outflows, as bonus and other staff compensation related payments in early 2010 were lower than in early 2009 principally due to reduced profitability in the respective years to which the bonuses related.

Investing Activities

     Net cash used in investing activities totaled $559.1 million for the six months ended June 30, 2010, (six months ended June 30, 2009: net cash used of $2.1 million). As shown in the table above, consolidated investment products, including investment purchases, sales and returns of capital, contributed $195.3 million (2009: $1.0 million contributed). After allowing for these consolidated investment product cash flows, net cash used in investing activities was $754.4 million (six months ended June 30, 2009: net cash used of $3.1 million). The closing of the business acquisition on June 1, 2010, resulted in the payment of cash consideration of $770.0 million while the acquired business had cash and cash equivalents on its balance sheet of $57.8 million on that date, giving net cash outflow of $712.2 million. There were no acquisition related payments in the six months ended June 30, 2009.

     In addition, during the six months ended June 30, 2010, the company purchased available-for-sale investments and other investments of $56.7 million (six months ended June 30, 2009: $23.1 million) and capital expenditures of $35.7 million (six months ended June 30, 2009: $17.1 million). These cash outflows were partly offset from collected proceeds of $50.2 million from sales of investments in the six months ended June 30, 2010 (six months ended June 30, 2009: $36.8 million).

     The increase in capital expenditure cash outflows in the six months ended June 30, 2010 when compared to the six months ended June 30, 2009 was related to technology and computer hardware needed for the acquired business. Our capital expenditures related principally in each year to technology initiatives, including new platforms from which we maintain our portfolio management systems and fund accounting systems, improvements in computer hardware and software desktop products for employees, new telecommunications products to enhance our internal information flow, and back-up disaster recovery systems. Also, in each year, a portion of these costs related to leasehold improvements made to the various buildings and workspaces used in our offices. These projects have been funded with proceeds from our operating cash flows. During the six months ended June 30, 2010 and 2009, our capital divestitures were not significant relative to our total fixed assets.

     There were no payments made in the six months ended June 30, 2010, related to acquisition earn-out arrangements.

Financing Activities

     Net cash provided by financing activities totaled $434.3 million for the six months ended June 30, 2010, (six months ended June 30, 2009: $224.2 million). As shown in the table above, the financing activities of the consolidated investment products used cash of $140.5 million (six months ended June 30, 2009: $21.7 million). Excluding the impact of consolidated investment products, financing activities provided cash of $574.8 million in the six months ended June 30, 2010 (six months ended June 30, 2009: $245.9 million).

     To provide the cash funding needed to complete the business acquisition, in late May 2010, $650.0 million was borrowed from the company’s $1,250.0 million credit facility fund. This balance remained outstanding at June 30, 2010.

     Other financing cash flows during the six months ended June 30, 2010 included $93.7 million of dividend payments for the dividends declared in January and April 2010 (six months ended June 30, 2009: dividends paid of $80.2 million), cash inflows from the exercise of options of $6.2 million (six months ended June 30, 2009: $9.6 million), and excess tax benefits cash inflows from share-based compensation of $12.3 million (six months ended June 30, 2009: none).

     Net cash provided by financing activities for the six months ended June 30, 2009, also included equity issuance proceeds of $441.8 million, payments to purchase outstanding debt of $103.0 million resulting from a tender offer, repayments of our credit facility of $12.0 million and a payment of $10.3 million to purchase of the remaining 24.9% of Invesco Real Estate GmbH not already held by the company, the controlling interest having been acquired in December 2003.

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Dividends

     Invesco declares and pays dividends on a quarterly basis. On April 27, 2010, the company declared a first quarter 2010 cash dividend, which was paid on June 9, 2010, to shareholders of record as of May 24, 2010. On July 27, 2010, the company declared a second quarter 2010 cash dividend of 11 cents per share, which is payable on September 9, 2010, to common and preferred shareholders of record at the close of business on August 23, 2010.

Share Repurchase Plan

     An aggregate of 1.4 million shares were withheld on vesting events during the six months ended June 30, 2010, to meet employees’ withholding tax obligations (six months ended June 30, 2009: 1.1 million shares). The value of these shares withheld was $34.0 million (six months ended June 30, 2009: $12.3 million). At June 30, 2010, approximately $1.4 billion remained authorized for repurchase under the company’s share repurchase plan.

Debt

     Our total indebtedness at June 30, 2010, was $1,395.7 million (December 31, 2009 is $745.7 million) and was comprised of the following:

			December 31,
$ in millions	June 30, 2010		2009
Unsecured Senior Notes:
5.625% — due April 17, 2012		215.1		215.1
5.375% — due February 27, 2013		333.5		333.5
5.375% — due December 15, 2014		197.1		197.1
Floating rate credit facility expiring May 23, 2013		650.0		—
Total debt		1,395.7		745.7
Less: current maturities of total debt		—		—
Long-term debt		1,395.7		745.7

     For the six months ended June 30, 2010, the company’s weighted average cost of debt was 4.87% (six months ended June 30, 2009: 5.06%).

     Financial covenants under the credit facility include: (i) the quarterly maintenance of a debt/EBITDA ratio, as defined in the credit agreement, of not greater than 3.25:1.00 through December 31, 2011, and not greater than 3.00:1.00 thereafter, (ii) a coverage ratio (EBITDA, as defined in the credit agreement/interest payable for the four consecutive fiscal quarters ended before the date of determination) of not less than 4.00:1.00, As of June 30, 2010, we were in compliance with our debt covenants. At June 30, 2010, our leverage ratio was 1.60:1.00 (December 31, 2009: 1.11:1.00), and our interest coverage ratio was 13.03:1.00 (December 31, 2009: 11.01:1.00).

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The June 30, 2010, coverage ratio calculations are as follows:

$ millions	Total			Q2 2010			Q1 2010			Q4 2009		Q3 2009
Net income attributable to common shareholders		351.9			40.8			95.0			110.9		105.2
Net income attributable to Consolidated Investment Products		(3.8	)		(2.2	)		(1.6	)		—		—
Tax expense		178.7			36.7			50.1			48.2		43.7
Amortization/depreciation		84.0			20.8			18.3			24.9		20.0
Interest expense		58.6			14.1			12.4			15.2		16.9
Share-based compensation expense		102.4			31.3			24.2			22.6		24.3
Unrealized gains and losses from investments, net*		8.2			7.7			1.6			0.3		(1.4	)
Acquired business proforma EBITDA impact**		140.2			35.7			41.2			28.7		34.6
EBITDA***		920.2			184.9			241.2			250.8		243.3
Adjusted debt***	$	1,474.7
Leverage ratio (Debt/EBITDA — maximum 3.25:1.00)		1.60
Interest coverage (EBITDA/Interest Expense — minimum 4.00:1.00)		13.03

*	Adjustments for unrealized gains and losses from investments, as defined in our credit facility, include non-cash gains and losses on investments to the extent that they do not represent anticipated future cash receipts or expenditures.
**	The credit facility agreement requires that the company shall calculate EBITDA on a proforma basis including the impact of the acquired business as if the acquisition had occurred on the first day of the EBITDA period.
***	EBITDA and Adjusted debt are non-GAAP financial measures; however management does not use these measures for anything other than these debt covenant calculations. The calculation of EBTIDA above (a reconciliation from net income attributable to common shareholders) is defined by our credit agreement, and therefore net income attributable to common shareholders is the most appropriate GAAP measure from which to reconcile to EBITDA. The calculation of adjusted debt is defined in our credit facility and equals total long-term debt of $1,395.7 million plus $78.9 million in letters of credit and $0.1 million in capital leases.

Off Balance Sheet Commitments

     The company has transactions with various private equity, real estate and other investment entities sponsored by the company for the investment of client assets in the normal course of business. Many of the company’s investment products are structured as limited partnerships. The company’s investment may take the form of the general partner or a limited partner, and the entities are structured such that each partner makes capital commitments that are to be drawn down over the life of the partnership as investment opportunities are identified. At June 30, 2010, the company’s undrawn capital commitments were $85.5 million (December 31, 2009: $77.6 million).

     The volatility and valuation dislocations that occurred from 2007 to the date of this Report in certain sectors of the fixed income market have generated pricing issues in many areas of the market. As a result of these valuation dislocations, during the fourth quarter of 2007, Invesco elected to enter into contingent support agreements for two of its investment trusts to enable them to sustain a stable pricing structure. These two trusts are unregistered trusts that invest in fixed income securities and are available only to limited types of sophisticated investors. In June 2010, the agreements were amended to extend the term through December 31, 2010. As of June 30, 2010, the total committed support under these agreements was $36.0 million with an internal approval mechanism to increase the maximum possible support to $66.0 million at the option of the company. The recorded fair value of the guarantees related to these agreements at June 30, 2010, was estimated to be $2.5 million (December 31, 2009: $2.5 million), which was recorded in other current liabilities on the Condensed Consolidated Balance Sheets. No payments have been made under either agreement nor has Invesco realized any losses from the support agreements through the date of this Report. These trusts were not consolidated because the company was not deemed to be the primary beneficiary. As of the date of this Report, the required support level under these agreements was less than $15 million.

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Contractual Obligations

     We have future obligations under various contracts relating to debt and interest payments, financing and operating leases, long-term defined benefit pension and post-retirement medical plans, and acquisition contracts. During the six months ended June 30, 2010, significant changes to these obligations from those reported in our Annual Report on Form 10-K for the year ended December 31, 2009, include the termination of the floating rate credit agreement on May 24, 2010, and the entrance into a new $1,250.0 million credit facility expiring May 23, 2013, discussed in Part I, Item 1, “Financial Statements — Note 7, Debt.”

Critical Accounting Policies and Estimates

     Our significant accounting policies are disclosed in our most recent Form 10-K for the year ended December 31, 2009. The accounting policies and estimates that we believe are the most critical to an understanding of our results of operations and financial condition are those that require complex management judgment regarding matters that are highly uncertain at the time policies were applied and estimates were made. Different estimates could have been used in the current period that would have had a material effect on these financial statements, and changes in these estimates are likely to occur from period-to-period in the future. Our accounting policies and estimates regarding investments and consolidated investment products are discussed below, as there have been changes to these policies after the adoption of FASB Statement No. 167, now encompassed in ASC Topic 810, “Consolidation,” on January 1, 2010.

     Goodwill. Goodwill represents the excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired and liabilities assumed and is recorded in the functional currency of the acquired entity. Goodwill is tested for impairment at the single reporting unit level on an annual basis, or more often if events or circumstances indicate that impairment may exist. If the carrying amount of the reporting unit exceeds its fair value (the first step of the goodwill impairment test), then the second step is performed to determine if goodwill is impaired and to measure the amount of the impairment loss, if any. The second step of the goodwill impairment test compares the implied fair value of goodwill with the carrying amount of goodwill. If the carrying amount of goodwill exceeds the implied fair value of goodwill, an impairment loss is recognized in an amount equal to that excess.

     We have determined that we have one operating and reportable segment. The company evaluated the components of its business, which are business units one level below the operating segment level, and has determined that it has one reporting unit for purposes of goodwill impairment testing. The company’s components include Invesco Worldwide Institutional, Invesco North American Retail, Invesco Perpetual, Invesco Continental Europe and Invesco Asia Pacific. The company’s operating segment represents one reporting unit because all of the components are similar due to the common nature of products and services offered, type of clients, methods of distribution, manner in which each component is operated, extent to which they share assets and resources, and the extent to which they support and benefit from common product development efforts. Traditional profit and loss measures are not produced, and therefore not reviewed by component management, for any of the components. Furthermore, the financial information that is available by component is not sufficient for purposes of performing a discounted cash flow analysis at the component level in order to test goodwill for impairment at that level. As none of our components are reporting units, we have determined that our single operating segment, investment management, is also our single reporting unit.

     The principal method of determining fair value of the reporting unit is an income approach where future cash flows are discounted to arrive at a single present value amount. The discount rate used is derived based on the time value of money and the risk profile of the stream of future cash flows. Recent results and projections based on expectation regarding revenues, expenses, capital expenditures and acquisition earn out payments produce a present value for the reporting unit. While the company believes all assumptions utilized in our assessment are reasonable and appropriate, changes in these estimates could produce different fair value amounts and therefore different goodwill impairment assessments. The most sensitive of these assumptions are the estimated cash flows and the use of a weighted average cost of capital as the discount rate to determine present value. The present value produced for the reporting unit is the fair value of the reporting unit. This amount is reconciled to the company’s market capitalization to determine an implied control premium, which is compared to an analysis of historical control premiums experienced by peer companies over a long period of time to assess the reasonableness of the fair value of the reporting unit.

     The company also utilizes a market approach to provide a secondary and corroborative fair value of the reporting unit by using comparable company and transaction multiples to estimate values for our single reporting unit. Discretion and judgment is required in determining whether the transaction data available represents information for companies of comparable nature, scope and size. The results of the secondary market approach to provide a fair value estimate are not combined or weighted with the results of the income approach described above but are used to provide an additional basis to determine the reasonableness of the income approach fair value estimate.

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     The company cannot predict the occurrence of future events that might adversely affect the reported value of goodwill that totaled $6,688.9 million and $6,467.6 million at June 30, 2010, and December 31, 2009, respectively. Such events include, but are not limited to, strategic decisions made in response to economic and competitive conditions, the impact of the economic environment on the company’s assets under management, or any other material negative change in assets under management and related management fees. The company’s annual goodwill impairment review is performed as of October 1 of each year. As a result of that analysis, the company determined that no impairment existed at that date. Our goodwill impairment testing conducted during 2009 and 2008 indicated that the fair value of the reporting unit exceeded its carrying value, indicating that step two of the goodwill impairment test was not necessary.

     Due to deteriorating market conditions, interim impairment tests were performed at October 31, 2008, and March 31, 2009, using the most recently available operating information. These interim tests also concluded that no impairment had occurred. Following the March 31, 2009, interim test, the general market conditions improved and the company did not identify the need for further interim tests during 2009 as no indicators of impairment existed. The March 31, 2009, interim impairment test adopted an income approach consistent with the annual 2008 impairment tests, but utilized the company’s updated forecasts for changes in AUM due to market gains and long-term net flows and the corresponding changes in revenues and expenses. The primary assumption changes from the October 31, 2008, valuation test were increases in the anticipated rise in equity markets in the near-term and in net AUM sales. The increase in equity markets was based on an analysis of the Dow Jones Industrial Average for 10 recession events between 1945 and 2001. The October 31, 2008, valuation had assumed an equity market rise in-line with more normal non-recessionary experience. The higher AUM net sales reflects new flows into the equity markets as values stabilize and confidence returns, and also took into account the company’s improved relative investment performance. A discount rate of 13.7% was used for the March 31, 2009, test, similar to the October 31, 2008, rate of 13.6% (October 1, 2008: 11.6%). The discount rates used are estimates of the weighted average cost of capital for the asset management sector reflecting the overall industry risks associated with future cash flows and have been calculated consistently across the various tests dates.

     The October 1, 2009, annual goodwill impairment test was performed using a consistent methodology to that used for the March 31, 2009, interim impairment test, with the exception that adjustments were made to remove the near-term equity market rise assumption, since much of the market rebound had been experienced in the period between March 31, 2009, and October 1, 2009. A discount rate of 12.9% was used for the October 1, 2009, analysis. A 40% decline in the fair value of our reporting unit, or a 500 basis point increase in the discount rate assumption used during our October 1, 2009, goodwill impairment analysis, would have caused the carrying value of our reporting unit to be in excess of its fair value, which would require the second step to be performed. The second step could have resulted in an impairment loss for goodwill.

     Intangible Assets. Management contract intangible assets identified on the acquisition of a business are capitalized separately from goodwill if the fair value can be measured reliably on initial recognition (transaction date) and, if they are finite-lived, are amortized and recorded as operating expenses on a straight-line basis over their useful lives, from two to 12 years, which reflects the pattern in which the economic benefits are realized. The company considers its own assumptions, which require management’s judgment, about renewal or extension of the term of the arrangement, consistent with its expected use of the asset. A change in the useful life of an intangible asset could have a significant impact on the company’s amortization expense. Where evidence exists that the underlying management contracts are renewed annually at little or no cost to the company, the management contract intangible asset is assigned an indefinite life and reviewed for impairment on an annual basis. The company reevaluates the useful life determination for intangible assets each reporting period to determine whether events and circumstances warrant a revision to the remaining useful life or an indication of impairment.

     Definite-lived intangibles are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable (i.e. carrying amount exceeds the sum of the fair value of the intangible). Intangible assets not subject to amortization are tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment test consists of a comparison of the fair value of an intangible asset with its carrying amount. If the carrying amount of the intangible asset exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. Fair value is determined using an income approach where future cash flows are discounted to arrive at a single present value amount. The income approach includes inputs that require significant management judgment, including discount rates, revenue multiples and AUM growth rates. Changes in these estimates could produce different fair value amounts and therefore different impairment conclusions.

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     Investments. Most of our investments are carried at fair value on our balance sheet with the periodic mark-to-market recorded either in accumulated other comprehensive income in the case of available-for-sale investments or directly to earnings in the case of trading assets. Fair value is generally determined by reference to an active trading market, using quoted close or bid prices as of each reporting period end. When a readily ascertainable market value does not exist for an investment the fair value is calculated based on the expected cash flows of its underlying net asset base, taking into account applicable discount rates and other factors. Since assumptions are made in determining the fair values of investments for which active markets do not exist, the actual value that may be realized upon the sale or other disposition of these investments could differ from the current carrying values. Fair value calculations are also required in association with our quarterly impairment testing of investments. The accuracy of our other-than-temporary impairment assessments is dependent upon the extent to which we are able to accurately determine fair values. Of our $461.7 million total investments at June 30, 2010, those most susceptible to impairment include $130.0 million seed money investments in our affiliated funds. Seed money investments are investments held in Invesco managed funds with the purpose of providing capital to the funds during their development periods. These investments are recorded at fair value using quoted market prices in active markets; there is no modeling or additional information needed to arrive at the fair values of these investments.

     The value of investments may decline for various reasons. The market price may be affected by general market conditions which reflect prospects for the economy as a whole or by specific information pertaining to an industry or individual company. Such declines require further investigation by management, which considers all available evidence to evaluate the realizable value of the investment, including, but not limited to, the following factors:

• The probability that the company will be unable to collect all amounts due according to the contractual terms of a debt security not impaired at acquisition;

• The length of time and the extent to which the market value has been less than cost;

• The financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer such as changes in technology that may impair the earnings potential of the investment or the discontinuance of a component of the business that may affect the future earnings potential;

• The intent and ability of the company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value;

• The decline in the security’s value due to an increase in market interest rates or a change in foreign exchange rates since acquisition;

• Determination that the security is not realizable; or

• An adverse change in estimated cash flows of a beneficial interest.

     Our other-than-temporary impairment analysis of seed money holdings includes a review of the market returns required for each fund portfolio to enable us to recover our original investment. As part of the review, we analyze several scenarios to project the anticipated recovery period of our original investments based on one-, three-, and five-year historical index returns and historical trends in the equity markets. We also analyze the absolute amount of any loss to date, the trend of the losses, and percent declines in values of the seed money investments. Along with intent and ability to hold, all of these scenarios are considered as part of our other-than-temporary impairment analysis of seed money holdings.

     Consolidated Investment Products. The primary beneficiary of VIEs consolidate the VIEs. A VIE is an entity that does not have sufficient equity to finance its operations without additional subordinated financial support, or an entity for which the risks and rewards of ownership are not directly linked to voting interests. The company provides investment management services to, and has transactions with, various private equity funds, real estate funds, fund-of-funds, CLOs, and other investment entities sponsored by the company for the investment of client assets in the normal course of business. The company serves as the investment manager, making day-to-day investment decisions concerning the assets of the products. Certain of these entities are considered to be VIEs.

     For all investment funds with the exception of CLOs, if the company is deemed to have a variable interest in these entities, the company is deemed to be the fund’s primary beneficiary if the company has the majority of rewards/risks of ownership. For CLOs, if the company is deemed to have a variable interest in these entities, the company is deemed to be the fund’s primary beneficiary if it has the power to direct the activities of the CLO that most significantly impact the CLO’s economic performance, and the obligation to absorb losses/right to receive benefits from the CLO that could potentially be significant to the CLO.

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     Assessing if an entity is a VIE or VOE involves judgment and analysis on a structure-by-structure basis. Factors included in this assessment include the legal organization of the entity, the company’s contractual involvement with the entity and any related party or de facto agent implications of the company’s involvement with the entity. Generally, limited partnership entities where the general partner does not have substantive equity investment at risk and where the other limited partners do not have substantive (greater than 50%) rights to remove the general partner or to dissolve the limited partnership are VIEs. Additionally, certain investment products are voting interest entities (VOEs) and are structured as limited partnerships of which the company is the general partner and is deemed to have control with the lack of substantive kick-out, liquidation or participation rights of the other limited partners. These investment products are also consolidated into the company’s financial statements.

     Determining if the company is the primary beneficiary of a VIE also requires significant judgment, as the calculation of expected losses and residual returns (for investment products other than CLOs) involves estimation and probability assumptions. For CLOs, there is judgment involved to assess if the company has the power to direct the activities that most significantly effect the CLOs economic results and to assess if the company’s interests could be deemed significant. If current financial statements are not available for consolidated VIEs or VOEs, estimation of investment valuation is required, which includes assessing available quantitative and qualitative data. Significant changes in these estimates could impact the reported value of the investments held by consolidated investment products and the related offsetting equity attributable to noncontrolling interests in consolidated entities on the Condensed Consolidated Balance Sheets and the other gains and losses of consolidated investment products, net, and related offsetting gains and losses attributable to noncontrolling interests in consolidated entities, net, amounts on the Condensed Consolidated Statements of Income.

     As of June 30, 2010, the company consolidated VIEs that held investments of $6,171.9 million (December 31, 2009: $67.9 million) and VOE partnership investments of $616.5 million (December 31, 2009: $617.1 million). As circumstances supporting estimates and factors change, the determination of VIE and primary beneficiary status may change, as could the determination of the necessity of consolidation of VOEs.

Recent Accounting Standards

     See Part I, Item 1, “Financial Statements — Note 1, Accounting Policies — Accounting Pronouncements Recently Adopted and Pending Accounting Pronouncements.”

Item 3. Quantitative and Qualitative Disclosures About Market Risk

     In the normal course of its business, the company is primarily exposed to market risk in the form of securities market risk, interest rate risk, and foreign exchange rate risk.

AUM Market Price Risk

     The company’s investment management revenues are comprised of fees based on a percentage of the value of AUM. Declines in equity or fixed income security market prices could cause revenues to decline because of lower investment management fees by:

• Causing the value of AUM to decrease.

• Causing the returns realized on AUM to decrease (impacting performance fees).

• Causing clients to withdraw funds in favor of investments in markets that they perceive to offer greater opportunity and that the company does not serve.

• Causing clients to rebalance assets away from investments that the company manages into investments that the company does not manage.

• Causing clients to reallocate assets away from products that earn higher revenues into products that earn lower revenues.

Underperformance of client accounts relative to competing products could exacerbate these factors.

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Securities Market Risk

     The company has investments in sponsored investment products that invest in a variety of asset classes. Investments are generally made to establish a track record or to hedge exposure to certain deferred compensation plans. The company’s exposure to market risk arises from its investments. A 20% increase or decrease in the fair value of investments exposed to market risk is not material to the operating results of the company.

Interest Rate Risk

     Interest rate risk relates to the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The company is exposed to interest rate risk primarily through its external debt and cash and cash equivalent investments. On June 30, 2010, the interest rates on 53.4% of the company’s borrowings were fixed for an average period of 2.9 years. Borrowings under the credit facility, which represent 46.6% of the company’s borrowings, have floating interest rates. A 1% change in the level of interest rates on current debt levels would change annualized interest expense by $6.5 million but would not have a material impact on the ability of the company to continue to service its indebtedness.

Foreign Exchange Rate Risk

     The company has transactional currency exposures that occur when any of the company’s subsidiaries receives or pays cash in a currency different from its functional currency. Such exposure arises from sales or purchases by an operating unit in currencies other than the unit’s functional currency. These exposures are not actively managed.

     The company also has certain investments in foreign operations, whose net assets and results of operations are exposed to foreign currency translation risk when translated into U.S. dollars upon consolidation into Invesco Ltd. The company does not hedge these exposures.

     The company is exposed to foreign exchange revaluation into the income statement on monetary assets and liabilities that are held by subsidiaries in different functional currencies than the subsidiaries’ functional currencies. Net foreign exchange revaluation losses were $3.9 million for the six months ended June 30, 2010, and $6.9 million in gains in the comparable prior year period, and are included in general and administrative and other gains and losses, net on the Condensed Consolidated Statements of Income. We continue to monitor our exposure to foreign exchange revaluation.

Item 4. Controls and Procedures

     Our management is responsible for establishing and maintaining disclosure controls and procedures that are designed to ensure that information the company is required to disclose in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include controls and procedures designed to ensure that the company’s management, including its principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure.

     We have evaluated, with the participation of our chief executive officer and chief financial officer, the effectiveness of our disclosure controls and procedures as of June 30, 2010. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives. Based upon our evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the applicable rules and forms, and that it is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding required disclosure.

     We have evaluated any change in our internal control over financial reporting that occurred during the six months ended June 30, 2010, and have concluded that there was no change that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

     Following the industry-wide regulatory investigations in 2003 and 2004, multiple lawsuits based on market timing allegations were filed against various parties affiliated with Invesco. These lawsuits were consolidated in the United States District Court for the District of Maryland, together with market timing lawsuits brought against affiliates of other mutual fund companies, and on September 29, 2004, three amended complaints were filed against company-affiliated parties: (1) a putative shareholder class action complaint brought on behalf of shareholders of AIM funds formerly advised by Invesco Funds Group, Inc.; (2) a derivative complaint purportedly brought on behalf of certain AIM funds and the shareholders of such funds; and (3) an ERISA complaint purportedly brought on behalf of participants in the company’s 401(k) plan. The company and plaintiffs have reached settlements in principle of these lawsuits. The proposed settlements, which are subject to court approval, call for a payment by the company of $9.8 million, recorded in general and administrative expenses in the Consolidated Statement of Income in 2007, in exchange for dismissal with prejudice of all pending claims. In addition, under the terms of the proposed settlements, the company may incur certain costs in connection with providing notice of the proposed settlements to affected shareholders. Based on information currently available, it is not believed that any such incremental notice costs will have any material effect on the consolidated financial position or results of operations of the company.

     The asset management industry also is subject to extensive levels of ongoing regulatory oversight and examination. In the United States and other jurisdictions in which the company operates, governmental authorities regularly make inquiries, hold investigations and administer market conduct examinations with respect to compliance with applicable laws and regulations. Additional lawsuits or regulatory enforcement actions arising out of these inquiries may in the future be filed against the company and related entities and individuals in the U.S. and other jurisdictions in which the company and its affiliates operate. Any material loss of investor and/or client confidence as a result of such inquiries and/or litigation could result in a significant decline in assets under management, which would have an adverse effect on the company’s future financial results and its ability to grow its business.

     In the normal course of its business, the company is subject to various litigation matters. Although there can be no assurances, at this time management believes, based on information currently available to it, that it is not probable that the ultimate outcome of any of these actions will have a material adverse effect on the consolidated financial condition or results of operations of the company.

Item 1A. Risk Factors

     The company has had no significant changes in its risk factors from those previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2009.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Repurchases of Equity Securities

     The following table sets forth information regarding purchases of our common shares by us and any affiliated purchases during the three months ended June 30, 2010:

							Maximum Number at end of
					Total Number of		period (or Approximate
					Shares Purchased as		Dollar Value) of Shares that
					Part of Publicly		May Yet Be Purchased
	Total Number of		Average Price		Announced Plans		Under the Plans
Month	Shares Purchased(1)		Paid Per Share		or Programs(2)		or Programs(2)
April 1-30, 2010		4,594		22.56		—	$	1,360,608,682
May 1-31, 2010		46,922		21.66		—	$	1,360,608,682
June 1-30, 2010		32,430		17.48		—	$	1,360,608,682
Total		83,946				—

(1)	An aggregate of 83,946 restricted share awards were surrendered to us by Invesco employees to satisfy tax withholding obligations or loan repayments in connection with the vesting of equity awards.
(2)	On April 23, 2008, our board of directors authorized a share repurchase authorization of up to $1.5 billion of our common shares with no stated expiration date.

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Item 3. Defaults upon Senior Securities

     None.

Item 4. Submission of Matters to a Vote of Security Holders

     None.

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Item 6. Exhibits

Exhibit Index

3.1	Memorandum of Association of Invesco Ltd., incorporating amendments up to and including December 4, 2007, incorporated by reference to exhibit 3.1 to Invesco’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on December 12, 2007
3.2	Amended and Restated Bye-Laws of Invesco Ltd., incorporating amendments up to and including December 4, 2007, incorporated by reference to exhibit 3.2 to Invesco’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on December 12, 2007
10.1	Credit Agreement, dated as of May 24, 2010, among Invesco Holding Company Limited, IVZ, Inc., Invesco Ltd., the banks, financial institutions and other institutional lenders from time to time a party thereto, and Bank of America, N.A., as administrative agent
10.2	Description of Material Employment Terms for G. Mark Armour
31.1	Certification of Martin L. Flanagan pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Loren M. Starr pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Martin L. Flanagan pursuant to Rule 13a-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of Loren M. Starr pursuant to Rule 13a-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	INVESCO LTD.
August 2, 2010	By:	/s/ MARTIN L. FLANAGAN
		Martin L. Flanagan
		President and Chief Executive Officer
August 2, 2010	By:	/s/ LOREN M. STARR
		Loren M. Starr
		Senior Managing Director and Chief Financial Officer

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EX-10.1

Exhibit 10.1

EXECUTION VERSION

Published Deal CUSIP Number: 45072UAC5
Published Revolving Commitment CUSIP Number: 45072UAD3

CREDIT AGREEMENT

Dated as of May 24, 2010

Among

INVESCO HOLDING COMPANY LIMITED
and
IVZ, INC.,
as Borrowers

INVESCO LTD.,
as Parent

and

THE INITIAL LENDERS NAMED HEREIN,
as Initial Lenders

and

BANK OF AMERICA, N.A.,
as Administrative Agent, Swing Line Lender and L/C Issuer,

BANC OF AMERICA SECURITIES LLC
and
CITIGROUP GLOBAL MARKETS INC.,
as Joint Lead Arrangers and Book Managers

CITIBANK N.A.,
as Syndication Agent

THE BANK OF NEW YORK MELLON,
HSBC BANK USA, NATIONAL ASSOCIATION,
MORGAN STANLEY BANK,
SUNTRUST BANK,
THE TORONTO-DOMINION BANK,
as Co-Documentation Agents

Table of Contents

		Page
ARTICLE I DEFINITIONS AND ACCOUNTING TERMS			1
Section 1.01	Certain Defined Terms		1
Section 1.02	Computation of Time Periods		22
Section 1.03	Accounting Terms		22
Section 1.04	Letter of Credit Amounts		23
ARTICLE II AMOUNTS AND TERMS OF THE ADVANCES			23
Section 2.01	The Advances		23
Section 2.02	Making the Advances		24
Section 2.03	Letters of Credit		25
Section 2.04	Swing Line Loans		34
Section 2.05	Fees		37
Section 2.06	Termination or Reduction of the Commitments		38
Section 2.07	Repayment of Advances		38
Section 2.08	Interest on Advances		38
Section 2.09	Interest Rate Determination		39
Section 2.10	Optional Conversion of Advances		40
Section 2.11	Prepayments of Advances		40
Section 2.12	Increased Costs		41
Section 2.13	Illegality; Circumstances Affecting Availability		43
Section 2.14	Payments Generally and Computations		43
Section 2.15	Taxes		44
Section 2.16	Sharing of Payments, Etc		48
Section 2.17	Use of Proceeds		49
Section 2.18	Cash Collateral and Other Credit Support		49
Section 2.19	Joint and Several Liability		51
ARTICLE III CONDITIONS TO EFFECTIVENESS AND LENDING			54
Section 3.01	Conditions Precedent to Effectiveness		54
Section 3.02	Conditions Precedent to Each Borrowing and Each L/C Credit Extension		56
Section 3.03	Determinations Under Section 3.01		56

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Table of Contents
(continued)

		Page
ARTICLE IV REPRESENTATIONS AND WARRANTIES			57
Section 4.01	Representations and Warranties of the Parent and the Borrowers		57
ARTICLE V COVENANTS OF THE BORROWER			60
Section 5.01	Affirmative Covenants		60
Section 5.02	Negative Covenants		64
Section 5.03	Financial Covenants		68
ARTICLE VI EVENTS OF DEFAULT			69
Section 6.01	Events of Default		69
Section 6.02	Application of Funds		72
ARTICLE VII ADMINISTRATIVE AGENT			73
Section 7.01	Appointment and Authority		73
Section 7.02	Rights as a Lender		74
Section 7.03	Exculpatory Provisions		74
Section 7.04	Reliance by Administrative Agent		75
Section 7.05	Delegation of Duties		75
Section 7.06	Resignation of Administrative Agent		75
Section 7.07	Non-Reliance on Administrative Agent and Other Lenders		76
Section 7.08	No Other Duties, Etc		76
Section 7.09	Administrative Agent May File Proofs of Claim		77
Section 7.10	Guaranty Matters		77
ARTICLE VIII MISCELLANEOUS			78
Section 8.01	Amendments, Etc		78
Section 8.02	Notices; Effectiveness; Electronic Communication		79
Section 8.03	No Waiver; Remedies		81
Section 8.04	Expenses; Indemnity; Damage Waiver		81
Section 8.05	Right of Set-off		83
Section 8.06	Successors and Assigns		84
Section 8.07	Treatment of Certain Information; Confidentiality		88
Section 8.08	Governing Law		89

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Table of Contents
(continued)

		Page
Section 8.09	Execution in Counterparts		89
Section 8.10	Survival of Representations and Warranties		89
Section 8.11	Replacement of Lenders		90
Section 8.12	Jurisdiction, Etc		90
Section 8.13	Judgment		91
Section 8.14	Waiver of Jury Trial		92
Section 8.15	USA PATRIOT Act Notice		92
Section 8.16	Defaulting Lenders		92
Section 8.17	No Advisory or Fiduciary Relationship		94
Section 8.18	Interest Rate Limitation		95
Section 8.19	Severability		95

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SCHEDULES
Schedule I	List of Applicable Lending Offices
Schedule 1.01	Commitments
Schedule 1.02	Mandatory Costs
Schedule 4.01(b)	Subsidiaries
Schedule 4.01(d)	Required Authorizations
Schedule 4.01(i)	Disclosed Litigation
Schedule 5.02(a)	Existing Liens
Schedule 8.02	Administrative Agent’s Office; Certain Addresses for Notices
EXHIBITS
	Form of
Exhibit A	Note
Exhibit B-1	Notice of Borrowing
Exhibit B-2	Swing Line Loan Notice
Exhibit C	Assignment and Assumption
Exhibit D-1	Subsidiary Guaranty
Exhibit D-2	Parent Guaranty
Exhibit E	Opinion of U.S. Counsel for the Borrowers and certain other Loan Parties
Exhibit F	Opinion of U.K. Counsel for IHCL
Exhibit G	Opinion of Bermuda Counsel for the Parent
Exhibit H	Compliance Certificate
Exhibit I	U.K. Tax Compliance Certificate

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CREDIT AGREEMENT

     This Credit Agreement (the “Agreement”) is entered into as of May 24, 2010 among Invesco Holding Company Limited, a company organized under the laws of England and Wales (“IHCL”), IVZ, Inc., a Delaware corporation (“IVZ”, and together with IHCL, collectively, the “Borrowers” and each individually, a “Borrower”), Invesco Ltd., a company organized under the laws of Bermuda (the “Parent”), the banks, financial institutions and other institutional lenders (the “Initial Lenders”) listed on the signature pages hereof, and Bank of America, N.A. (“Bank of America”), as administrative agent (the “Administrative Agent” or “Agent”) for the Lenders (as hereinafter defined) and as Swing Line Lender and L/C Issuer (each as hereinafter defined), hereby agree as follows:

PRELIMINARY STATEMENT

     The Borrowers have requested that the Lenders provide a revolving credit facility in a principal amount of up to $1,250,000,000, and the Lenders are willing to do so on the terms and conditions set forth herein.

     NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements contained herein, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

     Section 1.01 Certain Defined Terms. As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined):

     “Adjusted Debt” outstanding on any date means the sum, without duplication, of (a) the aggregate principal amount of all Debt of the Parent and its Subsidiaries, on a Consolidated basis, outstanding on such date of the kinds referred to in clauses (a), (c), (d), (e), (f) and (h) (exclusive in clause (h) of the Debt of the kind referred to in clauses (b) and (g)) of the definition of “Debt” and (b) the aggregate principal amount of all Debt of the Parent and its Subsidiaries, on a Consolidated basis, outstanding on such date of the kinds referred to in clause (i) of the definition of Debt that relates to Debt of other Persons of the kinds referred to in clauses (a), (c), (d), (e), (f) and (h) (exclusive in clause (h) of the Debt of the kind referred to in clauses (b) and (g)), of the definition of “Debt”.

     “Administrative Agent’s Account” means the account of the Administrative Agent maintained by the Administrative Agent at Bank of America with its office at Charlotte, North Carolina, ABA No. 026009593, Account No. 1366212250600 Bank of America N.A. New York, NY Account Name: Corporate Credit Support Re: Invesco.

     “Advance” means an advance by a Lender to a Borrower as part of a Borrowing and, unless such Borrowing is a Swing Line Loan, refers to a Base Rate Advance or a Eurocurrency Rate Advance (each of which shall be a “Type” of Advance), and, as the

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context may require, includes an advance of a Swing Line Loan by the Swing Line Lender to a Borrower.

     “Affiliate” means, as to any Person, any other Person that, directly or indirectly, controls, is controlled by or is under common control with such Person or is a director or officer of such Person. For purposes of this definition, the term “control” (including the terms “controlling”, “controlled by” and “under common control with”) of a Person means the possession, direct or indirect, of the power to vote 10% or more of the Voting Stock of such Person or to direct or cause the direction of the management and policies of such Person, whether through the ownership of Voting Stock, by contract or otherwise.

     “Applicable All In Drawn LIBOR Spread” means, from time to time, the percentages per annum based upon the Debt Rating as set forth below:

Pricing Level		Debt Rating	All In Drawn LIBOR Spread
	1	≥ A+/A1	(i) 75% of CDX Index Spread rate or
			(ii) 1.000%, whichever is greater
	2	A/A2	(i) 85% of CDX Index Spread rate or
			(ii) 1.125%, whichever is greater
	3	A-/A3	(i) 100% of CDX Index Spread rate or
			(ii) 1.375%, whichever is greater
	4	BBB+/Baa1	(i) 125% of CDX Index Spread rate or
			(ii) 1.750%, whichever is greater
	5	≤ BBB/Baa2	(i) 150% of CDX Index Spread rate or
			(ii) 2.250%, whichever is greater

     Where,

     “CDX Index Spread” means, as of any date of determination, the spread associated with the Markit CDX.NA.IG Series 14 or any successor series (5 Year Period), as available on such date to the applicable office of the Administrative Agent. The CDX Index Spread will be determined (a) in the case of Eurocurrency Rate Advances, on the Business Day on which the Eurocurrency Rate for the initial and any subsequent Interest Period applicable thereto is set and, for such Eurocurrency Rate Advances with an Interest Period longer than three months, at the end of each successive three-month period after the first day of such Interest Period and (b) in the case of Base Rate Advances and Letters of Credit, on the Effective Date and on the last Business Day of each calendar quarter, commencing with the calendar quarter in which the Effective Date occurs.

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     “Debt Rating” means, as of any date of determination, the rating as determined by either S&P or Moody’s (collectively, the “Debt Ratings”) of (i) IHCL’s non-credit-enhanced, senior unsecured long-term debt, or (ii) if IHCL does not have any such rated debt, IVZ’s non-credit-enhanced (except as guaranteed by IHCL and the other Guarantors), senior unsecured long-term debt, or (iii) if neither IHCL nor IVZ has such rated debt, respectively, the senior credit facility provided to the Borrowers by this Agreement and the other Loan Documents; provided that (a) if the respective Debt Ratings issued by the foregoing rating agencies differ by one level, then the Pricing Level for the higher of such Debt Ratings shall apply (with the Debt Rating for Pricing Level 1 being the highest and the Debt Rating for Pricing Level 5 being the lowest); (b) if there is a split in Debt Ratings of more than one level, then the Pricing Level that is one level lower than the Pricing Level of the higher Debt Rating shall apply; (c) if only one Debt Rating is provided, the Pricing Level that is one level lower than that of such Debt Rating shall apply; and (d) if no Debt Ratings exist, Pricing Level 5 shall apply.

     “Markit” means Markit Group, Ltd.

Initially, the Applicable All In Drawn LIBOR Spread shall be determined based upon the Debt Rating specified in the certificate delivered pursuant to Section 3.01(c)(ix). Thereafter, each change in the Applicable All In Drawn LIBOR Spread resulting from a publicly announced change in the Debt Rating shall be effective during the period commencing on the date of the public announcement thereof and ending on the date immediately preceding the effective date of the next such change.

     “Applicable Lending Office” means, with respect to each Lender, such Lender’s Domestic Lending Office in the case of a Base Rate Advance and such Lender’s Eurocurrency Lending Office in the case of a Eurocurrency Rate Advance.

     “Applicable Margin for Base Rate Advances” means, as of any date, the Applicable Margin for Eurocurrency Rate Advances less 1.00%.

     “Applicable Margin for Eurocurrency Rate Advances” means, as of any date, the Applicable All in Drawn LIBOR Spread less the Applicable Percentage. If the CDX Index Spread is unavailable on the date of determination, the Applicable All In Drawn LIBOR Spread will be calculated using the CDX Index Spread in effect on the day immediately prior to the unavailability of the CDX Index Spread unless and until the Borrowers and the Required Lenders agree on an alternative method of calculating the Applicable Margin for Eurocurrency Rate Advances.

     “Applicable Percentage” means, as of any date, a percentage per annum determined by reference to the Debt Rating applicable on such date as set forth below:

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Debt Rating	Applicable Percentage
≥ A+/A1		0.200	%
A/A2		0.250	%
A-/A3		0.300	%
BBB+/Baa1		0.350	%
≤ BBB/Baa2		0.450	%

Initially, the Applicable Percentage shall be determined based upon the Debt Rating specified in the certificate delivered pursuant to Section 3.01(c)(ix). Thereafter, each change in the Applicable Percentage resulting from a publicly announced change in the Debt Rating shall be effective during the period commencing on the date of the public announcement thereof and ending on the date immediately preceding the effective date of the next such change.

     “Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

     “Arrangers” means the entities listed as Joint Lead Arrangers on the cover page hereto.

     “Assignee Group” means two or more Eligible Assignees that are Affiliates of one another or two or more Approved Funds managed by the same investment advisor.

     “Assignment and Assumption” means an assignment and assumption agreement entered into by a Lender and an Eligible Assignee, and accepted by the Administrative Agent, in substantially the form of Exhibit C attached hereto.

     “Audited Financial Statements” means the audited Consolidated balance sheet of the Parent and its Subsidiaries for the fiscal year ended December 31, 2009 and the related Consolidated statements of income or operations, shareholders’ equity and cash flows for such fiscal year of the Parent and its Subsidiaries, including the notes thereto.

     “Bank of America” has the meaning specified in the recital of parties to this Agreement.

     “Base Rate” means for any day a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate plus ¹/2 of 1%, (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate”, and (c) the Eurocurrency Rate for an Interest Period of one month plus 1.00%. The “prime rate” is a rate set by Bank of America based upon various factors including Bank of America’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above, or below such

4

announced rate. Any change (i) in such prime rate announced by Bank of America shall take effect at the opening of business on the day specified in the public announcement of such change, and (ii) in the Eurocurrency Rate described in clause (c) above shall take effect on the date of such change.

     “Base Rate Advance” means an Advance denominated in Dollars that bears interest as provided in Section 2.08(a)(i).

     “Borrower” or “Borrowers” has the meaning specified in the recital of parties to this Agreement.

     “Borrower Agent” has the meaning specified therefor in Section 2.19(j).

     “Borrowing” means a borrowing consisting of simultaneous Advances of the same Type, and in the case of Eurocurrency Rate Advances, having the same Interest Period, made by each of the Lenders pursuant to Section 2.01 or a Swing Line Borrowing, or both, as the context may require.

     “Business Day” means a day of the year other than a day on which banks are required or authorized by law to close in New York City and Charlotte, North Carolina and, if the applicable Business Day relates to any Eurocurrency Rate Advances, a day on which dealings are carried on in the London interbank market and banks are open for business in London.

     “Capital Leases” means all leases that have been or should be, in accordance with GAAP, recorded as capital leases.

     “Cash Collateralize” means to pledge and deposit with or deliver to the Administrative Agent, for the benefit of the Administrative Agent, the L/C Issuer or the Swing Line Lender (as applicable) and the Lenders, as collateral for L/C Obligations, Obligations in respect of Swing Line Loans, or obligations of Lenders to fund participations in respect of either thereof (as the context may require) cash or deposit account balances or, if the L/C Issuer or Swing Line Lender benefitting from such collateral shall agree in its sole discretion, other credit support constituting Cash Equivalents, in each case pursuant to documentation in form and substance reasonably satisfactory to (a) the Administrative Agent and (b) the L/C Issuer or the Swing Line Lender (as applicable). “Cash Collateral” shall have a meaning correlative to the foregoing and shall include the proceeds of such cash collateral and other credit support. All Cash Collateral shall be denominated in Dollars or the Equivalent in Dollars of Sterling with respect to Cash Collateral related to Obligations denominated in Sterling, except as otherwise provided herein.

     “Cash Equivalents” means, at any time (a) debt issued or guaranteed by the United States government or any agency thereof, maturing not more than 90 days after such time, (b) commercial paper, maturing not more than 90 days from the date of issue, which is issued by a corporation (other than an Affiliate of the Parent) rated at least A-1 by S&P or P-1 by Moody’s, (c) any certificate of deposit, maturing not more than 90 days after the date of issue, which is issued by a financial institution which is rated at least A-

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by S&P or A3 by Moody’s, and (d) investments in money market funds that invest substantially all of their assets in Cash Equivalents of the types described in clauses (a) through (c) above.

     “Commitment” means, as to any Lender, the Dollar amount set forth opposite its name on Schedule 1.01 or, if such Lender has entered into any Assignment and Assumption, the Dollar amount set forth for such Lender in the Register maintained by the Administrative Agent pursuant to Section 8.06(c), in each case as such amount may be reduced pursuant to Section 2.06.

     “Compliance Certificate” means a compliance certificate in the form of Exhibit H attached hereto.

     “Consolidated” refers to the consolidation of accounts in accordance with GAAP.

     “Convert”, “Conversion” and “Converted” each refers to a conversion of Advances of one Type into Advances of the other Type pursuant to Section 2.09, 2.10 or 2.13, and with respect to any Eurocurrency Rate Advance in Sterling that is Converted into a Base Rate Advance pursuant to any such Section, includes a conversion of such amount of Sterling into Dollars based upon the Equivalent in Dollars of Sterling.

     “Debt” of any Person means, without duplication, (a) all indebtedness of such Person for borrowed money, (b) all obligations of such Person for the deferred purchase price of property or services (other than (i) trade payables and other current accruals incurred in the ordinary course of such Person’s business and payable on customary terms and (ii) earn-out obligations), (c) all obligations of such Person evidenced by notes, bonds, debentures or other similar instruments, (d) all obligations of such Person created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property) (other than trade payables incurred in the ordinary course of such Person’s business and payable on customary terms), (e) all obligations of such Person as lessee under Capital Leases, (f) all obligations, contingent or otherwise, of such Person in respect of acceptances, letters of credit or similar extensions of credit, (g) all net payment obligations of such Person in respect of Hedge Agreements on the date of determination, (h) all Debt of others referred to in clauses (a) through (g) above or clause (i) below guaranteed directly or indirectly in any manner by such Person, or in effect guaranteed directly or indirectly by such Person through a written agreement (1) to pay or purchase such Debt or to advance or supply funds for the payment or purchase of such Debt, (2) to purchase, sell or lease (as lessee or lessor) property, or to purchase or sell services, primarily for the purpose of enabling the debtor to make payment of such Debt or to assure the holder of such Debt against loss, (3) to supply funds to or in any other manner invest in the debtor (including any agreement to pay for property or services irrespective of whether such property is received or such services are rendered) or (4) otherwise to assure a creditor against loss, and (i) all Debt referred to in clauses (a) through (h) above secured by (or for which the holder of such Debt has an existing right, contingent or otherwise, to be secured by) any Lien on property (including, without limitation, accounts

6

and contract rights) owned by such Person, even though such Person has not assumed or become liable for the payment of such Debt, but with respect to such Debt that is non-recourse, only to the extent of the lesser of the amount of such Debt or the fair market value of the property at the time of determination that is encumbered by such Lien, provided that, in no event shall “Debt” include any obligations of the Parent or any of its Subsidiaries incurred in connection with any securitization program described in Section 5.02(c)(ii).

     “Debt/EBITDA Ratio” means, as of any date of determination, the ratio of (a) Adjusted Debt (excluding (i) Subsidiary Non-Recourse Debt , (ii) so long as the Parent and its Subsidiaries own 100% of the Office Equipment Sale and Leaseback Bonds, liabilities with respect to the Office Equipment Sale and Leaseback Lease, (iii) the Qualified Equity Portion of Qualified Securities to the extent such amount is otherwise included in Adjusted Debt, (iv) in the event that either Borrower or any Guarantor has issued the 2012 Refinancing Notes in connection with a refinancing of the 2012 Notes, for purposes of calculating the Debt/EBITDA Ratio for the period of four consecutive fiscal quarters of the Parent ending March 31, 2012, the lesser of the aggregate outstanding principal amount of (1) the 2012 Notes and (2) the 2012 Refinancing Notes (in each case to the extent otherwise included in Adjusted Debt), and (v) in the event that either Borrower or any Guarantor has issued the 2013 Refinancing Notes in connection with a refinancing of the 2013 Notes, for purposes of calculating the Debt/EBITDA Ratio for the period of four consecutive fiscal quarters of the Parent ending December 31, 2012, the lesser of the aggregate outstanding principal amount of (1) the 2013 Notes and (2) the 2013 Refinancing Notes (in each case to the extent otherwise included in Adjusted Debt) to (b) EBITDA (excluding for purpose of this calculation of EBITDA only that portion of EBITDA attributable to the net income, expenses, losses, charges and gains of each Special Purpose Subsidiary) for each period of four consecutive fiscal quarters of the Parent ended on or immediately prior to such time.

     “Debt Rating” has the meaning specified in the definition of Applicable All In Drawn LIBOR Spread.

     “Default” means any Event of Default or any event that would constitute an Event of Default but for the requirement that notice be given or time elapse or both.

     “Defaulting Lender” means, subject to Section 8.16(b), any Lender that, as determined by the Administrative Agent, (a) has failed to perform any of its funding obligations hereunder, including in respect of its Advances or participations in respect of Letters of Credit or Swing Line Loans, within three Business Days of the date required to be funded by it hereunder, (b) has notified the Borrowers, or the Administrative Agent or any Lender that it does not intend to comply with its funding obligations or has made a public statement to that effect with respect to its funding obligations hereunder or under other agreements in which it commits to extend credit, (c) has failed, within three Business Days after request by the Administrative Agent, to confirm in a manner satisfactory to the Administrative Agent that it will comply with its funding obligations, or (d) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under the bankruptcy code of the United States or any other liquidation,

7

conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally, (ii) had a receiver, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or a custodian appointed for it, or (iii) taken any action in furtherance of, or indicated its consent to, approval of or acquiescence in any such proceeding or appointment; provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a governmental authority.

     “Disclosed Litigation” has the meaning specified in Section 4.01(i).

     “Dollars” and the “$” sign each means lawful money of the United States of America.

     “Domestic Lending Office” means, with respect to any Lender, the office of such Lender specified as its “Domestic Lending Office” opposite its name on Schedule I hereto or in the Assignment and Assumption pursuant to which it became a Lender, or such other office of such Lender as such Lender may from time to time specify to the Borrowers and the Administrative Agent.

     “EBITDA” means, for any period, net income (or net loss) of the Parent and its Subsidiaries, on a Consolidated basis excluding consolidated investment products plus the sum of (a) interest expense, (b) income tax expense, (c) depreciation expense, (d) amortization expense, (e) extraordinary losses, (f) exceptional losses, and (g) all non-cash charges exclusive of any non-cash charge to the extent it represents a reserve for cash expenditures in any future period, minus (x) extraordinary gains and (y) exceptional gains, in each case determined in accordance with GAAP for such period, and (z) all non-cash gains exclusive of gains for which the Parent expects cash proceeds in a future period; provided, that, for purposes of calculating EBITDA for the Parent and its Subsidiaries for any period, the EBITDA of any Person (or assets or division of such Person) acquired by the Parent or any of its Subsidiaries during such period shall be included on a pro forma basis for such period (assuming the consummation of such acquisition occurred on the first day of such period).

     “Effective Date” has the meaning specified in Section 3.01.

     “Eligible Assignee” means (a) a Lender; (b) an Affiliate of a Lender; (c) an Approved Fund; and (d) any other Person (other than a natural person), subject to such consents as may be required under Section 8.06(b)(iii); provided that notwithstanding the foregoing, “Eligible Assignee” shall not include the Parent, either Borrower or any of the Parent’s Affiliates or Subsidiaries; and provided further, however, that an Eligible Assignee shall include only a Lender, an Affiliate of a Lender or another Person, which, through its lending offices, is capable of lending Sterling to the Borrowers without the imposition of any additional Indemnifiable Taxes.

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     “Environmental Laws” means any and all Federal, state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the release of any materials into the environment, including those related to hazardous substances or wastes, air emissions and discharges to waste or public systems.

     “Equity Interests” means, with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, and all of the other ownership or profit interests in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of determination.

     “Equivalent” in Dollars of Sterling on any date means the equivalent in Dollars of Sterling determined by using the quoted spot rate at which Bank of America’s principal office in London offers to exchange Dollars for Sterling in London at 11:00 A.M. (London time) two Business Days prior to such date, and the “Equivalent” in Sterling of Dollars means the equivalent in Sterling of Dollars determined by using the quoted spot rate at which Bank of America’s principal office in London offers to exchange Sterling for Dollars in London at 11:00 A.M. (London time) two Business Days prior to such date.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated and rulings issued thereunder.

     “ERISA Affiliate” means any Person that for purposes of Title IV of ERISA is a member of any Loan Party’s controlled group, or under common control with any Loan Party, within the meaning of Section 414 (b) or (c) of the Internal Revenue Code or, for purposes of Section 412 and 430 of the Internal Revenue Code, under Section 414(m) or (o) of the Internal Revenue Code.

     “ERISA Event” means (a) (i) the occurrence of a reportable event, within the meaning of Section 4043 of ERISA, with respect to any Plan unless the 30-day notice requirement with respect to such event has been waived by the PBGC, or (ii) at the time when the requirements of subsection (1) of Section 4043(b) of ERISA (without regard to subsection (2) of such Section) are applicable to any Loan Party or any ERISA Affiliate an event described in paragraph (9), (10), (11), (12) or (13) of Section 4043(c) of ERISA is reasonably expected to occur with respect to a Plan within the following 30 days; (b) the filing by any Loan Party or any ERISA Affiliate of an application for a minimum funding waiver with respect to a Plan; (c) the provision by the administrator of any Plan of a notice of intent to terminate such Plan pursuant to Section 4041 or 4041A of ERISA (including any such notice with respect to a plan amendment referred to in Section 4041(e) of ERISA); (d) the cessation of operations at a facility of any Loan Party or any ERISA Affiliate in the circumstances described in Section 4062(e) of ERISA; (e) the withdrawal by any Loan Party or any ERISA Affiliate from a Multiple Employer Plan

9

during a plan year for which it was a substantial employer, as defined in Section 4001(a)(2) of ERISA; (f) the conditions for the imposition of a lien under Section 303(k) of ERISA on the assets of any Loan Party or any ERISA Affiliate shall have been met with respect to any Plan; (g) the adoption of an amendment to a Plan requiring any Loan Party or any ERISA Affiliate to provide security to such Plan pursuant to Section 436(f) of the Internal Revenue Code; or (h) the institution by the PBGC of proceedings to terminate a Plan pursuant to Section 4042 of ERISA, or the occurrence of any event or condition described in Section 4042 of ERISA that constitutes grounds for the termination of, or the appointment of a trustee to administer, a Plan, provided, however, that the event or condition set forth in Section 4042(a)(4) of ERISA shall be an ERISA Event only if the PBGC has notified any Loan Party or any ERISA Affiliate that it has made a determination under such section or that it is considering termination of a Plan on such grounds.

     “Eurocurrency Base Rate” has the meaning specified in the definition of Eurocurrency Rate.

     “Eurocurrency Lending Office” means, with respect to any Lender, the office of such Lender specified as its “Eurocurrency Lending Office” opposite its name on Schedule I hereto or in the Assignment and Assumption pursuant to which it became a Lender (or, if no such office is specified, its Domestic Lending Office), or such other office of such Lender as such Lender may from time to time specify to the Borrowers and the Administrative Agent.

     “Eurocurrency Rate” means for any Interest Period with respect to a Eurocurrency Rate Advance, a rate per annum determined by the Administrative Agent pursuant to the following formula:

		Eurocurrency Base Rate
Eurocurrency Rate	=	1.00 – Eurocurrency Reserve
		Percentage

     Where,

          “Eurocurrency Base Rate” means, for such Interest Period:

     (a) with respect to each Eurocurrency Rate Advance, the rate per annum equal to (i) the British Banker’s Association LIBOR Rate (“BBA LIBOR”), as published by Reuters (or other commercially available source providing quotations of BBA LIBOR as designated by the Administrative Agent from time to time) as approximately 11:00 A.M. (London time), two Business Days prior to the commencement of such Interest Period, for deposits in the relevant currency (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period or (ii) if such rate referenced in the preceding clause (i) is not available at such time for any reason, then the “Eurocurrency Base Rate” for such Interest Period shall be the rate per annum determined by the Administrative Agent to be the rate at which deposits in the relevant currency for

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delivery on the first day of such Interest Period in Same Day Funds in the approximate amount of the Eurocurrency Rate Advance being made, continued or Converted by Bank of America and with a term equivalent to such Interest Period would be offered by Bank of America’s London Branch (or other Bank of America branch or Affiliate) to major banks in the London or other offshore interbank market for such currency at their request at approximately 11:00 A.M. (London time) two Business Days prior to the commencement of such Interest Period.

     (b) for any interest calculation with respect to a Base Rate Advance on any date, the rate per annum equal to (i) BBA LIBOR, at approximately 11:00 a.m. (London time) two Business Days prior to the date of determination, determined daily on each Business Day for deposits in the relevant currency being delivered in the London interbank market for a term of one month commencing that day or (ii) if such rate referenced in the preceding clause (i) is not available at such time for any reason, the rate per annum determined by the Administrative Agent to be the rate at which deposits in the relevant currency for delivery on the date of determination in Same Day Funds in the approximate amount of the Base Rate Advance being made or maintained by Bank of America and with a term equal to one month would be offered by Bank of America’s London Branch (or other Bank of America branch or Affiliate) to major banks in the London or other offshore interbank market for such currency at their request at the date and time of determination.

     “Eurocurrency Reserve Percentage” means, for any day during any Interest Period, the reserve percentage (expressed as a decimal, carried out to five decimal places) in effect on such day under regulations issued from time to time by the Board of Governors of the Federal Reserve System (or any successor) for determining the maximum reserve requirement (including any emergency, supplemental or other marginal reserve requirement) with respect to Eurocurrency funding (currently referred to as “Eurocurrency liabilities”). The Eurocurrency Rate for each outstanding Eurocurrency Rate Advance shall be adjusted automatically as of the effective date of any change in the Eurocurrency Reserve Percentage.

     “Eurocurrency Rate Advance” means an Advance that bears interest as provided in Section 2.08(a)(ii).

     “Events of Default” has the meaning specified in Section 6.01.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Existing Credit Agreement” means that certain Credit Agreement dated as of June 9, 2009 among IVZ, Parent, Bank of America as administrative agent and swingline lender thereunder, and the lenders party thereto.

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     “Existing Debt” means the Debt of the Parent and its Subsidiaries, on a Consolidated basis outstanding as of the Effective Date.

     “FASB ASC” means the Accounting Standards Codification of the Financial Accounting Standards Board.

     “Federal Funds Rate” means, for any day, the rate per annum equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day; provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%) charged to Bank of America on such day on such transactions as determined by the Administrative Agent.

     “Fee Letter” means the letter agreement, dated April 19, 2010, among the Borrowers, the Administrative Agent and Banc of America Securities LLC.

     “Fronting Exposure” means, at any time there is a Defaulting Lender, (a) with respect to the L/C Issuer, such Defaulting Lender’s Pro Rata Share Percentage of the outstanding L/C Obligations other than L/C Obligations as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof, and (b) with respect to the Swing Line Lender, such Defaulting Lender’s Pro Rata Share Percentage of Swing Line Loans other than Swing Line Loans as to which such Defaulting Lender’s participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof.

     “Fund” means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business.

     “GAAP” means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or such other principles as may be approved by a significant segment of the accounting profession in the United States, that are applicable to the circumstances as of the date of determination, consistently applied.

     “Guarantors” means Parent, Invesco Advisers, Inc., a Delaware corporation, Invesco North American Holdings, Inc., a Delaware corporation, and Invesco Management Group Inc., a Delaware corporation, and upon the execution and delivery of an Assumption of Guaranty (as defined in the Subsidiary Guaranty) pursuant to Section 5.01(f) or otherwise by any other Subsidiary of the Parent, such other Subsidiary.

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     “Guaranty” means each of the Parent Guaranty and the Subsidiary Guaranty.

     “Hedge Agreements” means interest rate swap, cap or collar agreements, interest rate future or option contracts, currency swap agreements, currency future or option contracts and other similar agreements.

     “IHCL” has the meaning specified in the recital of parties to this Agreement.

     “Indemnifiable Taxes” has the meaning specified in Section 2.15(a).

     “Initial Lenders” has the meaning specified in the recital of parties to this Agreement.

     “Insufficiency” means, with respect to any Plan, the amount, if any, of its unfunded benefit liabilities, as defined in Section 4001(a)(18) of ERISA.

     “Interest Period” means, for each Eurocurrency Rate Advance comprising part of the same Borrowing, the period commencing on the date of such Eurocurrency Rate Advance or the date of the Conversion of any Base Rate Advance into such Eurocurrency Rate Advance and ending on the last day of the period selected by the applicable Borrower pursuant to the provisions below and, thereafter, with respect to Eurocurrency Rate Advances, each subsequent period commencing on the last day of the immediately preceding Interest Period and ending on the last day of the period selected by the applicable Borrower pursuant to the provisions below. The duration of each such Interest Period for each Eurocurrency Rate Advance shall be one, two, three or six months, as the applicable Borrower may, upon notice received by the Administrative Agent not later than 11:00 A.M. (New York City time) on the third Business Day prior to the first day of such Interest Period, select; provided, however, that:

     (i) the Borrowers may not select any Interest Period that ends after the Termination Date;

     (ii) Interest Periods commencing on the same date for Eurocurrency Rate Advances comprising part of the same Borrowing shall be of the same duration;

     (iii) whenever the last day of any Interest Period would otherwise occur on a day other than a Business Day, the last day of such Interest Period shall be extended to occur on the next succeeding Business Day, provided, however, that, if such extension would cause the last day of such Interest Period to occur in the next following calendar month, the last day of such Interest Period shall occur on the next preceding Business Day; and

     (iv) whenever the first day of any Interest Period occurs on a day of an initial calendar month for which there is no numerically corresponding day in the calendar month that succeeds such initial calendar month by the number of months equal to the number of months in such Interest Period, such Interest Period shall end on the last Business Day of such succeeding calendar month.

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     “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended from time to time, and the regulations promulgated and rulings issued thereunder.

     “ISP” means, with respect to any Letter of Credit, the “International Standby Practices 1998” published by the Institute of International Banking Law & Practice, Inc. (or such later version thereof as may be in effect at the time of issuance).

     “Issuer Documents” means with respect to any Letter of Credit, the Letter of Credit Application, and any other document, agreement and instrument entered into by the L/C Issuer and a Borrower (or any Subsidiary) or in favor of the L/C Issuer and relating to such Letter of Credit.

     “IVZ” has the meaning specified in the recital of parties to this Agreement.

     “L/C Advance” means, with respect to each Lender, such Lender’s funding of its participation in any L/C Borrowing in accordance with its Pro Rata Share Percentage. All L/C Advances shall be denominated in Dollars.

     “L/C Borrowing” means an extension of credit resulting from a drawing under any Letter of Credit which has not been reimbursed on the date when made or refinanced as a Borrowing. All L/C Borrowings shall be denominated in Dollars.

     “L/C Credit Extension” means, with respect to any Letter of Credit, the issuance thereof or extension of the expiry date thereof, or the increase of the amount thereof.

     “L/C Issuer” means Bank of America in its capacity as issuer of Letters of Credit hereunder, or any successor issuer of Letters of Credit hereunder.

     “L/C Obligations” means, as at any date of determination, the aggregate amount available to be drawn under all outstanding Letters of Credit plus the aggregate of all Unreimbursed Amounts, including, without duplication, all L/C Borrowings. For purposes of computing the amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with Section 1.04. For all purposes of this Agreement, if on any date of determination a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be “outstanding” in the amount so remaining available to be drawn.

     “Lenders” means the Initial Lenders and each Person that shall become a party hereto pursuant to Section 8.06, and as the context requires, includes the Swing Line Lender.

     “Letter of Credit” means any standby letter of credit issued hereunder.

     “Letter of Credit Application” means an application and agreement for the issuance or amendment of a Letter of Credit in the form from time to time in use by the L/C Issuer.

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     “Letter of Credit Expiration Date” means the day that is seven days prior to the Maturity Date then in effect (or, if such day is not a Business Day, the next preceding Business Day), except as otherwise provided herein.

     “Letter of Credit Fee” has the meaning specified in Section 2.03(h).

     “Letter of Credit Sublimit” means an amount equal to $150,000,000. The Letter of Credit Sublimit is part of, and not in addition to, the Total Commitments.

     “Lien” means any lien, security interest or other charge or encumbrance of any kind, including, without limitation, the lien or retained security title of a conditional vendor and any easement, right of way or other encumbrance on title to real property.

     “Loan Documents” means this Agreement, the Notes, each Guaranty, each Issuer Document, and any agreement creating or perfecting rights in Cash Collateral pursuant to the provisions of Section 2.18 of this Agreement.

     “Loan Parties” means, collectively, each Borrower and each Guarantor (each individually, a “Loan Party”).

     “Mandatory Costs” means with respect to any period, the percentage rate per annum determined in accordance with Schedule 1.02.

     “Material Adverse Change” means any material adverse change in the business, condition (financial or otherwise), operations, performance or properties of the Parent and its Subsidiaries taken as a whole.

     “Material Adverse Effect” means a material adverse effect on (a) the business, condition (financial or otherwise), operations, performance or properties of the Parent and its Subsidiaries taken as a whole, (b) the rights and remedies of the Administrative Agent or any Lender under this Agreement or any Note or (c) the ability of the Borrowers to perform their obligations under this Agreement or any Note.

     “Material Subsidiary” means each Subsidiary of the Parent to which as of the end of any fiscal year of the Parent is attributed twenty percent or more of the Consolidated operating income of the Parent and its Subsidiaries taken as a whole, determined by reference to the most recent annual audited financial statements delivered by the Parent to the Lenders pursuant to Section 5.01(h) or, in the case of any Subsidiary of the Parent that is acquired or is merged with or into any other Subsidiary of the Parent, determined by reference to the pro forma financial statements of the Parent and its Subsidiaries prepared in accordance with GAAP as of the most recent fiscal year end of the Parent, giving effect to such acquisition or merger as if such transaction had been consummated as of the last day of such fiscal year.

     “Maturity Date” means the date that is three (3) years after the Effective Date.

     “Moody’s” means Moody’s Investors Service, Inc. and any successor thereto.

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     “Multiemployer Plan” means a multiemployer plan, as defined in Section 4001(a)(3) of ERISA, to which any Loan Party or any ERISA Affiliate is making or accruing an obligation to make contributions, or has within any of the preceding five plan years made or accrued an obligation to make contributions.

     “Multiple Employer Plan” means a Plan which has two or more contributing sponsors (including either Borrower or any ERISA Affiliate) at least two of whom are not under common control, as such a plan is described in Section 4064 of ERISA.

     “Note” means a promissory note of the Borrowers payable to the order of any Lender, in substantially the form of Exhibit A hereto, evidencing the aggregate indebtedness of the Borrowers to such Lender resulting from the Advances made by such Lender, as it may be amended, restated or modified from time to time, or any substitute therefor or replacement thereof.

     “Notice of Borrowing” has the meaning specified in Section 2.02(a).

     “Obligations” means all advances to, and debts, liabilities, obligations, covenants and duties of, either Borrower arising under any Loan Document, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against either Borrower of any proceeding under the bankruptcy code of the United States or any other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally naming such Borrower as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding.

     “Office Equipment Sale and Leaseback” means the sale and leaseback transaction pursuant to which Invesco Group Services, Inc. sold office equipment for its Atlanta, Georgia headquarters facility to the Development Authority of Fulton County for an aggregate price not in excess of $20,000,000 and then leased back such office equipment from the Development Authority of Fulton County.

     “Office Equipment Sale and Leaseback Bonds” means those certain industrial revenue bonds issued by the Development Authority of Fulton County for the purpose of financing the purchase by the Development Authority of Fulton County of that certain office equipment the subject matter of the Office Equipment Sale and Leaseback.

     “Office Equipment Sale and Leaseback Lease” the lease by Invesco Group Services, Inc. of that certain office equipment subject to the Office Equipment Sale and Leaseback from the Development Authority of Fulton County.

     “Other Taxes” has the meaning specified in Section 2.15(b).

     “Outstanding Amount” means (i) with respect to Advances and Swing Line Loans on any date, the aggregate outstanding principal amount thereof after giving effect to any

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borrowings and prepayments or repayments of Advances and Swing Line Loans, as the case may be, occurring on such date, and (ii) with respect to L/C Obligations on any date, the amount of such L/C Obligations on such date after giving effect to any L/C Credit Extension occurring on such date and any other changes in the aggregate amount of the L/C Obligations as of such date, including as a result of any reimbursement by the Borrowers of Unreimbursed Amounts. For Advances and L/C Obligations denominated in Sterling, for purposes of determining the Outstanding Amount thereof, such amount shall be the Equivalent thereof in Dollars.

     “Overnight Rate” means, for any day, (a) with respect to any amount denominated in Dollars, the greater of (i) the Federal Funds Rate and (ii) an overnight rate determined by the Administrative Agent or the Swing Line Lender, as the case may be, in accordance with banking industry rules on interbank compensation, and (b) with respect to any amount denominated in Sterling, the rate of interest per annum at which overnight deposits in Sterling, in an amount approximately equal to the amount with respect to which such rate is being determined, would be offered for such day by a branch or Affiliate of Bank of America in the applicable offshore interbank market for such currency to major banks in such interbank market.

     “Parent” has the meaning specified in the recital of parties to this Agreement.

     “Parent Guaranty” means that certain Guaranty dated as of the date hereof executed and delivered by the Parent in favor of the Administrative Agent and the Lenders in substantially the form of Exhibit D-2, as amended, supplemented or otherwise modified from time to time.

     “PBGC” means the Pension Benefit Guaranty Corporation (or any successor).

     “Permitted Liens” means such of the following as to which no enforcement, collection, execution, levy or foreclosure proceeding shall have been commenced except as otherwise provided: (a) Liens for taxes, assessments or other governmental charges being contested in good faith by appropriate proceedings promptly initiated and diligently conducted and for which such reserves or other appropriate provision, if any, as shall be required by GAAP shall have been made and maintained in accordance with GAAP and past practices of the Parent and its Subsidiaries therefor and as to which any enforcement, collection, execution, levy or foreclosure proceeding which shall commence or have commenced could not reasonably be expected to result in a Material Adverse Effect; (b) statutory Liens of landlords and Liens of carriers, warehousemen, mechanics and materialmen incurred in the ordinary course of business for sums not yet due or being contested in good faith by appropriate proceedings promptly initiated and diligently conducted and for which such reserves or other appropriate provision, if any, as shall be required by GAAP shall have been made therefor and as to which any enforcement, collection, execution, levy or foreclosure proceeding which shall commence or have commenced could not reasonably be expected to result in a Material Adverse Effect; (c) Liens (other than any Lien imposed by ERISA) incurred or deposits made in the ordinary course of business (i) in connection with workers’ compensation, unemployment insurance and other types of social security, (ii) to secure (or to obtain letters of credit

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that secure) the performance of tenders, statutory obligations, surety and appeal bonds, bids, leases, performance bonds, purchase, construction or sales contracts and other similar obligations, in each case not incurred or made in connection with the borrowing of money, the obtaining of advances or credit or the payment of the deferred purchase price of property, or (iii) in connection with the cash collateralization of letters of credit permitted under Section 5.02(g)(iii); (d) any Liens securing attachments or judgments unless the judgment it secures results or has resulted in an Event of Default under Section 6.01(f); and (e) leases or subleases granted to others, easements, rights of way and other encumbrances on title to real property that, in the case of any property material to the operation of the business of the Parent and its Subsidiaries taken as a whole, do not render title to the property encumbered thereby unmarketable or materially adversely affect the use of such property for its present purposes.

     “Person” means an individual, partnership, corporation (including a business trust), joint stock company, trust, unincorporated association, joint venture, limited liability company or other entity, or a government or any political subdivision or agency thereof.

     “Plan” means a Single Employer Plan or a Multiple Employer Plan.

     “Platform” has the meaning specified in Section 5.01.

     “Pro Rata Share” of any amount means, with respect to any Lender at any time, the product of such amount times such Lender’s Pro Rata Share Percentage at such time.

     “Pro Rata Share Percentage” means with respect to any Lender at any time, the percentage (carried out to the ninth decimal place) obtained by dividing such Lender’s Commitment at such time by the Total Commitments at such time, subject to adjustment as provided in Section 8.16. If the Commitment of each Lender and the obligations of the L/C Issuer to make L/C Credit Extensions have been terminated pursuant to Section 6.02 or if the Total Commitments have expired, then the Pro Rata Share Percentage of each Lender shall be determined based on the Pro Rata Share Percentage of such Lender most recently in effect, giving effect to any subsequent assignments. The initial Pro Rata Share Percentage of each Lender is set forth opposite the name of such Lender on Schedule 1.01 or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable.

     “Qualified Equity Portion of Qualified Securities” means at any time, the sum of the amounts obtained by multiplying (x) the amount of each Qualified Security by (y) the Qualified Equity Percentage at such time of such Qualified Security.

     “Qualified Equity Percentage” means, with respect to a Qualified Security, the lowest percentage (whether specifically stated or implied through calculation) accorded equity treatment for such Qualified Security by either S&P or Moody’s, as determined by such rating agencies from time to time.

     “Qualified Security” means any security issued by the Parent, a Borrower or any Guarantor that (i) has attributes of both debt and equity, (ii) is rated by both S&P and

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Moody’s, (iii) the proceeds of which are accorded a percentage of equity treatment by both S&P and Moody’s, (iv) matures after the Maturity Date, and (v) ranks in priority of repayment no higher than pari passu with, and is not structurally superior to, the senior credit facility provided to the Borrowers under this Agreement and the other Loan Documents (including, without limitation, all of the Obligations).

     “Register” has the meaning specified in Section 8.06(c).

     “Related Parties” means with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees, agents and advisors of such Person and of such Person’s Affiliates.

     “Relevant Taxing Authority” means the taxing authority with which the applicable Treaty Form is required to be filed, in the country of residence of a Lender.

     “Required Lenders” means at any time Lenders owed greater than 50% of the then aggregate unpaid principal amount of the Advances and L/C Obligations owing to Lenders (with the aggregate amount of each Lender’s risk participation and funded participation in Swing Line Loans and L/C Obligations being deemed owed to such Lender for purposes of this definition), or, if no such amount is then outstanding, Lenders holding greater than 50% of the Commitments provided that the portion of the aggregate unpaid principal amount of the Advances and risk participations and funded participations in Swing Line Loans and L/C Obligations owing to or deemed owed to, and the Commitment of, any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders.

     “Same Day Funds” means (a) with respect to disbursements and payments in Dollars, immediately available funds, and (b) with respect to disbursements and payments in Sterling, same day or other funds as may be determined by the Administrative Agent, as the case may be, to be customary in the place of disbursement or payment for the settlement of international banking transactions in Sterling.

     “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. and any successor thereto.

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

     “Securities Laws” means the Securities Act, the Exchange Act, Sarbanes-Oxley and the applicable accounting and auditing principles, rules, standards and practices promulgated, approved or incorporated by the SEC or the Public Company Accounting Oversight Board, as each of the foregoing may be amended and in effect on any applicable date hereunder.

     “Significant Subsidiary” means each Subsidiary of the Parent, including each Borrower, that (a) is organized under the laws of the United States or any political subdivision thereof or (b) is an operating Subsidiary of the Parent or a Subsidiary of the Parent that directly or indirectly owns an operating Subsidiary of the Parent.

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     “Single Employer Plan” means a single employer plan, as defined in Section 4001(a)(15) of ERISA, that is maintained for employees of any Loan Party or any ERISA Affiliate and no Person other than any Loan Party and the ERISA Affiliates.

     “Solvent” and “Solvency” mean, with respect to any Person on a particular date, that on such date (a) the fair value of the property of such Person is greater than the total amount of liabilities, including, without limitation, contingent liabilities, of such Person, (b) the present fair salable value of the assets of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured, (c) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay such debts and liabilities as they mature and (d) such Person is not engaged in business or a transaction, and is not about to engage in business or a transaction, for which such Person’s property would constitute an unreasonably small capital. The amount of contingent liabilities at any time shall be computed as the amount that, in the light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

     “Special Purpose Subsidiary” means a Subsidiary created or acquired, and wholly owned, directly or indirectly, by the Parent whose primary business is investing in real estate properties or other investment assets, the acquisition of which properties or assets are financed in whole, or in part, with Subsidiary Non-Recourse Debt, and whose primary assets consist of such real estate properties and other investment assets.

     “Sterling” means lawful money of the United Kingdom of Great Britain and Northern Ireland.

     “Subsidiary” of any Person means any corporation, limited liability company, partnership, joint venture, trust or estate of which (or in which) more than 50% of (a) in the case of a corporation, the issued and outstanding capital stock having ordinary voting power to elect a majority of the Board of Directors of such corporation (irrespective of whether at the time capital stock of any other class or classes of such corporation shall or might have voting power upon the occurrence of any contingency), (b) in the case of a limited liability company, partnership or joint venture, the interest in the capital or profits of such limited liability company, partnership or joint venture or (c) in the case of a trust or estate, the beneficial interest in such trust or estate, in each instance above is at the time directly or indirectly owned or controlled by such Person, by such Person and one or more of its other Subsidiaries or by one or more of such Person’s other Subsidiaries. Unless otherwise specified, all references to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of the Parent.

     “Subsidiary Guarantor” means each Guarantor other than the Parent.

     “Subsidiary Guaranty” means that certain Guaranty dated as of the date hereof executed and delivered by each Subsidiary Guarantor in favor of the Administrative Agent and the Lenders in substantially the form of Exhibit D-1, as amended, supplemented or otherwise modified from time to time.

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     “Subsidiary Non-Recourse Debt” means with respect to all Special Purpose Subsidiaries of the Parent, Debt incurred by such Special Purpose Subsidiaries up to an aggregate principal amount for all such Special Purpose Subsidiaries at any time outstanding not to exceed $500,000,000, (i) the proceeds of which are used to finance the acquisition of real estate properties and other investment assets by such Special Purpose Subsidiary, (ii) that is not guaranteed by either Borrower or any Guarantor, and (iii) where recourse for repayment of such Debt is contractually limited to such Special Purpose Subsidiary and the specific real estate properties or other investment assets of such Special Purpose Subsidiary financed with the proceeds thereof.

     “Swing Line” means the revolving credit facility made available by the Swing Line Lender pursuant to Section 2.04.

     “Swing Line Borrowing” means a borrowing of a Swing Line Loan pursuant to Section 2.04.

     “Swing Line Lender” means Bank of America in its capacity as provider of Swing Line Loans, or any successor swing line lender hereunder.

     “Swing Line Loan” has the meaning specified in Section 2.04(a).

     “Swing Line Loan Notice” means a notice of a Swing Line Borrowing pursuant to Section 2.04(b), which, if in writing, shall be substantially in the form of Exhibit B-2.

     “Swing Line Sublimit” means an amount equal to the lesser of (a) $100,000,000 and (b) the Total Commitments. The Swing Line Sublimit is part of, and not in addition to, the Total Commitment.

     “Taxes” has the meaning specified in Section 2.15(a).

     “Termination Date” means the earlier of (i) the Maturity Date and (ii) the date of termination in whole of the Commitments pursuant to Section 2.06 or 6.01.

     “Total Commitment” means, at any time, the aggregate amount of the Lenders’ Commitments at such time.

     “Treaty Form” means a form of claim for the benefits of an income tax treaty between the United Kingdom and the country of residence of a Lender or the Administrative Agent, as is specified from time to time by HM Revenue & Customs in the United Kingdom.

     “Type” has the meaning therefor in the definition of Advance.

     “Unreimbursed Amount” has the meaning specified in Section 2.03(c)(i).

     “Voting Stock” means capital stock issued by a corporation, or equivalent interests in any other Person, the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar

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functions) of such Person, even if the right so to vote has been suspended by the happening of such a contingency.

     “Withdrawal Liability” has the meaning specified in Part I of Subtitle E of Title IV of ERISA.

     “2012 Notes” means IHCL’s 5.625% Unsecured Senior Notes due April 17, 2012.

     “2012 Refinancing Notes” means unsecured notes issued by either Borrower or any Guarantor for the express purpose, solely or with other purposes, of refinancing the 2012 Notes, which unsecured notes shall (i) rank in priority of repayment no higher than pari passu with, and shall not be structurally superior to, the Obligations and (ii) shall mature after the Maturity Date.

     “2013 Notes” means IHCL’s 5.375% Unsecured Senior Notes due February 27, 2013.

     “2013 Refinancing Notes” means unsecured notes issued by either Borrower or any Guarantor for the express purpose, solely or with other purposes, of refinancing the 2013 Notes, which unsecured notes shall (i) rank in priority of repayment no higher than pari passu with, and shall not be structurally superior to, the Obligations and (ii) shall mature after the Maturity Date.

     Section 1.02 Computation of Time Periods. In this Agreement in the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including” and the words “to” and “until” each mean “to but excluding”.

     Section 1.03 Accounting Terms.

     (a) Generally. All accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data (including financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity with, GAAP applied on a consistent basis, as in effect from time to time, applied in a manner consistent with that used in preparing the Audited Financial Statements, except as otherwise specifically prescribed herein.

     (b) Changes in GAAP. If at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any Loan Document, and either the Borrowers or the Required Lenders shall so request, the Administrative Agent, the Lenders and the Borrowers shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP (subject to the approval of the Required Lenders); provided that, until so amended, (i) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and (ii) the Borrowers and the Parent shall provide to the Administrative Agent and the Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP.

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     (c) Consolidation. All references herein to Consolidated financial statements of the Parent and its Subsidiaries or to the determination of any amount for the Parent and its Subsidiaries on a Consolidated basis or any similar reference shall, in each case, be deemed to include each entity that the Parent is required to consolidate pursuant to FASB ASC 810 as if such entity were a Subsidiary as defined herein, provided that for purposes of determining compliance with the financial covenants set forth in Section 5.03, the consolidation of investment products shall be disregarded.

     (d) Effect of a Section 5.02(b)(ii) Permitted Merger. Upon the event of a merger of the Parent into a Borrower permitted by Section 5.02(b), all references to the Parent in this Agreement shall be deemed references to IHCL, unless IHCL is merged into IVZ as permitted by Section 5.02(b), in which case all references to the Parent shall be deemed references to IVZ except (i) where such prior reference to the Parent would be a duplicative reference to IHCL or IVZ, as applicable, in which case the reference to the Parent shall be disregarded, (ii) where such prior reference to the Parent specifically relates to (A) a prior executed agreement to which the Parent was in fact a party, (B) financial statements dated prior to such merger, (C) such reference is a reference to the Parent as a Guarantor, or (D) such reference is contained in the conditions precedent in Section 3.01, (iii) where such change would result in a prior occurring Event of Default no longer being deemed an Event of Default (unless such prior occurring Event of Default has been cured), (iv) with respect to the reference to “Each Subsidiary of the Parent” in Section 4.01(q), which shall be deemed to be a reference to “Either Borrower or any of its Subsidiaries”, unless IHCL has been merged into IVZ, in which case such reference shall be a reference to “the Borrower or any of its Subsidiaries”, and (v) with respect to the reference to the Parent in Section 4.01(r), which shall continue to be a reference to the Parent as if such merger had not occurred.

     Section 1.04 Letter of Credit Amounts. Unless otherwise specified herein, the amount of a Letter of Credit at any time shall be deemed to be the Equivalent in Dollars of the stated amount of such Letter of Credit in effect at such time; provided, however, that with respect to any Letter of Credit that, by its terms or the terms of any Issuer Document related thereto, provides for one or more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be the Equivalent in Dollars of the maximum stated amount of such Letter of Credit after giving effect to all such increases and any subsequent decreases, whether or not such maximum stated amount is in effect at such time.

ARTICLE II

AMOUNTS AND TERMS OF THE ADVANCES

     Section 2.01 The Advances. Each Lender severally agrees, on the terms and conditions hereinafter set forth, to make Advances to the Borrowers from time to time on any Business Day during the period from the Effective Date until the Termination Date in an aggregate principal amount (based in respect of any Advance denominated in Sterling on the Equivalent in Dollars), not to exceed at any time outstanding the amount of such Lender’s Commitment less (i) such Lender’s Pro Rata Share of the Outstanding Amount of all L/C Obligations and (ii) such Lender’s Pro Rata Share of the Outstanding Amount of all Swing Line Loans. Each Borrowing shall be in an aggregate amount of $5,000,000 (or the Equivalent thereof in Sterling) or an

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integral multiple of $1,000,000 (or the Equivalent thereof in Sterling) in excess thereof and shall consist of Advances of the same Type made on the same day by the Lenders ratably according to their respective Commitments. Within the limits of each Lender’s Commitment, the Borrowers may borrow under this Section 2.01, prepay pursuant to Section 2.11 and reborrow under this Section 2.01.

     Section 2.02 Making the Advances. (a) Each Borrowing shall be made on notice, given not later than (x) 11:00 A.M. (New York City time) on the third Business Day prior to the date of the proposed Borrowing in the case of a Borrowing consisting of Eurocurrency Rate Advances denominated in Dollars, (y) 11:00 A.M. (New York City time) on the fifth Business Day prior to the date of the proposed Borrowing in the case of a Borrowing consisting of Eurocurrency Rate Advances denominated in Sterling, or (z) 11:00 A.M. (New York City time) on the date of the proposed Borrowing in the case of a Borrowing consisting of Base Rate Advances, by the Borrower Agent to the Administrative Agent, which shall give to each Lender prompt notice thereof. Each such notice of a Borrowing (a “Notice of Borrowing”) shall be by telephone, confirmed promptly in writing, and signed by a duly authorized officer of the Borrower Agent, or any other employee of the Borrower Agent that is authorized by the President or Chief Financial Officer of the Borrower Agent, in substantially the form of Exhibit B-1 hereto, specifying therein the requested (i) date of such Borrowing, (ii) Type of Advances comprising such Borrowing, (iii) aggregate amount of such Borrowing, (iv) in the case of a Borrowing consisting of Eurocurrency Rate Advances, the initial Interest Period and whether such Advance shall be in Dollars or in Sterling, and (v) applicable Borrower. Each Lender shall, before 1:00 P.M. (New York City time) on the date of such Borrowing, make available for the account of its Applicable Lending Office to the Administrative Agent at the Administrative Agent’s Account, in Same Day Funds, such Lender’s Pro Rata Share of such Borrowing. After the Administrative Agent’s receipt of such funds and upon fulfillment of the applicable conditions set forth in Article III, the Administrative Agent will make such funds available to the applicable Borrower at the Administrative Agent’s address referred to in Section 8.02; provided, however, that if, on the date the Notice of Borrowing with respect to such Borrowing is given by the Borrower Agent, there are L/C Borrowings outstanding, then the proceeds of such Borrowing, first, shall be applied to the payment in full of any such L/C Borrowings, and second, shall be made available to the applicable Borrower as provided above.

     (b) Anything in subsection (a) above to the contrary notwithstanding, (i) the Borrowers may not select Eurocurrency Rate Advances for any Borrowing if the aggregate amount of such Borrowing is less than $5,000,000 (or the Equivalent thereof in Sterling) or if the obligation of the Lenders to make Eurocurrency Rate Advances shall then be suspended pursuant to Section 2.09 or 2.13 and (ii) the Eurocurrency Rate Advances may not be outstanding as part of more than ten separate Borrowings.

     (c) Each Notice of Borrowing shall be irrevocable and binding on the Borrowers. In the case of any Borrowing that the related Notice of Borrowing specifies is to be comprised of Eurocurrency Rate Advances, the Borrowers shall indemnify each Lender against any loss, cost or expense incurred by such Lender as a result of any failure to fulfill on or before the date specified in such Notice of Borrowing for such Borrowing the applicable conditions set forth in Article III, including, without limitation, any loss (excluding loss of anticipated profits), cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds

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acquired by such Lender to fund the Advance to be made by such Lender as part of such Borrowing when such Advance, as a result of such failure, is not made on such date.

     (d) Unless the Administrative Agent shall have received notice from a Lender prior to the time of any Borrowing that such Lender will not make available to the Administrative Agent such Lender’s Pro Rata Share of such Borrowing, the Administrative Agent may assume that such Lender has made such amount available to the Administrative Agent on the date of such Borrowing in accordance with subsection (a) of this Section 2.02 and the Administrative Agent may, in reliance upon such assumption, but shall have no obligation to, make available to the applicable Borrower on such date a corresponding amount. If and to the extent that such Lender shall not have so made such amount available to the Administrative Agent, such Lender and the Borrowers severally agree to repay to the Administrative Agent forthwith on demand such corresponding amount together with interest thereon, for each day from the date such amount is made available to the applicable Borrower until the date such amount is repaid to the Administrative Agent, at (i) in the case of the Borrowers, the interest rate applicable at the time to Advances comprising such Borrowing and (ii) in the case of such Lender, the Overnight Rate. If such Lender shall repay to the Administrative Agent such corresponding amount such amount so repaid shall constitute such Lender’s Advance as part of such Borrowing for purposes of this Agreement, and thereafter, the Borrowers’ obligation to repay such amount to the Administrative Agent in accordance with this subsection (d) shall no longer be required; provided that the Borrowers shall not be relieved of their obligation to pay the interest on such amount referred to herein unless and only to the extent that such Lender has paid the interest on such amount referred to herein.

     (e) The failure of any Lender to make the Advance to be made by it as part of any Borrowing shall not relieve any other Lender of its obligation, if any, hereunder to make its Advance on the date of such Borrowing, but no Lender shall be responsible for the failure of any other Lender to make the Advance to be made by such other Lender on the date of any Borrowing.

     Section 2.03 Letters of Credit.

     (a) The Letter of Credit Commitment.

     (i) Subject to the terms and conditions set forth herein, (A) the L/C Issuer agrees, in reliance upon the agreements of the Lenders set forth in this Section 2.03, (1) from time to time on any Business Day during the period from the Effective Date until the Letter of Credit Expiration Date, to issue Letters of Credit denominated in Dollars or Sterling for the account of either Borrower or its respective Subsidiaries, and to amend or extend Letters of Credit previously issued by it, in accordance with subsection (b) below, and (2) to honor drawings under the Letters of Credit; and (B) the Lenders severally agree to participate in Letters of Credit issued for the account of either Borrower or its Subsidiaries (for the avoidance of doubt, including any Letters of Credit with an expiry date later than the Letter of Credit Expiration Date issued in accordance with Section 2.03(a)(ii)(B) below) and any drawings thereunder; provided that after giving effect to any L/C Credit Extension with respect to any Letter of Credit (based in respect of any Letter of Credit denominated in Sterling on the Equivalent in Dollars), (x)

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the Outstanding Amount of all Advances, all L/C Obligations and all Swing Line Loans shall not exceed the Total Commitment, (y) the Outstanding Amount of the Advances of any Lender plus such Lender’s Pro Rata Share of the Outstanding Amount of all L/C Obligations plus such Lender’s Pro Rata Share of the Outstanding Amount of all Swing Line Loans shall not exceed such Lender’s Commitment, and (z) the Outstanding Amount of the L/C Obligations shall not exceed the Letter of Credit Sublimit. Each request by the Borrower Agent for the issuance or amendment of a Letter of Credit shall be deemed to be a representation by the Borrowers that the L/C Credit Extension so requested complies with the conditions set forth in the proviso to the preceding sentence. Within the foregoing limits, and subject to the terms and conditions hereof, the Borrowers’ ability to obtain Letters of Credit shall be fully revolving, and accordingly the Borrowers may, during the foregoing period, obtain Letters of Credit to replace Letters of Credit that have expired or that have been drawn upon and reimbursed.

     (ii) The L/C Issuer shall not issue any Letter of Credit if:

     (A) subject to Section 2.03(b)(iii), the expiry date of the requested Letter of Credit would occur more than twelve months after the date of issuance or last extension, provided that a requested Letter of Credit may have an expiry date that occurs more than twelve months after the date of issuance or last extension if all Lenders have approved such expiry date; or

     (B) the expiry date of the requested Letter of Credit would occur after the Letter of Credit Expiration Date, unless (i) on or before the Letter of Credit Expiration Date, the Borrowers have Cash Collateralized 100% of the undrawn amount of such Letter of Credit, such Cash Collateral to be in the same currency as the related Letter of Credit or (ii) all the Lenders have otherwise approved such expiry date.

     (iii) The L/C Issuer shall not be under any obligation to issue any Letter of Credit if:

     (A) any order, judgment or decree of any governmental authority or arbitrator shall by its terms purport to enjoin or restrain the L/C Issuer from issuing the Letter of Credit, or any law applicable to the L/C Issuer or any request or directive (whether or not having the force of law) from any governmental authority with jurisdiction over the L/C Issuer shall prohibit, or request that the L/C Issuer refrain from, the issuance of letters of credit generally or the Letter of Credit in particular or shall impose upon the L/C Issuer with respect to the Letter of Credit any restriction, reserve or capital requirement (for which the L/C Issuer is not otherwise compensated hereunder) not in effect on the Effective Date, or shall impose upon the L/C Issuer any unreimbursed loss, cost or expense which was not applicable on the Effective Date and which the L/C Issuer in good faith deems material to it;

     (B) the issuance of such Letter of Credit would violate one or more policies of the L/C Issuer applicable to letters of credit generally, so long as such

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policies are consistently applied by the L/C Issuer to its customers generally and to letters of credit issued by it, such policies are not unusual to similarly situated financial institutions and such policies are not contrary to the express contractual obligations of the L/C Issuer under this Agreement;

     (C) except as otherwise agreed by the Administrative Agent and the L/C Issuer, the Letter of Credit is in an initial stated amount less than $1,000,000;

     (D) the Letter of Credit is to be denominated in a currency other than Dollars or Sterling;

     (E) any Lender is at that time a Defaulting Lender, unless the L/C Issuer has entered into arrangements, including the delivery of Cash Collateral, satisfactory to the L/C Issuer (in its sole discretion) with the Borrowers or such Lender to eliminate the L/C Issuer’s actual or potential Fronting Exposure (after giving effect to Section 8.16(a)(iv)) with respect to the Defaulting Lender arising from either the Letter of Credit then proposed to be issued or that Letter of Credit and all other L/C Obligations as to which the L/C Issuer has actual or potential Fronting Exposure, as it may elect in its sole discretion; or

     (F) the Letter of Credit contains any provisions for automatic reinstatement of the stated amount after any drawing thereunder.

     (iv) The L/C Issuer shall not amend any Letter of Credit if the L/C Issuer would not be permitted at such time to issue the Letter of Credit in its amended form under the terms hereof.

     (v) The L/C Issuer shall be under no obligation to amend any Letter of Credit if (A) the L/C Issuer would have no obligation at such time to issue the Letter of Credit in its amended form under the terms hereof, or (B) the beneficiary of the Letter of Credit does not accept the proposed amendment to the Letter of Credit.

     (vi) The L/C Issuer shall act on behalf of the Lenders with respect to any Letters of Credit issued by it and the documents associated therewith, and the L/C Issuer shall have all of the benefits and immunities (A) provided to the Administrative Agent in Article VII with respect to any acts taken or omissions suffered by the L/C Issuer in connection with Letters of Credit issued by it or proposed to be issued by it and Issuer Documents pertaining to such Letters of Credit as fully as if the term “Administrative Agent” as used in Article VII included the L/C Issuer with respect to such acts or omissions, and (B) as additionally provided herein with respect to the L/C Issuer.

     (b) Procedures for Issuance and Amendment of Letters of Credit; Auto-Extension Letters of Credit.

     (i) Each Letter of Credit shall be issued or amended, as the case may be, upon the request of the Borrower Agent delivered to the L/C Issuer (with a copy to the Administrative Agent) in the form of a Letter of Credit Application, appropriately completed and signed by a duly authorized officer of the Borrower Agent or any other

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employee of the Borrower Agent that is authorized by the President or Chief Financial Officer of the Borrower Agent. Such Letter of Credit Application must be received by the L/C Issuer and the Administrative Agent not later than 11:00 a.m. (New York City time) at least one Business Day (or such later date and time as the Administrative Agent and the L/C Issuer may agree in a particular instance in their sole discretion) prior to the proposed issuance date or date of amendment, as the case may be. In the case of a request for an initial issuance of a Letter of Credit, such Letter of Credit Application shall specify in form and detail satisfactory to the L/C Issuer: (A) the proposed issuance date of the requested Letter of Credit (which shall be a Business Day); (B) the amount thereof; (C) the expiry date thereof; (D) the name and address of the beneficiary thereof; (E) the documents to be presented by such beneficiary in case of any drawing thereunder; (F) the full text of any certificate to be presented by such beneficiary in case of any drawing thereunder; (G) the purpose and nature of the requested Letter of Credit; (H) the applicable Borrower or Subsidiary on whose account the Letter of Credit is being issued; and (I) such other matters as the L/C Issuer may reasonably require. In the case of a request for an amendment of any outstanding Letter of Credit, such Letter of Credit Application shall specify in form and detail satisfactory to the L/C Issuer (A) the Letter of Credit to be amended; (B) the proposed date of amendment thereof (which shall be a Business Day); (C) the nature of the proposed amendment; and (D) such other matters as the L/C Issuer may require. Additionally, the Borrower Agent shall furnish to the L/C Issuer and the Administrative Agent such other documents and information pertaining to such requested Letter of Credit issuance or amendment, including any Issuer Documents, as the L/C Issuer or the Administrative Agent may reasonably require.

     (ii) Promptly after receipt of any Letter of Credit Application, the L/C Issuer will confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent has received a copy of such Letter of Credit Application from the Borrower Agent and, if not, the L/C Issuer will provide the Administrative Agent with a copy thereof. Unless the L/C Issuer has received written notice from any Lender, the Administrative Agent or any Loan Party, at least one Business Day prior to the requested date of issuance or amendment of the applicable Letter of Credit, that one or more applicable conditions contained in Article III shall not then be satisfied, then, subject to the terms and conditions hereof, the L/C Issuer shall, on the requested date, issue a Letter of Credit for the account of the applicable Borrower or the applicable Subsidiary or enter into the applicable amendment, as the case may be, in each case in accordance with the L/C Issuer’s usual and customary business practices. Immediately upon the issuance of each Letter of Credit (for the avoidance of doubt, including any Letters of Credit with an expiry date later than the Letter of Credit Expiration Date issued in accordance with Section 2.03(a)(ii)(B)), each Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the L/C Issuer a risk participation in such Letter of Credit in an amount equal to the product of such Lender’s Pro Rata Share Percentage times the amount of such Letter of Credit.

     (iii) If the Borrower Agent so requests in any applicable Letter of Credit Application, the L/C Issuer may, in its sole discretion, agree to issue a Letter of Credit that has automatic extension provisions (each, an “Auto-Extension Letter of Credit”); provided that any such Auto-Extension Letter of Credit must permit the L/C Issuer to

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prevent any such extension at least once in each twelve-month period (commencing with the date of issuance of such Letter of Credit) by giving prior notice to the beneficiary thereof not later than a day (the “Non-Extension Notice Date”) in each such twelve-month period to be agreed upon at the time such Letter of Credit is issued. Unless otherwise directed by the L/C Issuer, the Borrower Agent shall not be required to make a specific request to the L/C Issuer for any such extension. Once an Auto-Extension Letter of Credit has been issued, the Lenders shall be deemed to have authorized (but may not require) the L/C Issuer to permit the extension of such Letter of Credit at any time to an expiry date not later than the Letter of Credit Expiration Date unless on or before the Letter of Credit Expiration Date, the Borrowers have complied with the requirements set forth in Section 2.03(a)(ii)(B), in which case such expiry date shall not extend more than twelve months past the Letter of Credit Expiration Date unless all Lenders have otherwise consented thereto; provided, however, that the L/C Issuer shall not permit any such extension if (A) the L/C Issuer has determined that it would not be permitted, or would have no obligation, at such time to issue such Letter of Credit in its revised form (as extended) under the terms hereof (by reason of the provisions of clause (ii) or (iii) of Section 2.03(a) or otherwise), or (B) it has received notice (which may be by telephone or in writing) on or before the day that is seven Business Days before the Non-Extension Notice Date (1) from the Administrative Agent that the Required Lenders have elected not to permit such extension or (2) from the Administrative Agent, any Lender or any Loan Party that one or more of the applicable conditions specified in Section 3.02 is not then satisfied, and in each such case directing the L/C Issuer not to permit such extension.

     (iv) Promptly after its delivery of any Letter of Credit or any amendment to a Letter of Credit to an advising bank with respect thereto or to the beneficiary thereof, the L/C Issuer will also deliver to the Borrower Agent and the Administrative Agent a true and complete copy of such Letter of Credit or amendment.

     (c) Drawings and Reimbursements; Funding of Participations.

     (i) Upon receipt from the beneficiary of any Letter of Credit of any notice of a drawing under such Letter of Credit, the L/C Issuer shall notify the Borrower Agent and the Administrative Agent thereof. In the case of a Letter of Credit denominated in Sterling, the Borrowers shall reimburse the L/C Issuer in Sterling, unless (A) the L/C Issuer (at its option) shall have specified in such notice that it will require reimbursement in Dollars, or (B) in the absence of any such requirement for reimbursement in Dollars, the Borrower Agent shall have notified the L/C Issuer promptly following receipt of the notice of drawing that the Borrowers will reimburse the L/C Issuer in Dollars. In the case of any such reimbursement in Dollars of a drawing under a Letter of Credit denominated in Sterling, the L/C Issuer shall notify the Borrower Agent of the Equivalent in Dollars of the amount of the drawing promptly following the determination thereof. Not later than 11:00 a.m. (New York City time) on the next Business Day succeeding payment by the L/C Issuer under a Letter of Credit (each such date, an “Honor Date”), the Borrowers shall reimburse the L/C Issuer through the Administrative Agent in an amount equal to the amount of such drawing. If the Borrowers fail to so reimburse the L/C Issuer by such time, the Administrative Agent shall promptly notify each Lender of

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the Honor Date, the amount of the unreimbursed drawing (expressed in the Equivalent in Dollars thereof in the case of a Letter of Credit denominated in Sterling) (the “Unreimbursed Amount”), and the amount of such Lender’s Pro Rata Share thereof. In such event, the Borrower Agent shall be deemed to have requested a Borrowing of Base Rate Advances to be disbursed on the Honor Date in an amount equal to the Unreimbursed Amount (expressed in the amount of the Equivalent in Dollars thereof in the case of any Unreimbursed Amount in Sterling), without regard to the minimum and multiples specified in Section 2.01 for the principal amount of Base Rate Advances, but subject to the unutilized portion of the Total Commitments and the conditions set forth in Section 3.02 (other than delivery by the Borrower Agent of a Notice of Borrowing). Any notice given by the L/C Issuer or the Administrative Agent pursuant to this Section 2.03(c)(i) may be given by telephone if immediately confirmed in writing; provided that the lack of such an immediate confirmation shall not affect the conclusiveness or binding effect of such notice.

     (ii) Each Lender shall upon any notice pursuant to Section 2.03(c)(i) make funds available (and the Administrative Agent may apply Cash Collateral provided for this purpose) for the account of the L/C Issuer, in Dollars, at the Administrative Agent’s office for Dollar-denominated payments in an amount equal to its Pro Rata Share of the Unreimbursed Amount not later than 1:00 p.m. (New York City time) on the Business Day specified in such notice by the Administrative Agent, whereupon, subject to the provisions of Section 2.03(c)(iii), each Lender that so makes funds available shall be deemed to have made a Base Rate Advance to the Borrowers in such amount. The Administrative Agent shall remit the funds so received to the L/C Issuer in Dollars.

     (iii) With respect to any Unreimbursed Amount that is not fully refinanced by a Borrowing of Base Rate Advances because the conditions set forth in Section 3.02 cannot be satisfied or for any other reason, the Borrowers shall be deemed to have incurred from the L/C Issuer an L/C Borrowing in the amount of the Unreimbursed Amount (expressed in the amount of the Equivalent in Dollars thereof in the case of any Unreimbursed Amount in Sterling) that is not so refinanced, which L/C Borrowing shall be due and payable on demand (together with interest) and shall bear interest in accordance with Section 2.08(b). In such event, each Lender’s payment to the Administrative Agent for the account of the L/C Issuer pursuant to Section 2.03(c)(ii) shall be deemed payment in respect of its participation in such L/C Borrowing and shall constitute an L/C Advance from such Lender in satisfaction of its participation obligation under this Section 2.03.

     (iv) Until each Lender funds its Advance or L/C Advance pursuant to this Section 2.03(c) to reimburse the L/C Issuer for any amount drawn under any Letter of Credit, interest in respect of such Lender’s Pro Rata Share of such amount shall be solely for the account of the L/C Issuer.

     (v) Each Lender’s obligation to make Advances or L/C Advances to reimburse the L/C Issuer for amounts drawn under Letters of Credit, as contemplated by this Section 2.03(c), shall be absolute and unconditional and shall not be affected by any circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right

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which such Lender may have against the L/C Issuer, either Borrower or any other Person for any reason whatsoever; (B) the occurrence or continuance of a Default, or (C) any other occurrence, event or condition, whether or not similar to any of the foregoing; provided, however, that each Lender’s obligation to make Advances pursuant to this Section 2.03(c) is subject to the conditions set forth in Section 3.02 (other than delivery by the Borrower Agent of a Notice of Borrowing). No such making of an L/C Advance shall relieve or otherwise impair the obligation of the Borrowers to reimburse the L/C Issuer for the amount of any payment made by the L/C Issuer under any Letter of Credit, together with interest as provided herein.

     (vi) If any Lender fails to make available to the Administrative Agent for the account of the L/C Issuer any amount required to be paid by such Lender pursuant to the foregoing provisions of this Section 2.03(c) by the time specified in Section 2.03(c)(ii), then, without limiting the other provisions of this Agreement, the L/C Issuer shall be entitled to recover from such Lender (acting through the Administrative Agent), on demand, such amount with interest thereon for the period from the date such payment is required to the date on which such payment is immediately available to the L/C Issuer at a rate per annum equal to the greater of the Federal Funds Rate and a rate determined by the L/C Issuer in accordance with banking industry rules on interbank compensation, plus any administrative, processing or similar fees customarily charged by the L/C Issuer in connection with the foregoing. If such Lender pays such amount (with interest and fees as aforesaid), the amount so paid shall constitute such Lender’s Advance included in the relevant Borrowing or L/C Advance in respect of the relevant L/C Borrowing, as the case may be. A certificate of the L/C Issuer submitted to any Lender (through the Administrative Agent) with respect to any amounts owing under this clause (vi) shall be conclusive absent manifest error.

     (d) Repayment of Participations.

     (i) At any time after the L/C Issuer has made a payment under any Letter of Credit and has received from any Lender such Lender’s L/C Advance in respect of such payment in accordance with Section 2.03(c), if the Administrative Agent receives for the account of the L/C Issuer any payment in respect of the related Unreimbursed Amount or interest thereon (whether directly from the Borrowers or otherwise, including proceeds of Cash Collateral applied thereto by the Administrative Agent), the Administrative Agent will distribute to such Lender its Pro Rata Share thereof (based on the Equivalent in Dollars for any payment received in Sterling) in Dollars .

     (ii) If any payment received by the Administrative Agent for the account of the L/C Issuer pursuant to Section 2.03(c)(i) is required to be returned by the L/C Issuer (including pursuant to any settlement entered into by the L/C Issuer in its discretion), each Lender shall pay to the Administrative Agent for the account of the L/C Issuer its Pro Rata Share thereof on demand of the Administrative Agent, plus interest thereon from the date of such demand to the date such amount is returned by such Lender, at a rate per annum equal to the Federal Funds Rate from time to time in effect. The obligations of the Lenders under this clause shall survive the payment in full of the Obligations and the termination of this Agreement.

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     (e) Obligations Absolute. The obligation of the Borrowers to reimburse the L/C Issuer for each drawing under each Letter of Credit and to repay each L/C Borrowing shall be absolute, unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this Agreement under all circumstances, including the following:

     (i) any lack of validity or enforceability of such Letter of Credit, this Agreement, or any other Loan Document;

     (ii) the existence of any claim, counterclaim, setoff, defense or other right that a Borrower or any Subsidiary may have at any time against any beneficiary or any transferee of such Letter of Credit (or any Person for whom any such beneficiary or any such transferee may be acting), the L/C Issuer or any other Person, whether in connection with this Agreement, the transactions contemplated hereby or by such Letter of Credit or any agreement or instrument relating thereto, or any unrelated transaction;

     (iii) any draft, demand, certificate or other document presented under such Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect; or any loss or delay in the transmission or otherwise of any document required in order to make a drawing under such Letter of Credit;

     (iv) any payment by the L/C Issuer under such Letter of Credit against presentation of a draft or certificate that does not strictly comply with the terms of such Letter of Credit, so long as the L/C Issuer reasonably determined that such draft or certificate substantially complied with the terms of such Letter of Credit, or any payment made by the L/C Issuer under such Letter of Credit to any Person purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for the benefit of creditors, liquidator, receiver or other representative of or successor to any beneficiary or any transferee of such Letter of Credit, including any arising in connection with any proceeding under the bankruptcy code of the United States or any other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally; or

     (v) any other circumstance or happening whatsoever, whether or not similar to any of the foregoing, including any other circumstance that might otherwise constitute a defense available to, or a discharge of, a Borrower or any Subsidiary.

     The Borrower Agent shall promptly examine a copy of each Letter of Credit and each amendment thereto that is delivered to it and, in the event of any claim of noncompliance with the Borrower Agent’s instructions or other irregularity, the Borrower Agent will immediately notify the L/C Issuer. The Borrowers shall be conclusively deemed to have waived any such claim against the L/C Issuer and its correspondents unless such notice is given as aforesaid.

     (f) Role of L/C Issuer. Each Lender and each Borrower agree that, in paying any drawing under a Letter of Credit, the L/C Issuer shall not have any responsibility to obtain any

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document (other than any sight draft, certificates and documents expressly required by the Letter of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the authority of the Person executing or delivering any such document. None of the L/C Issuer, the Administrative Agent, any of their respective Related Parties nor any correspondent, participant or assignee of the L/C Issuer shall be liable to any Lender for (i) any action taken or omitted in connection herewith at the request or with the approval of the Lenders or the Required Lenders, as applicable; (ii) any action taken or omitted in the absence of gross negligence or willful misconduct; or (iii) the due execution, effectiveness, validity or enforceability of any document or instrument related to any Letter of Credit or Issuer Document. The Borrowers hereby assume all risks of the acts or omissions of any beneficiary or transferee with respect to its use of any Letter of Credit; provided, however, that this assumption is not intended to, and shall not, preclude the Borrowers’ pursuing such rights and remedies as it may have against the beneficiary or transferee at law or under any other agreement. None of the L/C Issuer, the Administrative Agent, any of their respective Related Parties nor any correspondent, participant or assignee of the L/C Issuer shall be liable or responsible for any of the matters described in clauses (i) through (v) of Section 2.03(e); provided, however, that anything in such clauses to the contrary notwithstanding, the Borrowers may have a claim against the L/C Issuer, and the L/C Issuer may be liable to the Borrowers, to the extent, but only to the extent, of any direct, as opposed to consequential or exemplary, damages suffered by the Borrowers which the Borrowers prove were caused by the L/C Issuer’s willful misconduct or gross negligence or the L/C Issuer’s willful failure to pay under any Letter of Credit after the presentation to it by the beneficiary of a sight draft and certificate(s) strictly complying with the terms and conditions of a Letter of Credit. In furtherance and not in limitation of the foregoing, the L/C Issuer may accept documents that appear on their face to be in order, without responsibility for further investigation, regardless of any notice or information to the contrary, and the L/C Issuer shall not be responsible for the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign a Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason.

     (g) Applicability of ISP. Unless otherwise expressly agreed by the L/C Issuer and the Borrowers when a Letter of Credit is issued, the rules of the ISP shall apply to each standby Letter of Credit.

     (h) Letter of Credit Fees. The Borrowers shall pay to the Administrative Agent for the account of each Lender in accordance with its Pro Rata Share Percentage, in Dollars, a Letter of Credit fee (the “Letter of Credit Fee”) for each Letter of Credit equal to the Applicable Margin for Eurodollar Rate Advances times the Equivalent in Dollars of the daily amount available to be drawn under such Letter of Credit; provided, however, any Letter of Credit Fees otherwise payable for the account of a Defaulting Lender with respect to any Letter of Credit as to which such Defaulting Lender has not provided Cash Collateral satisfactory to the L/C Issuer pursuant to this Section 2.03 or Section 2.18 shall be payable, to the maximum extent permitted by applicable Law, to the other Lenders in accordance with the upward adjustments in their respective Pro Rata Share Percentages allocable to such Letter of Credit pursuant to Section 8.16(a)(iv), with the balance of such fee, if any, payable to the L/C Issuer for its own account. For purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with Section 1.04. Letter of Credit Fees shall be (i) due and payable on the first Business Day after the end of each March,

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June, September and December, commencing with the first such date to occur after the issuance of such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on demand and (ii) computed on a quarterly basis in arrears. If there is any change in the Applicable Margin for Eurodollar Rate Advances during any quarter, the daily amount available to be drawn under each Letter of Credit shall be computed and multiplied by the Applicable Margin for Eurodollar Rate Advances separately for each period during such quarter that such Applicable Margin for Eurodollar Rate Advances was in effect. Notwithstanding anything to the contrary contained herein, upon the request of the Required Lenders, while any Event of Default exists, all Letter of Credit Fees shall accrue at a rate equal to the Applicable Margin for Eurodollar Rate Advances plus 2% per annum.

     (i) Fronting Fee and Documentary and Processing Charges Payable to L/C Issuer. The Borrowers shall pay directly to the L/C Issuer for its own account, in Dollars, a fronting fee with respect to each Letter of Credit, at the rate per annum specified in the Fee Letter, computed on the Equivalent in Dollars of the daily amount available to be drawn under such Letter of Credit on a quarterly basis in arrears Such fronting fee shall be due and payable on the tenth Business Day after the end of each March, June, September and December in respect of the most recently-ended quarterly period (or portion thereof, in the case of the first payment), commencing with the first such date to occur after the issuance of such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on demand. For purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with Section 1.04. In addition, the Borrowers shall pay directly to the L/C Issuer for its own account, in Dollars, the customary issuance, presentation, amendment and other processing fees, and other standard costs and charges, of the L/C Issuer relating to letters of credit as from time to time in effect. Such customary fees and standard costs and charges are due and payable on demand and are nonrefundable.

     (j) Conflict with Issuer Documents. In the event of any conflict between the terms hereof and the terms of any Issuer Document, the terms hereof shall control.

     (k) Letters of Credit Issued for Subsidiaries. Notwithstanding that a Letter of Credit issued or outstanding hereunder is in support of any obligations of, or is for the account of, a Subsidiary, the Borrowers shall be obligated to reimburse the L/C Issuer hereunder for any and all drawings under such Letter of Credit. The Borrowers hereby acknowledge that the issuance of Letters of Credit for the account of Subsidiaries inures to the benefit of the Borrowers, and that each Borrower’s respective business derives substantial benefits from the businesses of such Subsidiaries.

     Section 2.04 Swing Line Loans.

     (a) The Swing Line. Subject to the terms and conditions set forth herein, the Swing Line Lender agrees, in reliance upon the agreements of the other Lenders set forth in this Section 2.04, to make Advances (each such Advance, a “Swing Line Loan”) to the Borrowers from time to time on any Business Day during the period from the Effective Date to the Termination Date in an aggregate amount not to exceed at any time outstanding the amount of the Swing Line Sublimit, notwithstanding the fact that such Swing Line Loans, when aggregated with the Pro Rata Share of the Outstanding Amount of Advances of the Swing Line Lender, may exceed the

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amount of such Lender’s Commitment; provided, however, that after giving effect to any Swing Line Loan, (i) the Outstanding Amount of all Advances, all L/C Obligations and all Swing Line Loans shall not exceed the Total Commitment, and (ii) the Outstanding Amount of the Advances of any Lender plus such Lender’s Pro Rata Share of the Outstanding Amount of all L/C Obligations plus such Lender’s Pro Rata Share of the Outstanding Amount of all Swing Line Loans shall not exceed such Lender’s Commitment, and provided, further, that the Borrowers shall not use the proceeds of any Swing Line Loan to refinance any outstanding Swing Line Loan. Within the foregoing limits, and subject to the other terms and conditions hereof, the Borrowers may borrow under this Section 2.04, prepay under Section 2.11, and reborrow under this Section 2.04. Each Swing Line Loan shall be in Dollars. Immediately upon the making of a Swing Line Loan, each Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the Swing Line Lender a risk participation in such Swing Line Loan in an amount equal to the product of such Lender’s Pro Rata Share Percentage times the amount of such Swing Line Loan.

     (b) Borrowing Procedures. Each Swing Line Borrowing shall be made upon the Borrower Agent’s irrevocable notice to the Swing Line Lender and the Administrative Agent, which may be given by telephone. Each such notice must be received by the Swing Line Lender and the Administrative Agent not later than 3:00 P.M. (New York City time) on the requested borrowing date, and shall specify (i) the amount to be borrowed, which shall be a minimum of $1,000,000, (ii) the requested borrowing date, which shall be a Business Day and (iii) identifying the applicable Borrower. Each such telephonic notice must be confirmed promptly by delivery to the Swing Line Lender and the Administrative Agent of a written Swing Line Loan Notice, appropriately completed and signed by a duly authorized officer of the Borrower Agent or any other employee of the Borrower Agent that is authorized by the President or Chief Financial Officer of the Borrower Agent. Promptly after receipt by the Swing Line Lender of any telephonic Swing Line Loan Notice, the Swing Line Lender will confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent has also received such Swing Line Loan Notice and, if not, the Swing Line Lender will notify the Administrative Agent (by telephone or in writing) of the contents thereof. Unless the Swing Line Lender has received notice (by telephone or in writing) from the Administrative Agent (including at the request of any Lender) prior to 4:00 P.M. (New York City time) on the date of the proposed Swing Line Borrowing (A) directing the Swing Line Lender not to make such Swing Line Loan as a result of the limitations set forth in the first proviso to the first sentence of Section 2.04(a), or (B) that one or more of the applicable conditions specified in Section 3.02 is not then satisfied, then, subject to the terms and conditions hereof, the Swing Line Lender will, not later than 5:00 P.M. (New York City time) on the borrowing date specified in such Swing Line Loan Notice, make the amount of its Swing Line Loan available to the applicable Borrower in Same Day Funds.

     (c) Refinancing of Swing Line Loans.

     (i) The Swing Line Lender at any time in its sole and absolute discretion may request, on behalf of the Borrowers (each of which hereby irrevocably authorizes the Swing Line Lender to so request on its behalf), that each Lender make a Base Rate Advance in an amount equal to such Lender’s Pro Rata Share of the amount of Swing Line Loans then outstanding. Such request shall be made in writing (which written request shall be deemed to be a Notice of Borrowing for purposes hereof) and in

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accordance with the requirements of Section 2.02, without regard to the minimum and multiples specified in Section 2.01 for the principal amount of Base Rate Advances, but subject to the unutilized portion of the Total Commitments and the conditions set forth in Section 3.02. The Swing Line Lender shall furnish the Borrower Agent with a copy of the applicable Notice of Borrowing promptly after delivering such notice to the Administrative Agent. Each Lender shall make an amount equal to its Pro Rata Share of the amount specified in such Notice of Borrowing available to the Administrative Agent in immediately available funds (and the Administrative Agent may apply Cash Collateral available with respect to the applicable Swing Line Loan) for the account of the Swing Line Lender at the Administrative Agent’s office not later than 1:00 P.M. (New York City time) on the day specified in such Notice of Borrowing, whereupon, subject to Section 2.04(c)(ii), each Lender that so makes funds available shall be deemed to have made a Base Rate Advance to the Borrowers in such amount. The Administrative Agent shall remit the funds so received to the Swing Line Lender.

     (ii) If for any reason any Swing Line Loan cannot be refinanced by such an Advance in accordance with Section 2.04(c)(i), the request for Base Rate Advances submitted by the Swing Line Lender as set forth herein shall be deemed to be a request by the Swing Line Lender that each of the Lenders fund its risk participation in the relevant Swing Line Loan and each Lender’s payment to the Administrative Agent for the account of the Swing Line Lender pursuant to Section 2.04(c)(i) shall be deemed payment in respect of such participation.

     (iii) If any Lender fails to make available to the Administrative Agent for the account of the Swing Line Lender any amount required to be paid by such Lender pursuant to the foregoing provisions of this Section 2.04(c) by the time specified in Section 2.04(c)(i), the Swing Line Lender shall be entitled to recover from such Lender (acting through the Administrative Agent), on demand, such amount with interest thereon for the period from the date such payment is required to the date on which such payment is immediately available to the Swing Line Lender at a rate per annum equal to the greater of the Federal Funds Rate and a rate determined by the Swing Line Lender in accordance with banking industry rules on interbank compensation. A certificate of the Swing Line Lender submitted to any Lender (through the Administrative Agent) with respect to any amounts owing under this clause (iii) shall be conclusive absent manifest error.

     (iv) Each Lender’s obligation to make Advances or to purchase and fund risk participations in Swing Line Loans pursuant to this Section 2.04(c) shall be absolute and unconditional and shall not be affected by any circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right which such Lender may have against the Swing Line Lender, either Borrower or any other Person for any reason whatsoever, (B) in the case of each Lender’s obligation to purchase and fund risk participations only, the occurrence or continuance of a Default, or (C) any other occurrence, event or condition, whether or not similar to any of the foregoing; provided, however, that each Lender’s obligation to make Advances (but not to fund risk participations in Swing Line Loans) pursuant to this Section 2.04(c) is subject to the conditions set forth in Section 3.02. No such funding of risk participations shall relieve or otherwise impair the

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obligation of the Borrowers to repay Swing Line Loans, together with interest as provided herein.

     (d) Repayment of Participations.

     (i) At any time after any Lender has purchased and funded a risk participation in a Swing Line Loan, if the Swing Line Lender receives any payment on account of such Swing Line Loan, the Swing Line Lender will distribute to such Lender its Pro Rata Share (determined at the time of such purchase and funding) of such payment (appropriately adjusted, in the case of interest payments, to reflect the period of time during which such Lender’s risk participation was funded) in the same funds as those received by the Swing Line Lender.

     (ii) If any payment received by the Swing Line Lender in respect of principal or interest on any Swing Line Loan is required to be returned by the Swing Line Lender (including pursuant to any settlement entered into by the Swing Line Lender in its discretion), each Lender shall pay to the Swing Line Lender its Pro Rata Share thereof on demand of the Administrative Agent, plus interest thereon from the date of such demand to the date such amount is returned, at a rate per annum equal to the Federal Funds Rate. The Administrative Agent will make such demand upon the request of the Swing Line Lender. The obligations of the Lenders under this clause shall survive the payment in full of the all amounts owing hereunder and under any Loan Document and the termination of this Agreement.

     (e) Interest for Account of Swing Line Lender. The Swing Line Lender shall be responsible for invoicing the Borrower Agent for interest on the Swing Line Loans. Until a Lender funds its Base Rate Advance or risk participation pursuant to this Section 2.04 to refinance such Lender’s Pro Rata Share of any Swing Line Loan, interest in respect of such Pro Rata Share shall be solely for the account of the Swing Line Lender, and after such Lender funds its Base Rate Advance or risk participation pursuant to this Section 2.04 to refinance such Lender’s Pro Rata Share of any Swing Line Loan, such interest shall be for the account of such Lender.

     (f) Payments Directly to Swing Line Lender. The Borrowers shall make all payments of principal and interest in respect of the Swing Line Loans directly to the Swing Line Lender.

     Section 2.05 Fees. In addition to certain fees described in subsections (h) and (i) of Section 2.03:

     (a) Facility Fee. The Borrowers agree to pay to the Administrative Agent for the account of each Lender a facility fee on (i) until the Termination Date, the aggregate amount of such Lender’s Commitment from the Effective Date in the case of each Initial Lender and from the effective date specified in the Assignment and Assumption pursuant to which it became a Lender in the case of each other Lender until the Termination Date and (ii) after the Termination Date in the event that any Letter of Credit is issued with an expiry date that occurs beyond the Termination Date, on the aggregate amount of such Lender’s unfunded and funded risk

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participations in all such Letters of Credit until such Letters of Credit have expired and all L/C Obligations with respect thereto have been paid in full or terminated (the “Extended L/C Termination Date”), in each case, subject to adjustment as provided in Section 8.16, at a rate per annum equal to the Applicable Percentage in effect from time to time, payable in arrears quarterly on the last day of each March, June, September and December (each a “Facility Fee Payment Date”), commencing with the Facility Fee Payment Date first occurring after the Effective Date, and, in the case of clause (i) above, on the Termination Date, and in the case of clause (ii) above on the Extended L/C Termination Date.

     (b) Agent’s Fees. The Borrowers shall pay to the Administrative Agent for its own account such fees as may from time to time be agreed between the Borrowers and the Administrative Agent, including without limitation in the Fee Letter.

     Section 2.06 Termination or Reduction of the Commitments. The Borrowers shall have the right, upon at least three Business Days’ notice to the Administrative Agent, to terminate in whole or permanently reduce ratably in part the unused portions of the respective Commitments of the Lenders, provided that each partial reduction of the Total Commitment shall be in the aggregate amount of $25,000,000 or an integral multiple of $1,000,000 in excess thereof.

     Section 2.07 Repayment of Advances.

     (a) The Borrowers shall repay to the Administrative Agent for the ratable account of the Lenders on the Termination Date the aggregate principal amount of all Advances then outstanding together with all accrued and unpaid interest, fees and costs associated therewith. Repayments made pursuant to this clause (a) shall be in the same currency in which such outstanding Advances were made.

     (b) The Borrowers shall repay each Swing Line Loan together with accrued and unpaid interest thereon on the earlier to occur of (i) the date ten (10) Business Days after such Swing Line Loan is made, and (ii) the Termination Date.

     Section 2.08 Interest on Advances.

     (a) Scheduled Interest. The Borrowers shall pay interest on the unpaid principal amount of each Advance owing to each Lender from the date of such Advance until such principal amount shall be paid in full, at the following rates per annum:

     (i) Base Rate Advances. During such periods as such Advance is a Base Rate Advance, a rate per annum equal at all times to the sum of (x) the Base Rate in effect from time to time plus (y) the Applicable Margin for Base Rate Advances in effect from time to time, payable in arrears quarterly on the last day of each March, June, September and December during such periods and on the date such Base Rate Advance shall be Converted or paid in full.

     (ii) Eurocurrency Rate Advances. During such periods as such Advance is a Eurocurrency Rate Advance, a rate per annum equal at all times during each Interest Period for such Advance to the sum of (x) the Eurocurrency Rate for such Interest Period for such Advance plus (y) the Applicable Margin for Eurocurrency Rate Advances in

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effect from time to time plus (z) in the case of each Advance in Sterling, the Mandatory Cost, payable in arrears on the last day of such Interest Period and, if such Interest Period has a duration of more than three months, on each day that occurs during such Interest Period every three months from the first day of such Interest Period and on the date such Eurocurrency Rate Advance shall be Converted or paid in full.

     (iii) Swing Line Loans. With respect to each Swing Line Loan, a rate per annum equal at all times to the sum of (x) the Base Rate in effect from time to time plus (y) the Applicable Margin for Base Rate Advances in effect from time to time payable in arrears on the date of repayment or refinancing, in whole or in part, of such Swing Line Loan.

     (b) Default Interest. Upon the occurrence and during the continuance of an Event of Default, with the consent or at the direction of the Required Lenders, the Borrowers shall pay interest on (i) the unpaid principal amount of each Advance owing to each Lender, payable in arrears on the dates referred to in clause (a)(i), (a)(ii) or (a)(iii) above, at a rate per annum equal at all times to 2% per annum above the rate per annum required to be paid on such Advance pursuant to clause (a)(i), (a)(ii) or (a)(iii) above and (ii) to the fullest extent permitted by law, the amount of any interest, fee or other amount payable hereunder that is not paid when due, from the date such amount shall be due until such amount shall be paid in full, payable in arrears on the date such amount shall be paid in full and on demand, at a rate per annum equal at all times to 2% per annum above the rate per annum required to be paid on Base Rate Advances pursuant to clause (a)(i) above.

     Section 2.09 Interest Rate Determination.

     (a) The Administrative Agent shall give prompt notice to the Borrower Agent and the Lenders of the applicable interest rate determined by the Administrative Agent for purposes of Section 2.08(a)(i), (ii) or (iii).

     (b) If, with respect to any Eurocurrency Rate Advances, the Required Lenders notify the Administrative Agent that the Eurocurrency Rate for any Interest Period for such Advances will not adequately reflect the cost to such Required Lenders of making, funding or maintaining their respective Eurocurrency Rate Advances for such Interest Period, the Administrative Agent shall forthwith so notify the Borrower Agent and the Lenders, whereupon (i) each Eurocurrency Rate Advance will automatically, on the last day of the then existing Interest Period therefor, Convert into a Base Rate Advance, and (ii) the obligation of the Lenders to make, or to Convert Base Rate Advances into, Eurocurrency Rate Advances shall be suspended until the Administrative Agent shall notify the Borrower Agent and the Lenders that the circumstances causing such suspension no longer exist.

     (c) If the Borrowers shall fail to select the duration of any Interest Period for any Eurocurrency Rate Advances in accordance with the provisions contained in the definition of “Interest Period” in Section 1.01, the Administrative Agent will forthwith so notify the Borrower Agent and the Lenders and such Advances will automatically, on the last day of the then existing Interest Period for such Eurocurrency Rate Advance, Convert into Base Rate Advances.

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     (d) On the date on which the aggregate unpaid principal amount of Eurocurrency Rate Advances comprising any Borrowing shall be reduced, by payment or prepayment or otherwise, to less than $5,000,000, such Advances shall automatically Convert into Base Rate Advances.

     (e) Upon the occurrence and during the continuance of any Event of Default, (i) each Eurocurrency Rate Advance will automatically, on the last day of the then existing Interest Period therefor, Convert into a Base Rate Advance and (ii) the obligation of the Lenders to make, or to Convert Advances into, Eurocurrency Rate Advances shall be suspended.

     Section 2.10 Optional Conversion of Advances. The Borrowers may on any Business Day, upon notice given to the Administrative Agent not later than 11:00 A.M. (New York City time) on the third Business Day, with respect to Advances in Dollars, or the fifth Business Day, with respect to Advances in Sterling, prior to the date of the proposed Conversion and subject to the provisions of Sections 2.09 and 2.13, Convert all Advances of one Type comprising the same Borrowing into Advances of the other Type; provided, however, that any Conversion of Eurocurrency Rate Advances into Base Rate Advances shall be made only on the last day of an Interest Period for such Eurocurrency Rate Advances, any Conversion of Base Rate Advances into Eurocurrency Rate Advances shall be in an amount not less than the minimum amount specified in Section 2.02(b) and no Conversion of any Advances shall result in more separate Eurocurrency Rate Borrowings than permitted under Section 2.02(b). Each such notice of a Conversion shall, within the restrictions specified above, specify (i) the date of such Conversion, (ii) the Advances to be Converted, and (iii) if such Conversion is into Eurocurrency Rate Advances, the duration of the initial Interest Period for each such Advance. Each notice of Conversion shall be irrevocable and binding on the Borrowers.

     Section 2.11 Prepayments of Advances.

     (a) Optional Prepayments. The Borrowers may, upon notice to the Administrative Agent stating the proposed date and aggregate principal amount of the prepayment, given not later than 11:00 A.M. (New York City time) on the third Business Day, with respect to Advances in Dollars, or the fifth Business Day, with respect to Advances in Sterling, prior to the date of such proposed prepayment, in the case of Eurocurrency Rate Advances, and not later than 11:00 A.M. (New York City time) on the day of such proposed prepayment, in the case of Base Rate Advances, and if such notice is given the Borrowers shall, prepay the Outstanding Amount of the Advances comprising part of the same Borrowing in whole or ratably in part, together with accrued interest to the date of such prepayment on the principal amount prepaid, with such prepayment to be made in the currency in which such Advances were made; provided, however, that (x) except in the case of prepayments of Swing Line Loans, as described in clause (z) below, each partial prepayment shall be in an aggregate principal amount of $5,000,000 or the Equivalent thereof in Sterling or an integral multiple of $1,000,000 or the Equivalent thereof in Sterling in excess thereof, (y) in the event of any such prepayment of a Eurocurrency Rate Advance, the Borrowers shall be obligated to reimburse the Lenders in respect thereof pursuant to Section 8.04(c) and (z) in the case of a Swing Line Loan, the Borrowers may prepay the Outstanding Amount of such Swing Line Loan, together with accrued interest to the date of such prepayment on the principal amount prepaid, at any time in minimum increments of $100,000.

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     (b) Mandatory Prepayments.

     (i) If at any time the sum of (A) the aggregate principal amount of all Advances denominated in Dollars then outstanding plus (B) the Equivalent in Dollars of the aggregate principal amount of all Advances denominated in Sterling then outstanding plus (C) the aggregate amount of all L/C Obligations denominated in Dollars then outstanding plus (D) the Equivalent in Dollars of the aggregate amount of all L/C Obligations denominated in Sterling outstanding exceeds the Total Commitment on such date, the Borrowers shall, within two Business Days after receipt of such notice given pursuant to (ii) below, prepay the outstanding principal amount of any Advances and/or Cash Collateralize 100% of the L/C Obligations pursuant to this Section 2.11(b) in an aggregate amount sufficient to reduce such sum to an amount not to exceed the Total Commitment on such date.

     (ii) Each prepayment made pursuant to this Section 2.11(b) (A) shall be made together with any interest accrued to the date of such prepayment on the principal amounts prepaid and, in the case of any prepayment of a Eurocurrency Rate Advance on a date other than the last day of an Interest Period or at its maturity, any additional amounts which the Borrowers shall be obligated to reimburse to the Lenders in respect thereof pursuant to Section 8.04(c), and (B) shall be made in the currency in which the Advances subject to such prepayment were made. The Administrative Agent shall give prompt notice of any prepayment required under this Section 2.11(b) to the Borrower Agent and the Lenders.

     (c) Hedging Agreements. All Hedging Agreements, if any, between the Borrowers and any Lender or its affiliates are independent agreements governed by the written provisions of such Hedging Agreements, which will remain in full force and effect, unaffected by any repayment, prepayment, acceleration, reduction, increase or change in terms of this Agreement or the Notes, except as otherwise expressly provided in said written swap agreements, and any payoff statements from the Administrative Agent relating to this Agreement shall not apply to said Hedging Agreements, except as otherwise expressly provided in such payoff statement.

Subject to Section 8.16, each prepayment pursuant to this Section 2.11 (other than prepayments of Swing Line Loans) shall be applied to the Advances of the Lenders in accordance with their respective Pro Rata Share Percentages.

     Section 2.12 Increased Costs.

     (a) If, due to either (i) the introduction of or any change in or in the interpretation of any law or regulation occurring after the date hereof, (ii) the compliance with any guideline or request from any central bank or other governmental authority (whether or not having the force of law) issued or made after the date hereof, or (iii) the Mandatory Cost, as calculated hereunder, not representing the cost to any Lender or the L/C Issuer of complying with the requirements of the Bank of England and/or the Financial Services Authority or the European Central Bank in relation to its making, funding or maintaining Eurocurrency Rate Advances or participating in, issuing or maintaining Letters of Credit, there shall be any increase in the cost to any Lender of agreeing to make or making, funding or maintaining Eurocurrency Rate Advances or to any

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Lender or the L/C Issuer of participating in, issuing or maintaining any Letters of Credit (excluding for purposes of this Section 2.12 any such increased costs resulting from (i) Indemnifiable Taxes or Other Taxes (as to which Section 2.15 shall govern) and (ii) changes in taxes measured by or imposed upon the net income or gross income or franchise taxes, or taxes measured by or imposed upon capital or net worth, or branch taxes, of such Lender, its Applicable Lending Office or the L/C Issuer), then the Borrowers shall from time to time, within ten days of demand by such Lender or the L/C Issuer (with a copy of such demand to the Administrative Agent), pay to the Administrative Agent for the account of such Lender or the L/C Issuer additional amounts sufficient to compensate such Lender or the L/C Issuer for such increased cost; provided that, before making any such demand, each Lender agrees to use reasonable efforts (consistent with its internal policy and legal and regulatory restrictions) to designate a different Applicable Lending Office and the L/C Issuer agrees to use reasonable efforts to assign its rights and obligations hereunder to another of its offices, branches or affiliates if the making of such a designation or assignment would avoid the need for, or reduce the amount of, such additional cost and would not, in the reasonable judgment of such Lender or the L/C Issuer, be otherwise disadvantageous to such Lender or the L/C Issuer.

     (b) If any Lender or the L/C Issuer reasonably determines that compliance with any law or regulation or any guideline or request from any central bank or other governmental authority regarding capital adequacy (whether or not having the force of law) issued or made after the date hereof affects or would affect the amount of capital required or expected to be maintained by such Lender or the L/C Issuer or any corporation controlling such Lender or the L/C Issuer and that the amount of such capital is increased by or based upon the existence of such Lender’s commitment to lend hereunder, the L/C Issuer’s commitment to issue Letters of Credit hereunder, and other commitments of similar types, and such Lender or the L/C Issuer reasonably determines that the rate of return on its or such controlling corporation’s capital as a consequence is reduced to a level below that which such Lender, the L/C Issuer or such controlling corporation would have achieved but for the occurrence of such conditions, then, within ten days of demand by such Lender or the L/C Issuer (with a copy of such demand to the Administrative Agent), the Borrowers shall pay to the Administrative Agent for the account of such Lender or the L/C Issuer, from time to time as specified by such Lender or the L/C Issuer, additional amounts sufficient to compensate such Lender, the L/C Issuer or such corporation in the light of such circumstances, to the extent that such Lender or the L/C Issuer reasonably determines such increase in capital to be allocable to the existence of such Lender’s or the L/C Issuer’s commitment to lend hereunder.

     (c) If a Lender changes its Applicable Lending Office or the L/C Issuer assigns its rights and obligations hereunder to another of its offices, branches or affiliates (other than pursuant to this Section 2.12 or Section 2.13 or 2.15(g)) and the effect of such change, as of the date of such change, would be to cause the Borrowers to become obligated to pay any additional amounts under this Section 2.12, the Borrowers shall not be obligated to pay such additional amount.

     (d) A certificate of a Lender or the L/C Issuer setting forth the amount of any claim made under this Section 2.12 and identifying with reasonable specificity the basis for calculating such amount, shall be delivered to the Borrower Agent and the Administrative Agent and shall be conclusive absent manifest error.

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     Section 2.13 Illegality; Circumstances Affecting Availability. Notwithstanding any other provision of this Agreement, if any Lender shall notify the Administrative Agent (who will promptly notify the Borrower Agent and the other Lenders) that the introduction of or any change in or in the interpretation of any law or regulation after the date hereof makes it unlawful, or any central bank or other governmental authority asserts that it is unlawful, for any Lender or its Eurocurrency Lending Office to perform its obligations hereunder to make Advances for which interest is determined by reference to the Eurocurrency Rate or to fund or maintain such Advances hereunder, or if the Administrative Agent determines that by reason of circumstances affecting foreign exchange and interbank markets generally, the Eurocurrency Rate cannot be determined, then (A) each Eurocurrency Rate Advance will automatically, upon such notice, Convert into a Base Rate Advance (the interest rate on which Base Rate Advances shall, if necessary to avoid any illegality, be determined by the Administrative Agent without reference to the Eurocurrency Rate component of the Base Rate), and (B) the obligation of the Lenders to make Eurocurrency Rate Advances, Convert Base Rate Advances into Eurocurrency Rate Advances or, if necessary to avoid any illegality, to make Base Rate Advances the interest rate on which is determined by reference to the Eurocurrency Rate component of the Base Rate shall be suspended until the Administrative Agent shall notify the Borrower Agent and the Lenders that the circumstances causing such suspension or inability to determine the Eurocurrency Rate no longer exist or that such Lender has entered into one or more Assignment and Assumptions pursuant to Section 8.06 assigning its Commitment to one or more Eligible Assignees; provided that, before making any such demand, each Lender agrees to use reasonable efforts (consistent with its internal policy and legal and regulatory restrictions) to designate a different Applicable Lending Office if the making of such a designation would not, in the reasonable judgment of such Lender, be otherwise disadvantageous to such Lender.

     Section 2.14 Payments Generally and Computations.

     (a) General. All payments hereunder and under the Notes to be made by the Borrowers shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff. The Borrowers shall make each payment hereunder and under the Notes not later than 11:00 A.M. (New York City time) on the day when due in Dollars, in the case of Advances denominated in Dollars, or in Sterling, in the case of Advances denominated in Sterling, to the Administrative Agent at the Administrative Agent’s Account in Same Day Funds. The Administrative Agent will promptly thereafter cause to be distributed like funds relating to the payment of principal or interest or facility fees ratably (other than amounts payable pursuant to Section 2.12, 2.15 or 8.04(c)) to the Lenders for the account of their respective Applicable Lending Offices, and like funds relating to the payment of any other amount payable to any Lender to such Lender for the account of its Applicable Lending Office, in each case to be applied in accordance with the terms of this Agreement. Upon its acceptance of an Assignment and Assumption and recording of the information contained therein in the Register pursuant to Section 8.06(c), from and after the effective date specified in such Assignment and Assumption, the Administrative Agent shall make all payments hereunder and under the Notes in respect of the interest assigned thereby to the Lender assignee thereunder, and the parties to such Assignment and Assumption shall make all appropriate adjustments in such payments for periods prior to such effective date directly between themselves.

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     (b) All computations of interest based on the Base Rate (including in each case where the Base Rate is determined by reference to the Eurocurrency Rate) or the Federal Funds Rate and all computations of interest in respect of Advances denominated in Sterling shall be made by the Administrative Agent on the basis of a year of 365 or 366 days, as the case may be, and all computations of interest based on the Eurocurrency Rate (other than (i) any case where the Base Rate is determined by reference to the Eurocurrency Rate, and (ii) in respect of interest on Advances in Sterling) and of facility fees, shall be made by the Administrative Agent on the basis of a year of 360 days, in each case for the actual number of days (including the first day but excluding the last day) occurring in the period for which such interest or facility fees are payable. Each determination by the Administrative Agent of an interest rate hereunder shall be conclusive and binding for all purposes, absent manifest error.

     (c) Whenever any payment hereunder or under the Notes shall be stated to be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day, and such extension of time shall in such case be included in the computation of payment of interest or facility fee, as the case may be; provided, however, that, if such extension would cause payment of interest on or principal of Eurocurrency Rate Advances to be made in the next following calendar month, or cause any payment of interest on or principal of Advances to be made after the Maturity Date, such payment shall be made on the next preceding Business Day.

     (d) Unless the Administrative Agent shall have received notice from the Borrower Agent prior to the date on which any payment is due to the Lenders or the L/C Issuer hereunder that the Borrowers will not make such payment in full, the Administrative Agent may assume that the Borrowers have made such payment in full to the Administrative Agent on such date and the Administrative Agent may, in reliance upon such assumption, cause to be distributed to each Lender or the L/C Issuer, as the case may be, on such due date an amount equal to the amount then due such Lender or the L/C Issuer. If and to the extent the Borrowers shall not have so made such payment in full to the Administrative Agent, each Lender or the L/C Issuer, as the case may be, shall repay to the Administrative Agent forthwith on demand such amount distributed to such Lender or the L/C Issuer together with interest thereon, for each day from the date such amount is distributed to such Lender or the L/C Issuer until the date such Lender or the L/C Issuer repays such amount to the Administrative Agent, at the Overnight Rate.

     Section 2.15 Taxes.

     (a) Except as otherwise required by law, any and all payments by the Borrowers hereunder, under the Notes or under any other Loan Document issued hereunder shall be made, in accordance with Section 2.14, free and clear of and without deduction for any and all present or future taxes, levies, imposts, deductions, charges or withholdings and all liabilities with respect thereto (all such taxes, levies, imposts, deductions, charges, withholdings, and liabilities in respect of payments hereunder, under the Notes or under any other Loan Document, along with any penalties, additions to tax, interest and reasonable expenses arising therefrom or with respect thereto (whether or not correctly or legally imposed or asserted by the relevant taxing authority), collectively being hereafter referred to as “Taxes”), excluding, in the case of payments made to any Lender, the L/C Issuer or the Administrative Agent (A) Taxes imposed on or measured by its net income, and franchise Taxes, branch Taxes, Taxes on doing business and Taxes measured by or imposed upon its capital or net worth, in each case imposed as a result of

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such Lender (and or such Lender’s Applicable Lending Office), the L/C Issuer or the Administrative Agent being organized under the laws of, or being a legal resident of, or having a fixed place of business or a permanent establishment or doing business in the jurisdiction imposing such Tax (other than any such connection arising solely from such Lender (and or such Lender’s Applicable Lending Office), the L/C Issuer or the Administrative Agent having executed, delivered or performed its obligations, or having received a payment, or having enforced its rights and remedies, under this Agreement or any of the other Loan Documents), (B) United States branch profits tax or any similar tax imposed by any jurisdiction in which either Borrower is located, (C) in the case of a Lender (including such a Lender when acting in the capacity of L/C Issuer) organized under the laws of a jurisdiction outside the United States, any United States withholding tax that is required to be imposed on amounts payable to such Lender (including such a Lender when acting in the capacity of L/C Issuer) pursuant to applicable laws in force at the time such Lender becomes a party hereto (or designates a new Applicable Lending Office), (D) as provided in Section 2.15(g), (E) any tax imposed by Sections 1471-1474 of the Code, (F) United Kingdom withholding Taxes except to the extent such United Kingdom withholding Taxes would not have been imposed but for a change, after the date such Lender or the Administrative Agent (as the case may be) becomes a party hereto, in United Kingdom tax law or officially published HM Revenue & Customs practice or an amendment or revocation, after the date such Lender or the Administrative Agent (as the case may be) becomes a party hereto, of an applicable United Kingdom income tax treaty with Austria, Denmark, Finland, France, Germany, Ireland, Iceland, Luxembourg, Netherlands, Norway, Sweden, Switzerland or the United States, and (G) United Kingdom Taxes imposed as a result of the failure of HM Revenue & Customs to approve, on or before a payment of interest to a Lender hereunder, a claim by such Lender for exemption from such United Kingdom Taxes, where such failure is due to such Lender’s failure to submit a validly completed and executed Treaty Form within a reasonable time after such Lender would have been allowed to submit such Treaty Form, it being understood that after any such approval by HM Revenue & Customs of such Lender’s claim for exemption, such United Kingdom Taxes with respect to such Lender shall not be excluded from the application of this Section 2.15(a) (any non-excluded Taxes hereinafter referred to as “Indemnifiable Taxes”). If either Borrower shall be required by law to deduct any Indemnifiable Taxes from or in respect of any sum payable hereunder, under any Note issued hereunder or under any other Loan Document to any Lender, the L/C Issuer or the Administrative Agent or, if the Administrative Agent shall be required by law to deduct any Indemnifiable Taxes from or in respect of any sum paid or payable hereunder, under any Note or under any other Loan Document to any Lender or the L/C Issuer, (i) the sum payable shall be increased as may be necessary so that after making all required deductions for Indemnifiable Taxes (including deductions for Indemnifiable Taxes, whether by such Borrower or the Administrative Agent, applicable to additional sums payable under this Section 2.15) such Lender, the L/C Issuer or the Administrative Agent (as the case may be) receives an amount equal to the sum it would have received had no such deductions been made, (ii) such Borrower (or, as the case may be and as required by applicable law, the Administrative Agent) shall make such deductions and (iii) such Borrower (or, as the case may be and as required by applicable law, the Administrative Agent) shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable law.

     (b) In addition, the Borrowers shall timely pay in accordance with applicable laws any present or future stamp or documentary taxes or any other excise (other than income) or

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property taxes, charges or similar levies that arise from any payment made hereunder, under the Notes or under any other Loan Document or from the execution, delivery or registration of, or performing under this Agreement, the Notes, any other Loan Document or any document to be furnished under or in connection with any thereof or any modification or amendment in respect of this Agreement, the Notes or any other Loan Document (hereinafter referred to as “Other Taxes”); provided that for the avoidance of doubt, the Taxes imposed by Sections 1471-1474 of the Code shall not be treated as Other Taxes.

     (c) The Borrowers shall indemnify each Lender, the L/C Issuer and the Administrative Agent for the full amount of Indemnifiable Taxes or Other Taxes imposed on or paid by such Lender, the L/C Issuer or the Administrative Agent (as the case may be) and any liability (including penalties, interest and expenses) arising therefrom or with respect thereto. This indemnification shall be made within 30 days from the date such Lender, the L/C Issuer or the Administrative Agent (as the case may be) makes written demand therefor.

     (d) Within 30 days after the date of any payment of Indemnifiable Taxes under Section 2.15(a) by the Borrowers, the Borrower Agent shall furnish to the Administrative Agent, at its address referred to in Section 8.02, the original or a certified copy of a receipt evidencing such payment to the extent such receipt is received by the Borrowers, or other written proof of payment reasonably satisfactory to the Administrative Agent showing payment thereof. In the case of any payment hereunder or under the Notes issued hereunder by or on behalf of a Borrower organized under the laws of the United Kingdom through an account or branch outside the United Kingdom or by or on behalf of the Borrower by a payor that is not a United Kingdom person, if the Borrower determines that no Indemnifiable Taxes are payable in respect thereof, the Borrower shall furnish, or shall cause such payor to furnish, to the Administrative Agent, at such address, an opinion of counsel acceptable to the Administrative Agent stating that such payment is exempt from Indemnifiable Taxes.

     (e) Each Lender organized under the laws of a jurisdiction outside the United States, on or prior to the date of its execution and delivery of this Agreement in the case of each Initial Lender and on the date of the Assignment and Assumption pursuant to which it becomes a Lender in the case of each other Lender, and from time to time thereafter as requested in writing by the Borrower Agent shall provide each of the Administrative Agent and the Borrower Agent with (i) two original Internal Revenue Service Form W-8BEN, W-8ECI, or W-8IMY as appropriate, or any successor or other form prescribed by the Internal Revenue Service, certifying that such Lender is exempt from United States withholding tax and (ii) to the extent that any such form or other certification becomes obsolete with respect to any Lender, such Lender shall, upon the written request of the Borrower Agent to such Lender and the Administrative Agent, promptly provide either an updated or successor form or certification to the Borrower Agent and the Administrative Agent unless, in each case, any change in treaty, law or regulation has occurred after the date such Lender becomes a party hereunder which renders all such forms inapplicable or which would prevent such Lender from duly completing and delivering any such form with respect to it and such Lender so advises the Borrower Agent and the Administrative Agent. Each Lender that is a “United States person” within the meaning of Section 7701(a)(30) of the Internal Revenue Code shall deliver to the Borrower Agent and the Administrative Agent executed originals of Internal Revenue Service Form W-9 or such other documentation or information prescribed by applicable laws or reasonably requested by the

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Borrower Agent or the Administrative Agent as will enable the Borrowers or the Administrative Agent, as the case may be, to determine whether or not such Lender is subject to backup withholding or information reporting requirements.

     (f) Each Lender shall (i) as soon as reasonably practicable following the date it becomes a party hereto, submit to its Relevant Taxing Authority a validly completed Treaty Form (or successor Treaty Form thereto) claiming exemption from United Kingdom withholding Tax on interest, or (ii)(A) on or before the date it becomes a party hereto, furnish to the Borrower, with a copy to the Administrative Agent, a certificate substantially in the form of Exhibit I (a “U.K. Tax Compliance Certificate”) certifying that such Lender (1) is a “bank” within the meaning of Section 879 of the Income Tax Act 2007 of the United Kingdom and (2) is within the charge to corporation tax in the United Kingdom with respect to payment hereunder and (B) agree, upon reasonable request by the Borrower, to provide to the Borrower and the Administrative Agent, to the extent it is legally entitled to do so, such other forms as may be required by law in order to establish the legal entitlement of such Lender to an exemption from United Kingdom withholding Tax with respect to payments under this Agreement and the Notes issued hereunder, unless, in each case, any change in treaty, law or regulation has occurred after the date such Lender becomes a party hereunder which renders any such forms inapplicable or which would prevent such Lender from duly completing and delivering any such form with respect to it and such Lender so advises the Borrower and the Administrative Agent.

     (g) For any period with respect to which a Lender has failed to provide the Borrower Agent with the appropriate form described in Section 2.15(e) (other than if the Borrower Agent has failed to timely request with reasonable notice any appropriate renewal, successor or other form or if any such form otherwise is not required under subsection (e) or (f)), such Lender shall not be entitled to indemnification under Section 2.15(a) or (c) with respect to Indemnifiable Taxes imposed by the United Kingdom or the United States by reason of such failure; provided, however, that should a Lender become subject to Indemnifiable Taxes or United Kingdom or United States withholding Taxes because of its failure to deliver a form required hereunder, the Borrowers shall take such steps as such Lender shall reasonably request to assist such Lender to recover such Indemnifiable Taxes or United Kingdom or United States withholding Taxes.

     (h) If a condition or an event occurs which would, or would upon the passage of time or giving notice, result in the payment of any additional amounts pursuant to this Section 2.15, each Lender agrees to use reasonable efforts (consistent with its internal policy and legal and regulatory restrictions) to change the jurisdiction of its Applicable Lending Office and the L/C Issuer agrees to use its reasonable efforts to assign its rights and obligations hereunder to another of its offices, branches or affiliates if the making of such a change or assignment would avoid the need for, or reduce the amount of, any such additional amounts that may thereafter accrue and would not, in the reasonable judgment of such Lender or the L/C Issuer, be otherwise disadvantageous to such Lender or the L/C Issuer.

     (i) If the Administrative Agent, the L/C Issuer or any Lender, in its sole opinion, determines that it has finally and irrevocably received or been granted a refund in respect of any Indemnifiable Taxes or Other Taxes as to which indemnification has been paid by the Borrowers pursuant to Section 2.15(a) or (c), it shall promptly remit such refund to the Borrowers, net of all out-of-pocket expenses of the Administrative Agent, the L/C Issuer or such Lender; provided,

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however, that the Borrowers upon the request of the Administrative Agent, the L/C Issuer or such Lender, agree promptly to return such refund to such party in the event such party is required to repay such refund to the relevant taxing authority. The Administrative Agent, the L/C Issuer or such Lender shall provide the Borrower Agent with a copy of any notice or assessment from the relevant taxing authority (deleting any confidential information contained therein) requiring the repayment of such refund. Nothing contained herein shall impose an obligation on the Administrative Agent, the L/C Issuer or any Lender to apply for any refund or to disclose to any party any information regarding their proprietary information regarding tax affairs and computations. If the Borrowers determine in good faith that a reasonable basis exists for contesting any Taxes for which indemnification has been demanded hereunder, the relevant Lender, the L/C Issuer or the Administrative Agent, as applicable, to the extent permitted by law, rule or regulation, shall reasonably cooperate with the Borrowers in challenging such Taxes at the Borrowers’ expense if so requested by the Borrower Agent in writing. If any Indemnifiable Taxes or Other Taxes are imposed that result in an indemnification or payment obligation on any Borrower, such Borrower shall be entitled to challenge or dispute the imposition of such Indemnifiable Taxes or Other Taxes with the applicable taxing authority in an appropriate proceeding diligently conducted, and such Borrower shall be permitted to control such proceeding, including as to settlement.

     (j) If a Lender changes its Applicable Lending Office or the L/C Issuer assigns its rights and obligations hereunder to another of its offices, branches or affiliates (other than pursuant to subsection (g) above or Section 2.12 or 2.13) and the effect of such change, as of the date of such change, would be to cause the Borrowers to become obligated to pay any additional amounts under this Section 2.15, the Borrowers shall not be obligated to pay such additional amount.

     (k) A certificate of a Lender or the L/C Issuer setting forth such amount or amounts as shall be necessary to compensate such Lender or the L/C Issuer specified in Section 2.15(a), (b), or (c) above, as the case may be, and identifying with reasonable specificity the basis for calculation of such amount or amounts, shall be delivered to the Borrower Agent and the Administrative Agent and shall be conclusive absent manifest error.

     (l) The obligations of a Lender and the L/C Issuer under this Section 2.15 shall survive the termination of this Agreement and the payment of the Advances and all other Obligations hereunder.

     Section 2.16 Sharing of Payments, Etc. If any Lender shall obtain any payment (whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise) on account of the Advances owing to it (other than pursuant to Section 2.12, 2.15 or 8.04(c)), or the participations in L/C Obligations or in Swing Line Loans held by it, in excess of its ratable share of payments on account of the Advances obtained by all the Lenders, such Lender shall forthwith purchase from the other Lenders such participations in the Advances (and subparticipations in L/C Obligations and Swing Line Loans) owing to them as shall be necessary to cause such purchasing Lender to share the excess payment ratably with each of them; provided, however, that if all or any portion of such excess payment is thereafter recovered from such purchasing Lender, such purchase from each Lender shall be rescinded and such Lender shall repay to the purchasing Lender the purchase price to the extent of such recovery together with an amount

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equal to such Lender’s ratable share (according to the proportion of (i) the amount of such Lender’s required repayment to (ii) the total amount so recovered from the purchasing Lender) of any interest or other amount paid or payable by the purchasing Lender in respect of the total amount so recovered. The Borrowers agree that any Lender so purchasing a participation from another Lender pursuant to this Section 2.16 may, to the fullest extent permitted by law, exercise all of its rights of payment (including the right of setoff) with respect to such participation as fully as if such Lender were the direct creditor of the Borrowers in the amount of such participation. Notwithstanding the foregoing, the provisions of this Section shall not be construed to apply to (x) any payment that is in excess of such Lender’s ratable share made by or on behalf of the Borrowers pursuant to and in accordance with the express terms of this Agreement (including those provisions providing for the application of funds when a Defaulting Lender exists) or (y) the application of Cash Collateral or other credit support (and proceeds thereof) in respect of obligations relating to Letters of Credit or Swing Line Loans (including related Lender participation obligations) provided for in 2.18.

     Section 2.17 Use of Proceeds. The proceeds of the Advances shall be available (and the Borrowers agree that they shall use such proceeds) solely (i) for working capital, capital expenditures, and for other lawful purposes (including, without limitation, to provide liquidity support for commercial paper issued by the Borrowers, acquisition financing and repurchases of equity, Existing Debt or other Debt of the Parent and its Subsidiaries to the extent not prohibited by this Agreement), and (ii) to repay in full all amounts outstanding under the Existing Credit Agreement.

     Section 2.18 Cash Collateral and Other Credit Support.

     (a) Certain Credit Support Events.

     (i) Upon the request of the Administrative Agent or the L/C Issuer (A) if the L/C Issuer has honored any full or partial drawing request under any Letter of Credit and such drawing has resulted in an L/C Borrowing, (B) if, as of the Letter of Credit Expiration Date, any L/C Obligation for any reason remains outstanding, or (C) if the Outstanding Amount of all L/C Obligations exceeds the Letter of Credit Sublimit, the Borrowers shall, in the case of clause (A) and (B) above, promptly Cash Collateralize 100% of the then Outstanding Amount of all L/C Obligations, and in the case of clause (C) above, promptly Cash Collateralize 100% of such excess.

     (ii) At any time (A) a Defaulting Lender exists, (B)(1) the Borrower Agent requests a Letter of Credit or a Swing Line Loan or (2) a Letter of Credit or a Swing Line Loan is outstanding, and (C) the Pro Rata Share Percentages of each non-Defaulting Lender can not fully be adjusted as set forth in Section 8.16(a)(iv), then the Administrative Agent and the L/C Issuer or Swing Line Lender, as applicable, may, in their sole discretion, require that the Borrowers enter into arrangements satisfactory to the Administrative Agent and the L/C Issuer or the Swing Line Lender, as applicable, for the delivery of Cash Collateral to the Administrative Agent in an amount sufficient to cover all Fronting Exposure (after giving effect to Section 8.16(a)(iv) and any Cash Collateral provided by the Defaulting Lender). With respect to the circumstances described in clause (B)(1) above, such arrangements shall be a condition to the Advance of such

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Swing Line Loan or the issuance of such Letter of Credit. With respect to the circumstances described in clause (B)(2) above, such arrangements shall be made no later than five (5) Business Days after written notice to the Borrower Agent from the Administrative Agent, the L/C Issuer or the Swing Line Lender that the circumstances in clause (A) and (C) above exist, unless the Borrowers (x) have replaced such Defaulting Lender prior to such time in accordance with the terms of this Agreement or (y) in the case of a Swing Line Loan, have otherwise repaid such Swing Line Loan, or (z) in the case of a Letter of Credit, have otherwise caused such Letter of Credit to be terminated or replaced.

     (b) Grant of Security Interest. All Cash Collateral (other than credit support not constituting funds subject to deposit) shall be maintained in blocked, non-interest bearing deposit accounts at Bank of America. The Borrowers, and to the extent provided by any Defaulting Lender, such Lender, agree that to the extent any Cash Collateral is provided to the Administrative Agent under any of this Section 2.18 or Sections 2.03, 2.11, 6.02 or 8.16, the Borrowers or such Lender, as applicable, will at such time grant to (and subject to the control of) the Administrative Agent, for the benefit of the Administrative Agent, the L/C Issuer and the Lenders (including the Swing Line Lender), a first priority security interest in all such Cash Collateral (including all deposit accounts and all balances therein, all other property so provided as collateral pursuant hereto, and all proceeds of the foregoing) pursuant to a security agreement and a Cash Collateral account control agreement, in each case, to be mutually agreed and entered into between the Borrowers, or the Defaulting Lender, as the case may be, and the Administrative Agent, all as security for the obligations to which such Cash Collateral may be applied pursuant to Section 2.18(c). If at any time the Administrative Agent determines that Cash Collateral is subject to any right or claim of any Person other than the Administrative Agent as herein provided, or that the total amount of such Cash Collateral is less than the applicable Fronting Exposure and other obligations secured thereby, the Borrowers or the relevant Defaulting Lender will, promptly upon demand by the Administrative Agent, pay or provide to the Administrative Agent additional Cash Collateral in an amount sufficient to eliminate such deficiency.

     (c) Application. Notwithstanding anything to the contrary contained in this Agreement, Cash Collateral provided under any of this Section 2.18 or Sections 2.03, 2.11, 6.02 or 8.16 in respect of Letters of Credit or Swing Line Loans shall be held and applied to the satisfaction of the specific L/C Obligations, Swing Line Loans, obligations to fund participations therein (including, as to Cash Collateral provided by a Defaulting Lender, any interest accrued on such obligation) and other obligations for which the Cash Collateral was so provided, prior to any other application of such property as may be provided for herein.

     (d) Release. Cash Collateral (or the appropriate portion thereof) provided to reduce Fronting Exposure or other obligations shall be released promptly following (i) the elimination of the applicable Fronting Exposure or other obligations giving rise thereto (including by the termination of Defaulting Lender status of the applicable Lender (or, as appropriate, its assignee following compliance with Section 8.06(b)(vi))) or (ii) the Administrative Agent’s good faith determination that there exists excess Cash Collateral; provided, however, (x) that Cash Collateral furnished by or on behalf of a Loan Party shall not be released during the continuance of a Default or Event of Default (and following application as provided in this Section 2.18 may

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be otherwise applied in accordance with Section 6.02), and (y) the Person providing Cash Collateral and the L/C Issuer or Swing Line Lender, as applicable, may agree that Cash Collateral shall not be released but instead held to support future anticipated Fronting Exposure or other obligations.

     (e) Claims against Defaulting Lenders. No action taken, permitted to be taken or omitted to be taken by the Borrowers, the Administrative Agent, the Swing Line Lender or any Lender under this Section 2.18 or any of the other terms or provisions of this Agreement shall constitute or be deemed to be a waiver or release of any claim the Borrowers, the Administrative Agent, the Swing Line Lender or any other Lender may have against a Defaulting Lender for its failure to comply with any of the terms or provisions of this Agreement.

     Section 2.19 Joint and Several Liability. Notwithstanding any other provision of this Agreement, each Borrower shall be jointly and severally liable as a primary obligor, and not merely as surety, for any and all Obligations now or hereafter owed by either Borrower to the Administrative Agent, the L/C Issuer and the Lenders, whether voluntary or involuntary and however arising, whether direct or acquired by any Lender by assignment or succession, whether due or not due, absolute or contingent, liquidated or unliquidated, determined or undetermined, and whether either Borrower may be liable individually or jointly with others, or whether recovery upon such Obligations may be or hereafter become barred by any statute of limitations, or whether such Obligations may be or hereafter become otherwise unenforceable (such Obligations, the “Borrowers’ Liabilities”). Moreover, for valuable consideration, each Borrower unconditionally guarantees and promises to pay to Administrative Agent, on behalf of itself and the Lenders, as and when due, in lawful money of the United States, any and all of the Borrowers’ Liabilities. Notwithstanding the foregoing, the liability of each Borrower individually with respect to its Borrowers’ Liabilities shall be limited to an aggregate amount equal to the largest amount that would not render its obligations hereunder subject to avoidance under Section 548 of the United States Bankruptcy Code or any comparable provisions of any applicable state law.

     (a) The guaranty of each Borrower hereunder shall be a continuing guaranty relating to any Borrowers’ Liabilities, including those arising under successive transactions which shall either continue Obligations or from time to time renew any Obligations after such Obligations shall have been satisfied. Any payment by either Borrower shall not reduce the Borrowers’ maximum obligation hereunder. The guaranty of each Borrower hereunder is a guaranty of payment and not of collection.

     (b) The Obligations of each Borrower are independent, and a separate action or actions may be brought and prosecuted against one Borrower whether action is brought against the other Borrower or whether the other Borrower is joined in any such action or actions; and each Borrower waives the benefit of any statute of limitations affecting its liability hereunder.

     (c) Each Borrower agrees that neither the Administrative Agent nor any Lender shall have any responsibility to inquire into the apportionment, allocation or disposition of the proceeds of any Credit Extension as between the Borrowers, and acknowledges that its liability hereunder shall not be reduced or diminished by such Borrower, the Administrative Agent or the other Borrower giving or receiving of notices and other communications, making requests

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for, or effecting conversions or continuations of, Loans or Letters of Credit, executing and delivering certificates, or receiving or allocating disbursements from the Lenders. Each Borrower acknowledges that the handling of any Advances, Letters of Credit or other Obligations made hereunder or under any other Loan Document on a joint borrowing basis as set forth in this Agreement is solely an accommodation to the Borrowers and is done at their request. Each Borrower agrees that no Lender nor the Administrative Agent nor the L/C Issuer shall incur any liability to such Borrower as a result of such accommodation.

     (d) Each Borrower represents and warrants to the Administrative Agent and the Lenders that the request for any joint handling of any Advances, Letters of Credit or other Obligations made hereunder or under any other Loan Document was made because the Borrowers are engaged in related operations and are interdependent. Each Borrower expects to derive benefit, directly or indirectly, from the availability of each Advance, Letter of Credit or other Obligation because the successful operation of each Borrower is dependent on the continued successful performance of the functions of the Borrowers as a group.

     (e) Each Borrower represents and warrants to the Administrative Agent and the Lenders that (i) it has established adequate means of obtaining from the other Borrower on a continuing basis financial and other information pertaining to the business, operations and condition (financial and otherwise) of the other Borrower and its respective property, and (ii) it now is and hereafter will be completely familiar with the business, operations and condition (financial and otherwise) of the other Borrower, and its property. Each Borrower hereby waives and relinquishes any duty on the part of the Administrative Agent to disclose to such Borrower any matter, fact or thing relating to the business, operations or condition (financial or otherwise) of the other Borrower, or the property of the other Borrower, whether now or hereafter known by the Administrative Agent or any Lender during the term of this Agreement.

     (f) Each Borrower expressly waives any right to require the Administrative Agent and the Lenders to marshal assets in favor of either Borrower or any other Person or to proceed against the other Borrower or any other Person or any collateral provided by the other Borrower or any other Person, and agrees that the Administrative Agent and the Lenders may proceed against either Borrower and/or collateral in such order as they shall determine in their sole and absolute discretion. The Administrative Agent and the Lenders may file a separate action or actions against either Borrower, whether action is brought or prosecuted with respect to any other security or against any other Person, or whether any other Person is joined in any such action or actions. Each Borrower agrees that the Administrative Agent and the Lenders and the other Borrower may deal with each other in connection with the Obligations, the Borrowers’ Liabilities or otherwise, or alter any contracts or agreements now or hereafter existing between any of them, in any manner whatsoever, all without in any way altering or affecting the obligations of such Borrower under the Loan Documents.

     (g) Each Borrower expressly waives any and all defenses now or hereafter arising or asserted by reason of (i) any disability or other defense of the other Borrower, any Guarantor or any other Person with respect to any Obligations, (ii) the unenforceability or invalidity as to the other Borrower, any Guarantor or any other Person of the Obligations, (iii) the unenforceability or invalidity of any security or guaranty for the Obligations or the lack of perfection or continuing perfection or failure of priority of any security for the Obligations, (iv) the cessation

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for any cause whatsoever of the liability of either Borrower, any Guarantor or any other Person (other than by reason of the full payment and performance of all Obligations), (v) to the extent permitted by law, any failure of the Administrative Agent and the Lenders to give notice of sale or other disposition to either Borrower, any Guarantor or any other Person or any defect in any notice that may be given in connection with any sale or disposition, (vi) to the extent permitted by law, any failure of the Administrative Agent and the Lenders to comply with applicable laws in connection with the sale or other disposition of any collateral or other security for any Obligation, including without limitation any failure of the Administrative Agent and the Lenders to conduct a commercially reasonable sale or other disposition of any collateral or other security for any obligation, (vii) any act or omission of the Administrative Agent and the Lenders, that directly or indirectly results in or aids the discharge or release of either Borrower or any Guarantor or the Obligations or any other security or guaranty therefor by operation of law or otherwise, (viii) any law which provides that the obligation of a surety or guarantor must neither be larger in amount nor in other respects more burdensome than that of the principal or which reduces a surety’s or guarantor’s obligation in proportion to the principal obligation, (ix) any failure of the Administrative Agent and the Lenders to file or enforce a claim in any bankruptcy or other proceeding with respect to the other Borrower, any Guarantor or any other Person, (x) the election by the Administrative Agent and the Lenders, in any bankruptcy proceeding of the other Borrower or any Guarantor, of the application or non-application of Section 1111(b)(2) of the United States Bankruptcy Code, (xi) any extension of credit or the grant of any Lien under Section 364 of the United States Bankruptcy Code in connection with the bankruptcy of the other Borrower or any Guarantor, (xii) any use of cash collateral under Section 363 of the United States Bankruptcy Code, or (xiii) any agreement or stipulation with the other Borrower or any Guarantor with respect to the provision of adequate protection in any bankruptcy proceeding of any Person.

     (h) Notwithstanding anything to the contrary elsewhere contained herein or in any other Loan Document to which either Borrower is a party, each Borrower hereby waives, so long as any Lender shall have any Commitment hereunder, any Advance or other Obligation hereunder shall remain unpaid or unsatisfied or any Letter of Credit or other L/C Obligation shall remain outstanding, with respect to the other Borrower and its successors and assigns (including any surety) and all rights at law or in equity to subrogation, to reimbursement, to exoneration, to contribution, to setoff or to any other rights that could accrue to a surety against a principal, to a guarantor against a maker, to an accommodation party against the party accommodated, or to a holder or transferee against a maker and which either Borrower may have or hereafter acquire against the other Borrower or any other Person in connection with or as a result of the execution, delivery and/or performance of this Agreement or any other Loan Document. Each Borrower agrees that, so long as any Lender shall have any Commitment hereunder, any Advance or other Obligation hereunder shall remain unpaid or unsatisfied or any Letter of Credit or other L/C Obligation shall remain outstanding, it shall not have or assert any such rights against the other Borrower or its successors and assigns or any other party (including any surety), either directly or as an attempted setoff to any action commenced against either Borrower by the other Borrower (as borrower or in any other capacity) or any other party. Each Borrower hereby acknowledges and agrees that this waiver is intended to benefit the Administrative Agent and the Lenders and shall not limit or otherwise affect Borrowers’ liability hereunder, under any other Loan Document to which either Borrower is a party, or the enforceability hereof or thereof.

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     (i) Any obligations of either Borrower or any Guarantor to the other Borrower, now or hereafter existing, including but not limited to any obligations to a Borrower or a Guarantor as subrogee of the Administrative Agent and the Lenders or resulting from a Borrower’s performance under this guaranty, are hereby subordinated to the Borrowers’ Liabilities. Such obligations of a Borrower or a Guarantor to the other Borrower, if the Administrative Agent so requests, shall be enforced, and performance received by such Borrower or such Guarantor as trustee for the Administrative Agent and the Lenders, and the proceeds thereof shall be paid over to the Administrative Agent for the benefit of the Administrative Agent and the Lenders on account of the Obligations of the Borrowers to the Administrative Agent and the Lenders, but without reducing or affecting in any manner the liability of either Borrower under the other provisions of the guaranty contained herein.

     (j) Each Borrower irrevocably appoints IVZ (the “Borrower Agent”) as its agent for all purposes relevant to this Agreement and each of the other Loan Documents, including (i) the giving and receipt of all notices (including any Notice of Borrowing) and any Issuer Document, (ii) the execution and delivery of all documents, instruments and certificates contemplated herein and all modifications hereto, (iii) the receipt of the proceeds of any Advances made by the Lenders to either Borrower hereunder, and (iv) for receiving service of process. Any acknowledgment, consent, direction, certification or other action which might otherwise be valid or effective only if given or taken by all Borrowers, or by either or each Borrower acting singly, shall be valid and effective if given or taken only by the Borrower Agent, whether or not either Borrower joins therein. Any notice, demand, consent, acknowledgement, direction, certification or other communication received from the Borrower Agent in accordance with the terms of this Agreement or any other Loan Document shall be deemed to have been received from each Borrower (to the extent delivery by such Borrower is required by or appropriate under the terms of this Agreement). Any notice, demand, consent, acknowledgement, direction, certification or other communication required to be delivered by any Lender, the Administrative Agent or the L/C Issuer to either Borrower, or the Borrowers collectively, shall be deemed to have been so delivered if delivered to the Borrower Agent, and any proceeds of any Advances made by the Lenders to be made available to either Borrower shall be deemed to have been made available to such Borrower if made available to the Borrower Agent.

     (k) Notwithstanding anything to the contrary contained herein, to the extent this Agreement requires payment of an amount by “each Borrower”, “the Borrowers” or “a Borrower”, such payment shall be made by the Borrowers, jointly and severally, without duplication.

ARTICLE III

CONDITIONS TO EFFECTIVENESS AND LENDING

     Section 3.01 Conditions Precedent to Effectiveness. This Agreement shall become effective on the date (the “Effective Date”) that the following conditions precedent have been satisfied:

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     (a) The Borrowers shall have paid all fees and expenses of the Administrative Agent, the L/C Issuer and the Lenders payable hereunder and accrued as of the Effective Date (including the accrued fees and expenses of counsel to the Administrative Agent).

     (b) On the Effective Date, the following statements shall be true and the Administrative Agent shall have received for the account of each Lender a certificate signed by a duly authorized officer of the Borrower Agent, dated the Effective Date, stating that:

     (i) The representations and warranties contained in Section 4.01 are correct in all material respects on and as of the Effective Date, and

     (ii) No event has occurred and is continuing that constitutes a Default.

     (c) The Administrative Agent shall have received on or before the Effective Date the following, each dated such day, in form and substance satisfactory to the Administrative Agent and (except for the Notes) in sufficient copies for each Lender:

     (i) Executed counterparts of this Agreement from all parties hereto.

     (ii) If requested by a Lender, a Note payable to the order of such Lender, in a principal amount equal to each such Lender’s Commitment.

     (iii) Certified copies of the resolutions of the Board of Directors (or committee thereof) of each Borrower and each other Loan Party approving this Agreement, the Notes and each Guaranty to which it is or is to be a party, and of all documents evidencing other necessary corporate action and governmental and other third party approvals and consents, if any, with respect to this Agreement, the Notes and each Guaranty.

     (iv) A certificate of the Director, Secretary or an Assistant Secretary of each Loan Party certifying the names and true signatures of the officers of such Loan Party authorized to sign the Loan Documents to which it is a party and the other documents to be delivered hereunder.

     (v) A Subsidiary Guaranty executed by each Subsidiary Guarantor, and the Parent Guaranty duly executed by the Parent.

     (vi) An opinion of Alston & Bird LLP, counsel for the Borrowers and certain other Loan Parties, in substantially the form of Exhibit E attached hereto.

     (vii) An opinion of Linklaters, English counsel for IHCL, in substantially the form of Exhibit F attached hereto and to such other matters as any Lender through the Administrative Agent may reasonably request.

     (viii) An opinion of APPLEBY, Bermuda counsel for the Parent, in substantially the form of Exhibit G attached hereto and to such other matters as any Lender through the Administrative Agent may reasonably request.

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     (ix) An acceptance of the appointment of the Process Agent (as such term is defined in Section 8.12) for each of the Parent and IHCL.

     (x) A certificate signed by the chief financial officer of IHCL certifying the current Debt Ratings.

     (d) All amounts outstanding, if any, under the Existing Credit Agreement shall have been paid, and the Existing Credit Agreement shall have been terminated (including termination of all commitments thereunder) in writing satisfactory to the Administrative Agent.

     (e) The Administrative Agent shall have received (i) the Consolidated financial statements of the Parent and its Subsidiaries for the fiscal quarter ended March 31, 2010 and (ii) the financial projections of the Parent and its Subsidiaries on a Consolidated basis for the fiscal years ended 2010, 2011, 2012, 2013 and 2014, in each case, in form and substance reasonably satisfactory to the Administrative Agent.

     Section 3.02 Conditions Precedent to Each Borrowing and Each L/C Credit Extension. The obligation of each Lender to make an Advance on the occasion of each Borrowing and the obligation of the L/C Issuer to make an L/C Credit Extension shall be subject to the conditions precedent that the Effective Date shall have occurred and on the date of such Borrowing or date of such L/C Credit Extension the following statements shall be true (and each of the giving of the applicable Notice of Borrowing or Letter of Credit Application and the acceptance by the Borrowers of the proceeds of such Borrowing or the issuance of such Letter of Credit, as applicable, shall constitute a representation and warranty by the Borrowers that on the date of such Borrowing or the date of such L/C Credit Extension, such statements are true):

     (a) the representations and warranties contained in Section 4.01 (excluding, in the case of Borrowings, clauses (g) and (i)(i) of Section 4.01) are correct in all material respects on and as of the date of such date, before and after giving effect to such Borrowing or such Letter of Credit Extension and to the application of the proceeds therefrom, as though made on and as of such date except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been correct in all material respects on and as of such earlier date (other than in the case of the representations and warranties made in Section 4.01(d), which shall be correct in all material respects on and as of such date of Borrowing or date of L/C Credit Extension as though made on and as of such date, without regard to any earlier date referenced therein);

     (b) no event has occurred and is continuing, or would result from such Borrowing or from the application of the proceeds therefrom or such L/C Credit Extension that constitutes a Default; and

     (c) the Administrative Agent and, if applicable, the L/C Issuer or the Swing Line Lender shall have received a Notice of Borrowing or Letter of Credit Application, as applicable, in accordance with the requirements hereof.

     Section 3.03 Determinations Under Section 3.01. For purposes of determining compliance with the conditions specified in Section 3.01, each Lender shall be deemed to have

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consented to, approved or accepted or to be satisfied with each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to the Lenders unless an officer of the Administrative Agent responsible for the transactions contemplated by this Agreement shall have received notice from such Lender prior to the date that the Borrowers, by notice to the Lenders, designates as the proposed Effective Date, specifying its objection thereto. The Administrative Agent shall promptly notify the Lenders and the Borrowers of the occurrence of the Effective Date.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

     Section 4.01 Representations and Warranties of the Parent and the Borrowers. Each of the Parent and each Borrower represents and warrants as follows:

     (a) Each Loan Party (i) is duly organized or formed, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, (ii) is duly qualified and in good standing in each other jurisdiction in which it owns or leases property or in which the conduct of its business requires it to so qualify or be licensed except where the failure to so qualify or be licensed is not reasonably likely to have a Material Adverse Effect and (iii) has all requisite power and authority (including, without limitation, all governmental licenses, permits and other approvals) to own or lease and operate its properties and to carry on its business as now conducted and as proposed to be conducted except where failure to possess such power or authority is not reasonably likely to have a Material Adverse Effect.

     (b) Set forth on Schedule 4.01(b) hereto is a complete and accurate list of all Subsidiaries of each Loan Party as of the Effective Date, showing as of such date (as to each such Subsidiary) the jurisdiction of its incorporation or organization and identifying, as of the Effective Date, each Subsidiary that is a Material Subsidiary. All of the outstanding capital stock of all such Subsidiaries owned by a Loan Party or a Subsidiary of a Loan Party has been validly issued, is fully paid and non-assessable and, other than directors’ qualifying shares, is owned by such Loan Party or one or more of its Subsidiaries free and clear of all Liens (other than Permitted Liens). Each such Subsidiary (i) is duly organized or formed, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, (ii) is duly qualified and in good standing in each other jurisdiction in which it owns or leases property or in which the conduct of its business requires it to so qualify or be licensed except where the failure to so qualify or be licensed is not reasonably likely to have a Material Adverse Effect and (iii) has all requisite power and authority (including, without limitation, all governmental licenses, permits and other approvals) to own or lease and operate its properties and to carry on its business as now conducted and as proposed to be conducted except where failure to possess such power or authority is not reasonably likely to have a Material Adverse Effect.

     (c) The execution, delivery and performance by each Loan Party of this Agreement, the Notes and each other Loan Document to which it is or is to be a party, and the incurrence of the obligations provided for herein and therein, are within such Loan Party’s corporate powers, have been duly authorized by all necessary corporate action, and do not (i) contravene such Loan Party’s charter or bylaws, (ii) violate any law (including, without limitation, the Exchange Act),

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rule, regulation (including, without limitation, Regulations T, U and X of the Board of Governors of the Federal Reserve System), order, writ, judgment, injunction, decree, determination or award, (iii) conflict with or result in the breach of, or constitute a default under, any contract, loan agreement, indenture, mortgage, deed of trust, lease or other instrument binding on or affecting any Loan Party, any of its Subsidiaries or any of their properties or (iv) except as otherwise provided for under this Agreement, result in or require the creation or imposition of any Lien upon or with respect to any of the properties of any Loan Party or any of its Subsidiaries. No Loan Party or any of its Subsidiaries is in violation of any such law, rule, regulation, order, writ, judgment, injunction, decree, determination or award or in breach of any such contract, loan agreement, indenture, mortgage, deed of trust, lease or other instrument, the violation or breach of which is reasonably likely to have a Material Adverse Effect.

     (d) No authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body or any other third party is required for (i) the due execution, delivery, or performance by any Loan Party of this Agreement, the Notes or any other Loan Document to which it is or is to be a party, or (ii) the exercise by the Administrative Agent or any Lender of its rights under the Loan Documents as of Effective Date, except for the authorizations, approvals, actions, notices and filings listed on Schedule 4.01(d), all of which have been duly obtained, taken, given or made and are in full force and effect.

     (e) This Agreement has been, and each of the Notes and each other Loan Document when delivered hereunder will have been, duly executed and delivered by each Loan Party party thereto. This Agreement is, and each of the Notes and each other Loan Document when delivered hereunder will be, the legal, valid and binding obligation of each Loan Party party thereto, enforceable against such Loan Party in accordance with its terms except as the same may be limited by bankruptcy, insolvency and other similar laws affecting the rights of creditors generally and the availability of equitable remedies for the enforcement of certain obligations contained herein or therein and as may be limited by equitable principles generally.

     (f) The Consolidated and consolidating balance sheets of the Parent and its Subsidiaries as at December 31, 2009, and the related Consolidated and consolidating statements of income and Consolidated statement of cash flows of the Parent and its Subsidiaries for the fiscal year then ended, and the Consolidated and consolidating balance sheets of the Parent and its Subsidiaries as at March 31, 2010, and the related Consolidated and consolidating statements of income and Consolidated statement of cash flows of the Parent and its Subsidiaries for the three months then ended, duly certified by the chief financial officer of the Parent, copies of which have been furnished to each Lender in accordance with Section 5.01(j) of the Existing Credit Agreement, fairly present, subject, in the case of said balance sheets as at March 31, 2010, and said statements of income and cash flows for the three months then ended, to year-end audit adjustments, the Consolidated and consolidating financial condition of the Parent and its Subsidiaries as at such dates and the Consolidated and consolidating results of the operations of the Parent and its Subsidiaries for the periods ended on such dates, all in accordance with GAAP applied on a consistent basis.

     (g) Since December 31, 2009, there has been no Material Adverse Change.

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     (h) No written information, exhibit or report furnished by any Loan Party to any Agent or any Lender in connection with the negotiation of the Loan Documents or pursuant to the terms of the Loan Documents contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements made therein not misleading in light of the circumstances under which they were made.

     (i) There is no action, suit, investigation, litigation or proceeding affecting any Loan Party or, to the knowledge of the Loan Parties, after commercially reasonable diligence, any of its Subsidiaries pending or, to the knowledge of the Loan Parties, after commercially reasonable diligence, threatened before any court, governmental agency or arbitrator that (i) would be reasonably likely to have a Material Adverse Effect as of the Effective Date (other than the matters described on Schedule 4.01(i) hereto (the “Disclosed Litigation”)) and there has been no change or other development in the Disclosed Litigation which is reasonably likely to result in a Material Adverse Change, or (ii) purports to affect the legality, validity or enforceability of this Agreement, any Note or any other Loan Document or the consummation of the transactions contemplated hereby.

     (j) Following application of the proceeds of each Advance, not more than 25 percent of the value of the assets (of either Borrower, of the Borrowers collectively, or of the Borrowers and their Subsidiaries on a Consolidated basis) subject to the provisions of Section 5.02(a) or 5.02(c) or subject to any restriction contained in any agreement or instrument between a Borrower and any Lender or any Affiliate of any Lender relating to Debt and within the scope of Section 6.01(e) will be margin stock (within the meaning of Regulation U issued by the Board of Governors of the Federal Reserve System). Neither the making of any Advance nor the use of proceeds thereof will violate or be inconsistent with the provisions of Regulations T, U or X of the Board of Governors of the Federal Reserve System.

     (k) No ERISA Event has occurred or is reasonably expected to occur with respect to any Plan that has resulted in or is reasonably expected to result in a Material Adverse Effect.

     (l) No Plan is “at risk” as defined in Section 430(i)(4) of the Internal Revenue Code.

     (m) Neither any Loan Party nor any ERISA Affiliate has incurred or is reasonably expected to incur (i) any liability under Section 4064 or 4069 of ERISA or (ii) any Withdrawal Liability to any Multiemployer Plan that in either event has resulted or would be reasonably likely to result in a Material Adverse Effect.

     (n) Neither any Loan Party nor any ERISA Affiliate has been notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is in reorganization or has been terminated, within the meaning of Title IV of ERISA, and, to the best knowledge of any Loan Party or any ERISA Affiliate, no such Multiemployer Plan is reasonably expected to be in reorganization or to be terminated, within the meaning of Title IV of ERISA.

     (o) Each Loan Party and each of its Subsidiaries has filed, has caused to be filed or has been included in all tax returns (Federal, state, local and foreign) required to be filed and has paid all taxes shown thereon to be due, together with applicable interest and penalties, except (i) where failure to file such tax returns or pay such taxes would not reasonably be expected to have

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a Material Adverse Effect or (ii) for such taxes that are being contested in good faith by appropriate proceedings for which adequate reserves have been provided in accordance with GAAP.

     (p) Neither any Loan Party nor any of its Subsidiaries is an “investment company”, or a company “controlled by” an “investment company”, as such terms are defined in the Investment Company Act of 1940, as amended (except that for purposes of this sentence, the term “Subsidiary” shall not include any “investment company” a majority of which is owned by a Loan Party or one of its Affiliates as a result of the initial seed capital contributed by such Loan Party or such Affiliate to such “investment company” for its shares). Neither the making of any Advances nor the application of the proceeds or repayment thereof by the Borrower, nor the consummation of the other transactions contemplated hereby, will violate any provision of such Act or any rule, regulation or order of the Securities and Exchange Commission thereunder.

     (q) Each Subsidiary of the Parent engaged in advisory or management activities, if any, is duly registered as an investment adviser as and to the extent required under the Investment Advisers Act of 1940, as amended, and the rules and regulations promulgated thereunder. Each Subsidiary of the Parent engaged in the broker-dealer business, if any, is duly registered as a broker-dealer as and to the extent required under the Exchange Act, as amended, and the rules and regulations promulgated thereunder and, as and to the extent required is a member in good standing of the Financial Institutions Regulatory Authority, Inc.

     (r) As of the Effective Date, neither the Parent nor any of its Subsidiaries is in default and no waiver of default is in effect with respect to the payment of any principal or interest of any Existing Debt for borrowed money.

     (s) Each Loan Party is, individually and together with its Subsidiaries, Solvent.

ARTICLE V

COVENANTS OF THE BORROWER

     Section 5.01 Affirmative Covenants. So long as any Advance shall remain unpaid or any Lender shall have any Commitment hereunder or any Letter of Credit or other L/C Obligation shall remain outstanding (except any Letters of Credit or L/C Obligations that remain outstanding after the Commitments have been terminated for which Cash Collateral has been provided), each of the Parent and each Borrower will:

     (a) Compliance with Laws, Etc. Comply, and cause each of its Subsidiaries to comply, in all material respects, with all applicable laws, rules, regulations and orders, such compliance to include (to the extent applicable), without limitation, compliance with the Investment Company Act of 1940, Investment Advisers Act of 1940, as amended, ERISA and Environmental Laws, except where the failure to do so would not, and would not be reasonably expected to, have a Material Adverse Effect.

     (b) Payment of Taxes, Etc. Pay and discharge, and cause each of its Subsidiaries to pay and discharge, before the same shall become delinquent, all taxes, assessments, claims and governmental charges or levies imposed upon it or upon its property, except to the extent that

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any failure to do so would not, and would not be reasonably expected to, have a Material Adverse Effect; provided, however, that neither the Parent nor any of its Subsidiaries shall be required to pay or discharge any such tax, assessment, claim or charge that is being contested in good faith and by proper proceedings and as to which appropriate reserves are being maintained.

     (c) Preservation of Corporate Existence, Etc. Preserve and maintain, and cause each of its Subsidiaries to preserve and maintain, its existence, legal structure, legal name, rights (charter and statutory), permits, licenses, approvals, registrations, privileges and franchises; provided, however, the Parent and its Subsidiaries may consummate any merger or consolidation permitted under Section 5.02(b); and provided further that (i) no Subsidiary of the Parent other than a Loan Party shall be required to maintain its existence and (ii) neither the Parent nor any of its Subsidiaries shall be required to preserve or maintain any legal structure, right, permit, license, approval, registration, privilege or franchise, unless, in any such case with respect to (i) or (ii) above, the failure to do so would, or would be reasonably expected to, (A) have a Material Adverse Effect or (B) release any Loan Party from its obligations under any Loan Document.

     (d) Visitation Rights. At any reasonable time and from time to time, permit the Administrative Agent or any of the Lenders or any agents or representatives thereof, to examine and make copies of and abstracts from the records and books of account of, and visit the properties of, the Parent and any of its Subsidiaries, and to discuss the affairs, finances and accounts of the Parent and any of its Subsidiaries with any of their officers or directors and with their independent certified public accountants, all of which shall be at the expense of the Borrowers upon and during the continuance of an Event of Default.

     (e) Keeping of Books. Keep, and cause each of its Significant Subsidiaries to keep, proper books of record and account, in which full and correct entries shall be made of all financial transactions and the assets and business of the Parent and each such Significant Subsidiary in accordance with GAAP applicable to such Person in effect from time to time.

     (f) New Material Subsidiaries. Promptly and in any event within 30 days following the request of the Required Lenders made after either (i) the organization or acquisition of any new Material Subsidiary or (ii) the delivery of audited annual financial statements pursuant to Section 5.01(h) that indicate that a Subsidiary of the Parent that is not at such time a Guarantor is a Material Subsidiary, cause such Material Subsidiary to execute and deliver a joinder agreement to the Subsidiary Guaranty in form and substance reasonably satisfactory to the Administrative Agent, together with such documents as the Required Lenders may request evidencing corporate action taken to authorize such execution and delivery and the incumbency and signatures of officers of such Material Subsidiary, provided that a Material Subsidiary shall not be required to become a Guarantor if (A) a guaranty by such Material Subsidiary would result in materially adverse tax consequences to the Parent and its Subsidiaries or shareholders of the Parent or (B) a guaranty by such Material Subsidiary is prohibited or limited by regulatory requirements or applicable law.

     (g) Use of Proceeds. Use the proceeds of the Advances solely as provided in Section 2.17 and otherwise in accordance with the terms hereof.

     (h) Reporting Requirements. Furnish to the Administrative Agent and the Lenders:

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     (i) as soon as available and in any event within 45 days after the end of each of the first three quarters of each fiscal year of the Parent, a copy of the Form 10-Q filed with the Securities and Exchange Commission for such quarter for the Parent and its Subsidiaries, containing a Consolidated and, consistent with past practice, consolidating balance sheets of the Parent and its Subsidiaries as of the end of such quarter and Consolidated and, consistent with past practice, consolidating statements of income and Consolidated cash flows of the Parent and its Subsidiaries for the period commencing at the end of the previous fiscal year and ending with the end of such quarter, duly certified (subject to year-end audit adjustments) by the chief financial officer of the Parent as having been prepared in accordance with GAAP and a Compliance Certificate of the chief financial officer of the Parent as to compliance with the terms of this Agreement and setting forth in reasonable detail the calculations necessary to demonstrate compliance with Sections 5.03(a) and (b);

     (ii) as soon as available and in any event within 90 days after the end of each fiscal year of the Parent, a copy of the Form 10-K filed with the Securities and Exchange Commission for such year for the Parent and its Subsidiaries, containing a Consolidated balance sheet of the Parent and its Subsidiaries and, consistent with past practice, consolidating balance sheets of the Parent and its Subsidiaries as of the end of such fiscal year and a Consolidated and, consistent with past practice, a consolidating statement of income and Consolidated cash flows of the Parent and its Subsidiaries for such fiscal year, in each case accompanied by (i) a report and opinion as to such Consolidated financial statements by Ernst & Young LLP or other independent public accountants approved by the audit committee of the Parent’s board of directors and, if other than Deloitte & Touche LLP, KPMG LLP, or PricewaterhouseCoopers LLP, reasonably acceptable to the Required Lenders (the “Auditor”), which report and opinion shall be prepared in accordance with applicable audit standards, and which report and opinion shall not be subject to any “going concern” or like qualification or exception or any qualification or exception as to the scope of such audit, and (ii) a Compliance Certificate of the chief financial officer of the Parent as to compliance with the terms of this Agreement and setting forth in reasonable detail the calculations necessary to demonstrate compliance with Sections 5.03(a) and (b);

     (iii) as soon as possible and in any event within five days after the occurrence of each Default continuing on the date of such statement, a statement of the chief financial officer of the Parent setting forth details of such Default and the action that the Parent has taken and proposes to take with respect thereto;

     (iv) promptly after the commencement thereof, notice of all actions and proceedings before any court, governmental agency or arbitrator affecting the Parent or any of its Subsidiaries of the type described in Section 4.01(i);

     (v) (A) promptly and in any event within 20 days after any Loan Party or any ERISA Affiliate knows or has reason to know that (1) any ERISA Event has occurred which could result in a material liability of any Loan Party or any ERISA Affiliate, or (2) any Loan Party or any ERISA Affiliate has incurred or is reasonably expected to incur a material liability under Section 4064 or 4069 of ERISA, a statement of the chief financial

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officer of the Borrowers describing such ERISA Event and the circumstances giving rise to, and the amount of such liability and the action, if any, that such Loan Party or such ERISA Affiliate has taken and proposes to take with respect thereto and (B) within two Business Days of the date any records, documents or other information must be furnished to the PBGC with respect to any Plan pursuant to Section 4010 of ERISA, a copy of such records, documents and information;

     (vi) promptly and in any event within two Business Days after receipt thereof by any Loan Party or any ERISA Affiliate, copies of each notice from the PBGC stating its intention to terminate any Plan or to have a trustee appointed to administer any Plan;

     (vii) promptly upon request from the Administrative Agent or any Lender, copies of each Schedule SB (Single Employer Defined Benefit Plan Actuarial Information) to the annual report (Form 5500 Series) required to be filed with respect to each Plan whose funding target attainment percentage (as defined in Section 302(d)(2) of ERISA) is less than 100%;

     (viii) promptly and in any event within 20 days after receipt thereof by any Loan Party or any ERISA Affiliate from the sponsor of a Multiemployer Plan, copies of each notice concerning (A) the imposition on any Loan Party or any ERISA Affiliate of Withdrawal Liability in a material amount by any such Multiemployer Plan, (B) the reorganization or termination, within the meaning of Title IV of ERISA, of any such Multiemployer Plan or (C) the amount of liability incurred, or that may be incurred, by any Loan Party or any ERISA Affiliate in connection with any event described in clause (A) or (B);

     (ix) promptly and in any event within five Business Days after the organization or acquisition of any Material Subsidiary, notice of such event;

     (x) promptly after the same are available, copies of each annual report, proxy or financial statement or other report or communication sent to the stockholders of the Parent, and copies of all annual, regular, periodic and special reports and registration statements which the Parent may file or be required to file with the SEC under Section 13 or 15(d) of the Exchange Act, and not otherwise required to be delivered to the Administrative Agent pursuant hereto;

     (xi) promptly, of any announcement by Moody’s or S&P of any change in a Debt Rating or outlook; and

     (xii) such other information respecting the Parent or any of its Subsidiaries as the Administrative Agent or any Lender acting through the Administrative Agent may from time to time reasonably request.

     Documents required to be delivered pursuant to Section 5.01(h)(i) or (ii) may be delivered electronically by e-mailing such information to an e-mail address of the Administrative Agent as specified to the Borrowers by the Administrative Agent from time to time. The Administrative Agent shall promptly post such documents on the Borrowers’ behalf onto the Platform. Such information shall be deemed to have been delivered to the Lenders on the date

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such documents are posted to the Platform. In addition, such documents may be delivered by posting the documents on the Parent’s website on the Internet, and if so delivered, shall be deemed to have been delivered on the date on which the Parent posts such documents, or provides a link thereto on the Parent’s website on the Internet at the website address listed on Schedule 8.02; provided that the Parent shall notify the Administrative Agent (by facsimile or electronic mail) of the posting of any such documents and, if requested by the Administrative Agent, provide to the Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such documents. Notwithstanding anything contained herein, in every instance the Borrowers shall be required to provide copies of the Compliance Certificate required by Section 5.01(h)(i) and (ii) to the Administrative Agent by facsimile or electronic mail. Except for such Compliance Certificate, the Administrative Agent shall have no obligation to request the delivery or to maintain copies of the documents referred to above, and in any event shall have no responsibility to monitor compliance by the Parent with any such request for delivery, and each Lender shall be solely responsible for requesting delivery to it or maintaining its copies of such documents.

     The Parent and the Borrowers hereby acknowledge that (a) the Administrative Agent and/or the Arrangers will make available to the Lenders and the L/C Issuer information provided by or on behalf of the Parent and/or the Borrowers hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on IntraLinks or another similar electronic system (the “Platform”) and (b) certain of the Lenders may be “public-side” Lenders (i.e., Lenders that do not wish to receive material non-public information with respect to either Borrower or its securities) (each, a “Public Lender”). Each of the Parent and the Borrowers hereby agree that (w) all Borrower Materials that are to be made available to Public Lenders shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the first page thereof; (x) by marking Borrower Materials “PUBLIC”, the Parent and the Borrowers shall be deemed to have authorized the Administrative Agent, each Arranger, the L/C Issuer and the Lenders to treat such Borrower Materials as not containing any material non-public information with respect to the Parent and each Borrowers or its securities for purposes of United States Federal and state securities laws (provided, however, that to the extent such Borrower Materials constitute Information, they shall be treated as set forth in Section 8.07); (y) all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public Investor”; and (z) the Administrative Agent and each Arranger shall be entitled to treat the Borrower Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated “Public Investor.”

     Section 5.02 Negative Covenants. So long as any Advance shall remain unpaid or any Lender shall have any Commitment hereunder or any Letter of Credit or other L/C Obligation shall remain outstanding (except for any Letters of Credit or L/C Obligations that remain outstanding after the Commitments have been terminated for which Cash Collateral has been provided), neither the Parent nor either Borrower will at any time:

     (a) Liens, Etc. Create, incur, assume or suffer to exist, or permit any of its Subsidiaries to create, incur, assume or suffer to exist, any Lien on or with respect to any of its properties of any character (including, without limitation, accounts) whether now owned or hereafter acquired, or assign, or permit any of its Subsidiaries to assign, any accounts or other

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right to receive income, excluding, however, from the operation of the foregoing restrictions the following:

     (i) Permitted Liens;

     (ii) Liens granted pursuant to any Loan Document;

     (iii) Liens on deposit accounts of the Parent and its Subsidiaries in respect of their cash pooling operations;

     (iv) purchase money Liens upon or in real property or equipment acquired or held by the Parent or any of its Subsidiaries in the ordinary course of business to secure the purchase price of such property or equipment or to secure Debt incurred solely for the purpose of financing the acquisition of any such property or equipment, or Liens existing on any such property or equipment at the time of acquisition (other than any such Liens created in contemplation of such acquisition that were not incurred to finance the acquisition of such property); provided, however, that no such Lien shall extend to or cover any properties of any character other than the property or equipment being acquired, and no such extension, renewal or replacement shall extend to or cover any property not theretofore subject to the Lien being extended, renewed or replaced; and provided further that the aggregate principal amount of the Debt secured by Liens permitted by this clause (iv) and clause (v) below shall not exceed $100,000,000 at any time outstanding;

     (v) Liens on property of a Person existing at the time such Person is merged into or consolidated with the Parent or any Subsidiary of the Parent or becomes a Subsidiary of the Parent; provided that such Liens were not created in contemplation of such merger, consolidation or investment and do not extend to any assets other than those of the Person merged into or consolidated with the Parent or such Subsidiary or acquired by the Parent or such Subsidiary; provided, further, that the aggregate principal amount of the Debt secured by Liens permitted by this clause (v) and clause (iv) above shall not exceed $100,000,000 at any time outstanding;

     (vi) Liens arising pursuant to one or more securitization programs permitted pursuant to Section 5.02(c)(ii);

     (vii) the replacement, extension or renewal of any Lien permitted by clauses (iv) and (v) above upon or in the same property theretofore subject thereto or the replacement, extension or renewal (without increase in the amount or addition of any direct or contingent obligor) of the Debt secured thereby;

     (viii) Liens existing as of the Effective Date as described on Schedule 5.02(a);

     (ix) Liens which are floating charges under English law in the form of an “industry standard” granted by Invesco Perpetual Life Limited (“IPLL”) on its revolving business assets (without attaching to any particular asset until the floating charge crystallises on insolvency events which will result in steps being taken to make payment of a dividend to creditors or where the reinsurance creditor reasonably considers this may

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happen) to reinsurance creditors to support the obligations of IPLL thereto under reinsurance contracts and limited in the amount secured to the amount which would have been recoverable had the secured amount been an unsecured debt owed to a direct policy holder of IPLL;

     (x) Liens to secure Subsidiary Non-Recourse Debt, provided that no such Lien shall extend to or cover any properties or assets other than the property or assets being acquired with such Subsidiary Non-Recourse Debt and proceeds thereof; and

     (xi) Liens on assets sold and leased back pursuant to sale and leaseback transactions permitted by Section 5.02(c)(vii).

     (b) Mergers, Etc. Merge into or consolidate with any Person or permit any Person to merge into it, or permit any of its Subsidiaries to do so, except that

     (i) Parent or any Subsidiary of the Parent may merge or consolidate with any other Subsidiary of the Parent;

     (ii) any Subsidiary of the Parent may merge with any other Person, provided that such merger does not result in the loss by the Parent in any fiscal year of business operations or assets which, when aggregated with all other such mergers and all dispositions of assets permitted by Section 5.02(c)(iii) (taking into account the proviso in such Section 5.02(c)(iii)) for such fiscal year, generated more than twenty percent (20%) of the Consolidated operating income of the Parent during the immediately preceding fiscal year of the Parent;

provided, however, that in each case, immediately after giving effect thereto, (A) no event shall occur and be continuing that constitutes a Default, (B) if a Borrower is party to such merger or consolidation, then a Borrower is the surviving corporation or company, as the case may be, and (C) in the case of any merger or consolidation to which a Guarantor, but not a Borrower, is a party, the surviving corporation or company, as the case may be, is a Guarantor;.

     (c) Sales, Etc. of Assets. Sell, lease (as lessor), transfer or otherwise dispose of, or permit any of its Subsidiaries to sell, lease (as lessor), transfer or otherwise dispose of, any assets, or grant any option or other right to purchase, lease or otherwise acquire any assets, except:

     (i) in a transaction authorized by subsection (b) of this Section;

     (ii) the sale or other disposition to a third-party investor by the Parent or any of its Subsidiaries of its rights to receive distribution fees and contingent deferred sales charges pursuant to a securitization program;

     (iii) the Parent and its Subsidiaries may, during any fiscal year of the Parent (the “Test Year”), sell, lease, transfer or otherwise dispose of assets (including equity securities owned by such Persons) which, when aggregated with all other such dispositions and all mergers permitted by Section 5.02(b)(ii) (where such merger resulted in the loss by the Parent or a Subsidiary, as applicable, of business operations or assets)

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for such Test Year, generated up to, but not exceeding, twenty percent (20%) of the Consolidated operating income of the Parent during the immediately preceding fiscal year of the Parent; provided, that any determination of compliance with this clause (iii) shall take into account contributions to Consolidated operating income as measured on a pro forma basis for such immediately preceding fiscal year resulting from any acquisition by the Parent or its Subsidiaries of operating assets (or acquisition of equity securities of any Person holding such assets) that occurred during such Test Year or that is anticipated to occur within the twelve (12) month period immediately following the date on which the Parent or its Subsidiary, as applicable, shall have entered into a definitive agreement for such acquisition if such definitive agreement is entered into during such Test Year.

     (iv) any Subsidiary of the Parent (other than a Loan Party) may sell, lease, transfer or otherwise dispose of up to (and including) all or substantially all of its assets to the Parent or any other Subsidiary of the Parent;

     (v) any Guarantor may sell, lease, transfer or otherwise dispose of all or substantially all of its assets to any Loan Party or any other Subsidiary of the Parent; provided, that, in the case of any such sale, lease, transfer or other disposition to a Subsidiary that is not a Loan Party, such transferee Subsidiary shall execute and deliver to the Administrative Agent a joinder agreement to the Subsidiary Guaranty, in form and substance reasonably satisfactory to the Administrative Agent, prior to such sale, lease, transfer or other disposition;

     (vi) either Borrower may sell, lease, transfer or otherwise dispose of all or substantially all of its assets to the other Borrower;

     (vii) sales or other dispositions of obsolete equipment and furniture;

     (viii) sales of assets pursuant to sale and leaseback transactions; and

     (ix) the sale, transfer or other disposition of cash, cash equivalents and securities in the ordinary course of business.

     (d) Change in Nature of Business. Make, or permit any of its Significant Subsidiaries to make, any material change in the nature of its business as carried on at the date hereof; provided, however, that nothing contained herein shall restrict or limit such Persons from engaging in any business (including by way of investment or acquisition) that is reasonably related, complimentary or ancillary to the businesses of the Parent and its Subsidiaries carried on as of the date hereof.

     (e) Accounting Changes. Make or permit, or permit any of its Significant Subsidiaries to make or permit, any material change in accounting policies or reporting practices, except (i) as required by Securities Laws, the Securities Exchange Commission or GAAP applicable to the Parent or such Significant Subsidiary, (ii) with respect to any Significant Subsidiary, to adopt GAAP, or (iii) any change by a Significant Subsidiary to International Financial Reporting Standards as may be required by applicable regulatory authorities.

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     (f) Transactions with Affiliates. Conduct, or permit any of its Subsidiaries to conduct, transactions with any of their Affiliates except in the ordinary course of business of and pursuant to the reasonable requirements of the Parent’s, such Borrower’s or such Subsidiary’s business and upon fair and reasonable terms that are no less favorable to the Parent, such Borrower or such Subsidiary, as the case may be, than those which would be obtained in a comparable arm’s-length transaction with a Person not an Affiliate; provided that the foregoing restrictions shall not apply to

     (i) any transaction (A) between or among the Parent and its Subsidiaries not involving any other Affiliates, (B) with any Special Purpose Subsidiary, and (C) between the Parent or any of its Subsidiaries and their respective employees to make loans to such employees for purposes of exercising stock options of such employees and paying tax liabilities of such employees associated therewith, provided that the total of all such loans shall not exceed $25,000,000 in an aggregate principal amount at any one time outstanding; and

     (ii) transactions between the Parent or any Subsidiary or other “Investment Company” sponsored by the Parent or any Subsidiary or for which the Parent or any Subsidiary provides advisory, administrative, supervisory, management, consulting, underwriting or similar services, that are otherwise permissible under the Investment Company Act of 1940, the Investment Advisers Act of 1940, the applicable management or underwriting contract, and any other applicable law, rule, regulation or order.

     (g) Non-Guarantor Subsidiary Debt. Permit its Subsidiaries, other than a Borrower and Subsidiaries that are Guarantors, collectively to incur Adjusted Debt in excess of $200,000,000 in aggregate principal amount at any one time outstanding; provided, however, that the foregoing restriction shall not apply to any (i) Adjusted Debt of a Subsidiary (including any Person that will be or become a Subsidiary) of the Parent (including any refinancings, amendments or extensions of such Adjusted Debt that do not increase, or provide for the increase of, the aggregate principal amount of such Adjusted Debt) that is incurred or assumed in connection with (A) a transaction that is permitted pursuant to Section 5.02(b) or (B) in connection with the purchase or acquisition of all of the capital stock of, or all or substantially all of the assets of, another Person, (ii) Subsidiary Non-Recourse Debt, and (iii) letters of credit entered into pursuant to and in accordance with regulatory requirements in the ordinary course of such Subsidiary’s unit investment trust business.

     Section 5.03 Financial Covenants. So long as any Advance shall remain unpaid or any Lender shall have any Commitment hereunder or any Letter of Credit or other L/C Obligation shall remain outstanding, the Parent will:

     (a) Debt/EBITDA Ratio. Maintain at the end of each fiscal quarter of the Parent a Debt/EBITDA Ratio not greater than the ratio set forth below opposite such fiscal quarter:

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	Maximum
	Debt/EBITDA
Fiscal Quarters Ending	Ratio
Effective Date through December 31, 2011	3.25 to 1.00
Each fiscal quarter ending thereafter	3.00 to 1.00

     (b) Coverage Ratio. Maintain at the end of each fiscal quarter of the Parent a ratio of EBITDA (excluding for purpose of this calculation of EBITDA only that portion of EBITDA attributable to the net income, expenses, losses, charges and gains of each Special Purpose Subsidiary) for the four consecutive fiscal quarters of the Parent ended on or immediately prior to the date of determination to interest payable on, and amortization of debt discount in respect of, Adjusted Debt (excluding from Adjusted Debt for purposes of this Section 5.03(b) (i) Subsidiary Non-Recourse Debt and (ii) so long as the Parent and its Subsidiaries own 100% of the Office Equipment Sale and Leaseback Bonds, liabilities with respect to the Office Equipment Sale and Leaseback Lease, in each case to the extent otherwise included in Adjusted Debt) for such period, of not less than 4.00 to 1.00.

ARTICLE VI

EVENTS OF DEFAULT

     Section 6.01 Events of Default. If any of the following events (“Events of Default”) shall occur and be continuing:

     (a) Either Borrower shall fail to pay any principal of any Advance or any L/C Obligation when the same becomes due and payable; the Borrowers shall fail to provide any Cash Collateral required by Section 2.03(a)(ii)(B) on or prior to the Letter of Credit Expiration Date; or either Borrower shall fail to pay any interest on any Advance or any L/C Obligation or make any other payment of fees or other amounts payable under this Agreement or any Note within three Business Days after the same becomes due and payable; or

     (b) Any representation or warranty made by the Parent, either Borrower or any Loan Party under any Loan Document or by the Parent or either Borrower (or any of its respective officers) in connection with any Loan Document shall prove to have been incorrect in any material respect when made; or

     (c) (i) The Parent or either Borrower shall fail to perform or observe any term, covenant or agreement contained in Sections 5.01(c), (d) or (h), 5.02 or 5.03, or (ii) the Parent or either Borrower shall fail to perform or observe any other term, covenant or agreement contained in this Agreement on its part to be performed or observed if such failure shall remain unremedied for 30 days after written notice thereof shall have been given to the Borrowers by the Administrative Agent or any Lender; or

     (d) The Parent or any of its Subsidiaries shall fail to pay any principal of or premium or interest on any Debt that is outstanding in a principal or notional amount of at least

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$62,500,000 (or the equivalent thereof in any other currencies) in the aggregate (but excluding Debt outstanding hereunder) of the Parent or such Subsidiary (as the case may be), when the same becomes due and payable (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument relating to such Debt; or any other event shall occur or condition shall exist under any agreement or instrument relating to any such Debt and shall continue after the applicable grace period, if any, specified in such agreement or instrument, if the effect of such event or condition is to accelerate, or to permit the acceleration of, the maturity of such Debt; or any such Debt shall be declared to be due and payable, or required to be prepaid or redeemed, purchased or defeased, or an offer to prepay, redeem, purchase or defease such Debt shall be required to be made, in each case prior to the stated maturity thereof; or

     (e) The Parent or any of its Significant Subsidiaries or any Guarantor shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or against the Parent or any of its Significant Subsidiaries or any Guarantor seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar official for it or for any substantial part of its property and, in the case of any such proceeding instituted against it (but not instituted by it), either such proceeding shall remain undismissed or unstayed for a period of 45 days, or any of the actions sought in such proceeding (including, without limitation, the entry of an order for relief against, or the appointment of a receiver, trustee, custodian or other similar official for, it or for any substantial part of its property) shall occur; or the Parent or any of its Significant Subsidiaries or any Guarantor shall take any corporate action to authorize any of the actions set forth above in this subsection (e); or

     (f) Any judgment or order for the payment of money in excess of $62,500,000 (or the equivalent thereof in any other currencies) shall be rendered against the Parent or any of its Subsidiaries and either (i) enforcement proceedings shall have been commenced by any creditor upon such judgment or order or (ii) there shall be any period of 30 consecutive days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; provided, however, that any such judgment or order shall not be an Event of Default under this Section 6.01(f) if and for so long as (i) the amount of such judgment or order in excess of $62,500,000 (or the equivalent thereof in any other currencies) is covered by a valid and binding policy of insurance between the defendant and the insurer covering payment thereof and (ii) such insurer, which shall be rated at least “A” by A.M. Best Company, has been notified of, and has not disputed the claim made for payment of, the amount of such excess amount; or

     (g) Any non-monetary judgment or order shall be rendered against the Parent or any of its Subsidiaries that could be reasonably expected to have a Material Adverse Effect, and there shall be any period of 30 consecutive days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; or

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     (h) (i) Any Person or two or more Persons acting in concert shall have acquired beneficial ownership (within the meaning of Rule 13d-3 of the Securities and Exchange Commission under the Exchange Act), directly or indirectly, of Voting Stock of the Parent (or other securities convertible into such Voting Stock) representing 33% or more of the combined voting power of all Voting Stock of the Parent; or (ii) during the period of 12 consecutive months, a majority of the members of the board of directors or other equivalent governing body of the Parent cease to be composed of individuals (A) who were members of that board or equivalent governing body on the first day of such period, (B) whose election or nomination to that board or equivalent governing body was approved (including approval solely for purposes of satisfying this provision) by individuals referred to in clause (A) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body or (C) whose election or nomination to that board or other equivalent governing body was approved (including approval solely for purposes of satisfying this provision) by individuals referred to in clauses (A) and (B) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body; or

     (i) Any ERISA Event shall have occurred with respect to a Plan, or any Loan Party or any ERISA Affiliate shall have incurred or be reasonably expected to incur liability under Section 4064 or 4069 of ERISA, and the sum (determined as of the date of occurrence of such ERISA Event) of the Insufficiency of such Plan and the Insufficiency of any and all other Plans with respect to which an ERISA Event shall have occurred and then exist (or the liability of the Loan Parties and the ERISA Affiliates incurred or expected to be incurred with respect to Section 4064 or 4069 of ERISA or related to such ERISA Event) exceeds $31,250,000; or

     (j) Any Loan Party or any ERISA Affiliate shall have been notified by the sponsor of a Multiemployer Plan that it has incurred Withdrawal Liability to such Multiemployer Plan in an amount that, when aggregated with all other amounts required to be paid to Multiemployer Plans by the Loan Parties and the ERISA Affiliates as Withdrawal Liability (determined as of the date of such notification), exceeds $31,250,000 or requires payments exceeding $6,250,000 per annum; or

     (k) Any Loan Party or any ERISA Affiliate shall have been notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is in reorganization or is being terminated, within the meaning of Title IV of ERISA, and as a result of such reorganization or termination the aggregate annual contributions of the Loan Parties and the ERISA Affiliates to all Multiemployer Plans that are then in reorganization or being terminated have been or will be increased over the amounts contributed to such Multiemployer Plans for the plan years of such Multiemployer Plans immediately preceding the plan year in which such reorganization or termination occurs by an amount exceeding $31,250,000;

     (l) Any governmental authority or regulatory body shall have enacted, issued, promulgated, enforced or entered any law, rule, regulation, judgment, decree, injunction or other order (whether temporary, preliminary or permanent) which is in effect and which prohibits, enjoins or otherwise restricts the Parent or any of its Subsidiaries in a manner that has a Material Adverse Effect; or

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     (m) Any material provision of either Guaranty shall for any reason cease to be valid and binding on any applicable Guarantor or any Guarantor shall so state in writing, but in either case, only if such event could reasonably be expected to have a Material Adverse Effect;

then, and in any such event, the Administrative Agent (i) shall at the request, or may with the consent, of the Required Lenders, by notice to the Borrowers, declare the obligation of each Lender to make Advances and any obligation of the L/C Issuer to make L/C Credit Extensions to be terminated, whereupon the same shall forthwith terminate, (ii) shall at the request, or may with the consent, of the Required Lenders, by notice to the Borrowers, declare the Advances and the Notes, all the L/C Borrowings, all interest thereon and all other amounts payable under this Agreement and the Notes to be forthwith due and payable and pursue all rights under any Guaranty, whereupon the Advances and the Notes, all the L/C Borrowings, all such interest and all such amounts shall become and be forthwith due and payable, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Borrowers and (iii) shall at the request, or may with the consent, of the Required Lenders, by notice to the Borrowers, require that the Borrowers Cash Collateralize the outstanding Letters of Credit (in an amount equal to 100% of the then Outstanding Amount thereof); provided, however, that in the event of an actual or deemed entry of an order for relief with respect to the Parent or any Significant Subsidiary or any Guarantor under the bankruptcy code of the United States, or any other liquidation, conservatorship, bankruptcy, reorganization or other similar debtor relief laws of the United States, the United Kingdom or Bermuda, (A) the obligation of each Lender to make Advances and any obligation of the L/C Issuer to make L/C Credit Extensions shall automatically be terminated, (B) the Notes, all such interest and all such amounts (including without limitation all L/C Borrowings) shall automatically become and be due and payable, without presentment, demand, protest or any notice of any kind, all of which are hereby expressly waived by the Borrowers and (C) the obligation of the Borrowers to Cash Collateralize the outstanding Letters of Credit as aforesaid shall automatically become effective, in each case without further act of the Administrative Agent or any Lender.

     Section 6.02 Application of Funds. After the exercise of remedies provided for in Section 6.01 (or after the Notes and the L/C Borrowings have automatically become immediately due and payable and the outstanding Letters of Credit have automatically been required to be Cash Collateralized as set forth in Section 6.01), any amounts received on account of the Obligations shall, subject to the provisions of Sections 2.18 and 8.16, be applied by the Administrative Agent in the following order:

     First, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts (including fees, charges and disbursements of counsel to the Administrative Agent and amounts payable under Article II) payable to the Administrative Agent in its capacity as such;

     Second, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal, interest and Letter of Credit Fees) payable to the Lenders and L/C Issuer (including fees, charges and disbursements of counsel to the respective Lenders and the L/C Issuer and amounts payable under Article II), ratably among them in proportion to the respective amounts described in this clause Second payable to them;

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     Third, to payment of that portion of the Obligations constituting accrued and unpaid interest on any L/C Borrowings (which have not been funded by L/C Advances) payable only to the L/C Issuer, and interest on any Swing Line Loans payable only to the Swing Line Lender, ratably among the L/C Issuer and the Swing Line Lender in proportion to the respective amounts described in this clause Third payable to them;

     Fourth, to payment of that portion of the Obligations constituting unpaid principal on any L/C Borrowings (which have not been funded by L/C Advances) to the L/C Issuer and Swing Line Loans payable only to the Swing Line Lender; ratably among the L/C Issuer and the Swing Line Lender in proportion to the respective amounts described in this clause Fourth payable to them;

     Fifth, to payment of that portion of the Obligations constituting accrued and unpaid Letter of Credit Fees, interest on any of the Advances (other than Swing Line Loans) and L/C Advances, payable to the Lenders, ratably among them in proportion to the respective amounts described in this clause Fifth held by them;

     Sixth, to payment of that portion of the Obligations constituting unpaid principal on any of the Advances (other than Swing Line Loans) and L/C Advances, ratably among the Lenders in proportion to the respective amounts described in this clause Sixth held by them;

     Seventh, to the Administrative Agent for the account of the L/C Issuer, to Cash Collateralize that portion of the L/C Obligations comprised of 100% of the aggregate undrawn amount of outstanding Letters of Credit to the extent not otherwise Cash Collateralized by the Borrowers pursuant to Sections 2.03 or 2.18.

     Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to the Borrowers or as otherwise required by law.

     Subject to Sections 2.03(c) and 2.18, amounts used to Cash Collateralize the aggregate undrawn amount of Letters of Credit pursuant to clause Seventh above shall be applied to satisfy drawings under such Letters of Credit as they occur. If any amount remains on deposit as Cash Collateral after all Letters of Credit have either been fully drawn or expired, such remaining amount shall be applied to the other Obligations, if any, in the order set forth above.

ARTICLE VII

ADMINISTRATIVE AGENT

     Section 7.01 Appointment and Authority. Each of the Lenders and the L/C Issuer hereby irrevocably appoints Bank of America to act on its behalf as the Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto. The provisions of this Article are solely for the benefit of the Administrative Agent, the Lenders and the L/C Issuer, and neither the Borrowers, the Parent nor any other Loan Party shall have rights as a third party beneficiary of any of such provisions.

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     Section 7.02 Rights as a Lender. The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity. Such Person and its Affiliates may accept deposits from, lend money to, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with the Parent, the Borrowers or any Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent hereunder and without any duty to account therefor to the Lenders.

     Section 7.03 Exculpatory Provisions. The Administrative Agent shall not have any duties or obligations except those expressly set forth herein and in the other Loan Documents. Without limiting the generality of the foregoing, the Administrative Agent:

     (a) shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing;

     (b) shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents), provided that the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Loan Document or applicable law; and

     (c) shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Parent, the Borrowers or any of their respective Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity.

     The Administrative Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in Sections 6.01 and 8.01) or (ii) in the absence of its own gross negligence or willful misconduct, provided, such limitation of liability of the Administrative Agent shall not prohibit or limit any cause of action either Borrower may otherwise have against any Lender. The Administrative Agent shall be deemed not to have knowledge of any Default unless and until notice describing such Default is given to the Administrative Agent by the Borrowers, a Lender or the L/C Issuer.

     The Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set

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forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document or (v) the satisfaction of any condition set forth in Article III or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent.

     Section 7.04 Reliance by Administrative Agent. The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) reasonably believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person. The Administrative Agent also may rely upon any statement made to it orally or by telephone and reasonably believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon. In determining compliance with any condition hereunder to the making of an Advance, or the issuance of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the L/C Issuer, the Administrative Agent may presume that such condition is satisfactory to such Lender or the L/C Issuer unless the Administrative Agent shall have received notice to the contrary from such Lender or the L/C Issuer prior to the making of such Advance or the issuance of such Letter of Credit. The Administrative Agent may consult with legal counsel (who may be counsel for the Parent or the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in good faith in accordance with the advice of any such counsel, accountants or experts.

     Section 7.05 Delegation of Duties. The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties. The exculpatory provisions of this Article shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent.

     Section 7.06 Resignation of Administrative Agent. The Administrative Agent may at any time give notice of its resignation to the Lenders, the L/C Issuer and the Borrowers. Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Borrowers so long as no Event of Default has occurred and is continuing, to appoint a successor, which shall be a bank with an office in the United States, or an Affiliate of any such bank with an office in the United States. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may on behalf of the Lenders and the L/C Issuer, appoint a successor Administrative Agent meeting the qualifications set forth above; provided that if the Administrative Agent shall notify the Borrowers and the Lenders that no qualifying Person has accepted such appointment, then such resignation shall nonetheless become effective in accordance with such notice and (1) the retiring Administrative Agent shall be discharged from

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its duties and obligations hereunder and under the other Loan Documents and (2) all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender and the L/C Issuer directly, until such time as the Required Lenders appoint a successor Administrative Agent as provided for above in this Section; provided, such Lenders so acting directly shall be and be deemed to be protected by all indemnities and other provisions herein for the benefit and protection of the Administrative Agent as if each such Lender were itself the Administrative Agent. Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring (or retired) Administrative Agent, and the retiring Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents (if not already discharged therefrom as provided above in this Section). The fees payable by the Borrowers to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrowers and such successor. After the retiring Administrative Agent’s resignation hereunder and under the other Loan Documents, the provisions of this Article and Section 8.04 shall continue in effect for the benefit of such retiring Administrative Agent, its sub agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring Administrative Agent was acting as Administrative Agent.

     Any resignation by Bank of America as Administrative Agent pursuant to this Section shall also constitute its resignation as L/C Issuer and Swing Line Lender. Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, (a) such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring L/C Issuer and Swing Line Lender; (b) the retiring L/C Issuer and Swing Line Lender shall be discharged from all of its respective duties and obligations hereunder or under the other Loan Documents; and (c) the successor L/C Issuer shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such succession or make other arrangements satisfactory to the retiring L/C Issuer to effectively assume the obligations of the retiring L/C Issuer with respect to such Letters of Credit.

     Section 7.07 Non-Reliance on Administrative Agent and Other Lenders. Each Lender and the L/C Issuer acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender and the L/C Issuer also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.

     Section 7.08 No Other Duties, Etc. Anything herein to the contrary notwithstanding, none of the Arrangers listed on the cover page hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in its capacity, as applicable, as the Administrative Agent, a Lender or the L/C Issuer.

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     Section 7.09 Administrative Agent May File Proofs of Claim. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any Loan Party, the Administrative Agent (irrespective of whether the principal of any Advance or L/C Obligation shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrowers) shall be entitled and empowered, by intervention in such proceeding or otherwise

     (a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Advances, L/C Obligations and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders, the L/C Issuer and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders, the L/C Issuer and the Administrative Agent and their respective agents and counsel, and all other amounts, due the Lenders, the L/C Issuer and the Administrative Agent under Sections 2.03(h) and (i), 2.05 and 8.04) allowed in such judicial proceeding; and

     (b) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender and the L/C Issuer to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders and the L/C Issuer, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under Sections 2.05 and 8.04.

     Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender or the L/C Issuer any plan of reorganization, arrangement, adjustment or composition affecting any amount owing by a Loan Party to a Lender or the Administrative Agent or the rights of any Lender or the L/C Issuer or to authorize the Administrative Agent to vote in respect of the claim of any Lender or the L/C Issuer in any such proceeding.

     Section 7.10 Guaranty Matters. The Lenders and the L/C Issuer irrevocably authorize the Administrative Agent, at its option and in its discretion, to release any Subsidiary Guarantor from its obligations under the Subsidiary Guaranty if such Person ceases to be a Subsidiary of the Borrowers or a Subsidiary of the Parent as a result of a transaction permitted hereunder.

     Upon request by the Administrative Agent at any time, the Lenders shall promptly confirm in writing the Administrative Agent’s authority to release any Guarantor from its obligations under the Subsidiary Guaranty pursuant to this Section 7.10.

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ARTICLE VIII

MISCELLANEOUS

     Section 8.01 Amendments, Etc. No amendment or waiver of any provision of this Agreement or any other Loan Document, and no consent to any departure by either Borrower or any other Loan Party therefrom, shall be effective unless in writing signed by the Required Lenders and the Borrowers or the applicable Loan Party, as the case may be, and acknowledged by the Administrative Agent, and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that no such amendment, waiver or consent shall:

     (a) waive any condition set forth in Section 3.01 without the written consent of each Lender;

     (b) extend or increase the Commitment of any Lender (or reinstate any Commitment terminated), increase any Lenders pro rata share requirement to fund any Advance or participate in any Swing Line Loan or Letter of Credit (other than as set forth in Section 8.16), or require any Lender to make Advances or participate in Letters of Credit in any currency other than Dollars or Sterling, in each case, without the written consent of such Lender;

     (c) postpone any date fixed by this Agreement or any other Loan Document for any payment or mandatory prepayment of principal, interest, fees or other amounts due to the Lenders (or any of them) hereunder or under any other Loan Document without the written consent of each Lender directly affected thereby;

     (d) reduce the principal of, or the rate of interest specified herein on any Advance or L/C Borrowing, or (subject to clause (iii) of the last proviso to this Section 8.01) any fees or other amounts payable hereunder or under any other Loan Document without the written consent of each Lender directly affected thereby; provided, however, that only the consent of the Required Lenders shall be necessary to amend Section 2.08(b) or to waive any obligation of the Borrowers to pay Letter of Credit Fees at rate equal to the Applicable Margin for Eurodollar Rate Advances plus 2% per annum;

     (e) change Section 2.16 or Section 6.02 in a manner that would alter the pro rata sharing of payments required thereby without the written consent of each Lender;

     (f) change any provision of this Section or the definition of “Required Lenders” or any other provision hereof specifying the number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or make any determination or grant any consent hereunder without the written consent of each Lender;

     (g) except in connection with permitted mergers under Section 5.02(b), permitted asset sales under Section 5.02(c) and other transactions permitted hereunder and in accordance with Section 7.10 hereof, release any Guarantor from its Guaranty (or release any Borrower from its joint and several liability hereunder and under the other Loan Documents) without the written consent of each Lender; or

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     (h) change Section 2.03(a)(ii) or change Section 2.03(b)(iii) in a manner that would (1) allow a Letter of Credit to have an expiry date more than twelve (12) months after the date of issuance or last extension, (2) change the conditions for the issuance or extension of a Letter of Credit having an expiry date later than the Letter of Credit Expiration Date, or (3) allow any Auto-Extension Letter of Credit to have an expiry date more than twelve months past the Letter of Credit Expiration Date, in each case, without the consent of each Lender;

and, provided further, that (i) no amendment, waiver or consent shall, unless in writing and signed by the L/C Issuer in addition to the Lenders required above, affect the rights or duties of the L/C Issuer under this Agreement or any Issuer Document relating to any Letter of Credit issued or to be issued by it; (ii) no amendment, waiver or consent shall, unless in writing and signed by the Swing Line Lender in addition to the Lenders required above, affect the rights or duties of the Swing Line Lender under this Agreement; (iii) no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above, affect the rights or duties of the Administrative Agent under this Agreement or any other Loan Document; and (iv) the Fee Letter may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto. Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder (and any amendment, waiver or consent which by its terms requires the consent of all Lenders may be effected with the consent of all Lenders other than Defaulting Lenders), except that (i) the Commitment of any Defaulting Lender may not be increased or extended without the consent of such Lender and (ii) any waiver, amendment or other modification requiring the consent of all Lenders or each affected Lender that by its terms affects any Defaulting Lender more adversely than other affected Lenders shall require the consent of such Defaulting Lender.

     Section 8.02 Notices; Effectiveness; Electronic Communication.

     (a) Notices Generally. Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in subsection (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopier as follows, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows:

     (i) if to the Borrowers, the Parent, the Administrative Agent, the L/C Issuer or the Swing Line Lender, to the address, telecopier number, electronic mail address(es) or telephone number specified for such Person on Schedule 8.02; and

     (ii) if to any other Lender, to the address, telecopier number, electronic mail address(es) or telephone number specified for such Lender’s Domestic Lending Office on Schedule I.

Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent by telecopier shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next Business Day for the

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recipient). Notices delivered through electronic communications to the extent provided in subsection (b) below, shall be effective as provided in such subsection (b).

     (b) Electronic Communications. Notices and other communications to the Lenders and the L/C Issuer hereunder, except for any notice of service of process under Section 8.12 or otherwise which shall be given in writing only as provided by applicable law, may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent, provided that the foregoing shall not apply to notices to any Lender or the L/C Issuer pursuant to Article II. The Administrative Agent or the Borrowers may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it, provided that approval of such procedures may be limited to particular notices or communications.

     Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement), provided that if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient, and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such notice or communication is available and identifying the website address therefor.

     (c) The Platform. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM. In no event shall the Administrative Agent or any of its Related Parties (collectively, the “Agent Parties”) have any liability to the Parent, either Borrower, any Lender, the L/C Issuer or any other Person for losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or otherwise) arising out of the Parent’s, either Borrower’s or the Administrative Agent’s transmission of Borrower Materials through the Internet, except to the extent that such losses, claims, damages, liabilities or expenses are determined by a court of competent jurisdiction by a final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Agent Party; provided, however, that in no event shall any Agent Party have any liability to either Borrower, any Lender, the L/C Issuer or any other Person for indirect, special, incidental, consequential or punitive damages (as opposed to direct or actual damages).

     (d) Change of Address, Etc. Each of the Borrowers, the Parent, the Administrative Agent, the L/C Issuer and the Swing Line Lender may change its address, telecopier or telephone

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number for notices and other communications hereunder by notice to the other parties hereto. Each other Lender may change its address, telecopier or telephone number for notices and other communications hereunder by notice to the Borrowers, the Parent, the Administrative Agent, the L/C Issuer and the Swing Line Lender. In addition, each Lender agrees to notify the Administrative Agent from time to time to ensure that the Administrative Agent has on record (i) an effective address, contact name, telephone number, telecopier number and electronic mail address to which notices and other communications may be sent and (ii) accurate wire instructions for such Lender.

     (e) Reliance by Administrative Agent, L/C Issuer and Lenders. The Administrative Agent, the L/C Issuer and the Lenders shall be entitled to rely and act upon any notices (including telephonic Notices of Borrowing and Swing Line Loan Notices) that the Administrative Agent or such Lender reasonably believes has been given by or on behalf of the Borrowers even if (i) such notices were not made in a manner specified herein, were incomplete or were not preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any confirmation thereof. The Borrowers shall indemnify the Administrative Agent, the L/C Issuer, each Lender and the Related Parties of each of them from all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice that the Administrative Agent, such Lender or such Related Party reasonably believes has been given by or on behalf of the Borrowers. All telephonic notices to and other telephonic communications with the Administrative Agent may be recorded by the Administrative Agent, and each of the parties hereto hereby consents to such recording.

     Section 8.03 No Waiver; Remedies. No failure on the part of any Lender, the L/C Issuer or the Administrative Agent to exercise, and no delay in exercising, any right, remedy, power or privilege hereunder or under any Note shall operate as a waiver thereof; nor shall any single or partial exercise of any such right, remedy, power or privilege preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

     Section 8.04 Expenses; Indemnity; Damage Waiver.

     (a) Costs and Expenses. The Borrowers shall pay (i) all reasonable out of pocket expenses incurred by the Administrative Agent and its Affiliates (including the reasonable fees, charges and disbursements of counsel for the Administrative Agent), in connection with the syndication of the credit facilities provided for herein, the preparation, negotiation, execution, delivery and administration of this Agreement and the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated); (ii) all reasonable out of pocket expenses incurred by the L/C Issuer in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all out of pocket expenses incurred by the Administrative Agent, any Lender or the L/C Issuer (including the reasonable fees, charges and disbursements of any counsel for the Administrative Agent, any Lender or the L/C Issuer), in connection with the enforcement or protection of its rights (A) in connection with this Agreement and the other Loan Documents, including its rights under this Section, or (B) in connection with the Advances made or the Notes or Letters of Credit issued

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hereunder, including all such out of pocket expenses incurred during any workout, restructuring or negotiations in respect of such Advances or Notes or Letters of Credit.

     (b) Indemnification by the Borrowers. The Borrowers agree to indemnify and hold harmless the Administrative Agent (and each sub-agent thereof), each Lender and the L/C Issuer, each of their respective Affiliates, and each Related Party of any of the foregoing Persons (each, an “Indemnified Party”) from and against any and all claims, damages, losses, liabilities and expenses (including, without limitation, reasonable fees, charges, disbursements and expenses of counsel for any Indemnified Party) that may be incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or in connection with or by reason of (including, without limitation, in connection with any investigation, litigation or proceeding or preparation of a defense in connection therewith) the Notes, this Agreement, any other Loan Document, any of the transactions contemplated herein or therein (including any refusal by the L/C Issuer to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), the actual or proposed use of the proceeds of the Advances, or, in the case of the Administrative Agent (and any such sub-agent thereof) and its Related Parties only, the administration of this Agreement and the other Loan Documents except to the extent such claim, damage, loss, liability or expense resulted from such Indemnified Party’s gross negligence or willful misconduct. In the case of an investigation, litigation or other proceeding to which the indemnity in this Section 8.04(b) applies, such indemnity shall be effective whether or not such investigation, litigation or proceeding is brought by a Borrower or any other Loan Party, its respective directors, shareholders or creditors or an Indemnified Party or any other Person and regardless of whether any Indemnified Party is otherwise a party thereto and whether or not the transactions contemplated hereby are consummated.

     (c) Other Costs. If any payment of principal of, or Conversion of, any Eurocurrency Rate Advance is made (i) by a Borrower to or for the account of a Lender other than on the last day of the Interest Period for such Advance, as a result of a payment or Conversion pursuant to Section 2.09(d), 2.11 or 2.13, acceleration of the maturity of the Notes pursuant to Section 6.01 or for any other reason, or (ii) by an Eligible Assignee to a Lender other than on the last day of the Interest Period for such Advance upon an assignment of rights and obligations under this Agreement pursuant to Section 8.06 as a result of a demand by the Borrowers pursuant to Section 8.11, the Borrowers shall, upon demand by such Lender (with a copy of such demand to the Administrative Agent), pay to the Administrative Agent for the account of such Lender any amounts required to compensate such Lender for any additional losses, costs or expenses that it may reasonably incur as a result of such payment or Conversion, including, without limitation, any loss (excluding loss of anticipated profits), cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by any Lender to fund or maintain such Advance, less the return such Lender reasonably expects to receive on its redeployment of funds.

     (d) Reimbursement by Lenders. To the extent that either Borrower for any reason fails to indefeasibly pay any amount required under subsection (a) or (b) of this Section to be paid by it to the Administrative Agent (or any sub-agent thereof), the L/C Issuer or any Related Party thereof, each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent), the L/C Issuer or such Related Party, as the case may be, such Lender’s Pro Rata Share

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(determined as of the time that the applicable unreimbursed expense or indemnity payment is sought and without regard to the last sentence in the definition of Pro Rata Share Percentage) of such unpaid amount, provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent (or any such sub-agent) or the L/C Issuer in its capacity as such, or against any Related Party thereof acting for the Administrative Agent (or any such sub-agent) or the L/C Issuer in connection with such capacity. The obligations of the Lenders under this subsection (d) are subject to the provisions of Section 2.02(e).

     (e) Waiver of Consequential Damages, Etc. To the fullest extent permitted by applicable law, no Loan Party shall assert, and each hereby waives, any claim against any Indemnified Party, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Advance or Letter of Credit or the use of the proceeds thereof. No Indemnified Party referred to in subsection (b) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby except as a result of such Indemnified Party’s gross negligence of willful misconduct.

     (f) Payments. All amounts due under this Section shall be payable not later than ten (10) Business Days after demand therefor.

     (g) Survival. Without prejudice to the survival of any other agreement of the Borrowers hereunder, the agreements and obligations of the Borrowers contained in this Section and Sections 2.12 and 2.15 herein shall survive the resignation of the Administrative Agent, the replacement of any Lender, the termination of the Total Commitment and the repayment, satisfaction or discharge of all the other Obligations.

     Section 8.05 Right of Set-off. Upon the occurrence and during the continuance of any Event of Default, each Lender, the L/C Issuer and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other indebtedness at any time owing by such Lender, the L/C Issuer or any such Affiliate to or for the credit or the account of a Borrower against any and all of the obligations of the Borrowers now or hereafter existing under this Agreement or any other Loan Document to such Lender or the L/C Issuer or the Note held by such Lender, whether or not such Lender or the L/C Issuer shall have made any demand under this Agreement, any other Loan Document or such Note and although such obligations may be unmatured; provided, that in the event that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of Section 8.16 and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent and the Lenders, and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail the Obligations owing to such Defaulting

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Lender as to which it exercised such right of setoff. Each Lender agrees promptly to notify the Borrowers after any such set-off and application, provided that the failure to give such notice shall not affect the validity of such set-off and application. The rights of each Lender, the L/C Issuer and their respective Affiliates under this Section are in addition to other rights and remedies (including, without limitation, other rights of set-off) that such Lender, the L/C Issuer and their respective Affiliates may have.

     Section 8.06 Successors and Assigns.

     (a) Successors and Assigns Generally. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that no Loan Party may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent, the L/C Issuer and each Lender (except by operation of law or to the extent permitted hereunder) and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an Eligible Assignee in accordance with the provisions of subsection (b) of this Section, (ii) by way of participation in accordance with the provisions of subsection (d) of this Section, and (iii) by way of pledge or assignment of a security interest subject to the restrictions of subsection (f) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in subsection (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent, the L/C Issuer and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

     (b) Assignments by Lenders. Any Lender may at any time assign to one or more Eligible Assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Advances (including for purposes of this subsection (b), participations in L/C Obligations and in Swing Line Loans) at the time owing to it); provided that any such assignment shall be subject to the following conditions:

     (i) Minimum Amounts. (A) In the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment and the Advances and the L/C Advances at the time owing to it or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; (B) and in any case not described in subsection b(i)(A) of this Section, the aggregate amount of the Commitment (which for this purpose includes Advances outstanding thereunder) or, if the Commitment is not then in effect, the principal outstanding balance of the Advances of the assigning Lender subject to each such assignment, determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date, shall not be less than $10,000,000 and increments of $1,000,000 in excess thereof unless each of the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrowers otherwise consent (each such consent not to be unreasonably withheld or delayed); provided, however, that concurrent assignments to members of an Assignee Group and concurrent assignments from

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members of an Assignee Group to a single Eligible Assignee (or to an Eligible Assignee and members of its Assignee Group) will be treated as a single assignment for purposes of determining whether such minimum amount has been met;

     (ii) Proportionate Amounts. Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Advances and the L/C Advances or the Commitment assigned, except that this clause (ii) shall not apply to rights of the Swing Line Lender in respect of Swing Line Loans;

     (iii) Required Consents. No consent shall be required for any assignment except to the extent required by subsection (b)(i)(B) of this Section and in addition:

     (A) the consent of the Borrowers (such consent not to be unreasonably withheld or delayed) shall be required unless (1) an Event of Default has occurred and is continuing at the time of such assignment or (2) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; provided that the Borrowers shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within five (5) Business Days after having received notice thereof;

     (B) the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required if such assignment is to a Person that is not a Lender, an Affiliate of such Lender or an Approved Fund;

     (C) the consent of the L/C Issuer (such consent not to be unreasonably withheld or delayed) shall be required for any assignment that increases the obligation of the assignee to participate in exposure under one or more Letters of Credit (whether or not then outstanding); and

     (D) the consent of the Swing Line Lender (such consent not to be unreasonably withheld or delayed) shall be required for any assignment.

     (iv) Assignment and Assumption. The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee in the amount of $3,500; provided, however, that the Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment. The Eligible Assignee, if it is not a Lender, shall deliver to the Administrative Agent an administrative questionnaire and the Administrative Agent shall further deliver such administrative questionnaire to the Borrowers.

     (v) No Assignment to Certain Persons. No such assignment shall be made to (A) either Borrower, the Parent or any of either Borrower’s or Parent’s Affiliates or Subsidiaries, or (B) to any Defaulting Lender or any of its Subsidiaries, or any Person which, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this clause (B), or (C) to a natural person.

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     (vi) Certain Additional Payments. In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment by such Lender shall be effective unless and until, in addition to the other conditions thereto set forth herein, the applicable assignor or assignee shall make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or subparticipations, or other compensating actions, including funding, with the consent of the Borrowers and the Administrative Agent, the applicable pro rata share of Loans previously requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Administrative Agent or any Lender hereunder (and interest accrued thereon) and (y) acquire (and fund as appropriate) its full pro rata share of all Loans and participations in Letters of Credit and Swing Line Loans in accordance with its Pro Rata Share. Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under applicable law without compliance with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the Eligible Assignee thereunder shall be a party to this Agreement with respect to the interest assigned and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement in addition to any rights and obligations it may theretofore have as a Lender, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 2.12, 2.15, and 8.04 with respect to facts and circumstances occurring prior to the effective date of such assignment. Upon request, the Borrowers (at their expense) shall execute and deliver a Note to the assignee Lender. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this subsection shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with subsection (d) of this Section.

     (c) Register. The Administrative Agent, acting solely for this purpose as an agent of the Borrowers, shall maintain at the Administrative Agent’s office a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts of the Advances and L/C Advances owing to each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive, absent manifest error, and the Borrowers, the Administrative Agent and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. In addition, the Administrative Agent shall maintain on the Register the designation, and revocation of designation, of any Lender as a Defaulting Lender

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of which it has received notice. The Register shall be available for inspection by the Borrowers and the Lenders at any reasonable time and from time to time upon reasonable prior notice.

     (d) Participations. Any Lender may at any time, without the consent of, or notice to, the Borrowers or the Administrative Agent, sell participations to any Person (other than a natural person, a Defaulting Lender, the Parent, the Borrowers or any of the Parent’s or the Borrowers’ respective Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Advances (including such Lender’s participations L/C Obligations and/or Swing Line Loans) owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Borrowers, the Administrative Agent, the L/C Issuer and the Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.

     Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, waiver or other modification described in the first proviso to Section 8.01 that affects such Participant. Subject to subsection (e) of this Section, the Borrowers agree that each Participant shall be entitled to the benefits of Sections 2.12, 2.15 and 8.04 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to subsection (b) of this Section. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 8.05 as though it were a Lender, provided such Participant agrees to be subject to Section 2.16 as though it were a Lender.

     (e) Limitation upon Participant Rights. A Participant shall not be entitled to receive any greater payment under Section 2.12 or 2.15 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrowers’ prior written consent. A Participant that would be a foreign Lender if it were a Lender shall not be entitled to the benefits of Section 2.15 unless the Borrowers are notified of the participation sold to such Participant and such Participant agrees, for the benefit of the Borrowers, to comply with Section 2.15 as though it were a Lender.

     (f) Certain Pledges. Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement (including under its Note(s), if any) to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

     (g) Electronic Execution of Assignments. The words “execution,” “signed,” “signature,” and words of like import in any Assignment and Assumption shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of

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a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

     (h) Resignation as L/C Issuer or Swing Line Lender after Assignment. Notwithstanding anything to the contrary contained herein, if at any time Bank of America assigns all of its Commitment and Advances pursuant to subsection (b) above, Bank of America may, (i) upon 30 days’ notice to the Borrowers and the Lenders, resign as L/C Issuer and/or (ii) upon 30 days’ notice to the Borrowers and the Lenders, resign as Swing Line Lender. In the event of any such resignation, the Borrowers shall be entitled to appoint from among the Lenders a successor L/C Issuer or Swing Line Lender hereunder; provided, however, that no failure by the Borrowers to appoint any such successor shall affect the resignation of Bank of America as L/C Issuer or Swing Line Lender, as the case may be. If Bank of America resigns as L/C Issuer, it shall retain all the rights, powers, privileges and duties of the L/C Issuer hereunder with respect to all Letters of Credit outstanding as of the effective date of its resignation as L/C Issuer and all L/C Obligations with respect thereto (including the right to require the Lenders to make Base Rate Advances or fund risk participations in Unreimbursed Amounts pursuant to Section 2.03(c)). If Bank of America resigns as Swing Line Lender, it shall retain all the rights of the Swing Line Lender provided for hereunder with respect to Swing Line Loans made by it and outstanding as of the effective date of such resignation, including the right to require the Lenders to make Base Rate Advances or fund risk participations in outstanding Swing Line Loans pursuant to Section 2.04(c). Upon the appointment of a successor and acceptance of such appointment by the successor L/C Issuer and/or Swing Line Lender, (a) such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring L/C Issuer or Swing Line Lender, as the case may be, and (b) the successor L/C Issuer shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such succession or make other arrangements satisfactory to Bank of America to effectively assume the obligations of Bank of America with respect to such Letters of Credit.

     Section 8.07 Treatment of Certain Information; Confidentiality. Each of the Administrative Agent, the L/C Issuer and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective partners, directors, officers, employees, agents, advisors and representatives (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any regulatory authority purporting to have jurisdiction over it or its Affiliates (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party hereto, (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction or any credit insurance provider, in each case, relating to either Borrower and its obligations, (g)

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with the consent of the Parent or either Borrower or (h) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section actually known to or caused by the disclosing party or (y) becomes available to the Administrative Agent, any Lender, the L/C Issuer or any of their respective Affiliates on a nonconfidential basis from a source other than the Parent or a Borrower.

     For purposes of this Section, “Information” means all information received from the Parent, either Borrower or any Subsidiary of the Parent relating to the Parent, a Borrower or any such Subsidiary or any of their respective businesses, other than any such information that is available to the Administrative Agent, the L/C Issuer or any Lender on a nonconfidential basis prior to disclosure by the Parent, a Borrower or any such Subsidiary, provided that, in the case of information received from the Parent, a Borrower or any such Subsidiary after the date hereof, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

     Each of the Administrative Agent, the L/C Issuer and the Lenders acknowledges that (a) the Information may include material non-public information concerning the Parent, a Borrower or a Subsidiary of either thereof, as the case may be, (b) it has developed compliance procedures regarding the use of material non-public information and (c) it will handle such material non-public information in accordance with applicable law, including Federal and state securities laws with respect to Lenders subject to such laws and only to the extent such laws are applicable to such Lender.

     Section 8.08 Governing Law. This Agreement and the Notes shall be governed by, and construed in accordance with, the laws of the State of New York.

     Section 8.09 Execution in Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by telecopier or other electronic transmission shall be effective as delivery of a manually executed counterpart of this Agreement.

     Section 8.10 Survival of Representations and Warranties. All representations and warranties made hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery hereof and thereof. Such representations and warranties have been or will be relied upon by the Administrative Agent, the L/C Issuer and each Lender, regardless of any investigation made by the Administrative Agent, the L/C Issuer or any Lender or on their behalf and notwithstanding that the Administrative Agent, the L/C Issuer or any Lender may have had notice or knowledge of any Default at the time of any Borrowing, any Advance or any L/C Credit Extension, and shall continue in full force and effect as long as any Advance or any other Obligation hereunder shall remain unpaid or unsatisfied or any Letter of Credit or L/C Obligation shall remain outstanding.

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     Section 8.11 Replacement of Lenders. (i) If any Lender requests compensation under Section 2.12, (ii) if the Borrowers are required to pay any additional amount to any Lender or any governmental authority for the account of any Lender pursuant to Section 2.15, (iii) if any Lender is, or within fifteen (15) Business Days of such assignment or delegation was, a Defaulting Lender, (iv) if any Lender is unable to make Eurocurrency Rate Advances pursuant to Section 2.13, or (v) if any Lender shall fail to provide any consent, or consent to any waiver or amendment, agreed to by the Required Lenders then the Borrowers may, at its sole expense and effort, upon written notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 8.06), all of its interests, rights and obligations under this Agreement and the related Loan Documents to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment), provided that:

     (a) the Borrowers shall have paid (or cause to be paid) to the Administrative Agent the assignment fee specified in Section 8.06(b);

     (b) such Lender shall have received payment of an amount equal to the outstanding principal of its Advances and L/C Advances, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents (including any amounts under Section 8.04(c)) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrowers (in the case of all other amounts);

     (c) in the case of any such assignment resulting from a claim for compensation under Section 2.12 or payments required to be made pursuant to Section 2.15, such assignment will result in a reduction in such compensation or payments thereafter;

     (d) such assignment does not conflict with applicable laws;

     (e) no Default or Event of Default shall have occurred and be continuing; and

     (f) such parties to the assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption and the assignee shall deliver to the Administrative Agent an administrative questionnaire.

     A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrowers to require such assignment and delegation cease to apply.

     Section 8.12 Jurisdiction, Etc.

     (a) Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of any New York State court or federal court of the United States of America sitting in New York City, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or the Notes, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in any such New York State court or, to the extent permitted by

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law, in such federal court. Each of the Parent and IHCL hereby agrees that service of process in any such action or proceeding brought in any such New York State court or in such federal court may be made upon the Parent c/o the Borrowers at its offices at 1555 Peachtree Street N.E., Atlanta, Georgia 30309, Attention: General Counsel (the “Process Agent”), and hereby further agrees that the failure of the Process Agent to give any notice of any such service to the Parent or IHCL, as applicable, shall not impair or affect the validity of such service or of any judgment rendered in any action or proceeding based thereon. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right that any party may otherwise have to bring any action or proceeding relating to this Agreement or the Notes in the courts of any jurisdiction.

     (b) Each of the parties hereto irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or the Notes in any New York State or federal court. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

     (c) To the extent that either the Parent or either Borrower has or hereafter may acquire any immunity from the jurisdiction of any court or from any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) with respect to itself or its property, each of the Parent and each Borrower hereby irrevocably waives such immunity in respect of its obligations under this Agreement and the other Loan Documents.

     Section 8.13 Judgment.

     (a) Rate of Exchange. If, for the purpose of obtaining judgment in any court, it is necessary to convert a sum due hereunder or under the Notes in another currency into Dollars, the parties hereto agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall be that at which, in accordance with normal banking procedures, the Administrative Agent could purchase such other currency with Dollars in New York City, New York, at the close of business on the Business Day immediately preceding the day on which final judgment is given, together with any premiums and costs of exchange payable in connection with such purchase.

     (b) Indemnity. The obligation of the Borrowers in respect of any sum due from it to the Administrative Agent or any Lender hereunder or under any Note shall, notwithstanding any judgment in a currency other than Dollars, be discharged only to the extent that on the Business Day next succeeding receipt by the Administrative Agent or such Lender of any sum adjudged to be so due in such other currency, the Administrative Agent or such Lender, as the case may be, may, in accordance with normal banking procedures, purchase Dollars with such other currency. If the Dollars so purchased are less than the sum originally due to the Administrative Agent or such Lender in Dollars, the Borrowers agree, as a separate obligation and notwithstanding any such judgment, to indemnify the Administrative Agent or such Lender against such loss, and if the Dollars so purchased exceed the sum originally due to any the Administrative Agent or any

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Lender in Dollars, the Administrative Agent or such Lender agrees to remit to the Borrowers such excess.

     Section 8.14 Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

     Section 8.15 USA PATRIOT Act Notice. Each Lender that is subject to the Act (as hereinafter defined) and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Borrowers and the Parent that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record information that identifies each Borrower, which information includes the name and address of each Borrower and other information that will allow such Lender or the Administrative Agent, as applicable, to identify the Borrowers in accordance with the Act. Each Borrower shall, promptly following a request by the Administrative Agent or any Lender, provide all documentation and other information that the Administrative Agent or such Lender requests in order to comply with its ongoing obligations under applicable “know your customer” and anti-money laundering rules and regulations, including the Act.

     Section 8.16 Defaulting Lenders.

     (a) Adjustments. Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as that Lender is no longer a Defaulting Lender as provided in Section 8.16(b), to the extent permitted by applicable law:

     (i) Waivers and Amendments. That Defaulting Lender’s right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in Section 8.01.

     (ii) Reallocation of Payments. Any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of that Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Article VI or otherwise, and including any amounts made available to the Administrative Agent by that Defaulting Lender pursuant to Section 8.05), shall be applied at such time or times as

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may be determined by the Administrative Agent as follows: first, to the payment of any amounts owing by that Defaulting Lender to the Administrative Agent hereunder; second, to the payment on a pro rata basis of any amounts owing by that Defaulting Lender to the L/C Issuer or Swing Line Lender hereunder; third, if so determined by the Administrative Agent or requested by the L/C Issuer or Swing Line Lender, to be held as Cash Collateral for future funding obligations of that Defaulting Lender of any participation in any Swing Line Loan or Letter of Credit; fourth, as the Borrowers may request (so long as no Default or Event of Default exists), to the funding of any Advance or L/C Advance in respect of which that Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent; fifth, if so determined by the Administrative Agent and the Borrowers, to be held in a non-interest bearing deposit account and released in order to satisfy obligations of that Defaulting Lender to fund Advances under this Agreement; sixth, to the payment of any amounts owing to the Lenders, the L/C Issuer or Swing Line Lender as a result of any judgment of a court of competent jurisdiction obtained by any Lender, the L/C Issuer or Swing Line Lender against that Defaulting Lender as a result of that Defaulting Lender’s breach of its obligations under this Agreement; seventh, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrowers as a result of any judgment of a court of competent jurisdiction obtained by the Borrowers against that Defaulting Lender as a result of that Defaulting Lender’s breach of its obligations under this Agreement; and eighth, to that Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if (x) such payment is a payment of the principal amount of any Advances or L/C Borrowings in respect of which that Defaulting Lender has not fully funded its appropriate share and (y) such Advances or L/C Borrowings were made at a time when the conditions set forth in Section 3.02 were satisfied or waived, such payment shall be applied solely to pay the Advances of, and L/C Borrowings owed to, all non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Advances of, or L/C Borrowings owed to, that Defaulting Lender. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to this Section 8.16(a)(ii) shall be deemed paid to and redirected by that Defaulting Lender, and each Lender irrevocably consents hereto.

     (iii) Certain Fees. That Defaulting Lender (A) shall not be entitled to receive any facility fee pursuant to Section 2.05(a) except to the extent allocable to the sum of (1) the Outstanding Amount of Advances and L/C Advances funded by it and (2) its Pro Rata Share of the stated amount of Letters of Credit and Swing Line Loans for which it has provided Cash Collateral pursuant to Section 2.03, Section 2.04, Section 2.18, or Section 8.16(a)(ii), as applicable, and (B) shall be limited in its right to receive Letter of Credit Fees as provided in Section 2.03(h). In the event that any such Defaulting Lender’s participation obligation has not been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof, the Borrowers shall (x) be required to pay to each of the L/C Issuer and the Swing Line Lender, as applicable, the amount of such fee allocable to its Fronting Exposure arising from that Defaulting Lender and (y) not be required to pay the remaining amount of such fee that otherwise would have been required to have been paid to that Defaulting Lender.

93

     (iv) Reallocation of Pro Rata Share Percentages to Reduce Fronting Exposure. During any period in which there is a Defaulting Lender, for purposes of computing the amount of the obligation of each non-Defaulting Lender to acquire, refinance or fund participations in Letters of Credit or Swing Line Loans pursuant to Sections 2.03 and 2.04, the “Pro Rata Share Percentage” of each non-Defaulting Lender shall be computed without giving effect to the Commitment of that Defaulting Lender; provided, that, (i) each such reallocation shall be given effect only if, at the date the applicable Lender becomes a Defaulting Lender, no Default or Event of Default exists; and (ii) the aggregate obligation of each non-Defaulting Lender to acquire, refinance or fund participations in Letters of Credit and Swing Line Loans shall not exceed the positive difference, if any, of (1) the Commitment of that non-Defaulting Lender minus (2) the aggregate Outstanding Amount of the Advances and L/C Advances of that Lender.

     (b) Defaulting Lender Cure. If the Borrowers, the Administrative Agent, Swing Line Lender and the L/C Issuer agree in writing in their sole discretion that a Defaulting Lender should no longer be deemed to be a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any Cash Collateral), that Lender will, to the extent applicable, purchase that portion of outstanding Advances of the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Advances and funded and unfunded participations in Letters of Credit and Swing Line Loans to be held on a pro rata basis by the Lenders in accordance with their Pro Rata Share Percentage (without giving effect to Section 8.16(a)(iv)), whereupon that Lender will cease to be a Defaulting Lender; provided that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrowers while that Lender was a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.

The Administrative Agent, the L/C Issuer or the Swing Line Lender will promptly notify the Borrowers at the time the Administrative Agent, the L/C Issuer or the Swing Line Lender determines or is otherwise informed of the existence of a Defaulting Lender.

     Section 8.17 No Advisory or Fiduciary Relationship. In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), each of the Parent, the Borrowers and each other Loan Party acknowledges and agrees, and acknowledges its Affiliates’ understanding, that: (i) (A) the arranging and other services regarding this Agreement provided by the Administrative Agent, the Lenders and the Arrangers are arm’s-length commercial transactions between the Parent, the Borrowers, each other Loan Party and their respective Affiliates, on the one hand, and the Administrative Agent, the Lenders and the Arrangers, on the other hand, (B) each of the Parent, the Borrowers and the other Loan Parties has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (C) each of the Parent, the Borrowers and each other Loan Party is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; (ii) (A) each of the Administrative Agent, the Lenders and

94

each Arranger is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Borrowers, any other Loan Party or any of their respective Affiliates, or any other Person and (B) neither the Administrative Agent nor any Lender or Arranger has any obligation to the Borrowers, any other Loan Party or any of their respective Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (iii) the Administrative Agent, each Lender and each Arranger and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Parent, the Borrowers, the other Loan Parties and their respective Affiliates, and neither the Administrative Agent nor any Lender or Arranger has any obligation to disclose any of such interests to the Parent, the Borrowers, any other Loan Party or any of their respective Affiliates. To the fullest extent permitted by law, each of the Parent, each Borrower and each other Loan Party hereby waives and releases any claims that it may have against the Administrative Agent or any Lender or any Arranger with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

     Section 8.18 Interest Rate Limitation. Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the maximum rate of non-usurious interest permitted by applicable law (the “Maximum Rate”). If the Administrative Agent or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds such unpaid principal, refunded to the Borrowers. In determining whether the interest contracted for, charged, or received by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent permitted by applicable law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations hereunder.

     Section 8.19 Severability. If any provision of this Agreement or the other Loan Documents is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Agreement and the other Loan Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. Without limiting the foregoing provisions of this Section 8.19, if and to the extent that the enforceability of any provisions in this Agreement relating to Defaulting Lenders shall be limited by the bankruptcy code of the United States or any comparable bankruptcy, insolvency, receivership, reorganization or other debtor relief laws, as determined in good faith by the Administrative Agent, the L/C Issuer or the Swing Line Lender, as applicable, then such provisions shall be deemed to be in effect only to the extent not so limited.

[Signature Pages Follow]

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers or other representatives thereunto duly authorized, as of the date first above written.

BORROWERS: INVESCO HOLDING COMPANY LIMITED
By:
	Name:
	Title:
IVZ, INC.
By:
	Name:
	Title:
PARENT: INVESCO LTD.
By:
	Name:
	Title:

CREDIT AGREEMENT
Signature Page

ADMINISTRATIVE AGENT: BANK OF AMERICA, N.A., as Administrative Agent
By:
	Name:
	Title:

CREDIT AGREEMENT
Signature Page

LENDERS: BANK OF AMERICA, N.A., as a Lender, L/C Issuer and Swing Line Lender
By:
	Name:
	Title:

CREDIT AGREEMENT
Signature Page

CITIBANK
By:
	Name:
	Title:

CREDIT AGREEMENT
Signature Page

[OTHER LENDERS]
By:
	Name:
	Title:

CREDIT AGREEMENT
Signature Page

SCHEDULE I

LIST OF APPLICABLE LENDING OFFICES

Name of Initial Lender	Domestic Lending Office		Eurocurrency Lending Office
Bank of America, N.A.	See Schedule 8.02
Citibank N.A.	1615 Brett Road, Building III		1615 Brett Road, Building III
	New Castle, Delaware 19720		New Castle, Delaware 19720
	Attention:	Vince Napoli	Attention:	Vince Napoli
	Telephone:	302-894-6052	Telephone:	302-894-6052
	Facsimile:	212-994-0847	Facsimile:	212-994-0847
Morgan Stanley Bank, N.A.	201 South Main Street, 5th Floor		201 South Main Street, 5th Floor
	Salt Lake City, UT 84111		Salt Lake City, UT 84111
	Attention:	Carrie D. Johnson	Attention:	Carrie D. Johnson
	Telephone:	801-236-3655	Telephone:	801-236-3655
	Facsimile:	718-233-0967	Facsimile:	718-233-0967
The Bank of New York Mellon	One Wall Street, 17th Floor		One Wall Street, 17th Floor
	New York, New York 10286		New York, New York 10286
	Attention:	Paulette Truman	Attention:	Paulette Truman
	Telephone:	212-635-6407	Telephone:	212-635-6407
	Facsimile:	212-809-9520	Facsimile:	212-809-9520
SunTrust Bank	303 Peachtree Street, 10th Floor		303 Peachtree Street, 10th Floor
	Atlanta, Georgia 30308		Atlanta, Georgia 30308
	Attention:	Deborah Scruggs	Attention:	Deborah Scruggs
	Telephone:	404-230-1938	Telephone:	404-230-1938
	Facsimile:	404-588-4402	Facsimile:	404-588-4402
HSBC Bank USA, NA	One HSBC Center		One HSBC Center
	Buffalo, New York 14203		Buffalo, New York 14203
	Attention:	Donna L. Riley	Attention:	Donna L. Riley
	Telephone:	716-841-4178	Telephone:	716-841-4178
	Facsimile:	716-841-0296	Facsimile:	716-841-0296
Toronto Dominion (New York) LLC	31 West 52nd Street		31 West 52nd Street
	New York, New York 10019		New York, New York 10019
	Attention:	Gail Cuthbert	Attention:	Gail Cuthbert
	Telephone:	416-307-6107	Telephone:	416-307-6107
	Facsimile:	416-983-1708	Facsimile:	416-983-1708
JPMorgan Chase Bank	270 Park Avenue, Floor 4		270 Park Avenue, Floor 4
	New York, New York 10017		New York, New York 10017
	Attention:	Ayesha Umer	Attention:	Ayesha Umer
	Telephone:	212-270-6851	Telephone:	212-270-6851
	Facsimile:	212-270-1511	Facsimile:	212-270-1511

Schedule I

Name of Initial Lender	Domestic Lending Office		Eurocurrency Lending Office
State Street Bank and Trust Company	100 Huntington Avenue, Tower 2		100 Huntington Avenue, Tower 2
	Boston, Massachusetts 02206		Boston, Massachusetts 02206
	Attention:	Eola Romano	Attention:	Eola Romano
	Telephone:	617-937-8807	Telephone:	617-937-8807
	Facsimile:	617-937-8833	Facsimile:	617-937-8833
Wells Fargo Bank, National Association	90 South 7th Street		90 South 7th Street
	MAC N9305-075		MAC N9305-075
	Minneapolis, Minnesota 55402		Minneapolis, Minnesota 55402
	Attention:	Thomas Doddridge	Attention:	Thomas Doddridge
	Telephone:	312-781-0722	Telephone:	312-781-0722
	Facsimile:	312-845-8606	Facsimile:	312-845-8606
Credit Suisse AG, Cayman Islands	Eleven Madison Avenue		Eleven Madison Avenue
Branch	New York, New York 10010		New York, New York 10010
	Attention:	Jay Chall	Attention:	Jay Chall
	Telephone:	212-325-9010	Telephone:	212-325-9010
	Facsimile:	212-743-1843	Facsimile:	212-743-1843
Goldman Sachs Bank USA	200 West Street		200 West Street
	New York, New York 10282		New York, New York 10282
	Attention:	Andrew Caditz	Attention:	Andrew Caditz
	Telephone:	212-934-3921	Telephone:	212-934-3921
	Facsimile:	917-977-3966	Facsimile:	917-977-3966
Barclays Bank PLC	Level 11, 1 Churchill Place		Level 11, 1 Churchill Place
	London, E14 5HP		London, E14 5HP
	Attention:	Mike Moore	Attention:	Mike Moore
	Telephone:	44 (0) 20 7116 6347	Telephone:	44 (0) 20 7116 6347
	Facsimile:	N/A	Facsimile:	N/A
BNP Paribas	787 Seventh Avenue		787 Seventh Avenue
	New York, New York 10019		New York, New York 10019
	Attention:	Sean Bradley	Attention:	Sean Bradley
	Telephone:	212-841-2108	Telephone:	212-841-2108
	Facsimile:	212-841-2717	Facsimile:	212-841-2717

Schedule I

SCHEDULE 1.01

COMMITMENTS

Lender	Commitment		Applicable Percentage
Bank of America, N.A.	$	120,000,000.00		9.600000000	%
Citibank N.A.	$	120,000,000.00		9.600000000	%
The Bank of New York Mellon	$	107,000,000.00		8.560000000	%
HSBC Bank USA, NA	$	107,000,000.00		8.560000000	%
Morgan Stanley Bank, N.A.	$	107,000,000.00		8.560000000	%
SunTrust Bank	$	107,000,000.00		8.560000000	%
Toronto Dominion (New York) LLC	$	107,000,000.00		8.560000000	%
JPMorgan Chase Bank, N.A.	$	75,000,000.00		6.000000000	%
State Street Bank and Trust Company	$	75,000,000.00		6.000000000	%
Wells Fargo Bank, National Association	$	75,000,000.00		6.000000000	%
Credit Suisse AG, Cayman Islands Branch	$	75,000,000.00		6.000000000	%
Goldman Sachs Bank USA	$	75,000,000.00		6.000000000	%
Barclays Bank PLC	$	50,000,000.00		4.000000000	%
BNP Paribas	$	50,000,000.00		4.000000000	%
Total	$	1,250,000,000.00		100.00000000	%

Schedule 1.01

SCHEDULE 1.02

MANDATORY COST FORMULA

1. The Mandatory Cost (to the extent applicable) is an addition to the interest rate to compensate Lenders for the cost of compliance with:

(a)	the requirements of the Bank of England and/or the Financial Services Authority (or, in either case, any other authority which replaces all or any of its functions); or
(b)	the requirements of the European Central Bank.

2.	On the first day of each Interest Period (or as soon as practicable thereafter) the Administrative Agent shall calculate, as a percentage rate, a rate (the “Additional Cost Rate”) for each Lender, in accordance with the paragraphs set out below. The Mandatory Cost will be calculated by the Administrative Agent as a weighted average of the Lenders’ Additional Cost Rates (weighted in proportion to the percentage participation of each Lender in the relevant Loan) and will be expressed as a percentage rate per annum. The Administrative Agent will, at the request of the Borrowers or any Lender, deliver to the Borrowers or such Lender as the case may be, a statement setting forth the calculation of any Mandatory Cost.
3.	The Additional Cost Rate for any Lender lending from a Eurocurrency Lending Office in a Participating Member State will be the percentage notified by that Lender to the Administrative Agent. This percentage will be certified by such Lender in its notice to the Administrative Agent as the cost (expressed as a percentage of such Lender’s participation in all Advances made from such Eurocurrency Lending Office) of complying with the minimum reserve requirements of the European Central Bank in respect of Advances made from that Eurocurrency Lending Office.
4.	The Additional Cost Rate for any Lender lending from a Eurocurrency Lending Office in the United Kingdom will be calculated by the Administrative Agent as follows:

(a) in relation to any Advance in Sterling:

AB+C(B-D)+E x 0.01	per cent per annum
100 - - (A+C)

(b) in relation to any Advance in any currency other than Sterling:

E x 0.01	per cent per annum
300

Schedule 1.02

Where:

“A”	is the percentage of Eligible Liabilities (assuming these to be in excess of any stated minimum) which that Lender is from time to time required to maintain as an interest free cash ratio deposit with the Bank of England to comply with cash ratio requirements.
“B”	is the percentage rate of interest (excluding the Applicable Margin, the Mandatory Cost and any interest charged on overdue amounts pursuant to Section 2.07(b) and, in the case of interest (other than on overdue amounts) charged at the Default Rate, without counting any increase in interest rate effected by the charging of the Default Rate) payable for the relevant Interest Period of such Advance.
“C”	is the percentage (if any) of Eligible Liabilities which that Lender is required from time to time to maintain as interest bearing Special Deposits with the Bank of England.
“D”	is the percentage rate per annum payable by the Bank of England to the Administrative Agent on interest bearing Special Deposits.
“E”	is designed to compensate Lenders for amounts payable under the Fees Regulations and is calculated by the Administrative Agent as being the average of the most recent rates of charge supplied by the Lenders to the Administrative Agent pursuant to paragraph 7 below and expressed in pounds per £1,000,000.

5. For the purposes of this Schedule:

(a)	“Eligible Liabilities” and “Special Deposits” have the meanings given to them from time to time under or pursuant to the Bank of England Act 1998 or (as may be appropriate) by the Bank of England;
(b)	“Fees Regulations” means the FSA Supervision Manual or such other law or regulation as may be in force from time to time in respect of the payment of fees for the acceptance of deposits;
(c)	“Fee Tariffs” means the fee tariffs specified in the Fees Regulations under the activity group A.1 Deposit acceptors (ignoring any minimum fee or zero rated fee required pursuant to the Fees Regulations but taking into account any applicable discount rate);
(d)	“EMU Legislation” means the legislative measures of the European Council for the introduction of, changeover to or operation of a single or unified European currency.
(e)	“Participating Member State” means each state so described in any EMU Legislation.

Schedule 1.02

(f) “Tariff Base” has the meaning given to it in, and will be calculated in accordance with, the Fees Regulations.

6.	In application of the above formulae, A, B, C and D will be included in the formulae as percentages (i.e. 5% will be included in the formula as 5 and not as 0.05). A negative result obtained by subtracting D from B shall be taken as zero. The resulting figures shall be rounded to four decimal places.
7.	If requested by the Administrative Agent or the Borrowers, each Lender with a Eurocurrency Lending Office in the United Kingdom or a Participating Member State shall, as soon as practicable after publication by the Financial Services Authority, supply to the Administrative Agent and the Borrowers, the rate of charge payable by such Lender to the Financial Services Authority pursuant to the Fees Regulations in respect of the relevant financial year of the Financial Services Authority (calculated for this purpose by such Lender as being the average of the Fee Tariffs applicable to such Lender for that financial year) and expressed in pounds per £1,000,000 of the Tariff Base of such Lender.
8.	Each Lender shall supply any information required by the Administrative Agent for the purpose of calculating its Additional Cost Rate. In particular, but without limitation, each Lender shall supply the following information in writing on or prior to the date on which it becomes a Lender:

(a)	its jurisdiction of incorporation and the jurisdiction of the Eurocurrency Lending Office out of which it is making available its participation in the relevant Advance; and
(b)	any other information that the Administrative Agent may reasonably require for such purpose.

Each Lender shall promptly notify the Administrative Agent in writing of any change to the information provided by it pursuant to this paragraph.

9.

The percentages or rates of charge of each Lender for the purpose of A, C and E above shall be determined by the Administrative Agent based upon the information supplied to it pursuant to paragraphs 7 and 8 above and on the assumption that, unless a Lender notifies the Administrative Agent to the contrary, each Lender’s obligations in relation to cash ratio deposits, Special Deposits and the Fees Regulations are the same as those of a typical bank from its jurisdiction of incorporation with a Eurocurrency Lending Office in the same jurisdiction as such Lender’s Eurocurrency Lending Office.

10.

The Administrative Agent shall have no liability to any Person if such determination results in an Additional Cost Rate which over- or under-compensates any Lender and shall be entitled to assume that the information provided by any Lender pursuant to paragraphs 3, 7 and 8 above is true and correct in all respects.

Schedule 1.02

11.	The Administrative Agent shall distribute the additional amounts received as a result of the Mandatory Cost to the Lenders on the basis of the Additional Cost Rate for each Lender based on the information provided by each Lender pursuant to paragraphs 3, 7 and 8 above.
12.	Any determination by the Administrative Agent pursuant to this Schedule in relation to a formula, the Mandatory Cost, an Additional Cost Rate or any amount payable to a Lender shall, in the absence of manifest error, be conclusive and binding on all parties hereto.
13.	The Administrative Agent may from time to time, after consultation with the Borrowers and the Lenders, determine and notify to all parties any amendments which are required to be made to this Schedule in order to comply with any change in law, regulation or any requirements from time to time imposed by the Bank of England, the Financial Services Authority or the European Central Bank (or, in any case, any other authority which replaces all or any of its functions) and any such determination shall, in the absence of manifest error, be conclusive and binding on all parties hereto.

Schedule 1.02

SCHEDULE 4.01(b)

SUBSIDIARIES

	Company Name	Country
1.	1371 Preferred Inc.	Canada
2.	A I M Capital Management Company Limited	Ireland
3.	AIM GP Canada Inc	Canada
4.	AMVESCAP Limited	United Kingdom
5.	AT Planning Services, Inc.	United States
6.	Atlantic Trust Group, Inc.	United States
7.	Atlantic Wealth Holdings Limited	United Kingdom
8.	Atlantic Wealth Management International Limited	Jersey
9.	Atlantic Wealth Management Limited	United Kingdom
10.	C M Investment Nominees Limited	United Kingdom
11.	Chancellor Citiventure 96 Partner (Cayman) Ltd	Cayman Islands
12.	Coff Associates (Cayman) Limited	Cayman Islands
13.	CPCO Associates (Cayman) Limited	Cayman Islands
14.	Elliot Associates Limited	United Kingdom
15.	Finemost Limited	United Kingdom
16.	Fund Management Company	USA
17.	Huaneng Invesco WLR Investment Consulting Company Ltd.	China
18.	HVH Immobilien- und Beteiligungs GmbH	Germany
19.	HVH USA, Inc.	USA
20.	IAS Asset I LLC	United States
21.	IAS Operating Partnership LP	United States
22.	IMC Investments I LLC	United States
23.	INVESCO (B.V.I.) NOMINEES LIMITED	Virgin Islands, British
24.	INVESCO (Cayman Islands) Ltd.	Cayman Islands
25.	Invesco A I M Management Company Limited	Ireland
26.	Invesco Administration Services Limited	United Kingdom
27.	Invesco Advisers, Inc.*	USA
28.	Invesco Aim Global Holdings, Inc.	USA
29.	Invesco Aim Retirement Services, Inc.	USA
30.	INVESCO Asset Management (Bermuda) Ltd	Bermuda
31.	Invesco Asset Management (Japan) Limited	Japan
32.	Invesco Asset Management (Schweiz) AG	Switzerland
33.	Invesco Asset Management Asia Limited	Hong Kong
34.	Invesco Asset Management Australia (Holdings) Ltd	Australia
35.	Invesco Asset Management Deutschland GmbH	Germany
36.	INVESCO Asset Management Ireland Holdings Limited	Ireland
37.	INVESCO Asset Management Ireland Limited	Ireland
38.	Invesco Asset Management Limited	United Kingdom

* Material Subsidiaries

Schedule 4.01(b)

	Company Name	Country
39.	Invesco Asset Management Österreich GmbH	Austria
40.	Invesco Asset Management Pacific Limited	Hong Kong
41.	Invesco Asset Management SA	France
42.	Invesco Asset Management Singapore Ltd	Singapore
43.	Invesco Australia Limited	Australia
44.	Invesco Canada Holdings Inc.	Canada
45.	INVESCO CE SA	Belgium
46.	Invesco CE Services SA	Belgium
47.	INVESCO Continental Europe Holdings SA	Luxembourg
48.	INVESCO Distributors, Inc.	USA
49.	Invesco Fund Managers Limited*	United Kingdom
50.	INVESCO Funds Group, Inc.	USA
51.	INVESCO Global Asset Management (Bermuda) Limited	Bermuda
52.	INVESCO Global Asset Management Limited	Ireland
53.	Invesco Global Investment Funds Limited	United Kingdom
54.	Invesco Group Limited	United Kingdom
55.	Invesco Group Services, Inc.	USA
56.	Invesco GT Asset Management PLC	United Kingdom
57.	Invesco Holding Company Limited	United Kingdom
58.	INVESCO Holding Germany Ltd & Co OHG	Germany
59.	INVESCO Holland B.V.	Netherlands
60.	Invesco Hong Kong Limited	Hong Kong
61.	Invesco Hungary LLC	Hungary
62.	Invesco Inc.	Canada
63.	Invesco Insurance Agency, Inc.	USA
64.	INVESCO International (Southern Africa) Limited	South Africa
65.	Invesco International Holdings Limited	United Kingdom
66.	INVESCO International Limited	Jersey
67.	INVESCO International Nominees Limited	Jersey
68.	Invesco Investment Services, Inc.	USA
69.	Invesco Investments (Bermuda) Ltd.	Bermuda
70.	Invesco Kapitalanlagegesellschaft mbH	Germany
71.	INVESCO Management GmbH	Germany
72.	Invesco Management Group, Inc.	USA
73.	INVESCO Management S.A.	Luxembourg
74.	Invesco Mortgage Capital Inc.	United States
75.	INVESCO National Trust Company	USA
76.	Invesco North American Group Limited	United Kingdom
77.	Invesco North American Holdings, Inc.	USA
78.	Invesco Pacific Group Limited	United Kingdom
79.	Invesco Pacific Holdings Limited	Bermuda
80.	INVESCO Pacific Partner Ltd	Bermuda

* Material Subsidiaries

Schedule 4.01(b)

	Company Name	Country
81.	Invesco Pension Trustees Limited	United Kingdom
82.	Invesco Perpetual Life Limited	United Kingdom
83.	INVESCO Powershares Capital Management Ireland Limited	Ireland
84.	Invesco PowerShares Capital Management LLC*	USA
85.	INVESCO Private Capital Investments, Inc.	USA
86.	INVESCO Private Capital Verwaltung GMBH (in liquidation 25.4.07)	Germany
87.	Invesco Private Capital, Inc.	United States
88.	INVESCO Properties Limited	Ireland
89.	INVESCO Real Estate Germany LLC	USA
90.	INVESCO Real Estate GmbH	Germany
91.	Invesco Real Estate Limited	United Kingdom
92.	Invesco Real Estate Management S.a.r.l.	Luxembourg
93.	Invesco Realty Asia I, Ltd	Cayman Islands
94.	INVESCO Realty, Inc.	USA
95.	Invesco Savings Scheme (Nominees) Limited	United Kingdom
96.	Invesco Senior Secured Management, Inc.	USA
97.	INVESCO Services Ltd OHG	Germany
98.	Invesco Taiwan Limited	R.O.C.
99.	Invesco Trimark Dealer Inc./Courtage Invesco Trimark Inc.	Canada
100.	Invesco Trimark Ltd./Invesco Trimark Ltée	Canada
101.	Invesco UK Holdings PLC	United Kingdom
102.	Invesco UK Limited	United Kingdom
103.	Invesco WLR Limited	Hong Kong
104.	Invesco WLR Private Equity Investment Management Limited	Hong Kong
105.	Investment Fund Administrators Limited	Ireland
106.	IPE Ross Management Ltd	united states
107.	IRE (Cayman) Limited	Cayman Islands
108.	IRE (China) Limited	China
109.	IRE (Hong Kong) Limited	Hong Kong
110.	IRE Japan, Ltd	Japan
111.	IVZ Finance Limited	Ireland
112.	IVZ Immobilien Verwaltungs GmbH	Germany
113.	IVZ Mauritius Services Private Limited	Mauritius
114.	IVZ, Inc.	USA
115.	James Bryant Limited	United Kingdom
116.	PCM Properties LLC	United States
117.	Perpetual Holdings, Inc.	United States
118.	Perpetual plc	United Kingdom
119.	Perpetual Portfolio Management Limited	United Kingdom
120.	Perpetual Unit Trust Management (Nominees) Limited	United Kingdom
121.	Ross CG Management LP	United states
122.	Ross Expansion Associates LP	United States

* Material Subsidiaries

Schedule 4.01(b)

	Company Name	Country
123.	Sermon Lane Nominees Limited	United Kingdom
124.	Sovereign G/.P. Holdings Inc	USA
125.	Stein Roe Investment Counsel, Inc.	United States
126.	V.V. Edinburgh R.W. G.P. Limited (in liquidation)	United Kingdom
127.	V.V. Epsom G.P. Limited (in liquidation)	United Kingdom
128.	V.V. General Partner Limited (in liquidation)	United Kingdom
129.	V.V. Glasgow (No.1) G.P. Limited (in liquidation)	United Kingdom
130.	V.V. Milton Keynes G.P. Limited (in liquidation)	United Kingdom
131.	V.V. Nominees Limited (in liquidation)	United Kingdom
132.	V.V. Northampton (No.2) G.P. Limited (in liquidation)	United Kingdom
133.	V.V. Northampton G.P. Limited (in liquidation)	United Kingdom
134.	V.V. Reading G.P. Limited (in liquidation)	United Kingdom
135.	V.V. Real Property G.P. Limited (in liquidation)	United Kingdom
136.	V.V. Real Property Nominees Limited (in liquidation)	United Kingdom
137.	V.V. Redhill G.P. Limited (in liquidation)	United Kingdom
138.	V.V. Slough G.P. Limited (in liquidation)	United Kingdom
139.	V.V. Soho G.P. Limited (in liquidation)	United Kingdom
140.	V.V. Stockton G.P. Limited (in liquidation)	United Kingdom
141.	V.V. Watford G.P. Limited (in liquidation)	United Kingdom
142.	VV CR 1s.r.o.	Czech Republic
143.	VV Immobilien Verwaltungs GmbH	Germany
144.	VV Immobilien Verwaltungs und Beteiligungs GmbH	Germany
145.	VV USA LLC	USA
146.	W.L. Ross & Co, LLC	United States
147.	W.L. Ross & Co. (India) LLC	United States
148.	W.L. Ross M & T, LLC	United States
149.	W.L.Ross & Co., LLC	United States
150.	WL Ross (India) Private Limited	United States
151.	WL Ross DIP Management LLC	United States
152.	WLR China Energy Associates Ltd	Cayman Islands
153.	WLR Euro Wagon Management Ltd	United states

* Material Subsidiaries

Schedule 4.01(b)

SCHEDULE 4.01(d)

REQUIRED AUTHORIZATIONS

None.

Schedule 4.01(d)

SCHEDULE 4.01(i)

DISCLOSED LITIGATION

None.

Schedule 4.01(i)

SCHEDULE 5.02(a)

EXISTING LIENS

None.

SCHEDULE 8.02

ADMINISTRATIVE AGENT’S OFFICE;
CERTAIN ADDRESSES FOR NOTICES

BORROWERS:

Invesco Holding Company Limited
1555 Peachtree Street, N.E.
Atlanta, Georgia 30309
Attention: Rod Ellis
Telephone: 404-479-2919
Telecopier: 404-962-8354
E-Mail: rod_ellis@invesco.com
Website Address: Invesco.com

IVZ, Inc.
1555 Peachtree Street, N.E.
Atlanta, Georgia 30309
Attention: Rod Ellis
Telephone: 404-479-2919
Telecopier: 404-962-8354
E-Mail: rod_ellis@invesco.com
Website Address: Invesco.com

ADMINISTRATIVE AGENT:

Administrative Agent’s Office (For payments and Requests for Credit Extensions):

Bank of America, N.A.
One Independence Center
101 North Tryon Street
Mail Code: NC1-001-04-39
Charlotte, North Carolina 28255-0001
Attention: Rose M. Bollard
Telephone: 980-386-2881
Telecopier: 704-409-0355
E-Mail: rose.ballard@baml.com

Wiring Information:

Account No.: 1366212250600
Reference: IVZ, Inc.
ABA No.: 026009593

Other Notices as Administrative Agent:

Bank of America, N.A.
Agency Management
Bank of America Plaza
101 South Tryon Street
Mail Code: NC1-002-15-36
Charlotte, North Carolina 28255-0001
Attention: William A. Cessna
Telephone: 980-388-1639
Telecopier: 704-264-2501
E-Mail: william.a.cessna@baml.com

SWING LINE LENDER:

Bank of America, N.A.
One Independence Center
101 North Tryon Street
Mail Code: NC1-001-04-39
Charlotte, North Carolina 28255-0001
Attention: Rose M. Bollard
Telephone: 980-386-2881
Telecopier: 704-409-0355
E-Mail: rose.ballard@baml.com

Wiring Information:

Account No.: 1366212250600
Reference: IVZ, Inc.
ABA No.: 026009593

LC ISSUER’S OFFICE:

(For fee payments due LC Issuer only and new LC requests and amendments):

Bank of America, N.A.
Trade Operations
1 Fleet Way
Mail Code: PA6-580-02-30
Scranton, Pennsylvania 18507
Attention: Mary J. Cooper
Telephone: 570-330-4235
Telecopier: 570-330-4186
E-Mail: mary.j.cooper@bankofamerica.com

Wiring Information:

Bank of America, N.A, Charlotte, NC
Account No.: 04535-883980
Reference: IVZ, Inc. and LC #
ABA No.: 026009593 (New York, NY)
Attention: Scranton Standby

EXHIBIT A
FORM OF NOTE

U.S.$                     Dated: May 24, 2010

     FOR VALUE RECEIVED, the undersigned, INVESCO HOLDING COMPANY LIMITED, a company organized under the laws of England and Wales (“IHCL”), and IVZ, INC., a Delaware corporation (together with IHCL, the “Borrowers” and each individually, a “Borrower”), HEREBY PROMISE TO PAY to the order of                                                              (the “Lender”) for the account of its Applicable Lending Office on the Termination Date (each as defined in the Credit Agreement referred to below) the principal sum of U.S.$[amount of the Lender’s Commitment in figures] or, if less, the aggregate principal amount of the Advances made by the Lender to the Borrowers pursuant to the Credit Agreement dated as of May 24, 2010 among the Borrowers, INVESCO LTD., the Lender and certain other lenders from time to time party thereto, and BANK OF AMERICA, N.A., as Administrative Agent for the Lender and such other lenders and as Swing Line Lender and L/C Issuer (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) outstanding on the Termination Date. Capitalized terms used but not defined herein shall have the meanings specified therefor in the Credit Agreement.

     The Borrowers promise to pay interest on the unpaid principal amount of each Advance from the date of such Advance until such principal amount is paid in full, at such interest rates, and payable at such times, as are specified in the Credit Agreement.

     Both principal and interest in respect of each Advance are payable to Bank of America, N.A., as Administrative Agent, at its account maintained at Bank of America, N.A. with its office at Charlotte, North Carolina, ABA No. 026009593, Account No. 1366212250600, Bank of America, N.A. New York, NY Account Name: Corporate Credit Support, Re: Invesco in same day funds. Each Advance owing to the Lender by the Borrowers pursuant to the Credit Agreement, and all payments made on account of principal thereof, shall be recorded by the Lender and, prior to any transfer hereof, endorsed on the grid attached hereto which is part of this Note.

     This Note is one of the Notes referred to in, and is entitled to the benefits of, the Credit Agreement. The Credit Agreement, among other things, (i) provides for the making of Advances by the Lender to the Borrowers from time to time in an aggregate amount not to exceed at any time outstanding the Dollar amount first above mentioned or the Equivalent thereof in Sterling, the indebtedness of the Borrowers resulting from each such Advance being evidenced by this Note, (ii) contains provisions for determining the Dollar Equivalent of Advances denominated in Sterling and (iii) contains provisions for acceleration of the maturity hereof upon the happening of certain stated events and also for prepayments on account of principal hereof prior to the maturity hereof upon the terms and conditions therein specified.

[Remainder of page left blank intentionally; signature page follows.]

A-1
Form of Note

     THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

INVESCO HOLDING COMPANY LIMITED
By:
	Name:
	Title:
IVZ, INC.
By:
	Name:
	Title:

A-2
Form of Note

ADVANCES AND PAYMENTS OF PRINCIPAL

		Amount of
		Principal Paid or	Unpaid Principal
Date	Amount of Advance	Prepaid	Balance	Notation Made By

A-3
Form of Note

EXHIBIT B-1
FORM OF NOTICE OF BORROWING

[Date]

Bank of America, N.A.
One Independence Center
101 North Tryon Street
Mail Code: NC1-001-04-39
Charlotte, North Carolina 28255-0001
Attention: Rose M. Bollard

Ladies and Gentlemen:

     Reference is made to that certain Credit Agreement dated as of May 24, 2010 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among INVESCO HOLDING COMPANY LIMITED, a company organized under the laws of England and Wales (“IHCL”), IVZ, INC., a Delaware corporation (“IVZ”, together with IHCL, the “Borrowers” and each individually, a “Borrower”), INVESCO LTD., the Lenders from time to time party thereto, and BANK OF AMERICA, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer. Capitalized terms used but not defined herein shall have the meanings specified therefor in the Credit Agreement.

     IVZ, in its capacity as Borrower Agent, hereby give you notice, irrevocably, pursuant to Section 2.02 of the Credit Agreement that the Borrowers hereby request a Borrowing under the Credit Agreement, and in that connection sets forth below the information relating to such Borrowing (the “Proposed Borrowing”) as required by Section 2.02(a) of the Credit Agreement:

(i)	The Business Day of the Proposed Borrowing is                     , 20_.
(ii)	The Type of Advances comprising the Proposed Borrowing is [Base Rate Advances] [Eurocurrency Rate Advances].
(iii)	The aggregate amount of the Proposed Borrowing is [$                    ] [£                    ].
[(iv)	The initial Interest Period for each Eurocurrency Rate Advance made as part of the Proposed Borrowing is                      month[s].]

     The undersigned hereby certifies that the following statements are true on the date hereof, and will be true on the date of the Proposed Borrowing:

     (A) the representations and warranties contained in Section 4.01 (other than clauses (g) and (i)(i) of Section 4.01) of the Credit Agreement are correct in all material respects, before and after giving effect to the Proposed Borrowing and to the application

B-1-1
Form of Notice of Borrowing

of the proceeds therefrom, as though made on and as of such date except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been correct in all material respects on and as of such earlier date (other than in the case of the representations and warranties made in Section 4.01(d), which shall be correct in all material respects on and as of the date of the Proposed Borrowing as though made on and as of such date, without regard to any earlier date referenced therein); and

     (B) no event has occurred and is continuing, or would result from such Proposed Borrowing or from the application of the proceeds therefrom, that constitutes a Default.

Very truly yours, IVZ, INC., as Borrower Agent
By:
	Name:
	Title:

B-1-2
Form of Notice of Borrowing

EXHIBIT B-2
FORM OF SWING LINE LOAN NOTICE

Date:                     , 201__

To: Bank of America, N.A., as Swing Line Lender
Bank of America, N.A., as Administrative Agent

Ladies and Gentlemen:

     Reference is made to that certain Credit Agreement dated as of May 24, 2010 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among INVESCO HOLDING COMPANY LIMITED, a company organized under the laws of England and Wales (“IHCL”), IVZ, INC., a Delaware corporation (“IVZ”, together with IHCL, the “Borrowers” and each individually, a “Borrower”), INVESCO LTD., the Lenders from time to time party thereto, and BANK OF AMERICA, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer. Capitalized terms used but not defined herein shall have the meanings specified therefor in the Credit Agreement.

     IVZ, in its capacity as Borrower Agent, hereby request a Swing Line Loan:

1.	On                                                              (a Business Day).
2.	In the amount of $                    .

     The Swing Line Borrowing requested herein complies with the requirements of the provisos to the first sentence of Section 2.04(a) of the Credit Agreement.

Very Truly Yours, IVZ, INC., as Borrower Agent
By:
	Name:
	Title:

B-2-1
Form of Swing Line Loan Notice

EXHIBIT C
FORM OF ASSIGNMENT AND ASSUMPTION

ASSIGNMENT AND ASSUMPTION

     This Assignment and Assumption (this “Assignment and Assumption”) is dated as of the Effective Date set forth below and is entered into by and between [the][each]¹ Assignor identified in item 1 below ([the][each, an] “Assignor”) and [the][each]² Assignee identified in item 2 below ([the][each, an] “Assignee”). [It is understood and agreed that the rights and obligations of [the Assignors][the Assignees]³ hereunder are several and not joint.]⁴ Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.

     For an agreed consideration, [the][each] Assignor hereby irrevocably sells and assigns to [the Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases and assumes from [the Assignor][the respective Assignors], subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below (i) all of [the Assignor’s][the respective Assignors’] rights and obligations in [its capacity as a Lender][their respective capacities as Lenders] under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of [the Assignor][the respective Assignors] under the respective facilities identified below (including, without limitation, the Letters of Credit and the Swing Line Loans included in such facilities⁵) and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of [the Assignor (in its capacity as a Lender)][the respective Assignors (in their respective capacities as Lenders)] against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned by [the][any] Assignor to [the][any] Assignee pursuant to clauses (i) and (ii) above being referred to herein collectively as [the][an] “Assigned Interest”). Each such sale and

1	For bracketed language here and elsewhere in this form relating to the Assignor(s), if the assignment is from a single Assignor, choose the first bracketed language. If the assignment is from multiple Assignors, choose the second bracketed language.
2	For bracketed language here and elsewhere in this form relating to the Assignee(s), if the assignment is to a single Assignee, choose the first bracketed language. If the assignment is to multiple Assignees, choose the second bracketed language.
3	Select as appropriate.
4	Include bracketed language if there are either multiple Assignors or multiple Assignees.
5	Include all applicable subfacilities.

C-1
Form of Assignment and Assumption

assignment is without recourse to [the][any] Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by [the][any] Assignor.

1.	Assignor[s]:
2.	Assignee[s]:                       [for each Assignee, indicate [Affiliate][Approved Fund] of [identify Lender]]
3.	Borrowers: INVESCO HOLDING COMPANY LIMITED and IVZ, INC.
4.	Administrative Agent: BANK OF AMERICA, N.A., as the administrative agent under the Credit Agreement
5.	Credit Agreement: Credit Agreement dated as of May 24, 2010 among INVESCO HOLDING COMPANY LIMITED, a company organized under the laws of England and Wales (“IHCL”), IVZ, INC., a Delaware corporation (together with IHCL, the “Borrowers” and each individually, a “Borrower”), INVESCO LTD., as Parent, the Lenders from time to time party thereto, and BANK OF AMERICA, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, as the same may be amended, restated, supplemented or otherwise modified from time to time.
6.	Assigned Interest:

		Aggregate Amount of		Percentage
		Commitment for all	Amount of	Assigned of
Assignor[s]6	Assignee[s]7	Lenders8	Commitment Assigned	Commitment9	CUSIP Number
		$	$	%
		$	$
		$	$	%

[7. Trade Date:                     ] ¹⁰

Effective Date:                     , 20___[ TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

6	List each Assignor, as appropriate.
7	List each Assignee, as appropriate.
8	Amounts in this column and in the column immediately to the right to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective Date.
9	Set forth, to at least 9 decimals, as a percentage of the Commitment of all Lenders thereunder.
10	To be completed if the Assignor and the Assignee intend that the minimum assignment amount is to be determined as of the Trade Date.

C-2
Form of Assignment and Assumption

     The terms set forth in this Assignment and Assumption are hereby agreed to:

ASSIGNOR [NAME OF ASSIGNOR]
By:
	Title:
ASSIGNEE [NAME OF ASSIGNEE]
By:
	Title:

C-3
Form of Assignment and Assumption

Consented to and Accepted: BANK OF AMERICA, N.A. as Swing Line Lender and L/C Issuer
By:
	Title:
[Consented to and]11 Accepted: BANK OF AMERICA, N.A., as Administrative Agent
By:
	Title:
[Consented to:]12 IVZ, INC.
By:
	Title:
INVESCO HOLDING COMPANY LIMITED
By:
	Title:

11	To be added only if the consent of the Administrative Agent is required by the terms of the Credit Agreement.
12	To be added only if the consent of the Borrower is required by the terms of the Credit Agreement.

C-4
Form of Assignment and Assumption

ANNEX 1 TO ASSIGNMENT AND ASSUMPTION

STANDARD TERMS AND CONDITIONS FOR
ASSIGNMENT AND ASSUMPTION

     1. Representations and Warranties.

     1.1. Assignor. [The][Each] Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of [the][[the relevant] Assigned Interest, (ii) [the][such] Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document.

     1.2. Assignee. [The][Each] Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it meets all the requirements to be an assignee under Section 8.06(b)(iii), (v) and (vi) of the Credit Agreement (subject to such consents, if any, as may be required under Section 8.06(b)(iii) of the Credit Agreement), (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of [the][the relevant] Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type represented by [the][such] Assigned Interest and either it, or the Person exercising discretion in making its decision to acquire [the][such] Assigned Interest, is experienced in acquiring assets of such type, (v) it has received a copy of the Credit Agreement, and has received or has been accorded the opportunity to receive copies of the most recent financial statements delivered pursuant to Section 5.01(j) thereof, as applicable, and such other documents and information as it deems appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase [the][such] Assigned Interest, (vi) it has, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Assignment and Assumption and to purchase [the][such] Assigned Interest, and (vii) if it is a foreign lender, attached hereto is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by [the][such] Assignee; and (b) agrees that (i) it will, independently and without reliance upon the Administrative Agent, [the][any] Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will

C-5
Form of Assignment and Assumption

perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

     2. Payments. From and after the Effective Date, the Administrative Agent shall make all payments in respect of [the][each] Assigned Interest (including payments of principal, interest, fees and other amounts) to [the][the relevant] Assignor for amounts which have accrued to but excluding the Effective Date and to [the][the relevant] Assignee for amounts which have accrued from and after the Effective Date.

     3. General Provisions. This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in accordance with, the law of the State of New York.

C-6
Form of Assignment and Assumption

EXHIBIT D-1
FORM OF SUBSIDIARY GUARANTY

See attached.

D-1-1
Form of Subsidiary Guaranty

EXECUTION VERSION

GUARANTY

     This GUARANTY dated May 24, 2010 made by INVESCO ADVISERS, INC., a Delaware corporation, INVESCO NORTH AMERICAN HOLDINGS, INC., a Delaware corporation, and INVESCO MANAGEMENT GROUP INC., a Delaware corporation (each, individually, a “Guarantor” and collectively, the “Guarantors”), in favor of the Administrative Agent, the L/C Issuer and each of the Lenders (as each such term is defined in the Credit Agreement referred to below).

     PRELIMINARY STATEMENT. The Lenders and Bank of America, N.A., as Administrative Agent, L/C Issuer and Swing Line Lender are parties to a Credit Agreement dated as of the date hereof (said Agreement, as it may hereafter be amended, restated, supplemented or otherwise modified from time to time, being the “Credit Agreement”, the terms defined therein are used herein as therein defined) with Invesco Holding Company Limited, a company organized under the laws of England and Wales (“IHCL”), IVZ, Inc., a Delaware corporation (“IVZ”, and together with IHCL, collectively, the “Borrowers” and each individually, a “Borrower”) and Invesco Ltd. (the “Parent”). The Guarantors may receive a portion of the proceeds of the Advances under the Credit Agreement and will derive substantial direct and indirect benefit from the transactions contemplated by the Credit Agreement. It is a condition precedent to the effectiveness of the Credit Agreement and the making of Advances by the Lenders thereunder that the Guarantors shall have executed and delivered this Guaranty.

     NOW, THEREFORE, in consideration of the premises and in order to induce the Lenders to make Advances under the Credit Agreement from time to time, each Guarantor hereby agrees as follows:

     Section 1. Guaranty; Limitation of Liability. (a) Each Guarantor hereby, jointly and severally, unconditionally and irrevocably guarantees the punctual payment when due, whether at stated maturity, by acceleration or otherwise, of all obligations of each other Loan Party now or hereafter existing under the Loan Documents, whether for principal, interest, fees, expenses or otherwise (such obligations, including, without limitation, the obligations of the Borrowers under Section 2.15 of the Credit Agreement, being the “Guaranteed Obligations”), and agrees to pay any and all expenses (including reasonable counsel fees and expenses) incurred by the Administrative Agent, the L/C Issuer or any Lender in enforcing any rights under this Guaranty. Without limiting the generality of the foregoing, each Guarantor’s liability shall extend to all amounts that constitute part of the Guaranteed Obligations and would be owed by a Loan Party to the Administrative Agent, the L/C Issuer or any Lender under the Loan Documents but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving such Loan Party.

     (b) Each Guarantor hereby agrees that its obligations hereunder shall be joint and several and unconditional, irrespective of the validity, regularity or enforceability of any Loan Document, the absence of any action to enforce the same, any waiver or consent by the Administrative Agent, the L/C Issuer or any Lender with respect to any provisions hereof or thereof, the recovery of any judgment against either Borrower, any action to enforce the same, or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a Guarantor (other than a defense of payment in full or complete performance). Each

Guarantor hereby waives the benefit of diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of either Borrower, any right to require a proceeding first against such Borrower, protest, notice and all demands whatsoever and covenants that this Guaranty shall not be discharged except by complete performance of the obligations contained in the Credit Agreement, the Notes and this Guaranty. This Guaranty is a guarantee of payment and not of collection.

     (c) Each Guarantor, and by its acceptance of this Guaranty, the Administrative Agent, the L/C Issuer and each Lender, hereby confirms that it is the intention of all such Persons that this Guaranty and the obligations of each Guarantor hereunder not constitute a fraudulent transfer or conveyance for purposes of bankruptcy law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar foreign, federal or state law to the extent applicable to this Guaranty and the obligations of each Guarantor hereunder. To effectuate the foregoing intention, the Administrative Agent, the L/C Issuer, the Lenders and each Guarantor hereby irrevocably agree that the obligations of such Guarantor under this Guaranty at any time shall be limited to the maximum amount as will result in the obligations of such Guarantor under this Guaranty not constituting a fraudulent transfer or conveyance.

     Section 2. Waiver of Subrogation. Until the Credit Agreement is terminated and all of the Guaranteed Obligations have been paid in full, each Guarantor hereby irrevocably waives and agrees not to exercise any claim or other rights which it may now or hereafter acquire against either Borrower that arise from the existence, payment, performance or enforcement of such Borrower’s obligations under the Credit Agreement and each Guarantor’s obligations under this Guaranty, in any such instance including, without limitation, any right of subrogation, reimbursement, exoneration, contribution, indemnification, and any right to participate in any claim or remedy of the Administrative Agent, the L/C Issuer or the Lenders against either Borrower, whether or not such claim, remedy or right arises in equity, or under contract, statute or common law, including, without limitation, the right to take or receive from either Borrower, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security on account of such claim or other rights. If any amount shall be paid to a Guarantor in violation of the preceding sentence and any of the Guaranteed Obligations shall not have been paid in full, such amount shall have been deemed to have been paid to such Guarantor for the benefit of, and held in trust for the benefit of, the Administrative Agent, the L/C Issuer or the Lenders and shall forwith be paid to the Administrative Agent to be credited and applied to the Guaranteed Obligations in favor of the Administrative Agent, the L/C Issuer and the Lenders, whether matured or unmatured, in accordance with the terms of the Loan Documents. Each Guarantor acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by the Loan Documents and that the waiver set forth in this Section 2 is knowingly made in contemplation of such benefits.

     Section 3. No Set-Off. Each payment to be made by a Guarantor hereunder in respect of its obligations shall be payable in the currency or currencies in which such obligations are denominated, and shall be made without set-off, counterclaim, reduction or diminution of any kind or nature.

     Section 4. Obligations Absolute; Obligations Not Affected. The obligations of each Guarantor hereunder shall be continuing and shall remain in full force and effect until all the

Guaranteed Obligations have been paid and satisfied in full. The obligations of each Guarantor hereunder shall not be affected, impaired or diminished in any way by any act, omission, matter or thing whatsoever, occurring before, upon or after any demand for payment hereunder (and whether or not known or consented to by the Guarantors, the Administrative Agent, the L/C Issuer or any of the Lenders) which, but for this provision, might constitute a whole or partial defense to a claim against any Guarantor hereunder or might operate to release or otherwise exonerate any Guarantor from any of its obligations hereunder or otherwise affect such obligations, whether occasioned by default of any of the Lenders or otherwise, including, without limitation:

     (a) any limitation of status or power, disability, incapacity or other circumstance relating to either Borrower or any other Person, including any insolvency, bankruptcy, liquidation, reorganization, readjustment, composition, dissolution, winding-up or other proceeding involving or affecting either Borrower or any other Person;

     (b) any irregularity, defect, unenforceability or invalidity in respect of any indebtedness or other obligation of either Borrower or any other Person under the Loan Documents;

     (c) any failure of either Borrower, the Parent or any other Guarantor, whether or not without fault on its part, to perform or comply with any of the provisions of any Loan Document to which it is a party, or to give notice thereof to the Guarantors;

     (d) the taking or enforcing or exercising or the refusal or neglect to take or enforce or exercise any right or remedy from or against either Borrower or any other Person or their respective assets or the release or discharge of any such right or remedy;

     (e) the granting of time, renewals, extensions, compromises, concessions, waivers, releases, discharges and other indulgences to either Borrower or any other Person;

     (f) any change in the time, manner or place of payment of, or in any other term of, any of the Guaranteed Obligations, or any other amendment, variation, supplement, replacement or waiver of, or any consent to departure from, any of the Loan Documents, including, without limitation, any increase or decrease in the principal amount of or interest on Advances with respect to any of the Loan Documents;

     (g) any change in the ownership, control, name, objects, businesses, assets, capital structure or constitution of either Borrower, the Parent, such Guarantor, any other Guarantor or any other Person;

     (h) the occurrence of any change in the laws, rules, regulations or ordinances of any jurisdiction by any present or future action of any governmental authority or court amending, varying, reducing or otherwise affecting, or purporting to amend, vary, reduce or otherwise affect, any of the Guaranteed Obligations, the obligations of the Guarantors under this Guaranty or the obligations of the Parent under the Parent Guaranty; and

     (i) any other circumstance that might otherwise constitute a legal or equitable discharge or defense of either Borrower or the Parent under the Loan Documents to which it is a party or of the Guarantors in respect of this Guaranty (other than a defense of payment in full or complete performance).

     Section 5. Waiver. Without in any way limiting the provisions of Section 1 hereof, each Guarantor hereby waives notice of acceptance hereof, notice of any liability of such Guarantor hereunder, notice or proof of reliance by the Administrative Agent, the L/C Issuer or the Lenders upon the obligations of such Guarantor hereunder, and diligence, presentment, demand for payment on either Borrower, protest, notice of dishonor or non-payment of any of the Guaranteed Obligations, or other notice or formalities to either Borrower, the Parent or any Guarantor of any kind whatsoever.

     Section 6. No Obligation To Take Action Against the Borrowers. None of the Administrative Agent, the L/C Issuer or any of the Lenders shall have any obligation to enforce or exhaust any rights or remedies or to take any other steps under any security for the Guaranteed Obligations or against either Borrower or any other Person or any property of either Borrower or any other Person before the Administrative Agent, the L/C Issuer or the Lenders are entitled to demand payment and performance by the Guarantors of their liabilities and obligations under this Guaranty.

     Section 7. Dealing with the Borrowers and Others. The Administrative Agent, the L/C Issuer or the Lenders, without releasing, discharging, limiting or otherwise affecting in whole or in part the obligations and liabilities of each Guarantor hereunder and without the consent of or notice to any Guarantor, may:

     (a) grant time, renewals, extensions, compromises, concessions, waivers, releases, discharges and other indulgences to either Borrower or any other Person;

     (b) take or abstain from taking security or collateral from either Borrower or from perfecting security or collateral of either Borrower;

     (c) release, discharge, compromise, realize, enforce or otherwise deal with or do any act or thing in respect of (with or without consideration) any and all collateral, mortgages or other security given by either Borrower, the Parent, or any third party with respect to the obligations or matters contemplated by the Loan Documents;

     (d) accept compromises or arrangements from either Borrower or the Parent;

     (e) apply all monies at any time received from either Borrower or the Parent or from any security upon such part of the obligations as the Lenders may see fit or change any such application in whole or in part from time to time as the Lenders may see fit; and

     (f) otherwise deal with, or waive or modify their right to deal with, either Borrower and all other Persons and any security as the Lenders or the Administrative Agent or the L/C Issuer may see fit.

     Section 8. Governing Law, Waiver of Jury Trial.

     (a) This Guaranty shall be governed by, and construed in accordance with, the laws of the State of New York.

     (b) Each Guarantor hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of any New York State court or federal court of the United States of America sitting in New York City, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Guaranty, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in any such New York State court or, to the extent permitted by law, in such federal court. Each Guarantor agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Guaranty shall affect any right that any party may otherwise have to bring any action or proceeding relating to this Guaranty in the courts of any jurisdiction.

     (c) Each Guarantor hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Guaranty in any New York State or federal court. Each Guarantor hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

     (d) To the extent that any Guarantor has or hereafter may acquire any immunity from the jurisdiction of any court or from any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) with respect to itself or its property, each Guarantor hereby irrevocably waives such immunity in respect of its obligations under this Guaranty and the other Loan Documents.

     (e) Each Guarantor agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Guaranty shall affect any right that any party may otherwise have to bring any action or proceeding relating to this Guaranty in the courts of any jurisdiction.

     (f) Each Guarantor hereby irrevocably waives all right to trial by jury in any action, proceeding or counterclaim (whether based on contract, tort or otherwise) arising out of or relating to any of the Loan Documents, the transactions contemplated thereby or the actions of the Administrative Agent, the L/C Issuer or any Lender in the negotiation, administration, performance or enforcement thereof.

     Section 9. Judgment.

     (a) Rate of Exchange. If, for the purpose of obtaining judgment in any court, it is necessary to convert a sum due hereunder in another currency into Dollars, the parties hereto

agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall be that at which, in accordance with normal banking procedures, the Administrative Agent could purchase such other currency with Dollars in New York City, New York, at the close of business on the Business Day immediately preceding the day on which final judgment is given, together with any premiums and costs of exchange payable in connection with such purchase.

     (b) Indemnity. The obligation of each Guarantor in respect of any sum due from it to the Administrative Agent, the L/C Issuer or any Lender hereunder shall, notwithstanding any judgment in a currency other than Dollars, be discharged only to the extent that on the Business Day next succeeding receipt by the Administrative Agent, the L/C Issuer or such Lender of any sum adjudged to be so due in such other currency, the Administrative Agent, the L/C Issuer or such Lender, as the case may be, may, in accordance with normal banking procedures, purchase Dollars with such other currency. If the Dollars so purchased are less than the sum originally due to the Administrative Agent, the L/C Issuer or such Lender in Dollars, each Guarantor agrees, as a separate obligation and notwithstanding any such judgment, to indemnify the Administrative Agent, the L/C Issuer or such Lender against such loss, and if the Dollars so purchased exceed the sum originally due to any the Administrative Agent, the L/C Issuer or any Lender in Dollars, the Administrative Agent, the L/C Issuer or such Lender agrees to remit to such Guarantor such excess.

     Section 10. Reinstatement. Each Guarantor agrees that this Guaranty shall continue to be effective or be reinstated, as the case may be, at any time payment received by the Administrative Agent, the L/C Issuer or any Lender in respect of any Guaranteed Obligations is rescinded or must be restored for any reason, or is repaid by the Administrative Agent, the L/C Issuer or any Lender in whole or in part in good faith settlement of any pending or threatened avoidance claim.

[Signature Page Follows]

     IN WITNESS WHEREOF, each Guarantor has caused this Guaranty to be duly executed and delivered by its officer thereunto duly authorized as of the date first above written.

INVESCO ADVISERS, INC.
By:
	Name:
	Title:
INVESCO NORTH AMERICAN HOLDINGS, INC.
By:
	Name:
	Title:
INVESCO MANAGEMENT GROUP INC.
By:
	Name:
	Title:

EXHIBIT D-2
FORM OF PARENT GUARANTY

See attached.

D-2-1
Form of Parent Guaranty

EXECUTION VERSION

GUARANTY

     This GUARANTY dated May 24, 2010 made by INVESCO LTD., a company organized under the laws of Bermuda (the “Guarantor”), in favor of the Administrative Agent, the L/C Issuer and each of the Lenders (as each such term is defined in the Credit Agreement referred to below).

     PRELIMINARY STATEMENT. The Lenders and Bank of America, N.A., as Administrative Agent, L/C Issuer and Swing Line Lender are parties to a Credit Agreement dated as of the date hereof (said Agreement, as it may hereafter be amended, restated, supplemented or otherwise modified from time to time, being the “Credit Agreement”, the terms defined therein are used herein as therein defined) with Guarantor, Invesco Holding Company Limited, a company organized under the laws of England and Wales (“IHCL”) and IVZ, Inc., a Delaware corporation (together with IHCL, collectively, the “Borrowers” and each individually, a “Borrower”). The Guarantor may receive a portion of the proceeds of the Advances under the Credit Agreement and will derive substantial direct and indirect benefit from the transactions contemplated by the Credit Agreement. It is a condition precedent to the effectiveness of the Credit Agreement and the making of Advances by the Lenders thereunder that the Guarantor shall have executed and delivered this Guaranty.

     NOW, THEREFORE, in consideration of the premises and in order to induce the Lenders to make Advances under the Credit Agreement from time to time, the Guarantor hereby agrees as follows:

     Section 1. Guaranty; Limitation of Liability. (a) The Guarantor hereby unconditionally and irrevocably guarantees the punctual payment when due, whether at stated maturity, by acceleration or otherwise, of all obligations of each other Loan Party now or hereafter existing under the Loan Documents, whether for principal, interest, fees, expenses or otherwise (such obligations, including, without limitation, the obligations of the Borrowers under Section 2.15 of the Credit Agreement, being the “Guaranteed Obligations”), and agrees to pay any and all expenses (including reasonable counsel fees and expenses) incurred by the Administrative Agent, the L/C Issuer or any Lender in enforcing any rights under this Guaranty. Without limiting the generality of the foregoing, the Guarantor’s liability shall extend to all amounts that constitute part of the Guaranteed Obligations and would be owed by a Loan Party to the Administrative Agent, the L/C Issuer or any Lender under the Loan Documents but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving such Loan Party.

     (b) The Guarantor hereby agrees that its obligations hereunder shall be unconditional, irrespective of the validity, regularity or enforceability of any Loan Document, the absence of any action to enforce the same, any waiver or consent by the Administrative Agent, the L/C Issuer or any Lender with respect to any provisions hereof or thereof, the recovery of any judgment against either Borrower, any action to enforce the same, or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of the Guarantor (other than a defense of payment in full or complete performance). The Guarantor hereby waives the benefit of diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of either Borrower, any right to require a proceeding first

against such Borrower, protest, notice and all demands whatsoever and covenants that this Guaranty shall not be discharged except by complete performance of the obligations contained in the Credit Agreement, the Notes and this Guaranty. This Guaranty is a guarantee of payment and not of collection.

     (c) The Guarantor, and by its acceptance of this Guaranty, the Administrative Agent, the L/C Issuer and each Lender, hereby confirms that it is the intention of all such Persons that this Guaranty and the obligations of the Guarantor hereunder not constitute a fraudulent transfer or conveyance for purposes of bankruptcy law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar foreign, federal or state law to the extent applicable to this Guaranty and the obligations of the Guarantor hereunder. To effectuate the foregoing intention, the Administrative Agent, the L/C Issuer, the Lenders and the Guarantor hereby irrevocably agree that the obligations of such Guarantor under this Guaranty at any time shall be limited to the maximum amount as will result in the obligations of such Guarantor under this Guaranty not constituting a fraudulent transfer or conveyance.

     Section 2. Waiver of Subrogation. Until the Credit Agreement is terminated and all of the Guaranteed Obligations have been paid in full, the Guarantor hereby irrevocably waives and agrees not to exercise any claim or other rights which it may now or hereafter acquire against either Borrower that arise from the existence, payment, performance or enforcement of such Borrower’s obligations under the Credit Agreement and the Guarantor’s obligations under this Guaranty, in any such instance including, without limitation, any right of subrogation, reimbursement, exoneration, contribution, indemnification, and any right to participate in any claim or remedy of the Administrative Agent, the L/C Issuer or the Lenders against either Borrower, whether or not such claim, remedy or right arises in equity, or under contract, statute or common law, including, without limitation, the right to take or receive from either Borrower, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security on account of such claim or other rights. If any amount shall be paid to the Guarantor in violation of the preceding sentence and any of the Guaranteed Obligations shall not have been paid in full, such amount shall have been deemed to have been paid to the Guarantor for the benefit of, and held in trust for the benefit of, the Administrative Agent, the L/C Issuer or the Lenders and shall forwith be paid to the Administrative Agent to be credited and applied to the Guaranteed Obligations in favor of the Administrative Agent, the L/C Issuer and the Lenders, whether matured or unmatured, in accordance with the terms of the Loan Documents. The Guarantor acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by the Loan Documents and that the waiver set forth in this Section 2 is knowingly made in contemplation of such benefits.

     Section 3. No Set-Off. Each payment to be made by the Guarantor hereunder in respect of its obligations shall be payable in the currency or currencies in which such obligations are denominated, and shall be made without set-off, counterclaim, reduction or diminution of any kind or nature.

     Section 4. Obligations Absolute; Obligations Not Affected. The obligations of the Guarantor hereunder shall be continuing and shall remain in full force and effect until all the Guaranteed Obligations have been paid and satisfied in full. The obligations of the Guarantor hereunder shall not be affected, impaired or diminished in any way by any act, omission, matter

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or thing whatsoever, occurring before, upon or after any demand for payment hereunder (and whether or not known or consented to by the Guarantor, the Administrative Agent, the L/C Issuer or any of the Lenders) which, but for this provision, might constitute a whole or partial defense to a claim against the Guarantor hereunder or might operate to release or otherwise exonerate the Guarantor from any of its obligations hereunder or otherwise affect such obligations, whether occasioned by default of any of the Lenders or otherwise, including, without limitation:

     (a) any limitation of status or power, disability, incapacity or other circumstance relating to either Borrower or any other Person, including any insolvency, bankruptcy, liquidation, reorganization, readjustment, composition, dissolution, winding-up or other proceeding involving or affecting either Borrower or any other Person;

     (b) any irregularity, defect, unenforceability or invalidity in respect of any indebtedness or other obligation of either Borrower or any other Person under the Loan Documents;

     (c) any failure of either Borrower or any Subsidiary Guarantor, whether or not without fault on its part, to perform or comply with any of the provisions of any Loan Document to which it is a party, or to give notice thereof to the Guarantor;

     (d) the taking or enforcing or exercising or the refusal or neglect to take or enforce or exercise any right or remedy from or against either Borrower or any other Person or their respective assets or the release or discharge of any such right or remedy;

     (e) the granting of time, renewals, extensions, compromises, concessions, waivers, releases, discharges and other indulgences to either Borrower or any other Person;

     (f) any change in the time, manner or place of payment of, or in any other term of, any of the Guaranteed Obligations, or any other amendment, variation, supplement, replacement or waiver of, or any consent to departure from, any of the Loan Documents, including, without limitation, any increase or decrease in the principal amount of or interest on Advances with respect to any of the Loan Documents;

     (g) any change in the ownership, control, name, objects, businesses, assets, capital structure or constitution of either Borrower, any Subsidiary Guarantor, the Guarantor or any other Person;

     (h) the occurrence of any change in the laws, rules, regulations or ordinances of any jurisdiction by any present or future action of any governmental authority or court amending, varying, reducing or otherwise affecting, or purporting to amend, vary, reduce or otherwise affect, any of the Guaranteed Obligations, the obligations of the Guarantor under this Guaranty or the obligations of any Subsidiary Guarantor under the Subsidiary Guaranty; and

     (i) any other circumstance that might otherwise constitute a legal or equitable discharge or defense of either Borrower or any Subsidiary Guarantor under the Loan Documents

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to which it is a party or of the Guarantor in respect of this Guaranty (other than a defense of payment in full or complete performance).

     Section 5. Waiver. Without in any way limiting the provisions of Section 1 hereof, the Guarantor hereby waives notice of acceptance hereof, notice of any liability of the Guarantor hereunder, notice or proof of reliance by the Administrative Agent, the L/C Issuer or the Lenders upon the obligations of the Guarantor hereunder, and diligence, presentment, demand for payment on either Borrower, protest, notice of dishonor or non-payment of any of the Guaranteed Obligations, or other notice or formalities to either Borrower, any Subsidiary Guarantor or the Guarantor of any kind whatsoever.

     Section 6. No Obligation To Take Action Against the Borrowers. None of the Administrative Agent, the L/C Issuer or any of the Lenders shall have any obligation to enforce or exhaust any rights or remedies or to take any other steps under any security for the Guaranteed Obligations or against either Borrower or any other Person or any property of either Borrower or any other Person before the Administrative Agent, the L/C Issuer or the Lenders are entitled to demand payment and performance by the Guarantor of its liabilities and obligations under this Guaranty.

     Section 7. Dealing with the Borrowers and Others. The Administrative Agent, the L/C Issuer or the Lenders, without releasing, discharging, limiting or otherwise affecting in whole or in part the obligations and liabilities of the Guarantor hereunder and without the consent of or notice to the Guarantor, may:

     (a) grant time, renewals, extensions, compromises, concessions, waivers, releases, discharges and other indulgences to either Borrower or any other Person;

     (b) take or abstain from taking security or collateral from either Borrower or from perfecting security or collateral of either Borrower;

     (c) release, discharge, compromise, realize, enforce or otherwise deal with or do any act or thing in respect of (with or without consideration) any and all collateral, mortgages or other security given by either Borrower, any Subsidiary Guarantor or any third party with respect to the obligations or matters contemplated by the Loan Documents;

     (d) accept compromises or arrangements from either Borrower or any Subsidiary Guarantor;

     (e) apply all monies at any time received from either Borrower, any Subsidiary Guarantor or from any security upon such part of the obligations as the Lenders may see fit or change any such application in whole or in part from time to time as the Lenders may see fit; and

     (f) otherwise deal with, or waive or modify their right to deal with, either Borrower and all other Persons and any security as the Lenders, the Administrative Agent or the L/C Issuer may see fit.

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     Section 8. Governing Law, Waiver of Jury Trial.

     (c) This Guaranty shall be governed by, and construed in accordance with, the laws of the State of New York.

     (d) The Guarantor hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of any New York State court or federal court of the United States of America sitting in New York City, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Guaranty, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in any such New York State court or, to the extent permitted by law, in such federal court. The Guarantor hereby agrees that service of process in any such action or proceeding brought in any such New York State court or in such federal court may be made upon such Guarantor c/o IVZ, Inc. at its offices at 1555 Peachtree Street N.E., Atlanta, Georgia 30309, Attention: General Counsel (the “Process Agent”), and hereby further agrees that the failure of the Process Agent to give any notice of any such service to such Guarantor shall not impair or affect the validity of such service or of any judgment rendered in any action or proceeding based thereon. The Guarantor agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Guaranty shall affect any right that any party may otherwise have to bring any action or proceeding relating to this Guaranty in the courts of any jurisdiction.

     (e) The Guarantor hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Guaranty in any New York State or federal court. The Guarantor hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

     (f) To the extent that the Guarantor has or hereafter may acquire any immunity from the jurisdiction of any court or from any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) with respect to itself or its property, the Guarantor hereby irrevocably waives such immunity in respect of its obligations under this Guaranty and the other Loan Documents.

     (g) The Guarantor agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Guaranty shall affect any right that any party may otherwise have to bring any action or proceeding relating to this Guaranty in the courts of any jurisdiction.

     (h) The Guarantor hereby irrevocably waives all right to trial by jury in any action, proceeding or counterclaim (whether based on contract, tort or otherwise) arising out of or relating to any of the Loan Documents, the transactions contemplated thereby or the actions of

5

the Administrative Agent, the L/C Issuer or any Lender in the negotiation, administration, performance or enforcement thereof.

     Section 9. Judgment.

     (i) Rate of Exchange. If, for the purpose of obtaining judgment in any court, it is necessary to convert a sum due hereunder in another currency into Dollars, the parties hereto agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall be that at which, in accordance with normal banking procedures, the Administrative Agent could purchase such other currency with Dollars in New York City, New York, at the close of business on the Business Day immediately preceding the day on which final judgment is given, together with any premiums and costs of exchange payable in connection with such purchase.

     (j) Indemnity. The obligation of the Guarantor in respect of any sum due from it to the Administrative Agent, the L/C Issuer or any Lender hereunder shall, notwithstanding any judgment in a currency other than Dollars, be discharged only to the extent that on the Business Day next succeeding receipt by the Administrative Agent, the L/C Issuer or such Lender of any sum adjudged to be so due in such other currency, the Administrative Agent, the L/C Issuer or such Lender, as the case may be, may, in accordance with normal banking procedures, purchase Dollars with such other currency. If the Dollars so purchased are less than the sum originally due to the Administrative Agent, the L/C Issuer or such Lender in Dollars, the Guarantor agrees, as a separate obligation and notwithstanding any such judgment, to indemnify the Administrative Agent, the L/C Issuer or such Lender against such loss, and if the Dollars so purchased exceed the sum originally due to any of the Administrative Agent, the L/C Issuer or any Lender in Dollars, the Administrative Agent, the L/C Issuer or such Lender agrees to remit to the Guarantor such excess.

     Section 10. Reinstatement. The Guarantor agrees that this Guaranty shall continue to be effective or be reinstated, as the case may be, at any time payment received by the Administrative Agent, the L/C Issuer or any Lender in respect of any Guaranteed Obligations is rescinded or must be restored for any reason, or is repaid by the Administrative Agent, the L/C Issuer or any Lender in whole or in part in good faith settlement of any pending or threatened avoidance claim.

[Signature Page Follows]

6

     IN WITNESS WHEREOF, the Guarantor has caused this Guaranty to be duly executed and delivered by its officer thereunto duly authorized as of the date first above written.

INVESCO LTD.
By:
	Name:
	Title:

EXHIBIT E
FORM OF OPINION OF U.S. COUNSEL
FOR THE BORROWERS AND CERTAIN OTHER LOAN PARTIES

See attached.

E-1
Form of Opinion of U.S. Counsel
for the Borrower and Certain Other Loan Parties

Alston&Bird llp

One Atlantic Center
1201 West Peachtree Street
Atlanta, GA 30309-3424

404-881-7000
Fax: 404-881-7777
www.alston.com

May 24, 2010

To each of the Lenders party
   to the Credit Agreement dated
   as of June 9, 2009
   among IVZ, Inc., Invesco Holding
   Company Limited, Invesco Ltd.,
   said Lenders and Bank of America, N.A.,
   as Administrative Agent

Ladies and Gentlemen:

     We have acted as special counsel to IVZ, Inc., a Delaware corporation (“IVZ”), Invesco Holding Company Limited, a company organized under the laws of England and Wales (“IHCL”; together with IVZ, each individually a “Borrower” and collectively, the “Borrowers”) and Invesco Ltd., a company incorporated in the Islands of Bermuda (the “Parent”), in connection with that certain Credit Agreement dated as of the date hereof (the “Credit Agreement”) among the Borrower, the Parent, the Lenders party thereto (the “Lenders”) and Bank of America, N.A., as Administrative Agent (the “Agent”) for the Lenders and as Swingline Lender and L/C Issuer. We have also acted as special counsel to the Parent in connection with that certain Guaranty dated as of the date hereof (the “Parent Guaranty”) in favor of the Agent and the Lenders and to Invesco Advisers, Inc., a Delaware corporation (“Invesco Advisers”), Invesco Management Group Inc., a Delaware corporation (“Invesco Management”) and Invesco North American Holdings, Inc., a Delaware corporation (“INAH”; together with Invesco Advisers and Invesco Management, the “Subsidiary Guarantors”) in connection with that certain Guaranty dated as of the date hereof (the “Subsidiary Guaranty”) in favor of the Agent and the Lenders. This opinion is being delivered pursuant to Section 3.01(c)(vi) of the Credit Agreement. Capitalized terms used herein but not otherwise defined herein shall have the respective meanings accorded such terms in the Credit Agreement.

     In rendering this opinion, we have reviewed the following documents, instruments and agreements (the following instruments and documents listed in items (a) – (d) below are collectively referred to herein as the “Transaction Documents”):

Atlanta • Charlotte • Dallas • Los Angeles • New York • Research Triangle • Silicon Valley • Ventura County • Washington, D.C.

May 24, 2010
Page 2

(a) the Credit Agreement;

(b) the Notes;

(c) the Parent Guaranty; and

(d) the Subsidiary Guaranty.

     In addition to the foregoing, we have reviewed (i) the certificates of incorporation certified by the Secretary of State of the State of Delaware of IVZ and each Subsidiary Guarantor, (ii) the by-laws of IVZ and each Subsidiary Guarantor, (iii) the resolutions of the board of directors of IVZ and each Subsidiary Guarantor with respect to the transactions contemplated by the Transaction Documents (items (i) through (iii) collectively, the “Organizational Documents”), (iv) certificates of public officials concerning the legal existence and good standing of IVZ and each Subsidiary Guarantor, (v) certificates of corporate officers and (vi) originals or copies, certified or otherwise identified to our satisfaction, of documents, corporate records, and other instruments, and made such further legal and factual examinations, as we have deemed necessary for the purposes of expressing the opinions set forth herein.

     In making the examinations described above and in rendering the opinions expressed below, we have assumed: (a) the genuineness of all signatures, (b) the legal capacity of natural persons, (c) the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as certified or photostatic copies and the authenticity of the originals of such documents, (d) the due authorization, execution and delivery of the Transaction Documents by all parties thereto (other than IVZ and the Subsidiary Guarantors with respect to any Transaction Documents to which they are a party), (e) that such Transaction Documents are legal, valid and binding obligations of the parties thereto enforceable against all such parties thereto (other than the Borrowers, the Parent and the Subsidiary Guarantors), (f) all parties to the Transaction Documents (other than IVZ and the Subsidiary Guarantors) have the full power, authority and legal right to perform their respective obligations under such Transaction Documents, (g) that all of the representations and warranties made by the Borrowers, the Parent and the Subsidiary Guarantors in the Transaction Documents are true and correct as to the factual matters therein, (h) the Lenders and the Agent have acted in good faith and without notice of any defense against enforcement of rights created by the transactions (the “Transactions”) contemplated by the Credit Agreement and the other Transaction Documents, (i) each party to the Credit Agreement and the other Transaction Documents has complied with all laws applicable to it that affect the Transactions, (j) the Transactions comply with any test required by any applicable law of good faith or fairness, (k) each applicable law or regulation for which we are deemed to be responsible is published, accessible and generally available to lawyers practicing in the State of New York, (l) there is no understanding or agreement not embodied in the Transaction Documents among parties to the Transactions that would modify any term of a Transaction Document or any right or obligation of a party thereto, and (m) with

May 24, 2010
Page 3

respect to the Transactions and the Transaction Documents, there has been no mutual mistake of fact and there exists no fraud or duress.

     We have relied, with your permission, upon the representations and warranties contained in the Credit Agreement and the other Transaction Documents to the extent the same relate to matters of fact relevant to the opinions expressed herein and upon certificates of public officials and certain officers of each of the Borrowers, the Parent and the Subsidiary Guarantors with respect to the factual matters contained therein.

     In addition we have assumed, with your permission, the following matters (as to which we understand you are relying solely upon the opinions of Linklaters, U.K. counsel to IHCL and APPLEBY, Bermuda counsel to the Parent):

(a) IHCL is a limited company formed and existing under the laws of England.

(b) The Parent is an exempted company incorporated with limited liability and existing under the laws of Bermuda.

(c) ICHL has the power to execute, deliver and perform the Transaction Documents to which it is a party, and the Parent has all requisite corporate power to enter into, execute, deliver and perform its obligations under the Transaction Documents to which it is a party.

(d) The execution, delivery and performance by each of IHCL and the Parent of the Transaction Documents to which it is a party have been duly authorized by all requisite corporate action of each of IHCL and the Parent.

(e) Each of IHCL and the Parent has duly executed and delivered each Transaction Document to which it is a party.

     Based upon the foregoing and subject to the assumptions, exceptions and qualifications set forth herein and Annex I hereto, we are of the opinion that:

     1. IVZ is (a) a validly existing corporation and in good standing under the laws of the State of Delaware and (b) has the corporate power and authority to execute and deliver, and to perform its obligations under, the Credit Agreement and the Notes.

     2. Each Subsidiary Guarantor is (a) a validly existing corporation and in good standing under the laws of the State of Delaware and (b) has the corporate power and authority to execute and deliver, and to perform its obligations under, the Subsidiary Guaranty.

May 24, 2010
Page 4

     3. The execution, delivery and performance by IVZ and each Subsidiary Guarantor of each Transaction Document to which IVZ or such Subsidiary Guarantor is a party have been duly authorized by all necessary corporate action of IVZ and each Subsidiary Guarantor. Each of IVZ and each Subsidiary Guarantor has duly executed and delivered each Transaction Document to which it is a party.

     4. The Credit Agreement constitutes, and after giving effect to the initial Borrowing, each Note will constitute, a valid and legally binding obligation of the Borrowers, enforceable in accordance with its terms, except to the extent that the enforcement thereof may be limited by the limitations set forth on Annex I hereto.

     5. Each of the Credit Agreement and the Parent Guaranty constitutes a valid and legally binding obligation of the Parent, enforceable in accordance with its terms, except to the extent that enforcement thereof may be limited by the limitations set forth in Annex I hereto.

     6. The Subsidiary Guaranty constitutes a valid and legally binding obligation of each of the Subsidiary Guarantors, except to the extent that enforcement thereof may be limited by the limitations set forth in Annex I hereto.

     7. No approval, authorization or other action by, and no notice to or filing with, any governmental authority or regulatory body (each an “Approval”) is required under the laws of the States of New York or Delaware or the United States of America for the valid execution, delivery and performance by (a) the Borrowers or the Parent of the Credit Agreement, (b) the Borrowers of the Notes, (c) the Parent of the Parent Guaranty, or (d) any Subsidiary Guarantor of the Subsidiary Guaranty, except such Approvals, if any, as have been obtained, given or made.

     8. The execution and delivery by each of IVZ and each Subsidiary Guarantor of the Transaction Documents to which it is a party do not and if each of IVZ and each Subsidiary Guarantor were to perform its obligations under the such Transaction Documents such performance would not (a) violate the Organizational Documents of IVZ or any Subsidiary Guarantor; or (b) violate any existing constitutional provision, statute, or regulation of the States of New York or Delaware or the United States of America.

     9. The execution and delivery by the Parent and the performance of its obligations under the Credit Agreement and the Parent Guaranty will not constitute a violation of any existing constitutional provision, statute, or regulation of the State of New York or the United States of America.

     10. The execution and delivery by IHCL and the performance of its obligations under the Credit Agreement will not constitute a violation of any existing constitutional provision, statute, or regulation of the State of New York or the United States of America.

May 24, 2010
Page 5

     With respect to the opinions expressed in paragraphs 1 and 2 above regarding valid existence and good standing of IVZ and the Subsidiary Guarantors in the State of Delaware, such opinions are based solely upon certificates provided by the Secretary of State of the State of Delaware, copies of which have been delivered to you in connection with the closing of the transactions contemplated by the Transaction Documents, and such opinions are limited to the meanings ascribed to such certifications by the Secretary of State of the State of Delaware. We have assumed that all certifications were properly given and remain accurate as of the date hereof.

     We are members of the Bar of the State of New York, and we express no opinion as to the laws (including either of the Borrowers’, the Parent’s, or any of the Subsidiary Guarantors’ compliance or noncompliance with the laws) of any jurisdictions other than the federal laws of the United States, the laws of the State of New York and the General Corporation Law of the State of Delaware as currently in effect in the State of Delaware (without regard to judicial interpretation thereof or rules or regulations promulgated thereunder). We note, however, that we are not admitted to practice law in the State of Delaware.

     This opinion is limited to the matters stated herein, and no opinion may be implied or inferred beyond those opinions expressly stated. Opinions rendered herein are as of the date hereof, and we make no undertaking and expressly disclaim any duty to supplement such opinions if, after the date hereof, facts and circumstances come to our attention or changes in the law occur which could affect such opinions. We express no opinion or advice as to any law (a) that might be violated by any misrepresentation, omission or fraudulent act, (b) to which the Borrowers, the Parent or the Subsidiary Guarantors may be subject as a result of your legal or regulatory status, your sale or transfer of any Loans or other Obligations or interests therein or your involvement in the transactions contemplated by the Transaction Documents, or (c) identified in clause (s) of Annex I.

     This opinion is rendered solely for your benefit and for the benefit of any Lender that may hereafter become a Lender under the Credit Agreement. This opinion may not be used or relied upon by any other person or entity, and may not be disclosed, quoted, filed with a governmental agency or otherwise referred to without our prior written consent except to your bank examiners and any other governmental authority or self-regulatory body to which you report or to which you are subject to review, or as required by law or regulation or pursuant to legal process.

May 24, 2010
Page 6

This opinion may be disclosed to, but may not be relied upon by, your accountants, lawyers and other advisors so long as such accountants and other advisors agree not to disclose, quote or file this opinion without our prior written consent.

Very truly yours, Alston & Bird LLP
By:
	Partner

ANNEX I

Enforceability Limitations

     (a) The effect of bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the rights and remedies of creditors. This limitation includes the effect of the United States Bankruptcy Code (the “Bankruptcy Code”) in its entirety, including, without limitation, matters of contract rejection, fraudulent conveyance and obligation, turn-over, preference, equitable subordination, automatic stay, discharge, conversion of a non-recourse obligation into a recourse obligation, and substantive consolidation. It also includes state laws regarding fraudulent transfers, obligations, and conveyances, and state receivership laws.

     (b) The effect of general principles of equity, whether applied by a court of law or equity. This limitation includes the following concepts: (i) principles governing the availability of specific performance, injunctive relief or other traditional equitable remedies; (ii) principles affording traditional equitable defenses (e.g., waiver, laches and estoppel); (iii) good faith and fair dealing; (iv) reasonableness; (v) materiality of the breach; (vi) impracticability or impossibility of performance; (vii) the effect of obstruction or failure to perform or otherwise act in accordance with an agreement by any person; (viii) unconscionability and (ix) the possible unenforceability under certain circumstance of provisions providing for indemnification or contribution that are contrary to public policy.

     (c) The possible unenforceability of provisions purporting to waive certain rights of guarantors.

     (d) The possible unenforceability of provisions requiring indemnification for, or providing exculpation, release, or exemption from liability for, action or inaction, to the extent such action or inaction involves negligence or willful misconduct.

     (e) The possible unenforceability of provisions purporting to require arbitration of disputes.

     (f) The possible unenforceability of provisions imposing increased interest rates or late payment charges upon delinquency in payment or default or providing for liquidated damages or for premiums on prepayment, acceleration, redemption, cancellation, or termination, to the extent any such provisions are deemed to be penalties or forfeitures.

     (g) The possible unenforceability of waivers or advance consents that have the effect of (i) waiving statutes of limitation, marshaling of assets or similar requirements, (ii) consenting to or waiving objections to the jurisdiction of courts or the venue of actions, (iii) waiving the right to jury trial or, in certain cases, notices.

     (h) The possible unenforceability of provisions that waivers or consents by a party may not be given effect unless in writing or in compliance with particular requirements or that a person’s course of dealing, course of performance, or the like or failure or delay in taking action

May 24, 2010
Page 2

may not constitute a waiver of related rights or provisions or that one or more waivers may not under certain circumstances constitute a waiver of other matters of the same kind.

     (i) The effect of course of dealing, course of performance, or the like, that would modify the terms of an agreement or the respective rights or obligations of the parties under an agreement.

     (j) The possible unenforceability of provisions that enumerated remedies are not exclusive or that a party has the right to pursue multiple remedies without regard to other remedies elected or that all remedies are cumulative.

     (k) The possible unenforceability of provisions that determinations by a party or a party’s designee are conclusive or deemed conclusive.

     (l) The possible unenforceability of provisions permitting modifications or amendments of an agreement only in writing.

     (m) The possible unenforceability of provisions that the provisions of an agreement are severable.

     (n) The effect of laws requiring mitigation of damages.

     (o) The possible unenforceability of provisions permitting the exercise, under certain circumstances, of rights without notice or without providing opportunity to cure failures to perform.

     (p) The effect of agreements or provisions in the Transaction Documents as to rights of set off otherwise than in accordance with the applicable law.

     (q) The effect of laws that govern and afford judicial discretion regarding the determination of damages and entitlement to attorneys’ fees and other costs.

     (r) The possible unenforceability of Section 6.01(h)(ii) of the Credit Agreement.

     (s) The following matters, including their effects and the effects of noncompliance, are not covered by implication or otherwise in any opinion expressed herein: (a) any statutes, administrative decisions, ordinances, rules or regulations of any county, municipality or other political subdivision of any state, (b) antitrust and unfair competition law, (c) securities law, (d) fiduciary obligations, (e) pension and employee benefit law (e.g., ERISA), (f) fraudulent

May 24, 2010
Page 3

transfer law, (g) environmental law, (h) land use and subdivision law, (i) Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, (j) Exon-Florio Amendment under the Omnibus Trade and Competitiveness Act of 1988, (k) bulk transfer law, (l) tax law, (m) patent, copyright, trademark and other intellectual property law, (n) racketeering law (e.g., RICO), (o) criminal statutes of general application (e.g., mail fraud and wire fraud), (p) occupational health and safety law (e.g., OSHA), (q) labor law, (r) law concerning national or local emergency, possible deference to acts of sovereign states, and criminal and civil forfeiture laws, (s) law relating to permissible rates, computations, or disclosure of interest (e.g., usury), (t) any laws, regulations, directives and executive orders that prohibit or limit the enforceability of obligations based on attributes of the party seeking enforcement (e.g., the Trading with the Enemy Act and the International Emergency Economic Powers Act), (u) the Anti-Terrorism Order, as amended, all rules and regulations promulgated thereunder and all Federal, state and local laws, statutes, ordinances, orders, governmental rules, regulations, licensing requirements and policies relating to the Anti-Terrorism Order (including without limitation the Executive order of September 23, 2001 Blocking Property and Prohibiting Transactions with Persons Who Commit and Threaten to Commit or Support Terrorism) and the ownership and operation of, or otherwise regulation of, companies that conduct, operate or otherwise pursue the business or businesses now and in the future conducted, operated or otherwise pursued by any of the Borrower, the Parent or the Subsidiary Guarantors including, without limitation, the importation, transportation, manufacturing, dealing, purchase, use or storage of explosive materials, and (v) the USA Patriot Act of 2001 and the rules, regulations and policies promulgated thereunder and any foreign assets control regulations of the United States Treasury Department or any enabling legislation or orders relating thereto.

EXHIBIT F
FORM OF OPINION OF ENGLISH COUNSEL FOR IHCL

See attached.

F-1
Form of Opinion of U.K. Counsel for IHCL

Linklaters LLP
One Silk Street
London EC2Y 8HQ
Telephone (+44) 20 7456 2000
Facsimile (+44) 20 7456 2222
DX Box Number 10 CDE

To the Administrative Agent and
the Lenders from time to time party to
the Agreement
(as defined below)
c/o Bank of America, N.A.

24 May 2010

Dear Sirs

1	Introduction
	We have acted as English legal advisers to Invesco Holding Company Limited in its capacity as a Borrower (the “Company”) in connection with a U.S.$1,250,000.000 3-year credit agreement dated as of 24 May 2010 between, amongst others, the Company, IVZ, Inc., a Delaware corporation (“IVZ”), Invesco Ltd., a company organised under the laws of Bermuda, the Lenders named in it and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer (the “Agreement”) and the promissory notes to be issued to each of the Lenders named in the Agreement pursuant to the Agreement (the “Notes”).
2	English Law
	This opinion is limited to English law as applied by the English courts and published and in effect on the date of this opinion. It is given on the basis that all matters relating to it will be governed by, and that it (including all terms used in it) will be construed in accordance with, English law.
3	Scope of Inquiry
	For the purpose of this opinion, we have examined the following documents

3.1 A PDF copy of the executed Agreement.

This communication is confidential and may be privileged or otherwise protected by work product immunity.

Linklaters LLP is a limited liability partnership registered in England and Wales with registered number 0C326345_ It is a law firm regulated by the Solicitors Regulation Authority. The term partner in relation to Linklaters LLP is used to refer to a member of Linklaters LLP or an employee or consultant of Linklaters LLP or any of its affiliated firms or entities with equivalent standing and qualifications. A list of the names of the members of Linklaters LLP together with a list of those non-members who are designated as partners and their professional qualifications is open to inspection at its registered office, One Silk Street, London EC2Y 8HQ or on www.linklaters.com and such persons are either solicitors, registered foreign lawyers or European lawyers.

Please refer to www.linklaters.com/regulation for important information on our regulatory position.

Al2046359

3.2	A template form of Note.
3.3	A copy of the Certificate of Incorporation and the Certificates of Incorporation on Change of Name of the Company.
3.4	A copy of the Memorandum and Articles of Association of the Company.
3.5	A copy of a written resolution of the Directors of the Company dated 21 May 2010.
3.6	A copy of an unanimous written resolution of the shareholders of the Company dated 21 May 2010.
3.7	A certificate from the Company dated 24 May 2010 in relation to the documents referred to above.
3.8	The results of an on-line search in respect of the Company on the Companies House Direct Service made on 24 May 2010 at 11.20 AM (the “Search”).
3.9	The results of a telephone search in respect of the Company at the Central Register of Winding Up Petitions made on 24 May 2010 at 11:23 AM (the “Telephone Search”).

4	Assumptions
	For the purpose of this opinion, we have made the following assumptions:

4.1	All copy documents conform to the originals and all originals are genuine and complete.
4.2	Each signature is the genuine signature of the individual concerned.
4.3	The documents referred to in paragraphs 3.3 and 3.4 are up-to-date.
4.4	The written resolutions referred to in paragraphs 3.5 and 3.6 were validly passed and remain in full force and effect without modification.
4.5	The Agreement and the Notes are within the capacity and powers of, and have been validly authorised and signed by, each party other than the Company.
4.6	The Agreement and the Notes have been signed on behalf of the Company by a person authorised by the written resolution referred to in paragraph 3,5.
4.7	The Agreement and the Notes are valid, binding and enforceable on each party under New York law by which they are expressed to be governed.
4.8	The Agreement and the Notes have the same meaning and effect under New York law as they would have if they were interpreted under English law by an English court and there are no provisions of New York law which would affect this opinion.
4.9	There are no dealings between the parties that affect the Agreement or the Notes.
4.10	So far as this opinion relates to the joint and several liability and guarantee of the Company for all borrowings of IVZ under the Agreement, it is given on the assumption that such joint and several liability and guarantee of the Company have been given in good faith and for the purpose of carrying on its business and that, when they were given, there were reasonable grounds for believing that undertaking such joint and several liability and guarantee would benefit the Company.

Page 3 of 5

4.11	None of the proceeds of the facilities provided pursuant to the Agreement will be used directly or indirectly to finance or refinance an acquisition of shares in contravention of Sections 678 or 679 of the Companies Act 2006 (as amended).
4.12	All applicable provisions of the Financial Services and Markets Act 2000 and any applicable secondary legislation made under it have been complied with with respect to the Agreement and the Notes.
4,13	The Notes are not and will not be offered or sold in the UK, except to any person whose ordinary activities involve them in acquiring, holding, managing or disposing of investments (as principal or agent) for the purposes of their businesses and no public offer of the Notes will be made in the UK, except to any legal entity which is authorised or regulated to operate in the financial markets or, if not so authorised or regulated, whose corporate purpose is solely to invest in securities.
4.14	With respect to the Notes, this opinion speaks as if the Notes have been entered into on the date of the Agreement in all material respects in the same form as the template referred to in paragraph 3.2.

5	Opinion
	Based on the documents referred to and assumptions in paragraphs 3 and 4 and subject to the qualifications in paragraph 6 and to any matters not disclosed to us, we are of the following opinion:

5.1	The Company has been incorporated and is existing as a company with limited liability under the laws of England.
5.2	The Company has the corporate power to enter into and perform the Agreement and the Notes.
5.3	The Company has taken all necessary corporate action to authorise its entry into and performance of the Agreement and the Notes.
5.4	Under English law, there are no governmental or regulatory consents, approvals or authorisations required by the Company for its entry into and performance of the Agreement or the Notes.
5.5	Under English law, there are no registration, filing or similar formalities required to ensure the legality, validity, binding effect and enforceability against the Company of the Agreement or the Notes.
5.6	The entry into and performance of the Agreement and the Notes by the Company does not violate English law or the Memorandum or Articles of Association of the Company.
5.7	Save for in the circumstances set out in paragraphs 6.11 and 6.12, if proceedings were brought before the English courts and the choice of New York law as the governing law of the Agreement is pleaded and proved as a fact in accordance with English procedural and evidential rules, the choice of New York law as the governing law of the Agreement would be recognised in England.
5.8	A final and conclusive judgment against the Company for the payment of a specific sum of money rendered by a United States Federal or New York State court sitting in New York City

Page 4 of 5

arising out of or in connection with the Agreement or the Notes will be recognised by and enforceable in the English courts as creating a debt enforceable against the Company if:

(i)	the foreign court had jurisdiction over the Company in accordance with English law (and, in our opinion, for these purposes, the English courts will recognise a contractual submission to the jurisdiction of a United States Federal or New York State court sitting in New York City);
(ii)	the foreign judgment was not contrary to English public policy, for multiple damages or based on a provision of law specified under the Protection of Trading Interests Act 1980 nor obtained by fraud or in breach of the rules of natural justice;
(iii)	the foreign judgment was not inconsistent with an earlier judgment relating to the same issue of a court having jurisdiction over the matter;
v)	the foreign judgment does not require the Company to perform an act which would be illegal in the country of performance; and
(v)	the foreign proceedings were not of a revenue or penal nature.

5.9 No stamp duty or registration or similar tax is payable under English law in connection with the parties entering into the Agreement or the Notes.

6 Qualifications

This opinion is subject to the following qualifications:
6.1	This opinion is subject to any limitations arising from bankruptcy, insolvency, liquidation, moratorium, reorganisation and other laws of general application relating to or affecting the rights of creditors.
6.2	The enforcement in England of the Agreement, the Notes and of foreign judgments will be subject to English rules of civil procedure.
6.3	In England, remedies such as specific performance and injunction may not be available.
6.4	An English court may not give effect to Section 8.04 (Expenses; Indemnity; Damage Waiver) of the Agreement in respect of the costs of litigation brought before an English court.
6.5	A certificate, determination, notification, opinion or the like might be held by the English courts not to be conclusive, final or binding if it could be shown to have an unreasonable or arbitrary basis or in the event of manifest error despite any provision in the Agreement to the contrary.
6.6	We do not express any opinion as to any taxation matters, except for paragraphs 5.9.
6.7	Claims may become barred under the Limitation Act 1980.
6.8	So far as they relate to United Kingdom stamp duties, the undertakings and indemnities given by the Company in Section 2.15 (Taxes) of the Agreement may be void under Section 117 of the Stamp Act 1891.

6.9	Any provision of the Agreement which constitutes, or purports to constitute, a restriction on the exercise of any statutory power may be ineffective.
6.10	Our opinion that the Company is existing is based on the Search and the Telephone Search. It should be noted that the Search and the Telephone Search are not capable of revealing conclusively whether or not a winding-up or administration petition or order has been presented or made, a receiver appointed, a company voluntary arrangement proposed or approved or any other insolvency proceeding commenced.
6.11	If proceedings were brought before the English courts, effect may be given to the overriding mandatory provisions of the law of the country where the obligations arising out of a contract have to be or have been performed, in so far as those provisions render the performance of the contract unlawful. In such circumstances, the relevant obligations may not be enforceable.
6.12	Further circumstances referred to in paragraph 5.7 are as follows:

(a) where all other elements relevant to the Agreement at the time of the choice are located in:

(i)	a country other than the United States, it is possible that the choice of New York law will not prejudice the application of provisions of the law of that other country which cannot be derogated from by agreement;
(ii)	one or more EU Member States, it is possible that the choice of New York law will not prejudice the application of provisions of EU law (where appropriate, as implemented in England) which cannot be derogated from by agreement;

(b)	the English courts may have regard to the law of the country in which performance takes place in relation to the manner of performance and the steps to be taken in the event of defective performance; and
(c)	the English courts may not be restricted from applying overriding mandatory provisions of English law and if there is a provision of New York law that is manifestly incompatible with English public policy, it is possible that the English courts may not apply it.

7

Reliance

This opinion is solely for your benefit and solely for the purpose of the Agreement and the Notes. It is not to be transmitted to anyone else nor is it to be relied upon by anyone else or for any other purpose or quoted or referred to in any public document or filed with anyone without our written consent, except as otherwise required by law or regulation, and provided that a copy may be provided to your professional advisers, auditors and regulators, solely for the purpose of the Agreement and the Notes and of giving their opinion and subject to the same restrictions.

Yours faithfully

Linklaters LLP

Page 2 of 5

EXHIBIT G
FORM OF OPINION OF BERMUDA COUNSEL FOR THE PARENT

See attached.

The Administrative Agent and	e-mail:
The Lenders from time to time party to the Agreement (as defined below)	gchamberlain@applebyglobal.com direct dial:
c/o Bank of America, N.A. 101 N Tryon Street Charlotte NC 28255-0001	Tel +1 441 298 3589 Fax +1 441 298 3491 your ref:
	appleby ref:
	137506.17
	24 May 2010

Dear Sirs

Invesco Ltd. (the “Company”)

We have acted as Bermuda legal advisers to the Company in its capacity as the parent of Invesco Holding Company Limited, a company organised under the laws of England and Wales (“IHCL”), which in turn is the parent company of IVZ, Inc., a Delaware corporation (together with IHCL, collectively, the “Borrowers”), in connection with a (i) revolving credit facility which provides for revolving borrowings of a principal amount of up to US$1,250,000,000, inter alia, between the Lenders as defined therein, Bank of America, N.A., as administrative agent (the “Administrative Agent”), the Borrowers and the Company (the “Agreement”) and (ii) a guaranty made by the Company in favour of the Lenders (as defined therein) (the “Parent Guaranty”). The Company has requested that we provide this opinion in connection with the following agreements:

(i)	the Agreement; and
(ii)	the Parent Guaranty,

(The Agreement and the Parent Guaranty are hereinafter collectively referred to as the “Subject Agreements”.)

For the purposes of this opinion we have examined and relied upon the documents (the “Documents”) listed, and in some cases defined, in the schedule to this opinion (the “Schedule”) together with such other documentation as we have considered requisite to this opinion. Unless otherwise defined herein, capitalised terms have the meanings assigned to them in the Agreement.

Assumptions

In stating our opinion we have assumed:

(a)	the authenticity, accuracy and completeness of all Documents and other documentation examined by us submitted to us as originals and the conformity to authentic original documents of all Documents and other such documentation submitted to us as certified, conformed, notarised, faxed or photostatic copies;
(b)	that each of the Documents and other such documentation which was received by electronic means is complete, intact and in conformity with the transmission as sent;
(c)	the genuineness of all signatures on the Documents;
(d)	the authority, capacity and power of each of the persons signing the Documents (other than the Company in respect of the Subject Agreements);
(e)	that any representation, warranty or statement of fact or law, other than as to the laws of Bermuda, made in any of the Documents is true, accurate and complete;
(f)	that the Subject Agreements constitute the legal, valid and binding obligations of each of the parties thereto, other than the Company, under the laws of its jurisdiction of incorporation or its jurisdiction of formation;
(g)	that the Subject Agreements have been validly authorised, executed and delivered by each of the parties thereto, other than the Company, and the performance thereof is within the capacity and powers of each such party thereto, and that each such party to which the Company purportedly delivered the Subject Agreements has actually received and accepted delivery of such Subject Agreements;
(h)	that the Subject Agreements will effect, and will constitute legal, valid and binding obligations of each of the parties thereto, enforceable in accordance with their terms, under the laws of the State of New York by which they are expressed to be governed;

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(i)	that the Subject Agreements are in the proper legal form to be admissible in evidence and enforced in the New York courts and in accordance with the laws of the State of New York;
(j)	that there are no provisions of the laws or regulations of any jurisdiction other than Bermuda which would be contravened by the execution or delivery of the Subject Agreements or which would have any implication in relation to the opinion expressed herein and that, in so far as any obligation under, or action to be taken under, the Subject Agreements is required to be performed or taken in any jurisdiction outside Bermuda, the performance of such obligation or the taking of such action will constitute a valid and binding obligation of each of the parties thereto under the laws of that jurisdiction and will not be illegal by virtue of the laws of that jurisdiction;
(k)	that none of the parties to the Subject Agreements maintains a place of business (as defined in section 4(6) of the Investment Business Act 2003), in Bermuda;
(l)	that the records which were the subject of the Company Search were complete and accurate at the time of such search and disclosed all information which is material for the purposes of this opinion and such information has not since the date of the Company Search been materially altered;
(m)	that the records which were the subject of the Litigation Search were complete and accurate at the time of such search and disclosed all information which is material for the purposes of this opinion and such information has not since the date of the Litigation Search been materially altered;
(n)	that the Resolutions are in full force and effect, have not been rescinded, either in whole or in part, and accurately record the resolutions passed by the Directors of the Company (the “Directors”) in a meeting which was duly convened and at which a duly constituted quorum was present and voting throughout (the “Board”) and that there is no matter affecting the authority of the Directors to effect entry by the Company into the Subject Agreements, not disclosed by the Constitutional Documents or the Resolutions, which would have any adverse implication in relation to the opinions expressed herein;

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(o)	that the Administrative Agent and the Lenders from time to time party to the Agreement have no express or constructive knowledge of any circumstance whereby any Director of the Company, when the Board adopted the Resolutions, failed to discharge his fiduciary duty owed to the Company and to act honestly and in good faith with a view to the best interests of the Company;
(p)	that the Company has entered into its obligations under the Subject Agreements in good faith for the purpose of carrying on its business and that, at the time it did so, there were reasonable grounds for believing that the transactions contemplated by the Subject Agreements would benefit the Company; and
(q)	that each transaction to be entered into pursuant to the Subject Agreements is entered into in good faith and for full value and will not have the effect of preferring one creditor over another.

Opinion

Based upon and subject to the foregoing and subject to the reservations set out below and to any matters not disclosed to us, we are of the opinion that:

(1)	The Company is an exempted company incorporated with limited liability and existing under the laws of Bermuda. The Company possesses the capacity to sue and be sued in its own name.
(2)	The Company has all requisite corporate power and authority to enter into, execute, deliver, and perform its obligations under the Subject Agreements and to take all action as may be necessary to complete the transactions contemplated thereby.
(3)	The execution, delivery and performance by the Company of the Subject Agreements and the transactions contemplated thereby have been duly authorised by all necessary corporate action on the part of the Company.
(4)	The Subject Agreements have been duly executed by the Company and each constitutes legal, valid and binding obligations of the Company, enforceable against the Company in accordance with its terms.

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(5)	No consent, licence or authorisation of, filing with, or other act by or in respect of, any governmental authority or court of Bermuda is required to be obtained by the Company in connection with the execution, delivery or performance by the Company of the Subject Agreements or to ensure the legality, validity, admissibility into evidence or enforceability as to the Company, of the Subject Agreements.
(6)	The execution, delivery and performance by the Company of the Subject Agreements and the transactions contemplated thereby do not and will not violate, conflict with or constitute a default under (i) any requirement of any law or any regulation of Bermuda or (ii) the Constitutional Documents.
(7)	The choice of the laws of the State of New York as the proper law to govern the Subject Agreements is a valid choice of law under Bermuda law and such choice of law would be recognised, upheld and applied by the courts of Bermuda as the proper law of the Subject Agreements in proceedings brought before them in relation to the Subject Agreements, provided that (i) the point is specifically pleaded; (ii) such choice of law is valid and binding under the laws of the State of New York; and (iii) recognition would not be contrary to public policy as that term is understood under Bermuda law.
	It is our view that public policy in Bermuda is a common law principle amounting to a judicial impression of what is or is not in the general public interest or in accordance with the policies of the government of Bermuda as expressed primarily through legislation. While the concept is amorphous and subject to evolution, and application of this principle to specific circumstances cannot be accomplished with any degree of precision, we have no basis for concluding that any of the provisions in the Subject Agreements are contrary to public policy in Bermuda.
(8)	The submission by the Company to the jurisdiction of a United States Federal court sitting in New York City or a New York State court pursuant to the Subject Agreements is not contrary to Bermuda law and would be recognised by the courts of Bermuda as a legal, valid and binding submission to the jurisdiction of a United States Federal court sitting in New York City or a New York State court, if such submission is accepted by such courts and is legal, valid and binding under the laws of the State of New York.

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(9) A final and conclusive judgment of a competent foreign court against the Company based upon the Subject Agreements (other than a court of jurisdiction to which The Judgments (Reciprocal Enforcement) Act 1958 applies, and it does not apply to a United States Federal court sitting in New York City or a New York State court) under which a sum of money is payable (not being a sum payable in respect of taxes or other charges of a like nature, in respect of a fine or other penalty, or in respect of multiple damages as defined in The Protection of Trading Interests Act 1981) may be the subject of enforcement proceedings in the Supreme Court of Bermuda under the common law doctrine of obligation by action on the debt evidenced by the judgment of such competent foreign court. A final opinion as to the availability of this remedy should be sought when the facts surrounding the foreign court’s judgment are known, but, on general principles, we would expect such proceedings to be successful provided that:

(i)	the court which gave the judgment was competent to hear the action in accordance with private international law principles as applied in Bermuda; and
(ii)	the judgment is not contrary to public policy in Bermuda, has not been obtained by fraud or in proceedings contrary to natural justice and is not based on an error in Bermuda law.

	Enforcement of such a judgment against assets in Bermuda may involve the conversion of the judgment debt into Bermuda dollars, but the Bermuda Monetary Authority has indicated that its present policy is to give the consents necessary to enable recovery in the currency of the obligation.
	No stamp duty or similar or other tax or duty is payable in Bermuda on the enforcement of a foreign judgment. Court fees will be payable in connection with proceedings for enforcement.
(10)	Based solely upon the Company Search and the Litigation Search:

(i)	no litigation, administrative or other proceeding of or before any governmental authority of Bermuda is pending against the Company; and
(ii)	no notice to the Registrar of Companies of the passing of a resolution of members or creditors to wind up or the appointment of a liquidator or

Page 7

receiver has been given. No petition to wind up the Company or application to reorganise its affairs pursuant to a Scheme of Arrangement or application for the appointment of a receiver has been filed with the Supreme Court.

(11) The Company has received an assurance from the Ministry of Finance granting an exemption, until 28 March 2016, from the imposition of tax under any applicable Bermuda law computed on profits or income or computed on any capital asset, gain or appreciation, or any tax in the nature of estate duty or inheritance tax, provided that such exemption shall not prevent the application of any such tax or duty to such persons as are ordinarily resident in Bermuda and shall not prevent the application of any tax payable in accordance with the provisions of the Land Tax Act 1967 or otherwise payable in relation to land in Bermuda leased to the Company. There are, subject as otherwise provided in this opinion, no Bermuda taxes, stamp or documentary taxes, duties or similar charges now due, or which could in the future become due, in connection with the execution, delivery, performance or enforcement of the Subject Agreements or the transactions contemplated thereby, or in connection with the admissibility in evidence thereof and the Company is not required by any Bermuda law or regulation to make any deductions or withholdings in Bermuda from any payment it may make thereunder.

Reservations

We have the following reservations:

(a)

The term “enforceable” as used in this opinion means that there is a way of ensuring that each party performs an agreement or that there are remedies available for breach.

(b)

We express no opinion as to the availability of equitable remedies such as specific performance or injunctive relief, or as to any matters which are within the discretion of the courts of Bermuda in respect of any obligations of the Company as set out in the Subject Agreements. In particular, we express no opinion as to the enforceability of any present or future waiver of any provision of law (whether substantive or procedural) or of any right or remedy which might otherwise be available presently or in the future under the Subject Agreements.

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(c)	Enforcement of the obligations of the Company under the Subject Agreements may be limited or affected by applicable laws from time to time in effect relating to bankruptcy, insolvency or liquidation or any other laws or other legal procedures affecting generally the enforcement of creditors’ rights.
(d)	Enforcement of the obligations of the Company may be the subject of a statutory limitation of the time within which such proceedings may be brought.
(e)	We express no opinion as to any law other than Bermuda law and none of the opinions expressed herein relates to compliance with or matters governed by the laws of any jurisdiction except Bermuda. This opinion is limited to Bermuda law as applied by the Courts of Bermuda at the date hereof.
(f)	Where an obligation is to be performed in a jurisdiction other than Bermuda, the courts of Bermuda may refuse to enforce it to the extent that such performance would be illegal under the laws of, or contrary to public policy of, such other jurisdiction.
(g)	We express no opinion as to the validity, binding effect or enforceability of any provision incorporated into any of the Subject Agreements by reference to a law other than that of Bermuda, or as to the availability in Bermuda of remedies which are available in other jurisdictions.
(h)	Where a person is vested with a discretion or may determine a matter in his or its opinion, such discretion may have to be exercised reasonably or such an opinion may have to be based on reasonable grounds.
(i)	Any provision in the Subject Agreements that certain calculations or certificates will be conclusive and binding will not be effective if such calculations or certificates are fraudulent or erroneous on their face and will not necessarily prevent juridical enquiries into the merits of any claim by an aggrieved party.
(j)	We express no opinion as to the validity or binding effect of any provision in the Subject Agreements for the payment of interest at a higher rate on overdue amounts than on amounts which are current, or that liquidated damages are or may be payable. Such a provision may not be enforceable if it could be established that the amount expressed as being payable was in the nature of a penalty; that is

Page 9

	to say a requirement for a stipulated sum to be paid irrespective of, or necessarily greater than, the loss likely to be sustained. If it cannot be demonstrated to the Bermuda court that the higher payment was a reasonable pre-estimate of the loss suffered, the court will determine and award what it considers to be reasonable damages. Section 9 of The Interest and Credit Charges (Regulations) Act 1975 provides that the Bermuda courts have discretion as to the amount of interest, if any, payable on the amount of a judgment after date of judgment. If the Court does not exercise that discretion, then interest will accrue at the statutory rate which is currently 7% per annum.
(k)	We express no opinion as to the validity or binding effect of any provision of the Subject Agreements which provides for the severance of illegal, invalid or unenforceable provisions.
(l)	A Bermuda court may refuse to give effect to any provisions of the Subject Agreements in respect of costs of unsuccessful litigation brought before the Bermuda court or where that court has itself made an order for costs.
(m)	Searches of the Register of Companies at the office of the Registrar of Companies and of the Supreme Court Causes Book at the Registry of the Supreme Court are not conclusive and it should be noted that the Register of Companies and the Supreme Court Causes Book do not reveal:

(i)

details of matters which have been lodged for filing or registration which as a matter of best practice of the Registrar of Companies or the Registry of the Supreme Court would have or should have been disclosed on the public file, the Causes Book or the Judgment Book, as the case may be, but for whatever reason have not actually been filed or registered or are not disclosed or which, notwithstanding filing or registration, at the date and time the search is concluded are for whatever reason not disclosed or do not appear on the public file, the Causes Book or Judgment Book;

(ii)

details of matters which should have been lodged for filing or registration at the Registrar of Companies or the Registry of the Supreme Court but have not been lodged for filing or registration at the date the search is concluded;

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(iii)	whether an application to the Supreme Court for a winding-up petition or for the appointment of a receiver or manager has been prepared but not yet been presented or has been presented but does not appear in the Causes Book at the date and time the search is concluded;
(iv)	whether any arbitration or administrative proceedings are pending or whether any proceedings are threatened, or whether any arbitrator has been appointed; or
(v)	whether a receiver or manager has been appointed privately pursuant to the provisions of a debenture or other security, unless notice of the fact has been entered in the Register of Charges in accordance with the provisions of the Act.

	Furthermore, in the absence of a statutorily defined system for the registration of charges created by companies incorporated outside Bermuda (“overseas companies”) over their assets located in Bermuda, it is not possible to determine definitively from searches of the Register of Charges maintained by the Registrar of Companies in respect of such overseas companies what charges have been registered over any of their assets located in Bermuda or whether any one charge has priority over any other charge over such assets.
(n)	In order to issue this opinion we have carried out the Company Search and have not enquired as to whether there has been any change since the date of such search.
(o)	In order to issue this opinion we have carried out the Litigation Search and have not enquired as to whether there has been any change since the date of such search.

Disclosure

This opinion is addressed to you solely for your benefit and is neither to be transmitted to any other person, nor relied upon by any other person or for any other purpose nor quoted or referred to in any public document nor filed with any governmental agency or person, without our prior written consent, except as may be required by law or regulatory authority. Further, this opinion speaks as of its date and is strictly limited to the matters stated herein and we assume no obligation to review or update this opinion if applicable law or the existing facts or circumstances should change.

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This opinion is governed by and is to be construed in accordance with Bermuda law. It is given on the basis that it will not give rise to any legal proceedings with respect thereto in any jurisdiction other than Bermuda.

Yours faithfully

Appleby

Page 12

SCHEDULE

1.	The entries and filings shown in respect of the Company on the file of the Company maintained in the Register of Companies at the office of the Registrar of Companies in Hamilton, Bermuda, as revealed by a search conducted on 21 May 2010 (the “Company Search”).
2.	The entries and filings shown in respect of the Company in the Supreme Court Causes Book maintained at the Registry of the Supreme Court in Hamilton, Bermuda, as revealed by a search conducted on 21 May 2010 (the “Litigation Search”).
3.	Certified copies of the Certificate of Incorporation, Memorandum of Association and Bye-Laws adopted by written resolution dated 3 December 2007 for the Company (collectively referred to as the “Constitutional Documents”).
4.	Certificate of the Assistant Secretary, dated 21 May 2010, issued by Robert H. Rigsby, Assistant Secretary of the Company, certifying a true and correct copy of an exerpt from the meeting of the Board of Directors of the Company on 17 May 2010 approving the “upsizing” of the Company’s contemplated new credit facility to US$1.25 billion at closing and a Certificate of the Assistant Secretary, dated 24 May 2010, issued by Robert H. Rigsby, Assistant Secretary of the Company, certifying, inter alia¸ the resolutions of the Board of Directors of the Company passed on 17 May 2010 (together, the “Resolutions”).
5.	A certified copy of the “Foreign Exchange Letter”, dated 12 September 2007, issued by the Bermuda Monetary Authority, Hamilton Bermuda in relation to the Company.
6.	A certified copy of the “Tax Assurance”, dated 14 November 2007, issued by the Registrar of Companies for the Minister of Finance in relation to the Company.
7.	A certified copy of the Register of Directors and Officers in respect of the Company.
8.	Electronic copy of the executed Agreement dated 24 May 2010.

9. Electronic copy of the executed Parent Guaranty dated 24 May 2010.

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EXHIBIT H
FORM OF COMPLIANCE CERTIFICATE

Statement Date:                          ,           

To: Bank of America, N.A., as Administrative Agent

Ladies and Gentlemen:

     Reference is made to that certain Credit Agreement dated as of May 24, 2010 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among INVESCO HOLDING COMPANY LIMITED, a company organized under the laws of England and Wales (“IHCL”), IVZ, INC., a Delaware corporation (together with IHCL, the “Borrowers” and each individually, a “Borrower”), INVESCO LTD., the Lenders from time to time party thereto, and BANK OF AMERICA, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer. Capitalized terms used but not defined herein shall have the meanings specified therefor in the Credit Agreement.

     The undersigned hereby certifies as of the date hereof that he/she is the chief financial officer of the Parent, and that, as such, he/she is authorized to execute and deliver this Compliance Certificate to the Administrative Agent on the behalf of the Parent and the Borrowers, and that:

[Use following paragraph 1 for fiscal year-end financial statements]

     1. The Parent has delivered the audited financial statements required by Section 5.01(h)(ii) of the Credit Agreement for the fiscal year of the Parent ended as of the above date, together with the report and opinion of an independent certified public accountant required by such section.

[Use following paragraph 1 for fiscal quarter-end financial statements]

     1. The Parent has delivered the unaudited financial statements required by Section 5.01(h)(i) of the Credit Agreement for the fiscal quarter of the Parent ended as of the above date. Such financial statements fairly present the financial condition, results of operations and cash flows of the Parent and its Subsidiaries in accordance with GAAP as at such date and for such period, subject only to normal year-end audit adjustments and the absence of footnotes.

     2. The undersigned has reviewed and is familiar with the terms of the Credit Agreement and has made, or has caused to be made under his/her supervision, a detailed review of the transactions and condition (financial or otherwise) of the Parent and the Borrowers during the accounting period covered by such financial statements.

     3. A review of the activities of the Parent and the Borrowers during such fiscal period has been made under the supervision of the undersigned with a view to determining whether during such fiscal period the Parent and the Borrowers performed and observed all its Obligations under the Loan Documents, and

[select one:]

     [to the best knowledge of the undersigned during such fiscal period, each of the Parent and the Borrowers performed and observed each covenant and condition of the Loan Documents applicable to it, and no Default has occurred and is continuing.]

—or—

     [to the best knowledge of the undersigned, during such fiscal period the following covenants or conditions have not been performed or observed and the following is a list of each such Default and its nature and status:]

     4. The financial covenant analyses and information set forth on Schedule 1 attached hereto are true and accurate on and as of the date of this Compliance Certificate.

     IN WITNESS WHEREOF, the undersigned has executed this Compliance Certificate as of                              ,           .

INVESCO LTD.
By:
	Name:
	Title:

Page 2

For the Month/Quarter/Year ended                       (“Statement Date”)

SCHEDULE 1
to the Compliance Certificate
($ in 000’s)

I.	Section 5.03(a) — Debt/EBITDA Ratio.
	A.	Adjusted Debt less excluded items as of Statement Date:
		1.	Adjusted Debt:	$
		2.	Subsidiary Non-Recourse Debt:	$
		3.	Liabilities with respect to the Office Equipment Sale and Leaseback Lease (so long as the Parent and its Subsidiaries own 100% of the Office Equipment Sale and Leaseback Bonds):	$
		4.	Qualified Equity Portion of Qualified Securities to the extent such amount is otherwise included in Adjusted Debt:	$
		[5.	The lesser of the aggregate outstanding principal amount of (x) the 2012 Notes and (y) 2012 Refinancing Notes, to the extent otherwise included in Adjusted Debt:	$	]1
		[5.	The lesser of the aggregate outstanding principal amount of (x) the 2013 Notes and (y) 2013 Refinancing Notes, to the extent otherwise included in Adjusted Debt:	$	]2
		[5][6].	Adjusted Debt less excluded items for purposes of computing the Debt/EBITDA Ratio (Lines I.A.1 – 2 – 3 – 4 [– 5]):	$
	B.	EBITDA less excluded items for four consecutive fiscal quarters ending on above date (“Subject Period”):
		1.	Net income of the Parent and its Subsidiaries, on a consolidated basis, excluding consolidated investment products, for Subject Period:	$
		2.	Interest expense for Subject Period:	$

1	Included for the purpose of calculating the Debt/EBITDA ratio for the period of four consecutive quarters ending on March 31, 2012 in the event that either the Borrower or any Guarantor has issued the 2012 Refinancing Notes in connection with a refinancing of the 2012 Notes.
2	Included for the purpose of calculating the Debt/EBITDA ratio for the period of four consecutive quarters ending on December 31, 2012 in the event that either the Borrower or any Guarantor has issued the 2013 Refinancing Notes in connection with a refinancing of the 2013 Notes.

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	3.	Income tax expense for Subject Period:	$
	4.	Depreciation expense for Subject Period:	$
	5.	Amortization expense for Subject Period:	$
	6.	Extraordinary losses for Subject Period:	$
	7.	Exceptional losses for Subject Period:	$
	8.	Non-cash charges exclusive of any non-cash charge to the extent it represents a reserve for cash expenditures in any future period for Subject Period:	$
	9.	Extraordinary gains for Subject Period:	$
	10.	Exceptional gains for Subject Period:	$
	11.	Non-cash gains exclusive of gains for which the Parent expects cash proceeds in a future period for Subject Period:	$
	12.	EBITDA (Lines I.B.1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 – 9 – 10 – 11):	$
	13.	Portion of EBITDA attributable to the net income, expenses, losses, charges and gains of each Special Purpose Subsidiary:	$
	14.	EBITDA less excluded items for purposes of computing the Financial Covenants for Subject Period (Lines I.B.12 – 13):	$
C.	Debt/EBITDA Ratio as of the Statement Date (Line I.A.6 ÷ Line I.B.14):			to 1.00

Maximum permitted:

	Maximum
Four Fiscal Quarters Ending	Debt/EBITDA Ratio
Effective Date through December 31, 2011		3.25 to 1.00
Each fiscal quarter ending thereafter		3.00 to 1.00

II.	Section 5.03(b) — Coverage Ratio.
	A.	EBITDA less excluded items for purposes of computing the Financial Covenants for Subject Period (Line I.B.14):	$
	B.	Interest payable on, and amortization of debt discount in respect of, Adjusted Debt (excluding from Adjusted Debt

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	for purposes of computing this amount: (i) Subsidiary Non-Recourse Debt and (ii) so long as the Parent and its Subsidiaries own 100% of the Office Equipment Sale and Leaseback Bonds, liabilities with respect to the Office Equipment Sale and Leaseback Lease):	$
C.	Coverage Ratio as of the Statement Date as of the Statement Date (Line II.A ÷ Line II.B):		to 1.00

Minimum Required: 4.00 to 1.00

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EXHIBIT I
FORM OF U.K. TAX COMPLIANCE CERTIFICATE

     Reference is made to the Credit Agreement dated May 24, 2010 (as may be amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) among INVESCO HOLDING COMPANY LIMITED, a company organized under the laws of England and Wales, IVZ, INC., a Delaware corporation, INVESCO LTD., a company organized under the laws of Bermuda, the Lenders from time to time party thereto, and BANK OF AMERICA, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer. The undersigned hereby certifies under penalty of perjury that:

     (1) The undersigned is a “bank” within the meaning of Section 879 of the Income Tax Act 2007 of the United Kingdom; and

     (2) The undersigned is within the charge to corporation tax in the United Kingdom with respect to payments under the Credit Agreement.

[NAME OF LENDER]
By:
	Name:
	Title:
Address: [                                                            ] [                                                            ] [                                                            ]

Dated:                     , 20      

I-1
Form of U.K. Tax Compliance Certificate

EX-10.2

Exhibit 10.2

Summary of Material Employment Terms

G. Mark Armour
Senior Managing Director and Head of Worldwide Institutional

Mr. Armour is employed by Invesco Ltd. (the “Company”) as Senior Managing Director and Head of Worldwide Institutional. There is no written employment agreement between Mr. Armour and the Company. The following is a summary of the material terms of his employment, certain of which terms are derived from the provisions of a Restricted Stock Unit Award Agreement granted to Mr. Armour by the Company under the Invesco Ltd. 2008 Global Equity Incentive Plan.

I. Salary

Mr. Armour’s current annual base salary is $400,000 and is paid in semi-monthly installments.

II. Term of U.S. Assignment

Following an initial three-year period that commenced in 2006, Mr. Armour’s assignment in the U.S. at the Company’s global headquarters located in Atlanta, Georgia has been extended indefinitely by mutual consent.

III. Incentive Compensation

Mr. Armour is eligible to receive annual bonuses, which can consist of both cash and equity, and require him to be actively employed by the Company at the time of payout.

IV. Benefits Package

Mr. Armour participates in the Company’s benefits program on a basis similar to all U.S.-based employees. The benefits program includes employee health insurance, retirement savings such as 401(k) plans, life and disability insurance coverage and other corporate benefits available to most employees of the Company.

V. Home Rental

The Company pays up to $5,000 per month for the period of Mr. Armour’s U.S. assignment for rental/lease of a personal residence.

VI. Tax Consultancy Service

The Company pays for the following tax consultancy services on behalf of Mr. Armour:

• annual consultation with Deloitte, and

• preparation of tax returns during the period of his U.S. assignment.

The Company does not pay for personal financial tax planning or ad hoc personal tax inquiries.

VII. Home Leave — Relocation Following U.S. Assignment

The Company provides Mr. Armour and his spouse one (1) home leave per year consisting of round-trip airfare from Atlanta to Australia. Whenever possible, home leave is to be linked to a business visit. The Company also provides airfare for one (1) annual round-trip from Australia to the U.S. for Mr. Armour’s children. Upon mutual agreement by the Company and Mr. Armour that his assignment in the U.S. should end, the Company will provide for Mr. Armour’s relocation back to Australia.

VIII. Termination

Non-Cause Termination. Mr. Armour’s employment is “at will” and may be terminated by either party with or without Cause (as defined below). In the absence of Cause, each of Mr. Armour and the Company is required to give the other six (6) months’ advance written notice of the intent to terminate (the “Notice Period”). Mr. Armour’s employment does not terminate until the expiration of the Notice Period, provided, however, that the Company has the right to relieve Mr. Armour of all his duties by placing him on paid administrative leave (in which event Mr. Armour would continue to receive full compensation and benefits for the entire Notice Period). Mr. Armour is prohibited from working in competition with the Company during the Notice Period.

For-Cause Termination At any time during the employment relationship the Company may, effective immediately and without the benefit of the Notice Period, terminate the employment relationship with Mr. Armour for Cause. “Cause” includes any of the following events:

• if he commits any material or persistent breach of the terms of his employment;

• if he is convicted of any criminal offense other than an offense which does not in the opinion of the Company affect his position;

• if he is found guilty of willful neglect, gross misconduct or gross incompetence in the performance of his duties or commits any other act which is prejudicial to the interest of the Company.

IX. Nondisclosure

Mr. Armour is prohibited, for a period of six (6) months following any termination of his employment, from disclosing any confidential information or trade secrets and from making any use of any such confidential information or trade secrets without the prior written consent of the Company, provided, however, that trade secrets remain protected for so long as they remain trade secrets under applicable law.

X. Nonrecruitment; Nonsolicitation

Mr. Armour is prohibited, for a period of six (6) months following any termination of his employment, from (i) recruiting any employee of the Company with whom he worked or otherwise had material contact, or (ii) soliciting any client of the Company with whom he had material contact for purposes of providing investment management products or services that were provided by him on the Company’s behalf.

EX-31.1

Exhibit 31.1

Certification Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002

I, Martin L. Flanagan, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Invesco Ltd.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 2, 2010	/s/ MARTIN L. FLANAGAN
	Martin L. Flanagan
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002

I, Loren M. Starr, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Invesco Ltd.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 2, 2010	/s/ LOREN M. STARR
	Loren M. Starr
	Senior Managing Director and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF MARTIN L. FLANAGAN
PURSUANT TO
18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with Invesco Ltd.’s (the “Company”) Quarterly Report on Form 10-Q for the period ended June 30, 2010 (the “Report”), I, Martin L. Flanagan, do hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

1.	the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and
2.	the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

August 2, 2010	/s/ MARTIN L. FLANAGAN
	Martin L. Flanagan
	President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION OF LOREN M. STARR
PURSUANT TO
18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with Invesco Ltd.’s (the “Company”) Quarterly Report on Form 10-Q for the period ended June 30, 2010 (the “Report”), I, Loren M. Starr, do hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

1.	the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and
2.	the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

August 2, 2010	/s/ LOREN M. STARR
	Loren M. Starr
	Senior Managing Director and Chief Financial Officer