EX-4.9



 Exhibit 4.9 

AMENDED AND RESTATED STOCKHOLDERS AGREEMENT 

by and among 
 PARTY CITY HOLDCO
INC., 
 THL PC TOPCO, L.P., 

ADVENT-PARTY CITY ACQUISITION LIMITED PARTNERSHIP 

and 
 THE OTHER STOCKHOLDERS THAT
ARE SIGNATORIES HERETO 
 Dated as of [            ], 2015 







 TABLE OF CONTENTS 

 

							
	Section 1.		Definitions.		 	1	  
			
	 1.1.
		Definitions.		 	1	  
			
	 1.2.
		General Interpretive Principles.		 	5	  
			
	Section 2.		Methodology for Calculations.		 	6	  
			
	Section 3.		Corporate Governance.		 	6	  
			
	 3.1.
		Board of Directors.		 	6	  
			
	 3.2.
		Expenses and Indemnification.		 	9	  
			
	Section 4.		Restrictions on Transfers of Stock by Stockholders.		 	9	  
			
	Section 5.		Financial and Business Information.		 	9	  
			
	Section 6.		Confidentiality.		 	10	  
			
	Section 7.		Corporate Opportunities.		 	10	  
			
	Section 8.		Termination.		 	11	  
			
	Section 9.		Further Assurances.		 	11	  
			
	Section 10.		Amendment and Waiver.		 	11	  
			
	Section 11.		Entire Agreement.		 	11	  
			
	Section 12.		Successors and Assigns.		 	12	  
			
	Section 13.		Severability.		 	12	  
			
	Section 14.		Remedies.		 	12	  
			
	Section 15.		Notices.		 	12	  
			
	Section 16.		Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.		 	14	  
			
	Section 17.		No Publicity.		 	15	  
			
	Section 18.		Company Logo.		 	15	  
			
	Section 19.		Descriptive Headings.		 	15	  
			
	Section 20.		Conflicting Agreements.		 	15	  
			
	Section 21.		Counterparts.		 	16	  


  
 -i- 








 AMENDED AND RESTATED STOCKHOLDERS AGREEMENT 

This AMENDED AND RESTATED STOCKHOLDERS AGREEMENT (as it may be amended from time to time in accordance with the terms hereof, the
“Agreement”) dated as of [—], 2015 is made by and among Party City Holdco Inc., a Delaware corporation (the “Company”), THL PC Topco, L.P. (the “THL
Party”, which term includes any Affiliates of the foregoing which own Stock from time to time), Advent-Party City Acquisition Limited Partnership, a Delaware limited partnership (the “Advent Party”, which term includes any
Affiliates of the foregoing which own Stock from time to time, and together with the THL Party, the “Investor Stockholders”), and the Persons listed as Management Holders on the signature pages hereto. 

RECITALS 
 WHEREAS, on
July 27, 2012, the Investor Stockholders, the Company and certain other parties entered into a Stockholders Agreement (the “Prior Agreement”); 

WHEREAS, on the date hereof, the Company is consummating an initial public offering (the “IPO”) of its shares of Common Stock
pursuant to an underwriting agreement dated [—], 2015; and 
 WHEREAS, on the date
hereof, the parties hereto desire to amend and restate the Prior Agreement in order to set forth their agreement with respect to certain rights and obligations associated with ownership of shares of capital stock of the Company. 

NOW, THEREFORE, in consideration of the premises and of the mutual covenants and obligations hereinafter set forth, the parties hereby agree
as follows: 
 Section 1. Definitions. 

1.1. Definitions. As used herein, the following terms shall have the following meanings: 

“Additional Unaffiliated Director” has the meaning ascribed to such term in Section 3.1(a). 

“Advent Director” has the meaning ascribed to such term in Section 3.1(a) 

“Advent Party” has the meaning ascribed to such term in the Preamble. 

“Affiliate” means with respect to any Person, any other Person directly or indirectly controlling or controlled by or under
direct or indirect common control with such specified Person, where “control” means the possession, directly or indirectly, of the power to direct the management and policies of a Person whether through the ownership of voting securities,
contract or otherwise. For the avoidance of doubt, neither the Company nor any Person controlled by the Company shall be deemed to be an Affiliate of any Stockholder or of any Affiliate of any Stockholder. 

  
 -1- 








 “Agreement” has the meaning ascribed to such term in the Preamble. 

“Board” means the board of directors of the Company. 

“Cause” shall have the meaning set forth below, except with respect to any Management Holder who is employed by the Company
or one of its Subsidiaries pursuant to an effective written employment agreement, if any, between the Company and/or one of its Subsidiaries and such Management Holder in which there is a definition of “Cause,” in which event the
definition of “Cause” as set forth in such employment agreement shall be deemed to be the definition of “Cause” herein solely for such Management Holder and only for so long as such employment agreement remains effective. In all
other events, the term “Cause” shall mean the Board has determined, in its reasonable judgment, that any one or more of the following has occurred: (a) the Management Holder shall have been convicted of, or shall have pleaded guilty
or nolo contendere to, any felony or any crime involving dishonesty or moral turpitude; (b) the Management Holder shall have committed any fraud, theft, embezzlement, misappropriation of funds, breach of fiduciary duty or act of dishonesty;
(c) the Management Holder shall have breached in any material respect any of the provisions of any agreement between the Management Holder and the Company or its Affiliates, including, without limitation, this Agreement; (d) the Management
Holder shall have engaged in conduct likely to make the Company or any of its Affiliates subject to criminal liabilities other than those arising from the Company’s normal business activities; or (e) the Management Holder shall have
willfully engaged in any other conduct that involves a breach of fiduciary obligation on the part of the Management Holder or otherwise could reasonably be expected to have a material adverse effect upon the business, interests or reputation of the
Company or any of its Affiliates. 
 “Certificate of Incorporation” means the certificate of incorporation of the Company
as in effect from time to time. 
 “Chief Executive Officer” means the chief executive officer of the Company then in
office. 
 “Common Stock” means the common stock, par value $0.01 per share, of the Company and any and all securities of
any kind whatsoever of the Company which may be issued after the date of this Agreement in respect of, or in exchange for, such shares of common stock of the Company pursuant to a merger, consolidation, stock split, stock dividend or
recapitalization of the Company or otherwise. 
 “Common Stock Equivalents” means all securities convertible into, or
exchangeable or exercisable for (at any time or upon the occurrence of any event or contingency and without regard to any vesting or other conditions to which such securities may be subject) (i) shares of Common Stock or (ii) other Equity
Securities convertible into, or exchangeable or exercisable for (at any time or upon the occurrence of any event or contingency and without regard to any vesting or other conditions to which such securities may be subject), Common Stock. 

“Company” has the meaning ascribed to such term in the Preamble. 

“Equity Securities” means any capital Stock or other equity security of the Company or any of its Subsidiaries, including
Common Stock and Common Stock Equivalents. 

  
 -2- 








 “Executive Chairman” means the executive chairman of the Board. 

“GAAP” means generally accepted accounting principles in the United States as in effect from time to time. 

“Group” means two or more Persons who agree to act together for the purpose of acquiring, holding, voting or disposing of
Stock. 
 “Investor Stockholders” has the meaning set forth in the Preamble. 

“Investor Stockholder Party” has the meaning ascribed to such term in Section 7. 

“Issue” means to issue or in any other way directly or indirectly sell or exchange, or agree to issue, sell or exchange, any
security or any legal or beneficial interest therein. 
 “Majority Management Holders” means the Senior Management Holders
holding a majority of the aggregate Voting Shares held by the Senior Management Holders. 
 “Management Holder” means any
current or former director, officer or employee of the Company or any of its Subsidiaries (or any Affiliate of such Person (other than the Investor Stockholders and the Sponsor Directors)) who is a Stockholder and any Permitted Management Holder
Transferee who is a Stockholder. 
 “Minimum Percentage” means, at any given time, a fraction (expressed as a percentage),
with the numerator being the number of shares, in the aggregate, held by such Stockholder at such time and the denominator being the number of shares of Common Stock, in the aggregate, held by such Stockholder immediately following the closing of
the IPO (including any additional closing pursuant to the underwriters’ over-allotment option). 
 “Necessary Action”
means, with respect to any party and a specified result, all actions (to the extent such actions are permitted by law and within such party’s control) necessary to cause such result, including (i) voting or providing a written consent or
proxy with respect to the Common Stock, (ii) causing the adoption of stockholders’ resolutions and amendments to the organizational documents of the Company, (iii) executing agreements and instruments, and (iv) making, or causing
to be made, with governmental, administrative or regulatory authorities, all filings, registrations or similar actions that are required to achieve such result. 

“Option Plan” means the Company’s 2012 Omnibus Equity Incentive Plan, as amended from time to time. 

“Option Stock” means Common Stock received upon the exercise of Common Stock Equivalents (including Plan Options and Plan
Stock Appreciation Rights). 
 “Permanent Disability” shall have the meaning set forth below, except with respect to any
Management Holder who is employed by the Company or one of its Subsidiaries pursuant to an effective written employment agreement, if any, between the Company and/or one of its Subsidiaries and such Management Holder in which there is a definition
of “Permanent Disability,” in which event the definition of “Permanent Disability” as set forth in such 

  
 -3- 








 
employment agreement shall be deemed to be the definition of “Permanent Disability” herein solely for such Management Holder and only for so long as such employment agreement remains
effective. In all other events, the term “Permanent Disability” shall mean: a determination by independent competent medical authority (selected by the Board) that the Management Holder is unable to perform his duties and in all reasonable
medical likelihood such inability shall continue for a consecutive period of 90 days or for a period in excess of 120 days in any 365 day period. 

“Permitted Management Holder Transferee” means any transferee who obtained Stock as a direct or indirect result of a
Permitted Management Transfer by a Management Holder. 
 “Permitted Management Transfer” means any Transfer of Stock by a
Management Holder (i) to spouses, children, and exclusive benefit trusts, in each case, so long as such Management Holder retains voting control of such Stock, (ii) to the Company or (iii) upon the death of an individual Management
Holder, pursuant to the terms of any trust or will of the deceased individual Management Holder or by the laws of intestate succession. 

“Person” means any individual, corporation, limited liability company, limited or general partnership, joint venture,
association, joint-stock company, trust, unincorporated organization, governmental entity or agency or other entity of any kind or nature. 

“Plan Options” means, options to purchase Common Stock of the Company pursuant to the Option Plan. 

“Plan Stock Appreciation Rights” means the right to receive Common Stock or cash payments in connection with the appreciation
of a specified number of shares of Common Stock pursuant to the Option Plan. 
 “Prior Agreement” has the meaning set forth
in the Preamble. 
 “Proprietary Information” has the meaning ascribed to such term in Section 6. 

“Registration Rights Agreement” means the Amended and Restated Registration Rights Agreement, dated [—], 2015, among the Company, the Investor Stockholders and certain other parties, as amended from time to time. 

“SEC” means the Securities and Exchange Commission or such other federal agency which at such time administers the Securities
Act. 
 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations of the SEC issued
under such Act, as they may from time to time be in effect. 
 “Senior Management Holders” means the Management Holders
who, as of the date hereof, each hold at least [            ] shares of Common Stock and each of whom is an “accredited investor” (as defined in Rule 501(a) under the Securities
Act) or, if not an accredited investor, has retained a “purchaser representative” (as defined in Rule 501(h) under the Securities Act) or has such knowledge and experience in financial and business matters that he or she is capable of
evaluating the merits and risks of the action(s) contemplated. 

  
 -4- 








 “Sponsor Directors” has the meaning ascribed to such term in
Section 3.1(a). 
 “Stock” means any shares of Common Stock or of any other class or series of authorized
capital stock of the Company, whether owned, issued or authorized on the date of this Agreement or hereafter, including any Option Stock but excluding any Plan Options. 

“Stockholders” means the parties to this Agreement (other than the Company) and any other subsequent holder of Stock who
agrees to be bound by the terms of this Agreement. 
 “Subsidiary” means, with respect to any Person, (i) any
corporation, limited liability company, partnership or other entity of which shares of capital stock or other ownership interests having ordinary voting power to elect a majority of the board of directors or other similar managing body of such
corporation, limited liability company, partnership or other entity are at the time directly or indirectly owned or controlled by such Person, or (ii) the management of which is otherwise controlled, directly or indirectly, by such Person. 

“THL Director” has the meaning ascribed to such term in Section 3.1(a) 

“THL Party” has the meaning ascribed to such term in the Preamble. 

“THL Supplemental Director” has the meaning ascribed to such term in Section 3.1(b)(ii). 

“Transfer” means to transfer, sell, assign, distribute, pledge, encumber, hypothecate, assign, exchange, or in any other way
directly or indirectly dispose of, in whole or in part, either voluntarily or involuntarily, including by gift, by way of merger (forward or reverse) or similar transaction, by operation of law or otherwise, any security or any legal or beneficial
interest therein, including the grant of an option or other right or interest that would result in the transferor no longer having the economic consequences of ownership in, or the power to vote, such security. 

“Trigger Date” has the meaning ascribed to such term in Section 3.1(f) 

“Unaffiliated Director” has the meaning ascribed to such term in Section 3.1. 

“Voting Shares” means, at any time, any securities of the Company, the holders of which are generally entitled to vote for
the election of directors to the Board (including all outstanding shares of Common Stock). 
 1.2. General Interpretive Principles.
When a reference is made in this Agreement to a Section, Schedule or Exhibit such reference shall be to a Section of, or a Schedule or Exhibit to, this Agreement unless otherwise indicated. The table of contents and headings contained in this
Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words “include,” “includes” or “including” are used in this
Agreement, they shall be deemed to be followed by the words “without limitation.” The words “hereof,” “herein” and “hereunder” and words of similar import when used in this
Agreement shall refer to this Agreement as a whole (including the Schedules and Exhibits) and not to any particular provision of this Agreement. All terms defined in this Agreement shall have the defined meanings when used in any document made or
delivered pursuant hereto unless 

  
 -5- 








 
otherwise defined therein. The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms and, except as otherwise expressly provided or
unless the context otherwise requires, any noun or pronoun shall be deemed to cover all genders. Any statute, rule, order or regulation defined or referred to in this Agreement or in any agreement or instrument that is referred to in this Agreement
shall mean such statute, rule, order or regulation as from time to time amended, updated, modified, supplemented or superseded, including by succession of comparable successor statutes, rules, orders or regulations and references to all attachments
thereto and instruments incorporated therein. Where specific language is used to clarify by example a general statement contained herein, such specific language shall not be deemed to modify, limit or restrict in any manner the construction of the
general statement to which it relates. The language used in this Agreement shall be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of strict construction shall be applied against any party. 

Section 2. Methodology for Calculations. Except as otherwise expressly provided in this Agreement, for purposes of calculating
(a) the amount of outstanding shares of Common Stock as of any date and (b) the amount of shares of Common Stock owned by a Person hereunder (and the percentage of the outstanding shares of Common Stock owned by a Person hereunder), no
Common Stock Equivalents of the Company shall be treated as having been converted, exchanged or exercised. In the event of any stock split, stock dividend, reverse stock split, any combination of the shares of Stock or any similar event, with
respect to all references in this Agreement to a Stockholder or Stockholders holding a number of shares of Stock, the applicable number shall be appropriately adjusted to give effect to such stock split, stock dividend, reverse stock split, any
combination of the shares of Stock or similar event. 
 Section 3. Corporate Governance. 

3.1. Board of Directors. 

(a) Composition of Initial Board. Concurrently with the effectiveness of this Agreement, the Company, the Investor Stockholders and the
Management Holders shall take all Necessary Action to cause the Board to be comprised of nine directors, (i) three of whom shall be designated by the THL Party (each such director, a “THL Director”), (ii) two of whom shall
be designated by the Advent Party (each such director, an “Advent Director” and together with the THL Directors, the “Sponsor Directors”), (iii) one of whom shall be the Chief Executive Officer, (iv) one
of whom shall be the Executive Chairman and (v) two of whom shall be independent directors who meet the independence criteria set forth in Rule 10A-3 of the Exchange Act (each such director, an “Unaffiliated Director”). Within
one year of the effectiveness of this Agreement, the Company, the Investor Stockholders and certain other Management Holders shall take all Necessary Action to cause the Board to increase in size by one director to 10 directors and to fill such
vacancy with one additional Unaffiliated Director (the “Additional Unaffiliated Director”) who shall be appointed by a majority of the Board, which majority must include at least one THL Director. Each of the foregoing directors
shall be divided into three classes of directors, each of whose members shall serve for staggered three-year terms as follows: 

  
 -6- 









	 	(A)	the class I directors shall include one THL Director, one Advent Director and one Unaffiliated Director, and their term will expire at the annual meeting of stockholders to be held in 2015; 


 

	 	(B)	the class II directors shall include one THL Director, one Unaffiliated Director and the Chief Executive Officer, and their term will expire at the annual meeting of stockholders to be held in 2016; and


  

	 	(C)	the class III directors shall include one THL Director, one Advent Director, the Executive Chairman and the Additional Unaffiliated Director, and their term will expire at the annual meeting of stockholders to be held
in 2017. 

 For the avoidance of doubt, this Section 3.1(a) shall have no further force or effect after the
Additional Unaffiliated Director is appointed to the Board. 
  

	 	(b)	THL Representation. 

 (i) For so long as the THL Party holds a number of shares of Common Stock
representing the Minimum Percentages shown below, the Company shall, and the Investor Stockholders and Management Holders shall take all Necessary Action to, include in the slate of nominees recommended by the Board for election as directors at each
applicable annual or special meeting of stockholders at which directors are to be elected, or pursuant to a written consent, that number of individuals designated by the THL Party that, if elected, will result in the THL Party having the number of
directors serving on the Board that is shown below, and the other Investor Stockholders agree to vote in favor of such nominees. 
  

			
	 Minimum Percentage
	  	 Number of THL Directors

	 30% or greater
	  	3
	 Less than 30% but greater than or equal to 15%
	  	2
	 Less than 15% but greater than or equal to 5%
	  	1

 (ii) In addition, for so long as the THL Party holds a number of shares of Common Stock representing Minimum
Percentages shown below, upon receiving a written request from the THL Party, the Company, the other Investor Stockholders and the Management Holders will take all Necessary Action to cause the Board as soon as practicable to: (a) increase the
size of the Board to permit the inclusion of the number of additional directors shown below on the Board and (b) appoint such directors to fill the vacancies created thereby as are specified by the THL Party. Any director so appointed (each, a
“THL Supplemental Director”) shall be assigned to such class of directors to be elected at the annual meeting of stockholders that is latest to occur of the then-existing classes of directors. Thereafter, for so long as the THL
Party holds a number of shares of Common Stock representing the Minimum Percentage shown below, in addition to any directors designated in accordance with Section 3.1(b)(i), the Company shall, and the Investor Stockholders and the
Management Holders shall take all Necessary Action to, include in the slate of nominees recommended for election as directors at each applicable annual or special meeting of stockholders at which directors are to be elected, or pursuant to a written
consent, that number of individuals designated by the THL Party that, if elected, will result in the 

  
 -7- 








 
THL Party having the number of THL Supplemental Directors serving on the Board that is shown below, and the other Investor Stockholders agree to vote in favor of such nominees. 

 

			
	 Minimum Percentage
	  	 Number of THL Supplemental Directors

	 50% or greater
	  	2
	 Less than 50% but greater than or equal to 40%
	  	1

 (c) Advent Representation. For so long as the Advent Party holds a number of shares of Common Stock
representing the Minimum Percentages shown below, the Company shall, and the Investor Stockholders and Management Holders shall take all Necessary Action to, include in the slate of nominees recommended by the Board for election as directors at each
applicable annual or special meeting of stockholders at which directors are to be elected, or pursuant to a written consent, that number of individuals designated by the Advent Party that, if elected, will result in the Advent Party having the
number of directors serving on the Board that is shown below, and the other Investor Stockholders agree to vote in favor of such nominees. 
  

			
	 Minimum Percentage
	  	 Number of Advent Directors

	 50% or greater
	  	2
	 Less than 50% but greater than or equal to 20%
	  	1

 (d) The Chief Executive Officer and the Executive Chairman will serve on the Board, and the Investor
Stockholders agree to vote in favor of the Chief Executive Officer and the Executive Chairman as directors. 
 (e) In the event that a
vacancy is created at any time by the death, disability, retirement, resignation or removal of any THL Director or any Advent Director, the Company hereby agrees to take all Necessary Action to cause the vacancy created thereby to be filled as soon
as practicable by a THL Director or an Advent Director, as the case may be, for so long as such Investor Stockholder has the right to designate an individual for nomination to the Board under this Agreement. 

(f) For so long as the Investor Stockholders hold a majority of the outstanding shares of Common Stock (the “Trigger Date”),
any director of the Company may be removed with our without cause by holders of a majority of the outstanding shares of Common Stock; provided, that the Investor Stockholders agree not to vote to remove each other’s directors without
cause. At and following the Trigger Date, directors may only be removed for cause by the affirmative vote of the holders of at least 75 percent of the voting power of the outstanding Stock. 

(g) Subject to Section 3.1(b)(ii), the Board shall not, and the Company will take all Necessary Action to ensure that the Board shall
not, consist of fewer than three or greater than 15 directors, the exact number of directors to be determined from time to time by resolution adopted by the affirmative vote of a majority of the Board, including a majority of the Advent Directors
and the THL Directors, voting together as a class. 
 (h) Upon any decrease in the number of directors that an Investor Stockholders is
entitled to designate for nomination to the Board, such Investor Stockholder shall take all 

  
 -8- 








 
Necessary Action to cause the appropriate number of Sponsor Directors to offer to tender resignation. If such resignation is then accepted by the Board, the Company and the Investor Stockholders
shall take all Necessary Action to cause the authorized size of the Board to be reduced accordingly. 
 (i) Except as required by applicable
law, the business and affairs of the Company shall be managed by or under the direction of the Board. At all meetings of the Board, a quorum shall consist of not less than a number of directors holding a majority of the votes held by all directors;
provided, that until the Trigger Date, the attendance of at least one THL Director shall be required for a quorum to be present. At each meeting of the Board (or committee thereof) at which a quorum is present, each director shall be entitled
to one vote on each matter to be voted on at such meeting. All actions of the Board shall require the affirmative vote of at least a majority of the votes held by all directors present at such meeting. Subject to applicable law, any action that may
be taken at a meeting of the Board may also be taken by written consent of the members of the Board in lieu of a meeting. 
 (j) The Company
and the Investor Stockholders shall take all Necessary Action to ensure that the composition of the Board complies with all applicable law and stock exchange rules upon loss of the “controlled company” exemption under the applicable stock
exchange rules. 
 3.2. Expenses and Indemnification. The Company shall pay the reasonable out-of-pocket expenses incurred by each
member of the Board in connection with performing his or her duties as a member of the Board, including the reasonable out-of-pocket expenses incurred by such person for attending meetings of the Board or any committee thereof or meetings of any
board of directors or other similar managing body (and any committee thereof) of any Subsidiary of the Company. The Company shall obtain customary director and officer liability insurance on commercially reasonable terms. 

Section 4. Restrictions on Transfers of Stock by Stockholders. No Stockholder (other than any Investor Stockholder in accordance
with paragraph (b) below) shall Transfer any Stock other than (i) pursuant to a Permitted Management Transfer, (ii) with the prior written consent of the THL Party or (iii) to any Person either (A) pursuant to the exercise
of registration rights under the Registration Rights Agreement, or (B) pursuant to an exemption from registration under the Securities Act, provided, that, until the Minimum Percentage of the THL Party is less than 10 percent, no
Transfers shall be permitted under this clause (iii) if, after giving effect to any such Transfers, the Minimum Percentage held by such Stockholder and his Permitted Management Holder Transferee is less than the Minimum Percentage of the THL
Party. 
 Section 5. Financial and Business Information. For so long as any Investor Stockholder, together with its Affiliates,
has the right to designate a member of the Board the Company shall provide to such Investor Stockholder the following information (i) unaudited consolidated quarterly financial reports of the Company and its consolidated subsidiaries prepared
in accordance with GAAP for the first three fiscal quarters of each year, which shall be provided at the same time that the Company provides such financial reports to the Company’s lenders and no later than 60 days after the end of such
fiscal quarter, (ii) audited consolidated 

  
 -9- 








 
annual financial reports of the Company and its consolidated subsidiaries prepared in accordance with GAAP, which shall be provided at the same time that the Company is required to provide such
financial reports to the Company’s lenders and no later than 120 days after the end of the Company’s fiscal year, (iii) an annual consolidated budget for the Company and its Subsidiaries as approved by the Board no later than
90 days after the end of the Company’s fiscal year, (iv) with respect to each Investor Stockholder, complete copies of the quarterly information packages distributed to the Company’s lenders at the same time the Company provides
such information packets to the Company’s lenders and no later than 60 days after the end of each fiscal quarter and (v) all information that is provided to the Board in connection with any meeting thereof, which information shall be
provided to all Investor Stockholders at the same time it is provided to the Board; provided, however, that each Stockholder receiving information pursuant to this Section 5 shall comply with the requirements of
Section 6 herein. 
 Section 6. Confidentiality. Each Stockholder shall maintain the confidentiality of any
confidential and proprietary information of the Company, including any information received by any Investor Stockholder pursuant to Section 5 hereof, (“Proprietary Information”) using the same standard of care, but in no
event less than reasonable care, as it applies to its own confidential information; provided, however, that a Stockholder may disclose Proprietary Information (a) to its representatives in connection with monitoring its investment
in the Company, (b) to any Affiliate, partner, limited partner, member, trustee, investor or related investment fund of such Stockholder and its and their respective investors, limited partners, directors, employees and consultants, in each
case, in the ordinary course of business, or (c) as may otherwise be required by law, rule, regulation or self-regulatory organization, and further provided, that (i) such Proprietary Information provided pursuant to
clauses (a) to (c) above is identified prior to disclosure by the Stockholder to the recipient as requiring confidential treatment, and (ii) the disclosing Stockholder shall be responsible for the acts and omissions
related to the Proprietary Information of any Person to whom such Stockholder discloses Proprietary Information (other than pursuant to clause (c) above). “Proprietary Information” shall not include any information
(a) that is publicly available (other than as a result of dissemination by such Stockholder) or a matter of public knowledge generally, (b) that was known to such Stockholder on a non-confidential basis, without, to such Stockholders’
knowledge, breach of any third party’s confidentiality obligations, prior to its disclosure by the Company, or (c) that is or was independently developed or conceived by such Stockholder without use of the Proprietary Information. 

Section 7. Corporate Opportunities. To the fullest extent permitted by applicable law, the Company, on behalf of itself and its
Subsidiaries, and each of the Stockholders, hereby renounces any interest, duty or expectancy of the Company and its Subsidiaries in, or in being offered an opportunity to participate in, business opportunities that are from time to time presented
to any Investor Stockholder, any Affiliate of any Investor Stockholder or any director (or director of any Subsidiary of the Company) designated by any of the foregoing (each an “Investor Stockholder Party”) even if the opportunity
is one that the Company or its Subsidiaries might reasonably be deemed to have pursued or had the ability or desire to pursue if granted the opportunity to do so and each Investor Stockholder Party shall have no duty to communicate or offer such
business opportunity to the Company and to the fullest extent permitted by applicable law, shall not be liable to the Company or any of its Subsidiaries for breach of any fiduciary or other duty, as a director or otherwise, by reason of the fact
that such Investor Stockholder Party 

  
 -10- 








 
pursues or acquires such business opportunity, directs such business opportunity to another Person or fails to present such business opportunity, or information regarding such business
opportunity, to the Company or its Subsidiaries. 
 Section 8. Termination. Section 3 shall terminate automatically
(without any action by any party hereto) as to each Investor Stockholder upon the time at which such Investor Stockholder no longer has the right to designate an individual for nomination to the Board under this Agreement; provided, that the
provision in Section 3.2 shall survive such termination. The remainder of this Agreement shall terminate automatically (without any action by any party hereto) as to each Stockholder when such Stockholder ceases to hold any Shares;
provided, that this Agreement shall terminate with respect to each such Management Holder at such time when (i) such Management Holder is not a director, officer or employee of the Company or any of its Subsidiaries (or any Affiliate of
such Person (other than the Investor Stockholders and the Sponsor Directors)), (ii) such Management Holder holds less than 1% of the Company’s outstanding shares of Common Stock and (iii) except where such Management Holder is
terminated without Cause or for Good Reason (to the extent defined in any applicable employment agreement), six months have elapsed since such Management Holder was a director, officer or employee of the Company or any of its Subsidiaries. 

Section 9. Further Assurances. At any time or from time to time after the date of this Agreement, the parties agree to cooperate
with each other, and at the request of any other party, to execute and deliver any further instruments or documents and to take all such further action as the other party may reasonably request in order to evidence or effectuate the consummation of
the transactions contemplated hereby and to otherwise carry out the intent of the parties hereunder. 
 Section 10. Amendment and
Waiver. Except as otherwise provided herein, no modification, amendment or waiver of any provision of this Agreement shall be effective against the Company or any Stockholder unless such modification, amendment or waiver is approved in writing
by the THL Party. Notwithstanding the foregoing, no amendment shall be made or waiver granted in a manner that adversely affects (i) the Advent Party without the prior written consent of such affected party, (ii) the Management
Holders’ rights hereunder, to the extent that such amendment or waiver has a material and disproportionate impact or effect on the Management Holders’ as a Group as compared to the other Stockholders, without the prior written consent of
the Majority Management Holders, or (iii) any particular Management Holder’s rights or obligations hereunder to the extent (and only to the extent) such particular Management Holder would be uniquely and adversely affected by such
amendment or waiver, without the written consent of such Management Holder. The failure of any party to enforce any of the provisions of this Agreement shall in no way be construed as a waiver of such provisions and shall not affect the right of
such party thereafter to enforce each and every provision of this Agreement in accordance with its terms. 
 Section 11. Entire
Agreement. This Agreement, the Registration Rights Agreement and the other writings referred to herein or delivered pursuant hereto or which make specific reference to this Section 11 form a part hereof and contain the entire
agreement and understanding among the parties hereto with respect to the subject matter hereof and supersede and preempt any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the
subject matter hereof in any way. 

  
 -11- 








 Section 12. Successors and Assigns. Except as otherwise provided herein, this
Agreement shall bind and inure to the benefit of and be enforceable by the Company and its successors and assigns and each Stockholder and its successors, permitted assigns, heirs and personal representatives. Subject to compliance with the
provisions of this Agreement, (i) each Investor Stockholder shall, at any time and without the consent of any other party hereto, have the right to assign all or part of its rights and obligations under this Agreement to one or more of its
Affiliates or (ii) each Stockholder shall, at any time and without the consent of any other party hereto, have the right to assign all or part of its rights and obligations under this Agreement to any Person to whom such Stockholder Transferred
Stock in accordance with this Agreement; provided, however, that, without the prior written consent of the THL Party, the Advent Party shall not be permitted to assign any of its rights under Section 3 to any transferee
other than an Affiliate of such person. Upon any such permitted assignment, such assignee shall have and be able to exercise and enforce all rights of the assigning party which are assigned to it and, to the extent such rights are assigned, any
reference to the assigning Stockholder shall be treated as a reference to the assignee. 
 Section 13. Severability. Whenever
possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any
applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as if such
invalid, illegal or unenforceable provision had never been contained herein. 
 Section 14. Remedies. Each party hereto shall be
entitled to enforce its rights under this Agreement specifically, to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights existing in its favor. The parties hereto agree and acknowledge that
money damages may not be an adequate remedy for any breach of the provisions of this Agreement and that each party may in its sole discretion apply to any court of law or equity of competent jurisdiction for specific performance and/or injunctive
relief (without posting a bond or other security) in order to enforce or prevent any violation of the provisions of this Agreement. 

Section 15. Notices. All notices, requests, consents and other communications hereunder to any party shall be deemed to be
sufficient if contained in a written instrument delivered in person or by telecopy (with a confirmatory copy sent by different means within three business days of such notice), nationally recognized overnight courier or first class registered or
certified mail, return receipt requested, postage prepaid, addressed to such party at the address set forth below and to any subsequent holder of Stock subject to this Agreement at such address as indicated by the Company’s records, or at such
address or to the attention of such other person as may hereafter be designated in writing by such party to the other parties: 

  
 -12- 








 if to the Company to: 

Party City Holdco Inc. 
 80
Grasslands Road 
 Elmsford, NY 10523 

Facsimile: (914) 345-2056 

Attention: Michael A. Correale 

Email: MCorreale@amscan.com 

with a copy (which shall not constitute notice) to: 

Ropes & Gray LLP 

Prudential Tower, 800 Boylston Street 

Boston, MA 02199-3600 
 Facsimile:
(617) 235-0433 
 Attention: Julie H. Jones 

Email: Julie.Jones@ropesgray.com 

if to the THL Party, to: 
 c/o
Thomas H. Lee Partners, L.P. 
 100 Federal Street, 35th Floor 

Boston, MA 02110 
 Facsimile:
(617) 227-3514 
 Attention: Todd M. Abbrecht and Joshua M. Nelson 

Email: TAbbrecht@THL.com 

 JNelson@THL.com 
 with a
copy (which shall not constitute notice) to: 
 Ropes & Gray LLP 

Prudential Tower, 800 Boylston Street 

Boston, MA 02199-3600 
 Facsimile:
(617) 235-0433 
 Attention: Julie H. Jones 

Email: Julie.Jones@ropesgray.com 
 if to the
Advent Party, to: 
 Advent International Corporation 

75 State Street 
 Boston, MA 02109

 Facsimile: (617) 951-9353 

Attention: Jefferson M. Case and James Westra 

Email: JCase@AdventInternational.com 

 JWestra@AdventInternational.com 

  
 -13- 








 with a copy (which shall not constitute notice) to: 

Ropes & Gray LLP 

Prudential Tower, 800 Boylston Street 

Boston, MA 02199-3600 
 Facsimile:
(617) 235-0433 
 Attention: Julie H. Jones 

Email: Julie.Jones@ropesgray.com 

if to any Management Holder, to: such address indicated in the records of the Company: 

with a copy (which shall not constitute notice) to: 

Ropes & Gray LLP 

Prudential Tower, 800 Boylston Street 

Boston, MA 02199-3600 
 Facsimile:
(617) 235-0433 
 Attention: Julie H. Jones 

Email: Julie.Jones@ropesgray.com 
 All such
notices, requests, consents and other communications will be deemed to have been given hereunder when received. 
 Section 16.
Governing Law; Submission to Jurisdiction; Waiver of Jury Trial. 
 (a) This Agreement, including the validity hereof and the rights
and obligations of the parties hereunder, all amendments and supplements hereto and the transactions contemplated hereby, and all actions or proceedings arising out of or relating to this Agreement, of any nature whatsoever, shall be construed in
accordance with and governed by the domestic substantive laws of the State of Delaware without giving effect to any choice of law or conflicts of law provision or rule that might otherwise cause the application of the domestic substantive laws of
any other jurisdiction. The parties hereto hereby irrevocably submit to the exclusive jurisdiction of the state and federal courts located in the Borough of Manhattan within the State of New York in connection with any dispute arising out of or
relating to this Agreement or any of the transactions contemplated hereby (except for actions to enforce a judgment rendered by a state or federal court located in the Borough of Manhattan within the State of New York in connection with any dispute
that arises out of this Agreement or any of the transactions), and each party hereby irrevocably waives, to the fullest extent permitted by applicable law, any objection which they may now or hereafter have to the laying of venue of any such dispute
brought in such court or any defense of inconvenient forum or lack of personal jurisdiction in respect of such dispute. Each of the parties hereto agrees that a judgment rendered in any such dispute may be enforced in other jurisdictions by suit on
the judgment or in any other manner provided by law. 
 (b) Each party hereto hereby waives to the fullest extent permitted by applicable
law any right it may have to a trial by jury in respect of any legal proceeding directly or indirectly arising out of, under or in connection with this Agreement or any transaction contemplated hereby. Each party hereto (i) certifies that no
representative, agent or attorney of any other party has represented, expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce the foregoing waiver and (ii) acknowledges that it and the other parties
hereto have been induced to enter into this Agreement by, among other things, the mutual waivers and certifications in this Section 16. 

  
 -14- 








 Section 17. No Publicity. 

(a) None of the Stockholders or the Company shall issue any public announcements or make any published statements regarding this Agreement, or
the subject matter hereof, without the prior written consent of the THL Party and the Advent Party; provided, that, this Section 17(a) shall not limit disclosures by any Stockholder if such disclosure is requested or required by
applicable law or any governmental entity or self-regulatory organization having jurisdiction over such Stockholder or its Affiliates or any of its respective representatives or advisers, or that such Stockholder deems advisable to provide to such a
governmental entity or self-regulatory organization, in each case whether in connection with an audit, examination or otherwise. 
 (b) The
Company shall not, and shall ensure that its Affiliates and its and their respective officers, directors, employees and other representatives do not, without the prior written consent of the applicable Investor Stockholder, (i) use in
advertising, publicity or otherwise the name of such Investor Stockholder, or any of its Affiliates, or the name of any member, stockholder, partner, manager or employee of such Investor Stockholder or any of its Affiliates or any trade name,
trademark, trade device, logo, service mark, symbol or any abbreviation, contraction or simulation thereof owned or used by such Investor Stockholder or any of its Affiliates, (ii) represent, directly or indirectly, that any product or any
service provided by the Company or any Affiliate of the Company has been approved, endorsed, recommended or provided by, or in association with, such Investor Stockholder or any of its Affiliates after the date of this Agreement, or
(iii) disclose the fact that such Investor Stockholder is a Stockholder of the Company. 
 Section 18. Company Logo. The
Company hereby grants the Investor Stockholders permission to use the Company’s and its Subsidiaries’ name and logo in marketing materials. The Investor Stockholders, or Affiliates of the Investor Stockholders, as applicable, shall include
a trademark attribution notice giving notice of the Company’s ownership of its trademarks in the marketing materials in which the Company’s or any of its Subsidiaries’ name and logo appear. 

Section 19. Descriptive Headings. The descriptive headings of this Agreement are inserted for convenience only and do not
constitute a part of this Agreement. 
 Section 20. Conflicting Agreements. Other than with respect to proxies or powers of
attorney that one or more of the Investor Stockholders may have granted or grant to an Affiliate of such Investor Stockholder, each Stockholder represents and warrants that such Stockholder has not granted and is not a party to any proxy, voting
trust or other agreement which conflicts with any provision of this Agreement, and no holder of Stock shall grant any proxy or become party to any voting trust or other agreement which conflicts with any provision of this Agreement. 

  
 -15- 








 Section 21. Counterparts. This Agreement may be executed in separate counterparts
each of which shall be an original and all of which taken together shall constitute one and the same agreement. 
 [Remainder of
Page Intentionally Left Blank] 

  
 -16- 








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

			
	PARTY CITY HOLDCO INC.
		
	By:		  

	Name:		
	Title:		


 [SIGNATURE PAGE TO STOCKHOLDERS AGREEMENT] 








			
	THE THL PARTY:
	
	THL PC TOPCO, L.P.
		
	By:		THL Equity Advisors VI, LLC,
			its general partner
		
	By:		Thomas H. Lee Partners, L.P.,
			its sole member
		
	By:		Thomas H. Lee Advisors, LLC,
			its general partner
		
	By:		THL Holdco, LLC,
			its managing member
		
	By:		  

	Name:		
	Title:		


 [SIGNATURE PAGE TO STOCKHOLDERS AGREEMENT] 








			
	 THE ADVENT PARTY:

	
	 ADVENT-PARTY CITY ACQUISITION LIMITED PARTNERSHIP

		
	By:		 Advent-Party City GP, LLC,
 its general
partner

		
	By:		  

	Name:		
	Title:		


 [SIGNATURE PAGE TO STOCKHOLDERS AGREEMENT] 








			
	MANAGEMENT HOLDER:
	
	CHARLES ARTHUR RITTENBERG 2008
TRUST
		
	By:		  

	Name:		
	Title:		


 [SIGNATURE PAGE TO STOCKHOLDERS AGREEMENT] 








			
	MANAGEMENT HOLDER:
	
	JACK DOLLIVER RITTENBERG 2013 TRUST
		
	By:	 	  

	Name:	 	
	Title:	 	


 [SIGNATURE PAGE TO STOCKHOLDERS AGREEMENT] 








			
	MANAGEMENT HOLDER:
	
	THEODORE FREDERICK RITTENBERG 2014 TRUST
		
	By:		  

	Name:		
	Title:		


 [SIGNATURE PAGE TO STOCKHOLDERS AGREEMENT] 








			
	MANAGEMENT HOLDER:
	
	CRAIG M. RITTENBERG SELF-SETTLED TRUST U/A/D JUNE 28, 2008
		
	By:		  

	Name:		
	Title:		


 [SIGNATURE PAGE TO STOCKHOLDERS AGREEMENT] 








			
	MANAGEMENT HOLDER:
	
	BJM2 LLC
		
	By:		  

	Name:		
	Title:		


 [SIGNATURE PAGE TO STOCKHOLDERS AGREEMENT] 








			
	MANAGEMENT HOLDER:
	
	RITTS ENTERPRISES LLC
		
	By:		  

	Name:		
	Title:		


 [SIGNATURE PAGE TO STOCKHOLDERS AGREEMENT] 








			
	MANAGEMENT HOLDER:
	
	HARRISON FAMILY 2010 TRUST
		
	By:		  

	Name:		
	Title:		


 [SIGNATURE PAGE TO STOCKHOLDERS AGREEMENT] 








	
	MANAGEMENT HOLDER:
	
	  

	Gregg Melnick


 [SIGNATURE PAGE TO STOCKHOLDERS AGREEMENT] 








	
	MANAGEMENT HOLDER:
	
	  

	Alice Tang


 [SIGNATURE PAGE TO STOCKHOLDERS AGREEMENT] 








	
	MANAGEMENT HOLDER:
	
	  

	Diane Spaar


 [SIGNATURE PAGE TO STOCKHOLDERS AGREEMENT] 








			
	MANAGEMENT HOLDER:
	
	ETHAN REES SPAAR IRREVOCABLE TRUST
		
	By:		  

	Name:		
	Title:		


 [SIGNATURE PAGE TO STOCKHOLDERS AGREEMENT] 







 
			
	MANAGEMENT HOLDER:
	
	JULIA ROSE SPAAR IRREVOCABLE TRUST
		
	By:		  

	Name:		
	Title:		


 [SIGNATURE PAGE TO STOCKHOLDERS AGREEMENT] 








			
	MANAGEMENT HOLDER:
	
	KEITH ALAN SPAAR JR. IRREVOCABLE TRUST
		
	By:		  

	Name:		
	Title:		


 [SIGNATURE PAGE TO STOCKHOLDERS AGREEMENT] 







 
			
	 MANAGEMENT HOLDER:

	
	 WILLA ANNE SPAAR IRREVOCABLE TRUST

		
	By:		  

	Name:		
	Title:		


 [SIGNATURE PAGE TO STOCKHOLDERS AGREEMENT] 







 
	
	MANAGEMENT HOLDER:
	
	  

	Steven Skiba


 [SIGNATURE PAGE TO STOCKHOLDERS AGREEMENT] 







 
	
	MANAGEMENT HOLDER:
	
	  

	Michael Correale


 [SIGNATURE PAGE TO STOCKHOLDERS AGREEMENT] 







 
			
	MANAGEMENT HOLDER:
	
	MELNICK 2008 FAMILY TRUST
		
	By:		  

	Name:		
	Title:		


 [SIGNATURE PAGE TO STOCKHOLDERS AGREEMENT]