Document:

Moody National REIT II, Inc. 10-K

EXHIBIT
4.1

 

DESCRIPTION
OF REGISTRANT’S SECURITIES  

REGISTERED
PURSUANT TO SECTION 12 OF  

THE
SECURITIES EXCHANGE ACT OF 1934

 

The
following is a summary of the securities of Moody National REIT II, Inc. (the “Company” or “we,” “us”
or “our”) registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”). This description of the terms of our stock does not purport to be complete and is subject to and qualified in its
entirety by reference to the applicable provisions of Maryland General Corporation Law (“MGCL”), and the full text
of our charter and bylaws.

 

General

 

Under
our charter, we have authority to issue a total of 1,100,000,000 shares of capital stock, $ 0.01 par value per share. On June
12, 2017, we renamed our outstanding shares of common stock as Class A common stock and reclassified our authorized and unissued
Class A shares into three new share classes: Class D, Class I, and Class T common stock. Of the 1,100,000,000 shares of capital
stock authorized, 250,000,000 shares are classified as Class A common stock, 250,000,000 shares are classified as Class D common
stock, 250,000,000 shares are classified as Class I common stock, 250,000,000 shares are classified as Class T common stock and
100,000,000 shares of capital stock are classified as preferred stock. We have no Class D stockholders. Our board of directors,
with the approval of a majority of the entire board of directors and without any action by our stockholders, may amend our charter
from time to time to increase or decrease the aggregate number of shares of capital stock or the number of shares of capital stock
of any class or series that we have authority to issue.

 

Common
Stock

 

Except
for certain charter amendments that would alter only the contract rights of a particular class of common stock, in which case
the holders of shares of that class have exclusive voting rights on the amendment and no holders of any other class or series
of shares will be entitled to vote thereon, the holders of each class of shares of our common stock are entitled to one vote per
share on all matters voted on by stockholders, including the election of our directors. Our charter does not provide for cumulative
voting in the election of directors. Therefore, the holders of a majority of the outstanding shares of our common stock can elect
our entire board of directors. Subject to any preferential rights of any outstanding class or series of preferred stock, the holders
of shares of our common stock are entitled to such distributions as may be authorized from time to time by our board of directors
out of legally available funds and declared by us and, upon liquidation, are entitled to receive all assets available for distribution
to stockholders. Holders of shares of our common stock will not have preemptive rights, which means that stockholders will not
have an automatic option to purchase any new shares of common stock that we issue, or have appraisal rights, unless our board
of directors determines that appraisal rights apply, with respect to all or any classes or series of our stock, to one or more
transactions occurring after the date of such determination in connection with which stockholders would otherwise be entitled
to exercise such rights. Stockholders are not liable for our acts or obligations due to their status as stockholders.

 

Our
board of directors has authorized the issuance of shares of our capital stock without certificates. Shares of our common stock
are held in “uncertificated” form which will eliminate the physical handling and safekeeping responsibilities inherent
in owning transferable share certificates and eliminate the need to return a duly executed share certificate to effect a transfer.
DST Systems, Inc. acts as our registrar and as the transfer agent for shares of our common stock.

 

Fees
on Shares of our Common Stock

 

Each
Class A share issued in the primary offering was subject to an upfront selling commission of up to 6.0% of the purchase price
per share and an upfront dealer manager fee of up to 2.5% of the purchase price per share. There is no stockholder servicing fees
charged with respect to the Class A shares.

 

Each
Class I share issued in the primary offering was subject to an up-front dealer manager fee of up to 1.0% of the purchase price
per share. All of such dealer manager fee was waived for shares purchased through non-affiliated registered investment advisors.
There was no selling commissions or stockholder servicing fees charged with respect to the Class I shares.

 

Each
Class T share issued in the primary offering was subject to an upfront selling commission of up to 3.0% of the purchase price
per share and an upfront dealer manager fee of up to 2.5% of the purchase price per share.

 

In
addition, each outstanding Class T share sold in our primary offering is subject to an annual stockholder servicing fee that accrues
daily in an amount equal to 1/365th of up to 1.0% of the NAV per Class T share sold in the primary offering.

 

     

     

    

 

The
stockholder servicing fee paid on the Class T Shares will terminate on the earlier of: (i) a listing of the Class A shares on
a national securities exchange; (ii) our merger or consolidation with or into another entity, any voluntary or involuntary liquidation,
dissolution or winding up of our company or other disposition of all or substantially all of our assets, in each case in a transaction
in which our stockholders receive cash and/or shares listed on a national securities exchange; (iii) the end of the month in which
our dealer manager determines that total underwriting compensation paid in the primary offering is equal to 10.0% of the gross
proceeds of the primary offering from the sale of Class A shares, Class I shares and Class T shares; and (iv) with respect to
Class T shares held in a particular stockholder account, the end of the month in which total underwriting compensation from whatever
source (including dealer manager fees, selling commissions and any other underwriting compensation paid to participating broker-dealers
with respect such Class T shares in the stockholder account) would be in excess of 8.5% of the total gross investment amount in
Class T shares determined at the time of the most recent purchase of the Class T shares held in such account (or a lower limit,
provided that, in the case of a lower limit, the agreement between our dealer manager and the participating broker dealer in effect
at the time Class T shares were first issued to such account sets forth the lower limit and our dealer manager advises our transfer
agent of the lower limit in writing). Although we cannot predict the length of time over which the stockholder servicing fee will
be paid due to potential changes in the NAV of our shares, this fee would be paid with respect to a Class T share (in the case
of a limit of 8.5% of gross proceeds) for approximately three years from the date of purchase, assuming payment of the full upfront
selling commissions and dealer manager fees.

 

Upon
the termination of the payment of trailing stockholder servicing fees as described in the preceding paragraph, the applicable
Class T shares will convert into Class A shares. The number of Class A shares into which a Class T share will convert will be
based upon a conversion ratio equal to the NAV per share of the Class T shares on the date of conversion divided by the NAV per
share of the Class A shares on the date of conversion. We cannot predict if or when any of these events will occur.

 

The
Class I shares will convert into Class A shares upon (i) a listing of the Class A shares on a national securities exchange; or
(ii) our merger or consolidation with or into another entity, any voluntary or involuntary liquidation, dissolution or winding
up of our company or other disposition of all or substantially all of our assets, in each case in a transaction in which our stockholders
receive cash and/or shares listed on a national securities exchange. The number of Class A shares into which a Class I share will
convert will be based upon a conversion ratio equal to the NAV per share of the Class I shares on the date of conversion divided
by the NAV per share of the Class A shares on the date of conversion.

 

Our
advisor will pay all selling commissions, dealer manager fees and stockholder servicing fees with respect to our Class A shares,
Class I shares and Class T shares and may pay other fees paid on behalf of clients of nonaffiliated registered investment advisors
with respect to our Class I shares. Our advisor intends to recoup such amounts through the receipt of the Contingent Advisor Payment.

 

We
will not pay selling commissions, dealer manager fees or stockholder servicing fees on shares sold pursuant to our distribution
reinvestment plan.

 

Our
board of directors also previously classified Class D shares of common stock. We have no Class D stockholders.

 

Rights
Upon Liquidation

 

In
the event of any voluntary or involuntary liquidation, dissolution or winding up of us, or any liquidating distribution of our
assets, then such assets, or the proceeds therefrom, will be distributed to the holders of Class A, Class I and Class T shares
ratably in proportion to the respective NAV for each class after payment of or adequate provision for all our known debts and
other liabilities and subject to any preferential rights of holders of preferred stock, if any preferred stock is outstanding
at such time. To calculate the NAV for each class, we will first determine our NAV and then apply any class-specific fees in order
to determine the respective NAV for each respective class of shares.

 

Preferred
Stock

 

Our
charter authorizes our board of directors to classify and reclassify any unissued shares of our common stock and preferred stock
into other classes or series of stock. Prior to issuance of shares of each class or series, our board of directors is required
by the MGCL and by our charter to set, subject to our charter restrictions on ownership and transfer of our stock, the terms,
the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions,
qualifications and terms and conditions of repurchase for each class or series. Thus, our board of directors could authorize the
issuance of shares of common stock or preferred stock with terms or conditions which could have the effect of delaying, deferring
or preventing a transaction or change in control that might involve a premium price for holders of our common stock or otherwise
be in their best interest. Our board of directors has no present plans to issue preferred stock, but may do so at any time in
the future without stockholder approval. The issuance of preferred stock must be approved by a majority of our independent directors
not otherwise interested in the transaction, who will have access, at our expense, to our legal counsel or to independent legal
counsel.

 

     

     

    

 

Meetings,
Special Voting Requirements and Access to Records

 

An
annual meeting of the stockholders will be held each year on a specific date and time set by our board of directors, upon reasonable
notice to our stockholders, but no sooner than 30 days after delivery of our annual report to stockholders. Special meetings of
stockholders may be called only upon the request of a majority of the directors, a majority of the independent directors, the
chairman, the chief executive officer, or the president and will be called by our secretary to act upon any matter that may properly
be considered at a meeting of stockholders upon the written request of stockholders entitled to cast at least 10% of the votes
entitled to be cast on such matter at the meeting. Upon receipt of a written request of eligible stockholders, either in person
or by mail, stating the purpose of the meeting, we will provide all stockholders, within ten days after receipt of such request,
written notice either in person or by mail, of such meeting and the purpose thereof. Such meeting will be held on a date not less
than 15 nor more than 60 days after the distribution of such notice, at a time and place specified in the request, or if none
is specified, at a time and place convenient to stockholders. The presence either in person or by proxy of stockholders entitled
to cast at least 50% of all the votes entitled to be cast at the meeting on any matter will constitute a quorum. Generally, the
affirmative vote of a majority of all votes cast is necessary to take stockholder action, except as provided in the following
paragraph and except that the affirmative vote of a majority of the shares represented in person or by proxy at a meeting at which
a quorum is present is required to elect a director.

 

Under
the MGCL and our charter, stockholders are generally entitled to vote at a duly held meeting at which a quorum is present on (1)
the amendment of our charter, (2) our dissolution, (3) our merger, consolidation or conversion or the sale or other disposition
of all or substantially all of our assets. These matters require the affirmative vote of stockholders entitled to cast at least
a majority of the votes entitled to be cast on the matter. With respect to stock owned by our advisor, directors, or any of their
affiliates, neither the advisor nor such directors, nor any of their affiliates may vote or consent on matters submitted to stockholders
regarding the removal of the advisor, such directors or any of their affiliates or any transaction between us and any of them.
In determining the requisite percentage in interest of shares necessary to approve a matter on which our advisor, our directors
or their affiliates may not vote or consent, any shares owned by any of them shall not be included.

 

The
advisory agreement, including the selection of our advisor, is approved annually by our directors, including a majority of the
independent directors. While the stockholders do not have the ability to vote to replace our advisor or to select a new advisor,
stockholders do have the ability, by the affirmative vote of a majority of all the votes entitled to be cast generally in the
election of directors, to remove a director from our board of directors. Any stockholder will be permitted access to all of our
corporate records at all reasonable times and may inspect and copy any of them for a reasonable copying charge. Inspection of
our records by the office or agency administering the securities laws of a jurisdiction will be provided upon reasonable notice
and during normal business hours. An alphabetical list of the names, addresses and telephone numbers of our stockholders, along
with the number of shares of our common stock held by each of them, will be maintained as part of our books and records and will
be available for inspection by any stockholder or the stockholder’s designated agent at our office. The stockholder list
will be updated at least quarterly to reflect changes in the information contained therein. A copy of the list will be mailed
to any stockholder who requests the list within 10 days of the request. A stockholder may request a copy of the stockholder list
in connection with matters relating to voting rights and the exercise of stockholder rights under federal proxy laws. A stockholder
requesting a list will be required to pay the reasonable costs of postage and duplication. We have the right to request that a
requesting stockholder represent to us that the list will not be used to pursue commercial interests. In connection with the mailing
of a stockholder list to a requesting stockholder, the copy of the stockholder list will be printed in alphabetical order, on
white paper, and in a readily readable type size (in no event smaller than ten-point type). We may impose a reasonable charge
for expenses incurred in reproduction pursuant to a stockholder request. In addition to the foregoing, stockholders have rights
under Rule 14a-7 under the Exchange Act, which provides that, upon the request of investors and the payment of the expenses of
the distribution, we are required to distribute specific materials to stockholders in the context of the solicitation of proxies
for voting on matters presented to stockholders or, at our option, provide requesting stockholders with a copy of the list of
stockholders so that the requesting stockholders may make the distribution of proxies themselves. If a proper request for the
stockholder list is not honored, then the requesting stockholder will be entitled to recover certain costs incurred in compelling
the production of the list as well as actual damages suffered by reason of the refusal or failure to produce the list. However,
a stockholder will not have the right to, and we may require a requesting stockholder to represent that it will not, secure the
stockholder list or other information for the purpose of selling or using the list for a commercial purpose not related to the
requesting stockholder’s interest in our affairs.

 

Tender
Offers

 

Our
charter provides that any tender offer made by any person, including any “mini-tender” offer, must comply with most
of the provisions of Regulation14D of the Exchange Act, including the notice and disclosure requirements. Among other things,
the offeror must provide us notice of such tender offer at least ten business days before initiating the tender offer. If the
offeror does not comply with the provisions set forth above, the non-complying offeror will be responsible for all of our expenses
in connection with that offeror’s noncompliance. Our charter also prohibits any stockholder from transferring shares of
stock to a person who makes a tender offer which does not comply with such provisions unless such stockholder has first offered
such shares of stock to us at the tender offer price in the non-compliant tender offer.

 

     

     

    

 

Restriction
on Ownership of Shares of Capital Stock

 

For
us to qualify as a REIT, no more than 50% in value of the outstanding shares of our stock may be owned, directly or indirectly
through the application of certain attribution rules under the Internal Revenue Code, by any five or fewer individuals, as defined
in the Internal Revenue Code to include specified entities, during the last half of any taxable year. In addition, the outstanding
shares of our stock must be owned by 100 or more persons independent of us and each other during at least 335 days of a 12-month
taxable year or during a proportionate part of a shorter taxable year, excluding our first taxable year for which we elect to
be taxed as a REIT. In addition, we must meet requirements regarding the nature of our gross income to qualify as a REIT. One
of these requirements is that at least 75% of our gross income for each calendar year must consist of rents from real property
and income from other real property investments. Subject to special rules for leases to our TRS-lessees, the aggregate of the
rents received by our operating partnership from any tenant will not qualify as rents from real property, which could result in
our loss of REIT status, if we own, actually or constructively within the meaning of certain provisions of the Internal Revenue
Code, 10% or more of the ownership interests in that tenant. To assist us in preserving our status as a REIT, among other purposes,
our charter contains limitations on the ownership and transfer of shares of our stock which prohibit: (1) any person or entity
from owning or acquiring, directly or indirectly, more than 9.8% of the value of the aggregate of our then outstanding capital
stock or more than 9.8% of the value or number of shares, whichever is more restrictive, of the aggregate of our then outstanding
Class A, Class I or Class T shares of common stock and (2) any transfer of or other event or transaction with respect to shares
of capital stock that would result in the beneficial ownership of our outstanding shares of capital stock by fewer than 100 persons.
In addition, our charter prohibits any transfer of, or other event with respect to, shares of our capital stock that (1) would
result in us being “closely held” within the meaning of Section 856(h) of the Internal Revenue Code, (2) would cause
us to own, actually or constructively, 9.8% or more of the ownership interests in a tenant of our real property or the real property
of our operating partnership or any direct or indirect subsidiary of our operating partnership or (3) would otherwise cause us
to fail to qualify as a REIT.

 

Our
charter provides that the shares of our capital stock that, if transferred, would: (1) result in a violation of the 9.8% ownership
limits; (2) result in us being “closely held” within the meaning of Section 856(h) of the Internal Revenue Code; (3)
cause us to own 9.8% or more of the ownership interests in a tenant of our real property or the real property of our operating
partnership or any direct or indirect subsidiary of our operating partnership; or (4) otherwise cause us to fail to qualify as
a REIT, will be transferred automatically to a trust effective on the day before the purported transfer of such shares of our
capital stock. We will designate a trustee of the trust that will not be affiliated with us or the purported transferee or record
holder. We will also name a charitable organization as beneficiary of the trust. The trustee will receive all distributions on
the shares of our capital stock in the trust and will hold such distributions in trust for the benefit of the beneficiary. The
trustee also will vote the shares of capital stock in the trust and, subject to Maryland law, will have the authority to rescind
as void any vote cast by the intended transferee prior to our discovery that the shares have been transferred to the trust and
to recast the vote in accordance with the desires of the trustee acting for the benefit of the charitable beneficiary. However,
if we have already taken irreversible corporate action, then the trustee will not have the authority to rescind and recast the
vote. The intended transferee will acquire no rights in such shares of capital stock, unless, in the case of a transfer that would
cause a violation of the 9.8% ownership limits the transfer is exempted (prospectively or retroactively) by our board of directors
from the ownership limits based upon receipt of information (including certain representations and undertakings from the intended
transferee) that such transfer would not violate the provisions of the Internal Revenue Code for our qualification as a REIT.
If the transfer to the trust would not be effective for any reason to prevent a violation of the foregoing limitations on ownership
and transfer, then the transfer of that number of shares that otherwise would cause the violation will be null and void, with
the intended transferee acquiring no rights in such shares. In addition, our charter provides that any transfer of shares of our
capital stock that would result in shares of our capital stock being beneficially owned by fewer than 100 persons will be null
and void and the intended transferee will acquire no rights in such shares of our capital stock.

 

Within
20 days of receiving notice from us that shares of our stock have been transferred to the trust, the trustee will sell the shares
to a person designated by the trustee, whose ownership of the shares will not violate the above ownership limitations. Upon the
sale, the interest of the charitable beneficiary in the shares sold will terminate and the trustee will distribute the net proceeds
of the sale to the intended transferee and to the charitable beneficiary as follows. The intended transferee will receive an amount
equal to the lesser of (1) the price paid by the intended transferee for the shares or, if the intended transferee did not give
value for the shares in connection with the event causing the shares to be held in the trust (e.g., a gift, devise or other similar
transaction), the “market price” (as defined in our charter) of the shares on the day of the event causing the shares
to be held in the trust and (2) the price received by the trustee from the sale or other disposition of the shares. The trustee
may reduce the amount payable to the intended transferee by the amount of dividends and other distributions which have been paid
to the intended transferee and are owed by the intended transferee to the trustee. Any net sale proceeds in excess of the amount
payable to the intended transferee will be paid immediately to the charitable beneficiary. If, prior to our discovery that shares
have been transferred to the trust, the shares are sold by the intended transferee, then (1) the shares will be deemed to have
been sold on behalf of the trust and (2) to the extent that the intended transferee received an amount for the shares that exceeds
the amount described above that such intended transferee was entitled to receive, such excess will be paid to the trustee upon
demand.

 

     

     

    

 

In
addition, shares of our stock held in the trust will be deemed to have been offered for sale to us, or our designee, at a price
per share equal to the lesser of (1) the price per share in the transaction that resulted in the transfer to the trust (or, in
the case of a devise or gift, the market price at the time of the devise or gift) and (2) the market price on the date we, or
our designee, accept the offer. We will have the right to accept the offer until the trustee has sold the shares. Upon a sale
to us, the interest of the charitable beneficiary in the shares sold will terminate and the trustee will distribute the net proceeds
of the sale to the intended transferee. We may reduce the amount payable to the intended transferee by the amount of dividends
and other distributions which have been paid to the intended transferee and are owed by the intended transferee to the trustee.
We may pay the amount of such reduction to the trustee for the benefit of the charitable beneficiary.

 

Any
person who acquires or attempts or intends to acquire shares of our capital stock in violation of the foregoing restrictions or
who owns shares of our capital stock that were transferred to any such trust is required to give immediate written notice to us
or, in the case of a proposed or attempted transaction, at least 15 days’ prior written notice. In both cases, such persons
must provide to us such other information as we may request to determine the effect, if any, of such event on our status as a
REIT. The foregoing restrictions will continue to apply until our board of directors determines it is no longer in our best interest
to attempt to, or to continue to qualify as a REIT or that compliance is no longer required in order for REIT qualification.

 

The
ownership limits do not apply to a person or persons that our board of directors exempts (prospectively or retroactively) from
the ownership limits upon appropriate assurances that our qualification as a REIT is not jeopardized. Any person who owns more
than 5.0% (or such lower percentage applicable under Treasury Regulations) of the outstanding shares of our capital stock during
any taxable year will be asked to deliver a statement or affidavit setting forth the number of shares of our capital stock beneficially
owned.

 

Distributions

 

Our
board of directors first authorized a distribution in July 2015, and we paid our first distribution in August 2015. We expect
to continue paying monthly distributions unless our results of operations, our general financial condition, the general economic
condition or other factors prohibit us from doing so. The timing and amount of distributions will be determined by our board of
directors in its discretion and may vary from time to time. In connection with a distribution to our stockholders, our board of
directors intends to authorize a monthly distribution for a certain dollar amount per share of our common stock. We will then
calculate each stockholder’s specific distribution amount for the month using daily record and declaration dates. Each stockholder’s
distributions will begin to accrue on the date we accept such stockholder’s subscription for shares of our common stock.

 

Distributions
will be made on all classes of our common stock at the same time. As of January 16, 2018, our advisor assumed the obligation to
pay all ongoing stockholder servicing fees with respect to our Class T shares. Accordingly, going forward, we anticipate that
holders of our Class A shares, Class I shares and Class T shares will receive the same amount of distributions per share regardless
of share class. Prior to January 16, 2018, holders of our Class T shares received lower per share distributions because of the
ongoing stockholder servicing fees associated with such share classes, which were paid by us and deducted from the distribution
amounts payable to our stockholders on such shares.

 

We
are required to make distributions sufficient to satisfy the requirements for qualification as a REIT for federal income tax purposes.
Generally, income distributed will not be taxable to us under the Internal Revenue Code if we distribute at least 90% of our taxable
income each year (computed without regard to the distributions paid deduction and our net capital gain). Distributions will be
authorized at the discretion of our board of directors and declared by us, in accordance with our earnings, cash flow and general
financial condition. Our board of directors’ discretion will be directed, in substantial part, by its obligation to cause
us to comply with the REIT requirements. Because we may receive income from interest or rents at various times during our fiscal
year, distributions may not reflect our income earned in that particular distribution period and may be made in advance of actual
receipt of funds in an attempt to make distributions relatively uniform. We are authorized to borrow money, issue new securities
or sell assets to make distributions. There are no restrictions on the ability of our operating partnership to transfer funds
to us.

 

Distributions
in kind shall not be permitted, except for (1) distributions of readily marketable securities, (2) distributions of beneficial
interests in a liquidating trust established for our dissolution and the liquidation of our assets in accordance with the terms
of our charter or (3) distributions for which our board of directors advises each stockholder of the risks associated with direct
ownership of the property, our board of directors offers each stockholder the election of receiving such in-kind distributions
and in-kind distributions are made only to those stockholders that accept such offer. The receipt of marketable securities in
lieu of cash distributions may cause stockholders to incur transaction expenses in liquidating the securities. We do not have
any current intention to list our shares of our common stock on a national securities exchange, nor is it expected that a public
market for our shares of common stock will develop.

 

     

     

    

 

We
can give no assurance that we will pay distributions solely from our cash flow from operations in the future, especially during
the period when we are raising capital and have not yet acquired a substantial portfolio of income-producing investments. Our
long-term policy will be to pay distributions from cash flow from operations. However, distributions paid during the early stages
of our offering and before we have acquired a substantial portfolio of real estate assets have been, and may continue to be, funded
primarily from offering proceeds. Our organizational documents permit us to pay distributions from any source, including loans,
our advisor’s deferral of fees and expense reimbursements and offering proceeds. We have not established a limit on the
amount of proceeds we may use from the sale of our stock to fund distributions. If we pay distributions from sources other than
cash flow from operations, we will have fewer funds available for investments and a stockholder’s overall return on its
investment in us will be reduced.

 

On
March 24, 2020, in response to the COVID-19 pandemic, our board of directors approved the suspension of the payment of distributions
to our stockholders, effective immediately.

 

Distribution
Reinvestment Plan

 

Pursuant
to our distribution reinvestment plan stockholders may elect to have the cash distributions they receive reinvested in shares
of our common stock at a price equal to the most recently determined estimated NAV per share for such class of common stock.

 

Stockholders
may elect to participate in the distribution reinvestment plan by completing the subscription agreement, the enrollment form or
by other written notice to the plan administrator. Participation in the plan will begin with the next distribution made after
acceptance of a participant’s written notice. Participation in the plan may be terminated with respect to any person to
the extent that a reinvestment of distributions in shares of our common stock would cause the share ownership limitations contained
in our charter to be violated. Following any termination of our distribution reinvestment plan, all subsequent distributions to
stockholders would be made in cash. No selling commissions or dealer manager fees are payable on shares sold through our distribution
reinvestment plan.

 

Stockholders
who elect to participate in the distribution reinvestment plan, and who are subject to United States federal income taxation laws,
will incur a tax liability on an amount equal to the fair value on the relevant distribution date of the shares of our common
stock purchased with reinvested distributions, even though such stockholders have elected not to receive the distributions used
to purchase those shares of common stock in cash. The tax consequences of participating in our distribution reinvestment plan
will vary depending upon each participant’s particular circumstances, and stockholders are urged to consult their own tax
advisor regarding the specific tax consequences of participation in the distribution reinvestment plan.

 

All
material information regarding the distributions to stockholders and the effect of reinvesting the distributions, including tax
consequences, will be provided to our stockholders at least annually. Each stockholder participating in the distribution reinvestment
plan will have an opportunity to withdraw from the plan at least annually after receiving this information.

 

Our
board of directors may amend, suspend or terminate the distribution reinvestment plan at its discretion at any time upon ten days’
notice to our stockholders. On March 24, 2020, in response to the COVID-19 pandemic, our board of directors approved the termination
of our distribution reinvestment plan, effective as of April 6, 2020.

 

Share
Repurchase Program

 

Our
share repurchase program may provide an opportunity for our stockholders to have shares of our common stock repurchased, subject
to certain restrictions and limitations, at a price equal to or at a discount from the current offering price per share for the
particular class of shares being repurchased. No shares can be repurchased under our share repurchase program until after the
first anniversary of the date of purchase of such shares; provided, however, that this holding period will not apply to
repurchases requested within two years after the death or qualifying disability of a stockholder. Other than with respect to shares
being repurchased in connection with a stockholder’s death or qualifying disability (as described below), we will repurchase
shares under our share repurchase program for the lesser of the price paid for the shares by the stockholders whose shares are
being repurchased or 95% of the then-current estimated NAV per share for the applicable share class, as determined by our board
of directors.

 

Repurchase
requests made within two years of death or “qualifying disability” of a stockholder will be repurchased at a price
equal to the purchase price paid by such deceased or disabled stockholder for such shares or, in the case of repurchases following
the conclusion of our public offering, at a price based upon our current estimated NAV per share and other factors that our board
of directors deems relevant. Our board of directors, in its sole discretion, shall make the determination of whether a stockholder
has a qualifying disability after receiving written notice from the stockholder. Generally, our board of directors will consider
a stockholder to have a qualifying disability if the stockholder is (1) unable to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected
to last for a continuous period of not less than 12 months, or (2) is, by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months,
receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees
of the stockholder’s employees. We must receive written notice within 180 days after such stockholder’s qualifying
disability.

 

     

     

    

 

We
are not obligated to repurchase shares of our common stock under the share repurchase program. Notwithstanding the procedures
discussed below, our board of directors may, in its sole discretion, accept or reject any share repurchase request made by any
stockholder at any time.

 

To
the extent we determine to accept share repurchase requests from our stockholders, repurchase of shares of our common stock will
be made quarterly upon written request to us at least 15 days prior to the end of the applicable quarter. Repurchase requests
will be honored approximately 30 days following the end of the applicable quarter. We refer to the last day of the applicable
quarter as the “repurchase date.” Stockholders may withdraw their repurchase request at any time up to three business
days prior to the repurchase date.

 

We
cannot guarantee that the funds set aside for the share repurchase program will be sufficient to accommodate all requests made
in any quarter. In the event that we do not have sufficient funds available to repurchase all of the shares of our common stock
for which repurchase requests have been submitted in any quarter, we plan to repurchase the shares of our common stock on a pro
rata basis on the repurchase date. In addition, if we repurchase less than all of the shares subject to a repurchase request in
any quarter, with respect to any unrepurchased shares, a stockholder can (1) withdraw its request for repurchase or (2) ask that
we honor the request in a future quarter, if any, when such repurchases can be made pursuant to the limitations of the share repurchase
when sufficient funds are available. Such pending requests will be honored on a pro rata basis.

 

To
the extent our board of directors determines to accept share repurchase requests from our stockholders, we presently intend to
limit the number of shares to be repurchased during any calendar year to the lesser of (1) 5.0% of the weighted average number
of shares of our common stock outstanding during the prior calendar year and (2) the number of shares of our common stock that
could be repurchased with the net proceeds from the sale of shares under the distribution reinvestment plan in the prior calendar
year plus such additional funds as may be reserved for share repurchase by our board of directors. Shares subject to a repurchase
request upon the death of a stockholder will be included in calculating the maximum number of shares that may be repurchased;
however, the volume limitation will not apply to repurchases upon the death of a stockholder. There is no fee in connection with
a repurchase of shares of our common stock.

 

The
aggregate amount of repurchases under our share repurchase program is not expected to exceed the aggregate proceeds received from
the sale of shares pursuant to our distribution reinvestment plan. However, to the extent that the aggregate proceeds received
from the sale of shares pursuant to our distribution reinvestment plan are not sufficient to fund repurchase requests pursuant
to the limitations outlined above, our board of directors may, in its sole discretion, choose to use other sources of funds to
repurchase shares of our common stock. Such sources of funds could include cash on hand, cash available from borrowings and cash
from liquidations of securities investments as of the end of the applicable month, to the extent that such funds are not otherwise
dedicated to a particular use, such as working capital, cash distributions to stockholders or purchases of real estate assets.
If funds available for our share repurchase program are not sufficient to accommodate all requests, shares will be repurchased
as follows: first, pro rata as to repurchases upon the death or disability of a stockholder; next pro rata as to repurchases to
stockholders subject to a mandatory distribution requirement under such stockholder’s IRA; and, finally, pro rata as to
all other repurchase requests.

 

In
addition, the board of directors may, in its sole discretion, amend, suspend, or terminate the share repurchase program at any
time if it determines that the funds available to fund the share repurchase program are needed for other business or operational
purposes or that amendment, suspension or termination of the share repurchase program is in the best interest of our stockholders.
If the board of directors decides to amend, suspend or terminate the share repurchase program, we will provide stockholders with
no less than 10 days’ prior written notice, which notice may be provided (a) in a current report on Form 8-K or in our annual
or quarterly reports, as publicly filed or furnished with the SEC, or (b) in a separate mailing to our stockholders. Therefore,
a stockholder may not have the opportunity to make a repurchase request prior to any potential termination of our share repurchase
program.

 

On
March 24, 2020, in response to the COVID-19 pandemic, our board of directors approved the suspension of our share repurchase program,
effective as of April 6, 2020.

 

Business
Combinations

 

Under
the MGCL, business combinations between a Maryland corporation and an interested stockholder or the interested stockholder’s
affiliate are prohibited for five years after the most recent date on which the stockholder becomes an interested stockholder.
For this purpose, the term “business combinations” includes mergers, consolidations, share exchanges or, in circumstances
specified in the MGCL, asset transfers and issuances or reclassifications of equity securities. An “interested stockholder”
is defined for this purpose as: (1) any person who beneficially owns, directly or indirectly, 10% or more of the voting power
of the corporation’s outstanding voting stock; or (2) an affiliate or associate of the corporation who, at any time within
the two-year period prior to the date in question, was the beneficial owner, directly or indirectly, of 10% or more of the voting
power of the then outstanding stock of the corporation. A person is not an interested stockholder under the MGCL if the board
of directors approved in advance the transaction by which the person otherwise would become an interested stockholder. However,
in approving the transaction, the board of directors may provide that its approval is subject to compliance, at or after the time
of the approval, with any terms and conditions determined by the board of directors.

 

     

     

    

 

After
the five-year prohibition, any such business combination between the corporation and an interested stockholder generally must
be recommended by the board of directors of the corporation and approved by the affirmative vote of at least: (1) 80% of the votes
entitled to be cast by holders of outstanding shares of voting stock of the corporation and (2) two-thirds of the votes entitled
to be cast by holders of voting stock of the corporation other than shares of stock held by the interested stockholder or its
affiliate with whom the business combination is to be effected, or held by an affiliate or associate of the interested stockholder,
voting together as a single voting group.

 

These
super majority vote requirements do not apply if the corporation’s common stockholders receive a minimum price, as defined
under the MGCL, for their shares of common stock in the form of cash or other consideration in the same form as previously paid
by the interested stockholder for its shares of common stock.

 

None
of these provisions of the MGCL will apply, however, to business combinations that are approved or exempted by the board of directors
of the corporation prior to the time that the interested stockholder becomes an interested stockholder. Pursuant to the business
combination statute, our board of directors has exempted any business combination involving us and any person. Consequently, the
five-year prohibition and the super majority vote requirements will not apply to business combinations between us and any person.
As a result, any person may be able to enter into business combinations with us that may not be in the best interest of our stockholders,
without compliance with the super majority vote requirements and other provisions of the statute.

 

Should
our board of directors opt into the business combination statute in the future, it may discourage others from trying to acquire
control of us and increase the difficulty of consummating any offer.

 

Business
Combination with Our Advisor

 

Many
REITs that are listed on a national securities exchange or included for quotation on an over-the-counter market are self-administered,
which means that they employ persons or agents to perform all significant management functions. The costs to perform these management
functions are internal, rather than external, and no third-party fees, such as advisory fees, are paid by the REIT. We will consider
becoming a self-administered REIT once our assets and income are, in our board of directors’ view, of sufficient size such
that internalizing some or all of the management functions performed by our advisor is in our best interests and in the best interests
of our stockholders.

 

If
our board of directors should make this determination in the future and seeks to pursue internalizing our management functions
through a business combination with our advisor, or by hiring our advisor’s personnel, our board of directors will form
a special committee comprised entirely of our independent directors to consider and evaluate any such transaction. Unless and
until definitive documentation is executed, we will not be obligated to complete a business combination with our advisor. Pursuant
to the advisory agreement, we are not allowed to solicit or hire any of our advisor’s personnel without our advisor’s
prior written consent for a one-year period following the termination of the advisory agreement.

 

We
do not intend to pay any compensation or other remuneration to our advisor or its affiliates in connection with any internalization
transaction. Subject to the approval of our board of directors, to the extent our advisor or our sponsor performs substantial
services or incurs costs in connection with the internalization, we intend to pay our advisor or our sponsor for such services
and reimburse our sponsor and its affiliates for any and all costs and expenses reasonably associated with the internalization.

 

     

     

    

 

Control
Share Acquisitions

 

The
MGCL provides that control shares of a Maryland corporation acquired in a control share acquisition have no voting rights except
to the extent approved by a vote of at least two-thirds of the votes entitled to be cast on the matter. Shares of common stock
owned by the acquiror, by officers or by employees who are directors of the corporation are not entitled to vote on the matter.
“Control shares” are voting shares of stock that, if aggregated with all other shares of stock owned by the acquiror
or with respect to which the acquiror has the right to vote or to direct the voting of, other than solely by virtue of a revocable
proxy, would entitle the acquiror to exercise voting power in electing directors within one of the following ranges of voting
powers:

 

	 	●	one-tenth or more
    but less than one-third;

 

	 	●	one-third or more
    but less than a majority; or

 

	 	●	a majority or more
    of all voting power.

 

Control
shares do not include shares of stock the acquiring person is then entitled to vote as a result of having previously obtained
stockholder approval or shares acquired directly from the corporation. Except as otherwise specified in the statute, a “control
share acquisition” means the acquisition of issued and outstanding control shares. Once a person who has made or proposes
to make a control share acquisition has undertaken to pay expenses and has satisfied other required conditions, the person may
compel the board of directors to call a special meeting of stockholders to be held within 50 days of demand to consider the voting
rights of the shares of stock. If no request for a meeting is made, the corporation may itself present the question at any stockholders
meeting. If voting rights are not approved for the control shares at the meeting or if the acquiring person does not deliver an
“acquiring person statement” for the control shares as required by the statute, the corporation may repurchase any
or all of the control shares for their fair value, except for control shares for which voting rights have previously been approved.
Fair value is to be determined for this purpose without regard to the absence of voting rights for the control shares, and is
to be determined as of the date of the last control share acquisition or of any meeting of stockholders at which the voting rights
for control shares are considered and not approved.

 

If
voting rights for control shares are approved at a stockholders’ meeting and the acquiror becomes entitled to vote a majority
of the shares of stock entitled to vote, all other stockholders may exercise appraisal rights. The fair value of the shares of
stock as determined for purposes of these appraisal rights may not be less than the highest price per share paid in the control
share acquisition. Some of the limitations and restrictions otherwise applicable to the exercise of dissenters’ rights do
not apply in the context of a control share acquisition.

 

The
control share acquisition statute does not apply to shares of stock acquired in a merger or consolidation or on a stock exchange
if the corporation is a party to the transaction or to acquisitions approved or exempted by the charter or bylaws of the corporation.
As permitted by the MGCL, we have provided in our bylaws that the control share provisions of the MGCL will not apply to any acquisition
by any person of shares of our stock, but our board of directors retains the discretion to opt into these provisions in the future.

 

Advance
Notice of Director Nominations and New Business

 

Our
bylaws provide that with respect to an annual meeting of stockholders, nominations of individuals for election to our board of
directors and the proposal of business to be considered by a stockholder may be made only (1) pursuant to our notice of the meeting,
(2) by or at the direction of our board of directors or (3) by a stockholder who is a stockholder of record both at the time of
giving the advance notice required by our bylaws and at the time of the meeting, who is entitled to vote at the meeting in the
election of each individual so nominated or on any such other business and who has complied with the advance notice procedures
of our bylaws. With respect to special meetings of stockholders, only the business specified in our notice of the meeting may
be brought before the meeting. Nominations of individuals for election to our board of directors at a special meeting may be made
only (1) by or at the direction of our board of directors or (2) provided that the special meeting has been called in accordance
with our bylaws for the purpose of electing directors, by a stockholder who is a stockholder of record both at the time of giving
the advance notice required by our bylaws and at the time of the meeting, who is entitled to vote at the meeting in the election
of each individual so nominated and who has complied with the advance notice provisions of our bylaws.

 

Subtitle
8

 

Subtitle
8 of Title 3 of the MGCL, or Subtitle 8, permits the board of directors of a Maryland corporation with a class of equity securities
registered under the Exchange Act and at least three independent directors to elect to be subject, by provision in its charter
or bylaws or a resolution of its board of directors and notwithstanding any contrary provision in its charter or bylaws, to any
or all of five provisions:

 

	 	●	a classified board
    of directors;

 

	 	●	a two-thirds vote
    requirement for removing a director;

 

	 	●	a requirement that
    the number of directors be fixed only by vote of the directors;

 

     

     

    

 

	 	●	a requirement that
    vacancies on the board of directors be filled only by the remaining directors and (if the board is classified) for the remainder
    of the full term of the class of directors in which the vacancy occurred; and

 

	 	●	a majority requirement
    for the calling of a stockholder-requested special meeting of stockholders.

 

We
have elected to provide that, at such time as we are eligible to make a Subtitle 8 election, vacancies on our board of directors
may be filled only by the remaining directors and for the remainder of the full term of the directorship in which the vacancy
occurred. Through provisions in our charter and bylaws unrelated to Subtitle 8, we vest in our board of directors the exclusive
power to fix the number of directorships; provided that the number is not fewer than three. We have not elected to be subject
to the other provisions of Subtitle 8.

 

Restrictions
on Roll-Up Transactions

 

In
connection with any proposed “roll-up transaction” (as defined below) involving us and the issuance of securities
of an entity as defined below that would be created or would survive after the successful completion of the roll-up transaction,
an appraisal of all of our assets will be obtained from a competent independent appraiser. In order to qualify as an independent
appraiser for this purpose, the person or entity must have no material current or prior business or personal relationship with
our advisor or directors and must be engaged to a substantial extent in the business of rendering opinions regarding the value
of assets of the type held by us. If the appraisal will be included in a prospectus used to offer the securities of a roll-up
entity, the appraisal shall be filed with the SEC and, if applicable, the states in which registration of such securities is sought
as an exhibit to the registration statement for the offering. Our assets will be appraised on a consistent basis, and the appraisal
will be based on the evaluation of all relevant information and will indicate the value of the assets as of a date immediately
prior to the announcement of the proposed roll-up transaction. The appraisal will assume an orderly liquidation of our assets
over a 12-month period. The terms of the engagement of the independent appraiser will clearly state that the engagement is for
our benefit and the benefit of our stockholders. We will include a summary of the appraisal, indicating all material assumptions
underlying the appraisal, in a report to the stockholders in connection with any proposed roll-up transaction.

 

A
“roll-up transaction” is a transaction involving the acquisition, merger, conversion or consolidation, directly or
indirectly, of us and the issuance of securities of another entity, which we refer to as a “roll-up entity,” that
would be created or would survive after the successful completion of such transaction. The term roll-up transaction does not include:

 

	 	●	a transaction involving
    our securities that have been for at least 12 months listed on a national securities exchange; or

 

	 	●	a transaction involving
    our conversion to a corporate, trust, or association form if, as a consequence of the transaction, there will be no significant
    adverse change in any of the following: common stockholder voting rights; the term of our existence; compensation to our advisor;
    or our investment objectives.

 

In
connection with a proposed roll-up transaction, the person sponsoring the roll-up transaction must offer to stockholders who vote
against the proposal the choice of:

 

	 	(1)	accepting the securities
    of a roll-up entity offered in the proposed roll-up transaction; or

 

	 	(2)	one of the following:

 

	 	(a)	remaining as stockholders
    and preserving their interests in us on the same terms and conditions as existed previously; or

 

	 	(b)	receiving cash in
    an amount equal to the stockholder’s pro rata share of the appraised value of our net assets.

 

We
are prohibited from participating in any proposed roll-up transaction

 

	 	●	that would result
    in common stockholders having voting rights in a roll-up entity that are less than those provided in our charter, including
    rights with respect to the election and removal of directors, annual and special meetings, amendment of our charter and our
    dissolution;

 

	 	●	that includes provisions
    that would operate as a material impediment to, or frustration of, the accumulation of shares by any purchaser of the securities
    of the roll-up entity, except to the minimum extent necessary to preserve the tax status of such roll-up entity, or which
    would limit the ability of an investor to exercise the voting rights of its securities of the roll-up entity on the basis
    of the number of our shares held by that investor;

 

     

     

    

 

	 	●	in which our common
    stockholders’ rights to access the records of the roll-up entity will be less than those provided for in our charter
    and described above in “—Meetings, Special Voting Requirements and Access to Records;” or

 

	 	●	in which we would
    bear any of the costs of the roll-up transaction if our common stockholders reject the roll-up transaction.

 

Reports
to Stockholders

 

Our
charter requires that we prepare an annual report and deliver it to our stockholders within 120 days after the end of each fiscal
year. Among the matters that must be included in the annual report are:

 

	 	●	financial statements
    that are prepared in accordance with GAAP and are audited by our independent registered public accounting firm;

 

	 	●	the ratio of the
    costs of raising capital during the year to the capital raised;

 

	 	●	the aggregate amount
    of advisory fees and the aggregate amount of other fees paid to our advisor and any affiliate of our advisor by us or third
    parties doing business with us during the year;

 

	 	●	our total operating
    expenses for the year, stated as a percentage of our average invested assets and as a percentage of our net income;

 

	 	●	a report from the
    independent directors that our policies are in the best interests of our stockholders and the basis for such determination;
    and

 

	 	●	separately stated,
    full disclosure of all material terms, factors and circumstances surrounding any and all transactions involving us and our
    advisor, a director or any affiliate thereof during the year; and the independent directors are specifically charged with
    a duty to examine and comment in the report on the fairness of the transactions.

 

Under
the Securities Act, we must update this prospectus upon the occurrence of certain events, such as property acquisitions. We will
file updated prospectuses and prospectus supplements with the SEC. We are also subject to the informational reporting requirements
of the Exchange Act, and accordingly, we will file annual reports, quarterly reports, proxy statements, when applicable, and other
information with the SEC. In addition, we will provide stockholders directly with periodic updates, including prospectuses, prospectus
supplements, and annual and quarterly reports.

 

Stockholders
may authorize us to provide such periodic updates, electronically by so indicating on their subscription agreement, or by sending
us instructions in writing in a form acceptable to us to receive such periodic updates electronically. Unless a stockholder elects
in writing to receive such periodic updates electronically, all documents will be provided in paper form by mail. Stockholders
must have internet access to use electronic delivery. While we impose no additional charge for this service, there may be potential
costs associated with electronic delivery, such as online charges. The periodic updates will be available on our website. Stockholders
may access and print all periodic updates provided through this service. As periodic updates become available, we will notify
stockholders by sending them an e-mail message that will include instructions on how to retrieve the periodic updates. If our
e-mail notification is returned to us as “undeliverable,” we will contact stockholders to obtain their updated e-mail
address. If we are unable to obtain a valid e-mail address for a stockholder, we will resume sending a paper copy by regular U.S.
mail to its address of record. A stockholder may revoke their consent for electronic delivery at any time and we will resume sending
such stockholder a paper copy of all periodic updates. However, in order for us to be properly notified, a revocation must be
given to us a reasonable time before electronic delivery has commenced. We will provide stockholders with paper copies at any
time upon request. Such request will not constitute revocation of a prior consent to receive periodic updates electronically.Exhibit 4.2
​

ENFUSION, INC.
REGISTRATION RIGHTS AGREEMENT
OCTOBER 20, 2021
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REGISTRATION RIGHTS AGREEMENT
THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made as of the 20th day of October, 2021, by and among Enfusion, Inc., a Delaware corporation (the “Company”), and each of the investors listed on Schedule A hereto, each of which is referred to in this Agreement as an “Investor”.
RECITALS
WHEREAS, the Investors and the Company hereby agree that this Agreement shall govern the registration rights of the Common Stock issued or issuable to the Investors.
NOW, THEREFORE, the parties hereby agree as follows:
1.Definitions.  For purposes of this Agreement:
1.1“Affiliate” means, with respect to any specified Person, any other Person who or which, directly or indirectly, controls, is controlled by, or is under common control with such specified Person, including without limitation any general partner, managing member, officer, director, or manager of such Person or any venture capital fund or other investment fund now or hereafter existing that is controlled by one or more general partners, managing members or investment adviser of, or shares the same management company or investment adviser with, such Person.
1.2“Board of Directors” means the Board of Directors of the Company.
1.3“Certificate of Incorporation” means the Company’s certificate of incorporation (as amended and in effect).
1.4“Common Stock” means shares of the Company’s Class A common stock, par value $0.001 per share.
1.5“Damages” means any loss, damage, claim, or liability (joint or several) to which a party hereto may become subject under the Securities Act, the Exchange Act, or other federal or state law, insofar as such loss, damage, claim, or liability (or any action in respect thereof) arises out of or is based upon: (i) any untrue statement or alleged untrue statement of a material fact contained in any registration statement of the Company, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto; (ii) an omission or alleged omission to state therein a material fact required to be stated therein, or necessary to make the statements therein not misleading; or (iii) any violation or alleged violation by the indemnifying party (or any of its agents or Affiliates) of the Securities Act, the Exchange Act, any state securities law, or any rule or regulation promulgated under the Securities Act, the Exchange Act, or any state securities law.
1.6“ELL” means HH ELL Holdings LLC., a Delaware corporation.
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​
1.7“ELL Investors” ELL and each Affiliate thereof, who at any time acquires any Registrable Securities directly or indirectly from an ELL Investor in a transaction or chain of transactions not involving a public offering within the meaning of the Securities Act.
1.8“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.
1.9“Excluded Registration” means: (i) a registration relating to the sale of securities to employees of the Company or a subsidiary pursuant to a stock option, stock purchase, or similar plan; (ii) a registration relating to an SEC Rule 145 transaction; (iii) a registration on any form that does not include substantially the same information as would be required to be included in a registration statement covering the sale of the Registrable Securities; or (iv) a registration in which the only Common Stock being registered is Common Stock issuable upon conversion of debt securities that are also being registered.
1.10“Form S-1” means such registration form under the Securities Act as in effect on the date hereof or any successor registration form under the Securities Act subsequently adopted by the SEC.
1.11“Form S-3” means such registration form under the Securities Act as in effect on the date hereof or any registration form under the Securities Act subsequently adopted by the SEC that permits incorporation of substantial information by reference to other documents filed by the Company with the SEC.
1.12“Founder” means each of (i) Tarek Hammoud, (ii) Stephen M. Malherbe, (iii) Oleg Movchan and (iv) Scott Werner, and such successor in interest of each such individual that succeeds to all of such individual’s Registrable Securities.
1.13“FTV” means FTV Enfusion Holdings, Inc., a Delaware corporation.
1.14“FTV Investors” means FTV and each Affiliate thereof, who at any time acquires any Registrable Securities directly or indirectly from an FTV Investor in a transaction or chain of transactions not involving a public offering within the meaning of the Securities Act.
1.15“Holder” means any holder of Registrable Securities who is a party to this Agreement.
1.16“ICONIQ” means ISP V Main Fund EF LLC, ICONIQ Strategic Partners V, LP, EF ISP V-B Blocker, Inc. and ICONIQ Strategic Partners V-B, LP, as applicable.
1.17“ICONIQ Investors” means ICONIQ and each Affiliate thereof, who at any time acquires any Registrable Securities directly or indirectly from an ICONIQ Investor in a transaction or chain of transactions not involving a public offering within the meaning of the Securities Act.
1.18“Immediate Family Member” means a child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, of a natural person referred to herein.
​

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​
1.19“Initiating Holders” means, collectively, Holders who properly initiate a registration request under this Agreement.
1.20“IPO” means the Company’s first underwritten public offering of its Common Stock under the Securities Act.
1.21“Person” means any individual, corporation, partnership, trust, limited liability company, association or other entity.
1.22“Preferred Stock” means shares of the Company’s preferred stock, par value $0.001 per share.
1.23“Registrable Securities” means (i) the Common Stock issuable or issued upon conversion of the Preferred Stock or otherwise issued to a Person; (ii) any Common Stock, or any Common Stock issued or issuable (directly or indirectly) upon conversion and/or exercise of any other securities of the Company held by the Investors; and (iii) any Common Stock issued as (or issuable upon the conversion or exercise of any warrant, right, or other security that is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, the shares referenced in clauses (i) and (ii) above; excluding in all cases, however, any Registrable Securities sold by a Person in a transaction in which the applicable rights under this Agreement are not assigned pursuant to Section 3.1, and excluding for purposes of Section 2 any shares for which registration rights have terminated pursuant to Section 2.13 of this Agreement.
1.24“Registrable Securities then outstanding” means the number of shares determined by adding the number of shares of outstanding Common Stock that are Registrable Securities and the number of shares of Common Stock issuable (directly or indirectly) pursuant to then exercisable and/or convertible securities that are Registrable Securities.
1.25“Restricted Securities” means the securities of the Company required to bear the legend set forth in Section 2.12(b) hereof.
1.26“Sale Event” means:
(a)a merger or consolidation in which
(i)the Company is a constituent party or
		(ii)
	a subsidiary of the Company is a constituent party and the Company issues shares of its capital stock pursuant to such merger or consolidation,

except any such merger or consolidation involving the Company or a subsidiary in which the shares of capital stock of the Company outstanding immediately prior to such merger or consolidation continue to represent, or are converted into or exchanged for shares of capital stock that represent, immediately following such merger or consolidation, at least a majority, by voting power, of the capital stock of (1) the surviving or resulting corporation or (2) if the surviving or resulting corporation is a wholly owned subsidiary of another corporation immediately following such merger or consolidation, the parent corporation of such surviving or resulting corporation
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(provided that, all shares of Common Stock issuable upon exercise of options outstanding immediately prior to such merger or consolidation or upon conversion of convertible securities outstanding immediately prior to such merger or consolidation shall be deemed to be outstanding immediately prior to such merger or consolidation and, if applicable, converted or exchanged in such merger or consolidation on the same terms as the actual outstanding shares of Common Stock are converted or exchanged); or
(b)the sale, lease, transfer, exclusive license or other disposition, in a single transaction or series of related transactions, by the Company or any subsidiary of the Company of all or substantially all the assets of the Company and its subsidiaries taken as a whole, or the sale or disposition (whether by merger or otherwise) of one or more subsidiaries of the Company if substantially all of the assets of the Company and its subsidiaries taken as a whole are held by such subsidiary or subsidiaries, except where such sale, lease, transfer, exclusive license or other disposition is to a wholly owned subsidiary of the Company.
1.27“SEC” means the Securities and Exchange Commission.
1.28“SEC Rule 144” means Rule 144 promulgated by the SEC under the Securities Act.
1.29“SEC Rule 145” means Rule 145 promulgated by the SEC under the Securities Act.
1.30“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.
1.31“Selling Expenses” means all underwriting discounts, selling commissions, and stock transfer taxes applicable to the sale of Registrable Securities, and fees and disbursements of counsel for any Holder, except for the fees and disbursements of Selling Holder Counsel borne and paid by the Company as provided in Section 2.6.
2.Registration Rights.  The Company covenants and agrees as follows:
2.1Demand Registration.
(a)Form S-1 Demand.  If at any time after one hundred eighty (180) days after the effective date of the registration statement for the IPO, the Company receives a request from the FTV Investors, the ICONIQ Investors, the ELL Investors and any of their successors in interest thereof, or the Founders, that the Company file a Form S-1 registration statement with respect to at least ten percent (10%) (or in the case of the FTV Investors, the ICONIQ Investors or the ELL Investors, as applicable, if less, all of the Registrable Securities held by the FTV Investors, the ICONIQ Investors or the ELL Investors, respectively) of the aggregate number of Registrable Securities then outstanding, then the Company shall: (i) within ten (10) days after the date such request is given, give notice thereof (the “Demand Notice”) to all Holders other than the Initiating Holders; and (ii) as soon as practicable, and in any event within sixty (60) days after the date such request is given by the Initiating Holders, file a Form S-1 registration statement under the Securities Act covering all Registrable Securities that the Initiating Holders requested to be registered and any additional Registrable Securities requested to be included in such registration by any other Holders, as specified by notice given by each such Holder to the Company within twenty (20) days after the
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date the Demand Notice is given, and in each case, subject to the limitations of Section 2.1(c) and Section 2.3. The Company shall not be required to effect a registration pursuant to this Section 2.1(a) more than one (1) time for the FTV Investors, or more than one (1) time for the ICONIQ Investors, or more than one (1) time for the ELL Investors or more than two (2) times for the Holders of Registrable Securities as a group, excluding the FTV Investors, the ICONIQ Investors and the ELL Investors.
(b)Form S-3 Demand.  If at any time when it is eligible to use a Form S-3 registration statement, the Company receives a request from the FTV Investors, the ICONIQ Investors, the ELL Investors and any of their respective successors in interest, or the Founders, that the Company file a Form S-3 registration statement with respect to outstanding Registrable Securities of such Holders having an anticipated aggregate offering price, net of Selling Expenses, of at least $500,000, then the Company shall: (i) within ten (10) days after the date such request is given, give a Demand Notice to all Holders other than the Initiating Holders; and (ii) as soon as practicable, and in any event within forty-five (45) days after the date such request is given by the Initiating Holders, file a Form S-3 registration statement under the Securities Act covering all Registrable Securities requested to be included in such registration by any other Holders, as specified by notice given by each such Holder to the Company within twenty (20) days after the date the Demand Notice is given, and in each case, subject to the limitations of Section 2.1(c) and Section 2.3. The Company shall not be required to effect a registration pursuant to this Section 2.1(b) more than two (2) times per year for the FTV Investors, or more than two (2) times per year for the ICONIQ Investors, or more than two (2) times per year for the ELL Investors or more than two (2) times per year for the Holders of Registrable Securities as a group, excluding the FTV Investors, the ICONIQ Investors and the ELL Investors.
(c)Notwithstanding the foregoing obligations, if the Company furnishes to Holders requesting a registration pursuant to this Section 2.1 a certificate signed by the Company’s chief executive officer or other most senior executive officer stating that in the good faith judgment of the Board of Directors it would be materially detrimental to the Company and its stockholders for such registration statement to either become effective or remain effective for as long as such registration statement otherwise would be required to remain effective, because such action would (i) materially interfere with a significant acquisition, corporate reorganization, or other similar transaction involving the Company; (ii) require premature disclosure of material information that the Company has a bona fide business purpose for preserving as confidential; or (iii) render the Company unable to comply with requirements under the Securities Act or Exchange Act, then the Company shall have the right to defer taking action with respect to such filing, and any time periods with respect to filing or effectiveness thereof shall be tolled correspondingly, for a period of not more than ninety (90) days after the request of the Initiating Holders is given; provided, however, that the Company may not invoke this right more than once in any twelve (12) month period; and provided further that the Company shall not register any securities for its own account or that of any other stockholder during such ninety (90) day period other than an Excluded Registration.
(d)The Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to Section 2.1(a): (i) during the period that is sixty (60) days before the Company’s good faith estimate of the date of filing of, and ending on a date that is one hundred eighty (180) days after the effective date of, a Company-initiated registration; provided, that the Company is actively employing in good faith commercially reasonable efforts to cause such registration statement to become effective or (ii) if the Initiating Holders propose to dispose of shares of Registrable Securities that may be immediately registered on Form S-3 pursuant to a request made pursuant to Section 2.1(b).  The Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to Section 2.1(b): (i) during the period that is sixty (60) days before the Company’s good faith estimate of the date of filing of, and
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ending on a date that is one hundred eighty (180) days after the effective date of, a Company-initiated registration; provided, that the Company is actively employing in good faith commercially reasonable efforts to cause such registration statement to become effective; or (ii) if the Company has effected a registration pursuant to Section 2.1(b) within the six (6) month period immediately preceding the date of such request.  A registration shall not be counted as “effected” for purposes of this Section 2.1(d) until such time as the applicable registration statement has been declared effective by the SEC, unless the Initiating Holders withdraw their request for such registration, elect not to pay the registration expenses therefor, and forfeit their right to one (1) demand registration statement pursuant to Section 2.6, in which case such withdrawn registration statement shall be counted as “effected” for purposes of this Section 2.1(d) ; provided, that if such withdrawal is during a period the Company has deferred taking action pursuant to Section 2.1(c), then the Initiating Holders may withdraw their request for registration and such registration shall not be counted as “effected” for purposes of this Section 2.1(d).
2.2Company Registration.  If the Company proposes to register (including, for this purpose, a registration effected by the Company for stockholders other than the Holders and any successors in interest thereof) any of its Common Stock under the Securities Act in connection with the public offering of such securities solely for cash (other than in an Excluded Registration and other than in connection with the IPO), the Company shall, at such time, promptly (in any event no later than five (5) business days prior to the filing of such Registration Statement) give each Holder and any successors in interest thereof notice in writing of such registration.  Upon the request of each Holder and any successors in interest thereof given within five (5) business days after such notice in writing is given by the Company, the Company shall, subject to the provisions of Section 2.3, cause to be registered all of the Registrable Securities that each such Holder and any successors in interest thereof has requested to be included in such registration. The Company shall have the right to terminate or withdraw any registration initiated by it under this Section 2.2 before the effective date of such registration, whether or not any Holder has elected to include Registrable Securities in such registration.  The expenses (other than Selling Expenses) of such withdrawn registration shall be borne by the Company in accordance with Section 2.6.
2.3Underwriting Requirements.
(a)If, pursuant to Section 2.1, the Initiating Holders intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as a part of their request made pursuant to Section 2.1, and the Company shall include such information in the Demand Notice.  The underwriter(s) will be selected by the Company and shall be reasonably acceptable to a majority in interest of the Initiating Holders.  In such event, the right of any Holder to include such Holder’s Registrable Securities in such registration shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided herein.  All Holders proposing to distribute their securities through such underwriting shall (together with the Company as provided in Section 2.4(e)) enter into an underwriting agreement in customary form with the underwriter(s) selected for such underwriting.  Notwithstanding any other provision of this Section 2.3, if the managing underwriter(s) advise(s) the Initiating Holders in writing that marketing factors require a limitation on the number of shares to be underwritten, then the Initiating Holders shall so advise all Holders of Registrable Securities that otherwise would be underwritten pursuant hereto, and the number of Registrable Securities that may be included in the underwriting shall be allocated among such Holders of Registrable Securities, including the Initiating Holders, in proportion (as nearly as practicable) to the number of Registrable Securities owned by each Holder or in such other proportion as shall mutually be agreed to by all such selling Holders; provided, however, that the number of Registrable Securities
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held by the Holders to be included in such underwriting shall not be reduced unless all other securities (other than those to be sold by the Company) are first entirely excluded from the underwriting.  To facilitate the allocation of shares in accordance with the above provisions, the Company or the underwriters may round the number of shares allocated to any Holder to the nearest 100 shares.
(b)In connection with any offering involving an underwriting of shares of the Company’s capital stock pursuant to Section 2.2, the Company shall not be required to include any of the Holders’ Registrable Securities in such underwriting unless the Holders accept the terms of the underwriting as agreed upon between the Company and its underwriters, and then only in such quantity as the underwriters in their sole discretion determine will not jeopardize the success of the offering by the Company.  If the total number of securities, including Registrable Securities, requested by stockholders to be included in such offering exceeds the number of securities to be sold (other than by the Company) that the underwriters in their reasonable discretion determine is compatible with the success of the offering, then the Company shall be required to include in the offering only that number of such securities, including Registrable Securities, which the underwriters and the Company in their sole discretion determine will not jeopardize the success of the offering.  If the underwriters determine that less than all of the Registrable Securities requested to be registered can be included in such offering, then the Registrable Securities that are included in such offering shall be allocated among the selling Holders in proportion (as nearly as practicable to) the number of Registrable Securities owned by each selling Holder or in such other proportions as shall mutually be agreed to by all such selling Holders.  To facilitate the allocation of shares in accordance with the above provisions, the Company or the underwriters may round the number of shares allocated to any Holder to the nearest one hundred (100) shares.  Notwithstanding the foregoing, in no event shall (i) the number of Registrable Securities included in the offering be reduced unless all other securities (other than securities to be sold by the Company) are first entirely excluded from the offering or (ii) the number of Registrable Securities included in the offering be reduced below twenty percent (20%) of the total number of securities included in such offering, unless such offering is the IPO, in which case the selling Holders may be excluded further if the underwriters make the determination described above and no other stockholder’s securities are included in such offering.  For purposes of the provisions in this Section 2.3(b) and Section 2.3(a) concerning apportionment, for any selling Holder that is a partnership, limited liability company, or corporation, the partners, members, retired partners, retired members, stockholders, and Affiliates of such Holder, or the estates and Immediate Family Members of any such partners, retired partners, members, and retired members and any trusts for the benefit of any of the foregoing Persons, shall be deemed to be a single “selling Holder,” and any pro rata reduction with respect to such “selling Holder” shall be based upon the aggregate number of Registrable Securities owned by all Persons included in such “selling Holder,” as defined in this sentence.
(c)For purposes of Section 2.1, a registration shall not be counted as “effected” if, as a result of an exercise of the underwriter’s cutback provisions in Section 2.3(a), fewer than fifty percent (50%) of the total number of Registrable Securities that Holders have requested to be included in such registration statement are actually included.
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2.4Obligations of the Company. Whenever required under this Section 2 to effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible:
(a)prepare and file with the SEC a registration statement with respect to such Registrable Securities and use its commercially reasonable efforts to cause such registration statement to become effective and, upon the request of the Holders of a majority of the Registrable Securities registered thereunder, keep such registration statement effective for a period of up to one hundred twenty (120) days or, if earlier, until the distribution contemplated in the registration statement has been completed; provided, however, that (i) such one hundred twenty (120) day period shall be extended for a period of time equal to the period the Holder refrains, at the request of an underwriter of Common Stock (or other securities) of the Company, from selling any securities included in such registration, and (ii) in the case of any registration of Registrable Securities on Form S-3 that are intended to be offered on a continuous or delayed basis, subject to compliance with applicable SEC rules, such one hundred twenty (120) day period shall be extended for up to sixty (60) days, if  necessary, to keep the registration statement effective until all such Registrable Securities are sold;
(b)prepare and file with the SEC such amendments and supplements to such registration statement, and the prospectus used in connection with such registration statement, as may be necessary to comply with the Securities Act in order to enable the disposition of all securities covered by such registration statement;
(c)furnish to the selling Holders such numbers of copies of a prospectus, including a preliminary prospectus, as required by the Securities Act, and such other documents as the Holders may reasonably request in order to facilitate their disposition of their Registrable Securities;
(d)use its commercially reasonable efforts to register and qualify the securities covered by such registration statement under such other securities or blue-sky laws of such jurisdictions as shall be reasonably requested by the selling Holders; provided that the Company shall not be required to qualify to do business or to file a general consent to service of process in any such states or jurisdictions, unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities Act;
(e)in the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the underwriter(s) of such offering;
(f)use its commercially reasonable efforts to cause all such Registrable Securities covered by such registration statement to be listed on a national securities exchange or trading system and each securities exchange and trading system (if any) on which similar securities issued by the Company are then listed;
(g)provide a transfer agent and registrar for all Registrable Securities registered pursuant to this Agreement and provide a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration;
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(h)promptly make available for inspection by the selling Holders, any managing underwriter(s) participating in any disposition pursuant to such registration statement, and any attorney or accountant or other agent retained by any such underwriter or selected by the selling Holders, all financial and other records, pertinent corporate documents, and properties of the Company, and cause the Company’s officers, directors, employees, and independent accountants to supply all information reasonably requested by any such seller, underwriter, attorney, accountant, or agent, in each case, as necessary or advisable to verify the accuracy of the information in such registration statement and to conduct appropriate due diligence in connection therewith;
(i)notify each selling Holder, promptly after the Company receives notice thereof, of the time when such registration statement has been declared effective or a supplement to any prospectus forming a part of such registration statement has been filed; and
(j)after such registration statement becomes effective, notify each selling Holder of any request by the SEC that the Company amend or supplement such registration statement or prospectus.
In addition, the Company shall ensure that, at all times after any registration statement covering a public offering of securities of the Company under the Securities Act shall have become effective, its insider trading policy shall provide that the Company’s directors may implement a trading program under Rule 10b5-1 of the Exchange Act.
2.5Furnish Information. It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Section 2 with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the Company such information regarding itself, the Registrable Securities held by it, and the intended method of disposition of such securities as is reasonably required to effect the registration of such Holder’s Registrable Securities.
2.6Expenses of Registration. All expenses (other than Selling Expenses) incurred in connection with registrations, filings, or qualifications pursuant to Section 2, including all registration, filing, and qualification fees; printers’ and accounting fees; fees and disbursements of counsel for the Company; and the reasonable fees and disbursements of one counsel for the selling Holders (“Selling Holder Counsel”), shall be borne and paid by the Company; provided, however, that the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to Section 2.1 if the registration request is subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to be registered (in which case all selling Holders shall bear such expenses pro rata based upon the number of Registrable Securities that were to be included in the withdrawn registration), unless the Holders of a majority of the Registrable Securities agree to forfeit their right to one registration pursuant to Section 2.1(a) or Section 2.1(b), as the case may be; provided, further that if, at the time of such withdrawal, the Holders shall have learned of a material adverse change in the condition, business, or prospects of the Company from that known to the Holders at the time of their request and have withdrawn the request with reasonable promptness after learning of such information then the Holders shall not be required to pay any of such expenses and shall not forfeit their right to one registration pursuant
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to Section 2.1(a) or Section 2.1(b).  All Selling Expenses relating to Registrable Securities registered pursuant to this Section 2 shall be borne and paid by the Holders pro rata on the basis of the number of Registrable Securities registered on their behalf.
2.7Delay of Registration.  No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any registration pursuant to this Agreement as the result of any controversy that might arise with respect to the interpretation or implementation of this Section 2.
2.8Indemnification.  If any Registrable Securities are included in a registration statement under this Section 2:
(a)To the extent permitted by law, the Company will indemnify and hold harmless each selling Holder, and the partners, members, officers, directors, and stockholders of each such Holder; legal counsel and accountants for each such Holder; any underwriter (as defined in the Securities Act) for each such Holder; and each Person, if any, who controls such Holder or underwriter within the meaning of the Securities Act or the Exchange Act, against any Damages, and the Company will pay to each such Holder, underwriter, controlling Person, or other aforementioned Person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any claim or proceeding from which Damages may result, as such expenses are incurred; provided, however, that the indemnity agreement contained in this Section 2.8(a) shall not apply to amounts paid in settlement of any such claim or proceeding if such settlement is effected without the consent of the Company, which consent shall not be unreasonably withheld, nor shall the Company be liable for any Damages to the extent that they arise out of or are based upon actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of any such Holder, underwriter, controlling Person, or other aforementioned Person expressly for use in connection with such registration.
(b)To the extent permitted by law, each selling Holder, severally and not jointly, will indemnify and hold harmless the Company, and each of its directors, each of its officers who has signed the registration statement, each Person (if any), who controls the Company within the meaning of the Securities Act, legal counsel and accountants for the Company, any underwriter (as defined in the Securities Act), any other Holder selling securities in such registration statement, and any controlling Person of any such underwriter or other Holder, against any Damages, in each case only to the extent that such Damages arise out of or are based upon actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of such selling Holder expressly for use in connection with such registration and has not been corrected in a subsequent writing prior to or concurrently with its use in connection with the sale of Registrable Securities to the Person asserting the claim; and each such selling Holder will pay to the Company and each other aforementioned Person any legal or other expenses reasonably incurred thereby in connection with investigating or defending any claim or proceeding from which Damages may result, as such expenses are incurred; provided, however, that the indemnity agreement contained in this Section 2.8(b) shall not apply to amounts paid in settlement of any such claim or proceeding if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld; and provided, further that in no event shall the aggregate amounts payable by any Holder by way of indemnity or contribution
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under Sections 2.8(b) and 2.8(d) exceed the proceeds from the offering received by such Holder (net of any Selling Expenses paid by such Holder), except in the case of fraud or willful misconduct by such Holder.
(c)Promptly after receipt by an indemnified party under this Section 2.8 of notice of the commencement of any action (including any governmental action) for which a party may be entitled to indemnification hereunder, such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 2.8, give the indemnifying party notice of the commencement thereof.  The indemnifying party shall have the right to participate in such action and, to the extent the indemnifying party so desires, participate jointly with any other indemnifying party to which notice has been given, and to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party (together with all other indemnified parties that may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such action.  The failure to give notice to the indemnifying party within a reasonable time of the commencement of any such action shall relieve such indemnifying party of any liability to the indemnified party under this Section 2.8, to the extent that such failure materially prejudices the indemnifying party’s ability to defend such action.  The failure to give notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this Section 2.8.
(d)To provide for just and equitable contribution to joint liability under the Securities Act in any case in which either (i) any party otherwise entitled to indemnification hereunder makes a claim for indemnification pursuant to this Section 2.8 but it is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the last right of appeal) that such indemnification may not be enforced in such case, notwithstanding the fact that this Section 2.8 provides for indemnification in such case, or (ii) contribution under the Securities Act may be required on the part of any party hereto for which indemnification is provided under this Section 2.8, then, and in each such case, such parties will contribute to the aggregate losses, claims, damages, liabilities, or expenses to which they may be subject (after contribution from others) in such proportion as is appropriate to reflect the relative fault of each of the indemnifying party and the indemnified party in connection with the statements, omissions, or other actions that resulted in such loss, claim, damage, liability, or expense, as well as to reflect any other relevant equitable considerations.  The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or allegedly untrue statement of a material fact, or the omission or alleged omission of a material fact, relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission; provided, however, that, in any such case, (x) no Holder will be required to contribute any amount in excess of the public offering price of all such Registrable Securities offered and sold by such Holder pursuant to such registration statement, and (y) no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to
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contribution from any Person who was not guilty of such fraudulent misrepresentation; and provided, further, that in no event shall a Holder’s liability pursuant to this Section 2.8, when combined with the amounts paid or payable by such Holder pursuant to Section 2.8, exceed the proceeds from the offering received by such Holder (net of any Selling Expenses paid by such Holder), except in the case of willful misconduct or fraud by such Holder.
(e)Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control.
(f)Unless otherwise superseded by an underwriting agreement entered into in connection with the underwritten public offering, the obligations of the Company and Holders under this Section 2.8 shall survive the completion of any offering of Registrable Securities in a registration under this Section 2, and otherwise shall survive the termination of this Agreement.
2.9Reports Under Exchange Act. With a view to making available to the Holders the benefits of SEC Rule 144 and any other rule or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration or pursuant to a registration on Form S-3, the Company shall:
(a)make and keep available adequate current public information, as those terms are understood and defined in SEC Rule 144, at all times after the effective date of the registration statement filed by the Company for the IPO;
(b)use commercially reasonable efforts to file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act (at any time after the Company has become subject to such reporting requirements); and
(c)furnish to any Holder, so long as the Holder owns any Registrable Securities, forthwith upon request (i) to the extent accurate, a written statement by the Company that it has complied with the reporting requirements of SEC Rule 144 (at any time after ninety (90) days after the effective date of the registration statement filed by the Company for the IPO), the Securities Act, and the Exchange Act (at any time after the Company has become subject to such reporting requirements), or that it qualifies as a registrant whose securities may be resold pursuant to Form S-3 (at any time after the Company so qualifies); (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company; and (iii) such other information as may be reasonably requested in availing any Holder of any rule or regulation of the SEC that permits the selling of any such securities without registration (at any time after the Company has become subject to the reporting requirements under the Exchange Act) or pursuant to Form S-3 (at any time after the Company so qualifies to use such form).
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2.10Limitations on Subsequent Registration Rights. From and after the date of this Agreement, the Company shall not, without the prior written consent of the Holders of a majority of the Registrable Securities then outstanding, enter into any agreement with any holder or prospective holder of any securities of the Company that would (i) provide to such holder or prospective holder the right to include securities in any registration on other than on a subordinate basis after all Holders have had the opportunity to include in the registration and offering all shares of Registrable Securities that they wish to so include or (ii) allow such holder or prospective holder to initiate a demand for registration of any securities held by such holder or prospective holder.
2.11“Market Stand-off” Agreement. Each Holder hereby agrees that it will not, without the prior written consent of the managing underwriter, during the period commencing on the date of the final prospectus relating to the registration by the Company of shares of Common Stock in its IPO, and ending on the date specified by the Company and the managing underwriter (such period not to exceed one hundred eighty (180) days), (i) lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right, or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into or exercisable or exchangeable (directly or indirectly) for Common Stock held immediately before the effective date of the registration statement for the IPO or (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of such securities, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or other securities, in cash, or otherwise. The foregoing provisions of this Section 2.11 shall apply only to the IPO, shall not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement, shall not apply to the transfer of any shares in the Company owned by a Holder to its Affiliates, provided that the Affiliate of the Holder agrees to be bound in writing by the restrictions set forth herein, shall not apply to shares purchased by a Holder or its Affiliates in the open market, shall not apply to the transfer or sale of any shares pursuant to any exception, waiver or termination of the lock-up agreement executed with the underwriters in connection with the IPO and shall be applicable to the Holders only if all officers and directors are subject to the same restrictions and the Company obtains a similar agreement from all stockholders individually owning more than one percent (1%) of the Company’s outstanding Common Stock.  The underwriters in connection with the IPO are intended third party beneficiaries of this Section 2.11 and shall have the right, power, and authority to enforce the provisions hereof as though they were a party hereto.  Each Holder further agrees to execute such agreements as may be reasonably requested by the underwriters in connection with the IPO that are consistent with this Section 2.11 or that are necessary to give further effect thereto.  Any discretionary waiver or termination of the restrictions of any or all of such agreements by the Company or the underwriters shall apply pro rata to all Holders subject to such agreements, based on the number of shares subject to such agreements. Notwithstanding anything to the contrary herein, a Holder may place any charge, mortgage, lien, pledge, restriction, security interest or any encumbrance in respect of the Registrable Securities held by the Holder to secure any of the Holder’s (or any of its Affiliates’) payment obligations under a loan agreement to be entered into on or after the date of this Agreement by such Holder (or any of its affiliates).
2.12Restrictions on Transfer.
(a)The Registrable Securities shall not be sold, pledged, or otherwise transferred, and the Company shall not recognize and shall issue stop-transfer
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instructions to its transfer agent with respect to any such sale, pledge, or transfer, except upon the conditions specified in this Agreement, which conditions are intended to ensure compliance with the provisions of the Securities Act.  A transferring Holder will cause any proposed purchaser, pledgee, or transferee of the Registrable Securities held by such Holder to agree to take and hold such securities subject to the provisions and upon the conditions specified in this Agreement. Notwithstanding the foregoing, the Company shall not require any transferee of shares pursuant to an effective registration statement or, following the IPO, SEC Rule 144, in each case, to be bound by the terms of this Agreement.
(b)Each certificate or instrument representing (i) the Registrable Securities and (ii) any other securities issued in respect of the securities referenced in clause (i), upon any stock split, stock dividend, recapitalization, merger, consolidation, or similar event, shall (unless otherwise permitted by the provisions of Section 2.12(c)) be stamped or otherwise imprinted with a legend substantially in the following form:
THE SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.  SUCH SHARES MAY NOT BE SOLD, PLEDGED, OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR A VALID EXEMPTION FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SAID ACT.
THE SECURITIES REPRESENTED HEREBY MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF AN AGREEMENT OR AGREEMENTS BETWEEN THE COMPANY AND THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.
The Holders consent to the Company making a notation in its records and giving instructions to any transfer agent of the Restricted Securities in order to implement the restrictions on transfer set forth in this Section 2.12.
(c)The holder of each certificate representing Restricted Securities, by acceptance thereof, agrees to comply in all respects with the provisions of this Section 2.  Before any proposed sale, pledge, or transfer of any Restricted Securities, unless there is in effect a registration statement under the Securities Act covering the proposed transaction, the Holder thereof shall give notice to the Company of such Holder’s intention to effect such sale, pledge, or transfer.  Each such notice shall describe the manner and circumstances of the proposed sale, pledge, or transfer in sufficient detail and, if reasonably requested by the Company, shall be accompanied at such Holder’s expense by either: (i) a written opinion of legal counsel who shall, and whose legal opinion shall, be reasonably satisfactory to the Company, addressed to the Company, to the effect that the proposed transaction may be effected without registration under the Securities Act; (ii) a “no action” letter from the SEC to the effect that the proposed sale, pledge, or transfer of such Restricted Securities without registration will not result in a recommendation by the staff of the SEC that action be taken with respect thereto; or (iii) any other evidence reasonably satisfactory to counsel to the Company to the effect that the proposed sale, pledge, or transfer of the Restricted Securities may be effected without registration under the Securities Act, whereupon the Holder of such Restricted Securities shall be entitled to sell, pledge, or transfer
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such Restricted Securities in accordance with the terms of the notice given by the Holder to the Company.  The Company will not require such a notice, legal opinion or “no action” letter (x) in any transaction in compliance with SEC Rule 144 or (y) in any transaction in which such Holder distributes Restricted Securities to an Affiliate of such Holder for no consideration; provided that with respect to transfers under the foregoing clause (y), each transferee agrees in writing to be subject to the terms of this Section 2.12.  Each certificate or instrument evidencing the Restricted Securities transferred as above provided shall bear, except if such transfer is made pursuant to SEC Rule 144, the appropriate restrictive legend set forth in Section 2.12(b), except that such certificate shall not bear such restrictive legend if, in the opinion of counsel for such Holder and the Company, such legend is not required in order to establish compliance with any provisions of the Securities Act.
2.13Termination of Registration Rights.  The right of any Holder to request registration or inclusion of Registrable Securities in any registration pursuant to Section 2.1 or Section 2.2 shall terminate upon the earliest to occur of:
(a)the closing of a Sale Event;
(b)such time after the IPO as SEC Rule 144 or another similar exemption under the Securities Act is available for the sale of all of such Holder’s shares without limitation during a three-month period without registration;
(c)the fifth (5th) anniversary of the consummation of the IPO; or
(d)the closing of any merger or other transaction in which all outstanding shares of capital stock of the Company are exchanged for securities registered under the Exchange Act.
3.Miscellaneous.
3.1Successors and Assigns. The rights under this Agreement may be assigned (but only with all related obligations) by a Holder to a transferee of Registrable Securities that (i) is an Affiliate of a Holder; (ii) is a Holder’s Immediate Family Member or trust for the benefit of an individual Holder or one or more of such Holder’s Immediate Family Members; or (iii) after such transfer, holds at least 7,500 shares of Registrable Securities (subject to appropriate adjustment for stock splits, stock dividends, combinations, and other recapitalizations); provided, however, that (x) the Company is, within a reasonable time after such transfer, furnished with written notice of the name and address of such transferee and the Registrable Securities with respect to which such rights are being transferred; and (y) such transferee agrees in a written instrument delivered to the Company to be bound by and subject to the terms and conditions of this Agreement, including the provisions of Section 2.11.  For the purposes of determining the number of shares of Registrable Securities held by a transferee, the holdings of a transferee (1) that is an Affiliate or stockholder of a Holder; (2) who is a Holder’s Immediate Family Member; or (3) that is a trust for the benefit of an individual Holder or such Holder’s Immediate Family Member shall be aggregated together and with those of the transferring Holder; provided further that all transferees who would not qualify individually for assignment of rights shall have a single attorney-in-fact for the purpose of exercising any rights, receiving notices, or taking any action
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under this Agreement.  The terms and conditions of this Agreement inure to the benefit of and are binding upon the respective successors and permitted assignees of the parties.  Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and permitted assignees any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided herein.
3.2Governing Law. This Agreement is governed by and shall be construed in accordance with the law of the State of Delaware, exclusive of its conflict-of-laws principles.
3.3Counterparts; Facsimile.  This Agreement may be executed and delivered by facsimile transmission or electronic mail (including in .pdf format) and in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
3.4Titles and Subtitles.  Titles or captions of Sections contained in this Agreement are inserted as a matter of convenience and for reference, and in no way define, limit, extend or describe the scope of this Agreement or the intent of any provision hereof.
3.5Notices. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or: (a) personal delivery to the party to be notified; (b) when sent, if sent by electronic mail or facsimile during the recipient’s normal business hours, and if not sent during normal business hours, then on the recipient’s next business day; (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (d) one (1) business day after the business day of deposit with a nationally recognized overnight courier, freight prepaid, specifying next-day delivery, with written verification of receipt.  All communications shall be sent to the respective parties at their addresses as set forth on Schedule A hereto, or to the principal office of the Company and to the attention of the President or Chief Executive Officer, in the case of the Company, or to such email address, facsimile number, or address as subsequently modified by written notice given in accordance with this Section 3.5.  If notice is given to the Company, a copy shall also be sent to Goodwin Procter LLP, 100 Northern Avenue, Boston, 02210, Attn: Gregg L. Katz and Jesse Nevarez, Email: gkatz@goodwinlaw.com; jnevarez@goodwinlaw.com.
3.6Amendments and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance, and either retroactively or prospectively) only with the written consent of the Company and the holders of a majority of the Registrable Securities then outstanding; provided that the Company may in its sole discretion waive compliance with Section 2.12(c) (and the Company’s failure to object promptly in writing after notification of a proposed assignment allegedly in violation of Section 2.12(c) shall be deemed to be a waiver); and provided further that any provision hereof may be waived by any waiving party on such party’s own behalf, without the consent of any other party.  Notwithstanding the foregoing, this Agreement may not be amended or terminated and the observance of any term hereof may not be waived with respect to any Investor without the written consent of such Investor, unless such amendment, termination, or waiver applies to all Investors in the same fashion.  The Company shall give prompt notice of any amendment or termination hereof or waiver hereunder to any party hereto that did not consent in writing to such amendment, termination, or waiver.  Any amendment, termination, or waiver
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effected in accordance with this Section 3.6 shall be binding on all parties hereto, regardless of whether any such party has consented thereto.  No waivers of or exceptions to any term, condition, or provision of this Agreement, in any one or more instances, shall be deemed to be or construed as a further or continuing waiver of any such term, condition, or provision.
3.7Severability.  In case any one or more of the provisions contained in this Agreement is for any reason held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement, and such invalid, illegal, or unenforceable provision shall be reformed and construed so that it will be valid, legal, and enforceable to the maximum extent permitted by law.
3.8Aggregation of Stock. All shares of Registrable Securities held or acquired by Affiliates shall be aggregated together for the purpose of determining the availability of any rights under this Agreement and such Affiliated persons may apportion such rights as among themselves in any manner they deem appropriate.
3.9Entire Agreement.  This Agreement (including any Schedules hereto) constitutes the full and entire understanding and agreement among the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties is expressly canceled.
3.10Dispute Resolution. The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of the State of Delaware and to the jurisdiction of the courts of Delaware and the federal courts of the United States of America located in Delaware for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in the state courts of the State of Delaware or the federal courts of the United States of America located in Delaware, and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court.
3.11Delays or Omissions.  No delay or omission to exercise any right, power, or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power, or remedy of such nonbreaching or nondefaulting party, nor shall it be construed to be a waiver of or acquiescence to any such breach or default, or to any similar breach or default thereafter occurring, nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring.  All remedies, whether under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.
3.12Further Assurances.  At any time or from time to time after the date hereof, 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
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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.
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
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	ENFUSION, INC.

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	By:
	/s/ Thomas Kim

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	Name:
	Thomas Kim 

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	Title:
	Chief Executive Officer 

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	INVESTORS:

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	FTV IV, L.P. 
By: FTV IV, L.L.C., its general partner 

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	By:
	/s/ David A. Haynes

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	Name:
	David A. Haynes

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	Title:
	Managing Member

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	Address:
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	555 California Street 

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	San Francisco, CA 94104

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	ISP MAIN FUND EF LLC 

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	By:
	/s/ Kevin Foster

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	Name:
	Kevin Foster 

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	Title:
	Authorized Signatory

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	ICONIQ STRATEGIC PARTNERS V-B, L.P.

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	By:
	/s/ Kevin Foster 

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	Name:
	Kevin Foster

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	Title:
	Authorized Signatory 

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	ELL INVESTMENTS, L.P.
By: HH ELL Holdings GP Limited, its general partner 

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	By:
	/s/ Colm O’Connell

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	Name:
	Colm O’Connell 

[Signature Page to Registration Rights Agreement]

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	Title:
	Authorized Representative

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	Address:
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	108 Lakeland Ave

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	Dover, DE 19901 

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	CSL TECH HOLDINGS, LLC 

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	By:
	/s/ Oleg Movchan

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	Name:
	Oleg Movchan

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	Title:
	Manager/Authorized Signatory 

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	MALHERBE INVESTMENTS LLC 

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	By:
	/s/ Stephen Malherbe

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	Name:
	Stephen Malherbe 

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	Title:
	Managing Member

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	Address:
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	1063 Gallant Court

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	Wheaton, IL 60187

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	WERNER CAPITAL LLC

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	By:
	/s/ Scott Werner

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	Name:
	Scott Werner 

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	Title:
	Manager

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	Address:
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	c/o Enfusion, Inc.

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	125 South Clark Street, Suite 750

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	Chicago, IL 60603

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LRA VENTURES LLC 

[Signature Page to Registration Rights Agreement]

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	By:
	/s/ Tarek Hammoud

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	Name:
	Tarek Hammoud

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	Title:
	Manager

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[Signature Page to Registration Rights Agreement]

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SCHEDULE A
INVESTORS
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	Name
	Address

	LRA Ventures, LLC
	300 Collins Ave., Unit 4C, Miami Beach, FL 33139.

	Werner Capital LLC
	c/o Enfusion, Inc., 125 South Clark Street, Suite 750, Chicago, IL 60603

	Malherbe Investments LLC  
	1063 Gallant Court, Wheaton, IL 60187

	CSL Tech Holdings, LLC  
	806 Central Avenue, Suite 203, Highland Park, IL 60035

	ELL Investments, L.P. 
	108 Lakeland Ave, Dover, Delaware 19901.

	ISP V-B EF LP
	394 Pacific Ave., 2nd Floor, San Francisco, CA 94111

	ISP V Main Fund EF LLC
	394 Pacific Ave., 2nd Floor, San Francisco, CA 94111

	FTV IV, L.P.
	555 California Street, Suite 2850 San Francisco, CA 94104.

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