Document:

Exhibit 10.1

 

Exhibit 10.1

CHROMADEX CORPORATION

 

EXECUTIVE EMPLOYMENT
AGREEMENT

 

for

 

KEVIN M. FARR

 

This
Executive Employment Agreement (this “Agreement”) is entered into as of
October 5, 2017 (the “Effective Date”), by and between
Kevin M. Farr (“Executive”) and ChromaDex
Corporation, a Delaware corporation (the “Company”).

 

1. Employment
by the Company.

 

1.1 Position.
Executive shall serve as the Company’s Chief Financial
Officer, reporting to the Company’s Chief Executive Officer
(the “CEO”)
and/or President, as determined by the CEO and President. During
the term of Executive’s employment with the Company,
Executive will devote Executive’s commercially reasonable
efforts and substantially all of Executive’s business time
and attention to the business of the Company, except for approved
paid time off and reasonable periods of illness or other
incapacities permitted by the Company’s general employment
policies and applicable law.

 

1.2 Duties
and Location. Executive shall perform such duties as are
customarily associated with the position of Chief Financial Officer
and such other duties, commensurate with his position, as are
assigned to Executive by the CEO and/or President, or the
Company’s Board of Directors (the “Board”). Executive’s primary
office location shall be in the Los Angeles, California area. The
Company reserves the right to reasonably require Executive to
perform Executive’s duties at the Company’s offices in
Irvine, California as required for the performance of his duties
and for business meetings with Company employees or representatives
of third parties, and to require reasonable business
travel.

 

1.3 Policies
and Procedures. The employment relationship between the
parties shall be governed by the general employment policies and
practices of the Company, except that when the terms of this
Agreement differ from or are in conflict with the Company’s
general employment policies or practices, this Agreement shall
control.

 

2. Compensation.

 

2.1 Base
Salary. Executive will receive an initial base salary at the
annual rate of $300,000, less standard payroll deductions and
withholdings and payable in accordance with the Company’s
regular payroll schedule. The base salary may be increased from
time to time. The base salary may not be decreased, other than a
decrease of less than ten percent (10%) of Executive’s
highest base salary pursuant to a salary reduction program
applicable generally to the Company’s senior executives. The
initial base salary, as increased or decreased, shall be referred
to as “Base
Salary.”

 

 

 

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2.2 Annual
Bonus. In addition to base salary, Executive will be
eligible to earn discretionary annual incentive compensation (the
“Performance
Bonus”), based on the achievement of individual and
corporate performance targets and metrics to be determined and
approved by the Board or the Compensation Committee thereof. The
Performance Bonus, if earned, will be paid on an annual basis, less
standard payroll deductions and withholdings, after the close of
the fiscal year and after determination by the Board (or the
Compensation Committee thereof) of the level of achievement of the
applicable performance targets and metrics and the level of the
bonus amount, but not later than March 15 of the following calendar
year. No Performance Bonus amount is guaranteed and, in addition to
the other conditions for earning such Performance Bonus, Executive
must remain an employee in good standing of the Company on the
scheduled annual Performance Bonus payment date in order to earn
any Performance Bonus, except as otherwise provided
herein.

 

2.3 Stock
Options. Subject to the approval of the Board, the Company
will grant Executive options (incentive stock options, to the
extent possible pursuant to the terms of the Company’s 2017
Equity Incentive Plan (the “Plan”) and applicable law) (the
“Options”) to
purchase 1,000,000 shares of the Company’s common stock for
an exercise price equal to the fair market value on the date of the
grant. The Options shall vest in a series of 36 equal monthly
installments over three years, subject to Executive’s
Continuous Service (as defined in the Plan) on each such vesting
date. Notwithstanding anything to the contrary set forth in the
Plan or any award agreement, (A) if the Company consummates a
Change in Control (as that term is defined in the Plan) and subject
to (i) Executive’s Continuous Service through the date of the
consummation of the Change in Control or (ii) termination by the
Company without Cause or by the Executive for Good Reason within 90
days prior to the consummation of a Change in Control, Executive
shall vest immediately prior to such Change in Control as to 100%
of his otherwise unvested time-based equity awards (the
“Single Trigger
Acceleration”), provided, however, that in exchange
for the Single Trigger Acceleration, the Company may require
Executive to execute and deliver to the Company a signed and dated
general release of all known and unknown claims in substantially
the form attached hereto as Exhibit A
(the “Release”),
and (B) any unvested Options held by Executive shall become fully
vested on the date that the unweighted average closing price of the
Company’s common stock as quoted on the Nasdaq Capital Market
(or such similar established stock exchange) over the previous 20
trading days (including the date such calculation is measured)
first equals or exceeds $10.00 per share (as adjusted for any stock
dividends, combinations, splits, recapitalizations and the like
with respect to the Company’s common stock after the
Effective Date) (the “Price
Threshold Date”), subject to (i) Executive’s
Continuous Service through such Price Threshold Date or (ii)
termination by the Company without Cause or by the Executive for
Good Reason within 90 days prior to the Price Threshold
Date.

 

3. Standard
Company Benefits. Executive shall, in accordance with
Company policy and the terms and conditions of the applicable
Company benefit plan documents, be eligible to participate in the
benefit and fringe benefit programs provided by the Company to its
senior executive officers from time to time. Any such benefits
shall be subject to the terms and conditions of the governing
benefit plans and policies and may be changed by the Company in its
discretion.

 

4. Expenses.
The Company will reimburse Executive for reasonable travel,
entertainment or other expenses incurred by Executive in
furtherance or in connection with the performance of
Executive’s duties hereunder, in accordance with the
Company’s expense reimbursement policy as in effect from time
to time.

 

5. Proprietary
Information Obligations.

 

5.1 Proprietary
Information Agreement. As a condition of employment, and in
consideration for the benefits provided for in this Agreement,
Executive shall sign and comply with the Company’s Employee
Confidential Information and Invention Assignment Agreement (the
“Proprietary Information
Agreement”) attached hereto as Exhibit B.
 In
addition, Executive agrees to abide by the Company’s
internally published policies and procedures, as may be modified
and internally published from time to time within the
Company’s discretion.

 

 

 

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5.2 Third-Party
Agreements and Information. Executive represents and
warrants that Executive’s employment by the Company does not
conflict with any prior employment or consulting agreement or other
agreement with any third party, and that Executive will perform
Executive’s duties to the Company without violating any such
agreement. Executive represents and warrants that Executive does
not possess confidential information arising out of prior
employment, consulting, or other third party relationships, that
would be used in connection with Executive’s employment by
the Company, except as expressly authorized by that third party.
During Executive’s employment by the Company, Executive will
use in the performance of Executive’s duties only information
that is generally known and used by persons with training and
experience comparable to Executive’s own, common knowledge in
the industry, otherwise legally in the public domain, or obtained
or developed by the Company or by Executive in the course of
Executive’s work for the Company.

 

6. Outside
Activities and Non-Competition During
Employment.

 

6.1 Outside
Activities. Throughout Executive’s employment with the
Company, Executive may engage in civic and not-for-profit
activities and manage his and his family’s passive
investments, so long as such activities do not materially interfere
with the performance of Executive’s duties hereunder or
present a conflict of interest with the Company or its affiliates.
Subject to the restrictions set forth herein, and only with prior
written disclosure to and consent of the Board, Executive may
engage in other types of business or public activities. The Board
may rescind such consent, if the Board determines, in its good
faith discretion, that such activities compromise or threaten to
compromise the Company’s or its affiliates’ business
interests or conflict or compete with Executive’s duties to
the Company or its affiliates. The Board has consented to
Executive’s service on the board of Polaris Industries,
Inc.

 

6.2 Non-Competition
During Employment. Except as otherwise provided in this
Agreement, during Executive’s employment with the Company,
Executive will not, without the prior written consent of the Board,
directly or indirectly serve as an officer, director, stockholder,
employee, partner, proprietor, investor, joint venturer, associate,
representative or consultant of any person or entity engaged in, or
planning or preparing to engage in, business activity competitive
with any line of business engaged in (or planned to be engaged in)
by the Company; provided, however, that Executive may purchase or
otherwise acquire up to (but not more than) one percent (1%) of any
class of securities of any enterprise (without participating in the
activities of such enterprise) if such securities are listed on any
national or regional securities exchange.

 

7. Termination
of Employment; Severance.

 

7.1 At-Will
Employment. Executive’s employment relationship is
at-will. Either Executive or the Company may terminate the
employment relationship at any time, with or without Cause (as
defined below) or advance notice.

 

7.2 Termination
Without Cause or Resignation for Good Reason. In the event
Executive’s employment with the Company is terminated by the
Company without Cause (and other than as a result of
Executive’s death or Disability (as defined below)) or
Executive resigns his employment for Good Reason, then provided
such termination or resignation constitutes a “separation
from service” (as defined under Treasury Regulation Section
1.409A-1(h), without regard to any alternative definition
thereunder, a “Separation
from Service”), and provided that Executive satisfies
the Release Requirement in Section 8 below, the Company shall
provide Executive with the following “Severance Benefits”:

 

 

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7.2.1        
Severance Payments.
Severance pay in the form of continuation of Executive’s Base
Salary for a period of twelve (12) months following termination,
subject to required payroll deductions and tax withholdings (the
“Severance
Payments”). Subject to Section 8 below, the Severance
Payments shall be made on the Company’s regular payroll
schedule in effect following Executive’s termination date;
provided, however that any such payments that are otherwise
scheduled to be made prior to the Release Effective Date (as
defined below) shall instead accrue and be made on the first
administratively practicable payroll date following the Release
Effective Date. For such purposes, Executive’s final Base
Salary will be calculated prior to giving effect to any reduction
in Base Salary that would give rise to Executive’s right to
resign for Good Reason.

 

7.2.2        
Health Care Continuation Coverage
Payments. If Executive timely elects continued coverage
under COBRA, the Company will pay Executive’s COBRA premiums
to continue Executive’s coverage (including coverage for
Executive’s eligible dependents, if applicable)
(“COBRA
Premiums”) through the period starting on the
termination date and ending twelve (12) months after the
termination date (the “COBRA
Premium Period”); provided, however, that the
Company’s provision of such COBRA Premium benefits will
immediately cease if during the COBRA Premium Period Executive
becomes eligible for group health insurance coverage through a new
employer or Executive ceases to be eligible for COBRA continuation
coverage for any reason, including plan termination. In the event
Executive becomes covered under another employer’s group
health plan or otherwise ceases to be eligible for COBRA during the
COBRA Premium Period, Executive must immediately notify the Company
of such event. The COBRA Premiums paid by the Company shall be
treated as taxable income to Executive.

 

7.2.3         
Equity Acceleration upon
Termination. Notwithstanding
anything to the contrary set forth in the Plan or any award
agreement, effective as of Executive’s employment termination
date, the vesting and exercisability of the then unvested
time-based vesting equity awards that would have otherwise become
vested had Executive performed Continuous Service through the one
year anniversary of Executive’s employment termination date
then held by Executive shall accelerate and become immediately
vested and exercisable, if applicable, by Executive upon such
termination and shall remain exercisable, if applicable, following
Executive’s termination as set forth in the applicable equity
award documents. With respect to any performance-based vesting
equity award, such award shall continue to be governed in all
respects by the terms of the applicable equity award documents.
Upon any such termination, Executive shall have three (3) years to
exercise any options or stock appreciation rights, but no later
than ten (10) years from the date of grant or the date when the
options or stock appreciation rights would otherwise terminate
under the Plan other than as a result of termination of employment
(e.g., if all of the Company’s options are accelerated and
terminate if not exercised in connection with a Change in Control
(as that term is defined in the Plan), then Executive’s
options will also terminate if not exercised in connection with the
Change in Control).

 

7.2.4          
Pro Rata Bonus. Executive
shall be eligible to receive, based on the good faith determination
of the Board or the Compensation Committee thereof, a pro rata
Performance Bonus based on actual results and Executive’s
period of employment during the fiscal year in which termination
occurred (the “Pro Rata
Bonus”), on the date when other bonuses are paid for
the fiscal year.

 

7.2.5       
   No Mitigation or
Offset. The Executive shall have no obligation to mitigate
the obligations hereunder, and the amounts due hereunder shall not
be offset by any amounts otherwise earned by
Executive.

 

 

 

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7.3 Termination
for Cause; Resignation Without Good Reason; Death or
Disability. Executive will not be eligible for, or entitled
to any severance benefits, including (without limitation) the
Severance Benefits listed in Section 7.2 above, if the Company
terminates Executive’s employment for Cause, Executive
resigns Executive’s employment without Good Reason, or
Executive’s employment terminates due to Executive’s
death or Disability, provided that the Executive, in the case of
death or Disability termination, shall be eligible to receive a Pro
Rata Bonus.

 

8. Conditions
to Receipt of Severance Benefits. To be eligible for any of
the Severance Benefits pursuant to Section 7.2 above, Executive
must satisfy the following release requirement (the
“Release
Requirement”): return to the Company a signed and
dated Release within the applicable deadline set forth therein, but
in no event later than forty-five (45) calendar days following
Executive’s termination date, and permit the Release to
become effective and irrevocable in accordance with its terms (such
effective date of the Release, the “Release Effective Date”). No
Severance Benefits will be provided hereunder prior to the Release
Effective Date. Accordingly, if Executive refuses to sign and
deliver to the Company an executed Release or signs and delivers to
the Company the Release but exercises Executive’s right, if
any, under applicable law to revoke the Release (or any portion
thereof), then Executive will not be entitled to any severance,
payment or benefit under this Agreement.

 

9. Accrued
Amounts. On any termination, the Executive shall promptly
receive earned but unpaid Base Salary, accrued but unused vacations
and unreimbursed expenses (in accordance with the Company’s
applicable expense reimbursement policies), and shall be entitled
to any amounts due under any benefit or fringe plan or program in
accordance with the provisions of the plan or program.

 

10. Section
409A. It is intended that all of the severance benefits and
other payments payable under this Agreement satisfy, to the
greatest extent possible, the exemptions from the application of
Code Section 409A provided under Treasury Regulations
1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9), and this
Agreement will be construed to the greatest extent possible as
consistent with those provisions, and to the extent no so exempt,
this Agreement (and any definitions hereunder) will be construed in
a manner that complies with Section 409A. For purposes of Code
Section 409A (including, without limitation, for purposes of
Treasury Regulation Section 1.409A-2(b)(2)(iii)), Executive’s
right to receive any installment payments under this Agreement
(whether severance payments, reimbursements or otherwise) shall be
treated as a right to receive a series of separate payments and,
accordingly, each installment payment hereunder shall at all times
be considered a separate and distinct payment. Any reference to
termination or similar words shall mean a separation from service
under the meaning of Code Section 409A. Notwithstanding any
provision to the contrary in this Agreement, if Executive is deemed
by the Company at the time of Executive’s Separation from
Service to be a “specified employee” for purposes of
Code Section 409A(a)(2)(B)(i), and if any of the payments upon
Separation from Service set forth herein and/or under any other
agreement with the Company are deemed to be “deferred
compensation”, then to the extent delayed commencement of any
portion of such payments is required in order to avoid a prohibited
distribution under Code Section 409A(a)(2)(B)(i) and the related
adverse taxation under Section 409A, such payments shall not be
provided to Executive prior to the earliest of (i) the expiration
of the six-month and one day period measured from the date of
Executive’s Separation from Service with the Company, (ii)
the date of Executive’s death or (iii) such earlier date as
permitted under Section 409A without the imposition of adverse
taxation. Upon the first business day following the expiration of
such applicable Code Section 409A(a)(2)(B)(i) period, all payments
deferred pursuant to this Section 10 shall be paid in a lump sum to
Executive, and any remaining payments due shall be paid as
otherwise provided herein or in the applicable agreement. No
interest shall be due on any amounts so deferred. If any severance
benefits provided under this Agreement constitutes “deferred
compensation” under Section 409A, for purposes of determining
the schedule for payment of the severance benefits, the effective
date of the Release will be the sixtieth (60th) date following the
Separation From Service, regardless of when the Release actually
becomes effective. To the extent required to avoid accelerated
taxation and/or tax penalties under Code Section 409A, amounts
reimbursable to Executive under this Agreement shall be paid to
Executive on or before the last day of the year following the year
in which the expense was incurred, amounts shall not be subject to
liquidation or exchange for another benefit, and the amount of
expenses eligible for reimbursement (and in-kind benefits provided
to Executive) during any one year may not effect amounts
reimbursable or provided in any subsequent year. The Company makes
no representation that any or all of the payments described in this
Agreement will be exempt from or comply with Code Section
409A.

 

 

 

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11. Section
280G; Limitations on Payment.

 

11.1 If
any payment or benefit Executive will or may receive from the
Company or otherwise (a “280G
Payment”) would (i) constitute a “parachute
payment” within the meaning of Section 280G of the Code, and
(ii) but for this sentence, be subject to the excise tax
imposed by Section 4999 of the Code (the “Excise Tax”), then any such 280G
Payment provided pursuant to this Agreement (a “Payment”) shall be equal to the
Reduced Amount. The “Reduced
Amount” shall be either (x) the largest portion
of the Payment that would result in no portion of the Payment
(after reduction) being subject to the Excise Tax or (y) the
largest portion, up to and including the total, of the Payment,
whichever amount (i.e., the amount determined by clause (x) or by
clause (y)), after taking into account all applicable federal,
state and local employment taxes, income taxes, and the Excise Tax
(all computed at the highest applicable marginal rate), results in
Executive’s receipt, on an after-tax basis, of the greater
economic benefit notwithstanding that all or some portion of the
Payment may be subject to the Excise Tax. If a reduction in a
Payment is required pursuant to the preceding sentence, the
reduction shall occur in the manner (the “Reduction Method”) that results in
the greatest after tax economic benefit for Executive. If more than
one method of reduction will result in the same after tax economic
benefit, the items so reduced will be reduced pro rata (the
“Pro Rata Reduction
Method”).

 

11.2 Notwithstanding
any provision of Section 11.1 to the contrary, if the
Reduction Method or the Pro Rata Reduction Method would result in
any portion of the Payment being subject to taxes pursuant to
Section 409A that would not otherwise be subject to taxes pursuant
to Section 409A, then the Reduction Method and/or the Pro Rata
Reduction Method, as the case may be, shall be modified so as to
avoid the imposition of taxes pursuant to Section 409A as follows:
(A) as a first priority, the modification shall preserve to
the greatest extent possible, the greatest after tax economic
benefit for Executive as determined on an after-tax basis;
(B) as a second priority, Payments that are contingent on
future events (e.g., being
terminated without Cause), shall be reduced (or eliminated) before
Payments that are not contingent on future events; and (C) as
a third priority, Payments that are “deferred
compensation” within the meaning of Section 409A shall be
reduced (or eliminated) before Payments that are not deferred
compensation within the meaning of Section 409A.

 

11.3 Unless Executive
and the Company agree on an alternative accounting firm or law
firm, the accounting firm engaged by the Company for general tax
compliance purposes as of the day prior to the effective date of
the Change in Control transaction shall perform the foregoing
calculations. If the accounting firm so engaged by the Company is
serving as accountant or auditor for the individual, entity or
group effecting the Change in Control transaction, the Company
shall appoint a nationally recognized accounting or law firm to
make the determinations required by this Section 11. The Company
shall bear all expenses with respect to the determinations by such
accounting or law firm required to be made hereunder. The Company shall use commercially reasonable
efforts to cause the accounting or law firm engaged to make the
determinations hereunder to provide its calculations, together with
detailed supporting documentation, to Executive and the Company within fifteen (15) calendar days
after the date on which Executive’s right to a 280G Payment becomes reasonably likely
to occur (if requested at that time by Executive
or the Company) or such other time as
requested by Executive or the
Company.

 

11.4 If
Executive receives a Payment for which the Reduced Amount was
determined pursuant to clause (x) of Section 11.1 and the Internal
Revenue Service determines thereafter that some portion of the
Payment is subject to the Excise Tax, Executive agrees, to the
extent not in violation of the Sarbanes-Oxley Act, to promptly
return to the Company a sufficient amount of the Payment (after
reduction pursuant to clause (x) of Section 11.1) so that no
portion of the remaining Payment is subject to the Excise Tax. For
the avoidance of doubt, if the Reduced Amount was determined
pursuant to clause (y) of Section 11.1, Executive shall have no
obligation to return any portion of the Payment pursuant to the
preceding sentence.

 

 

 

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12. Definitions.

 

12.1 Cause.
For the purposes of this Agreement, “Cause” means the occurrence of any
one or more of the following: (i) Executive’s
conviction of or plea of guilty or nolo contendere to any felony;
(ii)
Executive’s willful and continued failure or refusal to
follow lawful and reasonable instructions of the Company or the
Board or lawful, reasonable, material and internally published
policies and regulations of the Company;
(iii) Executive’s willful and continued failure to
perform the assigned duties of Executive’s employment with
the Company; (iv) unethical or fraudulent conduct by Executive that
materially discredits the Company or is materially detrimental to
the reputation, character and standing of the Company; or (v)
Executive’s material breach of this Agreement or the
Proprietary Information Agreement. An event described in Section
12.1(ii) through Section 12.1(v) herein shall not be treated as
“Cause” until after Executive has been given written
notice of such event, failure, conduct or breach and Executive
fails to cure such event, failure, conduct or breach within 30
calendar days from such written notice; provided, however, that
such 30 calendar day cure period shall not be required if the
event, failure, conduct or breach is incapable of being
cured.

 

12.2 Good
Reason. For purposes of this Agreement, Executive shall have
“Good Reason”
for resignation from employment with the Company if any of the
following actions are taken by the Company without
Executive’s prior written consent: (i) a reduction in
Executive’s Base Salary, other than a reduction by less than
ten percent (10%) of the Executive’s highest Base Salary
pursuant to a salary reduction program applicable generally to the
Company’s senior executives; (ii) a material reduction in
Executive’s duties (including responsibilities and/or
authorities) or reporting lines; (iii) a relocation of
Executive’s principal place of employment to a place that
increases Executive’s one-way commute by more than thirty
(30) miles as compared to Executive’s then-current principal
place of employment immediately prior to such relocation (excluding
any relocation to the Company’s Irvine, California office);
or (iv) a material breach of this Agreement. In order for
Executive to resign for Good Reason, each of the following
requirements must be met: (w) Executive must provide written
notice to the Company’s Board within 60 days after the first
occurrence of the event giving rise to Good Reason setting forth
the basis for Executive’s resignation, (x) Executive must
allow the Company at least calendar 30 days from receipt of such
written notice to cure such event, (y) such event is not reasonably
cured by the Company within such 30 calendar day period (the
“Cure Period”),
and (z) Executive must resign from all positions Executive
then holds with the Company not later than calendar 30 days after
the expiration of the Cure Period.

 

12.3 Disability.
For purposes of this Agreement, “Disability” means that Executive
is unable to perform the essential functions of his position
(notwithstanding the provision of any reasonable accommodation) by
reason of any medically determinable physical or mental impairment
which has lasted for a period of one hundred and twenty (120) days
during any consecutive six (6) month period.

 

13. Dispute
Resolution. To ensure the rapid and economical resolution of
disputes that may arise in connection with Executive’s
employment with the Company, Executive and the Company agree that
any and all disputes, claims, or causes of action, in law or
equity, including but not limited to statutory claims, arising from
or relating to the enforcement, breach, performance, or
interpretation of this Agreement, Executive’s employment with
the Company, or the termination of Executive’s employment
with the Company, will be resolved pursuant to the Federal
Arbitration Act, 9 U.S.C. §1-16, and to the fullest extent
permitted by law, by final, binding and confidential arbitration
conducted in Irvine, California by JAMS, Inc. (“JAMS”) or its successors by a
single arbitrator. Both Executive and the
Company acknowledge that by agreeing to this arbitration procedure,
they each waive the right to resolve any such dispute through a
trial by jury or judge or administrative
proceeding. Any
such arbitration proceeding will be governed by JAMS’ then
applicable rules and procedures for employment disputes, which will
be provided to Executive upon request. In any such proceeding, the
arbitrator shall: (i) have the authority to compel adequate
discovery for the resolution of the dispute and to award such
relief as would otherwise be permitted by law;

 

 

 

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and
(ii) issue a written arbitration decision including the
arbitrator’s essential findings and conclusions and a
statement of the award. Executive and the Company each shall be
entitled to all rights and remedies that either would be entitled
to pursue in a court of law. Nothing in this Agreement is intended
to prevent either the Company or Executive from obtaining
injunctive relief in court to prevent irreparable harm pending the
conclusion of any such arbitration pursuant to applicable law. The
Company shall pay all filing fees in excess of those which would be
required if the dispute were decided in a court of law, and shall
pay the arbitrator’s fees and any other fees or costs unique
to arbitration. The parties shall pay their own legal fees. Any
awards or orders in such arbitrations may be entered and enforced
as judgments in the federal and state courts of any competent
jurisdiction.

 

14. General
Provisions.

 

14.1 Notices.
Any notices provided must be in writing and will be deemed
effective upon the earlier of personal delivery (including personal
delivery by fax) or the next day after sending by overnight
carrier, to the Company at its primary office location and to
Executive at the address as listed on the Company
payroll.

 

14.2 Severability.
Whenever possible, each provision of this Agreement will be
interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to
be invalid, illegal or unenforceable in any respect under any
applicable law or rule in any jurisdiction, such invalidity,
illegality or unenforceability will not affect any other provision
or any other jurisdiction, but this Agreement will be reformed,
construed and enforced in such jurisdiction to the extent possible
in keeping with the intent of the parties.

 

14.3 Waiver.
Any waiver of any breach of any provisions of this Agreement must
be in writing to be effective, and it shall not thereby be deemed
to have waived any preceding or succeeding breach of the same or
any other provision of this Agreement.

 

14.4 Complete
Agreement. This Agreement, together with the Proprietary
Information Agreement and to the extent referenced in this
Agreement, the Plan, constitutes the entire agreement between
Executive and the Company with regard to the subject matter hereof
and is the complete, final, and exclusive embodiment of the
Company’s and Executive’s agreement with regard to this
subject matter. This Agreement is entered into without reliance on
any promise or representation, written or oral, other than those
expressly contained herein, and it supersedes and replaces any
other agreements or promises made to Executive by anyone concerning
Executive’s employment terms, compensation or benefits,
whether oral or written (including but not limited any agreements
or promises with or from the Company or any of its affiliates or
predecessors). It cannot be modified or amended except in a writing
signed by a duly authorized officer of the Company, with the
exception of those changes expressly reserved to the
Company’s discretion in this Agreement.

 

14.5 Counterparts.
This Agreement may be executed in separate counterparts, any one of
which need not contain signatures of more than one party, but both
of which taken together will constitute one and the same
Agreement.

 

14.6 Headings.
The headings of the sections hereof are inserted for convenience
only and shall not be deemed to constitute a part hereof nor to
affect the meaning thereof.

 

 

-8-

 

 

14.7 Successors
and Assigns. This Agreement is intended to bind and inure to
the benefit of and be enforceable by Executive and the Company, and
their respective successors, assigns, heirs, executors and
administrators, except that Executive may not assign any of
Executive’s duties hereunder, Executive may not assign any of
Executive’s rights hereunder without the written consent of
the Company, which shall not be withheld unreasonably, and the
Company may not assign this Agreement, except to an Affiliate (as
defined in the Plan) or to a successor in connection with a Change
in Control.

 

14.8 Tax
Withholding. All payments and awards contemplated or made
pursuant to this Agreement will be subject to withholdings of
applicable taxes in compliance with all relevant laws and
regulations of all appropriate government authorities. Executive
acknowledges and agrees that the Company has neither made any
assurances nor any guarantees concerning the tax treatment of any
payments or awards contemplated by or made pursuant to this
Agreement. Executive has had the opportunity to retain a tax and
financial advisor and fully understands the tax and economic
consequences of all payments and awards made pursuant to this
Agreement.

 

14.9 Choice
of Law. All questions concerning the construction, validity
and interpretation of this Agreement will be governed by the laws
of the State of California.

 

 

 

-9-

 

 

In Witness
Whereof, this Agreement shall be effective as of the
Effective Date.

 

 

	
 

	

 

ChromaDex
Corporation

 

By: /s/ Frank
Jaksch,
Jr.                                                                 

      
FRANK JAKSCH, JR.

      
Chief Executive Officer

 

 

Executive

 

/s/
Kevin M. Farr 

KEVIN M. FARR

 

 

 

 

 

 

 

 

-10-EX-10.1

 Exhibit 10.1 
  

 
  

TAX RECEIVABLE AGREEMENT 

by and among 
 SWITCH, INC.

 SWITCH, LTD. and 

THE MEMBERS OF SWITCH, LTD. 

FROM TIME TO TIME PARTY HERETO 

Dated as of October 5, 2017 
  

 
  

 CONTENTS 
  

							
	 	 	 	  	Page	 
	 Article I. DEFINITIONS
	  	 	2	 
			
	 Section 1.1
	 	 Definitions
	  	 	2	 
	 Section 1.2
	 	 Rules of Construction
	  	 	9	 
		
	 Article II. DETERMINATION OF REALIZED TAX BENEFIT
	  	 	10	 
			
	 Section 2.1
	 	 Basis Adjustments; Switch, Ltd. 754 Election
	  	 	10	 
	 Section 2.2
	 	 Basis Schedules
	  	 	11	 
	 Section 2.3
	 	 Tax Benefit Schedules.
	  	 	11	 
	 Section 2.4
	 	 Procedures; Amendments
	  	 	12	 
		
	 Article III. TAX BENEFIT PAYMENTS
	  	 	13	 
			
	 Section 3.1
	 	 Timing and Amount of Tax Benefit Payments
	  	 	13	 
	 Section 3.2
	 	 No Duplicative Payments
	  	 	16	 
	 Section 3.3
	 	 Pro-Ration of Payments as Between the Members
	  	 	16	 
		
	 Article IV. TERMINATION
	  	 	17	 
			
	 Section 4.1
	 	 Early Termination of Agreement; Breach of Agreement
	  	 	17	 
	 Section 4.2
	 	 Early Termination Notice
	  	 	18	 
	 Section 4.3
	 	 Payment upon Early Termination
	  	 	19	 
		
	 Article V. SUBORDINATION AND LATE PAYMENTS
	  	 	20	 
			
	 Section 5.1
	 	 Subordination
	  	 	20	 
	 Section 5.2
	 	 Late Payments by the Corporation
	  	 	20	 
		
	 Article VI. TAX MATTERS; CONSISTENCY; COOPERATION
	  	 	20	 
			
	 Section 6.1
	 	 Participation in the Corporation’s and Switch, Ltd.’s Tax Matters
	  	 	20	 
	 Section 6.2
	 	 Consistency
	  	 	20	 
	 Section 6.3
	 	 Cooperation
	  	 	21	 
		
	 Article VII. MISCELLANEOUS
	  	 	21	 
			
	 Section 7.1
	 	 Notices
	  	 	21	 
	 Section 7.2
	 	 Counterparts
	  	 	22	 
	 Section 7.3
	 	 Entire Agreement; No Third Party Beneficiaries
	  	 	22	 
	 Section 7.4
	 	 Governing Law
	  	 	22	 
	 Section 7.5
	 	 Severability
	  	 	22	 
	 Section 7.6
	 	 Assignments; Amendments; Successors; No Waiver
	  	 	23	 
	 Section 7.7
	 	 Titles and Subtitles
	  	 	24	 

  
 i 

							
	 Section 7.8
	 	 Resolution of Disputes
	  	 	24	 
	 Section 7.9
	 	 Reconciliation
	  	 	25	 
	 Section 7.10
	 	 Withholding
	  	 	26	 
	 Section 7.11
	 	 Admission of the Corporation into a Consolidated Group; Transfers of Corporate Assets
	  	 	26	 
	 Section 7.12
	 	 Confidentiality
	  	 	26	 
	 Section 7.13
	 	 Change in Law
	  	 	27	 
	 Section 7.14
	 	 Interest Rate Limitation
	  	 	27	 
	 Section 7.15
	 	 Independent Nature of Rights and Obligations
	  	 	28	 
	 Section 7.16
	 	 Effectiveness
	  	 	28	 

 Exhibits 

Exhibit A        -        Form of Joinder Agreement 

  
 ii 

 TAX RECEIVABLE AGREEMENT 

This TAX RECEIVABLE AGREEMENT (this “Agreement”), dated as of October 5, 2017, is hereby entered into by and among
Switch, Inc., a Nevada corporation (the “Corporation”), Switch, Ltd., a Nevada limited liability company (“Switch, Ltd.”) and each of the Members from time to time party hereto. Capitalized terms used but not
otherwise defined herein have the respective meanings set forth in Section 1.1. 
 RECITALS 

WHEREAS, Switch, Ltd. is treated as a partnership for U.S. federal income tax purposes; 

WHEREAS, each of the members of Switch, Ltd. as of the date hereof other than the Corporation (such members, together with each other Person
who becomes party hereto by satisfying the Joinder Requirement, the “Members”) owns common limited liability company interests in Switch, Ltd. (the “Units”); 

WHEREAS, the Corporation is the managing member of Switch, Ltd., and will be the registered owner of Units; 

WHEREAS, on the date hereof, the Corporation agreed to issue shares of its Class A common stock, par value $0.001 per share (the
“Class A Common Stock”) to certain purchasers in an initial public offering of its Class A Common Stock (the “IPO”); 

WHEREAS, the Corporation will acquire newly issued Units directly from Switch, Ltd. using proceeds from the IPO; 

WHEREAS, on and after the date hereof, pursuant to Article XI of the Operating Agreement, each Member has the right, in its sole discretion,
from time to time to have all or a portion its Units redeemed by Switch, Ltd. for, at the Corporation’s election, cash or Class A Common Stock (a “Redemption”); provided that, at the election of the Corporation in
its sole discretion, the Corporation may effect a direct exchange of such cash or shares of Class A Common Stock for such Units (a “Direct Exchange”); 

WHEREAS, Switch, Ltd. will have in effect an election under Section 754 of the Code as provided under Section 2.1(b) for the
Taxable Year in which any Exchange occurs, which election will result in an adjustment to the Corporation’s share of the tax basis of the assets owned by Switch, Ltd. and its relevant subsidiaries (including any subsidiaries that are classified
as partnerships for U.S. federal income tax purposes and have made an election under Section 754 of the Code) (Switch, Ltd. and its relevant subsidiaries, the “Switch, Ltd. Group”), as of the date of the Exchange, with a
consequent result on the taxable income subsequently derived therefrom; and 
 WHEREAS, the parties to this Agreement desire to provide for
certain payments and make certain arrangements with respect to any tax benefits to be derived by the Corporation as the result of Exchanges and making payments under this Agreement. 

 NOW, THEREFORE, in consideration of the foregoing and the respective covenants and agreements set
forth herein, and intending to be legally bound hereby, the parties hereto agree as follows: 
 ARTICLE I. 

DEFINITIONS 
 Section 1.1
Definitions. As used in this Agreement, the terms set forth in this Article I shall have the following meanings (such meanings to be equally applicable to both (i) the singular and plural and (ii) the active and passive forms
of the terms defined). 
 “10% Member” is defined in Section 6.1 of this Agreement. 

“Actual Interest Amount” is defined in Section 3.1(b)(vii) of this Agreement. 

“Actual Tax Liability” means, with respect to any Taxable Year, the liability for Covered Taxes of the Corporation
(a) appearing on Tax Returns of the Corporation for such Taxable Year and (b) if applicable, determined in accordance with a Determination (including interest imposed in respect thereof under applicable law). 

“Advisory Firm” means an accounting firm that is nationally recognized as being expert in Covered Tax matters, selected by
the Corporation. 
 “Affiliate” means, with respect to any Person, any other Person that directly or indirectly, through
one or more intermediaries, Controls, is Controlled by, or is under common Control with, such first Person. 
 “Agreed
Rate” means LIBOR plus 100 basis points. 
 “Agreement” is defined in the preamble. 

“Amended Schedule” is defined in Section 2.4(b) of this Agreement. 

“Attributable” is defined in Section 3.1(b)(i) of this Agreement. 

“Audit Committee” means the audit committee of the Board. 

“Basis Adjustment” means the increase or decrease to, or the Corporation’s share of, the tax basis of the Reference
Assets (i) under Section 734(b), 743(b), 754 and 755 of the Code and, in each case, the comparable sections of U.S. state and local tax law (in situations where, following an Exchange, Switch, Ltd. remains in existence as an entity for tax
purposes) and (ii) under Sections 732 and 1012 of the Code and, in each case, the comparable sections of U.S. state and local tax law (in situations where, as a result of one or more Exchanges, Switch, Ltd. becomes an entity that is disregarded
as separate from its owner for tax purposes), in each case, as a result of any Exchange and any payments made under this Agreement. Notwithstanding any other provision of this Agreement, the amount of any Basis Adjustment resulting from an Exchange
of one or more Units shall be determined without regard to any Pre-Exchange Transfer of such Units and as if any such Pre-Exchange Transfer had not occurred. 

  
 2 

 “Basis Schedule” is defined in Section 2.2 of this Agreement. 

“Beneficial Owner” means, with respect to any security, a Person who directly or indirectly, through any contract,
arrangement, understanding, relationship or otherwise, has or shares: (i) voting power, which includes the power to vote, or to direct the voting of, with respect to such security and/or (ii) investment power, which includes the power to
dispose of, or to direct the disposition of, such security. 
 “Board” means the Board of Directors of the Corporation.

 “Business Day” means any day excluding Saturday, Sunday and any day that is a legal holiday under the laws of the State
of New York or is a day on which banking institutions located in New York are closed. 
 “Change of Control” means the
occurrence of any of the following events: 
 (1) any “person” or “group” (within the meaning of Sections
13(d) and 14(d) of the Exchange Act (excluding any “person” or “group” who, on the date of the consummation of the IPO, is the Beneficial Owner of securities of the Corporation representing more than fifty percent (50%) of
the combined voting power of the Corporation’s then outstanding voting securities)) becomes the Beneficial Owner of securities of the Corporation representing more than fifty percent (50%) of the combined voting power of the
Corporation’s then outstanding voting securities; 
 (2) the shareholders of the Corporation approve a plan of complete
liquidation or dissolution of the Corporation or there is consummated an agreement or series of related agreements for the sale or other disposition, directly, or indirectly, by the Corporation of all or substantially all of the Corporation’s
assets (including a sale of assets of Switch, Ltd.), other than such sale or other disposition by the Corporation of all or substantially all of the Corporation’s assets to an entity at least fifty percent (50%) of the combined voting
power of the voting securities of which are owned by shareholders of the Corporation in substantially the same proportions as their ownership of the Corporation immediately prior to such sale; 

(3) there is consummated a merger or consolidation of the Corporation or any direct or indirect subsidiary of the Corporation
(including Switch, Ltd.) with any other corporation or other entity, and, immediately after the consummation of such merger or consolidation, either (x) the board of directors of the Corporation immediately prior to the merger or consolidation
does not constitute at least a majority of the board of directors of the company surviving the merger or, if the surviving company is a subsidiary, the ultimate parent thereof, or (y) all of the Persons who were the respective Beneficial Owners
of the voting securities of the Corporation immediately prior to such merger or consolidation do not Beneficially Own, directly or indirectly, more than 50% of the combined voting power of the then outstanding voting securities of the Person
resulting from such merger or consolidation; 
 (4) the following individuals cease for any reason to constitute a majority
of the number of directors of the Corporation then serving: individuals who were directors of 

  
 3 

 
the Corporation on the date of the consummation of the IPO and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election
contest, including but not limited to a consent solicitation, relating to the election of directors of the Corporation) whose appointment or election by the board of directors of the Corporation or nomination for election by the Corporation’s
shareholders was approved or recommended by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors of the Corporation on the date of the consummation of the IPO or whose appointment, election or
nomination for election was previously so approved or recommended by the directors referred to in this clause 4; or 
 (5) a
“change of control” or similar defined term in any agreement governing indebtedness of Switch, Ltd. or any of its Subsidiaries with aggregate principal amount or aggregate commitments outstanding in excess of $25,000,000. 

Notwithstanding the foregoing, a “Change of Control” shall not be deemed to have occurred by virtue of the consummation of any
transaction or series of integrated transactions immediately following which the record holders of the Class A Common Stock, Class B common stock and Class C Common Stock of the Corporation immediately prior to such transaction or series of
transactions continue to have substantially the same proportionate ownership in and voting control over, and own substantially all of the shares of, an entity which owns all or substantially all of the assets of the Corporation immediately following
such transaction or series of transactions. 
 “Code” means the U.S. Internal Revenue Code of 1986, as amended. 

“Corporation Letter” means a letter prepared by the Corporation in connection with the performance of its obligations under
this Agreement, which states that the relevant Schedules, notices or other information to be provided by the Corporation to the Members, along with all supporting schedules and work papers, were prepared in a manner that is consistent with the terms
of this Agreement and, to the extent not expressly provided in this Agreement, on a reasonable basis in light of the facts and law in existence on the date such Schedules, notices or other information were delivered by the Corporation to the
Members. 
 “Control” means the possession, direct or indirect, of the power to direct or cause the direction of the
management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. 

“Corporation” is defined in the preamble to this Agreement. 

“Covered Taxes” means any and all U.S. federal, state, local and foreign taxes, assessments or similar charges that are based
on or measured with respect to net income or profits, whether as an exclusive or an alternative basis (including for the avoidance of doubt, franchise taxes), and any interest imposed in respect thereof under applicable law. 

“Cumulative Net Realized Tax Benefit” is defined in Section 3.1(b)(iii) of this Agreement. 

  
 4 

 “Default Rate” means LIBOR plus 500 basis points. 

“Default Rate Interest” is defined in Section 3.1(b)(ix) of this Agreement. 

“Determination” shall have the meaning ascribed to such term in Section 1313(a) of the Code or similar provision of U.S.
state, local or foreign tax law, as applicable, or any other event (including the execution of IRS Form 870-AD) that finally and conclusively establishes the amount of any liability for tax. 

“Direct Exchange” is defined in the recitals to this Agreement. 

“Dispute” is defined in Section 7.8(a) of this Agreement. 

“Early Termination Effective Date” means the date of an Early Termination Notice for purposes of determining the Early
Termination Payment. 
 “Early Termination Notice” is defined in Section 4.2 of this Agreement. 

“Early Termination Payment” is defined in Section 4.3(b) of this Agreement. 

“Early Termination Rate” means the Agreed Rate. 

“Early Termination Reference Date” is defined in Section 4.2 of this Agreement. 

“Early Termination Schedule” is defined in Section 4.2 of this Agreement. 

“Exchange” means any (i) Direct Exchange, (ii) Redemption or (iii) any transaction using proceeds of the IPO
or any distribution by Switch, Ltd. that in either case results in an adjustment under Section 743(b) of the Code with respect to the Switch, Ltd. Group. 

“Exchange Act” means the Securities and Exchange Act of 1934, as amended, or any successor provisions thereto. 

“Exchange Date” means the date of any Exchange. 

“Expert” is defined in Section 7.9 of this Agreement. 

“Extension Rate Interest” is defined in Section 3.1(b)(viii) of this Agreement. 

“Final Payment Date” means any date on which a payment is required to be made pursuant to this Agreement. For the avoidance
of doubt, the Final Payment Date in respect of a Tax Benefit Payment is determined pursuant to Section 3.1(a) of this Agreement. 

“Hypothetical Tax Liability” means, with respect to any Taxable Year, the hypothetical liability of the Corporation that
would arise in respect of Covered Taxes, using the same methods, elections, conventions and similar practices used on the actual relevant Tax Returns of the Corporation but (i) calculating depreciation, amortization, or other similar
deductions, or otherwise calculating any items of income, gain, or loss, using the Corporation’s share of the Non-Adjusted Tax Basis as reflected on the Basis Schedule, including amendments thereto for

  
 5 

 
such Taxable Year and (ii) excluding any deduction attributable to Imputed Interest for such Taxable Year. For the avoidance of doubt, the Hypothetical Tax Liability shall be determined
without taking into account the carryover or carryback of any tax item (or portions thereof) that is attributable to any of the items described in clauses (i) and (ii) of the previous sentence. 

“Imputed Interest” is defined in Section 3.1(b)(vi) of this Agreement. 

“Independent Directors” means the members of the Board who are “independent” under the standards set forth in Rule
10A-3 promulgated under the U.S. Securities Exchange Act of 1933, as amended, and the corresponding rules of the applicable exchange on which the Class A Common Stock is traded or quoted. 

“IPO” is defined in the recitals to this Agreement. 

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

“Joinder” means a joinder to this Agreement, in form and substance substantially similar to Exhibit A to this
Agreement. 
 “Joinder Requirement” is defined in Section 7.6(a) of this Agreement. 

“LIBOR” means during any period, a rate per annum equal to the ICE LIBOR rate for a period of one month (“ICE
LIBOR”), as published on the applicable Bloomberg screen page (or such other commercially available source providing quotations of ICE LIBOR as may be designated by the Corporation from time to time) at approximately 11:00 a.m., London
time, two (2) Business Days prior to the commencement of such period, for dollar deposits (for delivery on the first day of such period) with a term equivalent to such period. 

“Market Value” shall mean the Common Unit Redemption Price, as defined in the Operating Agreement. 

“Member Advisory Firm” means an accounting firm that is nationally recognized as being expert in Covered Tax matters,
selected by the applicable Member; provided that such accounting firm shall be different from the accounting firm serving as the Advisory Firm. 

“Members” is defined in the recitals to this Agreement. 

“Net Tax Benefit” is defined in Section 3.1(b)(ii) of this Agreement. 

“Non-Adjusted Tax Basis” means, with respect to any Reference Asset at any time, the tax basis that such asset would have had
at such time if no Basis Adjustments had been made. 
 “Objection Notice” is defined in Section 2.4(a)(i) of
this Agreement. 
 “Operating Agreement” means that certain Fifth Amended and Restated Operating Agreement of Switch, Ltd.,
dated as of the date hereof, as such agreement may be further amended, restated, supplemented and/or otherwise modified from time to time. 

  
 6 

 “Parties” means the parties named on the signature pages to this agreement and
each additional party that satisfies the Joinder Requirement, in each case with their respective successors and assigns. 

“Person” means any individual, corporation, firm, partnership, joint venture, limited liability company, estate, trust,
business association, organization, governmental entity or other entity. 
 “Pre-Exchange Transfer” means any transfer of
one or more Units (including upon the death of a Member or upon the issuance of Units resulting from the exercise of an option to acquire such Units) (i) that occurs after the IPO but prior to an Exchange of such Units and (ii) to which
Section 743(b) of the Code applies. 
 “Realized Tax Benefit” is defined in Section 3.1(b)(iv) of this
Agreement. 
 “Realized Tax Detriment” is defined in Section 3.1(b)(v) of this Agreement. 

“Reconciliation Dispute” is defined in Section 7.9 of this Agreement. 

“Reconciliation Procedures” is defined in Section 2.4(a) of this Agreement. 

“Redemption” has the meaning in the recitals to this Agreement. 

“Reference Asset” means any asset of Switch, Ltd. or any of its successors or assigns, and whether held directly by Switch,
Ltd. or indirectly by Switch, Ltd. through a member of the Switch, Ltd. Group, at the time of an Exchange. A Reference Asset also includes any asset the tax basis of which is determined, in whole or in part, by reference to the tax basis of an asset
that is described in the preceding sentence, including “substituted basis property” within the meaning of Section 7701(a)(42) of the Code. 

“Schedule” means any of the following: (i) a Basis Schedule, (ii) a Tax Benefit Schedule, or (iii) the Early
Termination Schedule, and, in each case, any amendments thereto. 
 “Senior Obligations” is defined in
Section 5.1 of this Agreement. 
 “Subsidiary” means, with respect to any Person and as of any determination
date, any other Person as to which such first Person (i) owns, directly or indirectly, or otherwise controls, more than 50% of the voting power or other similar interests of such other Person or (ii) is the sole general partner interest,
or managing member or similar interest, of such Person. 
 “Subsidiary Stock” means any stock or other equity interest in
any subsidiary entity of the Corporation that is treated as a corporation for U.S. federal income tax purposes. 
 “Supermajority
Member Approval” means written approval by Members whose rights under this Agreement are attributable to at least seventy percent (70%) of the Units outstanding (and not held by the Corporation) immediately after the IPO (as
appropriately adjusted for any subsequent changes to the number of outstanding Units). For purposes of this definition, a Member’s rights under this Agreement shall be attributed to Units as of the time of a

  
 7 

 
determination of Supermajority Member Approval. For the avoidance of doubt, (i) an Exchanged Unit shall be attributed only to the Member entitled to receive Tax Benefit Payments with respect
to such Exchanged Unit (i.e., the Exchangor or the assignee of its rights hereunder) and (ii) an outstanding Unit that has not yet been Exchanged shall be attributed only to the Member entitled to receive Tax Benefit Payments upon the Exchange
of such Unit (i.e., the member of Switch, Ltd. or the assignee of its rights hereunder). 
 “Switch, Ltd.” is defined in
the recitals to this Agreement. 
 “Switch, Ltd. Group” is defined in the recitals to this Agreement. 

“Tax Benefit Payment” is defined in Section 3.1(b) of this Agreement. 

“Tax Benefit Schedule” is defined in Section 2.3(a) of this Agreement. 

“Tax Return” means any return, declaration, report or similar statement required to be filed with respect to taxes (including
any attached schedules), including, without limitation, any information return, claim for refund, amended return and declaration of estimated tax. 

“Taxable Year” means a taxable year of the Corporation as defined in Section 441(b) of the Code or comparable section of
U.S. state or local tax law, as applicable (and, therefore, for the avoidance of doubt, may include a period of less than 12 months for which a Tax Return is made), ending on or after the closing date of the IPO. 

“Taxing Authority” shall mean any national, federal, state, county, municipal, or local government, or any subdivision,
agency, commission or authority thereof, or any quasi-governmental body, or any other authority of any kind, exercising regulatory or other authority in relation to tax matters. 

“Termination Objection Notice” is defined in Section 4.2 of this Agreement. 

“Treasury Regulations” means the final, temporary, and (to the extent they can be relied upon) proposed regulations under the
Code, as promulgated from time to time (including corresponding provisions and succeeding provisions) as in effect for the relevant taxable period. 

“U.S.” means the United States of America. 

“Units” is defined in the recitals to this Agreement. 

“Valuation Assumptions” shall mean, as of an Early Termination Effective Date, the assumptions that: 

(1) in each Taxable Year ending on or after such Early Termination Effective Date, the Corporation will have taxable income
sufficient to fully use the deductions arising from the Basis Adjustments and the Imputed Interest during such Taxable Year or future Taxable Years (including, for the avoidance of doubt, Basis Adjustments and Imputed Interest that would result from
future Tax Benefit Payments that would be paid in accordance with the Valuation Assumptions) in which such deductions would become available; 

  
 8 

 (2) the U.S. federal, state and local income tax rates that will be in effect for
each such Taxable Year will be those specified for each such Taxable Year by the Code and other law as in effect on the Early Termination Effective Date, except to the extent any change to such tax rates for such Taxable Year have already been
enacted into law; 
 (3) all taxable income of the Corporation will be subject to the maximum applicable tax rates for each
Covered Tax throughout the relevant period; 
 (4) any loss carryovers or carrybacks generated by any Basis Adjustment or
Imputed Interest (including such Basis Adjustment and Imputed Interest generated as a result of payments under this Agreement) and available as of the date of the Early Termination Schedule will be used by the Corporation ratably in each Taxable
Year from the date of the Early Termination Schedule through the scheduled expiration date of such loss carryovers or carrybacks; by way of example, if on the date of the Early Termination Schedule the Corporation had $100 of net operating losses
with a carryforward period of ten (10) years, $10 of such net operating losses would be used in each of the ten (10) consecutive Taxable Years beginning in the Taxable Year of such Early Termination Schedule; 

(5) any non-amortizable assets (other than Subsidiary Stock) will be disposed of on the fifteenth anniversary of the earlier of
(i) the applicable Basis Adjustment and (ii) the Early Termination Effective Date; 
 (6) any Subsidiary Stock will
be deemed never to be disposed of except if Subsidiary Stock is directly disposed of in the Change of Control; 
 (7) if, on
the Early Termination Effective Date, any Member has Units that have not been Exchanged, then such Units shall be deemed to be Exchanged for the Market Value of the shares of Class A Common Stock that would be received by such Member if such
Units had been Exchanged on the Early Termination Effective Date, and such Member shall be deemed to receive the amount of cash such Member would have been entitled to pursuant to Section 4.3(a) had such Units actually been Exchanged on
the Early Termination Effective Date and 
 (8) any payment obligations pursuant to this Agreement will be satisfied on the
date that any Tax Return to which such payment obligation relates is required to be filed excluding any extensions. 
 Section 1.2 Rules
of Construction. Unless otherwise specified herein: 
 (a) The meanings of defined terms are equally applicable to the singular and
plural forms of the defined terms. 

  
 9 

 (b) For purposes of interpretation of this Agreement: 

(i) The words “herein,” “hereto,” “hereof” and “hereunder” and words of similar import
when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision thereof. 
 (ii)
References in this Agreement to a Schedule, Article, Section, clause or sub-clause refer to the appropriate Schedule to, or Article, Section, clause or subclause in, this Agreement. 

(iii) References in this Agreement to dollars or “$” refer to the lawful currency of the United States of America.

 (iv) The term “including” is by way of example and not limitation. 

(v) The term “documents” includes any and all instruments, documents, agreements, certificates, notices, reports,
financial statements and other writings, however evidenced, whether in physical or electronic form. 
 (c) In the computation of periods of
time from a specified date to a later specified date, the word “from” means “from and including;” the words “to” and “until” each mean “to but excluding;” and the word “through” means
“to and including.” 
 (d) Section headings herein are included for convenience of reference only and shall not affect the
interpretation of this Agreement. 
 (e) Unless otherwise expressly provided herein, (a) references to organization documents (including
the Operating Agreement), agreements (including this Agreement) and other contractual instruments shall be deemed to include all subsequent amendments, restatements, extensions, supplements and other modifications thereto, but only to the extent
that such amendments, restatements, extensions, supplements and other modifications are permitted hereby; and (b) references to any law (including the Code and the Treasury Regulations) shall include all statutory and regulatory provisions
consolidating, amending, replacing, supplementing or interpreting such Law. 
 ARTICLE II. 

DETERMINATION OF REALIZED TAX BENEFIT 

Section 2.1 Basis Adjustments; Switch, Ltd. 754 Election. 

(a) Basis Adjustments. The Parties acknowledge and agree that (A) each Redemption shall be treated as a direct purchase of Units by
the Corporation from the applicable Member pursuant to Section 707(a)(2)(B) of the Code and (B) each Exchange will give rise to Basis Adjustments. In connection with any Exchange, the Parties acknowledge and agree that pursuant to
applicable law the Corporation’s share of the basis in the Reference Assets shall be increased (or decreased) by the excess (or deficiency), if any, of (A) the sum of (x) the Market Value of Class A Common Stock or the cash
transferred to a Member pursuant to an Exchange as payment for the Units, (y) the amount of payments made pursuant to this Agreement with respect to such Exchange and (z) the amount of liabilities allocated to the Units acquired pursuant
to the Exchange, over (B) the Corporation’s proportionate share of the basis of the Reference Assets 

  
 10 

 
immediately after the Exchange attributable to the Units exchanged, determined as if each relevant member of the Switch, Ltd. Group (including, for the avoidance of doubt, Switch, Ltd.) remains
in existence as an entity for tax purposes and no member of the Switch, Ltd. Group (including, for the avoidance of doubt, Switch, Ltd.) made the election provided by Section 754 of the Code. For the avoidance of doubt, payments made under this
Agreement shall not be treated as resulting in a Basis Adjustment to the extent such payments are treated as Imputed Interest or Default Rate Interest. Further, the Parties intend that Basis Adjustments be calculated in accordance with Treasury
Regulations Section 1.743-1. 
 (b) Switch, Ltd. Section 754 Election. In its capacity as the sole managing member of
Switch, Ltd., the Corporation will ensure that, on and after the date hereof and continuing throughout the term of this Agreement, Switch, Ltd. (including any successors to Switch, Ltd. as a result of terminations occurring pursuant to
Section 708(b)(1)(B) of the Code) will have in effect an election under Section 754 of the Code (and under any similar provisions of applicable U.S. state or local law) for each Taxable Year. 

Section 2.2 Basis Schedules. Within one hundred fifty (150) calendar days after the filing of the U.S. federal income Tax Return
of the Corporation for each relevant Taxable Year, the Corporation shall deliver to the Members a schedule (the “Basis Schedule”) that shows, in reasonable detail as necessary in order to understand the calculations performed under
this Agreement: (a) the Non-Adjusted Tax Basis of the Reference Assets as of each applicable Exchange Date; (b) the Basis Adjustments with respect to the Reference Assets as a result of the relevant Exchanges effected in such Taxable Year,
calculated (I) in the aggregate (including, for the avoidance of doubt, Exchanges by all Members) and (II) solely with respect to Exchanges by the applicable Member; (c) the period (or periods) over which the Reference Assets are
amortizable and/or depreciable; and (d) the period (or periods) over which each Basis Adjustment is amortizable and/or depreciable. The Basis Schedule will become final and binding on the Parties pursuant to the procedures set forth in
Section 2.4(a) and may be amended by the Parties pursuant to the procedures set forth in Section 2.4(b). 

Section 2.3 Tax Benefit Schedules. 

(a) Tax Benefit Schedule. Within one hundred fifty (150) calendar days after the filing of the U.S. federal income Tax Return of
the Corporation for any Taxable Year in which there is a Realized Tax Benefit or Realized Tax Detriment, the Corporation shall provide to the Members a schedule showing, in reasonable detail, the calculation of the Realized Tax Benefit or Realized
Tax Detriment for such Taxable Year (a “Tax Benefit Schedule”). The Tax Benefit Schedule will become final and binding on the Parties pursuant to the procedures set forth in Section 2.4(a), and may be amended by the
Parties pursuant to the procedures set forth in Section 2.4(b). 
 (b) Applicable Principles. Subject to the provisions of
this Agreement, the Realized Tax Benefit or Realized Tax Detriment for each Taxable Year is intended to measure the decrease or increase in the Actual Tax Liability of the Corporation for such Taxable Year attributable to the Basis Adjustments and
Imputed Interest, as determined using a “with and without” methodology described in Section 2.4(a). Carryovers or carrybacks of any tax item attributable to any Basis Adjustment or Imputed Interest shall be considered to be
subject to the 

  
 11 

 
rules of the Code and the Treasury Regulations or the appropriate provisions of U.S. state and local tax law, as applicable, governing the use, limitation and expiration of carryovers or
carrybacks of the relevant type. If a carryover or carryback of any tax item includes a portion that is attributable to a Basis Adjustment or Imputed Interest (a “TRA Portion”) and another portion that is not (a “Non-TRA
Portion”), such portions shall be considered to be used in accordance with the “with and without” methodology so that: (i) the amount of any Non-TRA Portion is deemed utilized first, followed by the amount of any TRA Portion
(with the TRA Portion being applied on a proportionate basis consistent with the provisions of Section 3.3(a)); and (ii) in the case of a carryback of a Non-TRA Portion, such carryback shall not affect the original “with and
without” calculation made in the prior Taxable Year. The Parties agree that, subject to the second to last sentence of Section 2.1(a), all Tax Benefit Payments attributable to an Exchange will be treated as subsequent upward
purchase price adjustments that give rise to further Basis Adjustments for the Corporation beginning in the Taxable Year of payment, and as a result, such additional Basis Adjustments will be incorporated into such Taxable Year continuing for future
Taxable Years until any incremental Basis Adjustment benefits with respect to a Tax Benefit Payment equals an immaterial amount. 
 Section
2.4 Procedures; Amendments. 
 (a) Procedures. Each time the Corporation delivers an applicable Schedule to the Members under
this Agreement, including any Amended Schedule delivered pursuant to Section 2.4(b), but excluding any Early Termination Schedule or amended Early Termination Schedule delivered pursuant to the procedures set forth in
Section 4.2, the Corporation shall also: (x) deliver supporting schedules and work papers, as determined by the Corporation or as reasonably requested by any Member, that provide a reasonable level of detail regarding the data and
calculations that were relevant for purposes of preparing the Schedule; (y) deliver a Corporation Letter supporting such Schedule; and (z) allow the Members and their advisors to have reasonable access to the appropriate representatives,
as determined by the Corporation or as reasonably requested by the Members, at the Corporation and the Advisory Firm in connection with a review of such Schedule. Without limiting the generality of the preceding sentence, the Corporation shall
ensure that any Tax Benefit Schedule that is delivered to the Members, along with any supporting schedules and work papers, provides a reasonably detailed presentation of the calculation of the Actual Tax Liability of the Corporation for the
relevant Taxable Year (the “with” calculation) and the Hypothetical Tax Liability of the Corporation for such Taxable Year (the “without” calculation), and identifies any material assumptions or operating procedures or principles
that were used for purposes of such calculations. An applicable Schedule or amendment thereto shall become final and binding on the Parties thirty (30) calendar days from the date on which the Members first received the applicable Schedule or
amendment thereto unless: 
 (i) a Member within thirty (30) calendar days after receiving the applicable Schedule or
amendment thereto, provides the Corporation with (A) written notice of a material objection to such Schedule that is made in good faith and that sets forth in reasonable detail such Member’s material objection (an “Objection
Notice”) and (B) a letter from a Member Advisory Firm in support of such Objection Notice; or 

  
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 (ii) each Member provides a written waiver of its right to deliver an Objection
Notice within the time period described in clause (i) above, in which case such Schedule or amendment thereto becomes binding on the date the waiver from all Members is received by the Corporation. 

In the event that a Member timely delivers an Objection Notice pursuant to clause (i) above, and if the Parties, for any reason, are unable to
successfully resolve the issues raised in the Objection Notice within thirty (30) calendar days after receipt by the Corporation of the Objection Notice, the Corporation and the Member shall employ the reconciliation procedures as described in
Section 7.9 of this Agreement (the “Reconciliation Procedures”). For the avoidance of doubt, and notwithstanding anything to the contrary herein, the expense of preparing and obtaining the letter from a Member Advisory
Firm referenced in clause (i) above shall be borne solely by the relevant Member and the Corporation shall have no liability with respect to such letter or any of the expenses associated with its preparation and delivery. 

(b) Amended Schedule. The applicable Schedule for any Taxable Year may be amended from time to time by the Corporation: (i) in
connection with a Determination affecting such Schedule; (ii) to correct inaccuracies in the Schedule identified as a result of the receipt of additional factual information relating to a Taxable Year after the date the Schedule was originally
provided to the Member; (iii) to comply with an Expert’s determination under the Reconciliation Procedures applicable to this Agreement; (iv) to reflect a change in the Realized Tax Benefit or Realized Tax Detriment for such Taxable
Year attributable to a carryback or carryforward of a loss or other Tax item to such Taxable Year; (v) to reflect a change in the Realized Tax Benefit or Realized Tax Detriment for such Taxable Year attributable to an amended Tax Return filed
for such Taxable Year; or (vi) to adjust a Basis Schedule to take into account any Tax Benefit Payments made pursuant to this Agreement (any such Schedule, an “Amended Schedule”). 

ARTICLE III. 
 TAX
BENEFIT PAYMENTS 
 Section 3.1 Timing and Amount of Tax Benefit Payments. 

(a) Timing of Payments. Subject to Sections 3.2 and 3.3, within three (3) Business Days following the date on which
each Tax Benefit Schedule that is required to be delivered by the Corporation to the Members pursuant to Section 2.3(a) of this Agreement becomes final in accordance with Section 2.4(a) of this Agreement (such date, the
“Final Payment Date” in respect of any Tax Benefit Payment), the Corporation shall pay to each relevant Member the Tax Benefit Payment as determined pursuant to Section 3.1(b). Each such Tax Benefit Payment shall be made
by wire transfer of immediately available funds to the bank account previously designated by such Members or as otherwise agreed by the Corporation and such Members. For the avoidance of doubt, the Members shall not be required under any
circumstances to return any portion of any Tax Benefit Payment previously paid by the Corporation to the Members (including any portion of any Early Termination Payment). 

  
 13 

 (b) Amount of Payments. For purposes of this Agreement, a “Tax Benefit
Payment” with respect to any Member means an amount, not less than zero, equal to the sum of: (i) the Net Tax Benefit that is Attributable to such Member and (ii) the Actual Interest Amount. 

(i) Attributable. A Net Tax Benefit is “Attributable” to a Member to the extent that it is derived from
any Basis Adjustment or Imputed Interest that is attributable to an Exchange undertaken by or with respect to such Member. 

(ii) Net Tax Benefit. The “Net Tax Benefit” for a Taxable Year equals the amount of the excess, if any,
of (x) 85% of the Cumulative Net Realized Tax Benefit Attributable to such Member as of the end of such Taxable Year over (y) the aggregate amount of all Tax Benefit Payments previously made to such Member under this
Section 3.1. For the avoidance of doubt, if the Cumulative Net Realized Tax Benefit as of the end of any Taxable Year is less than the aggregate amount of all Tax Benefit Payments previously made to a Member, such Member shall not be
required to return any portion of any Tax Benefit Payment previously made by the Corporation to such Member. 
 (iii)
Cumulative Net Realized Tax Benefit. The “Cumulative Net Realized Tax Benefit” for a Taxable Year equals the cumulative amount of Realized Tax Benefits for all Taxable Years of the Corporation, up to and including such
Taxable Year, net of the cumulative amount of Realized Tax Detriments for the same period. The Realized Tax Benefit and Realized Tax Detriment for each Taxable Year shall be determined based on the most recent Tax Benefit Schedule or Amended
Schedule, if any, in existence at the time of such determination. 
 (iv) Realized Tax Benefit. The “Realized
Tax Benefit” for a Taxable Year equals the excess, if any, of the Hypothetical Tax Liability over the Actual Tax Liability for such Taxable Year. If all or a portion of the Actual Tax Liability for such Taxable Year arises as a result of an
audit or similar proceeding by a Taxing Authority of any Taxable Year, such liability shall not be included in determining the Realized Tax Benefit unless and until there has been a Determination. 

(v) Realized Tax Detriment. The “Realized Tax Detriment” for a Taxable Year equals the excess, if any,
of the Actual Tax Liability over the Hypothetical Tax Liability for such Taxable Year. If all or a portion of the Actual Tax Liability for such Taxable Year arises as a result of an audit or similar proceeding by a Taxing Authority of any Taxable
Year, such liability shall not be included in determining the Realized Tax Detriment unless and until there has been a Determination. 

(vi) Imputed Interest. The principles of Sections 1272, 1274, or 483 of the Code, as applicable, and the principles of
any similar provision of U.S. state and local law, will apply to cause a portion of any Net Tax Benefit payable by the Corporation to a Member under this Agreement to be treated as imputed interest (“Imputed Interest”). For the
avoidance of doubt, the deduction for the amount of Imputed Interest as determined with respect to any Net Tax Benefit payable by the Corporation to a Member shall be excluded in determining the Hypothetical Tax Liability of the Corporation for
purposes of calculating Realized Tax Benefits and Realized Tax Detriments pursuant to this Agreement. 

  
 14 

 (vii) Actual Interest Amount. The “Actual Interest
Amount” calculated in respect of the Net Tax Benefit for a Taxable Year will equal the amount of any Extension Rate Interest. 

(viii) Extension Rate Interest. The amount of “Extension Rate Interest” calculated in respect of the
Net Tax Benefit (including previously accrued Imputed Interest) for a Taxable Year will equal interest calculated at the Agreed Rate from the due date (without extensions) for filing the U.S. federal income Tax Return of the Corporation for such
Taxable Year until the date on which the Corporation makes a timely Tax Benefit Payment to the Member on or before the Final Payment Date as determined pursuant to Section 3.1(a). 

(ix) Default Rate Interest. In the event that the Corporation does not make timely payment of all or any portion of a
Tax Benefit Payment to a Member on or before the Final Payment Date as determined pursuant to Section 3.1(a), the amount of “Default Rate Interest” calculated in respect of the Net Tax Benefit (including previously
accrued Imputed Interest and Extension Rate Interest) for a Taxable Year will equal interest calculated at the Default Rate from the Final Payment Date for a Tax Benefit Payment as determined pursuant to Section 3.1(a) until the date on
which the Corporation makes such Tax Benefit Payment to such Member. For the avoidance of doubt, any deduction for any Default Rate Interest as determined with respect to any Net Tax Benefit payable by the Corporation to a Member shall be included
in the Hypothetical Tax Liability of the Corporation for purposes of calculating Realized Tax Benefits and Realized Tax Detriments pursuant to this Agreement. 

(x) The Corporation and the Members hereby acknowledge and agree that, as of the date of this Agreement and as of the date of
any future Exchange that may be subject to this Agreement, the aggregate value of the Tax Benefit Payments cannot be reasonably ascertained for U.S. federal income or other applicable tax purposes. 

(c) Interest. The provisions of Section 3.1(b) are intended to operate so that interest will effectively accrue in respect
of the Net Tax Benefit for any Taxable Year as follows: 
 (i) first, at the applicable rate used to determine the amount of
Imputed Interest under the Code (from the relevant Exchange Date until the due date (without extensions) for filing the U.S. federal income Tax Return of the Corporation for such Taxable Year); 

(ii) second, at the Agreed Rate in respect of any Extension Rate Interest (from the due date (without extensions) for filing
the U.S. federal income Tax Return of the Corporation for such Taxable Year until the Final Payment Date for a Tax Benefit Payment as determined pursuant to Section 3.1(a)); and 

(iii) third, at the Default Rate in respect of any Default Rate Interest (from the Final Payment Date for a Tax Benefit Payment
as determined pursuant to Section 3.1(a) until the date on which the Corporation makes the relevant Tax Benefit Payment to a Member). 

  
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 Section 3.2 No Duplicative Payments. It is intended that the provisions of this Agreement
will not result in the duplicative payment of any amount (including interest) that may be required under this Agreement, and the provisions of this Agreement shall be consistently interpreted and applied in accordance with that intent. For purposes
of this Agreement, and also for the avoidance of doubt, no Tax Benefit Payment shall be calculated or made in respect of any estimated tax payments, including, without limitation, any estimated U.S. federal income tax payments. 

Section 3.3 Pro-Ration of Payments as Between the Members. 

(a) Insufficient Taxable Income. Notwithstanding anything in Section 3.1(b) to the contrary, if the aggregate potential
Covered Tax benefit of the Corporation as calculated with respect to the Basis Adjustments and Imputed Interest (in each case, without regard to the Taxable Year of origination) is limited in a particular Taxable Year because the Corporation does
not have sufficient actual taxable income, then the available Covered Tax benefit for the Corporation shall be allocated among the Members in proportion to the respective Tax Benefit Payment that would have been payable if the Corporation had in
fact had sufficient taxable income so that there had been no such limitation. As an illustration of the intended operation of this Section 3.3(a), if the Corporation had $200 of aggregate potential Covered Tax benefits with respect to
the Basis Adjustments and Imputed Interest in a particular Taxable Year (with $50 of such Covered Tax benefits being attributable to Member 1 and $150 of such Covered Tax benefits being attributable to Member 2), such that Member 1 would have
potentially been entitled to a Tax Benefit Payment of $42.50 and Member 2 would have been entitled to a Tax Benefit Payment of $127.50 if the Corporation had $200 of taxable income, and if at the same time the Corporation only had $100 of actual
taxable income in such Taxable Year, then $25 of the aggregate $100 actual Covered Tax benefit for the Corporation for such Taxable Year would be allocated to Member 1 and $75 of the aggregate $100 actual Covered Tax benefit for the Corporation
would be allocated to Member 2, such that Member 1 would receive a Tax Benefit Payment of $21.25 and Member 2 would receive a Tax Benefit Payment of $63.75. 

(b) Late Payments. If for any reason the Corporation is not able to timely and fully satisfy its payment obligations under this
Agreement in respect of a particular Taxable Year, then Default Rate Interest will begin to accrue pursuant to Section 5.2 and the Corporation and other Parties agree that (i) the Corporation shall pay the Tax Benefit Payments due
in respect of such Taxable Year to each Member pro rata in accordance with the principles of Section 3.3(a) and (ii) no Tax Benefit Payment shall be made in respect of any Taxable Year until all Tax Benefit Payments to all Members
in respect of all prior Taxable Years have been made in full. 

  
 16 

 ARTICLE IV. 

TERMINATION 
 Section 4.1
Early Termination of Agreement; Breach of Agreement. 
 (a) Corporation’s Early Termination Right. With the written
approval of a majority of the Independent Directors, the Corporation may completely terminate this Agreement, as and to the extent provided herein, with respect to all amounts payable to the Members pursuant to this Agreement by paying to the
Members the Early Termination Payment; provided that Early Termination Payments may be made pursuant to this Section 4.1(a) only if made to all Members that are entitled to such a payment simultaneously, and provided
further, that the Corporation may withdraw any notice to execute its termination rights under this Section 4.1(a) prior to the time at which any Early Termination Payment has been paid. Upon the Corporation’ payment of the Early
Termination Payment, the Corporation shall not have any further payment obligations under this Agreement, other than with respect to any: (i) prior Tax Benefit Payments that are due and payable under this Agreement but that still remain unpaid
as of the date of the Early Termination Notice; and (ii) current Tax Benefit Payment due for the Taxable Year ending on or including the date of the Early Termination Notice (except to the extent that the amount described in clause (ii) is
included in the calculation of the Early Termination Payment). If an Exchange subsequently occurs with respect to Units for which the Corporation has exercised its termination rights under this Section 4.1(a), the Corporation shall have
no obligations under this Agreement with respect to such Exchange. 
 (b) Acceleration upon Change of Control. In the event of a
Change of Control, all obligations hereunder shall be accelerated and such obligations shall be calculated pursuant to this Article IV as if an Early Termination Notice had been delivered on the closing date of the Change of Control and
utilizing the Valuation Assumptions by substituting the phrase “the closing date of a Change of Control” in each place where the phrase “Early Termination Effective Date” appears. Such obligations shall include, but not be
limited to, (1) the Early Termination Payment calculated as if an Early Termination Notice had been delivered on the closing date of the Change of Control, (2) any Tax Benefit Payments agreed to by the Corporation and the Members as due
and payable but unpaid as of the Early Termination Notice and (3) any Tax Benefit Payments due for any Taxable Year ending prior to, with or including the closing date of a Change of Control (except to the extent that any amounts described in
clauses (2) or (3) are included in the Early Termination Payment). For the avoidance of doubt, Sections 4.2 and 4.3 shall apply to a Change of Control, mutadis mutandi. 

(c) Acceleration upon Breach of Agreement. In the event that the Corporation materially breaches any of its material obligations under
this Agreement, whether as a result of failure to make any payment when due, failure to honor any other material obligation required hereunder, or by operation of law as a result of the rejection of this Agreement in a case commenced under the
Bankruptcy Code or otherwise, then all obligations hereunder shall be accelerated and become immediately due and payable upon notice of acceleration from such Member (provided that in the case of any proceeding under the Bankruptcy Code or other
insolvency statute, such acceleration shall be automatic without any such notice), and such obligations shall be calculated as if an Early Termination Notice had been delivered on the date of such notice of acceleration (or, in the case of any
proceeding under the Bankruptcy Code or 

  
 17 

 
other insolvency statute, on the date of such breach) and shall include, but not be limited to: (i) the Early Termination Payment calculated as if an Early Termination Notice had been
delivered on the date of such acceleration; (ii) any prior Tax Benefit Payments that are due and payable under this Agreement but that still remain unpaid as of the date of such acceleration; and (iii) any current Tax Benefit Payment due
for the Taxable Year ending with or including the date of such acceleration. Notwithstanding the foregoing, in the event that the Corporation breaches this Agreement and such breach is not a material breach of a material obligation, a Member shall
still be entitled to enforce all of its rights otherwise available under this Agreement, including potentially seeking an acceleration of amounts payable under this Agreement. For purposes of this Section 4.1(c), and subject to the
following sentence, the Parties agree that the failure to make any payment due pursuant to this Agreement within thirty (30) days of the relevant Final Payment Date shall be deemed to be a material breach of a material obligation under this
Agreement for all purposes of this Agreement, and that it will not be considered to be a material breach of a material obligation under this Agreement to make a payment due pursuant to this Agreement within thirty (30) days of the relevant
Final Payment Date. Notwithstanding anything in this Agreement to the contrary, it shall not be a material breach of a material obligation of this Agreement if the Corporation fails to make any Tax Benefit Payment within thirty (30) days of the
relevant Final Payment Date to the extent that the Corporation has insufficient funds, or cannot take commercially reasonable actions to obtain sufficient funds, to make such payment; provided that the interest provisions of
Section 5.2 shall apply to such late payment (unless the Corporation does not have sufficient funds to make such payment as a result of limitations imposed by any Senior Obligations, in which case Section 5.2 shall apply, but
the Default Rate shall be replaced by the Agreed Rate). 
 Section 4.2 Early Termination Notice. If the Corporation chooses to
exercise its right of early termination under Section 4.1 above, the Corporation shall deliver to the Members a notice of the Corporation’s decision to exercise such right (an “Early Termination Notice”) and a
schedule (the “Early Termination Schedule”) showing in reasonable detail the calculation of the Early Termination Payment. The Corporation shall also (x) deliver supporting schedules and work papers, as determined by the
Corporation or as reasonably requested by a Member, that provide a reasonable level of detail regarding the data and calculations that were relevant for purposes of preparing the Early Termination Schedule; (y) deliver a Corporation Letter
supporting such Early Termination Schedule; and (z) allow the Members and their advisors to have reasonable access to the appropriate representatives, as determined by the Corporation or as reasonably requested by the Members, at the
Corporation and the Advisory Firm in connection with a review of such Early Termination Schedule. The Early Termination Schedule shall become final and binding on each Party thirty (30) calendar days from the first date on which the Members
received such Early Termination Schedule unless: 
 (i) a Member within thirty (30) calendar days after receiving the
Early Termination Schedule, provides the Corporation with (A) notice of a material objection to such Early Termination Schedule made in good faith and setting forth in reasonable detail such Member’s material objection (a
“Termination Objection Notice”) and (B) a letter from a Member Advisory Firm in support of such Termination Objection Notice; or 

(ii) each Member provides a written waiver of such right of a Termination Objection Notice within the period described in
clause (i) above, in which case such Early Termination Schedule becomes binding on the date the waiver from all Members is received by the Corporation. 

  
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 In the event that a Member timely delivers a Termination Objection Notice pursuant to clause (i) above, and
if the Parties, for any reason, are unable to successfully resolve the issues raised in the Termination Objection Notice within thirty (30) calendar days after receipt by the Corporation of the Termination Objection Notice, the Corporation and
such Member shall employ the Reconciliation Procedures. For the avoidance of doubt, and notwithstanding anything to the contrary herein, the expense of preparing and obtaining the letter from a Member Advisory Firm referenced in clause
(i) above shall be borne solely by such Member and the Corporation shall have no liability with respect to such letter or any of the expenses associated with its preparation and delivery. The date on which the Early Termination Schedule becomes
final in accordance with this Section 4.2 shall be the “Early Termination Reference Date.” 
 Section 4.3
Payment upon Early Termination. 
 (a) Timing of Payment. Within three (3) Business Days after the Early Termination
Reference Date, the Corporation shall pay to each Member an amount equal to the Early Termination Payment for such Member. Such Early Termination Payment shall be made by the Corporation by wire transfer of immediately available funds to a bank
account or accounts designated by the Members or as otherwise agreed by the Corporation and the Members. 
 (b) Amount of Payment. The
“Early Termination Payment” payable to a Member pursuant to Section 4.3(a) shall equal the present value, discounted at the Early Termination Rate as determined as of the Early Termination Reference Date, of all Tax
Benefit Payments that would be required to be paid by the Corporation to such Member, whether payable with respect to Units that were Exchanged prior to the Early Termination Effective Date or on or after the Early Termination Effective Date,
beginning from the Early Termination Effective Date and using the Valuation Assumptions. For the avoidance of doubt, an Early Termination Payment shall be made to each Member, regardless of whether such Member has Exchanged all of its Units as of
the Early Termination Effective Date. 

  
 19 

 ARTICLE V. 

SUBORDINATION AND LATE PAYMENTS 

Section 5.1 Subordination. Notwithstanding any other provision of this Agreement to the contrary, any Tax Benefit Payment or Early
Termination Payment required to be made by the Corporation to the Members under this Agreement shall rank subordinate and junior in right of payment to any principal, interest, or other amounts due and payable in respect of any obligations owed in
respect of secured indebtedness for borrowed money of the Corporation and its Subsidiaries (“Senior Obligations”) and shall rank pari passu in right of payment with all current or future unsecured obligations of the
Corporation that are not Senior Obligations. To the extent that any payment under this Agreement is not permitted to be made at the time payment is due as a result of this Section 5.1 and the terms of the agreements governing Senior
Obligations, such payment obligation nevertheless shall accrue for the benefit of the Members and the Corporation shall make such payments at the first opportunity that such payments are permitted to be made in accordance with the terms of the
Senior Obligations. 
 Section 5.2 Late Payments by the Corporation. The amount of all or any portion of any Tax Benefit Payment or
Early Termination Payment not made to the Members when due under the terms of this Agreement, whether as a result of Section 5.1 and the terms of the Senior Obligations or otherwise, shall be payable together with Default Rate Interest,
which shall accrue beginning on the Final Payment Date and be computed as provided in Section 3.1(b)(ix). 
 ARTICLE VI.

 TAX MATTERS; CONSISTENCY; COOPERATION 

Section 6.1 Participation in the Corporation’s and Switch, Ltd.’s Tax Matters. Except as otherwise provided herein, and
except as provided in Article IX of the Operating Agreement, the Corporation shall have full responsibility for, and sole discretion over, all tax matters concerning the Corporation and Switch, Ltd., including without limitation the preparation,
filing or amending of any Tax Return and defending, contesting or settling any issue pertaining to taxes. Notwithstanding the foregoing, the Corporation shall notify the Members of, and keep them reasonably informed with respect to, the portion of
any tax audit of the Corporation or Switch, Ltd., or any of Switch, Ltd.’s Subsidiaries, the outcome of which is reasonably expected to materially affect the Tax Benefit Payments payable to such Members under this Agreement, and any Member
holding directly and/or indirectly at least ten percent (10%) of the outstanding Units, provided that Switch, Ltd. has knowledge that such Member holds directly and/or indirectly at least ten percent (10%) of the outstanding Units (a
“10% Member”), shall have the right to participate in and to monitor at their own expense (but, for the avoidance of doubt, not to control) any such portion of any such Tax audit; provided that the Corporation shall not settle or
fail to contest any issue pertaining to Covered Taxes that is reasonably expected to materially adversely affect the Members’ rights and obligations under this Agreement without the consent of each 10% Member, such consent not to be
unreasonably withheld or delayed. 
 Section 6.2 Consistency. All calculations and determinations made hereunder, including, without
limitation, any Basis Adjustments, the Schedules, and the determination of any Realized Tax Benefits or Realized Tax Detriments, shall be made in accordance with the elections, methodologies or positions taken by the Corporation and Switch, Ltd. on
their 

  
 20 

 
respective Tax Returns. Each Member shall prepare its Tax Returns in a manner that is consistent with the terms of this Agreement, and any related calculations or determinations that are made
hereunder, including, without limitation, the terms of Section 2.1 of this Agreement and the Schedules provided to the Members under this Agreement. In the event that an Advisory Firm is replaced with another Advisory Firm acceptable to
the Audit Committee, such replacement Advisory Firm shall perform its services under this Agreement using procedures and methodologies consistent with the previous Advisory Firm, unless otherwise required by law or unless the Corporation and all of
the Members agree to the use of other procedures and methodologies. 
 Section 6.3 Cooperation. 

(a) Each Member shall (i) furnish to the Corporation in a timely manner such information, documents and other materials as the Corporation
may reasonably request for purposes of making any determination or computation necessary or appropriate under this Agreement, preparing any Tax Return or contesting or defending any audit, examination or controversy with any Taxing Authority,
(ii) make itself available to the Corporation and its representatives to provide explanations of documents and materials and such other information as the Corporation or its representatives may reasonably request in connection with any of the
matters described in clause (i) above, and (iii) reasonably cooperate in connection with any such matter. 
 (b) The Corporation
shall reimburse the Members for any reasonable and documented out-of-pocket costs and expenses incurred pursuant to Section 6.3(a). 

ARTICLE VII. 

MISCELLANEOUS 
 Section 7.1
Notices. All notices, requests, consents and other communications hereunder shall be in writing and shall be given (and shall be deemed to have been duly given upon receipt) by delivery in person, by courier service, by fax, by electronic
mail (delivery receipt requested) or by certified or registered mail (postage prepaid, return receipt requested) to the respective Parties at the following addresses (or at such other address for a Party as shall be as specified in a notice given in
accordance with this Section 7.1). All notices hereunder shall be delivered as set forth below, or pursuant to such other instructions as may be designated in writing by the Party to receive such notice: 

If to the Corporation, to: 

Switch, Inc. 

7135 South Decatur Boulevard 

Las Vegas, Nevada 89118 

Attn: Gabriel Nacht, Chief Financial Officer 

E-mail: gabe@switch.com 

  
 21 

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

Switch, Inc. 

7135 South Decatur Boulevard 

Las Vegas, Nevada 89118 

Attn: Corporate Secretary 

E-mail: secretary@switch.com 

Latham & Watkins LLP 

650 Town Center Drive, 20th Floor 

Costa Mesa, California 92626 

Attn: B. Shayne Kennedy 

Facsimile: (714) 540-1235 

E-mail: shayne.kennedy@lw.com 

Latham & Watkins LLP 

330 N. Wabash Avenue, Suite 2800 

Chicago, Illinois 60611 

Attn: Joseph Kronsnoble 

Facsimile: (312) 993-9767 

E-mail: joseph.kronsnoble@lw.com 

If to a Member, the address, facsimile number and e-mail address specified on such Member’s signature page to this Agreement 

Any Party may change its address, fax number or e-mail address by giving each of the other Parties written notice thereof in the manner set forth above. 

Section 7.2 Counterparts. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same
agreement and shall become effective when one or more counterparts have been signed by each of the Parties and delivered to the other Parties, it being understood that all Parties need not sign the same counterpart. Delivery of an executed signature
page to this Agreement by facsimile transmission shall be as effective as delivery of a manually signed counterpart of this Agreement. 

Section 7.3 Entire Agreement; No Third Party Beneficiaries. This Agreement constitutes the entire agreement and supersedes all prior
agreements and understandings, both written and oral, among the Parties with respect to the subject matter hereof. This Agreement shall be binding upon and inure solely to the benefit of each Party hereto and their respective successors and
permitted assigns, and nothing in this Agreement, express or implied, is intended to or shall confer upon any other Person any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement. 

Section 7.4 Governing Law. This Agreement shall be governed by, and construed in accordance with, the law of the State of Nevada,
without regard to the conflicts of laws principles thereof that would mandate the application of the laws of another jurisdiction. 

Section 7.5 Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any
law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or 

  
 22 

 
legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party. Upon such determination that any term or other provision is invalid, illegal
or incapable of being enforced, the Parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner in order that the transactions contemplated
hereby are consummated as originally contemplated to the greatest extent possible. 
 Section 7.6 Assignments; Amendments; Successors; No
Waiver. 
 (a) Assignment. No Member may assign, sell, pledge, or otherwise alienate or transfer any interest in this Agreement,
including the right to receive any Tax Benefit Payments under this Agreement, to any Person without the prior written consent of the Corporation, which consent shall not be unreasonably withheld, conditioned, or delayed, and without such Person
executing and delivering a Joinder agreeing to succeed to the applicable portion of such Member’s interest in this Agreement and to become a Party for all purposes of this Agreement (the “Joinder Requirement”); provided,
however, that to the extent any Member sells, exchanges, distributes, or otherwise transfers Units to any Person (other than the Corporation or Switch, Ltd.) in accordance with the terms of the Operating Agreement, the Members shall have the
option to assign to the transferee of such Units its rights under this Agreement with respect to such transferred Units, provided that such transferee has satisfied the Joinder Requirement. For the avoidance of doubt, if a Member transfers
Units in accordance with the terms of the Operating Agreement but does not assign to the transferee of such Units its rights under this Agreement with respect to such transferred Units, such Member shall continue to be entitled to receive the Tax
Benefit Payments arising in respect of a subsequent Exchange of such Units. The Corporation may not assign any of its rights or obligations under this Agreement to any Person without Supermajority Member Approval (and any purported assignment
without such consent shall be null and void). 
 (b) Amendments. No provision of this Agreement may be amended unless such amendment
is approved in writing by the Corporation and made with Supermajority Member Approval; provided that amendment of the definition of Change of Control will also require the written approval of a majority of the Independent Directors. No
provision of this Agreement may be waived unless such waiver is in writing and signed by the Party against whom the waiver is to be effective. 

(c) Successors. All of the terms and provisions of this Agreement shall be binding upon, and shall inure to the benefit of and be
enforceable by, the Parties hereto and their respective successors, assigns, heirs, executors, administrators and legal representatives. The Corporation shall require and cause any direct or indirect successor (whether by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or assets of the Corporation, by written agreement, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Corporation would
be required to perform if no such succession had taken place. 
 (d) Waiver. No failure by any Party to insist upon the strict
performance of any covenant, duty, agreement, or condition of this Agreement, or to exercise any right or remedy consequent upon a breach thereof, shall constitute a waiver of any such breach or any other covenant, duty, agreement, or condition.

  
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 Section 7.7 Titles and Subtitles. The titles of the sections and subsections of this
Agreement are for convenience of reference only and are not to be considered in construing this Agreement. 
 Section 7.8 Resolution of
Disputes. 
 (a) Except for Reconciliation Disputes subject to Section 7.9, any and all disputes which cannot be settled
after substantial good-faith negotiation, including any ancillary claims of any Party, arising out of, relating to or in connection with the validity, negotiation, execution, interpretation, performance or non-performance of this Agreement
(including the validity, scope and enforceability of this arbitration provision) (each a “Dispute”) shall be finally resolved by arbitration in accordance with the International Institute for Conflict Prevention and Resolution Rules
for Non-Administered Arbitration by a panel of three arbitrators, of which the Corporation shall designate one arbitrator and the Members party to such Dispute shall designate one arbitrator in accordance with the “screened” appointment
procedure provided in Resolution Rule 5.4. The arbitration shall be governed by the Federal Arbitration Act, 9 U.S.C. §§ 1 et seq., and judgment upon the award rendered by the arbitrators may be entered by any court having
jurisdiction thereof. The place of the arbitration shall be Las Vegas, Nevada. 
 (b) Notwithstanding the provisions of paragraph (a), any
Party may bring an action or special proceeding in any court of competent jurisdiction for the purpose of compelling another Party to arbitrate, seeking temporary or preliminary relief in aid of an arbitration hereunder, and/or enforcing an
arbitration award and, for the purposes of this paragraph (b), each Party (i) expressly consents to the application of paragraph (c) of this Section 7.8 to any such action or proceeding, and (ii) agrees that proof shall
not be required that monetary damages for breach of the provisions of this Agreement would be difficult to calculate and that remedies at law would be inadequate. For the avoidance of doubt, this Section 7.8 shall not apply to
Reconciliation Disputes to be settled in accordance with the procedures set forth in Section 7.9. 
 (c) This Agreement shall be
governed in all respects, including as to validity, interpretation and effect, by the internal laws of the State of Nevada, without giving effect to the conflict of laws rules thereof. The Parties agree that any suit or proceeding in connection
with, arising out of, or relating to this Agreement shall be instituted only in a court (whether federal or Nevada) located in Clark County, Nevada, and the Parties, for the purpose of any such suit or proceeding, irrevocably consent and submit to
the personal and subject matter jurisdiction and venue of any such court in any such suit or proceeding. Each Party agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit
on the judgment or in any other manner provided by law. 
 (d) Each Party irrevocably and unconditionally waives, to the fullest extent
permitted by law, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement in any court referred to in Section 7.8(c). Each Party irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of any such suit, action or proceeding in any such court. 

  
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 (e) Each Party irrevocably consents to service of process by means of notice in the manner
provided for in Section 7.1. Nothing in this Agreement shall affect the right of any Party to serve process in any other manner permitted by law. 

(f) WAIVER OF RIGHT TO TRIAL BY JURY. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT
IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). 

(g) Any dispute as to whether a dispute is a Reconciliation Dispute within the meaning of Section 7.9, or a Dispute within the
meaning of this Section 7.8, shall be decided and resolved as a Dispute subject to the procedures set forth in this Section 7.8. 

Section 7.9 Reconciliation. In the event that the Corporation and any Member are unable to resolve a disagreement with respect to a
Schedule (other than an Early Termination Schedule) prepared in accordance with the procedures set forth in Section 2.4, or with respect to an Early Termination Schedule prepared in accordance with the procedures set forth in
Section 4.2, within the relevant time period designated in this Agreement (a “Reconciliation Dispute”), the Reconciliation Dispute shall be submitted for determination to a nationally recognized expert (the
“Expert”) in the particular area of disagreement mutually acceptable to both Parties. The Expert shall be a partner or principal in a nationally recognized accounting firm, and unless the Corporation and such Member agree otherwise,
the Expert shall not, and the firm that employs the Expert shall not, have any material relationship with the Corporation or such Member or other actual or potential conflict of interest. If the Parties are unable to agree on an Expert within
fifteen (15) calendar days of receipt by the respondent(s) of written notice of a Reconciliation Dispute, the selection of an Expert shall be treated as a Dispute subject to Section 7.8 and an arbitration panel shall pick an Expert
from a nationally recognized accounting firm that does not have any material relationship with the Corporation or such Member or other actual or potential conflict of interest. The Expert shall resolve any matter relating to the Basis Schedule or an
amendment thereto, or the Early Termination Schedule or an amendment thereto within thirty (30) calendar days and shall resolve any matter relating to a Tax Benefit Schedule or an amendment thereto within fifteen (15) calendar days or as
soon thereafter as is reasonably practicable, in each case after the matter has been submitted to the Expert for resolution. Notwithstanding the preceding sentence, if the matter is not resolved before any payment that is the subject of a
disagreement would be due (in the absence of such disagreement) or any Tax Return reflecting the subject of a disagreement is due, the undisputed amount shall be paid on the date prescribed by this Agreement and such Tax Return may be filed as
prepared by the Corporation, subject to adjustment or amendment upon resolution. The costs and expenses relating to the engagement of such Expert or amending any Tax Return shall be borne by the Corporation except as provided in the next sentence.
The Corporation and the Members shall bear their own costs and expenses of such proceeding, unless (i) the Expert adopts the Member’s position, in which case the Corporation shall reimburse the Member for any reasonable and documented
out-of-pocket costs and expenses in such proceeding, or (ii) the Expert adopts the Corporation’s position, in which case the Member shall reimburse the Corporation for any reasonable and documented out-of-pocket costs and expenses in such
proceeding. The Expert shall finally determine any Reconciliation Dispute and the determinations of the Expert pursuant to this Section 7.9 shall be binding on the Corporation and the Members and may be entered and enforced in any court
having competent jurisdiction. 

  
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 Section 7.10 Withholding. The Corporation shall be entitled to deduct and withhold from
any payment that is payable to any Member pursuant to this Agreement such amounts as the Corporation is required to deduct and withhold with respect to the making of such payment under the Code or any provision of U.S. state, local or foreign tax
law. To the extent that amounts are so withheld and paid over to the appropriate Taxing Authority by the Corporation, such withheld amounts shall be treated for all purposes of this Agreement as having been paid by the Corporation to the relevant
Member. Each Member shall promptly provide the Corporation with any applicable tax forms and certifications reasonably requested by the Corporation in connection with determining whether any such deductions and withholdings are required under the
Code or any provision of U.S. state, local or foreign tax law. 
 Section 7.11 Admission of the Corporation into a Consolidated Group;
Transfers of Corporate Assets. 
 (a) If the Corporation is or becomes a member of an affiliated or consolidated group of corporations
that files a consolidated income Tax Return pursuant to Section 1501 or other applicable Sections of the Code governing affiliated or consolidated groups, or any corresponding provisions of U.S. state or local law, then: (i) the provisions
of this Agreement shall be applied with respect to the group as a whole; and (ii) Tax Benefit Payments, Early Termination Payments, and other applicable items hereunder shall be computed with reference to the consolidated taxable income of the
group as a whole. 
 (b) If any entity that is obligated to make a Tax Benefit Payment or Early Termination Payment hereunder transfers one
or more assets to a corporation (or a Person classified as a corporation for U.S. income tax purposes) with which such entity does not file a consolidated Tax Return pursuant to Section 1501 of the Code, such entity, for purposes of calculating
the amount of any Tax Benefit Payment or Early Termination Payment due hereunder, shall be treated as having disposed of such asset in a fully taxable transaction on the date of such contribution. The consideration deemed to be received by such
entity shall be equal to the fair market value of the contributed asset. For purposes of this Section 7.11, a transfer of a partnership interest shall be treated as a transfer of the transferring partner’s share of each of the
assets and liabilities of that partnership. 
 Section 7.12 Confidentiality. Each Member and its assignees acknowledges and agrees
that the information of the Corporation is confidential and, except in the course of performing any duties as necessary for the Corporation and its Affiliates, as required by law or legal process or to enforce the terms of this Agreement, such
Person shall keep and retain in the strictest confidence and not disclose to any Person any confidential matters, acquired pursuant to this Agreement, of the Corporation and its Affiliates and successors, learned by any Member heretofore or
hereafter. This Section 7.12 shall not apply to (i) any information that has been made publicly available by the Corporation or any of its Affiliates, becomes public knowledge (except as a result of an act of any Member in violation
of this Agreement) or is generally known to the business community, (ii) the disclosure of information to the extent necessary for a 

  
 26 

 
Member to prosecute or defend claims arising under or relating to this Agreement, and (iii) the disclosure of information to the extent necessary for a Member to prepare and file its Tax
Returns, to respond to any inquiries regarding the same from any Taxing Authority or to prosecute or defend any action, proceeding or audit by any Taxing Authority with respect to such Tax Returns. Notwithstanding anything to the contrary herein,
the Members and each of their assignees (and each employee, representative or other agent of the Members or their assignees, as applicable) may disclose at their discretion to any and all Persons, without limitation of any kind, the tax treatment
and tax structure of the Corporation, the Members and any of their transactions, and all materials of any kind (including tax opinions or other tax analyses) that are provided to the Members relating to such tax treatment and tax structure. If a
Member or an assignee commits a breach, or threatens to commit a breach, of any of the provisions of this Section 7.12, the Corporation shall have the right and remedy to have the provisions of this Section 7.12 specifically
enforced by injunctive relief or otherwise by any court of competent jurisdiction without the need to post any bond or other security, it being acknowledged and agreed that any such breach or threatened breach shall cause irreparable injury to the
Corporation or any of its Subsidiaries and that money damages alone shall not provide an adequate remedy to such Persons. Such rights and remedies shall be in addition to, and not in lieu of, any other rights and remedies available at law or in
equity. 
 Section 7.13 Change in Law. Notwithstanding anything herein to the contrary, if, in connection with an actual or proposed
change in law, a Member reasonably believes that the existence of this Agreement could cause income (other than income arising from receipt of a payment under this Agreement) recognized by such Member (or direct or indirect equity holders in such
Member) in connection with any Exchange to be treated as ordinary income rather than capital gain (or otherwise taxed at ordinary income rates) for U.S. federal income tax purposes or would have other material adverse tax consequences to such Member
or any direct or indirect owner of such Member, then at the written election of such Member in its sole discretion (in an instrument signed by such Member and delivered to the Corporation) and to the extent specified therein by such Member, this
Agreement shall cease to have further effect and shall not apply to an Exchange occurring after a date specified by such Member, or may be amended by in a manner reasonably determined by such Member, provided that such amendment shall not
result in an increase in any payments owed by the Corporation under this Agreement at any time as compared to the amounts and times of payments that would have been due in the absence of such amendment. 

Section 7.14 Interest Rate Limitation. Notwithstanding anything to the contrary contained herein, the interest paid or agreed to be
paid hereunder with respect to amounts due to any Member hereunder shall not exceed the maximum rate of non-usurious interest permitted by applicable Law (the “Maximum Rate”). If any Member shall receive interest in an amount that
exceeds the Maximum Rate, the excess interest shall be applied to the Tax Benefit Payment or Early Termination Payment, as applicable (but in each case exclusive of any component thereof comprising interest) or, if it exceeds such unpaid
non-interest amount, refunded to the Corporation. In determining whether the interest contracted for, charged, or received by any Member exceeds the Maximum Rate, such Member may, to the extent permitted by applicable Law, (a) characterize any
payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of
interest throughout the contemplated term of the payment obligations owed by the Corporation to such Member hereunder. Notwithstanding the foregoing, it is the intention of the Parties to conform strictly to any applicable usury laws. 

  
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 Section 7.15 Independent Nature of Rights and Obligations. The rights and obligations of
each Member hereunder are several and not joint with the rights and obligations of any other Person. A Member shall not be responsible in any way for the performance of the obligations of any other Person hereunder, nor shall a Member have the right
to enforce the rights or obligations of any other Person hereunder (other than the Corporation). The obligations of a Member hereunder are solely for the benefit of, and shall be enforceable solely by, the Corporation. Nothing contained herein or in
any other agreement or document delivered at any closing, and no action taken by any Member pursuant hereto or thereto, shall be deemed to constitute the Members acting as a partnership, an association, a joint venture or any other kind of entity,
or create a presumption that the Members are in any way acting in concert or as a group with respect to such rights or obligations or the transactions contemplated hereby, and the Corporation acknowledges that the Members are not acting in concert
or as a group and will not assert any such claim with respect to such rights or obligations or the transactions contemplated hereby. 

Section 7.16 Effectiveness. This Agreement shall be effective upon the date hereof; provided, however, that in the event
the Corporation fails to acquire any Units within four (4) business days following the date hereof (or such later date as may be agreed to by Switch, Ltd.) then this Agreement shall immediately be deemed null and void ab initio and this
Agreement shall be of no further force and effect. 
 [Signature Page Follows This Page] 

  
 28 

 IN WITNESS WHEREOF, the undersigned have executed or caused to be executed on their behalf this
Agreement as of the date first written above. 
  

			
	SWITCH, INC.
		
	By:	 	/s/ Gabe Nacht
	Name: Gabe Nacht
	Title: Chief Financial Officer

  

			
	SWITCH, LTD.
		
	By:	 	/s/ Gabe Nacht
	Name: Gabe Nacht
	Title: Chief Financial Officer

 SIGNATURE PAGE 

TO 

TAX RECEIVABLE AGREEMENT 

 Exhibit A 

FORM OF JOINDER AGREEMENT 

This JOINDER AGREEMENT, dated as of
                    , 20     (this “Joinder”), is delivered pursuant to that certain Tax
Receivable Agreement, dated as of October 5, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Tax Receivable Agreement”) by and among Switch, Inc., a Nevada
corporation (the “Corporation”), Switch, Ltd., a Nevada limited-liability company (“Switch, Ltd.”), and each of the Members from time to time party thereto. Capitalized terms used but not otherwise defined herein
have the respective meanings set forth in the Tax Receivable Agreement. 
  

	 	1.	Joinder to the Tax Receivable Agreement. The undersigned hereby represents and warrants to the Corporation that, as of the date hereof, the undersigned has been assigned an interest in the Tax Receivable
Agreement from a Member and [●]1. 

  

	 	2.	Joinder to the Tax Receivable Agreement. Upon the execution of this Joinder by the undersigned and delivery hereof to the Corporation, the undersigned hereby is and hereafter will be a Member under the Tax
Receivable Agreement and a Party thereto, with all the rights, privileges and responsibilities of a Member thereunder. The undersigned hereby agrees that it shall comply with and be fully bound by the terms of the Tax Receivable Agreement as if it
had been a signatory thereto as of the date thereof. 

  

	 	3.	Incorporation by Reference. All terms and conditions of the Tax Receivable Agreement are hereby incorporated by reference in this Joinder as if set forth herein in full. 

 

	 	4.	Address. All notices under the Tax Receivable Agreement to the undersigned shall be direct to: 

[Name] 

[Address] 

[City, State, Zip Code] 

Attn: 

Facsimile: 

E-mail: 
 IN
WITNESS WHEREOF, the undersigned has duly executed and delivered this Joinder as of the day and year first above written. 
  

			
	[NAME OF NEW PARTY]
		
	By:	 	 
	Name:	 	
	Title:	 	

  

	1 	NTD: Language to be added as applicable. 

			
	 Acknowledged and agreed
 as of the
date first set forth above:
  
 SWITCH, INC.

		
	By:	 	 
	Name:	 	
	Title:

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