Document:

Exhibit 10.1 Facilities Use Agreement and Indemnification Agreement

FACILITIES USE AGREEMENT

This Facilities Use Agreement (the “Agreement”) is made and entered into effective as of the 12th day of February 2013 (the “Effective Date”) by and between Aquila Family Ventures LLC (“Owner”) and Solera Holdings, Inc., a Delaware corporation (the “Company”). 

WITNESSETH

WHEREAS, Owner owns 22.3 acres of land, more or less, situated on Split Creek Road in Jackson, Wyoming (the “Premises”); and 

WHEREAS, the Company wishes to utilize and Owner agrees to make available certain portions of the Premises for use by the Company for certain permitted uses, as more particularly provided for in this Agreement. 

NOW THEREFORE, the Company and Owner, each in consideration of the covenants and agreements of the other and intending to be legally bound, agree as follows: 

1)Use of Premises. Subject to the terms, conditions and covenants contained in this Agreement, Owner hereby agrees to provide the Company and its Guests (defined below in Paragraph 6) with access to the Premises for the particular uses specified in Paragraph 5. Owner, in its sole discretion, may change the acreage and facilities contained in the Premises by providing the Company with a notice of the details and restrictions applicable thereto. The Company’s use of the Premises shall be on a non-exclusive, non-preferential, shared-use basis, with said use to be pre-approved as provided in Paragraph 5. Nothing in this Agreement shall be deemed to confer upon the Company any interest in the Premises, right to possess or control the use of the Premises, or any other rights with respect to the Premises other than those expressly provided herein.

		
	2)
	Term and Termination.

a)The initial term of this Agreement shall commence on the Effective Date and shall remain in effect until December 31, 2013.  Thereafter, this Agreement will automatically renew for additional one year terms unless terminated by either party at least thirty (30) days prior to expiration of the then- current term. 

b)Owner may, at its option, immediately terminate this Agreement (i) if the Company fails to cure any breach of this Agreement within ten (10) business days after receiving written notice of the breach from Owner, (ii) in the event that the chief executive officer of the Company (the “CEO”) as of the Effective Date no longer serves in that position for any reason or (iii) if a Change of Control of the Company (as defined in Paragraph 2(c)) shall occur. Additionally, either party may terminate this Agreement for any reason or no reason at any time by providing the other party with thirty (30) days’ notice.  Upon such termination of this Agreement by Owner in accordance with (i) above or by the Company in accordance with the immediately prior sentence, the Company shall pay to the Owner all Fees (as defined below) which are due through the remaining Term of the Agreement and any costs or reimbursements provided for in Paragraph 4 which are due through the date of 

24732/00500/DOCS/2809827.2

termination of the Agreement.  Owner and the Company both acknowledge and agree that, upon any termination of this Agreement, the Company shall have no further right to access the Premises. 

		
	c)
	For purposes of this Agreement, a “Change in Control” shall mean:

i)the obtaining by any party or group acting in concert (other than current stockholders or their affiliates) of fifty percent (50%) or more of the voting shares of the Company; or

ii)individuals who were members of the Company’s board of directors (the “Board”) immediately prior to any particular meeting of Company stockholders that involves a contest for the election of directors fail to constitute a majority of the members of such Company’s board of directors following such election; or

iii)the Company or one or more subsidiaries of the Company executing an agreement or agreements concerning the sale of substantially all of the assets of the Company on a consolidated basis to a third party purchaser that is not the Company or a direct or indirect subsidiary of the Company; or

iv)the Company’s adoption of a plan of dissolution or liquidation; or

v)the Company’s executing an agreement concerning a merger or consolidation in which the Company is not the surviving corporation or if, immediately following such merger or consolidation, less than fifty percent (50%) of the surviving corporation’s outstanding voting stock is held by persons who were stockholders of the Company immediately prior to the merger or consolidation.

3)Use Fees. During the Term of this Agreement, the Company shall pay to Owner for use of the Premises a non-refundable annual use fee in the amount of One Hundred Forty Thousand Dollars ($140,000) (the “Fee”). The Fee shall be paid by the Company in four quarterly payments of Thirty Five Thousand Dollars ($35,000) due on the first day of January, April, July and October during the Term, without setoff or deduction, at Owner’s address as set forth in Paragraph 18. The prior sentence notwithstanding, the first quarterly payment will be made to Owner within three (3) days following the Effective Date.  In the event any installment of the Fee has not been paid within thirty (30) calendar days following the due date, the late Fee shall accrue interest at the lesser of (i) one percent (1%) per month and (ii) the maximum interest rate permitted by law.

4)Costs and Reimbursement. In addition to the Fees provided for in Paragraph 3, the Company agrees to:

a)    be solely responsible for all out-of-pocket costs associated with Company sponsored events including, but not limited to, all liabilities, food and libations, transportation, communication, entertainment, whether provided by Owner or third parties; 

b)    promptly replace or pay Owner for all consumables used by the Company or its Guests while at the Premises; and

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c)    pay for the repair of any and all damage to the Premises or equipment located on the Premises caused by the Company or its Guests or resulting from the Company’s use of the Premises.

5)Approval of and Permitted Uses. In order to utilize the Premises for any of the uses permitted in this Paragraph 5, the Company shall submit a request to Owner with reasonable advance notice. Owner in his sole discretion may approve or disapprove said request or condition its approval on factors deemed by Owner to be in the best interest of preserving the Premises. However, no authorization of use shall be unreasonably withheld by Owner or unreasonably conditioned.  If the request is so approved by Owner, the Company may use the Premises for only the following purposes:

		
	a)
	Customer, vendor and partner meetings and use;

		
	b)
	Company management meetings and retreats;

		
	c)
	Company events, such as the Solera Institute and S8 meetings;

		
	d)
	Employee excellence award trips; and

e)    Any other use specifically approved in writing by Owner, in his sole discretion.

6)Guests. The Company may allow its employees, officers, directors, agents, invitees, guests, clients and potential or prospective clients (collectively “Guests”) to enter and use the Premises in accordance with the terms and conditions of this Agreement, subject to the following:

a)    At least the CEO or one member of the Company’s management who has been authorized by the CEO must accompany all Guests to the Premises, and must remain on the Premises at all times while Guests are present on the Premises.

b)    A log book (the “Log Book”) shall be maintained in which shall be recorded the name, and dates of visit, for all Guests who have entered and used the Premises. The Company shall provide regular access to and copies of the Log Book to Owner upon Owner’s request.

		
	7)
	Personal Property and Improvements of the Company or Guests.

a)    With Owner’s prior written consent, which consent may be granted or withheld in Owner’s sole discretion, the Company may provide additional accommodations on the Premises for its Guests, whether fixed property or personalty. In the event that such consent is granted by Owner, the Company agrees that it will make such construction and installation at its own cost and expense and strictly in compliance with any specifications, requirements or limitations imposed by Owner.

b)    Except for any item that is the personal property of Guests or any item that is vehicular, has title, or has been capitalized in the books and records of the Company and has more than one-half 

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of its depreciable life remaining (based on original cost compared to undepreciated balance) with an undepreciated balance in excess of $500, at the expiration of this Agreement, at Owner’s option: (i) any personal property on the Premises which has been utilized primarily on the Premises by the Company and its Guests and any constructions or improvements made by the Company on the Premises, shall become the property of Owner without any obligation to indemnify or reimburse the Company for the cost and expense thereof or (ii) at Owner’s request, the Company shall remove any such items, constructions or improvements made by the Company on the Premises, prior to the expiration or earlier termination of this Agreement, at the Company’s sole expense.

8)Owner Structures and Equipment. To the extent of any structures already on the Premises, and in the event that Owner constructs any other structures on the Premises during the Term of this Agreement, the Company may use such structures in connection with the permitted uses of the Premises under this Agreement.

9) Additional Services. Owner may provide to the Company and the Company’s Guests, at the Company’s expense and upon reasonable request, general labor by Owner or Owner’s agents at the then-applicable market rate(s) paid by Owner for similar services.

10) Compliance with Laws. The Company agrees to comply with, and require all Guests to comply with, all federal, state and other laws while on the Premises.

11)Protection of Property. The Company shall, and shall cause its Guests to, use every precaution to protect the Premises and the trees, plants and structures thereon against fire, cutting, driving of nails or other damage. The Company will be liable for any such destruction or damage on the Premises, resulting from the Company’s breach of the obligations set forth in immediately prior sentence. Subject to reasonable wear and tear, the Company is expected to return the Premises to their original state of maintenance and repair upon the termination of this Agreement. 

12)Non-Exclusive Use. The Company recognizes, understands and acknowledges that this Agreement is non-exclusive, and Owner holds the Premises for personal recreational use. The Company agrees that all rights, titles and privileges under this Agreement are, and shall be, at all times expressly subject to Owner’s basic primary right to prevent any fire, nuisance or unnecessary injury to said Premises or to the commercial values thereof, and to develop, lease, use, enjoy and protect his said lands without restriction including, but not limited to, the right to exercise timber rights such as cruising, cutting and replanting. Therefore, the Company’s exercise of its rights under this Agreement shall in no way impede or hinder Owner in the full enjoyment of the Premises as described or contemplated in this Agreement, and if in Owner’s land management operations it becomes necessary, expedient or advisable for Owner to prohibit, curtail, limit or suspend use of the Premises by the Company, Owner shall have the right to do so. 

13)Insurance. At all times during the Term of this Agreement, the Company agrees to maintain a liability insurance policy that will cover all risks of the Company’s use of the Premises, including all risks to Owner or his guests or agents, and any Guests on the Premises, in an amount of no less than the amount of coverage provided to the Company but, in any event, no less than Three Million and No/100 Dollars ($3,000,000.00), and, to the extent permissible by the Company’s policy, to 

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add Owner to the Company’s policy as a loss payee and as an additional insured, at the Company’s expense. As soon as practicable following the Effective Date and subject to the immediately preceding sentence, the Company shall furnish to Owner a certificate of insurance evidencing that such policy is in force and will continue in force during the Term of the Agreement, that Owner is a co-insured and covered by such policy during such period, and unconditionally obligate the insurer to notify Owner in writing at least thirty (30) days in advance of the effective date of any material change in or cancellation of such insurance.

14)Assumption of Risk. The Company acknowledges, having inspected the Premises, that it is familiar with the condition thereof, and accepts access to the Premises under existing conditions. It is understood and acknowledged that Owner makes no warranty, either express or implied, as to the condition of the Premises, or any roads, buildings, gates or other improvements on the Premises and that there are numerous dangerous conditions, risks and hazards, including, BUT NOT LIMITED to, poisonous snakes, insects and spiders; blinds and tree stands, whether or not erected by Owner or the Company; erosion and general condition of the land, both on and off roadways, creating rough, hazardous and dangerous driving and walking conditions; animals both wild and domestic that may be diseased and/or potentially dangerous; deep water; persons with firearms both on or off the Premises; and the use of vehicles (including, without limitation, tractors and four-wheelers). 

15)Indemnity. The Company has executed that certain Indemnification Agreement dated of even date herewith, attached hereto as Exhibit A (the “Indemnification Agreement”). 

16)Notices. Any notice, communication, request, reply, consent, advice or disclosure notice (“Notice”) required or permitted to be given or made by any party to another in connection with this Agreement must be in writing and may be given or served by (i) depositing such Notice in the United States mail, postage prepaid and registered or certified with return receipt requested, (ii) hand delivering such Notice, (iii) sending such Notice by an express air mail courier service for next business day delivery, or (iv) facsimile or electronic means, the receipt of which is confirmed in writing by the named recipient. Notice deposited in the mail in the manner described above shall be effective 72 hours after such deposit, and Notice hand delivered in person or delivered by facsimile, electronic means or express courier service shall be effective at the time of delivery. For purposes of delivering any Notice, the addresses of the parties shall, until changed as hereinafter provided, be as follows: 

(a)  If to the Company: 
      Solera Holdings, Inc. 
      Attn: General Counsel 
7 Village Circle, Suite 100
Westlake, Texas 76262 
Fax: (734) 997-3751

(b) If to Owner: 
Aquila Family Ventures LLC
8125 N Split Creek Road

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Jackson, WY, 83001
Fax: (858) 430-9578
Attention:  Tony Aquila

17)Assignment. This Agreement may be assigned by Owner. The Company shall not assign or transfer this Agreement without the prior written consent of Owner, which consent may be granted or withheld in Owner’s sole discretion. This Agreement and the rights, interests and obligations hereunder shall be binding upon and inure to the benefit of the parties hereto and their respective permitted successors and assigns. 

18)Miscellaneous. This Agreement and the Exhibit attached hereto contain the complete agreement between Owner and the Company with respect to the subject matter hereof, and supersede all prior agreements and understandings between them with respect to such subject matter. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, and together shall constitute one and the same agreement. IT IS AGREED THAT THIS AGREEMENT IS INTENDED TO GOVERN THE GENERAL USE OF THE PREMISES AND IS NOT A LEASE; AND THAT NO LEASEHOLD INTEREST OR TENANCY IS INTENDED TO BE OR SHALL BE CREATED HEREBY. This Agreement and the rights and obligations provided hereunder shall be governed by, and construed and enforced in accordance with, the laws of the State of Texas.

[Remainder of page intentionally left blank]

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IN WITNESS WHEREOF, Owner and the Company have executed this Agreement effective as of the day and year first above written. 

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Exhibit A

INDEMNIFICATION AGREEMENT

This Indemnification Agreement (“Agreement”) is made effective as of the 12th day of February 2013 (the “Effective Date”), by and between Solera Holdings, Inc., a Delaware corporation (the “Company”), and Aquila Family Ventures LLC (“Indemnitee”), owner of the Premises (as defined below). 

WHEREAS, Indemnitee owns 22.3 acres of land, more or less, situated on Split Creek Road in Jackson, Wyoming (the “Premises”); 

WHEREAS, from time to time Indemnitee allows the Company, and its subsidiaries and Affiliates and their respective employees, officers, directors, contractors, agents, vendors, clients and potential or prospective clients, invitees and other guests and family members of any of the foregoing (the “Users”) to use the Premises and any improvements located thereon for business-related purposes (the term “business-related purposes” shall be interpreted as broadly as possible to encompass any and all activities which enhance or advance the purposes of the Company), including all business, recreational, social purposes (including, but not limited to hunting, shooting, fishing, skiing, and riding all terrain vehicles) (business-related purposes and recreational purposes are collectively referred to herein as the “Permitted Uses”); and 

WHEREAS, as an inducement for Indemnitee to continue to allow the Users to use the Premises and any improvements thereon for the Permitted Uses, the Company desires to indemnify in all respects the Indemnitee as further provided herein. 

NOW, THEREFORE, the Company and Indemnitee hereby agree as follows: 

1. Indemnification. The Company shall protect, indemnify, defend and hold harmless Indemnitee, and Indemnitee’s agents, representatives, employees, heirs, family members, invitees (other than the Users), successors and assigns from and against all claims, demands, causes of action and damages whatsoever, including attorneys’ fees, relating to any accident, incident or occurrence, arising out of, incidental to or in any way resulting from or related to any and all uses of the Premises, including travel to and from the Premises and the Adjacent Premises (as defined below), or any improvements thereon or any and all uses of any lands, roadways, rivers, streams or lakes adjacent to or providing access to the Premises (the “Adjacent Premises”) by the Users or any other person permitted on the Premises or the Adjacent Premises by the Users, regardless of whether same may result from the NEGLIGENCE of Indemnitee or Indemnitee’s agents, representatives, employees or otherwise. 

Insofar as Indemnitee is concerned, the Company, on behalf of itself and the Users, assumes all risks and hazards in connection with the use of the Premises and the Adjacent Premises and all improvements situated on the Premises and the Adjacent Premises for any purpose, including, without limitation, those involved in traveling to and from the Premises and the Adjacent Premises, 

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and the Company hereby covenants and agrees for itself, its successors, and assigns, that the Company will not make any claim or institute any suit or action at law or in equity against Indemnitee or Indemnitee’s agents, representatives, employees, heirs, family members, invitees (other than the Users), successors or assigns related to the use of the Premises and the Adjacent Premises and all improvements situated on the Premises and the Adjacent Premises for any purpose, including, without limitation, those involved in traveling to and from the Premises and the Adjacent Premises. 

Indemnitee shall have no obligation to maintain or repair the Premises or any part of the Premises or improvements situated on the Premises and shall have no liability for any injury resulting from Indemnitee’s failure to maintain or repair the Premises or any such improvements.

2. Advancement of Expenses. Expenses (including medical and attorneys’ fees) incurred by Indemnitee, in defending any claims, demands or causes of action referenced in Section 1 hereof shall be paid by the Company in advance of the final disposition of such action, suit or proceeding at the written request of the Indemnitee. Prompt payment shall be made of any request for an advance pursuant to this Section 2.  Notwithstanding the foregoing or any other provision of this Agreement, Indemnitee shall not be entitled to the advancement of expenses under this Agreement if a determination has been made by a judicial authority or governmental entity or agency or, absent such determination, any such authority, entity or agency has taken a position or issued any guidance stating, that the advancement of expenses to Indemnitee in a manner similar to that contemplated in this Section 2 constitutes a personal loan in contravention of Section 402 of the Sarbanes-Oxley Act of 2002 or any similar law or regulation.

3. Enforcement of Rights. The right to indemnification or advances as provided by this Agreement shall be enforceable by Indemnitee in any court of competent jurisdiction. 

4. Choice of Law. This Agreement shall be governed by and its provisions construed in accordance with the laws of the State of Texas. 

5. Notice/Cooperation by Indemnitee. Indemnitee shall give the Company notice in writing as soon as practicable of any claim made against Indemnitee for which indemnification will or could be sought under this Agreement. Notice to the Company shall be directed to: 

Solera Holdings, Inc. 
Attention: General Counsel 
7 Village Circle, Suite 100
Westlake, Texas 76262 

Notice shall be deemed received three (3) days after the date postmarked if sent by certified or registered mail, properly addressed. In addition, Indemnitee shall give the Company such information and cooperation as it may reasonably require and as shall be within Indemnitee’s power. 

6. Counterparts. This Agreement may be executed in counterparts, each of which shall constitute an original. 

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7. Successors and Assigns. This Agreement shall be binding upon the Company and its successors and assigns, and shall inure to the benefit of Indemnitee and Indemnitee’s estate, heirs, legal representatives and assigns. 

8. Affiliates. The term “Affiliates” as used in this Agreement shall mean any entity for which forty percent (40%) or more of the ownership interests is controlled by the Company. 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date set forth below but it is effective for all purposes as of the Effective Date stated above. 

10Exhibit 10.2 Form of Stock Option Agreement with Time-Based Vesting

NON-QUALIFIED STOCK OPTION AGREEMENT 
Solera Holdings, Inc. 
(Time-Based Vesting)
Date

Name 
Street Address 
City, State, Zip Code

		
	Re:
	Solera Holdings, Inc. Grant of Non-Qualified Stock Option

Dear [Name]:
Solera Holdings, Inc. (the “Company”) is pleased to advise you that, pursuant to the Company’s 2008 Omnibus Equity Incentive Plan (the “Plan”) and this Agreement (this “Agreement”), the Committee has granted to you an option (the “Option”) to acquire shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”), as set forth below (the “Option Shares”), subject to the terms and conditions set forth herein:
	
			
	No. of Option Shares
	[Number]
	 

	Date of Grant
	[Date]
	 

	Exercise Price per Option Share
	[$Price]
	 

	Vesting Dates of Option Shares
	Except as provided below in connection with a Change in Control, the Option Shares shall vest and become exercisable as follows:
[1⁄3 of Amount]: June 30, 2015
[1⁄3 of Amount]: June 30, 2016
[1⁄3 of Amount]: June 30, 2017 

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	Special Change in Control Vesting Rules:
	If a Change in Control (as defined in the Plan) occurs prior to June 30, 2017 and this Option is not assumed or substituted for by the acquiror in an economically equivalent manner, the Option Shares shall vest in full immediately prior to, but contingent upon, the consummation of the Change in Control.  In addition, except to the extent that a written employment or other service agreement applicable to you provides for more favorable vesting of these Option Shares, to the extent that this Option is assumed, or substituted for by the acquiror in an economically equivalent manner, such Option Shares shall become fully vested if your service is terminated on account of, or within the twenty-four (24) month period following the Change in Control without Cause, or you terminate your service during this period for Good Reason.  For purposes of this Agreement, the Option shall be considered assumed or substituted for in an “economically equivalent manner” only if, immediately following the Change in Control, the Option confers the right to acquire, for each Option Share subject to the Option and unvested immediately prior to the Change in Control, publicly traded shares of common stock of the successor company then having a value substantially equal in fair market value to the per share consideration received by holders of shares of Common Stock in the Change in Control. The determination of such substantial equality of value of consideration shall be made by the Committee in good faith and its determination shall be conclusive and binding.

	Expiration Date of Option
	___________, 2020
	 

The Option is not an Incentive Stock Option and is not intended to be an “incentive stock option” within the meaning of Section 422 of the Code.
Each capitalized term not defined herein shall have the meaning set forth for such term in the Plan.
1.Option.
(a)    Term.  Subject to the terms and conditions set forth herein, the Company hereby grants to you an Option to purchase the Option Shares at the exercise price per Option Share set forth above in the introductory paragraph of this Agreement (the “Exercise Price”), payable upon exercise as set forth in paragraph 1(b) below.  The Option shall expire at the close of business on the date set forth above in the introductory paragraph of this Agreement (the “Expiration Date”), which is the seventh anniversary of the date of grant set forth above in the introductory paragraph of this Agreement (the “Grant Date”), subject to earlier expiration as provided in paragraph 2(c) below should you cease to be an employee, officer or director of the Company or a Subsidiary.  The 

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Exercise Price and the number and kind of shares of Common Stock or other property for which the Option may be exercised shall be subject to adjustment as provided in Section 12.2 of the Plan.
(b)    Payment of Option Price.  Subject to paragraph 2 below, the Option may be exercised in whole or in part upon payment of an amount (the “Option Price”) equal to the product of (i) the Exercise Price and (ii) the number of Option Shares to be acquired.  Payment of the Option Price shall be made by one or more of the following means:
(i)    in cash (including check, bank draft, money order or wire transfer of immediately available funds);
(ii)    by delivery of outstanding shares of Common Stock with a Fair Market Value on the date of exercise equal to the Option Price in accordance with Section 6 of the Plan;
(iii)    by simultaneous sale through a broker reasonably acceptable to the Committee of Option Shares acquired on exercise, as permitted under Regulation T of the Federal Reserve Board;
(iv)    if and to the extent approved in advance by the Committee, by authorizing the Company to withhold from issuance a number of Option Shares issuable upon exercise of the Option which, when multiplied by the Fair Market Value of a share of Common Stock on the date of exercise, is equal to the Option Price; or
(v)    by any combination of the foregoing clauses (i) through (iii) and, if authorized in advance by the Committee, clause (iv).
2.    Exercisability/Vesting and Expiration.
(a)    Normal Vesting.  The Option granted hereunder may be exercised only to the extent it has become vested.  The Option shall vest as indicated by the Vesting Dates of Option Shares set forth in the introductory paragraph of this Agreement.
(b)    Normal Expiration.  In no event shall any part of the Option be exercisable after the Expiration Date.
(c)    Effect on Vesting and Expiration of Employment Termination.  Notwithstanding paragraphs 2(a) and (b) above, the special rules set forth in the Plan (Section 12.4) shall apply if your employment or service with the Company or a Subsidiary terminates prior to the Option becoming fully vested and/or prior to the Expiration Date.

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3.    Procedure for Exercise.  You may exercise all or any portion of the Option, to the extent it has vested and is outstanding, at any time and from time to time prior to the Expiration Date, by delivering written notice to the Company in the form attached hereto as Exhibit A, together with payment of the Option Price in accordance with the provisions of paragraph 1(b) above. The Option may not be exercised for a fraction of an Option Share.
4.    Automatic Exercise.  If on the last day on which the Option may be exercised, the Fair Market Value of one Share exceeds the Exercise Price per Option Share above, then the Option shall be deemed to have been exercised by you on such day with payment made by withholding Shares otherwise issuable in connection with the exercise of the Option.  In such event, the Company shall deliver to you the number of whole Option Shares for which the Option was deemed exercised, less the number of whole Option Shares required to be withheld for the payment of the total purchase price and required withholding taxes (determined under paragraph 5(a) below) with any fractional Share settled in cash.
5.    Withholding of Taxes.
(a)    Withholding of Shares. You are required to make arrangements for payment to the Company at the time of exercise of the amount the Company is required to withhold for taxes.  The Company may, but need not, permit you to deliver whole shares of Common Stock (or have the Company withhold whole Option Shares acquired upon exercise of the Option) to satisfy, in whole or in part, the minimum amount the Company is required to withhold for taxes in connection with the exercise of the Option.  The fair market value of the shares to be withheld or delivered will be the Fair Market Value as of the date the amount of tax to be withheld is determined.  Any remaining amount required to be withheld that is in excess of any whole shares accepted by the Company must be paid to the Company by you at the time of exercise.
(b)    Company Requirement.  The Company, to the extent permitted or required by law, shall have the right to deduct from any payment of any kind (including salary or bonus) otherwise due to you, an amount equal to any federal, state or local taxes of any kind required by law to be withheld with respect to the delivery of Option Shares under this Agreement.
6.    Conformity with Plan.  The Option is intended to conform in all respects with, and is subject to all applicable provisions of, the Plan (which is incorporated herein by reference).  Inconsistencies between this Agreement and the Plan shall be resolved in accordance with the terms of the Plan.  By executing and returning the enclosed copy of this Agreement, you acknowledge your receipt of this Agreement and the Plan and agree to be bound by all of the terms of this Agreement and the Plan.
7.    Rights of Participants.  Nothing in this Agreement shall interfere with or limit in any way the right of the Company to terminate your employment or other performance of services at any time (with or without Cause), nor confer upon you any right to continue in the employ or as a director or officer of, or in the performance of other services for, the Company or a Subsidiary for any period of time, or to continue your present (or any other) rate of compensation or level of responsibility, and in the event of termination of employment or other performance of services (including, but not limited to, termination without Cause), any portion of the Option that was not 

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previously vested and exercisable shall expire and be forfeited (other than, if the Committee so provides, retirement).  Nothing in this Agreement shall confer upon you any right to be selected again as a Participant.  The purpose and terms of this grant reflect the Committee’s intention to not grant any awards to you under the Plan (or any successor or similar plan) during the Company’s 2014 and 2015 Fiscal Years and to next consider you for an award in the fourth quarter of the 2016 Fiscal Year [FOR NON-CEO NEOs only: other than awards having vesting and exercise terms and conditions based upon performance criteria and time periods substantially similar to those used herein].  You acknowledge your understanding of and agreement to the Committee’s intention.
8.    Certain Definition.  For the purposes of this Agreement, the following term shall have the meaning set forth below:
(a)    “Cause” except to the extent that a written employment or other service agreement applicable to you provides for a definition of “cause,” then “Cause” shall have the meaning set forth in the Plan.
(b)    “Good Reason” except to the extent that a written employment agreement or other service agreement applicable to you provides for a definition of “good reason” or another comparable term, then “Good Reason” shall have the meaning set forth in this Section 8(b).
A voluntary termination following, or on account of, a Change in Control shall qualify for the accelerated vesting on account of a “Good Reason” termination if you provide notice to the Company of the condition giving rise to “Good Reason” within 90 days of the initial existence of such condition and the Company (or its successors) shall have 30 days following such notice to remedy such condition.  For purposes of this Agreement, “Good Reason” means the occurrence of any of the following events or conditions, without your express written consent (which consent may be denied, withheld or delayed for any reason): (a) a material reduction in your duties, authority or responsibilities inconsistent with your position; (b) a material, non-voluntary reduction by the Company in your annual base salary or annual cash bonus opportunity as in effect as of the date hereof (other than a reduction of not more than ten percent (10%) that generally applies to all officers in the Company); (c) the relocation of your principal place of employment to a location more than twenty-five (25) miles from Westlake, Texas, provided that such relocation is also more than 50 miles from your principal residence as of the date of relocation, (e) any action or inaction which constitutes a material breach of this Agreement by the Company (or its successors) or any employment or service agreement to which you are a party or (f) the failure of the Company to obtain the assumption (by operation of law, the continuation of the corporate existence of the Company, Solera, Inc. or otherwise) of any employment or service agreement to which you are a party or substitution of a substantially similar agreement by any successors in a Change of Control.

(c)    “Option Shares” shall mean (i) all shares of Common Stock issued or issuable upon the exercise of the Option and (ii) all shares of Common Stock issued with respect to the Common Stock referred to in clause (i) above by way of stock dividend or stock split or in connection with any conversion, merger, consolidation or recapitalization or other reorganization affecting the Common Stock.

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9.    Amendment or Substitution of Option.  The terms of the Option may be amended from time to time by the Committee in its discretion in any manner that it deems appropriate (including, but not limited to, acceleration of the date of exercise of the Option);  provided that, except as otherwise provided in the Plan, no such amendment shall adversely affect in a material manner any of your rights hereunder without your written consent.
10.    Remedies.  The parties hereto shall be entitled to enforce their rights under this Agreement specifically, to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights existing in their favor.  The parties hereto acknowledge and agree that money damages would not be an adequate remedy for any breach of the provisions of this Agreement and that any party hereto may, in its sole discretion, apply to any court of law or equity of competent jurisdiction for specific performance and/or injunctive relief (without posting bond or other security) in order to enforce or prevent any violation of the provisions of this Agreement.
11.    Successors and Assigns.  Except as otherwise expressly provided herein, all covenants and agreements contained in this Agreement by or on behalf of any of the parties hereto shall bind and inure to the benefit of the respective successors and permitted assigns of the parties hereto whether so expressed or not.
12.    Severability.  Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of this Agreement.
13.    Counterparts.  This Agreement may be executed simultaneously in two or more counterparts, each of which shall constitute an original, but all of which taken together shall constitute one and the same Agreement.
14.    Descriptive Headings.  The descriptive headings of this Agreement are inserted for convenience only and do not constitute a part of this Agreement.
15.    Governing Law.  THE VALIDITY, CONSTRUCTION, INTERPRETATION, ADMINISTRATION AND EFFECT OF THE PLAN, AND OF ITS RULES AND REGULATIONS, AND RIGHTS RELATING TO THE PLAN AND TO THIS AGREEMENT, SHALL BE GOVERNED BY THE SUBSTANTIVE LAWS, BUT NOT THE CHOICE OF LAW RULES, OF THE STATE OF DELAWARE.
16.    Notices.  All notices, demands or other communications to be given or delivered under or by reason of the provisions of this Agreement shall be in writing and shall be deemed to have been given when delivered personally or mailed by certified or registered mail, return receipt requested and postage prepaid, to the recipient.  Such notices, demands and other communications shall be sent to you at the address appearing on the signature page to this Agreement and to the Company at 100 Village Circle, Suite 100, Westlake, TX 76262, Attn: Chief Financial Officer, or 

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to such other address or to the attention of such other person as the recipient party has specified by prior written notice to the sending party.
17.    Entire Agreement.  This Agreement and the terms of the Plan constitute the entire understanding between you and the Company, and supersede all other agreements, whether written or oral, with respect to your acquisition of the Option Shares.
*****

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Signature Page to Stock Option Agreement
Please execute the extra copy of this Agreement in the space below and return it to the Company to confirm your understanding and acceptance of the agreements contained in this Agreement.
Very truly yours, 
 
SOLERA HOLDINGS, INC. 
 
 
By: ____________________________________ 
    Name: ___________________________ 
    Title:   ___________________________

Enclosures: 
- Extra copy of this Agreement 
- Copy of the Plan 
- Prospectus for the Plan
The undersigned hereby acknowledges having read this Agreement and the Plan and hereby agrees to be bound by all provisions set forth herein and in the Plan.
	
			
	Dated as of
	 
	OPTIONEE

	 
	 
	 

	 
	 
	 

	 
	 
	Name:  [Name]

	 
	 
	Address (please print)

	 
	 
	 

	 
	 
	 

	 
	 
	 

EXHIBIT A
Form of Letter to be Used to Exercise Nonqualified Stock Option
__________________________________ 
Date
	
	
	Solera Holdings, Inc.

	[Street address]

	[City, State, Zip Code]

Attention:    Chief Financial Officer
I wish to exercise the stock option granted on [Date] and evidenced by a Stock Option Agreement dated as of [Date] to acquire [Number] shares of Common Stock of Solera Holdings, Inc., at an option price of [$Price] per share. In accordance with the provisions of paragraph 1 of the Stock Option Agreement, I wish to make payment of the exercise price (please check all that apply):
	
		
	o
	in cash

	o
	by delivery of shares of Common Stock held by me

	o
	by simultaneous sale through a broker of Option Shares

	o
	by authorizing the Company to withhold Option Shares (subject to authorization by the compensation committee of the board of directors of the Company)

Please issue a certificate for these shares in the following name:
	
	
	 

	Name

	 

	Address

	Very truly yours,

	Signature

	Typed or Printed Name:

	Social Security Number

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