Document:

Asset Purchase Agreement dated November 17, 2007

 EXHIBIT 10.1 
 ASSET PURCHASE AGREEMENT 
 AMONG 
 MACROVISION CORPORATION, 
 MACROVISION INTERNATIONAL HOLDING LIMITED PARTNERSHIP

 AND 
 CRYPTOGRAPHY RESEARCH,
INC. 
 Dated November 17, 2007 

 TABLE OF CONTENTS 
  

							
	 	  	 	  	 	  	Page
	 1.
	  	 Sale and Transfer of Assets
	  	1
			
	 2.
	  	 Purchase Price; Escrow
	  	1
			
	 3.
	  	 Certain Tax Matters
	  	2
			
	 4.
	  	 Allocation of Purchase Price
	  	3
			
	 5.
	  	 Securities Laws Restrictions; Legend
	  	4
			
	 6.
	  	 Assumption of Liabilities
	  	4
			
	 7.
	  	 Representations and Warranties of Seller
	  	5
				
		  	(a)	  	 Organization and Good Standing
	  	5
				
		  	(b)	  	 Execution and Effect of Agreement
	  	5
				
		  	(c)	  	 No Contravention
	  	6
				
		  	(d)	  	 Title to Assets
	  	6
				
		  	(e)	  	 Compliance with Laws
	  	6
				
		  	(f)	  	 Financial Reports
	  	6
				
		  	(g)	  	 Litigation; Consents
	  	6
				
		  	(h)	  	 Employees
	  	6
				
		  	(i)	  	 Environmental Matters
	  	7
				
		  	(j)	  	 Taxes
	  	7
				
		  	(k)	  	 Governmental Permits and Approvals
	  	7
				
		  	(l)	  	 Inventory and Warranty Claims
	  	7
				
		  	(m)	  	 Investment
	  	7
				
		  	(n)	  	 Proprietary Rights
	  	8
				
		  	(o)	  	 Contracts
	  	11
			
	 8.
	  	 Representations and Warranties of Buyer
	  	14
			
	 9.
	  	 Covenants
	  	16
			
	 10.
	  	 Conditions Precedent to Buyer’s Obligations
	  	18
			
	 11.
	  	 Conditions Precedent to Seller’s Obligations
	  	20
			
	 12.
	  	 The Closing
	  	21
			
	 13.
	  	 Registration Rights
	  	22
			
	 14.
	  	 Further Assurances
	  	30
			
	 15.
	  	 Labor and Employment Matters
	  	30

  

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 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
	 16.
	  	 Survival of Representations and Warranties
	  	31
			
	 17.
	  	 Indemnification
	  	31
			
	 18.
	  	 Indemnification Procedure
	  	33
			
	 19.
	  	 Third Party Claims
	  	34
			
	 20.
	  	 Notices
	  	35
			
	 21.
	  	 Entire Agreement
	  	36
			
	 22.
	  	 Successors
	  	36
			
	 23.
	  	 Section Headings
	  	36
			
	 24.
	  	 Applicable Law
	  	37
			
	 25.
	  	 Expenses
	  	37
			
	 26.
	  	 Severability
	  	37
			
	 27.
	  	 Counterparts
	  	37
			
	 28.
	  	 Termination
	  	37

  

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 ASSET PURCHASE AGREEMENT 
 This ASSET PURCHASE AGREEMENT (“Agreement”) is made this 17th day of November 2007, by and among Cryptography Research, Inc., a California corporation (“Seller”), and Macrovision Corporation, a Delaware
corporation (“Macrovision”), and Macrovision International Holding Limited Partnership, a Cayman Island Limited Partnership (“Macrovision International,” and collectively with Macrovision, the
“Buyer”). Each of Buyer and Seller acknowledges and agrees that Macrovision retains the right to have all of its obligations performed by, and all of its rights inure to the benefit of, Macrovision International; provided,
however, that Macrovision shall remain ultimately liable for any and all of its obligations and liabilities hereunder. Each of Seller and Buyer may hereafter be referred to as a “party” or collectively as the
“parties.” 
 W I T N E S S E T H: 
 WHEREAS, Seller is engaged in the business of developing cryptographic security technologies with applications across industries, including a business
unit focused on content protection marketed under the Self-Protecting Digital Content (“SPDC”) brand (the “Self-Protecting Digital Content Business”); and 
 WHEREAS, Buyer desires to purchase and acquire from Seller, and Seller desires to sell, assign and transfer to Buyer, certain of the assets of the
Self-Protecting Digital Content Business in consideration for the purchase price, and upon the terms and subject to the conditions hereinafter set forth. 
 NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter contained, the parties hereto agree as follows: 
 1. Sale and Transfer of Assets. On the Closing Date, subject to the terms and conditions hereinafter set forth, Seller agrees to sell, convey, assign, transfer and deliver to Buyer, and Buyer agrees to purchase
from Seller, all of Seller’s right, title and interest in and to all of the assets of the Self-Protecting Digital Content Business listed or described on Exhibit A-1 (such assets are hereinafter collectively referred to as the
“Assets”); provided, however, that the Assets shall not include the assets listed or described on Exhibit A-2 (the “Excluded Assets”). 
 2. Purchase Price; Escrow. 
 (a) Subject to the terms and conditions of this Agreement, in full consideration for the purchase by Buyer of the Assets, Buyer shall cause to be paid and issued, as the case may be, to Seller on the dates set forth below: 
 (i) $45,000,000 (the “Cash Component”), shall be paid to Seller on the Closing Date, subject to the escrow requirements
set forth in Section 2(c) below; 
 (ii) a warrant (the “Unit Warrant”) to purchase shares of
Buyer’s common stock, $0.001 par value per share (the “Common Stock”), in the form attached hereto as Exhibit B shall be issued to Seller on the earlier of (A) the effective date of the UW Registration Statement or
(B) December 31, 2009. 

 (iii) a warrant (the “Studio Warrant”) to purchase Buyer’s Common
Stock in the form attached hereto as Exhibit C shall be issued to Seller on the earlier of (A) the effective date of the SW Registration Statement or (B) December 31, 2009; and 
 (iv) a warrant (the “Non-Contingent Warrant”) to purchase Buyer’s Common Stock in the form attached hereto as
Exhibit D shall be issued to Seller on the earlier of (A) the later of the effective date of the NCW Registration Statement and January 1, 2008 or (B) December 31, 2008. 
 (b) The Unit Warrant, the Studio Warrant and the Non-Contingent Warrant shall be collectively referred to herein as the
“Warrants.” The Warrants shall be issued to Seller in private placements. The shares of Common Stock issuable upon exercise of the Warrants shall be registered in accordance with the provisions of Section 13 below.

 (c) On the Closing Date, Buyer shall deliver $6,000,000 of the Cash Component to Wells Fargo Bank, NA, as escrow agent (the
“Escrow Agent”), which shall be held in escrow (the “Escrow Fund”) subject to the escrow agreement attached hereto as Exhibit E (the “Escrow Agreement”) for the purposes of securing the
Seller’s indemnity obligations under this Agreement. The amount deposited into the Escrow Fund shall be deducted from the Cash Component otherwise deliverable to Seller as set forth in Section 2(a) above. Subject to and in
accordance with the terms of the Escrow Agreement, sixteen (16) months following the Closing Date (or, if such date is not on a Business Day, the first Business Day thereafter), the Escrow Agent shall deliver any amount remaining in the Escrow
Fund to the Seller. Notwithstanding the foregoing and subject to and in accordance with the terms of the Escrow Agreement, the Escrow Agent may withhold from such delivery the equivalent of any amounts then in dispute relating to indemnification
obligations arising under this Agreement, provided that the withheld amount, to the extent not applied in satisfaction of indemnification obligations, shall be delivered to the Seller as described above promptly upon resolution of such dispute. For
purposes of this Agreement, “Business Day” means shall mean any day, other than a Saturday, Sunday or a day on which banks located in San Francisco, California, shall be authorized or required by law to close. 
 3. Certain Tax Matters. 
 (a) All sales or use, transfer, real property gains, excise, stamp, or other taxes which are in the nature of sales, use, or property tax, whether imposed on Seller or Buyer (but specifically excluding income taxes or taxes in the nature of
income taxes imposed on Buyer relating to Buyer’s conduct of the activities associated with the Assets following the Closing Date) resulting from the sale of Assets and the assumption of the Assumed Liabilities contemplated by this Agreement
shall be borne 100% by Seller. Buyer and Seller agree to cooperate to the extent commercially reasonable and legally permitted to minimize any transfer taxes arising out of or relating to the transactions contemplated by this Agreement. 

(b) Unless otherwise required pursuant to a determination within the meaning of Section 1313 of the Code, Buyer and Seller agree
to treat (i) the Warrants as issued in exchange for the Assets (rather than for services) for all applicable income tax purposes; and (ii) Seller as having engaged in a contingent payment sale within the meaning of Section 453 of the
Code and 

  

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the regulations thereunder, with each issuance of a Warrant to Seller pursuant to this Agreement constituting a “payment” within the meaning of
Section 453(f)(3) of the Code and the regulations thereunder in an amount equal to the fair market value of such Warrant as of such date of issuance. Buyer and Seller acknowledge that the timing of recognition and amount of Buyer’s
determination of its basis in the assets purchased and Seller’s timing of recognition and amount of gross income, with respect to the Warrants, may be different under the applicable provisions of the Code, applicable regulations and other
authority. Nothing herein shall limit Seller’s right to elect not to apply the installment method under Section 453(d) of the Code with respect to the Warrants or any other payments to be received under this Agreement. For purposes of this
Section 3(b) and Section 4, the fair market value of each Warrant as of its date of issuance shall be determined with reference to the Black Scholes Model, consistently applying the assumptions that were used to determine the number of
Warrant Shares (as such term is defined in each Warrant) pursuant to the particular Warrant. Buyer and Seller agree to cooperate with each other, as and to the extent reasonably requested by the other party, in connection with the filing of tax
returns reflecting any income or deduction arising with respect to the Warrants (including, to the extent necessary in connection with the filing of Seller’s tax returns, the determination of the agreed upon fair market value, as of the Closing
Date, of Seller’s rights to receive the Warrants pursuant to this Agreement), and any audit, litigation or other proceeding with respect to such tax returns. 
 4. Allocation of Purchase Price. For purposes of complying with the requirements of Section 1060 of the Internal Revenue Code of 1986, as amended (the “Code”), each of the parties will allocate
the purchase price among the Assets and the Non-Competition Agreement of Seller in accordance with the principles of Section 3(b) and in a manner that reflects the relative fair market values of the Assets and Non-Competition Agreement.
Buyer will prepare a purchase price allocation schedule as soon as practicable following the Closing and in all events no later than two months thereafter and furnish such schedule to Seller for its review and comment. Buyer and Seller will
cooperate in good faith to agree upon such purchase price allocation schedule and, if they do, such schedule shall be attached hereto as Schedule 4. In the event of such agreement, each of Buyer and Seller agrees to prepare its federal, state
and foreign income tax returns for all current and future tax reporting periods and file Form 8594 (and corresponding state forms) with respect to transfer of the Assets to Buyer in a manner consistent with such allocation, to update such allocation
and such Forms 8594 as necessary to reflect any changes thereto, and, except as required pursuant to a determination (within the meaning of Section 1313 of the Code), not to take any position inconsistent therewith upon examination of any tax
return, in any refund claim, or in any litigation, investigation or otherwise. If any state, federal or foreign taxing authority challenges such agreed allocation, the party receiving notice of such challenge shall give the other party prompt
written notice of such challenge, and the parties hereby agree to cooperate in good faith in responding to it in order to preserve the effectiveness of the allocation. In the event that Buyer and Seller cannot agree upon the purchase price
allocation schedule, then the preceding two sentences of this Section 4 shall not apply, and each of Buyer and Seller shall prepare its federal, state and foreign income tax returns and file Form 8594 based on such purchase price
allocation as it deems appropriate in its sole judgment; provided, that for tax purposes (including, without limitation, reporting on Form 8594 and any other applicable tax returns), Buyer and Seller shall not allocate the amount of the purchase
price that they each determine relates to section 197 intangibles (within the meaning of Section 197(d) of the Code) to separate section 197 intangibles, other than any allocation to (i) goodwill and going concern value and (ii) the
Non-Competition Agreement, except as otherwise required by applicable tax law. 
  

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 5. Securities Laws Restrictions; Legends. 
 (a) With respect to the Warrants and the shares of Common Stock issuable upon exercise of the Warrants (collectively, the “Warrant
Shares”), Seller agrees that all its sales, transfers, pledges, assignments, disposals or encumbrances of the Warrant Shares shall be effected in compliance with all applicable federal and state securities laws. 
 (b) Upon issuance, the Warrants shall bear a legend stating: 
 “NEITHER THIS WARRANT, NOR THE COMMON STOCK TO BE ISSUED UPON EXERCISE OF THIS WARRANT, HAS BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “ACT”), OR QUALIFIED UNDER THE APPLICABLE SECURITIES LAWS OF ANY OTHER JURISDICTION (THE “LAW”), AND THIS WARRANT HAS BEEN, AND THE COMMON STOCK TO BE ISSUED UPON EXERCISE OF THIS WARRANT
WILL BE, ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR FOR RESALE IN CONNECTION WITH, ANY DISTRIBUTION OF THE WARRANT OR COMMON STOCK AS APPLICABLE. NO SALE OR OTHER DISPOSITION MAY BE MADE WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
ACT AND QUALIFICATION UNDER ANY APPLICABLE LAW OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY (AS THAT TERM IS DEFINED BELOW) AND ITS COUNSEL, THAT THE REGISTRATION AND QUALIFICATION ARE NOT REQUIRED UNDER THE ACT AND LAW, RESPECTIVELY.”

 6. Assumption of Liabilities. 
 (a) On the Closing Date, effective immediately upon consummation of the Closing, Buyer shall assume and agree to discharge only the liabilities and obligations of Seller identified on Exhibit F hereto (the
“Assumed Liabilities”). 
 (b) Except as set forth in this Agreement, Buyer shall not assume and shall not be
liable for any liabilities and obligations of Seller or the conduct of the business by Seller of whatever nature whether presently in existence or arising hereafter, except for the Assumed Liabilities. All such liabilities and obligations not
assumed by Buyer as contemplated by this Agreement, shall be retained by and remain liabilities and obligations of Seller (collectively, the “Excluded Liabilities”). Without limiting the generality of the foregoing, Buyer shall not
assume and shall not be liable for any of the following liabilities or obligations of Seller: (i) any liability or obligation for taxes attributable to or imposed upon Seller or Buyer, or attributable to or imposed upon the Assets for any
period (or portion thereof) ending on or prior to the applicable Closing Date, including without limitation taxes imposed upon Seller as a result of the transactions contemplated by this Agreement; (ii) all lawsuits, claims and other
liabilities or obligations arising in connection with all actions, suits, claims, investigations or proceedings to 

  

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the extent relating to the conduct of the business relating to the Assets by Seller prior to Closing or the ownership of the Assets by Seller prior to
Closing; (iii) all liabilities or obligations relating to the employment, failure to employ or termination of employment of any individual with respect to the business relating to the Assets by Seller or relating to or under any labor
agreements or employee benefit or compensation arrangements, plans, programs, policies, practices or agreements, including, without limitation, severance or accrued vacation pay, of Seller or for the benefit of employees of Seller; (iv) any
liability arising under Environmental Laws (as such term is defined in Section 7(j) hereof) with respect to the conduct of the business relating to the Assets by Seller prior to Closing; (v) any indebtedness for borrowed money or
otherwise of Seller; (vi) any amounts payable to Seller’s affiliates; or (vii) any workers’ compensation claims relating to employees of Seller and resulting from the employment by Seller. 
 7. Representations and Warranties of Seller. Each representation and warranty set forth below is qualified by the exceptions or disclosures set
forth in the disclosure schedule attached hereto (with specific reference to the section of this Agreement to which the information stated in such disclosure relates) (the “Disclosure Schedule”); provided, however, if any section of
the Disclosure Schedule discloses information with sufficient detail and in a way as to make its relevance to the disclosure required on another section of the Disclosure Schedule readily apparent on its face, then the applicable information will be
deemed to have been disclosed in that other section of the Disclosure Schedule, notwithstanding the omission of a cross-reference in or to that other section. As of the Closing (except to the extent that any such representation or warranty is made
as of a specific date, in which case such representation or warranty shall apply only as of such specified date), and subject to the Disclosure Schedule, Seller represents and warrants to Buyer as follows: 
 (a) Organization and Good Standing. Seller is a corporation duly organized, validly existing and in good standing under the laws of
the State of California. Seller has the full power and authority to own its properties, to carry on the Self-Protecting Digital Content Business as presently conducted and to sell and convey the Assets to Buyer. 
 (b) Execution and Effect of Agreement. Seller has the requisite power and authority to enter into this Agreement and to perform its
obligations hereunder, and the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby and the performance of Seller’s obligations hereunder have been duly authorized by all necessary action on the
part of Seller. This Agreement has been duly executed and delivered by Seller and constitutes the legal, valid and binding obligation of Seller, enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium and similar laws affecting creditors’ rights and remedies generally and subject, as to enforceability, to general principles of equity (the “Enforceability Exceptions”). The
vote or approval by the holders of the Seller’s capital stock (or rights to acquire the Seller’s capital stock) of this Agreement or the transactions contemplated by this Agreement is not required under California law, the Seller’s
Articles of Incorporation or Bylaws, or any agreement or arrangement between the Company and any holder or holders of its capital stock (or rights to acquire its capital stock). 
  

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 (c) No Contravention. Neither the execution and delivery of this Agreement nor the
consummation of the transactions contemplated hereby will (i) violate or conflict with any provision of Seller’s Articles of Incorporation or Bylaws, (ii) except as set forth on Schedule 7(c) (with or without the giving of
notice or the lapse of time or both) violate, or result in a breach of, or constitute a default under, or conflict with, or give rise to a right of termination of, or accelerate the performance required by, any of the terms of any agreement, lease,
mortgage, indenture or other instrument to which the Assets are subject or otherwise involves Seller’s Self-Protecting Digital Content Business (each, a “Seller Contract”), or (iii) violate or conflict with any judgment,
decree, order or award of any court, governmental body or arbitrator, or, any law, rule or regulation applicable to Seller, nor will the same result in the creation of any Liens (as such term is defined in Section 7(d) hereof) upon any
of the Assets. 
 (d) Title to Assets. Seller is the owner of the Assets, and, by the execution and delivery on the
Closing Date of the instruments of transfer provided for herein, Buyer will be vested with good, valid and marketable title to each of the Assets, free and clear of all liens, mortgages, pledges, imperfections of title, security interests,
restrictions, prior assignments, encumbrances and claims of any kind or nature whatsoever (collectively, “Liens”). Except as set forth on Schedule 7(d) hereto, there are no Liens on any of the Assets as of the Closing Date.

 (e) Absence of Certain Changes or Events. Since October 15, 2007, there has not been any material adverse
change in the business, results of operations or financial condition of the Self-Protecting Digital Content Business (a “Material Adverse Change”), and no event has occurred or circumstance exists that is reasonably likely to result
in such a Material Adverse Change; provided, however, that in no event shall any of the following constitute or be considered in determining a Material Adverse Change: (i) any change resulting from conditions affecting the
industry in which the Self-Protecting Digital Content Business operates or from changes in general business or economic conditions; (ii) any change resulting from the announcement or pendency of any of the transactions contemplated by this
Agreement; or (iii) any change resulting from compliance by Seller with the terms of, or the taking of any action contemplated or required by, this Agreement. 
 (f) Compliance with Laws. All business conduct relating, directly or indirectly, to the Assets has been conducted, and is presently
being conducted, in compliance with all applicable requirements of laws, ordinances, regulations and rules and all applicable requirements of governmental bodies and agencies having jurisdiction over Seller. 
 (g) Financial Reports. Seller has delivered to Buyer a copy of the financial information set forth on Schedule 7(g). There
are no material inaccuracies, undisclosed liabilities or discrepancies contained or reflected therein. Such financial information fairly presents in all material respects the cash flows of the Self-Protecting Digital Content Business as of the
respective date of and for the periods referred to in such documents. 
 (h) Litigation; Consents. Except as set forth
on Schedule 7(h) hereto, there is no action, suit, litigation, administrative or arbitration proceeding or formal governmental inquiry or investigation pending or threatened against Seller with respect to the Assets or the business relating
to the Assets or which seeks to restrain or prohibit or otherwise challenges the execution, delivery and performance of this Agreement or the consummation, legality or validity 

  

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of the transactions contemplated hereby. Seller is not in violation of any term of any judgment, decree, injunction or order entered by any court or
governmental authority and outstanding against it relating to or with respect to the business relating to the Assets or any Asset. Except as set forth on Schedule 7(h) hereto, no consent, approval or authorization of or filing with any
governmental authority or other third party on the part of Seller is required in connection with the execution, delivery and performance of this Agreement or the consummation of any of the transactions contemplated hereby. 
 (i) Employees. There are no pending or threatened strikes, work stoppages, slowdowns, grievances or other labor disputes with
respect to individuals set forth on Schedule 7(i) hereto. There are no pending or threatened complaints or charges with any federal, state or local governmental agency or court with respect to any individual set forth on
Schedule 7(i) hereto alleging employment discrimination, wrongful termination, any unfair labor practice charges or any other employment-related claim. No individuals set forth on Schedule 7(i) hereto are represented by any
labor organization with respect to their employment by Seller, and no group of such individuals or labor organization with respect to such individuals have made a demand for recognition or have filed a petition seeking a representation proceeding
with the National Labor Relations Board within the past two years. 
 (j) Environmental Matters. To the Seller’s
knowledge, the operations of the business relating to the Assets are in compliance in all material respects with all applicable federal, state, local or other governmental statutes, codes, rules, regulations, ordinances, decrees, orders or other
requirements of law relating to the protection of human health and safety or the environment (collectively, “Environmental Laws”) and all permits issued pursuant to Environmental Laws. 
 (k) Taxes. For purposes of this Agreement, the term “taxes” shall mean all sales and use taxes, real and personal
property taxes, gross receipts taxes, documentary transfer taxes, employment taxes, withholding taxes, unemployment insurance contributions and other taxes or governmental charges of any kind, however denominated, including any interest, penalties
and additions to tax in respect thereto, under any federal, state, local, foreign or other applicable tax law. Except as set forth on Schedule 7(k) hereto, all taxes of Seller and any other person for which Buyer could bear successor
liability or become a charge or Lien against the Assets for any period (or portion thereof) ending on or prior to the applicable Closing Date have been or will be paid on a timely basis. Seller has duly and timely filed (or will file prior to the
applicable Closing) such returns and reports of taxes required to be filed prior to Closing, and all such returns and reports are true, correct, and complete in all material respects. There are no Liens for taxes on any of the Assets other than
permitted liens. Seller has complied with all record keeping and tax reporting obligations relating to income and employment taxes due with respect to compensation paid to the Transferred Employees (as defined below). Seller is not a “foreign
person” within the meaning of Section 1445(f)(3) of the Code. There are no pending or, to Seller’s knowledge, threatened proceedings with respect to taxes for which Buyer could bear successor liability or which could become a charge
against the Assets, and there are no outstanding waivers or extensions of statutes of limitations with respect to assessments of taxes of Seller for which Buyer could bear successor liability or which could become a charge against the Assets. No
agreement or arrangement regarding compensation of any Transferred Employee requires any payments which will result in the disallowance of any tax deduction for Buyer pursuant to Section 162, 404 or 280G of the Code or an excise tax to the
recipient of such payment pursuant to Section 4999 of the Code. 
  

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 (l) Governmental Permits and Approvals. Seller has all licenses, permits,
consents, approvals, authorizations, qualifications and orders of governmental authorities necessary or required for the conduct of the business relating to the Assets (collectively, the “Permits”). Within the past eighteen months, Seller
has not received a written notice alleging a violation or probable violation or notice of revocation or other written communication from or on behalf of any governmental entity, which violation has not been corrected or otherwise settled, alleging
(i) any violation of any Permit or (ii) that Seller requires any Permit not currently held by Seller. 
 (m)
Inventory and Warranty Claims. Seller has no inventory related to the Assets. No product liability or warranty claims have been communicated in writing to Seller relating to the Self-Protecting Digital Content Business. 
 (n) Investment. Seller (i) understands that, as of the Closing Date, neither the Warrants nor the Warrant Shares will have
been registered under the Securities Act of 1933, as amended (the “Securities Act”), or under any state securities laws, and are being offered and sold in reliance upon federal and state exemptions for transactions not involving any
public offering, (ii) is acquiring the Warrants and the Warrant Shares solely for its own account and not with a view to the distribution thereof except in compliance with the Securities Act, (iii) is a sophisticated investor with
knowledge and experience in business and financial matters, (iv) has had the ability and opportunity to review certain information concerning Buyer, including, without limitation, Buyer’s Form 10-K for the fiscal year ended
December 31, 2006 filed with the Securities and Exchange Commission (the “SEC”) and each other current or periodic report filed with the SEC since December 31, 2006 and has had the opportunity to obtain additional
information as desired in order to evaluate the merits and the risks inherent in acquiring and holding the Warrants and the Warrant Shares, (v) that it is able to fend for itself, can bear the economic risk of its investment, and has such
knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of the investment in the Warrants and the Warrant Shares, (vi) was at no time presented with or solicited by or through any
leaflet, public promotional meeting, television advertisement or any other form of general solicitation or advertising relating to Buyer or any investment in the Warrants and the Warrant Shares and (vii) is an “accredited investor”
for purposes of the Securities Act and any applicable state securities laws, or has such knowledge and experience in financial and business matters that he or she is capable of evaluating the merits and risks of the prospective investment.

 (o) Proprietary Rights. Except as set forth in the Disclosure Schedule or with respect to the Excluded Assets:

 (i) Seller Registrations. The Disclosure Schedule lists all patents issued to Seller, patent applications filed by
Seller, trademarks registered by Seller, copyrights registered by Seller, and applications for registration of any of the foregoing, to the extent that the foregoing are used in or necessary for the operation of Seller’s Self-Protecting Digital
Content Business as of the Closing Date. 
  

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 (ii) Inbound Licenses. The Disclosure Schedule lists all licenses and other
agreements with third parties which grant to Seller material subject matter, including without limitation, patent rights, copyrights, trademarks and trade secrets, within Seller’s Self-Protecting Digital Content Business. To the knowledge of
Seller, all such licenses and agreements are valid and subsisting, and neither Seller nor, to Seller’s knowledge, any of its employees or contractors have breached any of such licenses or other agreements, with respect to such licenses granted
to Seller. Other than as described in the Disclosure Schedule, all of the inbound licenses are freely assignable by Seller without the consent of any person or other restrictions or limitations on assignment. Notwithstanding any provision of this
Agreement to the contrary, Seller makes no representations or warranties with respect to licenses or IP Rights pertaining to commercial, off-the-shelf software that is readily available having an aggregate price of less than Fifty Thousand Dollars
($50,000.00) or the assignability of any such license or agreement. 
 (iii) Noninfringement by Seller. The Seller
Products (and the Seller’s conduct of the Self-Protecting Digital Content Business) do not misappropriate trade secret rights of any third party and, to the knowledge of Seller, do not infringe any IP Rights (other than trade secret rights) of
any third party and Seller knows of no claim or allegation that Seller Products or Seller’s conduct of the Self-Protecting Digital Content Business infringe or misappropriate any IP Rights of any third party. Notwithstanding any provision of
this Agreement to the contrary, the only representations or warranties made by Seller in this Agreement related to infringement or misappropriation of IP Rights of any third party with respect to Seller Products, the Self-Protecting Digital Content
Business or otherwise, are set forth in this Section 7(o)(iii) (Noninfringement by Seller). “Seller Products” means all versions and implementations of any of the Assets, developed by Seller, to the extent such Assets
have been or are being offered, distributed or sold by Seller within the Self-Protecting Digital Content Business. 
 (iv)
Ownership. Seller is the sole owner of the Seller IP Rights, free and clear of any security interests to secure indebtedness. Seller has not received any written notice or been the subject of any legal proceeding alleging anything to the
contrary. “Seller IP Rights” means all material IP Rights listed on the schedule of Assets, together with Seller’s copyrights in the works of authorship listed on Exhibit A-1 (to the extent originally created and used by Seller
within the Self-Protecting Digital Content Business). “Seller IP Rights” do not include IP Rights licensed to Seller by third parties. “IP Rights” means, collectively, all patents, patent applications, patent rights, trademark
rights, trademark registrations and applications therefor, trade dress rights, rights in trade names, service mark rights, service mark registrations and applications therefor, copyrights, copyright registrations and applications therefor, mask work
rights, mask work registrations and applications therefor, domain names (URLs) and trade secret rights. 
 (v) Validity,
Enforceability and Existence. To the knowledge of Seller (and excluding patent prosecution communications from the United States Patent and Trademark Office, or foreign counterparts): (a) the Seller IP Rights (other than patent applications
or items of similar nature) are valid and enforceable; and (b) Seller has not received any written third party assertions, or verbal or written third party threats of legal action, to the contrary. 
  

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 (vi) Patent Application Process. With respect to the Self-Protecting Digital
Content Business, Seller has complied with its duty of candor and disclosure to the United States Patent and Trademark Office and any relevant foreign patent office with respect to patent applications filed by or on behalf of Seller and, to the
knowledge of Seller, Seller has made no material misrepresentation, or to its knowledge, failed to disclose material prior art, in such applications. 
 (vii) Seller Conduct of the Business. No claims have been asserted or threatened against Seller (and Seller is not aware of any claims which are likely to be asserted against Seller relating to Seller IP Rights
or Seller Products) by any person challenging Seller’s use, possession, manufacture, sale or distribution of Seller Products or challenging or questioning the validity or effectiveness of any material license or agreement relating to Seller IP
Rights or Seller Products or alleging a violation within the Self-Protecting Digital Content Business of any person’s or entity’s privacy, personal or confidentiality rights. Seller knows of no valid basis for any claim of the type
specified in the immediately preceding sentence. None of the Seller IP Rights or Seller Products is subject to any proceeding or outstanding order or decree of a court or other governmental body: (A) restricting in any manner the use,
development, manufacture, marketing, licensing, sale, distribution, furnishing or disposition by Seller of any Seller Product; or (B) restricting the conduct of the Seller’s Self-Protecting Digital Content Business in order to accommodate
the intellectual property rights of a third party. Subject to Section 7(o)(iii) (Noninfringement by Seller), the operation of the Seller’s current Self-Protecting Digital Content Business, the use, manufacture, marketing, license,
sale, distribution or furnishing by Seller of any Seller Product, and the use or exploitation of any Seller IP Right in the Self-Protecting Digital Content Business does not violate any license or other contract between Seller and any third party,
with respect to any contract provision relating to IP Rights. 
 (viii) Outbound Agreements. The Disclosure Schedule
lists all outbound agreements with respect to which Seller is a party and pursuant to which Seller grants licenses to Seller IP or performs services using Seller IP. Seller has not granted any third party any right to reproduce, modify, offer for
sale or license, distribute, market or exploit any of the Seller Products or any adaptations, translations, or derivative works based on the Seller Products or any portion thereof, within the Self-Protecting Digital Content Business. Other than as
described in the Disclosure Schedule, all of the outbound agreements are freely assignable by Seller without the consent of any person or other restrictions or limitations on assignment. 
 (ix) Employee Matters. Each person presently or previously employed by Seller (including independent contractors, if any) has
executed a confidentiality, non-disclosure and proprietary inventions assignment agreement pursuant to the form of agreement previously provided to Buyer or its representatives, which agreement without limitation acknowledges Seller’s ownership
of all work product created by such employee during the course of the employment relationship, within the Self-Protecting Digital Content Business. To Seller’s knowledge, no employee (or independent contractor) within the Self-Protecting
Digital Content Business is in violation of any such agreement. The Disclosure Schedule lists all employees, directors, contractors and consultants who have participated in any material way in the development of any material technological portion of
the Seller Products or the Seller IP Rights. 
  

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 (x) No Third Party Infringement. To Seller’s knowledge, with respect to the
Self-Protecting Digital Content Business, there is no material unauthorized infringement or misappropriation of any Seller IP Rights, by any third party, including any employee, former employee or independent contractor of Seller. With respect to
the Self-Protecting Digital Content Business, Seller has not entered into any agreement to indemnify any other person or business entity against any charge of infringement of any Seller IP Rights. 
 (xi) Trade Secrets and Confidential Information. Except as disclosed in the Disclosure Schedule, Seller has taken reasonable action
customary in its industry to protect and preserve the confidentiality of all material trade secrets and other confidential information, used within the Self-Protecting Digital Content Business, not otherwise protected by patents
(“Confidential Information”). Except as disclosed in the Disclosure Schedule, all disclosure by Seller within the Self-Protecting Digital Content Business to a third party, and to the knowledge of Seller, all use, disclosure or
appropriation by another party pursuant to rights granted to it by Seller within the Self-Protecting Digital Content Business, of material Confidential Information owned by Seller has been pursuant to the terms of a written agreement between Seller
and such third party reasonably sufficient under the circumstances to protect the secrecy of such Confidential Information. 
 (xii) No Exclusivity or Sublicensing. Except as set forth in the Disclosure Schedule, none of Seller’s contracts within the Self-Protecting Digital Content Business grants any third party exclusive rights in any Seller Product
or service or under any Seller IP Rights, or grants any third party the right to sublicense to another, unrelated third party, the right to use application programming interfaces for, to create derivate works of, or to reproduce and distribute or
sell, any Seller Product or service. Except as disclosed in the Disclosure Schedule, Seller has not transferred ownership to any third party of any Seller IP Right, or (other than in the exercise of its reasonable business judgment with respect to
claims in patent applications and trade secrets) knowingly permitted Seller’s rights in such Seller IP Rights to lapse or enter the public domain. 
 (xiii) Source Code. Neither Seller nor any other party authorized to act on its behalf has disclosed or delivered to any third party, or permitted the disclosure or delivery to any escrow agent or other third
party of, any Seller source code of any of the Assets. No event has occurred, and no circumstance or condition exists, that (with or without notice or lapse of time, or both) shall, or would reasonably be expected to, result in the disclosure or
delivery by Seller or any other party authorized to act on its behalf to any third party of any Seller source code of any of the Assets. The Disclosure Schedule identifies each contract in effect as of the date of this Agreement, which Seller will
update as of the Closing Date if necessary, pursuant to which Seller has deposited, or is required to deposit, with an escrow agent or other third party, any Seller source code of any of the Assets. The execution of this Agreement or the
consummation of the transactions contemplated herein or any of the other transactions contemplated by this Agreement, in and of itself, is not reasonably expected to result in the release from escrow of any Seller source code of any of the Assets.

  

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 (xiv) No Government Funding. No government funding or facilities of a university,
college, other educational institution or similar research center, was used in the development of the Seller Products or services, computer software programs or applications owned by Seller within the Self-Protecting Digital Content Business. No
current or former employee, consultant or independent contractor of Seller who contributed to, the creation or development of any Seller IP Rights has performed services for the government, for a university, college or other educational institution
or for a similar research center during a period of time during which such employee, consultant or independent contractor was also performing services for Seller within the Self-Protecting Digital Content Business. 
 (xv) Standards Bodies and Public Software. Seller has made no submission or written proposal, and is not subject to any agreement
with, standard bodies or similar entities which obligate Seller to grant licenses to or otherwise impair any of the Seller IP Rights. Seller has not taken any actions that: (A) incorporate any Public Software, in whole or in part, into any
Seller Product or service or any portion thereof; (B) use Public Software, in whole or in part, in the development of any part of any Seller Product or service or any portion thereof in a manner that subjects any Seller Product or service, in
whole or in part, to all or part of the license obligations of any Public Software; or (C) combine or distribute any Seller Product or service with Public Software in a manner that subjects any Seller Product or service, in whole or in part, to
all or part of the license obligations of any Public Software. As used herein, the term “Public Software” shall mean any software, generally available at no charge and in source code form, that is redistributed by Seller in any Seller
Product, and that is subject to license terms that either: (A) create, or purport to create, obligations of the user with respect to the Seller’s Product or service or any derivative work thereof; or (B) grant, or purport to grant, to
any third party any rights to or immunities under the Seller Product or Seller IP Rights, including without limitation any software that requires as a condition of use, modification, and/or distribution of such software that such software or other
software incorporated into, derived from or distributed with such software be disclosed or distributed in source code form, licensed for the purpose of making derivative works, or redistributable at no charge and, by way of example, shall include
software licensed under the GNU’s General Public License (GPL) or Lesser/Library GPL, the Mozilla Public License, the Netscape Public License, the Sun Community Source License, the Sun Industry Standards License, the BSD License, and the Apache
License. 
 (xvi) Commercial Software Licenses. Notwithstanding any provision of this Agreement to the contrary, Seller
makes no representations or warranties with respect to (a) any commercial software that is readily available having an aggregate price of less than Fifty Thousand Dollars ($50,000), or (b) any licenses or agreements which grant to Seller
any rights to use such commercial software. 
 (xvii) Excluded Assets. Notwithstanding any provision of this Agreement
to the contrary, Seller makes no representations or warranties with respect to any Excluded Assets. 
 (xviii)
Self-Protecting Digital Content Business. Notwithstanding any provision contained in this Agreement to the contrary, the representations and warranties set forth in this Section 7(o) (Proprietary Rights) shall not apply with
respect to any IP Rights, subject matter or business of Seller outside the Self-Protecting Digital Content Business. 
  

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 (p) Conformance with Specifications. Except with respect to non-conformities that
do not result in any material liability, all software developed by Seller within the Self-Protecting Digital Content Business that are included among the Assets and all Seller Products provided by or through Seller to customers conform in all
material respects to applicable product specifications and to any material representations with respect to product specifications provided to customers within the Self-Protecting Digital Content Business, and, to the knowledge of Seller, there is no
legitimate basis for any present or future action, suit, proceeding, hearing, investigation, charge, complaint, claim or demand against Seller that could reasonably be expected to give rise to any material liability relating to such product
specifications or material representations with respect to such product specifications provided to customers. 
 (q)
Testing and Security. Seller has not concealed or intentionally withheld from Buyer any material documentation relating to the testing of the Seller Products, or any plans and specifications for Seller Products currently under development by
Seller; provided, however, that the foregoing shall not be construed as a representation or warranty that Seller has made available all such documentation, plans or specifications to Buyer. Seller has a policy and procedure for tracking material
bugs, errors and defects of which it becomes aware in any Seller Products, and maintains a database covering the foregoing. 
 (r) Privacy Practices. With respect to the Self-Protecting Digital Content Business, Seller represents and warrants that Seller does not collect personally identifiable information from any third party other than employees.

 (s) Disclosure. None of this Agreement, the financial information referred to in Section 7(g) (Financial
Reports) (including the footnotes thereto), any Schedule, Exhibit or certificate delivered pursuant to this Agreement or any document or statement in writing which has been supplied to Buyer or its representatives by or on behalf of the Seller in
connection with the transactions contemplated by this Agreement contains any untrue statement of a material fact, or omits any statement of a material fact necessary to make the statements contained herein or therein not misleading. There is no fact
known to the Seller that could reasonably be expected to have a Material Adverse Change which has not been set forth in this Agreement, or any Schedule, Exhibit or certificate delivered pursuant to this Agreement. 
 (t) Contracts. All contracts of the Seller involving the use of, or otherwise relating to, the Assets are set forth on
Schedule 7(t) (Contracts). Except as set forth on Schedule 7(t) (Contracts), each contract of the Seller is in full force and effect and there exists no (i) default or event of default by the Seller or, to the knowledge
of the Seller, by any other party to any contract of the Seller with respect to any material term or provision of any such contract or (ii) event, occurrence, condition or act (including the consummation of the transactions contemplated hereby)
which would reasonably be expected to become a default or event of default by the Seller or, to the knowledge of the Seller, any other party thereto, with respect to any material term or provision of any such contract. Seller has not violated any of
the material terms or conditions of any contract or agreement and, to the knowledge of the Seller all of the covenants to be performed by any other party thereto have not been breached in any material respects. The Seller has delivered to Buyer true
and complete copies, including all amendments, of each contract involving the Assets. To Seller’s knowledge, no current or former employee, director, consultant or independent contractor hired by Seller within the Self-Protecting Digital
Content Business: (A) is in material violation of any term or covenant of any 

  

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employment contract, patent disclosure agreement, invention assignment agreement, nondisclosure agreement, non-competition agreement or any other contract
with any other party by virtue of such employee’s, director’s, consultant’s or independent contractor’s being employed by, or performing services for, Seller within the Self-Protecting Digital Content Business; or (B) has
developed any technology, software or other copyrightable, patentable or otherwise proprietary work for Seller within the Self-Protecting Digital Content Business that is subject to any contract under which such employee, director, consultant or
independent contractor has assigned or otherwise granted to any third party any rights in or to such technology, software or other copyrightable, patentable or otherwise proprietary work. Except with respect to non-conformities that do not result in
any material liability, and subject to Section 7(o)(iii) (Noninfringement by Seller), all software developed by Seller within the Self-Protecting Digital Content Business that are included among the Assets, all Seller Products provided
by or through Seller to customers, and the operation of the Seller’s current Self-Protecting Digital Content Business, conform in all material respects to applicable contractual commitments, including without limitation, express and applicable
implied warranties. 
 8. Representations and Warranties of Buyer. Each representation and warranty set forth below is qualified by
the exceptions or disclosures set forth in the disclosure schedule attached hereto (with specific reference to the section of this Agreement to which the information stated in such disclosure relates) (the “Buyer Disclosure
Schedule”); provided, however, if any section of the Buyer Disclosure Schedule discloses information with sufficient detail and in a way as to make its relevance to the disclosure required on another section of the Buyer Disclosure Schedule
readily apparent on its face, then the applicable information will be deemed to have been disclosed in that other section of the Buyer Disclosure Schedule, notwithstanding the omission of a cross-reference in or to that other section. As of the
Closing (except to the extent that any such representation or warranty is made as of a specific date, in which case such representation or warranty shall apply only as of such specified date), and subject to the Buyer Disclosure Schedule, Buyer
represents and warrants to Seller as follows: 
 (a) Organization and Good Standing. Buyer is a corporation duly
organized, validly existing and in good standing under the laws of the State of Delaware and has full power and authority to own, lease and operate its properties and carry on its business as it is now being conducted. 
 (b) Execution and Effect of Agreement. Buyer has the requisite power and authority to enter into this Agreement and to perform its
obligations hereunder, and the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby and the performance of Buyer’s obligations hereunder have been duly authorized by all necessary action on the
part of Buyer. This Agreement has been duly executed and delivered by Buyer and constitutes the legal, valid and binding obligation of Buyer, enforceable against it in accordance with its terms, subject to the Enforceability Exceptions. 

(c) No Contravention. Neither the execution and delivery of this Agreement nor the consummation of the transactions effected
hereby will (i) violate or conflict with any provision of Buyer’s Certificate of Incorporation or Bylaws, (ii) (with or without the giving of notice or the lapse of time or both) violate, or result in a breach of, or constitute a
default under, or conflict with, or give rise to a right of termination of, or accelerate the performance required 

  

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by, any of the terms of any agreement, lease, mortgage, indenture or other instrument to which Buyer is a party or by which it is bound, or
(iii) violate or conflict with any judgment, decree, order or award of any court, governmental body or arbitrator, or any law, rule or regulation applicable to Buyer. 
 (d) No Undisclosed Liabilities, Absence of Certain Events and Changes. Except as set forth in the Buyer Disclosure Schedule or as
otherwise disclosed in Buyer SEC Reports (as defined below) required to be filed by Buyer with the SEC since September 30, 2007, neither Buyer nor any of its subsidiaries has incurred any liabilities or obligations (whether absolute or
contingent) other than those arising from operations in the ordinary course of business consistent with past practice. Since September 30, 2007, except as set forth in the Buyer Disclosure Schedule or disclosed in the Buyer SEC Reports filed
with the SEC and publicly available prior to the date hereof, there has not been any event, occurrence, development or circumstances and there has been no change in or development with respect to the business, condition (financial or otherwise),
assets, liabilities, properties, operations or results of operations of Buyer and its subsidiaries except events, occurrences, developments, circumstances and changes in and developments with respect to the ordinary course of business of Buyer
consistent with past practice which have not had or could not reasonably be expected to have, individually or in the aggregate, a material adverse effect on Buyer. 
 (e) Registration Statement. As of the date of this Agreement, Buyer is eligible to file a registration statement on Form S-3 with
respect to the Warrant Shares to be issued pursuant to this Agreement and has taken all actions which would be required to permit sales of its securities under Rule 144 under the Securities Act. 
 (f) SEC Filings; Financial Statements. 
 (i) Buyer has made available true and correct copies to Seller of all forms, schedules, reports, prospectuses, proxy statements and
documents filed by Buyer with the SEC since January 1, 2005 (the “Buyer SEC Reports”). The Buyer SEC Reports (i) at the time they were filed, complied in all material respects with the requirements of the Securities Act or
the Exchange Act, as the case may be, and the rules and regulations promulgated thereunder, and (ii) did not at the time they were filed (or if amended or superseded by a filing prior to the date of this Agreement, then on the date of such
filing) contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.
None of Buyer’s subsidiaries are required to file any forms, reports or other documents with the SEC. 
 (ii) Each of the
consolidated financial statements (including, in each case, any related notes thereto) (the “Buyer Financial Statements”) contained in the Buyer SEC Reports has been prepared in accordance with GAAP applied on a consistent basis
throughout the period involved (except as may be indicated in the notes thereto) and complied in all material respects with the rules and regulations of the SEC. Each of the Buyer Financial Statements fairly presents in all material respects the
consolidated financial position of Buyer and its subsidiaries as of the respective dates thereof and the consolidated results of its operations and cash flows for the periods indicated, except that the unaudited interim financial statements do not
include notes and were or are subject to normal and recurring year-end adjustments which were not or are not expected to be, individually or in the aggregate, materially adverse to Buyer and its subsidiaries taken as a whole. 
  

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 (g) Capitalization. As of the date of this Agreement, the authorized capital stock
of Buyer consists of 250,000,000 shares of Common Stock, par value $0.001 per share, and 5,000,000 shares Preferred Stock, par $0.001 per share. As of November 1, 2007, 53,618,434 shares of Common Stock were issued and outstanding. All such
shares of Buyer have been duly authorized, and all such issued and outstanding shares have been validly issued, are fully-paid and nonassessable. 
 (h) Litigation. There are no claims, actions, suits, proceedings or investigations pending or, to the knowledge of Buyer, threatened against Buyer or any of its subsidiaries or any of their properties or assets
before any governmental authority which (i) in any manner challenge or seek to prevent, enjoin, alter or materially delay the transactions contemplated by this Agreement or (ii), except as set forth in the Buyer SEC Reports filed prior to the
date of this Agreement, could reasonably be expected to have, individually or in the aggregate, a material adverse effect on Buyer. 
 (i) Warrant Shares. The Warrant Shares have been duly authorized, and when issued to Seller in accordance with the terms hereof and the terms of the Warrants, as the case may be, will be validly issued, fully paid and non-assessable
and free of any Liens. Upon issuance, the Warrant Shares will be listed on the NASDAQ Global Select market or other comparable system then in use. The Warrants will be validly issued and free of any Liens when issued in accordance with the terms of
this Agreement. 
 (j) Breach Representation. Buyer does not have Actual Knowledge of any breach of any of the
representations and warranties or covenants or other obligations of Seller contained in this Agreement except as expressly disclosed in writing to Seller. Buyer shall be deemed to have waived in full any breach of any of Seller’s
representations, warranties, covenants and obligations of which Buyer has such Actual Knowledge as of the Closing. For purposes of this paragraph, “Actual Knowledge” means the actual knowledge of a particular fact, circumstance or event by
one of the following employees of Buyer: Ray Campbell, Steve Goldberg, Jeff Haslem, Mark Hollar, Mark Holloway, Vikram Koka, Lauren Landfield, Eric Rodli and Pam Sergeeff. 
 9. Covenants. 
 (a)
Public Announcements. Except as in the opinion of counsel as may be required by applicable law or regulation, Seller and its affiliates shall not, without the written approval of the Buyer, issue any press releases or otherwise make any
public statements with respect to this Agreement or the transactions contemplated by this Agreement, provided that Seller may, after the Closing Date, notify its stockholders, customers, accountants, attorneys, and any other persons or entities in
the ordinary course of business. 
  

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 (b) Notification of Certain Matters, Further Assurances. Seller shall give prompt
notice to Buyer of any of the following which occurs, or of which it becomes aware, between the date of this Agreement and the Closing: (i) any notice of, or other communication relating to, a default or event that, with notice or lapse of time
or both, would become a default under any Seller Contract; (ii) the occurrence or existence of any fact, circumstance or event which would result in (A) any representation or warranty made by Seller in this Agreement or in any Schedule or
Exhibit to this Agreement, to be materially untrue or materially inaccurate or (B) the failure of any condition precedent to either party’s obligations; and (iii) any notice or other communication from any third party alleging that
the consent of such third party is or may be required in connection with the transactions contemplated by this Agreement. The Seller shall use commercially reasonable efforts to obtain any consents, execute any documents and take such other actions
as may reasonably be necessary to fulfill the objectives of this Agreement. Buyer shall give prompt notice to Seller of any of the following which occurs, or of which it becomes aware, between the date of this Agreement and the Closing: (i) the
occurrence or existence of any fact, circumstance or event which would result in (A) any representation or warranty made by Buyer in this Agreement or in any Schedule, Exhibit or certificate delivered herewith, to be materially untrue or
materially inaccurate or (B) the failure of any condition precedent to either party’s obligations; and (ii) any notice or other communication from any third party alleging that the consent of such third party is or may be required in
connection with the transactions contemplated by this Agreement. 
 (c) Between the date of this Agreement and the Closing,
Seller shall, except as contemplated by this Agreement: 
 (i) conduct its business relating to the Assets only in the
ordinary course of business; 
 (ii) except as otherwise directed by Buyer in writing, and without making any commitment on
Buyer’s behalf, use its commercially reasonable efforts to preserve intact its current business organization of the Self-Protecting Digital Content Business, keep available the services of its officers, employees and agents working in the
Self-Protecting Digital Content Business and maintain its relations and good will with suppliers, customers, landlords, creditors, employees, agents and others having business relationships with the Self-Protecting Digital Content Business;

 (iii) confer with Buyer prior to implementing operational decisions of a material nature relating to the Self-Protecting
Digital Content Business; 
 (iv) otherwise report periodically to Buyer concerning the status of its Self-Protecting Digital
Content Business, if requested by Buyer; 
 (v) make no material changes in personnel in the Self-Protecting Digital Content
Business without prior consultation with Buyer; 
 (vi) maintain the Assets in a state of repair and condition that is
consistent with the requirements and normal conduct of the Self-Protecting Digital Content Business; 
 (vii) keep in full
force and effect, without amendment, all material rights relating to the Assets; 
  

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 (viii) comply with all legal requirements and material contractual obligations applicable
to the Assets and the Self-Protecting Digital Content Business; 
 (ix) continue in full force and effect its insurance
coverage with respect to the Assets; and 
 (x) maintain all books and records of Seller relating to the Assets in the
ordinary course of business. 
 (d) Until the earlier to occur of (a) the Closing or (b) the termination of this
Agreement pursuant to its terms, neither Seller nor any of Seller’s officers, directors, employees, agents or other representatives shall, directly or indirectly, (i) initiate, solicit, entertain or knowingly encourage (including by way of
furnishing information regarding the Assets) any Asset Acquisition Proposal, or make any statements to third parties which may reasonably be expected to lead to any Asset Acquisition Proposal or (ii) negotiate, engage in any substantive
discussions, or enter into any agreement, with any person concerning any Asset Acquisition Proposal. Seller will promptly inform Buyer in writing of any Asset Acquisition Proposal received by them and shall provide to Buyer the name of such third
party and the material terms of any such Asset Acquisition Proposal. The covenants in this Section 9(d) will apply to any and all discussions in which Seller (or any employee or representative of Seller) is currently involved with third
parties, and Seller shall, and shall cause its employees and representatives to, immediately terminate all such discussions. For purposes of this Agreement, “Asset Acquisition Proposal” means any proposal, inquiry or offer from any person
(i) concerning the acquisition or license (other than licenses of or relating to the sale of product to customers in the ordinary course of business) of all or any portion of the Assets or (ii) the consideration or consummation of which
would be reasonably likely to materially delay the consummation of the transactions contemplated by this Agreement. 
 (e)
Each of the parties hereto hereby agrees that, subject to Section 9(a), any information obtained pursuant to the negotiation and execution of this Agreement or the effectuation of the transactions contemplated hereby shall be governed by
the terms of the Non-Disclosure Agreement, dated August 7, 2007, between Seller and Buyer (the “NDA”). 
 10.
Conditions Precedent to Buyer’s Obligations. The Buyer’s obligations hereunder (including, without limitation, its obligation to consummate the transactions contemplated hereby on the Closing Date and its incurrence of any
indemnification obligations under Section 17(c) below) are, unless waived in writing by Buyer, subject to the satisfaction of the following conditions: 
 (a) (i) Each of the representations and warranties of Seller contained in Section 7 hereof that are qualified as to
materiality shall be true and correct in all such respects on and as of the Closing Date with the same force and effect as though the same had been made on and as of the Closing Date (except that any such representations and warranties that are made
as of a specific date need to be true and correct in all such respects only as of such date), and (ii) each of the representations and warranties of Seller contained in Section 7 hereof that are not qualified as to materiality shall
be true and correct in all material respects on and as of the Closing Date with the same force and effect as though the same had been made on and as of the Closing Date (except that any such representations and warranties that are made as of a
specific date need to be true and correct in all material respects only as of such date). 
  

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 (b) Seller shall have obtained, in the form reasonably acceptable to Buyer, all required
consents to the transactions contemplated hereby and shall have arranged for the release on or prior to the Closing Date of all Liens which encumber any of the Assets, which required consents and releases of Liens are listed on Schedule 10(b)
hereto (the “Required Consents”). 
 (c) Since the date of this Agreement, no event (including a lawsuit
filed against Seller that relates to any of the Assets) shall have occurred which has resulted in or is reasonably likely to result in a Material Adverse Change on the Self-Protecting Digital Content Business. 
 (d) No order of any court or other governmental or regulatory body restraining, prohibiting or enjoining the consummation of the
transactions contemplated hereby shall be in effect or be threatened or sought by any governmental or regulatory body. 
 (e)
Buyer shall have received each of the certificates, documents, agreements and other instruments set forth in Section 12(c) hereof and each of the following certificates, documents, agreements or instruments: 
 (i) A legal opinion of Perkins Coie LLP in substantially the form of Exhibit G hereto; 
 (ii) A copy of the executed employment agreement, in the form attached hereto as Exhibit H (“Employment
Agreement”), between Buyer and the employee set forth on Schedule 10(e)(ii) (the “Main Employee”); 
 (iii) Evidence satisfactory to Buyer that the Main Employee has effectively delivered his resignation to Seller, in the form attached hereto as Exhibit I (the “Main Employee Resignation Notice”); 
 (iv) Copies of executed employment offer letters, in the forms attached hereto as Exhibit J (the “Offer Letters”),
from the employees listed on Schedule 10(e)(iv) (the “Key Employees”); and 
 (v) The Key
Employees have effectively delivered their resignations to Seller or terminated their consulting relationships with Seller, in the forms attached hereto as Exhibit K (the “Key Employees Resignations”). 
 (vi) The non-compete agreements, in the form attached hereto as Exhibit L (the “Executive Non-Competition
Agreements”), with respect to the business of the Seller executed by the executives listed on Schedule 10(e)(vi); 
 (f) The Closing Date shall have occurred on or prior to January 1, 2008. 
 (g) All authorizations, consents,
orders or approvals of, or declarations or filings with, or expiration of waiting periods imposed by, any governmental or regulatory body necessary for the consummation of the transactions contemplated by this Agreement shall have been filed,
occurred or been obtained. 
  

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 (h) Each of the covenants and obligations of the Seller to be performed at or before the
Closing Date pursuant to the terms of this Agreement shall have been duly performed in all material respects and, at the Closing, the Seller shall have delivered to Buyer a certificate to that effect, executed by an executive officer of the Seller.

 11. Conditions Precedent to Seller’s Obligations. The obligation of Seller to consummate the transactions contemplated hereby
on the Closing Date is subject to the satisfaction of the following conditions: 
 (a) Each of the representations and
warranties of Buyer contained in Section 8 hereof that are qualified as to materiality shall be true and correct in all such respects on and as of the Closing Date with the same force and effect as though the same had been made on and as
of the Closing Date (except that any such representations and warranties that are made as of a specific date need to be true and correct in all such respects only as of such date), and (ii) each of the representations and warranties of Buyer
contained in Section 8 hereof that are not qualified as to materiality shall be true and correct in all material respects on and as of the Closing Date with the same force and effect as though the same had been made on and as of the
Closing Date (except that any such representations and warranties that are made as of a specific date need to be true and correct in all material respects only as of such date). 
 (b) No order of any court or other governmental or regulatory body restraining, prohibiting or enjoining the consummation of the
transactions contemplated hereby shall be in effect or be threatened or sought by any governmental or regulatory body. 
 (c)
Seller shall have received each of the certificates, documents, agreements and other instruments set forth in Section 12(d) hereof and each of the following documents: 
 (i) A legal opinion of Heller Ehrman LLP in substantially the form of Exhibit M hereto; and 
 (ii) Buyer executes a consent to be bound by the SPDC Intellectual Property License Agreement, between Seller, Matsushita and Sony, dated
March 31, 2006, as amended on October 22, 2006 and May 16, 2007. 
 (d) All authorizations, consents, orders or
approvals of, or declarations or filings with, or expiration of waiting periods imposed by, any governmental or regulatory body necessary for the consummation of the transactions contemplated by this Agreement shall have been filed, occurred or been
obtained. 
 (e) Each of the covenants and obligations of the Buyer to be performed at or before the Closing Date pursuant to
the terms of this Agreement shall have been duly performed and, at the Closing, the Buyer shall have delivered to Seller a certificate to that effect, executed by an executive officer of the Buyer. 
  

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 (f) Since the date of this Agreement, no event shall have occurred which has resulted or
is reasonably likely to result in a material adverse effect on Buyer or Buyer’s inability to satisfy its obligations to Seller under Sections 2 and 13 of this Agreement. 
 12. The Closing. 
 (a)
The Closing of the sale of the Assets pursuant to this Agreement (herein referred to as the “Closing”) shall take place at the offices of Heller Ehrman LLP, Menlo Park, CA 94025, as promptly as practicable after the execution and
delivery of this Agreement, but no later than two business days following the satisfaction of the conditions precedent to Buyer’s and Seller’s obligations hereunder set forth in Sections 10, 11 and 12, or at such other
time and place as shall be mutually agreeable to Buyer and Seller. As used herein, the term “Closing Date” shall mean the date on which the Closing occurs. 
 (b) All corporate actions and proceedings to be taken and all documents to be executed and delivered by Seller in connection with the
consummation of the transactions contemplated hereby, including obtaining the unanimous approval of Seller’s board of directors, shall be reasonably satisfactory in form and substance to Buyer and its counsel or shall be in the form approved by
Buyer and its counsel prior to the date of this Agreement. All corporate actions and proceedings to be taken and all documents to be executed and delivered by Buyer in connection with the consummation of the transactions contemplated hereby shall be
reasonably satisfactory in form and substance to Seller and its counsel or shall be in the form approved by Seller and its counsel prior to the date of this Agreement. All corporate actions and proceedings taken and all documents to be executed and
delivered by the parties at the Closing shall be deemed to have been taken and executed simultaneously and no proceedings shall be deemed taken nor any documents executed or delivered until all have been taken, executed and delivered. 
 (c) At the Closing, Seller shall deliver to Buyer the following: 
 (i) Such bills of sale, endorsements, assignments, and other good and sufficient instruments of transfer and conveyance to vest in Buyer
good, valid and marketable title to the Assets, free and clear of all Liens, in accordance herewith, all as set forth on the Bill of Sale and Assignment and Assumption Agreement, in the form attached hereto as Exhibit N; 
 (ii) Recent certificates of good standing for Seller issued by the Secretary of State of California and the Franchise Tax Board of
California; 
 (iii) An incumbency and specimen signature certificate, in a form provided by the Buyer prior to the date of
this Agreement, dated as of the Closing Date, from Seller with respect to the officers of Seller executing this Agreement and any other document delivered hereunder by or on behalf of Seller; 
 (iv) A certificate of Seller, dated as of the Closing Date, signed by an authorized executive officer of Seller, certifying as to the
matters set forth in Sections 10(a), 10(b), 10(c) and 10(d) hereof; 
  

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 (v) A copy of the resolutions adopted by the board of directors of Seller authorizing the
execution and delivery of this Agreement and the consummation of the transactions contemplated hereby, certified by a duly authorized officer of Seller, as of the Closing Date; and 
 (vi) All required consents to the transactions contemplated hereby and releases for all Liens which encumber the Assets, all of which
Required Consents are set forth on Schedule 10(b); 
 (vii) The non-compete agreement, in the form attached hereto as
Exhibit O (the “CRI Non-Competition Agreements”), with respect to the business of the Seller executed by Seller. 
 (viii) A copy of the Escrow Agreement between Buyer and Seller, executed by Seller. 
 (ix) A
copy of the technical services agreement between Buyer and Seller, executed by Seller, in the form attached hereto as Exhibit P (the “Technical Services Agreement”); and 
 (x) Such other documents and instruments as may be reasonably requested by Buyer or its counsel to effectuate the terms of this Agreement.

 (d) At the Closing, Buyer shall deliver to Seller the following: 
 (i) A certificate of Buyer, in a form reasonably acceptable to Buyer, dated the Closing Date, signed by an executive officer or other
authorized person of Buyer, certifying as to the matters set forth in Sections 11(a), 11(b), and 11(d) hereof; 
 (ii) A copy of the Technical Services Agreement between Buyer and Seller, executed by Buyer; and 
 (iii) Such other documents and instruments as may be reasonably requested by Seller or its counsel to effectuate the terms of this Agreement. 
 13. Registration Rights. 
 (a) Registration Procedures. 
 (i) Non-Contingent Warrant. Buyer shall, subject to receipt of necessary information from Seller after request from Buyer to Seller
to provide such information, prepare and file with the SEC, within twenty (20) Business Days after the Closing Date, a registration statement on Form S-3 or, if Form S-3 is not available, then on Form S-1 (the “NCW Registration
Statement”), to enable the resale by Seller in compliance with the Securities Act of the shares of Buyer’s Common Stock issuable upon exercise of the Non-Contingent Warrant (the “NCW Warrant Shares”); and subject to
receipt of necessary information from Seller after request from Buyer to the Seller to provide such information, and subject to Section 2(a)(iv) herein, use best efforts to cause the NCW Registration Statement to become effective on or prior to
the earlier of (i) ten (10) calendar days after notification by the SEC that the NCW Registration Statement will not be reviewed and (ii) the sixtieth (60th) day after the Closing Date 

  

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(the “NCW Required Effective Date”). However, so long as Buyer filed the NCW Registration Statement within twenty (20) Business Days
after the Closing Date, if the NCW Registration Statement receives SEC review, then the NCW Required Effective Date will be the ninetieth (90th) calendar day after the Closing Date. Buyer shall in good faith fully respond to the SEC within six
(6) business days of receipt of comments from the SEC regarding the NCW Registration Statement. Buyer shall use best efforts to prepare and file with the SEC such amendments and supplements to the NCW Registration Statement in compliance with
applicable laws, and the prospectus used in connection therewith (the “NCW Prospectus”) as may be necessary to keep the NCW Registration Statement current, effective and free from any material misstatement or omission to state a
material fact for a period not exceeding, with respect to the NCW Warrant Shares, the earlier of (A) the sixth anniversary of the Closing Date, (B) the first date following the exercise of the Non-Contingent Warrant in full in which Seller
may publicly sell all then outstanding NCW Warrant Shares pursuant to Rule 144 of the Securities Act during a three (3) month period without registration, or (C) such time as all of the NCW Warrant Shares have been sold in the public
market. Buyer shall also furnish to Seller with respect to the NCW Warrant Shares registered under the NCW Registration Statement such number of copies of the NCW Registration Statement and NCW Prospectus in conformity with the requirements of the
Securities Act and such other documents as Seller may reasonably request, in order to facilitate the public sale or other disposition of all or any of the NCW Warrant Shares by Seller; file documents required of Buyer for blue sky clearance in
states specified in writing by the Seller and use best efforts to maintain such blue sky qualifications during the period Buyer is required to maintain the effectiveness of the NCW Registration Statement, provided, however, that Buyer
shall not be required to qualify to do business or consent to service of process in any jurisdiction in which it is not now so qualified or has not so consented; bear all expenses in connection with the registration of the NCW Warrant Shares
pursuant to the NCW Registration Statement (other than underwriting discounts or commissions, brokers’ fees and similar selling expenses and any other fees or expenses incurred by Seller, including attorneys’ fees); and advise Seller,
promptly after it shall receive notice or obtain knowledge of the issuance of any stop order by the SEC delaying or suspending the effectiveness of the NCW Registration Statement or of the initiation or threat of any proceeding for that purpose; and
Buyer will promptly use its best efforts to prevent the issuance of any stop order or to obtain its withdrawal as promptly as possible if such stop order should be issued. 
 (ii) Unit Warrant. Buyer shall, subject to receipt of necessary information from Seller after request from Buyer to Seller to
provide such information, prepare and file with the SEC, within ten (10) Business Days after the satisfaction of the Milestone Requirement set forth in the Unit Warrant (the “UW Filing Date”), a registration statement on Form
S-3 or, if Form S-3 is not available, then on Form S-1 (the “UW Registration Statement”), to enable the resale by Seller in compliance with the Securities Act of the shares of Buyer’s Common Stock issuable upon exercise of the
Unit Warrant (the “UW Warrant Shares”); and subject to receipt of necessary information from Seller after request from Buyer to the Seller to provide such information, use best efforts to cause the UW Registration Statement to
become effective on or prior to the earlier of (i) ten (10) calendar days after notification by the SEC that the UW Registration Statement will not be reviewed and (ii) the sixtieth (60th) day after the UW Filing Date (the
“UW Required Effective Date”). However, so long as Buyer filed the UW Registration Statement within ten (10) Business Days after the UW Filing Date, if the Registration Statement receives SEC review, then the UW Required
Effective Date will be the 

  

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ninetieth (90th) calendar day after the UW Filing Date. Buyer shall in good faith fully respond to the SEC within six (6) business days of receipt
of comments from the SEC regarding the UW Registration Statement. Buyer shall use best efforts to prepare and file with the SEC such amendments and supplements to the UW Registration Statement in compliance with applicable laws, and the prospectus
used in connection therewith (the “UW Prospectus”) as may be necessary to keep the UW Registration Statement current, effective and free from any material misstatement or omission to state a material fact for a period not exceeding,
with respect to the UW Warrant Shares, the earlier of (A) the sixth anniversary of the Closing Date, (B) the first date following the exercise of the Unit Warrant in full in which Seller may publicly sell all then outstanding UW Warrant
Shares pursuant to Rule 144 of the Securities Act during a three (3) months period without registration, or (C) such time as all of the UW Warrant Shares have been sold in the public market. Buyer shall also furnish to Seller with respect
to the UW Warrant Shares registered under the UW Registration Statement such number of copies of the UW Registration Statement and UW Prospectus in conformity with the requirements of the Securities Act and such other documents as Seller may
reasonably request, in order to facilitate the public sale or other disposition of all or any of the UW Warrant Shares by Seller; file documents required of Buyer for blue sky clearance in states specified in writing by the Seller and use best
efforts to maintain such blue sky qualifications during the period Buyer is required to maintain the effectiveness of the UW Registration Statement, provided, however, that Buyer shall not be required to qualify to do business or
consent to service of process in any jurisdiction in which it is not now so qualified or has not so consented; bear all expenses in connection with the registration of the UW Warrant Shares pursuant to the UW Registration Statement (other than
underwriting discounts or commissions, brokers’ fees and similar selling expenses and any other fees or expenses incurred by Seller, including attorneys’ fees); and advise Seller, promptly after it shall receive notice or obtain knowledge
of the issuance of any stop order by the SEC delaying or suspending the effectiveness of the UW Registration Statement or of the initiation or threat of any proceeding for that purpose; and Buyer will promptly use its best efforts to prevent the
issuance of any stop order or to obtain its withdrawal as promptly as possible if such stop order should be issued. 
 (iii)
Studio Warrant. Buyer shall, subject to receipt of necessary information from Seller after request from Buyer to Seller to provide such information, prepare and file with the SEC, within ten (10) Business Days after the satisfaction of
the Milestone Requirement set forth in the Studio Warrant (the “SW Filing Date”), a registration statement on Form S-3 or, if Form S-3 is not available, then on Form S-1 (the “SW Registration Statement”), to enable
the resale by Seller in compliance with the Securities Act of the shares of Buyer’s Common Stock issuable upon exercise of the Studio Warrant (the “SW Warrant Shares”); and subject to receipt of necessary information from
Seller after request from Buyer to the Seller to provide such information, use best efforts to cause the SW Registration Statement to become effective on or prior to the earlier of (i) ten (10) calendar days after notification by the SEC
that the SW Registration Statement will not be reviewed and (ii) the sixtieth (60th) day after the SW Filing Date (the “SW Required Effective Date”). However, so long as Buyer filed the SW Registration Statement within ten
(10) Business Days after the SW Filing Date, if the Registration Statement receives SEC review, then the SW Required Effective Date will be the ninetieth (90th) calendar day after the SW Filing Date. Buyer shall in good faith fully respond
to the SEC within six (6) business days of receipt of comments from the SEC regarding the SW Registration Statement. Buyer shall use best efforts to efforts to prepare and file with the SEC 

  

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such amendments and supplements to the SW Registration Statement in compliance with applicable laws, and the prospectus used in connection therewith (the
“SW Prospectus”) as may be necessary to keep the SW Registration Statement current, effective and free from any material misstatement or omission to state a material fact for a period not exceeding, with respect to the SW Warrant
Shares, the earlier of (A) the sixth anniversary of the Closing Date, (B) the first date following the exercise of the Studio Warrant in full in which Seller may publicly sell all then outstanding SW Warrant Shares pursuant to Rule 144 of
the Securities Act during a three (3) months period without registration, or (C) such time as all of the SW Warrant Shares have been sold in the public market. Buyer shall also furnish to Seller with respect to the SW Warrant Shares
registered under the SW Registration Statement such number of copies of the SW Registration Statement and SW Prospectus in conformity with the requirements of the Securities Act and such other documents as Seller may reasonably request, in order to
facilitate the public sale or other disposition of all or any of the SW Warrant Shares by Seller; file documents required of Buyer for blue sky clearance in states specified in writing by the Seller and use best efforts to maintain such blue sky
qualifications during the period Buyer is required to maintain the effectiveness of the SW Registration Statement, provided, however, that Buyer shall not be required to qualify to do business or consent to service of process in any
jurisdiction in which it is not now so qualified or has not so consented; bear all expenses in connection with the registration of the SW Warrant Shares pursuant to the SW Registration Statement (other than underwriting discounts or commissions,
brokers’ fees and similar selling expenses and any other fees or expenses incurred by Seller, including attorneys’ fees); and advise Seller, promptly after it shall receive notice or obtain knowledge of the issuance of any stop order by
the SEC delaying or suspending the effectiveness of the SW Registration Statement or of the initiation or threat of any proceeding for that purpose; and Buyer will promptly use its best efforts to prevent the issuance of any stop order or to obtain
its withdrawal as promptly as possible if such stop order should be issued. 
 (iv) Notwithstanding anything to the contrary
herein, the parties acknowledge that Buyer may choose to include, at its option and solely for its convenience, the NCW Warrant Shares, the UW Warrant Shares and/or the SW Warrant Shares (collectively, the “Warrant Shares”) on a
single registration statement or on a registration statement or registration statements with other similar securities. 
 (b)
Transfer of Warrant Shares; Suspension. 
 (i) Seller agrees that it will not effect any disposition of the Warrant
Shares, or its right to purchase the Warrant Shares, that would constitute a sale within the meaning of the Securities Act except as contemplated in the NCW Registration Statement, the UW Registration Statement and/or the SW Registration Statement
(collectively, the “Registration Statements”) referred to in Section 13(a) above and as described below or as otherwise permitted by law, and that it will promptly notify Buyer of any changes in the information set forth
in the Registration Statements regarding the Seller or its plan of distribution (other than changes in the number of Warrant Shares). In connection with any transfer of the Warrant Shares other than pursuant to an effective registration statement to
Buyer or to an affiliate of Seller (who is an accredited investor and executes a customary representation letter), Buyer may require the transferor thereof to provide to Buyer an opinion of counsel which opinion shall be reasonably satisfactory to
Buyer, to the effect that such transfer does not require registration of such transferred Warrant Shares under the Securities Act. 
  

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 (ii) Except in the event that paragraph (iii) below applies, Buyer shall
(A) prepare and file from time to time with the SEC a post-effective amendment to the Registration Statements or a supplement to the related Prospectuses or a supplement or amendment to any document incorporated therein by reference or file any
other required document so that such Registration Statements will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading, and so
that, as thereafter delivered to purchasers of the Warrant Shares being sold thereunder, such Prospectuses will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were made, not misleading; (B) provide Seller copies of any documents filed pursuant to this Section 13(b)(ii) as they reasonably request; and (C) inform
Seller that Buyer has complied with its obligations in this Section 13(b)(ii) (or that, if Buyer has filed a post-effective amendment to the Registration Statements which has not yet been declared effective, Buyer will notify Seller to
that effect, will use best efforts to secure the effectiveness of such post-effective amendment as promptly as possible and will promptly notify each Investor pursuant to this Section 13(b)(ii) hereof when the amendment has become
effective). 
 (iii) Subject to paragraph (iv) below, in the event (A) of any request by the SEC or any other
federal or state governmental authority during the period of effectiveness of any Registration Statement for amendments or supplements to a Registration Statement or related Prospectus or for additional information; (B) of the issuance by the
SEC or any other federal or state governmental authority of any stop order suspending the effectiveness of a Registration Statement or the initiation of any proceedings for that purpose; (C) of the receipt by Buyer of any notification with
respect to the suspension of the qualification or exemption from qualification of any of the Warrant Shares for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; or (D) of any event or circumstance
which, upon the good faith judgment of Buyer’s Board of Directors based on the advice of its counsel, necessitates the making of any changes in a Registration Statement or Prospectus, or any document incorporated or deemed to be incorporated
therein by reference, so that, in the case of a Registration Statement, it will not contain any untrue statement of a material fact or any omission to state a material fact required to be stated therein or necessary to make the statements therein
not misleading, and that in the case of a Prospectus, it will not contain any untrue statement of a material fact or any omission to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; or (E) there is a Valid Business Reason; then Buyer shall deliver a certificate in writing to Seller (the “Suspension Notice”) to the effect of the foregoing and, upon
receipt of such Suspension Notice, the Seller will refrain from selling any of the Warrant Shares pursuant to the Registration Statements (a “Suspension”) until Seller’s receipt of copies of supplemented or amended Prospectuses
prepared and filed by Buyer, or until it is advised in writing by Buyer that the current Prospectuses may be used, and has received copies of any additional or supplemental filings that are incorporated or deemed incorporated by reference in any
such Prospectuses. In the event of any Suspension, Buyer will use best efforts to cause the use of the Prospectuses so suspended to be resumed as soon as reasonably practicable, but in no 

  

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event later than twenty (20) Business Days after the delivery of a Suspension Notice to Seller. For purposes of this Section 13, the terms
“Valid Business Reason” means a determination by the Board of Directors of Buyer, in its good faith judgment, that the premature disclosure of certain material undisclosed information would materially interfere with any material
financing, acquisition, corporate reorganization, merger or other material transaction involving Buyer. 
 (iv) Provided that
a Suspension is not then in effect, Seller may sell the Warrant Shares under the applicable Registration Statement; provided, that it complies with the prospectus delivery requirements under the Securities Act. Upon receipt of a request therefor,
Buyer has agreed to provide an adequate number of current Prospectuses to the Seller and to supply copies to any other parties requiring such Prospectuses pursuant to the Securities Act. 
 (c) Indemnification. 
 (i) For the purpose of this Section 13(c): 
 (A) the term “Registration
Statement” shall include the Prospectus in the form first filed with the SEC pursuant to Rule 424(b) of the Securities Act or filed as part of such Registration Statement at the time of effectiveness if no Rule 424(b) filing is required,
and any exhibit, supplement or amendment included in or relating to such Registration Statement; and 
 (B) the term
“untrue statement” for purposes of Section 13(c) hereof shall include any untrue statement or alleged untrue statement, or any omission or alleged omission to state in a Registration Statement a material fact required to be
stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. 
 (ii) Buyer agrees to indemnify and hold harmless Seller and each person, if any, who controls Seller within the meaning of Section 15 of the Securities Act, and each officer and director of Seller from and
against any losses, claims, damages or liabilities to which Seller (or any such officer, director or controlling person) may become subject (under the Securities Act or otherwise) insofar as such losses, claims, damages or liabilities (or actions or
proceedings in respect thereof) arise out of, or are based upon (A) any breach of any of the representations or warranties of Buyer contained herein or failure to comply with any of the covenants and agreements of Buyer contained herein,
(B) any untrue statement of a material fact contained in a Registration Statement as amended at the time of effectiveness or any omission of a material fact required to be stated therein or necessary to make the statements therein not
misleading, or (C) any failure by Buyer to fulfill any undertaking included in a Registration Statement as amended at the time of effectiveness, and Buyer will reimburse Seller for any reasonable legal or other expenses reasonably incurred in
investigating, defending or preparing to defend any such action, proceeding or claim, or preparing to defend any such action, proceeding or claim; provided, however, that Buyer shall not be liable to Seller to the extent that such
loss, claim, damage or liability arises out of, or is based upon, an untrue statement made in such Registration Statement or any omission of a material fact required to be stated therein or necessary to make the statements therein not misleading in
reliance upon and in conformity with written information furnished to Buyer by or on behalf of Seller specifically for use in 

  

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preparation of the Registration Statement, or the failure of Seller to comply with its covenants and agreements contained in Section 13(b) hereof
respecting sale of the Warrant Shares, or any statement or omission in any Prospectus that is corrected in any subsequent Prospectus that was delivered to the Seller prior to the pertinent sale or sales by the Seller. 
 (iii) Seller agrees to indemnify and hold harmless Buyer (and each person, if any, who controls Buyer within the meaning of
Section 15 of the Securities Act, each officer of Buyer and each director of Buyer) from and against any losses, claims, damages or liabilities to which Buyer (or any such officer, director or controlling person) may become subject (under the
Securities Act or otherwise), insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) arise out of, or are based upon, (A) any failure of Seller to comply with the covenants and agreements contained
in Section 13(b) hereof respecting the sale of the Warrant Shares, (B) any untrue statement of a material fact contained in a Registration Statement or any omission of a material fact required to be stated therein or necessary to
make the statements therein not misleading if such untrue statement or omission was made in reliance upon and in conformity with written information furnished by or on behalf of Seller specifically for use in preparation of the Registration
Statement, and Seller will reimburse Buyer (or such officer, director or controlling person), as the case may be, for any reasonable legal or other expenses reasonably incurred in investigating, defending or preparing to defend any such action,
proceeding or claim; provided, however, that Seller’s obligations under this Section 13 shall not exceed the proceeds (net of brokers’ fees and exercise price) received by the Seller in the related sale of the
Warrant Shares. 
 (iv) Promptly after receipt by any indemnified person of a notice of a claim or the beginning of any action
in respect of which indemnity is to be sought against an indemnifying person pursuant to this Section 13(c), such indemnified person shall notify the indemnifying person in writing of such claim or of the commencement of such action, but
the omission to so notify the indemnifying person will not relieve it from any liability which it may have to any indemnified person under this Section 13(c) (except to the extent that such omission materially and adversely affects the
indemnifying person’s ability to defend such action) or from any liability otherwise than under this Section 13(c). Subject to the provisions hereinafter stated, in case any such action shall be brought against an indemnified
person, the indemnifying person shall be entitled to participate therein, and, to the extent that it shall elect by written notice delivered to the indemnified person promptly after receiving the aforesaid notice from such indemnified person, shall
be entitled to assume the defense thereof, with counsel reasonably satisfactory to such indemnified person. After notice from the indemnifying person to such indemnified person of its election to assume the defense thereof, such indemnifying person
shall not be liable to such indemnified person for any legal expenses subsequently incurred by such indemnified person in connection with the defense thereof; provided, however, that if there exists or shall exist a conflict of
interest that would make it inappropriate, in the reasonable opinion of counsel to the indemnified person, for the same counsel to represent both the indemnified person and such indemnifying person or any affiliate or associate thereof, the
indemnified person shall be entitled to retain its own counsel at the expense of such indemnifying person; provided, however, that no indemnifying person shall be responsible for the fees and expenses of more than one separate counsel
(together with appropriate local counsel) for all indemnified parties hereunder. In no event shall any indemnifying person be liable in respect of any amounts paid in settlement of any action unless the indemnifying person shall have approved the
terms of such 

  

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settlement; provided, that such consent shall not be unreasonably withheld. No indemnifying person shall, without the prior written consent of the
indemnified person, effect any settlement of any pending or threatened proceeding in respect of which any indemnified person is or could have been a party and indemnification could have been sought hereunder by such indemnified person, unless such
settlement includes an unconditional release of such indemnified person from all liability on claims that are the subject matter of such proceeding. 
 (v) If the indemnification provided for in this Section 13(c) is unavailable to or insufficient to hold harmless an indemnified person under subsection (ii) or (iii) above in respect of any losses,
claims, damages or liabilities (or actions or proceedings in respect thereof) referred to therein, then each indemnifying person shall contribute to the amount paid or payable by such indemnified person as a result of such losses, claims, damages or
liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative fault of Buyer on the one hand and Seller on the other in connection with the statements or omissions or other matters which resulted in such
losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative fault shall be determined by reference to, among other things, in the case of an untrue statement, whether
the untrue statement relates to information supplied by Buyer on the one hand or Seller on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement. Buyer and the
Seller agree that it would not be just and equitable if contribution pursuant to this subsection (v) were determined by pro rata allocation or by any other method of allocation which does not take into account the equitable considerations
referred to above in this subsection (v). The amount paid or payable by an indemnified person as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (v) shall be deemed to
include any legal or other expenses reasonably incurred by such indemnified person in connection with investigating or defending any such action or claim. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. 
 (vi) The parties to the Agreement hereby acknowledge that they are sophisticated business persons who were represented by counsel during the negotiations regarding the provisions hereof including, without limitation, the provisions of this
Section 13(c), and are fully informed regarding said provisions. They further acknowledge that the provisions of this Section 13(c) fairly allocate the risks in light of the ability of the parties to investigate Buyer and its
business in order to assure that adequate disclosure is made in the Registration Statement as required by the Securities Act and the Exchange Act. The parties are advised that federal or state public policy as interpreted by the courts in certain
jurisdictions may be contrary to certain of the provisions of this Section 13(c), and the parties hereto hereby expressly waive and relinquish any right or ability to assert such public policy as a defense to a claim under this
Section 13(c) and further agree not to attempt to assert any such defense. 
 (d) Termination of Conditions and
Obligations. The conditions precedent imposed by Section 5 or this Section 13 upon the transferability of the Warrant Shares shall cease and terminate as to any particular number of the Warrant Shares when such shares
shall have been effectively registered under the Securities Act and sold or otherwise disposed of in accordance with the intended method of disposition set forth in the Registration Statement covering such Warrant Shares or at such time as an
opinion of counsel reasonably satisfactory to Buyer shall have been rendered to the effect that such conditions are not necessary in order to comply with the Securities Act. 
  

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 14. Further Assurances. Seller and Buyer shall, whenever and as often as reasonably requested to
do so by the other, do, execute, acknowledge and deliver any and all such other and further acts, assignments and transfers and any instruments of further assurance, approvals and consents as are necessary or proper in order to complete, ensure and
perfect the sale, transfer and conveyance to Buyer of the Assets, and all other transactions, contemplated hereby. 
 15. Labor and
Employment Matters. 
 (a) On and after the Closing Date, all hiring and staffing decisions concerning Buyer’s
employees and consultants (including those employees and consultants listed on Schedule 10(e)(ii) and Schedule 10(e)(iv), but not including any consultants retained by Seller following the Closing Date) shall be within Buyer’s
sole and exclusive discretion and control. Those employees of Seller to whom Buyer shall not offer employment or who decline the employment offer of Buyer shall remain in the employ of Seller, or, at Seller’s option, may be terminated by Seller
in accordance with its personnel policies and at its expense. Seller agrees that to the extent the foregoing triggers any notice obligations under the Worker Adjustment and Retraining Notification Act (WARN), Seller shall be responsible for
providing, and shall be liable to any persons or entities who do not receive, any required notices. Employees of Seller who become employees of Buyer by accepting Buyer’s offer of employment (the “Transferred Employees”) shall
be subject to all rules, regulations, requirements and policies applicable to new hires of Buyer. 
 (b) Buyer shall not
assume any employment contracts of whatever nature or any obligations arising out of any employment contracts, express or implied, oral or written, individual or collective, between Seller and any of Seller’s employees. Nor shall Buyer assume
any obligations arising out of any pension benefit, employee welfare benefit, bonus, deferred compensation, stock purchase, stock option, severance, fringe benefit, medical insurance, life insurance or similar plan, policy or program of Seller,
whether or not covered or excluded from coverage under ERISA. Seller shall be solely responsible for complying with all of its obligations, if any, to its employees, including compliance with the provisions of ERISA, the Multi-Employer Pension Plan
Amendments Act of 1980 (MPPAA), and WARN. 
 (c) All offers of employment by Buyer to any employee of Seller shall be
conditioned on such employee terminating his or her employment with Seller on or prior to the Closing Date and waiving, to the maximum extent permitted by applicable law, all of his or her rights to make any claim or demand on Buyer or any of
Buyer’s affiliates in respect of (i) any employment contracts of whatever nature or any obligations arising out of any employment contracts, express or implied, oral or written, individual or collective, between Seller and such employee
and (ii) any obligations arising out of any pension benefit, employee welfare benefit, bonus, deferred compensation, stock purchase, stock option, severance, fringe benefit, medical insurance, life insurance or similar plan, policy or program
of Seller, whether or not covered or excluded from coverage under ERISA. 
  

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 (d) Buyer may at any time at its sole option solicit and make employment offers to any
employees of Seller who are not retained by Buyer as of Closing and Seller shall not in any manner restrict such employees from accepting such employment offers. 
 (e) On and after the Closing Date, those employees of Seller who accept the employment offer of Buyer shall be eligible for participation
under Buyer’s benefit plans and programs that are offered to Buyer’s current employees. Such employees shall not receive credit for their years of continuous service with Seller for purposes of determining participation and benefit levels
under any of Buyer’s benefit plans or programs, including, without limitation, and 401(k) plan or vesting thereunder, flexible time-off or vacation benefits, bonus plans, commission plans, severance or termination benefits or any other benefit
plans or programs. 
 (f) Seller and Buyer will (i) treat Buyer as a “successor employer” and Seller as a
“predecessor,” within the meaning of Sections 3306(b)(1) and 3121(a)(1) of the Code, with respect to Transferred Employees who are employed by Buyer for purposes of taxes imposed under the United States Federal Unemployment Tax Act
(“FUTA”) or the United States Federal Insurance Contributions Act (“FICA”) and (ii) cooperate with each other to avoid, to the extent possible, the filing of more than one IRS Form W-2 with respect to each such
Transferred Employee for the calendar year within which the Closing Date occurs. At the request of Buyer with respect to any particular applicable tax law relating to employment, unemployment insurance, social security, disability, workers’
compensation, payroll, health care or other similar tax other than taxes imposed under FICA and FUTA, Seller will and Buyer will (i) treat Buyer as a successor employer and Seller as a predecessor employer, within the meaning of the relevant
provisions of such tax law, with respect to Transferred Employees who are employed by Buyer and (ii) cooperate with each other to avoid, to the extent possible, the filing of more than one individual information reporting form pursuant to each
such tax law with respect to each such Transferred Employee for the calendar year within which the Closing Date occurs. 
 16. Survival of
Representations and Warranties. Each of the representations and warranties contained herein shall survive the Closing for a period of sixteen (16) months following the Closing Date, except that (i) the representations and warranties
contained in Section 7(k) Taxes shall survive until the expiration of the applicable statute of limitations and (ii) the representations and warranties contained in Section 7(o) Proprietary Rights shall survive for
a period of twenty-four (24) months following the Closing Date. 
 17. Indemnification. 
 (a) Subject to the limitations set forth in Sections 17(b)-17(e), Seller agrees to indemnify and hold Buyer and its affiliates and
their respective parents, stockholders, officers, directors, employees, agents, successors and assigns (each a “Buyer Indemnitee”), harmless from and against any damages, losses, liabilities, obligations, claims of any kind,
interest or expenses (including reasonable attorneys’ fees and expenses) (collectively, “Losses”), suffered, incurred or paid, directly or indirectly, as a result of, in connection with or arising out of: (i) the failure
of any representation or warranty made by the Seller in Section 7 of this Agreement or in any Schedule or Exhibit to this Agreement to be true and correct in all material respects as of the Closing Date (except for such representations
and warranties that are made as of a specific date, in which case such representation or warranty shall apply only as of such specified date); (ii) any 

  

 -31- 

 
breach by the Seller of any of its covenants or agreements contained herein; (iii) other than the Assumed Liabilities, any liability arising out of the
ownership or operation of the Assets prior to the Closing Date to the extent that such liability results from ownership or operation of the Assets prior to the Closing Date; or (iv) any Excluded Liabilities. 
 (b) Notwithstanding anything in this Agreement to the contrary, in no event shall Seller’s obligations under this
Section 17 (as supplemented by Section 18 and Section 19) exceed: (i) the Total Consideration in respect of any and all claims for Losses as a result of the failure of any Listed Representation (as set forth
on Exhibit Q hereto) to be true and correct in all material respects as of the Closing Date (except for such representations and warranties that are made as of a specific date, in which case such representation or warranty shall apply only as
of such specified date) or (ii) $6,000,000 for any and all other claims for indemnification under this Section 17 (as supplemented by Section 18 and Section 19). As used herein, “Total
Consideration” shall mean $45,000,000 less: (A) up to an aggregate of $12,000,000 for (1) corporate and individual taxes attributable to the sale of the Assets and (2) attorneys’ fees and expenses paid by Seller to defend
against an indemnity claim under Section 17 (as supplemented by Section 18 and Section 19) and (B) any amounts previously paid by Seller pursuant to Section 17(b)(ii) (as supplemented by
Section 18 and Section 19). No person shall be entitled to recovery for Losses pursuant to Section 17(a) until the total amount of Losses exceeds $250,000 (the “Basket Amount”); provided,
that to the extent the amount of Losses exceeds the Basket Amount, the Indemnified Party shall be entitled to recover the Basket Amount as well as the amount of Losses in excess of the Basket Amount. Notwithstanding anything to the contrary in this
Section 17, the threshold limits imposed by this Section 17(b) shall not apply to any damages arising out of or in connection with intentional or willful breaches of this Agreement, or fraud or similar circumstances.

 (c) Notwithstanding anything in this Agreement to the contrary, the rights set forth in this Section 17 (as
supplemented by Section 18 and Section 19 hereof) shall provide the sole and exclusive remedy of Buyer for any and all liabilities under this Agreement except as expressly provided for in Section 13(c) herein;
provided, however, that nothing herein shall prevent any party hereto from bringing an action based upon allegations of fraud or other intentional breach of this Agreement or an action seeking injunctive relief. 
 (d) Notwithstanding anything in this Agreement to the contrary, Seller shall have no obligation to indemnify or hold harmless Buyer
Indemnitee or otherwise compensate any other party hereto for Losses with respect to lost profits, restitution, damage to reputation, diminutions in value, mental or emotional distress, exemplary, consequential, special, incidental or punitive
damages. 
 (e) Effect of Insurance and Other Recoveries. The amount of any Losses for which indemnification is
provided under this Section 17 shall be reduced by (a) any amounts recovered by the Indemnified Party or any of its affiliates from any third party, and (b) any insurance proceeds or other cash receipts or source of
reimbursement received by the Indemnified Party or any of its affiliates with respect to such Losses. Buyer shall use its reasonable best efforts to mitigate the amount of any Losses. 
  

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 18. Indemnification Procedure. 
 (a) Any and all claims for indemnification (other than claims related to a Modified Representation) by any Buyer Indemnitee pursuant to
Section 17 herein, while the Escrow Fund remains in effect and available to satisfy claims for Losses pursuant to the indemnification provided for in Section 17(a), shall be made in accordance with the terms of the Escrow
Agreement. All other claims for indemnification hereunder including any and all claims relating to a Modified Representation, shall be made in accordance with the terms of this Section 18(b)-(e). 
 (b) Within a reasonable period of time after the incurrence of any Losses by any person entitled to indemnification pursuant to
Section 17 hereof (an “Indemnified Party”), including in respect of any claim by a third party described in Section 19, which might give rise to indemnification hereunder, the Indemnified Party shall deliver
to the party from which indemnification is sought (the “Indemnifying Party”) a certificate (the “Loss Certificate”), which Loss Certificate shall: 
 (i) state that the Indemnified Party has paid or properly accrued Losses or anticipates that it will incur liability for Losses for which
such Indemnified Party is entitled to indemnification pursuant to this Agreement; 
 (ii) specify in reasonable detail each
individual item of Loss included in the amount so stated, the date such item was paid or properly accrued, the basis for any anticipated liability and the nature of the misrepresentation, breach of warranty, breach of covenant or claim to which each
such item is related and the computation of the amount to which such Indemnified Party claims to be entitled hereunder; and 
 (iii) notify the Indemnifying Party that if the Indemnifying Party in good faith objects to the Loss Certificate or any portion of the Loss Certificate, the Indemnifying Party must so notify the Indemnified Party within thirty
(30) days of receipt or the claim described in the Loss Certificate shall be deemed to be an Agreed Claim that the Indemnifying Party shall be required to pay under this Agreement. 
 (c) In the event that the Indemnifying Party shall object to the indemnification of an Indemnified Party in respect of any claim or claims
specified in any Loss Certificate, the Indemnifying Party shall, within thirty (30) days after receipt by the Indemnifying Party of such Loss Certificate, deliver to the Indemnified Party a notice to such effect and the Indemnifying Party and
the Indemnified Party shall, within the thirty (30) day period beginning on the date of receipt by the Indemnified Party of such objection, attempt in good faith to agree upon the rights of the respective parties with respect to each of such
claims to which the Indemnifying Party shall have so objected. If the Indemnified Party and the Indemnifying Party shall succeed in reaching agreement on their respective rights with respect to any of such claims, the Indemnified Party and the
Indemnifying Party shall promptly prepare and sign a memorandum setting forth such agreement. Should the Indemnified Party and the Indemnifying Party be unable to agree as to any particular item or items or amount or amounts, then either the
Indemnified Party or the Indemnifying Party may submit such dispute to a court of competent jurisdiction. 
  

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 (d) Claims for Losses specified in any Loss Certificate to which an Indemnifying Party
shall not object in writing within thirty (30) days of receipt of such Loss Certificate, claims for Losses covered by a memorandum of agreement of the nature described in Section 18(c), claims for Losses the validity and amount of
which shall have been the subject of a final judicial determination, or shall have been settled with the consent of the Indemnifying Party, as described in Section 18, are hereinafter referred to, collectively, as “Agreed
Claims.” Within ten (10) days of the determination of the amount of any Agreed Claims (the “Agreed Claim Payment Date”), the Agreed Claim (i) in the case of the indemnification obligations of the Seller, shall be
paid from the Escrow Fund pursuant to the Escrow Agreement (or paid from such other sources as otherwise provided in the following sentence), subject to Section 17 above, and (ii) in the case of the indemnification obligations of
the Buyer, shall be paid in cash or such other means as may then be agreed to among Buyer and the applicable Seller Indemnitee, subject to Section 17 above. Notwithstanding anything to the contrary herein, in the case of the
indemnification obligations of the Seller, the Indemnifying Party shall have the right, in its sole discretion, to satisfy the amount of any Agreed Claim by paying the Indemnified Party (1) with an amount from the Escrow Fund, if then available
to satisfy such Agreed Claim; provided, however, that if an amount from the Escrow Fund is not then available to satisfy such Agreed Claim, the Indemnifying Party may satisfy the amount of such Agreed Claim by wire transfer in
immediately available funds to the bank account or accounts designated by the Indemnified Party in a notice to the Indemnifying Party not less than two (2) business days prior to such payment. 
 (e) All claims made against and paid out of the Escrow Fund to Buyer Indemnitees shall be made and paid in accordance herewith and with
the terms of the Escrow Agreement. 
 19. Third Party Claims. If a claim by a third party is made against any Indemnified Party, and
if such Indemnified Party intends to seek indemnity with respect thereto under Section 17, such Indemnified Party shall promptly notify the Indemnifying Party of such claims; provided, that the failure to so notify shall not relieve the
Indemnifying Party of its obligations hereunder, except to the extent that the Indemnifying Party is actually and materially prejudiced thereby. The Indemnifying Party shall have thirty (30) days after receipt of such notice to assume the
conduct and control, through counsel reasonably acceptable to the Indemnified Party at the expense of the Indemnifying Party, of the settlement or defense thereof and the Indemnified Party shall cooperate with it in connection therewith;
provided, that (i) the Indemnifying Party shall permit the Indemnified Party to participate in such settlement or defense through counsel chosen by such Indemnified Party, provided that the fees and expenses of such counsel shall be
borne by such Indemnified Party and (ii) the Indemnifying Party shall promptly be entitled to assume the defense of such action only to the extent the Indemnifying Party acknowledges its indemnity obligation; provided, further,
that the Indemnifying Party shall not be entitled to assume control of such defense and shall pay the fees and expenses of counsel retained by the Indemnified Party if (i) the Indemnified Party has been advised in writing by counsel that a
reasonable likelihood exists of a conflict of interest between the Indemnifying Party and the Indemnified Party or (ii) upon petition by the Indemnified Party, the appropriate court rules that the Indemnifying Party failed or is failing to
vigorously prosecute or defend such claim. Any Indemnified Party shall have the right to employ separate counsel in any such action or claim and to participate in the defense thereof, but the fees and expenses of such counsel shall not be at the
expense of the Indemnifying Party unless (x) the Indemnifying Party shall have 

  

 -34- 

 
failed, within a reasonable time after having been notified by the Indemnified Party of the existence of such claim as provided in the preceding sentence, to
assume the defense of such claim, (y) the employment of such counsel has been specifically authorized in writing by the Indemnifying Party, or (z) the named parties to any such action (including any impleaded parties) include both such
Indemnified Party and the Indemnifying Party and such Indemnified Party shall have been advised in writing by such counsel that there may be one or more legal defenses available to the Indemnified Party which are not available to the Indemnifying
Party, or available to the Indemnifying Party the assertion of which would be adverse to the interests of the Indemnified Party. So long as the Indemnifying Party is reasonably contesting any such claim in good faith, the Indemnified Party shall not
pay or settle any such claim. Notwithstanding the foregoing, the Indemnified Party shall have the right to pay or settle any such claim, provided that in such event it shall waive any right to indemnity therefor by the Indemnifying Party for such
claim unless the Indemnifying Party shall have consented to such payment or settlement. If the Indemnifying Party does not notify the Indemnified Party within thirty (30) days after the receipt of the Indemnified Party’s notice of a claim
of indemnity hereunder that it elects to undertake the defense thereof, the Indemnified Party shall have the right to contest, settle or compromise the claim but shall not thereby waive any right to indemnity therefor pursuant to this Agreement. The
Indemnifying Party shall not, except with the consent of the Indemnified Party, which consent shall not be unreasonably withheld, enter into any settlement that is not entirely indemnifiable by the Indemnifying Party pursuant to this Agreement and
does not include as an unconditional term thereof the giving by the person or persons asserting such claim to all Indemnified Parties of an unconditional release from all liability with respect to such claim or consent to entry of any judgment. The
Indemnifying Party and the Indemnified Party shall cooperate with each other in all reasonable respects in connection with the defense of any claim, including making available records relating to such claim and furnishing, without expense to the
Indemnifying Party and/or its counsel, such employees of the Indemnified Party as may be reasonably necessary for the preparation of the defense of any such claim or for testimony as witnesses in any proceeding relating to such claim. 
 20. Notices. Any notices or communications required or permitted hereunder shall be sufficiently given if in writing and personally delivered,
telecopied or sent by registered or certified mail, postage prepaid, return receipt requested, or sent by a nationally recognized overnight courier service, addressed as follows or to such other address as any party shall have specified in
conformity with the foregoing: 
  

	 	(a)	If to Buyer, to: 

  

	 	    	Macrovision Corporation  

	 	    	1830 De La Cruz Boulevard 

	 	    	Santa Clara, California 95050 

	 	    	Attention: General Counsel 

	 	    	Telecopy No.: (408) 567-1807 

 with a copy to:

  

	 	    	Heller Ehrman LLP 

	 	    	275 Middlefield Road 

	 	    	Menlo Park, California 94025 

	 	    	Attention: Jon E. Gavenman 

	 	    	Telecopy No.: (650) 324-0638 

  

 -35- 

	 	(b)	If to Seller, to: 

  

	 	    	Cryptography Research, Inc. 

	 	     
	 575 Market Street. 11th
Floor 

	 	    	San Francisco, CA 94105 

	 	    	Attention: Paul Kocher 

	 	    	Telecopy No.: (415) 397-0127 

 with a copy to:

  

	 	    	Perkins Coie 

	 	    	101 Jefferson Drive 

	 	    	Menlo Park, CA 94025 

	 	    	Attention: Buddy Arnheim 

	 	    	Telecopy No.: (650) 838-4350 

 21. Entire
Agreement. This Agreement, including the Exhibits, Schedules and Certificates hereto and the NDA, represent the entire understanding and agreement among the parties hereto with respect to the subject matter hereof and supersedes all prior
agreements, including that certain letter of intent, dated October 15, 2007, between Seller and Buyer. This Agreement cannot be amended, supplemented or changed, nor can any provision hereof be waived, except by a written instrument signed by
the party against whom enforcement of any such amendment, supplement, modification or waiver is sought. 
 22. Successors. This
Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, successors and assigns. Except as set forth in the first paragraph of this Agreement, no assignment of this Agreement or of any rights
or obligations hereunder may be made by any party (by operation of law or otherwise) without the prior written consent of the other parties and any attempted assignment without the required consent shall be void. Notwithstanding the foregoing, the
parties hereby agree and acknowledge that, in connection with a transfer of a Warrant to a third party in accordance with the terms and conditions of such Warrant, Seller may transfer the associated rights and obligations set forth in
Section 13 hereto related to such Warrant to the third party acquiring the Warrant, provided that (a) the transfer of the Warrant is made in full compliance with the terms of the Warrant, (b) the third party transferee agrees
in writing with the Company to be bound by the terms, conditions and obligations of Section 13 of this Agreement. 
 23.
Section Headings. The Section headings contained in this Agreement are for convenience of reference only and shall not affect in any way the meaning or interpretation of this Agreement. 
  

 -36- 

 24. Applicable Law. This Agreement shall be governed by, construed and enforced in accordance with
the laws of the State of California, without regard to the principles thereof relating to conflict of laws. 
 25. Expenses. Subject
to Section 3 and Section 13 hereof, each of the parties hereto shall pay its own expenses in connection with this Agreement and the transactions contemplated hereby. 
 26. Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under all
applicable laws and regulations. If, however, any provision of this Agreement shall be prohibited by or invalid under any such law or regulation in any jurisdiction, it shall, as to such jurisdiction, be deemed modified to conform to the minimum
requirements of such law or regulation, or, if for any reason it is not deemed so modified, it shall be ineffective and invalid only to the extent of such prohibition or invalidity without affecting the remaining provisions of this Agreement, or the
validity or effectiveness of such provision in any other jurisdiction. 
 27. Counterparts. This Agreement may be executed in one or
more counterparts, confirmed by facsimile signatures transmitted by telephone or PDF formatted signatures transmitted by electronic mail, each of which shall be deemed an original, but all of which together shall constitute one and the same
instrument. 
 28. Termination. This Agreement may be terminated and the sale of Assets contemplated hereby may be abandoned at any
time prior to the Closing Date by either party if the sale of Assets has not been consummated by January 1, 2008. 
 [Signatures follow]

  

 -37- 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement, as of the date first written
above. 
  

					
	MACROVISION CORPORATION
		
	By:	 	/s/ James Budge
		 	Name:	 	James Budge
		 	Title:	 	Chief Financial Officer
	
	 MACROVISION INTERNATIONAL
 HOLDING LIMITED
PARTNERSHIP

		
	By:	 	/s/ Stephen Yu
		 	Name:	 	Stephen Yu
		 	Title:	 	Director
	
	CRYPTOGRAPHY RESEARCH, INC.
		
	By:	 	/s/ Paul Kucher
		 	Name:	 	Paul Kucher
		 	Title:	 	PresidentAmended and Restated Stockholders' Agreement

Table of Contents

 Exhibit 10.2 
 EXECUTION VERSION 
 TARGA RESOURCES
INVESTMENTS INC. 
 AMENDED AND RESTATED 
 STOCKHOLDERS’ AGREEMENT 
 DATED AS OF OCTOBER 28, 2005 

Table of Contents

 
TABLE OF CONTENTS 
  

					
	 	 	 	  	Page
		 	ARTICLE I	  	
		 	DEFINITIONS AND RELATED MATTERS	  	
			
	 Section 1.1
	 	Definitions	  	2
	 Section 1.2
	 	Related Definitional Matters	  	10
	 Section 1.3
	 	Capital Stock Subject To Agreement	  	10
			
		 	ARTICLE II	  	
		 	STOCKHOLDERS	  	
			
	 Section 2.1
	 	Stockholders	  	11
	 Section 2.2
	 	Preemptive Rights For Capital Stock Issued By The Company	  	11
			
		 	ARTICLE III	  	
		 	RESTRICTIONS ON DISPOSITIONS OF CAPITAL STOCK	  	
			
	 Section 3.1
	 	Restrictions On Dispositions	  	13
	 Section 3.2
	 	Permitted Transfers	  	15
	 Section 3.3
	 	Notice Of Right Of First Refusal For Stock Held By Management Stockholders or Investor Stockholders (other than the Warburg Group)	  	16
	 Section 3.4
	 	Rights Of First Refusal For Stock Held By Management Stockholders or Investor Stockholders (other than the Warburg Group) — Primary Right Of First Refusal	  	17
	 Section 3.5
	 	Rights Of First Refusal For Stock Held By Management Stockholders or Investor Stockholders (other than the Warburg Group) — Secondary Right Of First Refusal	  	17
	 Section 3.6
	 	Certain Rights of Inclusion	  	18
	 Section 3.7
	 	Drag-Along Rights	  	19
	 Section 3.8
	 	Involuntary Transfers	  	22
	 Section 3.9
	 	Endorsement Of Stock Certificates	  	22
	 Section 3.10
	 	Specific Performance	  	23
	 Section 3.11
	 	Government Compliance	  	23
	 Section 3.12
	 	Fractional Shares	  	23
			
		 	ARTICLE IV	  	
		 	COMPANY RIGHTS AND OBLIGATIONS	  	
			
	 Section 4.1
	 	Vesting And Repurchase Of Management Stock; Granting of Stock Options	  	24
	 Section 4.2
	 	Repurchase Option For and Forfeiture of Management Stock and Other Capital Stock	  	24
	 Section 4.3
	 	Financial Reports	  	27
	 Section 4.4
	 	Additional Covenants	  	28

  

 i 

Table of Contents

					
		 	ARTICLE V	  	
		 	SPECIAL MANAGEMENT/GOVERNANCE PROVISIONS	  	
			
	 Section 5.1
	 	Certificate Of Incorporation: No Conflict With Agreement	  	29
	 Section 5.2
	 	Board Of Directors	  	29
	 Section 5.3
	 	Removal	  	33
	 Section 5.4
	 	Vacancies	  	33
	 Section 5.5
	 	Covenant To Vote	  	33
	 Section 5.6
	 	Business Opportunities	  	34
	 Section 5.7
	 	Investor Stockholder Rights	  	34
	 Section 5.8
	 	Amendments to Certificate of Incorporation	  	34
	 Section 5.9
	 	VCOC Rights	  	35
			
		 	ARTICLE VI	  	
		 	MISCELLANEOUS	  	
			
	 Section 6.1
	 	Manner Of Giving Notice	  	35
	 Section 6.2
	 	Waiver Of Notice	  	35
	 Section 6.3
	 	Counterpart Signatures	  	35
	 Section 6.4
	 	Severability	  	36
	 Section 6.5
	 	Joinder Of Spouses	  	36
	 Section 6.6
	 	Entire Agreement; Amendments; Agreement Controls	  	36
	 Section 6.7
	 	Governing Law And Venue	  	37
	 Section 6.8
	 	Consent To Jurisdiction; Waiver of Trial By Jury And Certain Damages	  	37
	 Section 6.9
	 	Binding Effect; Assignment	  	38
	 Section 6.10
	 	Future Actions	  	38
	 Section 6.11
	 	Construction	  	38
	 Section 6.12
	 	Termination Of This Agreement	  	38
	 Section 6.13
	 	Adjustments for Stock Splits, Etc.	  	39
	 Section 6.14
	 	Confidentiality	  	39
	 Section 6.15
	 	Certain Tax Considerations	  	40
	 Section 6.16
	 	Termination of Original Agreement	  	40
	 Section 6.17
	 	Closing under Stock Purchase Agreement	  	40
		
	Exhibit A – List of Stockholders and Share Ownership	  	
	 Exhibit B – Addendum Agreement
	  	

  

 ii 

Table of Contents

 AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT 
 THIS AMENDED AND RESTATED STOCKHOLDERS’ AGREEMENT (this “Agreement”) is made and entered into this 28th day of October 2005, among Targa
Resources Investments Inc., a Delaware corporation (the “Company”), and the stockholders of the Company whose names appear on the signature page hereto and such other Persons who become parties hereto after the date hereof by executing an
addendum agreement as provided herein (collectively, the “Stockholders”). 
 WITNESSETH: 
 WHEREAS, certain of the parties hereto entered into that certain Amended and Restated Stockholders’ Agreement dated as of April 16, 2004 (the
“Original Agreement”) setting forth their respective rights and obligations in connection with their investment in the Targa Resources, Inc., a Delaware corporation (“Targa”), and restricting their ability to sell, assign,
transfer, encumber or otherwise dispose of certain of their shares of capital stock of Targa; 
 WHEREAS, prior to the date hereof, Warburg
Pincus Netherlands Private Equity VIII II, C.V. (“WP Netherlands VIII II”) agreed to transfer all assets and liabilities and all rights and obligations held by or on behalf of WP Netherlands VIII II as a going concern to or for the benefit
of Warburg Pincus Netherlands Private Equity VIII I, C.V. (“WP Netherlands VIII I”), including all shares of capital stock of Targa formerly held by WP Netherlands VIII II; 
 WHEREAS, the Company is incorporated under the laws of the State of Delaware with an authorized capitalization of (i) 90,000,000 shares of common
stock, par value $0.001 per share (the “Common Stock”), one share of which is issued and outstanding as of the date hereof, and (ii) 10,000,000 shares of preferred stock, par value $0.001 per share (the “Preferred Stock”),
of which 1,350,500 shares have been designated the Series A Convertible Participating Preferred Stock (the “Series A Preferred”), an aggregate of 1,350,500 shares of which were issued pursuant to the Merger (as defined below) and are
outstanding as of the date hereof, and 6,650,000 shares will have been designated the Series B Convertible Participating Preferred Stock (the “Series B Preferred”) before the Closing, an aggregate of 3,253,406 shares of which will be
issued pursuant to the Reclassification (as defined below) and will be issued and outstanding before the Closing, and up to 3,200,000 additional shares of Series B Preferred which will be issued and sold pursuant to that certain Stock Purchase
Agreement of even date herewith among the Company and the investors listed on Annex A and Annex B thereto (the “Stock Purchase Agreement”); 
 WHEREAS, as a result of the merger of Targa Resources Merger Sub Inc., a Delaware corporation, with and into Targa (the “Merger”), all of the outstanding shares of capital stock of Targa were converted into
capital stock of the Company; 
 WHEREAS, following the Merger and immediately prior to the Closing, the stockholders of the Company intend
to authorize a reclassification of the Company (the “Reclassification”) pursuant to which the shares of the Company’s Series A Preferred and common stock issued to the former stockholders of Targa pursuant to the Merger will be
converted into Series B Preferred (such shares of Series B Preferred issued or reserved for issuance in connection with the recapitalization of the Company being referred to herein as the “Exchange Shares”); 

Table of Contents

 WHEREAS, in connection with the Reclassification and pursuant to the terms of the Targa 2004 Stock
Incentive Plan (as assumed by the Company), each then outstanding option to acquire a share of Common Stock will become an option to acquire 0.117549 shares of Series B Preferred and the exercise price thereof will be adjusted to become the result
of multiplying the then exercise price of $8.50 per share by 8.507097; 
 WHEREAS, the stockholders of the Company, including the parties to
the Original Agreement, desire to enter into this Agreement for the purpose of amending and restating and superseding and replacing the Original Agreement; 
 WHEREAS, each of the Stockholders (other than Persons who become Stockholders after the Closing) is, or will be upon consummation of the Closing, the owner of the number of shares of such issued and outstanding Common
Stock and/or Series B Preferred of the Company set forth opposite such Stockholder’s name on Exhibit A hereto, which exhibit shall be amended from time to time to reflect the shares of Common Stock and Series B Preferred owned by the
Stockholders and their Permitted Transferees (as defined herein); 
 WHEREAS, the parties hereto deem it in their best interests and in the
best interests of the Company to set forth their respective rights and obligations in connection with their investment in the Company; and 
 WHEREAS, the parties hereto also desire to restrict the sale, assignment, transfer, encumbrance or other disposition of the shares of Common Stock and Series B Preferred, as well as shares of Capital Stock (as defined herein) that may be
issued hereafter, and to provide for certain rights and obligations in respect thereto as hereinafter provided. 
 NOW, THEREFORE, the
Original Agreement is hereby amended and restated in its entirety as follows, is hereby superceded in its entirety by this Agreement and is hereby of no further force or effect; and 
 NOW, THEREFORE, for and in consideration of the mutual agreements and understandings set forth herein, the parties hereby agree as follows: 

ARTICLE I 
 DEFINITIONS AND
RELATED MATTERS 
 Section 1.1 Definitions. When used in this Agreement, the following terms shall have the respective
meanings set forth below: 
 “AFFILIATE” shall mean, when used with respect to a specified Person, any Person which
(a) directly or indirectly controls, is controlled by or is under common control with such specified Person, (b) is an officer, director, general partner, trustee or manager of such Person, or of a Person described in clause (a) of
this sentence or (c) is a Relative of such specified Person or of an individual described in clauses (a) or (b) of this sentence. 
  

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 “AGREEMENT” shall have the meaning set forth in the preamble of this Agreement. 
 “APPROVED SALE” shall have the meaning set forth in Section 3.7(a) of this Agreement. 
 “AUDIT COMMITTEE” shall have the meaning set forth in Section 5.2(d) of this Agreement. 
 “AVAILABLE SHARES” shall mean shares of Management Stock, including both Vested Shares and Unvested Shares, and any other Capital Stock,
including without limitation shares of Series B Preferred and Option Shares, held by a Management Stockholder (in each case including shares transferred to the Management Stockholder’s Permitted Transferees and excluding shares forfeited
pursuant to Section 4.2(a)). 
 “BUSINESS DAY” shall mean any day other than a Saturday, a Sunday, or a holiday on which
national banking associations in the State of New York are authorized by Law to close. 
 “BYLAWS” shall mean the Company’s
bylaws, certified by the secretary of the Company, as amended from time to time. 
 “CAPITAL STOCK” shall mean any and all shares
of capital stock of, or other equity interests in, the Company, and any and all warrants, options, or other rights to purchase or acquire any of the foregoing. 
 “CAUSE” shall mean discharge by the Company on the following grounds: 
 (i) An
employee’s gross negligence or willful misconduct in the performance of duties. 
 (ii) Conviction of a felony or other
crime involving moral turpitude. 
 (iii) Any employee’s willful refusal, after fifteen days’ written notice from
the Board of Directors, to perform the material lawful duties or responsibilities required of him. 
 (iv) Willful and
material breach of any corporate policy or code of conduct established by the Company. 
 (v) Willfully engaging in conduct
that is known or should be known to be materially injurious to the Company or any of its subsidiaries. 
 “CERTIFICATE OF
DESIGNATIONS” shall mean the Certificate of Designations, Preferences and Rights of the Series B Preferred, as amended from time to time in accordance therewith and with this Agreement. 
 “CERTIFICATE OF INCORPORATION” shall mean the Company’s Certificate of Incorporation, including all certificates of designation, as
amended from time to time in accordance therewith and with this Agreement. 
  

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 “CHANGE OF CONTROL” means, in one transaction or a series of related transactions, a
consolidation, merger or any other form of corporate reorganization involving the Company or a sale of Series B Preferred Stock (or a sale of Common Stock following conversion of the Series B Preferred Stock) by Stockholders with the result
immediately after such merger, consolidation, corporate reorganization or sale that (i) a single Person, together with its Affiliates, owns, if prior to a Qualified Public Offering, either a greater number of shares of Common Stock (calculated
assuming that all shares of Series B Preferred Stock have been converted at the Conversion Ratio) than Warburg and its Affiliates then own or, in the context of a consolidation, merger or other corporate reorganization in which the Company is not
the surviving entity, more voting stock generally entitled to elect directors of such surviving entity (or in the case of a triangular merger, of the parent entity of such surviving entity) than Warburg and its Affiliates then own or, if on or after
a Qualified Public Offering, either a majority of the Common Stock calculated on a fully-diluted basis (i.e. on the basis that all shares of Series B Preferred have been converted at the Conversion Ratio, that all Management Stock is outstanding,
whether vested or not, and that all outstanding options to acquire Common Stock had been exercised (whether then exercisable or not)) or, in the context of a consolidation, merger or other corporate reorganization in which the Company is not the
surviving entity, a majority of the voting stock generally entitled to elect directors of such surviving entity (or in the case of a triangular merger, of the parent entity of such surviving entity) calculated on a fully diluted basis and
(ii) Warburg and its Affiliates collectively own less than a majority of the Initial Shares owned by them or, in the event such Initial Shares are converted or exchanged into other voting securities of the Company or such surviving or parent
entity, less than a majority of such voting securities Warburg and its Affiliates would have owned had they retained all such Initial Shares. 
 “CLOSING” shall have the meaning set forth in the Stock Purchase Agreement. 
 “COMMON STOCK” shall have the
meaning set forth in the recitals of this Agreement. 
 “COMPANY” shall have the meaning set forth in the preamble of this
Agreement. 
 “COMPENSATION COMMITTEE” shall have the meaning set forth in Section 5.2(d) of this Agreement. 
 “CONFIDENTIAL INFORMATION” shall have the meaning set forth in Section 6.14 of this Agreement. 
 “CONTRACTUAL MANAGEMENT RIGHTS” shall have the meaning set forth in Section 5.9 of this Agreement. 
 “CONVERSION RATIO” shall, with respect to any share of Series B Preferred, have the meaning set forth in the Certificate of Designations.

 “DISABILITY” shall mean a Management Stockholder’s becoming incapacitated by accident, sickness or other circumstance which
renders him or her mentally or physically incapable of performing his or her duties with the Company on a full-time basis for a period of at least 180 days during any 12-month period. 
  

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 “DISPOSITION” shall mean any direct or indirect transfer, sale, assignment, hypothecation,
gift, inter vivos transfer, pledge, hedge, mortgage or other encumbrance, or any other disposition, of Capital Stock (or assets, as the case may be) whatsoever, whether voluntary or involuntary. 
 “DRAG-ALONG TRANSACTION” shall mean (i) any consolidation, merger or other business combination involving the Company in which all Capital
Stock is exchanged or converted into cash, securities of another corporation or business organization or other property, (ii) a Disposition of all or substantially all of the assets of the Company to be followed promptly by a liquidation of the
Company or a distribution to the Stockholders of all or substantially all of the net proceeds of such Disposition (after payment of applicable Company obligations), or (iii) the sale by all the Stockholders of all their Capital Stock (with the
possible exception of vested or unvested stock options outstanding immediately prior to such sale which may remain outstanding immediately after such sale). 
 “ELECTION NOTICE” shall have the meaning set forth in Section 3.5(a) of this Agreement. 
 “EXCHANGE ACT” shall mean the Securities Exchange Act of 1934, as amended from time to time, and any successor statute thereto. 
 “EXCHANGE SHARES” shall have the meaning set forth in the recitals to this Agreement. 
 “EXCLUDED SECURITIES”
shall have the meaning set forth in Section 2.2(d) of this Agreement. 
 “FIRST REFUSAL NOTICE DATE” shall have the meaning
set forth in Section 3.3(b) of this Agreement. 
 “INCLUSION NOTICE” shall have the meaning set forth in Section 3.6(b)
of this Agreement. 
 “INCLUSION RIGHT” shall have the meaning set forth in Section 3.6(c) of this Agreement. 
 “INDEPENDENT NOMINEES” shall have the meaning set forth in Section 5.2(a)(iii) of this Agreement. 
 “INITIAL SHARES” shall mean all of the shares of Capital Stock outstanding immediately following the Closing. 
 “INVESTOR STOCKHOLDERS” shall mean the Stockholders designated as such on Exhibit A hereto as amended and updated from time to time as provided
for herein. 
 “INVOLUNTARY TRANSFER” shall mean a Disposition resulting from (i) the death of a Stockholder,
(ii) bankruptcy proceedings involving a Stockholder, (iii) the entry of a divorce decree directly involving such Stockholder, (iv) the execution of either a judgment or a foreclosure by a court of Law against such Stockholder or
(v) any other event that forces such Stockholder to transfer any of its Capital Stock to a third party, including events occurring by operation of Law. 
  

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 “INVOLUNTARY TRANSFER NOTICE” shall have the meaning set forth in Section 3.8(a) of this
Agreement. 
 “IRA” shall have the meaning set forth in Section 4.4(c) of the Agreement. 
 “LAW” shall mean any applicable constitutional provision, statute, act, code, law, regulation, rule, ordinance, order, decree, ruling,
proclamation, resolution, judgment, decision, declaration, or interpretative or advisory opinion or letter of a domestic, foreign or international governmental authority or any political subdivision thereof and shall include, for the avoidance of
any doubt, the U.S. federal securities laws, the rules and regulations of the Securities and Exchange Commission and applicable rules of any national securities exchange or association. 
 “LIQUIDATION EVENT” shall have the meaning set forth in the Certificate of Designations. 
 “MAJORITY HOLDERS” shall mean, if any shares of Series B Preferred are then outstanding, the holders of at least a majority of the outstanding
shares of Series B Preferred, or, if no shares of Series B Preferred are outstanding, the holders of at least a majority of the then outstanding Common Stock (excluding Unvested Shares). 
 “MANAGEMENT NOMINEE” shall have the meaning set forth in Section 5.2(a)(i) of this Agreement. 
 “MANAGEMENT STOCK” shall mean the 6,178,382 shares of Common Stock to be granted to Management Stockholders on or after the Closing pursuant to
the terms of the 2005 Stock Incentive Plan, with the documentation for a portion of such Common Stock grants to be finalized on or after the Closing Date, any such shares transferred to a Permitted Transferee and any and all securities of any kind
whatsoever of the Company which may be issued on or after the date hereof in respect of, in exchange for, or upon conversion of such shares of Common Stock pursuant to a merger, consolidation, stock split, stock dividend, recapitalization of the
Corporation or otherwise. 
 “MANAGEMENT STOCKHOLDERS” shall mean the Stockholders designated as such on Exhibit A as amended and
updated from time to time as provided for herein. 
 “MERGER” shall have the meaning set forth in the recitals to this Agreement.

 “MERRILL LYNCH” shall mean Merrill Lynch Ventures L.P. 2001. 
 “NEW SECURITIES” shall have the meaning set forth in Section 2.2(a) of this Agreement. 
 “NON-INCLUDED TAG OFFEREE” shall have the meaning set forth in Section 3.6(e) of this Agreement. 
  

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 “NOTICE OF RIGHT OF FIRST REFUSAL” shall have the meaning set forth in Section 3.3(a) of
this Agreement. 
 “OBSERVER” shall have the meaning set forth in Section 5.2(b) of this Agreement. 
 “OFFER PRICE” shall have the meaning set forth in Section 3.3(a) of this Agreement. 
 “OFFERED NEW SECURITIES” shall have the meaning set forth in Section 2.2(a) of this Agreement. 
 “OFFERED STOCK” shall have the meaning set forth in Section 3.3(a) of this Agreement. 
 “OFFEREE” shall have the meaning set forth in Section 2.2(b) of this Agreement. 
 “OFFEROR STOCKHOLDER” shall have the meaning set forth in Section 3.3(a) of this Agreement. 
 “OPTION SHARES” shall mean shares of Common Stock issued pursuant to the exercise of options granted under the Stock Incentive Plans upon
payment of the purchase price for such shares of Common Stock subject to such options. 
 “ORIGINAL AGREEMENT” shall have the
meaning set forth in the recitals to this Agreement. 
 “ORIGINAL COST” shall mean, with respect to a particular share of Capital
Stock, the cash amount originally paid to the Company to purchase such share (or if such share was issued in respect of other shares of the Company issued in connection with the Merger, then the cash amount originally paid to Targa to purchase such
other shares), subject to adjustment for subdivisions, combinations or stock dividends involving such Capital Stock, or, if no cash amount was originally paid to the Company to purchase such share, then no consideration (or if such share was issued
in respect of other shares of the Company issued in connection with the Merger and such other shares were issued by Targa for no cash consideration, then no consideration). 
 “ORIGINAL MANAGEMENT MEMBER” shall mean Rene Joyce, Roy E. Johnson, Joe Bob Perkins, Michael A. Heim and Jeffrey J. McParland. 
 “OTHER STOCKHOLDERS” shall have the meaning set forth in Section 3.5(a) of this Agreement. 
 “PERMITTED TRANSFEREE” with respect to a transferor Stockholder shall mean (i) the spouse of the transferor Stockholder, (ii) with
respect to a Management Stockholder, a trust, or family partnership, the sole beneficiary of which is the transferor Stockholder, the spouse of, or any Person related by blood or adoption to, the transferor Stockholder, (iii) an Affiliate of an
Investor Stockholder (other than a portfolio company of Warburg (in contrast to other private equity partnerships that are Affiliates of such Investor Stockholder)), or (iv) in the context of a distribution by an Investor Stockholder of Capital
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substantially in proportion to such ownership, the partners, members or stockholders of an Investor Stockholder, or the partners, members or stockholders of
such partners, members or stockholders; provided, however, that any such transfers contemplated by (i) through (iv) do not conflict with or constitute a violation of state or federal securities Laws. 
 “PERSON” shall mean any natural person, corporation, limited partnership, general partnership, limited liability company, joint stock company,
joint venture, association, company, estate, trust, bank trust company, land trust, business trust, or other organization, whether or not a legal entity, custodian, trustee-executor, administrator, nominee or entity in a representative capacity and
any government or agency or political subdivision thereof. 
 “PERSONAL REPRESENTATIVE” shall mean the executor, administrator,
guardian, or other personal representative of any natural person who has become deceased or subject to disability, or any successor or assignee thereof whether by operation of Law or otherwise. 
 “PREEMPTIVE OFFER” shall have the meaning set forth in Section 2.2(a) of this Agreement. 
 “PREEMPTIVE OFFER ACCEPTANCE NOTICE” shall have the meaning set forth in Section 2.2(b) of this Agreement. 
 “PREEMPTIVE OFFER PERIOD” shall have the meaning set forth in Section 2.2(a) of this Agreement. 
 “PREFERRED STOCK” shall have the meaning set forth in the recitals of this Agreement. 
 “PROPORTIONATE PERCENTAGE” shall mean, with respect to a Stockholder, a fraction, expressed as a percentage, the numerator of which is the
number of shares of Common Stock held by such Stockholder (calculated on the basis that all issued and outstanding shares of Series B Preferred have been converted at the Conversion Ratio) and the denominator of which is (i) in a situation
where the Proportionate Percentage is being calculated with respect to all Stockholders, the total number of shares of Common Stock (calculated on the basis that all shares of issued and outstanding Series B Preferred have been converted at the
Conversion Ratio) held by all Stockholders at the time in question and (ii) in a situation where the Proportionate Percentage is being calculated with respect to a particular group of Stockholders, the total number of shares of Common Stock
(calculated on the basis that all shares of issued and outstanding Series B Preferred Stock have been converted at the Conversion Ratio) held by the members of such group; provided, however, that all references to “Common
Stock” in this definition exclude shares of Common Stock issuable upon the exercise of outstanding options and shall exclude Unvested Shares. 
 “QUALIFIED PUBLIC OFFERING” shall have the meaning set forth in the Certificate of Designations. 
 “REFUSED NEW
SECURITIES” shall have the meaning set forth in Section 2.2(c) of this Agreement. 
  

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 “RELATIVE” shall mean, with respect to any individual, (i) such individual’s spouse,
(ii) any direct descendent, parent, grandparent, great grandparent or sibling (in each case, whether by blood or adoption) of such individual or such individual’s spouse, and (iii) any spouse of a person described in clause
(ii) of this sentence. 
 “REPRESENTATIVES” shall have the meaning set forth in Section 6.14 of this Agreement.

 “REPURCHASE NOTICE” shall have the meaning set forth in Section 4.2(b) of this Agreement. 
 “SECURITIES ACT” shall mean the Securities Act of 1933, as amended from time to time, and any successor statute thereto. 
 “SELLING STOCKHOLDER” shall have the meaning set forth in Section 3.6(a) of this Agreement. 
 “SERIES B PREFERRED” shall have the meaning set forth in the recitals of this Agreement. 
 “STOCK EQUIVALENTS” shall have the meaning set forth in Section 3.7(c)(iii) of this Agreement. 
 “STOCK INCENTIVE PLANS” shall mean the Targa Resources Investments Inc. 2005 Stock Incentive Plan and the Targa Resources, Inc. 2004 Stock
Incentive Plan, as assumed by the Company. 
 “STOCKHOLDERS” shall have the meaning set forth in the preamble of this Agreement.

 “STOCK PURCHASE AGREEMENT” shall have the meaning set forth in the recitals of this Agreement. 
 “TAG OFFEREES” shall have the meaning set forth in Section 3.6(a) of this Agreement. 
 “TARGA” shall have the meaning set forth in the recitals of this Agreement. 
 “THIRD PARTY” shall have the meaning set forth in Section 3.3(a) of this Agreement. 
 “THIRD PARTY OFFER” shall have the meaning set forth in Section 3.3(a) of this Agreement. 
 “TRANSFEREE” shall have the meaning set forth in Section 3.6(a) of this Agreement. 
 “UNVESTED SHARES” shall mean shares of Management Stock that are not Vested Shares. 
 “VESTED SHARES” shall mean shares of Management Stock that have become vested pursuant to Section 4.1 hereof due to Vesting. 

 

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 “VESTING” shall have the meaning set forth in Section 4.1(a) of this Agreement.

 “WARBURG” shall mean, collectively, Warburg Pincus Equity VIII, L.P., Warburg Pincus Netherlands Private Equity VIII I, C.V.,
Warburg Pincus Germany Private Equity Partners VIII, K.G. and Warburg Pincus Private Equity IX, L.P.; provided that for all purposes hereunder, Warburg Pincus Equity VIII, L.P. shall be entitled to act on behalf of each of the other Persons
named in this definition (other than Warburg Pincus Private Equity IX, L.P.), and provided, further, that whenever the consent or vote of Warburg is required pursuant to this Agreement for any proposed action, such consent or vote
shall be deemed obtained or given if holders of not less than a majority of the Series B Preferred Stock (or, if no Series B Preferred Stock is outstanding, holders of not less than a majority of the Common Stock) held by the Persons named in this
definition have consented to or voted in favor of the proposed action. 
 “WARBURG GROUP” shall mean Warburg and each transferee of
Capital Stock directly or indirectly from Warburg; provided that, once a Person is designated a member of the Warburg Group, such Person shall, as long as it owns any Capital Stock, at all times be a member of the Warburg Group. 
 “WARBURG NOMINEE” shall have the meaning set forth in Section 5.2(a)(ii). 
 Section 1.2 Related Definitional Matters. Unless the context requires otherwise, as used in this Agreement: (a) pronouns in the
masculine, feminine and neuter genders shall be construed to include any other gender, and words in the singular form shall be construed to include the plural and vice versa, (b) the term “including” shall be construed to be expansive
rather than limiting in nature and to mean “including, without limitation,” (c) references to Articles and Sections refer to Articles and Sections of this Agreement; (d) the words “this Agreement,” “herein,”
“hereof,” “hereby,” “hereunder” and words of similar import refer to this Agreement as a whole, including the Exhibits and Annexes attached hereto, and not to any particular subdivision unless expressly so limited, and
(e) references to Exhibits and Annexes are to the items identified separately in writing by the parties hereto as the described Exhibits or Annexes attached to this Agreement, each of which is hereby incorporated herein and made a part hereof
for all purposes as if set forth in full herein. The descriptive headings used herein are inserted for convenience of reference only, do not constitute a part of this Agreement, and shall not affect in any manner the meaning or interpretation of
this Agreement. 
 Section 1.3 Capital Stock Subject To Agreement. Except as specifically provided otherwise in this
Agreement, this Agreement shall extend and apply to all shares of Capital Stock now owned by each of the Stockholders and to all shares of Capital Stock as may hereafter be acquired by any of the Stockholders, whether such shares constitute the
separate property or community property of any of the individual Stockholders, and regardless of the capacity in which title to such shares is held or taken. This Agreement shall also apply to all shares of Capital Stock to which the spouse of any
Stockholder is entitled by virtue of any community property or any other Laws. 
  

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 ARTICLE II 
 STOCKHOLDERS 
 Section 2.1 Stockholders. The Stockholders of the Company and the
number of shares of Capital Stock of the Company held immediately after the Closing by each are set forth in Exhibit A as such exhibit may be amended and updated from time to time. 
 Section 2.2 Preemptive Rights For Capital Stock Issued By The Company. 
 (a) Except in the case of Excluded Securities (as hereinafter defined), the Company shall not, and shall cause its subsidiaries not to, issue, sell or
exchange, agree to issue, sell or exchange, or reserve or set aside for issuance, sale or exchange any of the Capital Stock of the Company or any subsidiary of the Company (including without limitation any shares of Common Stock or Series B
Preferred, or rights to acquire any such shares, whether or not immediately exercisable and whether evidenced by an option, warrant, convertible security or other instrument or agreement) (collectively, “New Securities”), unless in each
case the Company shall have first offered or caused such subsidiary to offer (the “Preemptive Offer”) to sell such Stock to the Stockholders which own Series B Preferred and are “accredited investors” as defined in Rule 501(a)
under the Securities Act (the “Offered New Securities”) by delivery to such Stockholders of written notice of such offer stating the Company or subsidiary, as the case may be, proposes to sell such Offered New Securities, the number or
amount of the Offered New Securities proposed to be sold, the proposed purchase price therefor and any other terms and conditions of such offer. The Preemptive Offer shall by its terms remain open and irrevocable for a period of 15 days from the
date it is delivered to the Stockholders eligible to receive such notice (the “Preemptive Offer Period”). 
 (b) Each Stockholder
being offered the Offered New Securities (an “Offeree”) shall have the option, exercisable at any time during the Preemptive Offer Period by delivering written notice to the Company (a “Preemptive Offer Acceptance Notice”), to
subscribe for (i) the number or amount of such Offered New Securities up to its Proportionate Percentage of the group of such Offerees of the total number or amount of Offered New Securities proposed to be issued and (ii) up to its
Proportionate Percentage of the Offered New Securities not subscribed for by other Offerees as specified in its Preemptive Offer Acceptance Notice. Any Offered New Securities not subscribed for by an Offeree shall be deemed to be re-offered to and
accepted by the Offerees exercising their options specified in clause (ii) of the immediately preceding sentence with respect to the lesser of (A) the amount specified in their respective Preemptive Offer Acceptance Notices and (B) an
amount equal to their respective Proportionate Percentages with respect to such deemed offer. Such deemed offer and acceptance procedures described in the immediately preceding sentence shall be deemed to be repeated until either (x) all of the
Offered New Securities are deemed accepted by the Offerees or (y) the full number and amount of Offered New Securities subscribed for in all of the Preemptive Offer Acceptance Notices have been accepted. The Company shall notify each Offeree
accepting Offered New Securities hereunder within five days following the expiration of the Preemptive Offer Period of the number or amount of Offered New Securities which such Offeree has subscribed to purchase, the closing date for the sale of
such Offered New Securities (which closing shall be at a reasonable place and time within 45 days from the expiration of the applicable Preemptive Offer Period) and such other details (consistent with the Preemptive Offer) necessary and reasonable
in order to effectuate the sale of the Offered New Securities; provided, however, that the Company may elect not to sell the Offered New Securities to the Stockholders if the Stockholders do not collectively subscribe for all the
Offered New Securities. 
  

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 (c) If Preemptive Offer Acceptance Notices are not given by the Stockholders for all the Offered New
Securities, the Company shall have 45 days from the expiration of the Preemptive Offer Period to sell all of such Offered New Securities or any part of such Offered New Securities as to which Preemptive Offer Acceptances Notices have not been given
by the Stockholders (the “Refused New Securities”) to any other Persons, but only upon terms and conditions in all material respects, including price, which are no more favorable, individually or in the aggregate, to such other Persons or
less favorable, individually or in the aggregate, to the Company than those set forth in the Preemptive Offer. Upon the closing, which shall occur at a reasonable time and place within such 45-day period and at which full payment shall be made to
the Company, of the sale to such other Persons of the Refused New Securities, the accepting Stockholders shall purchase from the Company, and the Company shall sell to the accepting Stockholders, the Offered New Securities with respect to which
Preemptive Offer Acceptance Notices were delivered by the accepting Stockholders, at the terms specified in the Preemptive Offer. The issuance of such Capital Stock by the Company shall be subject to Section 3.1(e). In each case, any Offered
New Securities not purchased by the accepting Stockholders or any other Persons in accordance with this Section 2.2 within 45 days after the expiration of the Preemptive Offer Period may not be sold or otherwise disposed of until they are again
offered to the Stockholders under the procedures specified in this Section 2.2. 
 (d) The rights of the Stockholders under this
Section 2.2 shall not apply to the following New Securities (the “Excluded Securities”): 
 (i) shares of
Common Stock or Series B Preferred issued to officers, employees or directors of, or consultants to, the Company or its subsidiaries pursuant to the terms of any stock options issued or restricted stock grants made under the Stock Incentive Plans or
any other similar stock incentive plan approved by the Majority Holders; 
 (ii) New Securities issued as consideration to the
sellers in connection with an acquisition by the Company in a bona fide arms length transaction, the terms of which have been approved by the Majority Holders; 
 (iii) New Securities issued upon the exercise or conversion of any New Securities issued in compliance with this Section 2.2;

 (iv) New Securities issued in a Qualified Public Offering; 
 (v) New Securities issued as a stock dividend or upon any stock split or other pro-rata subdivision or combination of the New Securities
issued in compliance with this Section 2.2; 
 (vi) New Securities issued to any Person that is not an Investor
Stockholder or an Affiliate of any Investor Stockholder, so long as the Majority Holders have approved the waiver of the pre-emptive rights set forth in this Section 2.2 with respect to such issuance; 
  

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 (vii) New Securities of a direct or indirect subsidiary of the Company issued or sold in
a registered underwritten public offering; 
 (viii) New Securities of a subsidiary of the Company issued or transferred to
the Company or a direct or indirect wholly owned subsidiary of the Company; 
 (ix) Shares of Common Stock, Series A Preferred
or Series B Preferred issued pursuant to the Merger, the Reclassification and the Stock Purchase Agreement and shares of Common Stock issued upon the conversion of those shares of Series A Preferred and Series B Preferred; 
 (x) Management Stock; and 
 (xi) Up to 5,000 shares of Series B Preferred Stock that may be sold at any time within three months of the Closing to non-employee directors of the Company, and other Management Stockholders, which issuance has been
approved by the Company’s Board of Directors, and shares of Common Stock issued upon the conversion of those shares of Series B Preferred (such shares of Series B Preferred Stock and Common Stock collectively referred to herein as
“Additional Shares”). 
 ARTICLE III 
 RESTRICTIONS ON DISPOSITIONS OF CAPITAL STOCK 
 Section 3.1 Restrictions On
Dispositions. 
 (a) Anything in this Agreement to the contrary notwithstanding, no Disposition of Capital Stock of the Company
otherwise permitted or required by this Agreement shall be made unless such Disposition is in compliance with federal and state securities Laws, including without limitation the Securities Act and the rules and regulations thereunder. If any such
Disposition is made pursuant to an exemption from such Laws, rules and regulations, such Disposition shall be made only upon the transferee first having delivered to the Company a favorable written opinion of counsel, reasonably satisfactory in form
and substance to the Company, to the effect that the proposed Disposition is exempt from registration under the Securities Act and any applicable state securities Laws; provided, however, that no such opinion of counsel shall be
required for (A) a Disposition by a Stockholder to a Permitted Transferee if, in each case, the Permitted Transferee agrees in writing to be subject to the terms and conditions hereof to the same extent as if such Permitted Transferee were an
original Stockholder hereunder, (B) a sale duly made in compliance with Rule 144 promulgated under the Securities Act, or any successor or analogous rule to Rule 144, or if the Stockholder would be permitted to transfer the securities pursuant
to paragraph (k) of Rule 144 (it being agreed that the Company shall have the right to receive evidence reasonably satisfactory to it regarding compliance with such Rule or any successor or analogous rule prior to the consummation of any such
transfer), (C) an issuance or Disposition pursuant to an effective registration statement under the Securities Act, (D) an issuance of Series B Preferred or Common Stock pursuant to the Stock Purchase Agreement (including the issuance of
Management Stock and Additional Shares) or (E) an issuance of Option Shares. 
  

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 (b) Anything in this Agreement to the contrary notwithstanding, unless otherwise agreed to in writing by
the Company and the Majority Holders, no Disposition of Capital Stock otherwise permitted or required by this Agreement shall be effective unless and until any transferee who is not already a party to this Agreement (and such transferee’s
spouse, if applicable) shall execute and deliver to the Company an Addendum Agreement in the form attached hereto as Exhibit B in which such transferee (and such transferee’s spouse, if applicable) agrees to be bound by this Agreement and to
observe and comply with this Agreement and with all obligations and restrictions imposed on the Stockholders hereby; each Person to whom a Disposition of Capital Stock is permitted by this Agreement who receives a Disposition of Capital Stock during
the period when this Agreement is in effect, and who agrees in writing to be bound by the provisions hereof, shall thereafter become a “Stockholder” for all purposes of this Agreement. Such transferee shall become a Management Stockholder
if the transferor was a Management Stockholder and shall become an Investor Stockholder if the transferor was an Investor Stockholder; provided, however, that each transferee who receives a Disposition of Capital Stock that is a
Permitted Transferee of or is then (i) an Investor Stockholder, shall become or remain an Investor Stockholder for all purposes of this Agreement or (ii) a Management Stockholder or spouse thereof, shall become or remain a Management
Stockholder for all purposes of this Agreement. 
 (c) No Stockholder may Dispose of any Capital Stock except pursuant to a Disposition
expressly permitted herein and made in strict compliance with all applicable terms of this Agreement, and any purported Disposition of Capital Stock that does not so comply with all applicable provisions of this Agreement shall be null and void and
of no force or effect, and the Company shall not recognize or be bound by any such purported Disposition and shall not effect any such purported Disposition on the stock transfer books of the Company. The parties hereto agree that the restrictions
contained in this Article III are fair and reasonable and in the best interests of the Company and its Stockholders. 
 (d) All shares of
Capital Stock held by the Company, as treasury stock or otherwise, or any subsidiary thereof shall not be deemed outstanding for any purpose under this Agreement or the Bylaws of the Company. 
 (e) Prior to the termination of this Article III (other than Section 3.1(a)) pursuant to Section 6.12, all newly issued shares of Capital Stock
(including the issuance of Option Shares) shall only be issued to Persons who are or become party to this Agreement by executing an Addendum Agreement in the form attached hereto as Exhibit B (together with such Person’s spouse, if applicable);
provided, however, that each such acquiror who (i) is an employee, consultant or non-employee director of the Company shall become a Management Stockholder for all purposes of this Agreement, (ii) is an Investor Stockholder
shall remain an Investor Stockholder with respect to such newly acquired shares and (iii) is not an employee or consultant of the Company shall have such designation, if any, as shall be determined by the Board of Directors of the Company, with
the concurrence of the Majority Holders. 
  

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 (f) No Disposition of Management Stock or other Capital Stock (including without limitation Series B
Preferred and Options Shares) held by Management Stockholders may be made pursuant to this Article III by a Management Stockholder prior to the earlier of (i) (A) February 28, 2009 with respect to the Exchange Shares or
(B) October 31, 2010 with respect to all Management Stock or other Capital Stock (including without limitation Series B Preferred and Options Shares) held by Management Stockholders other than the Exchange Shares or (ii) the
termination of this Article III (other than Section 3.1(a)) pursuant to Section 6.12 except in accordance with Section 3.2, 3.6, 3.7, 3.8 or 4.2. 
 Section 3.2 Permitted Transfers. 
 (a) Subject to the provisions of Section 3.1
(other than Section 3.1(f)) and subject to obtaining the prior written approval of Warburg (which approval shall not be unreasonably withheld), a Management Stockholder may for estate tax purposes make a Disposition of any or all of such
Management Stockholder’s shares of Capital Stock to any Person who is a Permitted Transferee with respect to the such Management Stockholder, and such Permitted Transferee shall not be entitled to make any further Dispositions in reliance upon
this Section 3.2, except for a Disposition of such Capital Stock back to such original transferor Management Stockholder. Any shares of Capital Stock transferred by a Management Stockholder to a Permitted Transferee of such Management
Stockholder shall be deemed to continue to be owned by such Management Stockholder for purposes of Sections 4.1 and 4.2 hereof and as a condition to any such transfer, such Permitted Transferee must agree to comply with the provisions of Sections
4.1 and 4.2 as if such shares were owned by such Management Stockholder. 
 (b) Subject to the provisions of Section 3.1, an Investor
Stockholder may at any time or times make a Disposition of any or all of its Capital Stock to any Person who is a Permitted Transferee with respect to the transferor Investor Stockholder. 
 (c) A Disposition of any kind or character by any Stockholder other than Warburg otherwise prohibited by this Agreement may be permitted if approved by
the Majority Holders. 
 (d) Any conversion of the Series B Preferred in accordance with the Certificate of Designations shall be a permitted
Disposition. 
 (e) Any transfer of Management Stock by a Management Stockholder to the Company shall be a permitted Disposition. 

(f) Any transfer to a Permitted Transferee made pursuant to this Section 3.2 and any other Disposition permitted by this Section 3.2 shall
not be subject to the terms of Sections 3.3 through 3.6 hereof. 
 (g) Notwithstanding the provisions of this Section 3.2, a Stockholder
may not make a Disposition of Capital Stock to a Permitted Transferee of such Stockholder if such Disposition has as a purpose the avoidance of (or is otherwise undertaken in contemplation of avoiding the) restrictions on Dispositions in this
Agreement (it being understood that the purpose of this Section 3.2(g) is to prohibit the Disposition of Capital Stock to a Permitted Transferee followed by a change in the relationship between the transferor and the Permitted Transferee after
the Disposition with the result and effect that the transferor has indirectly made a Disposition of Capital Stock by using a Permitted Transferee, which Disposition would not have been directly permitted under this Section 3.2 had such change
in such relationship occurred prior to such Disposition). 
  

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 (h) Each Stockholder that is an entity that was formed for the sole or principal purpose of directly or
indirectly acquiring Capital Stock and that has no substantial assets other than Capital Stock or direct or indirect interests in Capital Stock agrees that (i) certificates for shares of its common stock or other instruments reflecting equity
interests in such entity (and the certificates for shares of common stock or other equity interests in any similar entities controlling such entity) will note the restrictions contained in this Agreement on the Disposition of such interests as if
such common stock or other equity interests were Capital Stock and (ii) no shares of such common stock or other equity interests may be Disposed of to any Person other than in accordance with the terms and provisions of this Agreement as if
such common stock or other equity interests were Capital Stock. 
 Section 3.3 Notice Of Right Of First Refusal For Stock Held By
Management Stockholders or Investor Stockholders (other than the Warburg Group). 
 (a) If a Management Stockholder (subject to the
restrictions in Section 3.1(f)) or an Investor Stockholder (other than a member of the Warburg Group) receives a bona fide written offer from any Person, including any other Stockholder (a “Third Party Offer”), for the purchase of all
or a part of his or its Capital Stock, in the case of a Management Stockholder, or Series B Preferred, in the case of an Investor Stockholder, that such Stockholder desires to accept, such Stockholder (the “Offeror Stockholder”)
agrees to give written notice of such Third Party Offer (the “Notice of Right of First Refusal”) to the Secretary of the Company and, within five Business Days after receipt of the Notice of Right of First Refusal by the Company, the
Company will send a copy of the Notice of Right of First Refusal to the Investor Stockholders and the Management Stockholders (other than the Offeror Stockholder). The notice must set forth the name of the proposed transferee (the “Third
Party”), the number and class of Capital Stock to be sold (the “Offered Stock”), the price per share (the “Offer Price”), all details of the payment terms and all other terms and conditions of the proposed Disposition. A
Third Party Offer may not contain provisions related to any property of the Offeror Stockholder other than the Capital Stock held by the Offeror Stockholder, and the Offer Price shall be expressed only in terms of cash (in U.S. dollars). The
Offeror Stockholder shall deliver such Notice of Right of First Refusal to the Company no less than 30 days prior to the date of the proposed Disposition. Any proposed Disposition not satisfying the terms of this Section 3.3 (e.g., a Third
Party Offer in which not all of the proposed consideration is cash) may not be made unless otherwise expressly permitted pursuant to the provisions of this Article III other than Section 3.3, 3.4 or 3.5. 
 (b) The date that the Notice of Right of First Refusal is received by the Company shall constitute the “First Refusal Notice Date.” The Company
shall be obligated to promptly determine the First Refusal Notice Date following its receipt of a Notice of Right of First Refusal, and a copy of the Notice of Right of First Refusal together with a letter indicating the First Refusal Notice Date
shall be promptly given by the Company to all applicable Investor Stockholders and Management Stockholders within five Business Days of the determination of the First Refusal Notice Date. 
  

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 Section 3.4 Rights Of First Refusal For Stock Held By Management Stockholders or Investor
Stockholders (other than the Warburg Group) — Primary Right Of First Refusal. The Company shall have the sole and exclusive option for a period of 10 days following the First Refusal Notice Date to accept, on the terms specified in the
Notice of Right of First Refusal, any Offered Stock that is held by an Offeror Stockholder. The Company may exercise such option by giving written notice of exercise to the Offeror Stockholder and to all Investor Stockholders and Management
Stockholders prior to the termination of the Company’s 10-day option period. Such notice of exercise shall refer to the Notice of Right of First Refusal and shall set forth the number of shares of Capital Stock to be acquired by the Company and
a reasonable place and time within 90 days after the date thereof for the closing of the purchase and sale of the Offered Stock. 
 Section 3.5 Rights Of First Refusal For Stock Held By Management Stockholders or Investor Stockholders (other than the Warburg Group) — Secondary Right Of First Refusal. 
 (a) If, pursuant to Section 3.4, the Company elects to purchase less than all the Offered Stock (or elects to purchase none of the Offered Stock),
the Stockholders other than the Offeror Stockholder that are “accredited investors” as defined in Rule 501(a) under the Securities Act (the “Other Stockholders”) shall have the option from the 11th to the 30th day following the
First Refusal Notice Date to accept not less than all of the Offered Stock (other than the portion which the Company has elected to purchase) in accordance with the provisions of the Notice of Right of First Refusal. The Other Stockholders may, by
agreement, allocate among themselves the right to acquire such part of the Offered Stock. In the absence of such an agreement among the Other Stockholders, each Other Stockholder will be entitled to give written notice to the Offeror Stockholder, to
the Company and to the remaining Other Stockholders, from the eleventh day to the twentieth day following the First Refusal Notice Date, of such Other Stockholder’s election (“Election Notice”) to acquire all or any part of its
Proportionate Percentage (calculated solely with respect to the Other Stockholders) of the Offered Stock that is not being acquired by the Company or the Other Stockholders including a statement of the maximum number of shares of Offered Stock that
such Other Stockholder is willing to purchase. 
 (b) Any Offered Stock not subscribed for pursuant to Section 3.5(a) as a result of all
the Other Stockholders not electing to purchase their Proportionate Percentage shall be deemed to be re-offered to and accepted by the Other Stockholders exercising their rights to purchase more than their Proportionate Percentage. Such Offered
Stock shall be allocated to such Other Stockholders in an amount equal to the lesser of (A) the maximum amount specified in their respective Election Notices and (B) an amount equal to their respective Proportionate Percentages (calculated
solely with respect to such Other Stockholders) with respect to such deemed offer. Such deemed offer and acceptance procedures described in the immediately preceding sentence shall be deemed to be repeated, to the extent required, until either
(x) all of the remaining Offered Stock is accepted by the Other Stockholders or (y) the maximum number or amount of Offered Stock that such Other Stockholders have indicated they are willing to purchase has been deemed accepted. If all the
Offered Stock is subscribed for, then the Company shall notify each Other Stockholder within five days following the expiration of the 30-day period described in Section 3.5(a) of the number or amount of Offered Stock which such Stockholder has
subscribed to purchase and shall set a reasonable place and time for the closing 

  

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of the purchase and sale of the Offered Stock, which shall be not less than 45 days nor more than 90 days after the First Refusal Notice Date. The purchase
price and terms for the Offered Stock purchased by the Other Stockholders shall be the price and terms set forth in the applicable Third Party Offer. Upon delivery of the purchase price, the Offeror Stockholders shall have no further rights as
holders of Offered Shares and shall immediately cause all certificate(s) evidencing Offered Shares to be surrendered for transfer to the Company or the purchasing Stockholders, as the case may be. 
 (c) If the Company and the Other Stockholders do not subscribe to purchase all of the Offered Stock, then the Company and the Other Stockholders shall
not be entitled to purchase such Offered Stock and all, but not less than all, of such Offered Stock may be sold by the Offeror Stockholder at any time within 90 days after the date of the Third Party Offer, subject to the provisions of
Section 3.1 hereof. Any such sale shall not be at less than the price or upon terms and conditions more favorable, individually or in the aggregate, to the purchaser than those specified in the Third Party Offer. If such Offered Stock is not so
transferred within such 90-day period, such Capital Stock may not be sold by the Offeror Stockholder without complying again in full with the provisions of this Agreement. 
 Section 3.6 Certain Rights of Inclusion. 
 (a) A member of the Warburg Group shall not sell or otherwise effect the Disposition of any Series B Preferred (in one or a series of transactions) to a third party or to the Company (in either case, the
“Transferee”) (excluding for such purpose Dispositions pursuant to Section 3.2, Dispositions subject to Section 3.7 and Dispositions in connection with a Qualified Public Offering) unless the terms and conditions of such
Disposition include an offer, on the same terms as the offer to the selling member of the Warburg Group (the “Selling Stockholder”), to each of the other Stockholders (the “Tag Offerees”), to include at the option of each Tag
Offeree, in the Disposition to the Transferee, a number of shares of such Series B Preferred owned by each Tag Offeree determined in accordance with this Section 3.6. 
 (b) The Selling Stockholder shall cause the Transferee’s offer to be reduced to writing (which writing shall include an offer to purchase or
otherwise acquire shares of such Series B Preferred from the Tag Offerees as required by this Section 3.6 and a time and place designated for the closing of such purchase, which time shall not be less than 20 days after delivery of such notice
and no more than 60 days after such delivery date) and shall send written notice of such Transferee’s offer (the “Inclusion Notice”) to each of the Tag Offerees in the manner specified in Section 6.1 hereof. 
 (c) Subject to Section 3.6(a), each Tag Offeree shall have the right (an “Inclusion Right”), exercisable by delivery of notice to the
Selling Stockholder at any time within 10 calendar days after receipt of the Inclusion Notice, together with the Selling Stockholder, to sell pursuant to such Transferee’s offer, and upon the terms and conditions set forth in the Inclusion
Notice, that number of shares of Series B Preferred requested to be included by such Tag Offeree; provided, however, that if the proposed Transferee is unwilling to purchase all of the Series B Preferred requested to be sold by all
exercising Tag Offerees together with the Selling Stockholder, then each Tag Offeree shall have the right to sell pursuant to such Transferee’s offer, and upon the terms and conditions set forth in the Inclusion Notice, a number of such Tag

  

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Offeree’s shares of Series B Preferred equal to such Tag Offeree’s Proportionate Percentage (based on the shares of Series B Preferred held by the
Selling Stockholder and Tag Offerees exercising their Inclusion Rights) of Series B Preferred proposed to be transferred by the Selling Stockholder pursuant to this Section 3.6. The definition of “Proportionate Percentage” for
purposes of this Section 3.6(c) shall be read as if the references in such definition to “Common Stock” were to Series B Preferred and the parenthetical clauses in such definition were deleted. If any Tag Offeree has exercised its
Inclusion Rights and the proposed Transferee is unwilling to purchase all of the Series B Preferred proposed to be transferred by the Selling Stockholder and all exercising Tag Offerees (determined in accordance with the first sentence of this
Section 3.6(c)), then the Selling Stockholder and each exercising Tag Offeree shall reduce, on a pro rata basis with respect to such shares of Series B Preferred, based on their respective Proportionate Percentages, the amount of such Series B
Preferred that each otherwise would have sold so as to permit the Selling Stockholder and each exercising Tag Offeree to sell the amount of Series B Preferred (determined in accordance with such reduced Proportionate Percentages) that the proposed
Transferee is willing to purchase. 
 (d) The Tag Offerees and the Selling Stockholder shall sell to the proposed Transferee all, or at the
option of the proposed Transferee, any part of the shares of such Series B Preferred proposed to be transferred by them, at not less than the price and upon the terms and conditions, if any, not more favorable, individually and in the aggregate, to
the proposed Transferee than those in the Inclusion Notice at the time and place provided for the closing in the Inclusion Notice, or at such other time and place as the Tag Offerees, the Selling Stockholder, and the proposed Transferee shall agree.

 (e) If the proposed Transferee of Series B Preferred proposed to be transferred by a Selling Stockholder is unwilling to purchase any
Series B Preferred from a Tag Offeree even after any pro rata reduction pursuant to the last sentence of Section 3.6(c) (a “Non-Included Tag Offeree”), such Non-Included Tag Offeree may elect to require such Selling Stockholder to
purchase from such Non-Included Tag Offeree, for cash (in U.S. dollars), Series B Preferred having a purchase price equal to the aggregate purchase price such Non-Included Tag Offeree would have received in connection with the closing of such sale
by the Selling Stockholder if such Non-Included Tag Offeree had been able to exercise its Inclusion Rights (but only to the extent of its Proportionate Percentage) with respect to such sale. The closing of such sale to the Selling Stockholder shall
occur concurrently with or immediately following such sale by the Selling Stockholder. 
 Section 3.7 Drag-Along Rights. 

 (a) At any time, any member of the Warburg Group may propose a Drag-Along Transaction with a Person or group of Persons who are not
members of the Warburg Group, Affiliates of any member of the Warburg Group, or Affiliates of the Company and if such proposed Drag-Along Transaction has been approved in writing by the Majority Holders (any such approved Drag-Along Transaction, an
“Approved Sale”), then all Stockholders shall consent to the Approved Sale, and if the Approved Sale is structured as (I) a merger, share exchange or consolidation of the Company, or a sale of all or substantially all of the assets of
the Company, each Stockholder entitled to vote thereon shall vote in favor of the Approved Sale and shall waive any dissenters rights, appraisal rights or similar rights in connection with such 

  

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merger, consolidation or asset sale or (II) a sale of all the Capital Stock, the Stockholders shall agree to sell all of their shares of Capital Stock which
are the subject of the Approved Sale, on the terms and conditions of such Approved Sale. The Stockholders shall promptly take all necessary and desirable actions in connection with the consummation of the Approved Sale, including using their
reasonable best efforts to obtain the consent of Board of Directors of the Company to the Approved Sale and the execution of such agreements and such instruments and other actions reasonably necessary to (1) provide customary representations,
warranties, indemnities, and escrow arrangements relating to such Approved Sale (subject to Section 3.7(c)(v)) and (2) effectuate the allocation and distribution of the aggregate consideration upon the Approved Sale as set forth in
Section 3.7(c). Notwithstanding anything to the contrary contained in this Agreement, the Stockholders shall be permitted to sell their shares of Capital Stock pursuant to an Approved Sale without complying with any other provisions of Article
III of this Agreement. 
 (b) Upon initiation of an Approved Sale pursuant to Section 3.7(a), each member of the Warburg Group shall
represent and warrant, severally and not jointly, to the other Stockholders that no additional consideration has been or is to be paid or provided by such prospective purchaser to any member of the Warburg Group or its Affiliates, pursuant to such
Approved Sale, and that the Approved Sale is not made as part of any other transaction pursuant to which any member of the Warburg Group or its Affiliates will receive any additional consideration other than based upon such member of the Warburg
Group’s or its Affiliates’ ownership of Capital Stock. The foregoing provision shall not be deemed to prohibit a Drag Along Transaction to any Person merely because such Person has, is currently having or intends to have a business
relationship with one or more Stockholders. 
 (c) The obligations of the Stockholders pursuant to this Section 3.7 are subject to the
satisfaction of the following conditions: 
 (i) upon the consummation of the Approved Sale, each Stockholder shall receive
the same proportion of the aggregate consideration from such Approved Sale that such holder would have received if such aggregate consideration had been distributed by the Company in complete liquidation pursuant to the rights and preferences set
forth in the Certificate of Incorporation of the Company as in effect immediately prior to such Approved Sale (giving effect to applicable orders of priority), and if a Stockholder receives consideration from such Approved Sale in a manner other
than as contemplated by such rights and preferences or in excess of the amount to which such Stockholder is entitled in accordance with such rights and preferences, then such Stockholders shall take such action as is necessary so that such
consideration shall be immediately reallocated among and distributed to the Stockholders in accordance with such rights and preferences; 
 (ii) if any Stockholders of a class are given an option as to the form and amount of consideration to be received, all Stockholders will be given the same option; 
 (iii)(A) all holders of options, warrants or similar rights to acquire Capital Stock (“Stock Equivalents”) that are then
currently exercisable will be given an opportunity to exercise such rights prior to the consummation of the Approved Sale (but 

  

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only to the extent such Stock Equivalents are then vested or would be vested on an accelerated basis pursuant to the terms of their issuance) and participate
in such sale as Stockholders, (B) all options issued under stock options plans of the Company that are then vested or would be vested on an accelerated basis pursuant to the terms of their issuance, but have not been exercised prior to the
consummation of the Approved Sale, will be cancelled and the holders thereof will be entitled to receive in consideration therefor, at the election of the Company in the form of cash or securities that are distributed to Stockholders pursuant to
this Section 3.7, with a value (as determined pursuant to Section 3.7(c)(vi)) in an amount equal to the aggregate value of the Common Stock acquirable upon exercise of such options (with the value of such Common Stock being the value
attributed to Common Stock pursuant to Section 3.7(c)(i) above) less the aggregate proceeds that would be payable by the option holders upon the exercise of all such options (without regard to any net exercise or cashless exercise basis), and
(C) all options issued under stock option plans of the Company that are not then vested and would not be vested on an accelerated basis on the terms of their issuance will be cancelled without consideration; 
 (iv) no Stockholder shall be obligated to make any out-of-pocket expenditure prior to the consummation of the Approved Sale (excluding
modest expenditures for postage, copies, and the like) and no Stockholder shall be obligated to pay any portion (or, if paid, shall be entitled to be reimbursed by the Company for that portion paid) that is more than its pro rata share (based upon
the amount of consideration received) of reasonable expenses incurred in connection with a consummated Approved Sale, to the extent such costs are incurred for the benefit of all Stockholders, and are not otherwise paid by the Company or the
acquiring party (costs incurred by or on behalf of a Stockholder for its sole benefit will not be considered costs of the transaction hereunder), provided that a Stockholder’s liability for such expenses shall be capped at the total
purchase price received by such Stockholder for its Capital Stock; 
 (v) no Stockholder shall be required to provide any
representations, warranties or indemnities (other than pursuant to an escrow of consideration proportionate to the amount receivable under this Section 3.7) in connection with the Approved Sale, other than those required to be made pursuant to
Section 3.7(b) to other Stockholders and those representations, warranties and indemnities concerning each Stockholder’s valid ownership of shares of Capital Stock, free of all liens and encumbrances (excluding those arising under
applicable securities Laws), and each Stockholder’s authority, power, and right to enter into and consummate such purchase or merger agreement without violating any other agreement to which such Stockholder is a party or its assets are bound;
and 
 (vi) if some or all of the consideration received in connection with the Approved Sale is other than cash, then such
consideration shall be deemed to have a dollar value equal to the fair market value of such consideration as determined by the unanimous resolution of all directors of the Board of Directors of the Company; provided that if the Board of
Directors of the Company does not or is unable to make such a determination of fair market value, such determination of fair market value shall be made by an investment banking firm of recognized national standing selected by a majority of the
directors of the Board of Directors of the Company, and such firm shall be engaged 

  

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and paid by the Company. The determination of fair market value of such investment banking firm (or, if such investment bank determines a range of fair
market values, the mid-point of such range) shall be final and binding on all parties. 
 (d) If the Company and any of the Stockholders or
their representatives, enter into any negotiation or transaction for which Rule 506 under the Securities Act (or any similar rule then in effect) may be available with respect to such negotiation or transaction (including a merger, consolidation or
other reorganization), each Stockholder who is not an “accredited investor” (as such term is defined in Rule 501 under the Securities Act (without regard to Rule 501(a)(iv)) will, at the request and election of the Investor Stockholders
which are pursuing an Approved Sale, either (i) appoint a purchaser representative (as such term is defined in Rule 501 under the Securities Act) reasonably acceptable to such Stockholders or (ii) agree to accept cash in lieu of any
securities such Stockholder would otherwise receive in an amount equal to the fair market value of such securities as determined in the manner set forth in Section 3.7(c)(vi) 
 (e) The Persons initiating an Approved Sale shall have the right to require the Company to cooperate fully with potential acquirors of the Company in a
prospective Drag Along Transaction by taking all customary and other actions reasonably requested by such Persons or such potential acquirors, including without limitation, making the Company’s properties, books and records, and other assets
reasonably available for inspection by such potential acquirors and making its employees reasonably available for interviews. 
 Section 3.8 Involuntary Transfers. 
 (a) In the event of an Involuntary Transfer of any Capital Stock by a
Management Stockholder, such Management Stockholder or his successor or transferee of Capital Stock in such Involuntary Transfer, as applicable, shall give written notice (an “Involuntary Transfer Notice”) to the Company promptly after the
occurrence of the event which caused such Involuntary Transfer. After receipt of an Involuntary Transfer Notice, the Company shall have the option for 90 days from the date of receipt of the Involuntary Transfer Notice to elect to purchase all such
Capital Stock (other than Unvested Shares) within such 90-day period at their fair market value, with Unvested Shares being subject to Section 4.2(a)(i). As used herein, “fair market value” shall mean such reasonable and fair value as
determined in the manner contemplated by Section 3.7(c)(vi). 
 (b) The closing of the purchase by the Company of securities pursuant to
this Section 3.8 shall occur on the date specified by the Company. The provisions of Sections 4.2(c), 4.2(d) and 4.2(e) shall apply to such repurchased securities as if such securities were Available Shares (as defined in Section 4.2) to
be purchased. 
 Section 3.9 Endorsement Of Stock Certificates. 
 (a) Conformed copies of this Agreement shall be filed with the Secretary of the Company and kept with the records at its principal office. An officer of
the Company shall endorse each certificate representing the shares of Capital Stock heretofore or hereafter issued by the Company to the Stockholders by causing to be placed on the face thereof the following: 
 “TRANSFER IS SUBJECT TO RESTRICTIVE STOCK LEGENDS ON BACK” 
  

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 and by causing to be placed on the back thereof the legend in substantially the following form:

 “THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS OF A STOCKHOLDERS’ AGREEMENT, AS AMENDED FROM TIME
TO TIME, BY AND AMONG THE COMPANY AND CERTAIN OTHER PERSONS, WHICH AGREEMENT CONTAINS, AMONG OTHER PROVISIONS, RESTRICTIONS ON THE TRANSFER, SALE OR OTHER DISPOSITION OF THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE. A COPY OF SUCH
STOCKHOLDERS’ AGREEMENT HAS BEEN FILED, AND IS AVAILABLE FOR REVIEW BY THE RECORD HOLDER OF THIS CERTIFICATE, AT THE PRINCIPAL OFFICE OF THE COMPANY.” 
 (b) In addition to the legend required under Section 3.9(a) above, each Stockholder agrees that each certificate representing the shares of Capital Stock of the Company heretofore or hereafter issued by the
Company shall also bear such other legends as may be required pursuant to the Stock Purchase Agreement. Any such legend shall be removed by the Company upon the request (which shall include customary representations and opinions of counsel if
reasonably requested or required by the Company) of a Stockholder when such legend is no longer applicable. 
 Section 3.10
Specific Performance. Each of the parties to this Agreement acknowledges that it shall be impossible to measure in money the damage to the Company or the Stockholder(s), if any of them or any transferee or any legal representative of any
party hereto fails to comply with any of the restrictions or obligations imposed by this Article III, that every such restriction and obligation is material, and that in the event of any such failure, the Company or the Stockholder(s) shall not have
an adequate remedy at Law or in damages. Therefore, each party hereto consents to the issuance of an injunction or the enforcement of other equitable remedies against him at the suit of an aggrieved party without the posting of any bond or other
security, to compel specific performance of all of the terms of this Article III and to prevent any Disposition of shares of Capital Stock in contravention of any terms of this Article III, and waives any defenses thereto, including, without
limitation, the defenses of: (i) failure of consideration; (ii) breach of any other provision of this Agreement; and (iii) availability of relief in damages. 
 Section 3.11 Government Compliance. In connection with any closing of a Disposition pursuant to this Article III, each of the
parties to this Agreement shall (i) use all reasonable efforts to take all steps necessary and desirable to obtain all required third-party, governmental and regulatory consents and approvals to facilitate the consummation of such Disposition,
and (ii) use reasonable efforts to delay any closing dates pursuant to this Article III to the extent required to allow any party to take such actions. 
 Section 3.12 Fractional Shares. Each of the parties hereto agrees to sell any or all fractional shares of Capital Stock owned by such party (after taking into account all Capital Stock held by such
party) to the Company, upon the request of the Company in connection with or in anticipation of the consummation of a Qualified Public Offering, for cash consideration 
 equal to the fair market value of such fractional shares, as determined in good faith by the Board of Directors. 
  

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 ARTICLE IV 
 COMPANY RIGHTS AND OBLIGATIONS 
 Section 4.1 Vesting And Repurchase Of Management Stock;
Granting of Stock Options. 
 (a) The Company and the Management Stockholders who own Management Stock hereby agree to be bound by
the provisions of this Section 4.1 notwithstanding the provisions of any restricted stock agreement relating to such Management Stock. Each Management Stockholder’s shares of Management Stock will become vested (“Vesting”) in
accordance with the following schedule, if, as of each applicable date, the Management Stockholder is still employed by the Company or any of its subsidiaries. 
 If the Management Stockholder is an Original Management Member: 
  

				
	 	  	% Vested	 
	 30th Month Following Issuance of Management Stock
	  	70	%
	 Third Anniversary Date of Issuance of Management Stock
	  	80	%
	 Fourth Anniversary Date of Issuance of Management Stock
	  	100	%

 If the Management Stockholder is not an Original Management Member: 
  

				
	 	  	% Vested	 
	 Date of Issuance of Management Stock
	  	20	%
	 First Anniversary Date of Issuance of Management Stock
	  	40	%
	 Second Anniversary Date of Issuance of Management Stock
	  	60	%
	 Third Anniversary Date of Issuance of Management Stock
	  	80	%
	 Fourth Anniversary Date of Issuance of Management Stock
	  	100	%

 (b) Upon the earliest of (x) the occurrence of a Change of Control, (y) the consummation
of a Liquidation Event and (z) the consummation of a transaction pursuant to Section 3.7, all shares of Management Stock that are not then vested shall become Vested Shares at the time of such event. Shares of Management Stock held by a
Management Stockholder that are not then vested shall become Vested Shares in connection with the death or Disability of such Management Stockholder as provided in Section 4.2(a)(i) hereof. 
 Section 4.2 Repurchase Option For and Forfeiture of Management Stock and Other Capital Stock. 
 (a) Subject to the remaining provisions of this Section 4.2, shares of Management Stock, including both Vested Shares and Unvested Shares, and any
other Capital Stock, including without limitation shares of Series B Preferred and Option Shares, held by a Management Stockholder (in each case including shares transferred to the Management Stockholder’s Permitted Transferees) are subject to
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 (i) If the Management Stockholder (other than a Management Stockholder that is a
non-employee director of the Company) ceases to be employed by the Company or any of its subsidiaries by reason of death or as a result of the Company terminating such Management Stockholder’s employment due to Disability, such Management
Stockholder’s Unvested Shares shall become Vested Shares at such termination of employment, and the Company shall have the right for one year following such termination of employment to repurchase all of such Management Stockholder’s
Vested Shares and other Capital Stock as of such termination of employment at a purchase price equal to the then fair market value of such shares determined in the same manner as is provided in Section 3.7(c)(vi). 
 (ii) If the Management Stockholder (other than a Management Stockholder that is a non-employee director of the Company) ceases to be
employed by the Company or any of its subsidiaries by reason of voluntary resignation (for any or no reason) or by reason of termination without Cause, all of such Management Stockholder’s Unvested Shares shall be forfeited to the Company for
no consideration as of such resignation or termination of employment and the Company shall have the right for one year following such resignation or termination of employment to repurchase all of such Management Stockholder’s Vested Shares and
other Capital Stock at a purchase price equal to the then fair market value of such shares determined in the same manner as is provided in Section 3.7(c)(vi). 
 (iii) If the Management Stockholder (other than a Management Stockholder that is a non-employee director of the Company) ceases to be
employed by the Company or any of its subsidiaries by reason of termination with Cause, then all of such Management Stockholder’s Unvested Shares and Vested Shares shall be forfeited to the Company for no consideration as of such termination of
employment. 
 (iv) In addition to the consequences set forth in Section 4.2(iii) above, if the Management Stockholder
(other than a Management Stockholder that is a non-employee director of the Company) ceases to be employed by the Company or any of its subsidiaries by reason of termination with Cause, the Company shall have the right for one year following such
termination of employment to repurchase all of such Management Stockholder’s other Capital Stock as of such termination of employment at a purchase price equal to the lower of the Original Cost or the then fair market value of such shares
determined in the same manner as is provided in Section 3.7(c)(vi). 
 (v) If the Management Stockholder is a
non-employee director of the Company and ceases to serve as a director of the Company by reason of death, removal (with or without cause), resignation or otherwise, all of such Management Stockholder’s Unvested Shares shall be forfeited to the
Company for no consideration as of such cessation of service, and the Company shall have the right for one year following such termination of service as a director to repurchase all such Management Stockholder’s Vested Shares and other Capital
Stock at a purchase price equal to the then fair market value of such shares determined in the same manner as is provided in Section 3.7(c)(vi). 
  

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 (b) On or before the first anniversary of the effective date of termination of the employment of a
Management Stockholder as described in the preceding subsections of this Section 4.2, the Company shall give written notice (a “Repurchase Notice”) to the holder of the Available Shares of the number or amount of Available Shares that
have been elected to be purchased by the Company, and the Company shall set a reasonable place and time from the date thereof for the closing of the purchase and sale of the Available Shares. The number of Available Shares to be repurchased shall
first be satisfied to the extent possible from the Available Shares held by the Management Stockholder at the time of delivery of the Repurchase Notice. If the number of Available Shares then held by the Management Stockholder is less than the
number of Available Shares that the Company has elected to purchase, the Company shall purchase the remaining Available Shares elected to be purchased from the Permitted Transferees of such Management Stockholder under this Agreement pro rata,
determined in each case according to the number of Available Shares held by such Permitted Transferees at the time of delivery of such Repurchase Notice (determined as nearly as practicable to the nearest whole share). 
 (c) The closing of the purchase of Available Shares pursuant to this Section 4.2 shall take place on the date designated by the Company in the
Repurchase Notice, which date shall not be more than 60 days nor less than five days after the delivery of the Repurchase Notice. The Company will pay for Available Shares to be purchased pursuant to this Section 4.2 by delivery of (i) a
check or wire transfer of funds or (ii) in the event the Company is prohibited by the Company’s Certificate of Incorporation, Bylaws, or applicable statutory or contractual provisions to purchase the Available Shares by check or a wire
transfer, a subordinated unsecured promissory note or notes payable on commercially reasonable terms if the use of such a promissory note is not prohibited, in the aggregate amount of the purchase price for such shares. Any notes issued by the
Company pursuant to this Section 4.2(c) shall be subject to any restrictive covenants (including limitations or restrictions on the payment of interest) to which the Company is subject at the time of such purchase. In the event the Company is,
during such period, prohibited from purchasing such Available Shares, including by means of issuing a promissory note, then the Company shall have the right to assign such repurchase right to the Investor Stockholders, pro rata, in accordance with
their Proportionate Percentages, or as the Investor Stockholders may otherwise agree. The purchasers of any Available Shares hereunder will be entitled to require all of the signatures of each seller of such Available Shares to be notarized and to
receive representations and warranties from each such seller regarding (A) such seller’s power, authority and legal capacity to enter into such sale and to transfer valid right, title and interest in such Available Shares, (B) such
seller’s ownership of such Available Shares and the absence of any liens, pledges, and other encumbrances on such Available Shares, and (C) the absence of any violation, default, or acceleration of any agreement or instrument pursuant to
which such seller or the assets of such seller are bound as the result of such sale. 
 (d) Should the Company or any of its assignees elect
to exercise the repurchase rights pursuant to this Section 4.2 and any seller fail to deliver all of such Capital Stock in accordance with the terms hereof, the purchaser of such Capital Stock hereunder may, at its option, in addition to all
other remedies it may have, deposit the repurchase price in an escrow account administered by the Company or an independent third party (to be held for the benefit of and payment over to such seller in accordance herewith), whereupon the Company
shall by written notice to such seller (i) cancel on its books the certificates(s) representing such Capital Stock 

  

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registered in the name of such seller and (ii) issue to the purchaser, in lieu thereof, new certificate(s) representing such Capital Stock registered in
the purchaser’s name, and all of the seller’s right, title, and interest in and to such Capital Stock shall terminate in all respects. 
 (e) In the event that Available Shares are repurchased pursuant to this Section 4.2, the holders of such Available Shares will take all steps necessary and desirable to obtain all required third-party, governmental and regulatory
consents and approvals and take all other actions necessary and desirable to facilitate consummation of such repurchase(s) in a timely manner. 
 Section 4.3 Financial Reports. 
 (a) So long as Warburg continues to own 5% of more of the Common Stock it may
be deemed to own as of the Closing by virtue of its ownership of Series B Preferred (calculated assuming that all shares of Series B Preferred have been converted at the Conversion Ratio then in effect), the Company shall furnish the following to
Warburg: 
 (i) Within 30 days after the end of each month, an operating report with key operating metrics reasonably
requested by Warburg, an unaudited consolidated balance sheet and unaudited related statement of income and statement of cash flows for such month prepared in accordance with U.S. generally accepted accounting principles, together with a comparison
of such statements to the annual budget of the Company for such periods; 
 (ii) Within 60 days after the end of each quarter,
an unaudited consolidated balance sheet as of the end of such quarter and unaudited related income statement and statement of cash flows for such quarter including any footnotes thereto (if any) prepared in accordance with U.S. generally accepted
accounting principles, consistently applied, together with a comparison of such statements to the annual budget of the Company for such periods; 
 (iii) Within 90 days after the end of each year, an audited consolidated balance sheet as of the end of such fiscal year and the related consolidated income statement, statement of stockholders equity and statement of
cash flows for such fiscal year prepared in accordance with U.S. generally accepted accounting principles, consistently applied and a signed audit letter from the Company’s auditors who shall be selected from among the “Big 4”
nationally recognized accounting firms; 
 (iv) Within 30 days before the end of each fiscal year, a consolidated annual
budget approved by the Board of Directors of the Company, together with a consolidated annual capital expenditure forecast; 
 (v) Prompt notice after the occurrence of any material event, notice of such event together with a summary describing the nature of the event and its impact on the Company; and 
 (vi) Such other information to the Stockholders entitled to receive information pursuant to this Section 4.3 as such Stockholders or
their advisors may reasonably request. 
  

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 (b) The Company shall furnish to Merrill Lynch (so long as Merrill Lynch has the right to appoint an
Observer pursuant to Section 5.2(c)) the information described in Section 4.3(a)(i) through (vi) (so long as, in the case of information described in Section 4.3(a)(vi), Warburg shall have requested the same information), as well
as all meeting materials distributed to the Board of Directors of the Company. 
 (c) Notwithstanding anything to the contrary contained in
Section 6.12, the obligations of the Company to furnish information pursuant to this Section 4.3 (other than Section 4.3(e)) shall cease upon the closing of a Qualified Public Offering. 
 (d) The Company shall use its reasonable best efforts to cause the Board of Directors to hold meetings no less frequently than quarterly, and at such
meetings the Company shall report to the Board of Directors on, among other things, its business activities, prospects and financial position. 
 (e) So long as Warburg continues to own 5% of more of the Common Stock it may be deemed to own as of the Closing by virtue of its ownership of Series B Preferred (calculated assuming that all shares of Series B Preferred owned by Warburg
have been converted at the Conversion Ratio then in effect), the Company shall permit Warburg or its representatives to visit and inspect any of the properties of the Company, including its books of account and other records (and make copies of and
take extracts from such books and records), and to discuss all aspects of the Company’s business, affairs, finances, and accounts with the Company’s officers and its independent public accountants, all at such reasonable times during the
Company’s usual business hours and as often as Warburg may reasonably request and to consult with and advise management of the Company and its subsidiaries, upon reasonable notice at reasonable times from time to time, on all matters relating
to the operation of the Company and its subsidiaries; and, to the extent the Company is required by Law or pursuant to the terms of any outstanding indebtedness of the Company to prepare the reports described in Sections 4.3(a)(i),
(ii) and (iii), the Company shall deliver to Warburg any annual reports, quarterly reports, and other periodic reports pursuant to Section 13 or 15(d) of the Exchange Act actually prepared by the Company as soon as publicly available;
provided, however, that at the Company’s request, Warburg shall execute and deliver to the Company a confidentiality agreement relating to any or all of the matters described in this Section 4.3(e) in a form reasonably
acceptable to the Company (in addition to Warburg’s obligations under Section 6.14). 
 Section 4.4 Additional
Covenants. 
 (a) Each Stockholder acknowledges and agrees that, upon any Liquidation Event, the receipt of proceeds by holders of
Capital Stock shall be in accordance with Section 4 of the Certificate of Designations. 
 (b) The Company and each Stockholder covenant
and agree that the Company shall not treat the Series B Preferred as “preferred stock” for purposes of Section 305(c) of the Code (as defined in the Stock Purchase Agreement) unless the Company receives an opinion of tax counsel based
on a change in Law that such treatment is contrary to the Code or the treasury regulations promulgated thereunder. 
  

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 (c) Each individual who executed and delivered this Agreement as a Stockholder in such individual’s
capacity as authorized agent for an individual retirement account (each an “IRA”) or in such individual’s capacity as an officer, manager or general partner of another Person shall cause such IRA or other Person, as the case may be,
to comply with the terms and provisions of this Agreement, including all obligations of such IRA or other Person, as the case may be, hereunder as a Management Stockholder or otherwise. 
 ARTICLE V 
 SPECIAL MANAGEMENT/GOVERNANCE PROVISIONS 
 Section 5.1 Certificate Of Incorporation: No Conflict With Agreement. Each Stockholder shall vote his shares of Capital Stock, and
shall take all the actions necessary, to ensure that the Certificate of Incorporation and Bylaws of the Company do not, from time to time, conflict with the provisions of this Agreement; provided, however, that nothing in this
Section 5.1 shall be interpreted as restricting in any respects the ability of the Investor Stockholders to amend the Certificate of Incorporation in accordance with the procedures established in this Agreement and the Certificate of
Incorporation for such amendment. 
 Section 5.2 Board Of Directors. 
 (a) So long as Warburg continues to own 5% of more of the Common Stock it may be deemed to own as of the Closing by virtue of its ownership of Series B
Preferred (calculated assuming that all shares of Series B Preferred owned by Warburg have been converted at the Conversion Ratio then in effect), from and after the date hereof and until the termination of this Section pursuant to
Section 6.12, the Company shall exercise all authority under applicable Law, and the Stockholders and their assigns shall vote their shares of Capital Stock, at any regular or special meeting of stockholders called for the purpose of filling
positions on the Board of Directors of the Company, or in any written consent executed in lieu of such meeting of stockholders and shall take all the actions necessary, to ensure that the Board of Directors shall consist of seven members (as
provided below) and to ensure the election to the Board of Directors of the Company of the following individuals: 
 (i) two
of whom shall be executive officers of the Company, of which one of whom shall be the chief executive officer of the Company, unless otherwise agreed by the Majority Holders (the “Management Nominee”); 
 (ii) one of whom shall be designated by Warburg Pincus Private Equity VIII, L.P., one of whom shall be designated by Warburg Pincus
Private Equity IX, L.P. and two (or one if Warburg so elects) of whom shall be designated by Warburg (collectively, the “Warburg Nominees”); and 
 (iii) one (or two if there are three Warburg Nominees) of whom shall be selected by Warburg, after consultation with the chief executive officer of the Company, and approved by the Majority Holders (the
“Independent Nominees”); provided, however, that an Independent Nominee (A) shall be independent of the Company and its subsidiaries, (B) shall not be an employee, advisor or consultant of the Company, an employee of a
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member of the Warburg Group (but may be an employee of a Person that is controlled by (but is not a subsidiary of) a member of the Warburg Group other than
the Company or a subsidiary of the Company) and (C) shall, in the good faith judgment of the holders of a majority of the outstanding Series B Preferred, have relevant midstream energy experience. 
 (b) So long as Warburg continues to own 5% or more of the Common Stock it may be deemed to own as of the Closing by virtue of its ownership of Series B
Preferred (calculated assuming that all shares of Series B Preferred owned by Warburg have been converted at the Conversion Ratio then in effect), the Warburg Group shall have the right to have observers (each, an “Observer”) and any other
person approved by the Board of Directors attend each meeting of the Board of Directors and any committee thereof. 
 (c) So long as Merrill
Lynch continues to own 80% or more of the Common Stock it may be deemed to own as of the Closing by virtue of its ownership of Series B Preferred (calculated assuming that all shares of Series B Preferred owned by Merrill Lynch have been converted
at the Conversion Ratio), Merrill Lynch shall have the right to have one Observer (who is reasonably acceptable to Warburg) attend each meeting of the Board of Directors and any committee thereof. 
 (d) The Company shall have an audit committee (the “Audit Committee”), a compensation committee (the “Compensation Committee”) and
such other committees established by the Board of Directors in accordance with the Certificate of Incorporation and the Bylaws of the Company. The Warburg Nominees will be entitled to constitute a majority of the members of all committees of the
Board of Directors. 
 (e) None of the Warburg Nominees who are employees of a member of the Warburg Group or any of their Affiliates, will
receive any consideration for serving on the Board of Directors prior to the closing of a Qualified Public Offering. All of the members of the Board of Directors will be entitled to reimbursement for reasonable out-of-pocket expenses in attending
meetings of the Board of Directors. 
 (f) Actions by the Board of Directors shall be decided by majority vote, except as otherwise provided
herein or in the Certificate of Incorporation. 
 (g) The Company shall not do or agree to do, or permit any of its subsidiaries to do or
agree to do, any of the following without the prior written consent of the Majority Holders (subject to Sections 5.2(h), 5.2(i) and 5.8): 
 (i) repurchase (directly, by merger or otherwise) any Capital Stock or equity-linked securities of the Company or any subsidiary of the Company other than Capital Stock purchased from Management Stockholders pursuant
to this Agreement or the Stock Purchase Agreement; 
 (ii) issue (directly, by merger or otherwise) any Capital Stock or
equity-linked securities of the Company or any subsidiary of the Company other than (A) stock or securities issued pursuant to the Stock Incentive Plans as in effect on the date hereof (including Management Stock issued thereunder), and any
Capital Stock issued upon conversion or exercise thereof, and (B) Capital Stock or securities referred to in Sections 2.2(d)(iii), (v), (viii), (ix), (x), or (xi); 
  

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 (iii) declare or pay any dividends or distributions on the Company’s Capital Stock,
other than as required in the Certificate of Incorporation; 
 (iv) incur aggregate indebtedness in excess of $10,000,000;

 (v) amend (by merger or otherwise) or otherwise modify the Company’s Certificate of Incorporation or Bylaws;

 (vi) acquire or form any subsidiary; provided, however, that each holder of Series B Preferred agrees to
consent to such acquisition or formation of a wholly owned subsidiary formed or incorporated under the laws of any jurisdiction in the United States if the Company agrees in an agreement in form and substance satisfactory to such holder in its
reasonable discretion to the effect that: (i) such subsidiary’s board of directors and committees thereof will consist of the same individuals who serve on the Board of Directors and committees thereof of the Company and Stockholders
having rights to Observers on the Board of Directors and committees thereof of the Company will have the same rights with respect to the boards of directors and committees of such subsidiaries; (ii) the officers of each subsidiary are to be
those persons so identified by the Board of Directors; and (iii) the corporate governance, management, business and affairs of such subsidiary, including action taken at meetings or by written consent of such subsidiary’s board of
directors or sole stockholder, is to be conducted in all respects as if (A) the provisions of such subsidiary’s certificate of incorporation and bylaws were identical to those of the Company and (B) the subsidiary was itself the
corporation referred to in this Agreement as the “Company,” and thus was a party to this Agreement (except to the extent provisions of this Agreement clearly do not apply to a subsidiary); 
 (vii) enter into, modify, amend or terminate any transaction with any executive officers, directors, or Affiliates of the Company other
than (A) compensatory arrangements with executive officers approved by the Compensation Committee (other than employment agreements with officers of the Company or any of its subsidiaries), (B) the offer and sale of Capital Stock or
equity-linked securities of the Company or any subsidiary of the Company with respect to which a Preemptive Offer has been made pursuant to Section 2.2 hereof and with respect to which the Board of Directors has determined in good faith, by
resolution, that such stock or securities are being issued for fair value, and (C) Capital Stock purchased from Management Stockholders pursuant to this Agreement or the Stock Purchase Agreement; 
 (viii) approve or effect an underwritten public offering of any Capital Stock; 
 (ix) approve or engage in any consolidation, merger or other business combination involving the Company; 
 (x) effect a Liquidation Event; 
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 (xii) approve or make any expenditure during the fiscal year covered by the
Company’s annual budget approved in accordance with clause (x) above that in the aggregate exceed the aggregate amounts approved for all expenditures in the annual budget by more than $7,500,000; 
 (xiii) approve or enter into any material contract, agreement, commitment, guarantee or obligation, including those relating to hedging,
derivatives or marketing except within limits previously approved by the Board of Directors; 
 (xiv) make any acquisitions
during any fiscal year that in the aggregate exceed $5,000,000, or enter into any agreement, commitment or option with respect thereto; 
 (xv) sell or divest, or enter into any agreement, commitment or option to sell or divest, assets representing $5,000,000 or more in the aggregate; and 
 (xvi) grant or issue options or restricted stock pursuant to the Company’s 2005 Stock Incentive Plan or otherwise, other than the
following, for which the prior written consent of the Majority Holders shall not be required: (1) options to purchase up to an aggregate of 566,736 shares with an exercise price of no less than the greater of $0.75 or the fair market value of a
share of Common Stock on the date of the option grant, with a vesting schedule no more favorable than the Vesting for Management Stock contained in Section 4.1 of this Agreement (with respect to a Management Stockholder who is not an Original
Management Member), and with a term of no more than 10 years, (2) options to purchase up to an aggregate of 2,487,902 shares with an exercise price of no less than $3.00 per share, with a vesting schedule no more favorable than the Vesting for
Management Stock contained in Section 4.1 of this Agreement (with respect to a Management Stockholder who is not an Original Management Member), and with a term of no more than 10 years, (3) options to purchase an aggregate of 2,105,148
shares, with an exercise price of no less than $15.00 per share, with a vesting schedule no more favorable than the Vesting for Management Stock contained in Section 4.1 of this Agreement (with respect to a Management Stockholder who is not an
Original Management Member), and with a term of no more than 10 years, (4) restricted stock of up to an aggregate of 6,178,382 shares of Common Stock; provided, however, that the foregoing grants and issuances shall only be permitted without
the prior written consent of the Majority Holders to the extent any such grant or issuance is made pursuant to a form of stock option agreement or restricted stock agreement issued under the Company’s 2005 Stock Incentive Plan or any other
incentive plan that has been approved by the Majority Holders. 
 (h) The Company shall not, and shall not permit any of its subsidiaries to,
without the prior written consent of Merrill Lynch (which consent shall not be unreasonably withheld or delayed), enter into any material transaction with the Warburg Group or any of its Affiliates (other than the Company, any subsidiary of the
Company or any manager, director or officer of the Company or any subsidiary of the Company). The foregoing limitation shall not apply to: (i) transactions contemplated by this Agreement (it being understood that transactions between the
Company or any of its subsidiaries and the Warburg Group or its Affiliates (other than the Company, any subsidiary of the Company or any manager, director or officer of the Company or 

  

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any subsidiary of the Company) permitted pursuant to Section 5.2(g) (other than Sections 5.2(g)(ii), 5.2(g)(iii), 5.2(g)(v) and 5.2(g)(x)) shall not be
deemed to be contemplated by this Agreement), (ii) issuances by the Company of New Securities to the Warburg Group for which Merrill Lynch has preemptive rights under Section 2.2, or (iii) transactions in the ordinary course of
business between the Company and portfolio companies of the Warburg Group. For purposes of this Section 5.2(h), if Merrill Lynch does not deliver to the Company a written objection to a request for consent within 20 days of the delivery of such
a request for consent, Merrill Lynch shall be deemed to have consented to such request. 
 (i) So long as Merrill Lynch continues to own 80%
or more of the Common Stock it may be deemed to own as of the Closing by virtue of its ownership of Series B Preferred (calculated assuming that all shares of Series B Preferred owned by Merrill Lynch have been converted at the Conversion Ratio),
the Company shall not, without the prior written consent of Merrill Lynch (which consent shall not be unreasonably withheld or delayed), declare or pay any dividend or distribution on any Common Stock or other capital stock of the Company ranking
junior to the Series B Preferred with respect to the payment of dividends or any distributions of assets upon any Liquidation Event, other than a dividend payable solely in Common Stock or other securities and rights convertible into or entitling
the holder of such rights to receive solely shares of Common Stock or other capital stock of the Company ranking junior to the Series B Preferred with respect to the payment of dividends or any distributions of assets upon any Liquidation Event and
other than dividends or distributions declared or paid after such time as the Purchase Price (as such term is defined in the Certificate of Designations) of each outstanding share of Series B Preferred is $0. 
 Section 5.3 Removal. Warburg Nominees and Independent Nominees may be removed during his or her term of office, with or without cause,
only by the Person or Persons then entitled to designate such Warburg Nominee or Independent Nominee pursuant to Section 5.2(a). If any Person is entitled to and desires to remove a director, then each Stockholder hereby agrees to vote all
shares of Capital Stock owned by such Stockholder to effect such removal or consent in writing to effect such removal upon request. If a Person serving as the Management Nominee ceases to be chief executive officer of the Company but fails to resign
as a director of the Company, all the Stockholders shall act promptly to remove such director and elect in such director’s place the then current chief executive officer. 
 Section 5.4 Vacancies. In the event that a vacancy is created on the Board of Directors by the death, Disability, retirement,
resignation or removal (with or without Cause) of a director, each Stockholder will as soon as practicable vote for, and cause the directors designated by it to vote for, the individual designated to fill such vacancy by the Stockholders (or
representative) then entitled to fill such vacancy pursuant to Section 5.2 hereof, and the Company shall exercise all authority under applicable Law to give effect to this Section 5.4. If a vacancy exists with respect to the chief
executive officer of the Company, a majority of the Board shall select a new chief executive officer of the Company. 
 Section 5.5 Covenant To Vote. Each Stockholder hereby agrees to take all actions necessary to call, or cause the Company and the appropriate officers and directors of the Company to call, a special or annual meeting of
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special meeting in favor of, or take all actions by written consent in lieu of any such meeting necessary to cause, the election as members of the Board of
Directors of those individuals so designated in accordance with, and otherwise to effect the intent of Article V. In addition, each Stockholder agrees to vote the shares of Capital Stock owned by such Stockholder upon any other matter arising under
this Agreement submitted to a vote of the Stockholders in a manner that will implement the terms of this Agreement. If Stockholders owning Common Stock are ever entitled by Law or otherwise to vote on any matter as a separate class, in contrast to
voting with the Series B Preferred as a single combined class, then each Stockholder agrees to vote such Stockholder’s shares of Common Stock in such a manner so that the outcome of the vote of the holders of the Common Stock voting as a single
class is the same as the outcome of the vote of the holders of the Common Stock and Series B Preferred voting on such matter as a single combined class. Each Management Stockholder agrees that, with respect to any of its Unvested Shares, such
Management Stockholder will vote such Unvested Shares on any matter submitted to a vote of the stockholders of the Company in a manner such that all Unvested Shares held by all Management Stockholders will have voted in the same proportion with
respect to such matter as the Series B Preferred Stock is voted. 
 Section 5.6 Business Opportunities. The Company shall
not amend, modify or revoke the provisions set forth in Article Thirteenth of the Certificate of Incorporation at any time while any Investor Stockholder holds Capital Stock. Each Stockholder hereby agrees to take all actions necessary or desirable
to effect the foregoing sentence, including voting for or consenting to amendments to the Certificate of Incorporation. 
 Section 5.7 Investor Stockholder Rights. 
 (a) At any time when shares of Series B Preferred are outstanding,
upon request of the Majority Holders given in writing or by vote at a meeting, consenting or voting (as the case may be) separately as a series, the Company shall immediately undertake to cause the removal of the Management Nominee and/or the
termination of the chief executive officer of the Company. 
 (b) Each Stockholder hereby covenants and agrees that it shall vote its Capital
Stock to enforce compliance with Section 5.7(a), including without limitation, voting to remove any director who fails to comply with a request properly made under Section 5.7(a). 
 Section 5.8 Amendments to Certificate of Incorporation. The Company shall not, without the prior written consent of Merrill Lynch, if
it is then a stockholder of the Company, make any amendment to the Certificate of Incorporation that adversely affects the rights of Merrill Lynch thereunder in a manner that is disproportionate to the impact such amendment would have on the rights
of the Warburg Group thereunder; provided, however, that in all events the Company shall be permitted to amend the Certificate of Incorporation without the prior written consent of Merrill Lynch to (i) increase the Company’s
authorized capitalization; (ii) designate any new series of Preferred Stock; (iii) change the name of the Company; or (iv) amend any provision of the Certificate of Incorporation in connection with an Approved Sale. Each Stockholder
hereby agrees to take all actions necessary or desirable to effect the foregoing sentence, including voting against or refusing to consent to amendments to the Certificate of Incorporation that are in violation of this Section 5.8. 

 

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 Section 5.9 VCOC Rights. Certain rights set forth in this Article V are, in part,
intended to satisfy the requirement of contractual management rights for purposes of qualifying the ownership interests of each of certain Investor Stockholders in the Company as venture capital investments for purposes of the Department of
Labor’s “plan assets” regulations (“Contractual Management Rights”), and in the event such rights are not satisfactory for such purpose or are lost by reason of the operation of this Agreement, the Company and each of such
Investor Stockholders shall reasonably cooperate in good faith to agree upon mutually satisfactory Contractual Management Rights which satisfy such regulations. 
 ARTICLE VI 
 MISCELLANEOUS 
 Section 6.1 Manner Of Giving Notice. All notices required to be given hereunder shall be in writing and shall be deemed to be duly
given if personally delivered, telecopied and confirmed, or mailed by certified mail, return receipt requested, or nationally recognized overnight delivery service with proof of receipt maintained, at the following address (or any other address that
any such party may designate by written notice to the other parties): 
 If to the Company, at: 
 Targa Resources Investments Inc. 
 1000
Louisiana Street, Suite 4700 
 Houston, Texas 77002 
 Fax: (713) 584-1110 
 Attention: General Counsel 
 If to any Stockholder, at his address as set forth on Exhibit A of this Agreement. 
 Any such notice shall, if delivered personally, be deemed received upon delivery; shall, if delivered by telecopy, be deemed received on the first
Business Day following confirmation; shall, if delivered by nationally recognized overnight delivery service, be deemed received the first Business Day after being sent; and shall, if delivered by mail, be deemed received upon the earlier of actual
receipt thereof or five Business Days after the date of deposit in the United States mail. 
 Section 6.2 Waiver Of
Notice. Whenever any notice is required to be given to any Stockholder of the Company under the provisions of this Agreement, a waiver thereof in writing signed by the Person or Persons entitled to such notice, whether before or after the
time stated therein, shall be deemed equivalent to the giving of such notice. Attendance of a Stockholder at a meeting of the Stockholders shall constitute a waiver of notice of such meeting, except where a Stockholder attends a meeting for the
express purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully called or convened. 
 Section 6.3 Counterpart Signatures. This Agreement may be executed in any number of counterparts (including facsimile counterparts), all of which together shall constitute a single instrument. It shall not be necessary
that any counterpart be signed by each of the Stockholders hereto so long as each counterpart shall be signed and delivered by one or more of the Stockholders hereto and so long as the other Stockholders shall sign and deliver at least one
counterpart which shall be delivered to the Company. 
  

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 Section 6.4 Severability. If any provision of this Agreement is held to be illegal,
invalid or unenforceable under present or future Laws effective during the term of this Agreement, such provision shall be fully severable; this Agreement shall be construed and enforced as if such illegal, invalid, or unenforceable provision had
never comprised a part of this Agreement; and the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance from this Agreement.
Furthermore, in lieu of (and to the extent of) each such illegal, invalid or unenforceable provision, there shall be added automatically as a part of this Agreement a provision as similar in terms to such illegal, invalid or unenforceable provision
as may be possible and be legal, valid and enforceable. 
 Section 6.5 Joinder Of Spouses. The spouses of all married
Stockholders have joined in the execution of this Agreement in order to evidence their agreement and consent to be bound by the terms and conditions hereof as to their interest, whether as community property or otherwise, if any, in the shares of
Capital Stock owned by their respective spouses. 
 Section 6.6 Entire Agreement; Amendments; Agreement Controls.

 (a) This Agreement together with the agreements specifically referenced herein constitute the entire agreement among the parties
hereto and their respective Affiliates with respect to the subject matter hereof and supersede all prior contracts, agreements and understandings, whether written or oral, among some or all of the parties hereto and their respective Affiliates with
respect to the subject matter hereof. The provisions of this Agreement may only be amended, modified or waived with the prior written consent of the Company and the Warburg Group; provided, however, that (A) any such amendment,
modification, or waiver (except as provided in clauses (C) and (D) below) that would adversely affect the rights hereunder of any Stockholder, in its capacity as a Stockholder, without similarly affecting the rights hereunder of all
Stockholders of the same class, in their capacities as Stockholders of such class, that would affect a Stockholder’s right to exercise its preemptive rights pursuant to Section 2.2 or that would impose any material obligation on any
Stockholder, shall not be effective as to such Stockholder without its prior written consent, (B) any amendment, modification or waiver that adversely affects in any material respect the economic ownership interest in the Company of any
Management Stockholder, in such Management Stockholder’s capacity as a Stockholder shall not be effective as to the Management Stockholder without the written consent of either (i) Rene Joyce, if he is then the Chief Executive Officer of
the Company, or (ii) Management Stockholders then owning a majority of the Common Stock (assuming that all shares of Series B Preferred Stock then owned by the Management Stockholders have been converted at the Conversion Ratio) then held by
all Management Stockholders, (C) Exhibit A to this Agreement shall be deemed to be automatically amended from time to time to reflect issuances and transfers of shares of Common Stock and Series B Preferred made in compliance with this
Agreement and the Stock Purchase Agreement without requiring the consent of any party, and the Company will, from time to time, distribute to the Stockholders a revised Exhibit A to reflect any such changes, (D) Sections 5.2 (other than
5.2(a)(i)), 5.3 and 5.4 may be amended with the written consent of the Company and the Majority Holders, and (E) so long as Merrill Lynch is entitled to rights pursuant to the provisions of Section 4.3(b), 5.2(c), 5.2(h) or 5.8 or this
Section 6.6, such Sections may only be amended with the written consent of Merrill Lynch. 
  

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 (b) No waiver of any provision hereof by any party shall be deemed a waiver by any other party nor shall
any such waiver by any party be deemed a continuing waiver of any matter by such party. 
 (c) No amendment, modification, supplement,
discharge or waiver hereof or hereunder shall require the consent of any person not a party to this Agreement. 
 Section 6.7
Governing Law And Venue. This Agreement shall be governed and construed in accordance with the Laws of the State of Delaware, without regard to the conflicts of law principles of such state. 
 Section 6.8 Consent To Jurisdiction; Waiver of Trial By Jury And Certain Damages. 
 (a) The parties hereto hereby irrevocably submit to the exclusive jurisdiction of the courts of the State of New York and the federal courts of the
United States of America located in New York, and appropriate appellate courts therefrom, over any dispute arising out of or relating to this Agreement or any of the transactions contemplated hereby, and each party hereby irrevocably agrees that all
claims in respect of such dispute or proceeding may be heard and determined in such courts. The parties hereby irrevocably waive, to the fullest extent permitted by applicable Law, any objection which they may now or hereafter have to the laying of
venue of any dispute arising out of or relating to this Agreement or any of the transactions contemplated hereby brought in such court or any defense of inconvenient forum for the maintenance of such dispute. Each of the parties hereto agrees that a
judgment in any such dispute may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law. This consent to jurisdiction is being given solely for purposes of this Agreement and is not intended to, and shall
not, confer consent to jurisdiction with respect to any other dispute in which a party to this Agreement may become involved. 
 (b) Each of
the parties hereto hereby consents to process being served by any party to this Agreement in any suit, action, or proceeding of the nature specified in Section 6.8(a) above by the mailing of a copy thereof in the manner specified by the
provisions of Section 6.1. 
 (c) EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT. 
 (d) Neither the Company nor any Stockholder shall be liable to
any of the other such Persons for punitive, special, exemplary or consequential damages, including damages for loss of profits, loss of use or revenue or losses by reason of cost of capital, arising out of or relating to this Agreement or the
transactions contemplated hereby, regardless of whether based on contract, tort (INCLUDING NEGLIGENCE), strict liability, violation of any applicable deceptive trade practices act or similar law or any other legal or equitable principle, and the
Company and each Stockholder release each of the other such Persons from liability for any such damages. 
  

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 Section 6.9 Binding Effect; Assignment. This Agreement shall be binding upon and shall
inure to the benefit of the Company and each Stockholder and his respective heirs, permitted successors, permitted assigns, permitted distributees and legal representatives, and by their signatures hereto, the Company and each Stockholder intend to
and do hereby become bound. Nothing expressed or mentioned in this Agreement is intended or shall be construed to give any Person other than the parties hereto and their respective permitted successors and assigns any legal or equitable right,
remedy or claim under, in or in respect of this Agreement or any provision herein contained. The rights under this Agreement may be assigned by a Stockholder to a transferee of all or a portion of such Stockholder’s Capital Stock, transferred
in accordance with this Agreement (and shall be assigned to the extent this Agreement requires such assignment), but only to the extent of such Capital Stock transferred. 
 Section 6.10 Future Actions. The Company and the Stockholders shall execute and deliver all such future instruments and take such other and further action as may be reasonably necessary or
appropriate to carry out the provisions of this Agreement and the intention of the parties as expressed herein, including, if necessary, and subject to Section 5.8, any action required to authorize and direct the officers and directors of the
Company to amend the Company’s Certificate of Incorporation so that this Agreement is enforceable under the Laws of the state in which the Company is incorporated. 
 Section 6.11 Construction. Unless the context requires otherwise: (a) pronouns in the masculine, feminine and neuter genders shall be construed to include any other gender, and words in the
singular form shall be construed to include the plural and vice versa, (b) the term “including” shall be construed to be expansive rather than limiting in nature and to mean “including, without limitation,”
(c) references to Articles and Sections refer to Articles and Sections of this Agreement; (d) the words “this Agreement,” “herein,” “hereof,” “hereby,” “hereunder” and words of similar
import refer to this Agreement as a whole, including the Exhibits attached hereto, and not to any particular subdivision unless expressly so limited, and (e) references to Exhibits are to the items identified separately in writing by the
parties hereto as the described Exhibits attached to this Agreement, each of which is hereby incorporated herein and made a part hereof for all purposes as if set forth in full herein. The descriptive headings used herein are inserted for
convenience of reference only, do not constitute a part of this Agreement and shall not affect in any manner the meaning or interpretation of this Agreement. 
 Section 6.12 Termination Of This Agreement. The provisions of Section 2.2, Article III (other than Section 3.1(a)), Section 4.3 and Article V (other than Section 5.6) shall
terminate, and have no further force or effect, in respect of any party hereto upon the earliest of the following (i) the consummation of an Approved Sale pursuant to Section 3.7, (ii) the written consent of the Company, the Warburg
Group and Merrill Lynch, so long as Merrill Lynch is entitled to an Observer pursuant to Section 5.2(c), (iii) the dissolution, liquidation or bankruptcy of the Company, or (iv) the closing of a Qualified Public Offering;
provided, however, that the provisions of Section 4.3(e) shall survive the closing of a Qualified Public Offering. Furthermore, the provisions of Article III (other than Sections 3.1(a) and 3.7) shall terminate and have no force
or effect upon the occurrence of a Change of Control. 
  

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 Section 6.13 Adjustments for Stock Splits, Etc. Wherever in this Agreement there is a
reference to a specific number or percentage of shares of Capital Stock, or a price per share of such Capital Stock, or consideration received in respect of such Capital Stock, then, upon the occurrence of any subdivision, combination, or stock
dividend of such Capital Stock, the specific number or percentage of shares or the price so referenced in this Agreement shall automatically be proportionally adjusted to reflect the effect on the outstanding shares of such Capital Stock by such
subdivision, combination, or stock dividend. 
 Section 6.14 Confidentiality. Each Stockholder agrees that all
Confidential Information (as defined below) shall be kept confidential by such Stockholder and shall not be disclosed by such Stockholder in any manner whatsoever; provided, however, that (i) any of such Confidential Information may be
disclosed to directors, officers, employees and authorized representatives (including without limitation attorneys, accountants, consultants, bankers and financial advisors) of such Stockholder (collectively, for purposes of this Section 6.14,
“Representatives”), each of which Representatives shall be bound by the provisions of this Section 6.14, (ii) any disclosure of Confidential Information may be made to the extent to which the Company consents in writing,
(iii) any disclosure may be made of the terms of a Stockholder’s investment in the Company pursuant to the Stock Purchase Agreement or this Agreement and the performance of that investment to the extent in compliance with applicable Law;
provided that as promptly as practicable and prior to making such disclosure (other than disclosure under (iii) above), the Stockholder advises the Company that the Stockholder is required to disclose the Confidential Information and
consults with the Company regarding such disclosure, and provided, further, that the Stockholder discloses only that portion of the Confidential Information as is, based on the advice of its counsel, legally required; (iv) any
disclosure may be made of Confidential Information to a Stockholder’s partners, members, stockholders, prospective partners, members, stockholders or affiliates or their authorized representatives, each of whom shall be bound by the provisions
of this Section 6.14 as if a “Stockholder,” and (v) Confidential Information may be disclosed by any Stockholder or any Representative to the extent that the Stockholder or Representative has received advice from its counsel that
it is legally compelled to do so, provided that, prior to making such disclosure, the Stockholder or Representative, as the case may be, advises the Company as soon as the Stockholder or Representative is requested to disclose the
Confidential Information, consults with the Company regarding such disclosure and, if reasonably requested by the Company, assists the Company, at the Company’s expense, in seeking a protective order to prevent the requested disclosure, and
provided, further, that the Stockholder or Representative, as the case may be, discloses only that portion of the Confidential Information as is, based on the advice of its counsel, legally required. The term “Confidential
Information,” as used herein, means all confidential and proprietary information (irrespective of the form of communication) obtained by or on behalf of the Stockholder from the Company or its representatives, other than information which
(i) was or becomes generally available to the public other than as a result of a breach of this Agreement by such Stockholder or any Representative, (ii) was or becomes available to such Stockholder on a nonconfidential basis prior to
disclosure to the Stockholder by the Company or its representatives, (iii) was or becomes available to the Stockholder from a source other than the Company and its representatives, provided that such source is not known by such
Stockholder to be bound by a confidentiality agreement with the Company, or (iv) is independently developed by the Stockholder without the use of any such information received under this Agreement. 
  

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 Section 6.15 Certain Tax Considerations. THE IMPOSITION OF THE RIGHTS OF REPURCHASE UNDER
THIS AGREEMENT MAY RESULT IN ADVERSE TAX CONSEQUENCES THAT MAY BE AVOIDED OR MITIGATED BY FILING AN ELECTION UNDER CODE SECTION 83(B). SUCH ELECTION MAY BE FILED ONLY WITHIN 30 DAYS AFTER THE DATE OF ACQUISITION OF CAPITAL STOCK. EACH
STOCKHOLDER SHOULD CONSULT WITH SUCH STOCKHOLDER’S TAX ADVISOR TO DETERMINE THE TAX CONSEQUENCES OF EXECUTING THIS AGREEMENT AND THE ADVANTAGES AND DISADVANTAGES OF FILING THE CODE SECTION 83(B) ELECTION. EACH OF THE STOCKHOLDERS
ACKNOWLEDGES THAT IT IS SUCH STOCKHOLDER’S SOLE RESPONSIBILITY, AND NOT THE COMPANY’S, TO FILE A TIMELY ELECTION UNDER CODE SECTION 83(B), EVEN IF SUCH STOCKHOLDER REQUESTS THE COMPANY OR ITS REPRESENTATIVES TO MAKE THIS FILING ON
BEHALF OF SUCH STOCKHOLDER. 
 Section 6.16 Termination of Original Agreement. By execution and delivery of this
Agreement, Targa and each Stockholder that is a party to the Original Agreement acknowledges and agrees that this Agreement hereby amends, restates and supercedes the Original Agreement in its entirety and that the Original Agreement is hereby of no
further force or effect. Notwithstanding the foregoing, in the event that the Stock Purchase Agreement is terminated prior to the occurrence of the Closing, the parties hereto acknowledge and agree that the provisions of this Agreement shall not
apply and shall automatically be of no further force or effect and the terms and provisions of the Original Agreement shall be reinstated in all respects except (i) the definition of the term the “Company” shall be amended to mean
Targa Resources Investments Inc. for all purposes in the Original Agreement and (ii) shares of Common Stock and Series A Preferred issued pursuant to the Merger shall at all times be Excluded Securities for all purposes in the Original
Agreement. Each of Targa and the Stockholders that is a party to the Original Agreement further acknowledges and agrees that the provisions under “General” in Targa’s Bylaws dated as of February 27, 2004 shall no longer have any
force or effect and that from and after the date hereof, neither the Original Agreement nor this Agreement shall govern or otherwise modify the Bylaws of Targa. 
 Section 6.17 Closing under Stock Purchase Agreement. Notwithstanding anything to the contrary herein, nothing herein shall prohibit, restrict, limit or otherwise require any consent, waiver or
giving of notice with respect to the consummation of the transactions contemplated by the Stock Purchase Agreement. 
  

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

			
	COMPANY:
	
	TARGA RESOURCES INVESTMENTS INC.
		
	By:	 	/s/ Joe Bob Perkins
	Name:	 	Joe Bob Perkins
	Title:	 	President
	
	TARGA RESOURCES, INC.
		
	By:	 	/s/ Joe Bob Perkins
	Name:	 	Joe Bob Perkins
	Title:	 	President

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

			
	INVESTOR STOCKHOLDERS:
	
	WARBURG PINCUS PRIVATE EQUITY VIII, L.P.
		
	By:	 	Warburg Pincus Partners LLC, its General Partner
		
	By:	 	Warburg Pincus & Co., its Managing Member
		
	By:	 	/s/ Peter R. Kagan
		 	Partner
	
	WARBURG PINCUS NETHERLANDS PRIVATE EQUITY VIII I, C.V.
		
	By:	 	Warburg Pincus Partners LLC, its General Partner
		
	By:	 	Warburg Pincus & Co., its Managing Member
		
	By:	 	/s/ Peter R. Kagan
		 	Partner
	
	WARBURG PINCUS GERMANY PRIVATE EQUITY VIII, K.G.
		
	By:	 	Warburg Pincus Partners LLC, its General Partner
		
	By:	 	Warburg Pincus & Co., its Managing Member
		
	By:	 	/s/ Peter R. Kagan
		 	Partner

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	WARBURG PINCUS PRIVATE EQUITY IX, L.P.
		
	By:	 	Warburg Pincus Partners LLC, its General Partner
		
	By:	 	Warburg Pincus & Co., its Managing Member
		
	By:	 	/s/ Peter R. Kagan
		 	Partner
	
	MERRILL LYNCH VENTURES L.P. 2001
		
	By:	 	 Merrill Lynch Ventures, LLC,
 its general
partner

		
	By:	 	/s/ Christopher Birosak
		 	Christopher Birosak EVP

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

	
	MANAGEMENT STOCKHOLDERS:
	
	/s/ Rene R. Joyce
	Rene R. Joyce, individually and as authorized agent for the Individual Retirement Account for the benefit of Rene R. Joyce
	
	/s/ Roy E. Johnson
	Roy E. Johnson, individually and as authorized agent for the Individual Retirement Account for the benefit of Roy E. Johnson
	
	/s/ Joe Bob Perkins
	Joe Bob Perkins, individually and as authorized agent for the Individual Retirement Account for the benefit of Joe Bob Perkins
	
	/s/ Michael A. Heim
	Michael A. Heim, individually and as authorized agent for the Individual Retirement Account for the benefit of Michael A. Heim
	
	/s/ Jeffrey J. McParland
	Jeffrey J. McParland, individually and as authorized agent for the Individual Retirement Account for the benefit of Jeffrey J. McParland
	
	/s/ Paul W. Chung
	Paul W. Chung, individually and as authorized agent for the Individual Retirement Account for the benefit of Paul W. Chung

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	HARRIET AND JOE B. FOSTER
	
	/s/ Harriet Foster
	Harriet Foster
	
	/s/ Joe B. Foster
	Joe B. Foster

  

			
	
	SUGARBERRY PARTNERS, LTD.
		
	By:	 	Sugarberry GP, LLC, its general partner
		
	By:	 	/s/ Joe B. Foster
		 	Joe B. Foster, authorized manager

  

	
	/s/ Joe B. Foster
	Joe B. Foster, individually
	
	JAMES W. AND VIRGINIA WHALEN
	
	/s/ James W. Whalen
	James W. Whalen
	
	/s/ Virginia Whalen
	Virginia Whalen
	
	/s/ James W. Whalen
	James W. Whalen, individually

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	CHARLES R. AND VICKI KARYN CRISP, JOINT TENANTS
	
	/s/ Charles R. Crisp
	Charles R. Crisp
	
	/s/ Vicki Karyn Crisp
	Vicki Karyn Crisp,
	
	/s/ Charles R. Crisp
	Charles R. Crisp, individually

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 SPOUSAL CONSENT 
 The spouse of the Stockholder executing the foregoing Amended and Restated Stockholders’ Agreement (or the counterpart signature page above) is aware of, understands, and consents to the provisions of the
foregoing Amended and Restated Stockholders’ Agreement and its binding effect upon any community property interest or marital settlement awards he or she may now or hereafter own or receive, and agrees that the termination of his or her marital
relationship with Stockholder for any reason shall not have the effect of removing any shares of Capital Stock subject to the Amended and Restated Stockholders’ Agreement from the coverage thereof and that his or her awareness, understanding,
consent, and agreement is evidenced by his or her signature below. 
  

	
	  
	[Spouse’s Name]

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 EXHIBIT A 
 LIST OF STOCKHOLDERS AND SHARE OWNERSHIP 
  

					
	 Stockholder
 (Name and Address)
	  	Shares of Series
B Preferred
Stock Owned	  	Shares of
Common
Stock Owned
	Investor Stockholders	  		  	
	 Warburg Pincus Private Equity VIII, L.P.,
466 Lexington Avenue, 11th Floor,
New York, NY, 10017
	  	3,493,396	  	—  
			
	 Warburg Pincus Netherlands Private Equity VIII I C.V.,
466 Lexington Avenue, 11th Floor,
New York, NY, 10017
	  	101,258	  	—  
			
	 Warburg Pincus Germany Private Equity VIII K.G.,
466 Lexington Avenue, 11th Floor,
New York, NY, 10017
	  	10,129	  	—  
			
	 Warburg Pincus Private Equity IX, L.P.,
466 Lexington Avenue, 11th Floor,
New York, NY, 10017
	  	2,025,500	  	—  
			
	 Merrill Lynch Ventures L.P. 2001
4 WFC 23rd Floor
New York, NY 10080
	  	500,000	  	—  
			
	Management Stockholders	  		  	
	 Rene R. Joyce
1005 S. Shepherd #807
Houston, Texas 77056
	  	51,531	  	—  
			
	 Roy E. Johnson
718 Tirrell Street
Houston, Texas 77019
	  	38,687	  	—  
			
	 Joe Bob Perkins
83 Williamsburg Lane
Houston, Texas 77024
	  	54,073	  	—  
			
	 Michael A. Heim
2911 University Boulevard
Houston, Texas 77005
	  	38,687	  	—  
			
	 Jeffrey J. McParland
5346 Holly Springs Drive
Houston, Texas 77056
	  	33,199	  	—  

  

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Table of Contents

					
	 Stockholder
 (Name and Address)
	  	Shares of Series
B Preferred
Stock Owned	  	Shares of
Common
Stock Owned
	 Individual Retirement Account for the benefit of Rene R. Joyce
1005 S. Shepherd #807
Houston, Texas 77056
	  	13,613	  	—
			
	 Individual Retirement Account for the benefit of Roy E. Johnson
718 Tirrell Street
Houston, Texas 77019
	  	10,691	  	—  
			
	 Individual Retirement Account for the benefit of Joe Bob Perkins
83 Williamsburg Lane
Houston, Texas 77024
	  	2,495	  	—  
			
	 Individual Retirement Account for the benefit of Michael A. Heim
2911 University Boulevard
Houston, Texas 77005
	  	9,441	  	—  
			
	 Individual Retirement Account for the benefit of Jeffrey J. McParland
5346 Holly Springs Drive
Houston, Texas 77056
	  	6,806	  	—  
			
	 Paul W. Chung
4424 Lula Street
Bellaire, Texas 77401
	  	1,500	  	—  
			
	 Individual Retirement Account for the benefit of Paul W. Chung
4424 Lula Street
Bellaire, Texas 77401
	  	8,306	  	—  
			
	 Harriet and Joe B. Foster
10000 Memorial Drive, Suite 520
Houston, Texas 77024
	  	13,844	  	—  
			
	 Sugarberry Partners, Ltd.
10000 Memorial Drive, Suite 520
Houston, Texas 77024
	  	13,844	  	—  
			
	 Joe B. Foster
10000 Memorial Drive, Suite 520
Houston, Texas 77024
	  	1,175	  	—  
			
	 James W. and Virginia Whalen
150 Gessner, Unit 6E
Houston, Texas 77024
	  	14,075	  	—  
			
	 James W. Whalen
150 Gessner, Unit 6E
Houston, Texas 77024
	  	1,175	  	—  

  

 A - 2 

Table of Contents

					
	 Stockholder
 (Name and Address)
	  	Shares of Series
B Preferred
Stock Owned	  	Shares of
Common
Stock Owned
	 Charles R. and Vicki Karyn Crisp, Joint Tenants
124 Melrose Drive
Montgomery, Texas 77356
	  	8,806	  	—
			
	 Charles R. Crisp
124 Melrose Drive
Montgomery, Texas 77356
	  	1,175	  	—  

  

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 EXHIBIT B 
 ADDENDUM AGREEMENT 
 This Addendum Agreement is made this
         day of                     , 200  , by and between
                                        
(the “New Stockholder”) and                     , the New Stockholder’s spouse, and Targa Resources Investments Inc., a
Delaware corporation (the “Company”), pursuant to a certain Amended and Restated Stockholders’ Agreement dated as of October     , 2005, as amended from time to time (the “Agreement”), between and
among the Company and certain of its stockholders (the “Stockholders”). 
 WITNESSETH: 
 WHEREAS, the Company and the Stockholders and their respective spouses entered into the Agreement to impose certain restrictions and obligations upon
themselves, and to provide certain rights, with respect to the Company’s Capital Stock (as defined in the Agreement); and 
 WHEREAS,
the New Stockholder desires to become a stockholder of the Company; and 
 WHEREAS, the Company and the Stockholders have required in the
Agreement that all persons to whom shares of the Capital Stock subject to the Agreement are transferred and any other person acquiring shares of the Capital Stock must enter into an Addendum Agreement binding the New Stockholder and the New
Stockholder’s spouse to the Agreement to the same extent as if they were original parties thereto and imposing the same restrictions and obligations on the New Stockholder, the New Stockholder’s spouse and the shares of Capital Stock to be
acquired by the new Stockholder as are imposed upon the Stockholders under the Agreement; 
 NOW, THEREFORE, in consideration of the mutual
promises of the parties and as a condition of the purchase or receipt by the New Stockholder of the Capital Stock, the New Stockholder and the New Stockholder’s spouse acknowledge that they have received and read the Agreement and that the New
Stockholder and the New Stockholder’s spouse shall be bound by, and shall have the benefit of, all of the terms and conditions set out in the Agreement to the same extent as if they were original parties to the Agreement. This Addendum
Agreement shall not be attached to and become a part of the Agreement. 
 The New Stockholder shall become a [Management/Investor]
Stockholder. 
 [The spouse of the New Stockholder joins in the execution of this Addendum Agreement for the purpose set forth in
Section 6.5 of the Agreement.] 
  

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	New Stockholder	 		 	New Stockholder’s Spouse

  

	
	Address:
	
	  
	
	 

 AGREED TO on behalf of the Stockholders of the Company pursuant to Section 3.1 of the
Agreement. 
  

			
	TARGA RESOURCES INVESTMENTS INC.
		
	By:	 	 

  

	
	  
	Printed Name and Title

  

 B - 2

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