Document:

Kenexa Corporation Waiver

 Exhibit 10.21 
  
 KENEXA CORPORATION 
 WAIVER BY STOCKHOLDERS AND 
 AMENDMENT TO PURCHASE AGREEMENTS 
  
 WHEREAS, each of the undersigned, other than the Company, is a stockholder
(the “Stockholder”) of Kenexa Corporation, a Pennsylvania corporation (the “Company”); and 
  
 WHEREAS, in February 2001, pursuant to the Series A Redeemable Participating Preferred Stock and Class C Common Stock Purchase Agreement by and among
Wafra Acquisition Fund 14, L.P. and the Company (the “Wafra Purchase Agreement”), the Company closed the sale of shares of Series A Redeemable Participating Preferred Stock (“Series A Preferred Stock”) and shares of Class C
Common Stock (“Class C Common Stock”) to Wafra Acquisition Fund 14, L.P. (“Wafra”) for approximately $15.5 million in cash, pursuant to the Series A Redeemable Participating Preferred Stock and Class C Common Stock Purchase
Agreement by and among Parthenon Investors, L.P., PCIP Investors and the Company (the “Parthenon Purchase Agreement”) the Company closed the sale of Series A Preferred Stock and Class C Common Stock to Parthenon Investors, L.P.
(“Parthenon”) and PCIP Investors (“PCIP”) in exchange for the cancellation and discharge of the Company’s bridge notes held by Parthenon and PCIP in the amount of approximately $10 million plus approximately $858,000 of
accrued interest, and pursuant to the Exchange Agreement by and among Parthenon, PCIP and the Company (the “Exchange Agreement”) the Company closed the exchange of certain shares of the Company’s Class B Common Stock (“Class B
Common Stock”) for shares of the Company’s Series B Redeemable Participating Preferred Stock (“Series B Preferred Stock”) (the “First Transaction”); and 
  
 WHEREAS, the Company’s management has been negotiating with Westbury Equity Partners SBIC, L.P. (“Westbury”)
for the sale of 6,000 shares of Series A Preferred Stock and 280,000 shares of Class C Common Stock for approximately $6.0 million (the “Second Transaction”); and 
  
 WHEREAS, inasmuch as there are currently fewer than 6,000 shares of Series A Preferred Stock authorized and unissued, in
order to provide for at least 6,000 shares of Series A Preferred Stock to be available for issuance in the Second Transaction, the Company would be required to redeem in the aggregate approximately 2,400 shares of Series A Preferred Stock; and

  
 WHEREAS, as contemplated in the First Transaction, Parthenon
and PCIP desire to sell, collectively, in the aggregate (i) 5,852.55 shares of their Series A Preferred Stock and (ii) 273,119 shares of their Class C Common Stock on before June 16, 2001, and in connection therewith the management of the Company
has negotiated to redeem, pursuant to that certain Redemption Agreement by and among the Company, Parthenon and PCIP (the “Redemption Agreement”), approximately (i) 2,400 shares of Series A Preferred Stock and 111,978.79 shares of Class C
Common Stock held by Parthenon and PCIP immediately prior to the closing of the Second Transaction as described in the preceding paragraph (ii) 2,600 shares of Series A Preferred Stock and 121,354.54 shares of Class C Common Stock held by Parthenon
and PCIP on or before June 16, 2001; and 
  

 WHEREAS, in connection with the Second Transaction, the Company is entering into that certain Series A
Redeemable Participating Preferred Stock and Class C Common Stock Purchase Agreement by and among the Company and Westbury Equity Partners SBIC, L.P. (the “Westbury Purchase Agreement”); and 
  
 WHEREAS, in connection with the Second Transaction, each of the Stockholders
desires to waive certain of their anti-dilution rights and the prohibition on redemption of securities at a time when there are accrued and unpaid dividends on the Series A Preferred Stock and Series B Preferred Stock under the Second Amended
Articles of Incorporation of the Company, as amended from time to time (the “Articles”) and amend their respective purchase agreements as agreed to by the Company as set forth below. 
  
 NOW, THEREFORE, in consideration for the promises and the mutual covenants
and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows: 
  
 1. Waivers and Amendment of Articles: 
  
 1.1. Class B Common Stock. Each of the holders of
Class B Common Stock hereby waives its rights under Section C.4.4(b) of the Articles to an anti-dilution adjustment pursuant to the issuance of any shares to Westbury in connection with the Westbury Purchase Agreement. 
  
 1.2. Class C Common Stock. Each of the holders of
Class C Common Stock hereby waives its rights under Section C.5.4(c) of the Articles to an anti-dilution adjustment pursuant to the issuance of any shares to Westbury in connection with the Westbury Purchase Agreement. 
  
 1.3. Series A Preferred Stock. Each of the holders of
Series A Preferred Stock hereby waives the prohibition of redemption of securities at a time when there are accrued and unpaid dividends on the Series A Preferred Stock and Series B Preferred Stock under Section D.2.2 of the Articles in connection
with the redemption of any shares pursuant to the Redemption Agreement. 
  
 1.4. Series B Preferred Stock. Each of the holders of Series B Preferred Stock hereby waives the prohibition of redemption of securities at a time when there are accrued and unpaid dividends on the Series A
Preferred Stock and Series B Preferred Stock under Section E.2.2 of the Articles in connection with the redemption of any shares pursuant to the Redemption Agreement. 
  
 1.5. Stockholders. The Stockholders agree to vote in favor of an amendment to the Articles to allow
for the issuance and sale of authorized and unissued shares of Series A Preferred Stock and Class C Common Stock on the same terms no less favorable to the Company than involved in the Westbury Purchase Agreement such that the sale and issuance of
such authorized and unissued shares of Series A Preferred Stock and Class C Common Stock will not result in an adjustment according to Sections C.4.4(b) and C.5.4(c) of the Articles and will not be 

  

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prohibited by Sections D.2.2 and E.2.2 of the Articles by virtue of their being accrued and unpaid dividends on the shares of Series A Preferred Stock and
Series B Preferred Stock. 
  
 2. Amendment to Purchase
Agreements. 
  
 2.1. Wafra and the Company
agree to amend the Wafra Purchase Agreement as follows: 
  
 2.1.1. Section 4.1.1. The second sentence in Section 4.1.1 is hereby amended and restated in its entirety as follows: “The Company has heretofore delivered to the Investor a true and complete copy of (a)
the Charter and By-laws of the Company and each of its Subsidiaries other than Synex Technologies and Talentpoint UK Limited, (b) the minute books of the Company and each of its Subsidiaries other than Synex Technologies and Talentpoint UK Limited
and (c) the stock or other ownership interest ledger of the Company and each of its Subsidiaries other than Synex Technologies and Talentpoint UK Limited, each of which including that of Synex Technologies and Talentpoint UK Limited is accurate and
complete through the date hereof.” 
  
 2.1.2. Section 4.2.6. A Section 4.2.6 is hereby added to the Wafra Purchase Agreement and states the following: “The purchase and sale of the Purchased Securities pursuant to this Agreement does not contravene applicable federal
and state securities laws.” 
  
 2.1.3.
Section 6.5.2. Section 6.5.2 is hereby amended and restated in its entirety as follows: “If the Company issues to Parthenon Investors, L.P. and PCIP Investors additional shares of Class C Common (“Additional Parthenon/PCIP
Shares”) pursuant to the terms of Section 6.5.2 of the Series A Redeemable Participating Preferred Stock and Class C Common Stock Purchase Agreement by and among the Company, Parthenon Investors, L.P. and PCIP Investors dated as of the Initial
Closing Date, then the Company shall, at the same time it issues such additional shares of Class C Common to Parthenon Investors, L.P. and PCIP Investors, issue to the Investor, the Investor’s pro rata portion of 13,471 additional shares of
Class C Common, with such pro rata portion being calculated by multiplying 13,471 by the quotient equal to the aggregate number of Additional Parthenon/PCIP Shares issued to Parthenon and PCIP divided by 200,000.” 
  
 2.2. Parthenon, PCIP and the Company agree to amend the
Parthenon Purchase Agreement as follows: 
  
 2.2.1. Section 4.1.1. The second sentence in Section 4.1.1 is hereby amended and restated in its entirety as follows: “The Company has heretofore delivered to the Investor a true and complete copy of (a) the Charter and By-laws
of the Company and each of its Subsidiaries other than Synex Technologies and Talentpoint UK Limited, (b) the minute books of the Company and each of its Subsidiaries other than Synex Technologies and Talentpoint UK Limited and (c) the stock or
other ownership interest ledger of the Company and each of its Subsidiaries other than Synex Technologies and Talentpoint UK Limited, each of which 

  

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including that of Synex Technologies and Talentpoint UK Limited is accurate and complete through the date hereof.” 
  
 2.2.2. Section 4.2.6. A Section 4.2.6 is hereby added
to the Parthenon Purchase Agreement and states the following: “The purchase and sale of the Purchased Securities pursuant to this Agreement does not contravene applicable federal and state securities laws.” 
  
 2.2.3. Section 6.5.2. Section 6.5.2 is hereby amended
and restated in its entirety as follows: “The Company will issue 193,189 shares of Class C Common to Parthenon and 6,811 shares of Class C Common to PCIP for no additional consideration on June 16, 2001, if on or before that date, the Investors
individually or jointly have not received a bona fide offer from a third party or the Company to purchase an aggregate of 5,852.55 shares of the Investors’ Series A Preferred for an amount equal to at least an aggregate purchase price of five
million eight hundred fifty-two thousand five hundred fifty dollars ($5,852,550), provided however, that the number of additional shares of Class C Common required to be issued to Parthenon and PCIP pursuant to this Section 6.5.2 shall be
reduced from the 193,189 and 6,811 share amounts set forth above if the Investors have sold or otherwise disposed of, or have received an offer by a third party or the Company to purchase, any Series A Preferred Stock after the Initial Issuance
Date, and such reduced share entitlement shall be calculated as the product of 193,189 and 6,811 shares, respectively, multiplied by the quotient obtained by dividing: (a) the number of Excess Shares held as of June 16, 2001 that are comprised of
shares of Series A Preferred Stock that have not previously been the subject of a bona fide offer to purchase in accordance with this Section 6.5.2, by (b) 5,852.55. For purposes of this Section 6.5.2, the “Excess Shares” as of a specified
date shall mean all Purchased Securities comprised of Series A Preferred Stock held by Parthenon and PCIP in excess of 5,000 shares on the specified date. 
  
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 IN WITNESS WHEREOF, the undersigned has hereunto set his hand and seal this 29 day of March, 2001.

  

			
	 KENEXA CORPORATION

		
	By:	 	 /s/    Elliot H. Clark

	 	 	 Name: Elliot H. Clark

	 	 	 Title:   COO

  

			
	 PARTHENON INVESTORS, L.P.

		
	By:	 	 /s/    John Rutherford

	 	 	 Name: John Rutherford

	 	 	 Title:

  

			
	 PCIP INVESTORS, a Delaware general partnership

		
	By:	 	 /s/    John Rutherford

	 	 	 Name: John Rutherford

	 	 	 Title:

  

			
	 JMH PARTNERS CORP.

		
	By:	 	 /s/    Tony Brooke

	 	 	 Name:

	 	 	 Title:

  

			
	 SHAD RUN INVESTMENTS, L.P.

	By:	 	 Shad Run Investments, Inc.,
 General Partner

		
	By:	 	 /s/    Sara M. Hendrickson

	 	 	 Name: Sara M. Hendrickson

	 	 	 Title:   President

  

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	 WAFRA ACQUISITION FUND 14, L.P.

		
	By:	 	WAFRA PARTNERS, L.P., its general partner
		
	By:	 	WAFRA PARTNERS, INC., in its capacity as general partner of Wafra Partners, L.P.
		
	By:	 	 /s/    Peter Petrillo

	 	 	 Name:    Peter Petrillo

	 	 	 Title:      Senior Vice President

  

			
	 TSG CO-INVESTORS, LLC

		
	By:	 	 /s/    G. Kevin Fechtmeyer

	 	 	 Name:    G. Kevin Fechtmeyer

	 	 	 Title:      Managing Director

  

			
	 THE SHATTAN GROUP, LLC

		
	By:	 	 /s/    G. Kevin Fechtmeyer

	 	 	 Name:    G. Kevin Fechtmeyer

	 	 	 Title:      Managing Director

  

			
	 THOMAS S. SHATTAN

	
	/s/    Thomas S. Shattan
	
	 GREGORY E. MENDEL

	
	/s/    Gregory E. Mendel
	
	 G. KEVIN FECHTMEYER

	
	/s/    G. Kevin Fechtmeyer

  

 -6-Amendment No. 2 to the Series A Redeemable Participating Preferred Stock

 Exhibit 10.22 
  
 AMENDMENT NO. 2 TO THE SERIES A REDEEMABLE PARTICIPATING 
 PREFERRED STOCK AND CLASS C COMMON STOCK PURCHASE AGREEMENTS 
  
 THIS AMENDMENT NO. 2 TO THE SERIES A REDEEMABLE PARTICIPATING PREFERRED STOCK AND CLASS C COMMON STOCK PURCHASE AGREEMENTS (this “Amendment”) is
made and entered into as of the 26th day of September, 2002, by and between Kenexa Corporation, a Pennsylvania corporation (the “Company”), Wafra Acquisition Fund 14, L.P., a Delaware limited partnership (“Wafra”),
Parthenon Investors, L.P. a Delaware limited partnership (“Parthenon”), PCIP Investors, a Delaware general partnership (“PCIP”) and Westbury Equity Partners SBIC, L.P. (“Westbury”). 
  
 BACKGROUND 
  
 A. The Company and Wafra entered into a Series A Redeemable Participating Preferred Stock and Class C Common Stock Purchase
Agreement dated as of February 8, 2001 as amended by the Waiver and Amendment to Purchase Agreements dated as of March 29, 2001 (together, the “Wafra Purchase Agreement”). The Company, Parthenon and PCIP entered into a Series A Redeemable
Participating Preferred Stock and Class C Common Stock Purchase Agreement, dated as of February 8, 2001 as amended by the Waiver and Amendment to Purchase Agreements dated as of March 29, 2001 (the “Parthenon Purchase Agreement”). The
Company and Westbury entered into a Series A Redeemable Participating Preferred Stock and Class C Common Stock Purchase Agreement dated as of March 29, 2001 (the “Westbury Purchase Agreement” and together with the Wafra Purchase Agreement
and the Parthenon Purchase Agreement, the “Purchase Agreements”). 
  
 B. The parties hereto have agreed to amend the Purchase Agreements by deleting Section 6.5.1 (the working capital test) of each of the Purchase Agreements and to simultaneously amend the Second Amended and Restated
Articles of Incorporation of the Company (the “Articles of Incorporation”) by increasing the Maximum Top-Amount (as defined in the Articles of Incorporation) from 26.67 to 36.66667 in order that the total amount of shares of the
Company’s Class A Common Stock (“Class A Common Stock”) to which the holders of shares of the Company’s Series A Redeemable Participating Preferred Stock (“Series A Preferred Stock”) may become entitled under certain
circumstances pursuant to Section C.8 of the Articles of Incorporation, as amended, will be increased from 800,000 to 1,100,000 in lieu of any additional issuance of shares of the Company’s Class C Common Stock (“Class C Common
Stock”) to which Wafra, Parthenon, PCIP and Westbury would have been entitled pursuant to Section 6.5.1 of the Purchase Agreements.  
  
 C. The parties hereto have also agreed with the Company that the obligations of the Company pursuant to Section 6.5.2 of the Purchase Agreements shall be
satisfied in full upon the Company’s issuance of 7,946.84 shares of Class C Common Stock to Wafra, 113,966.52 shares of Class C Common Stock to Parthenon, 4,017.96 shares of Class C Common Stock to PCIP and 3,074.68 shares of Class C Common
Stock to Westbury. For purposes of Sections C.4.4(b) and C.5.4(c) of the Articles of Incorporation, the issuances pursuant to Section 6.5.2 of the Purchase Agreements shall be deemed to occur after the Third Amended and Restated Articles of
Incorporation become effective.  

 NOW, THEREFORE, in consideration of the promises and the mutual representations, warranties, covenants
and agreements hereinafter set forth, and upon the terms and subject to the conditions hereinafter set forth, the parties hereto, intending to be legally bound, hereby agree as follows: 
  
 1. Amendments to the Purchase Agreements: As consideration for replacing the “Maximum Top Up-Amount” of
26.67 in Section C.8.1(c) of the Articles of Incorporation with 36.66667, Section 6.5.1 of each of the Purchase Agreements shall be deleted in its entirety. 
  
 2. Satisfaction of Section 6.5.2: The Company shall issue: (i) 7,946.84 shares of Class C Common Stock to Wafra, (ii) 113,966.52 and 4,017.96
shares of Class C Common Stock to Parthenon and PCIP, respectively, and (iii) 3,074.68 shares of Class C Common Stock to Westbury in full satisfaction of the Company’s obligations under Section 6.5.2 of each of the Purchase Agreements and upon
the issuance of such shares the Company shall have no further obligations pursuant to Section 6.5.2 of the Purchase Agreements. 
  
 3. Effective Date of Amendment: The amendment set forth in Section 1 hereof shall be effective upon the filing of the Third Amended and Restated
Articles of Incorporation of the Company in the form attached hereto as Exhibit “A” (“Restated Articles”)(the “Effective Date”). The Company agrees to proceed diligently with seeking the necessary approvals and filing
the Restated Articles. 
  
 4. Miscellaneous 
  
 4.1. Governing Law. This Amendment shall be construed and enforced
in accordance with the laws of the Commonwealth of Pennsylvania. 
  
 4.2. Severability. Whenever possible, each provision of this Amendment will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Amendment is held to be invalid, illegal or
unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or the effectiveness or validity of any provision in any other jurisdiction, and
this Amendment will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein. 
  
 4.3. Amendments. The provisions of this Amendment, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given without the written consent of the parties hereto. 
  

4.4. Counterparts. This Amendment may be executed, including by facsimile signature, in one or more counterparts, each of which when so
executed shall be deemed to be an original and all of which together shall constitute one and the same instrument. 
  
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 IN WITNESS WHEREOF, the undersigned has hereunto set his hand and seal this 26th day of September, 2002.

  

			
	KENEXA CORPORATION
		
	By:	 	 /s/    Elliot H. Clark

	Name:	 	Elliot H. Clark
	Title:	 	Chief Operating Officer
	
	WAFRA ACQUISITION FUND 14, L.P.
		
	By:	 	WAFRA PARTNERS, L.P., its general
	 	 	partner
		
	By:	 	WAFRA PARTNERS, INC., in its capacity
	 	 	as general partner of Wafra Partners, L.P.
		
	By:	 	 /s/    Peter Petrillo

	Name:	 	Peter Petrillo
	Title:	 	Managing Partner
	
	PARTHENON INVESTORS, L.P.
		
	By:	 	 /s/    John Rutherford

	Name:	 	John Rutherford
	Title:	 	Managing Partner
	
	PCIP INVESTORS, a Delaware general partnership
		
	By:	 	 /s/    John Rutherford

	Name:	 	John Rutherford
	Title:	 	Managing Partner
	
	WESTBURY EQUITY PARTNERS SBIC, L.P
		
	By:	 	Westbury SBIC, Inc., as its General Partner
		
	By:	 	 /s/    Joe Fogg

	Name:	 	Joe Fogg
	Title:	 	Managing Partner

  

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