Document:

Exhibit 10.2

 

INDEMNIFICATION AGREEMENT

 

INDEMNIFICATION
AGREEMENT, dated as of April 7, 2004 (the “Agreement”), among CDRV
Investors, Inc., a Delaware corporation (“Investors”), CDRV Holdings,
Inc., a Delaware corporation and wholly-owned subsidiary of Investors (“Holdings”),
CDRV Acquisition Corporation, a Delaware corporation and wholly-owned
subsidiary of Holdings (“AcquisitionCo”), CDRV Delaware, Inc., a
Delaware corporation and wholly-owned subsidiary of Holdings (“MergerCo”),
Clayton, Dubilier & Rice, Inc., a Delaware corporation (“CD&R”),
and Clayton, Dubilier & Rice Fund VI Limited Partnership, a Cayman Islands
exempted limited partnership (together with any other investment vehicle
managed by CD&R, the “CD&R Fund”).  Capitalized terms used herein without definition have the
meanings set forth in Section 1 of this Agreement.

 

recitals

 

A.                                   The
CD&R Fund is managed by CD&R, and the general partner of the CD&R
Fund is Clayton, Dubilier & Rice Associates VI Limited Partnership, a
Cayman Islands exempted limited partnership (together with any general partner
of any other investment vehicle managed by CD&R, “CD&R Associates”),
and the managing general partner of CD&R Associates is CD&R Investment
Associates VI, Inc., a Cayman Islands exempted company (together with any other
general partner of CD&R Associates, “Associates Inc”).

 

B.                                     CD&R
organized Investors, Holdings, AcquisitionCo and MergerCo to effect the
acquisition of all of the outstanding capital stock of VWR International
Corporation, a Delaware corporation (the “Company”), and all of the
outstanding equity ownership interests of VWR International Immobilien GmbH, a
German private limited liability company (“Immobilien”), not held
directly or indirectly by the Company (the “Acquisition”) pursuant to the
Stock Purchase Agreement, dated as of February 15, 2004 (as the same may be
amended, amended and restated, waived, modified or supplemented from time to
time, the “Stock Purchase Agreement”), by and among Merck KGaA (“Merck”),
Merck Holding GmbH, VWR International Holding Europe GmbH, EMD Chemicals Inc.
and AcquisitionCo.

 

C.                                     Concurrently
with the execution and delivery of this Agreement, AcquisitionCo is entering
into a Consulting Agreement, dated as of the date hereof (as the same may be
amended, amended and restated, waived, modified or supplemented from time to
time, the “Consulting Agreement”), by and among Investors, Holdings,
AcquisitionCo, MergerCo and CD&R.

 

 

D.                                    In
order to finance the Acquisition and related transactions, Investors is offering,
issuing and selling shares of its common stock, par value $0.01 per share, to
CD&R Fund and certain co-investors and to certain purchasers who are
executive officers or key employees of Investors, Holdings, AcquisitionCo,
MergerCo or their respective Subsidiaries or successors in interest (such
transactions, whether concurrent with or following the consummation of the
Acquisition, collectively, the “Equity Offerings”).

 

E.                                      In
order to finance the Acquisition and related transactions, AcquisitionCo has entered
into a Credit Agreement, dated as of April     , 2004, by
and among AcquisitionCo, Deutsche Bank AG, New York Branch, as Administrative
Agent, Citicorp North America, Inc. as Syndication Agent, Bank of America, N.A.
as Documentation Agent, and the lenders named therein, providing for borrowing
of up to a maximum principal amount of $740 million (the “Senior Secured
Financing”).

 

F.                                      In
order to finance the Acquisition and related transactions, AcquisitionCo will
issue $200,000,000 aggregate principal amount of its senior notes due 2012 (the
“Senior Notes”) and $320,000,000 aggregate principal amount of its
senior subordinated notes due 2014 (the “Senior Subordinated Notes” and,
together with the Senior Notes, the “Notes”) in an offering to
institutional investors pursuant to Rule 144A under the Securities Act of 1933,
as amended (the “Note Offering”, and, together with the Senior Secured
Financing, collectively, the “Financing”).

 

G.                                     CD&R
has performed financial, management advisory and other services for
AcquisitionCo, including but not limited to providing assistance in connection
with (i) the preparation, negotation, execution and delivery of the
Stock Purchase Agreement and certain agreements with Merck and its Affiliates
related thereto, including without limitation: (a) certain distribution
and supply agreements, (b) a transition services agreement, (c)
an information services master agreements, (d) an intellectual property
assignment and license agreement; and (e) the additional agreements
described in Section 8.5 of the Stock Purchase Agreement; (ii) the
retention of legal, accounting, insurance, investment banking, financial,
environmental and other advisors and consultants in connection with the
Acquisition; (iii) the preparation, negotiation, execution and delivery
of the commitment, fee and engagement letters, registration rights and purchase
agreements, credit agreements, indentures and indenture supplements,
guarantees, mortgages, pledge agreements and other security agreements,
subscription agreements, stockholders agreements, registration and
participation agreements, exchange agent agreements, and other agreements,
instruments and documents relating to the Financing or the other Transactions;
(iv) the preparation and circulation of information and offering
memoranda and other materials in connection with the Financing; and (v)
the structuring, implementation and consummation of the Acquisition (such
services collectively, the “Acquisition Services”).

 

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H.                                    The
CD&R Fund will purchase capital stock of Investors pursuant to the Equity
Offerings, becoming the majority stockholder of Investors.

 

I.                                         Immediately
following the consummation of the Acquisition, (i) the Company will
merge with and into its wholly-owned subsidiary, VWR International, Inc., a
Pennsylvania corporation (“VWR”), with VWR as the surviving corporation,
(ii) AcquisitionCo will then merge with and into VWR, with VWR as the
surviving corporation, (iii) VWR will then contribute its equity
ownership interests in Immobilien to CDRV International Holdings II, Inc., a
Delaware corporation and wholly-owned subsidiary of AcquisitionCo (to be
re-named VWR International Holdings, Inc.) (“International Holdings II”),
(iv) Scientific Holdings Corp., a Delaware corporation and wholly-owned
subsidiary of VWR, will then merge with and into VWR, with VWR as the surviving
corporation, (v) VWR will then contribute all of its equity interests in
its wholly-owned subsidiaries, VWR International Ltd., VWR International S. de
R.L. de C.V. and Servicios Cientificos Especializados S. de R.L. de C.V., to
International Holdings II, (vi) VWR will then contribute its equity
interests in VWR International Europe GmbH to International Holdings II, (vii)
VWR will then merge with and into MergerCo, with MergerCo as the surviving
corporation, and the name of MergerCo will be changed to VWR International,
Inc. upon the consummation of such merger, and (ix) following the
consummation of the Acquisition, certain other intracompany transactions will
then be effected in order to facilitate the financing structure of the Company
and its Subsidiaries (such transactions, collectively, the “Restructuring”).

 

J.                                        It
is contemplated that AcquisitionCo or its successor in interest will offer (the
“Note Exchange Offer”) to exchange the Notes for substantially identical
notes to be registered on Form S-4 with the Securities and Exchange Commission
(the “Commission”).

 

K.                                    Investors
or one or more of its Subsidiaries from time to time in the future may (i)
offer and sell or cause to be offered and sold equity or debt securities (such
offerings, together with the Note Exchange Offer, collectively, the “Subsequent
Offerings”), including without limitation (a) offerings of shares of
capital stock of Investors, and/or options to purchase such shares to
employees, directors, managers and consultants of and to Investors or any of
its Subsidiaries (any such offering, a “Management Offering”), and (b)
one or more offerings of debt securities for the purpose of refinancing any
indebtedness of Investors or any of its Subsidiaries or for other corporate
purposes, and (ii) repurchase, redeem or otherwise acquire certain
securities of Investors or any of its Subsidiaries (any such repurchase or redemption,
a “Redemption”).

 

L.                                      The
parties hereto recognize the possibility that claims might be made against and
liabilities incurred by CD&R, the CD&R Fund, CD&R Associates,
Associates Inc. or related Persons or Affiliates under applicable securities
laws or otherwise in connection with the Transactions or the Securities
Offerings, or relating to

 

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other actions or omissions of
or by members of the Company Group, or relating to the provision by CD&R of
management consulting, monitoring and financial advisory services to the
Company Group, and the parties hereto accordingly wish to provide for CD&R,
the CD&R Fund, CD&R Associates and Associates Inc. and related Persons
and Affiliates to be indemnified in respect of any such claims and liabilities.

 

M.                                 The
parties hereto recognize that claims might be made against and liabilities
incurred by directors and officers of the Company Group in connection with
their acting in such capacity, and accordingly wish to provide for such
directors and officers to be indemnified to the fullest extent permitted by law
in respect of any such claims and liabilities.

 

NOW,
THEREFORE, in consideration of the foregoing premises, and the mutual
agreements and covenants and provisions herein set forth, the parties hereto
hereby agree as follows:

 

1.                                       Definitions.

 

(a)                                  “Affiliate”
means, with respect to any Person, any other Person directly or indirectly
Controlling, Controlled by or under common Control with, such Person.  “Control” of any Person shall consist
of the power to direct the management and policies of such Person (whether
through the ownership of voting securities, by contract, as trustee or
executor, or otherwise) and, without limiting the foregoing, shall be deemed to
exist upon the ownership of securities entitling the holder thereof to exercise
more than 50% of the voting power in the election of directors of such Person
(or other persons performing similar functions).

 

(b)                                 “Claim”
means, with respect to any Indemnitee, any claim against such Indemnitee
involving any Obligation with respect to which such Indemnitee may be entitled
to be defended and indemnified by any member of the Company Group under this
Agreement.

 

(c)                                  “Company
Group” means, collectively, Investors, Holdings, AcquisitionCo, MergerCo,
CDRV International Holdings I, Inc., a Delaware corporation and wholly-owned
subsidiary of Holdings (to be re-named CDRV International Holdings, Inc.),
International Holdings II, the Company, VWR and any of their respective Subsidiaries.

 

(d)                                 “Indemnitee”
means each of CD&R, the CD&R Fund, CD&R Associates, Associates
Inc., their respective successors and assigns, and the respective directors,
officers, partners, members, employees, agents, advisors, representatives and
controlling persons (within the meaning of the Securities Act of 1933, as
amended (the “Securities Act”)) of each of them and each other person
who is or becomes a director or an officer

 

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of any member of the Company
Group, in each case irrespective of the capacity in which such person acts.

 

(e)                                  “Obligations”
means, collectively, any and all claims, obligations, liabilities, causes of
actions, actions, suits, proceedings, investigations, judgments, decrees, losses,
damages, fees, costs and expenses (including without limitation interest,
penalties and fees and disbursements of attorneys, accountants, investment
bankers and other professional advisors), in each case whether incurred,
arising or existing with respect to third parties or otherwise at any time or
from time to time.

 

(f)                                    “Person”
means an individual, corporation, partnership, trust or other entity, including
a governmental or political subdivision or an agency or instrumentality
thereof.

 

(g)                                 “Related
Document” means any agreement, certificate, instrument or other document to
which any member of the Company Group may be a party or by which it or any of
its properties or assets may be bound or affected from time to time relating in
any way to the Transactions or any Securities Offering or any of the
transactions contemplated thereby, including without limitation, in each case
as the same may be amended, modified, waived or supplemented from time to time,
(i) any registration statement filed by or on behalf of any member of
the Company Group with the Commission in connection with the Transactions or
any Securities Offering, including all exhibits, financial statements and
schedules appended thereto, and any submissions to the Commission in connection
therewith, (ii) any prospectus, preliminary or otherwise, included in
such registration statements or otherwise filed by or on behalf of any member
of the Company Group in connection with the Transactions or any Securities
Offering or used to offer or confirm sales of their respective securities in
any Securities Offering, (iii) any private placement or offering
memorandum or circular, information statement or other information or materials
distributed by or on behalf of any member of the Company Group or any placement
agent or underwriter in connection with the Transactions or any Securities
Offering, (iv) any federal, state or foreign securities law or other
governmental or regulatory filings or applications made in connection with any
Securities Offering, the Transactions or any of the transactions contemplated
thereby, (v) any dealer-manager, underwriting, subscription, purchase,
stockholders, option or registration rights agreement or plan entered into or
adopted by any member of the Company Group in connection with any Securities
Offering, (vi) any purchase, repurchase, redemption or other agreement
entered into by any member of the Company Group in connection with any
Redemption, or (vii) any quarterly, annual or current reports or other
filing filed, furnished or supplementally provided by any member of the Company
Group with or to the Commission, including all exhibits, financial statements
and schedules appended thereto, and any submission to the Commission in
connection therewith.

 

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(h)                                 “Securities
Offerings” means the Note Exchange Offer, any Equity Offerings, any
Management Offering, any Redemption and any Subsequent Offering.

 

(i)                                     “Subsidiary”
means each corporation or other Person in which a Person owns or Controls,
directly or indirectly, capital stock or other equity interests representing
more than 50% of the outstanding voting stock or other equity interests.

 

(j)                                     “Transactions”
means the Acquisition, the Equity Offerings, the Financing, the Restructuring
and any other transactions contemplated by Section 2(b) of the Consulting
Agreement.

 

2.                                       Indemnification.

 

(a)                                  Each
of Investors, Holdings, AcquisitionCo and MergerCo (each an “Indemnifying
Party” and collectively, the “Indemnifying Parties”), jointly and
severally, agrees to indemnify, defend and hold harmless each Indemnitee:

 

(i)                                     from
and against any and all Obligations, whether incurred with respect to third
parties or otherwise, in any way resulting from, arising out of or in
connection with, based upon or relating to (A) the Securities Act, the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), or any
other applicable securities or other laws, in connection with any Securities
Offering, the Financing, any Related Document or any of the transactions
contemplated thereby, (B) any other action or failure to act of any
member of the Company Group or any of their predecessors, whether such action
or failure has occurred or is yet to occur or (C) except to the extent
that any such Obligation is found in a final judgment by a court of competent
jurisdiction to have resulted from the gross negligence or intentional
misconduct of CD&R, the performance by CD&R of management consulting,
monitoring, financial advisory or other services for any member of the Company
Group (whether performed prior to the date hereof, hereafter, pursuant to the
Consulting Agreement or otherwise); and

 

(ii)                                  to
the fullest extent permitted by applicable law, from and against any and all
Obligations in any way resulting from, arising out of or in connection with,
based upon or relating to (A) the fact that such Indemnitee is or was a
director or an officer of any member of the Company Group or is or was serving
at the request of such corporation as a director, officer, employee or agent of
or advisor or consultant to another corporation, partnership, joint venture,
trust or other enterprise or (B) any breach or alleged breach by such
Indemnitee of his or her fiduciary duty as a director or an officer of any
member of the Company Group;

 

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in each case including but not
limited to any and all fees, costs and expenses (including without limitation
fees and disbursements of attorneys and other professional advisers) incurred by
or on behalf of any Indemnitee in asserting, exercising or enforcing any of its
rights, powers, privileges or remedies in respect of this Agreement or the
Consulting Agreement.

 

(b)                                 Without
in any way limiting the foregoing Section 2(a), each of the Indemnifying
Parties agrees, jointly and severally, to indemnify, defend and hold harmless
each Indemnitee from and against any and all Obligations resulting from,
arising out of or in connection with, based upon or relating to liabilities
under the Securities Act, the Exchange Act or any other applicable securities
or other laws, rules or regulations in connection with (i) the
inaccuracy or breach of or default under any representation, warranty, covenant
or agreement in any Related Document, (ii) any untrue statement or
alleged untrue statement of a material fact contained in any Related Document
or (iii) any omission or alleged omission to state in any Related
Document a material fact required to be stated therein or necessary to make the
statements therein not misleading. 
Notwithstanding the foregoing, the Indemnifying Parties shall not be
obligated to indemnify such Indemnitee from and against any such Obligation to
the extent that such Obligation arises out of or is based upon an untrue
statement or omission made in such Related Document in reliance upon and in
conformity with written information furnished to Investors, Holdings,
AcquisitionCo or MergerCo, as the case may be, in an instrument duly executed
by such Indemnitee and specifically stating that it is for use in the
preparation of such Related Document.

 

(c)                                  Notwithstanding
anything in this Section 2 to the contrary, none of Holdings, AcquisitionCo,
MergerCo or any of their respective subsidiaries shall be liable for (i)
any Obligation resulting from, arising out of or in connection with any
Transaction solely involving Investors or any of its subsidiaries, other than
Holdings, AcquisitionCo, MergerCo or any of their respective subsidiaries
(including any such Obligation in connection with (a) the inaccuracy or
breach of or default under any representation, warranty, covenant or agreement
in any Related Document in respect of any such Transaction, (b) any
untrue statement or alleged untrue statement of a material fact in any such
Related Document or (c) any omission or alleged omission to state in any
such Related Document a material fact required to be stated therein or
necessary to make the statements therein not misleading) and (ii) more
than its reasonably proportional share, as determined by CD&R in its
reasonable discretion, of any Obligation resulting from, arising out of or in
connection with any Transaction involving any subsidiaries of Investors, other
than Holdings, AcquisitionCo, MergerCo or any of their respective subsidiaries,
on the one hand, and Holdings, AcquisitionCo, MergerCo or any of their
respective subsidiaries, on the other hand (including any such Obligation in
connection with (a) the inaccuracy or breach of or default under any
representation, warranty, covenant or agreement in any Related Document in
respect of any such Transaction, (b) any untrue statement or alleged
untrue statement of a material fact in any such Related

 

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Document or (c) any
omission or alleged omission to state in any such Related Document a material
fact required to be stated therein or necessary to make the statements therein
not misleading).  Investors and its
subsidiaries (other than Holdings, AcquisitionCo, MergerCo and their respective
subsidiaries) shall be liable for any Obligation or portion thereof that none
of Holdings, AcquisitionCo, MergerCo or any of their respective subsidiaries is
obligated to pay because of the provisions of the foregoing sentence.

 

3.                                       Contribution.

 

(a)                                  Except
to the extent that Section 3(b) is applicable, if for any reason the indemnity
provided for in Section 2(a) is unavailable or is insufficient to hold harmless
any Indemnitee from any of the Obligations covered by such indemnity, then the
Indemnifying Parties, jointly and severally, shall contribute to the amount
paid or payable by such Indemnitee as a result of such Obligation in such
proportion as is appropriate to reflect (i) the relative fault of each
member of the Company Group, on the one hand, and such Indemnitee, on the
other, in connection with the state of facts giving rise to such Obligation, (ii)
if such Obligation results from, arises out of, is based upon or relates to the
Transactions or any Securities Offering, the relative benefits received by each
member of the Company Group, on the one hand, and such Indemnitee, on the
other, from such Transaction or Securities Offering and (iii) if
required by applicable law, any other relevant equitable considerations.

 

(b)                                 If
for any reason the indemnity specifically provided for in Section 2(b) is
unavailable or is insufficient to hold harmless any Indemnitee from any of the
Obligations covered by such indemnity, then the Indemnifying Parties, jointly
and severally, shall contribute to the amount paid or payable by such
Indemnitee as a result of such Obligation in such proportion as is appropriate
to reflect (i) the relative fault of each of the members of the Company
Group, on the one hand, and such Indemnitee, on the other, in connection with
the information contained in or omitted from any Related Document, which
inclusion or omission resulted in the inaccuracy or breach of or default under
any representation, warranty, covenant or agreement therein, or which
information is or is alleged to be untrue, required to be stated therein or
necessary to make the statements therein not misleading, (ii) the
relative benefits received by the members of the Company Group, on the one
hand, and such Indemnitee, on the other, from such Transaction or Securities
Offering and (iii) if required by applicable law, any other relevant
equitable considerations.

 

(c)                                  For
purposes of Section 3(a), the relative fault of each member of the Company
Group, on the one hand, and of the Indemnitee, on the other, shall be
determined by reference to, among other things, their respective relative
intent, knowledge, access to information and opportunity to correct the state
of facts giving rise to such Obligation. 
For purposes of Section 3(b), the relative fault of each of the members
of the Company Group, on the one hand, and of the Indemnitee, on the other,

 

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shall be determined by
reference to, among other things, (i) whether the included or omitted
information relates to information supplied by the members of the Company
Group, on the one hand, or by such Indemnitee, on the other, and (ii)
their respective relative intent, knowledge, access to information and
opportunity to correct such inaccuracy, breach, default, untrue or alleged
untrue statement, or omission or alleged omission.  For purposes of Section 3(a) or 3(b), the relative benefits
received by each member of the Company Group, on the one hand, and the
Indemnitee, on the other, shall be determined by weighing the direct monetary
proceeds to the Company Group, on the one hand, and such Indemnitee, on the
other, from such Transaction or Securities Offering.

 

(d)                                 The
parties hereto acknowledge and agree that it would not be just and equitable if
contributions pursuant to Section 3(a) or 3(b) were determined by pro rata
allocation or by any other method of allocation that does not take into account
the equitable considerations referred to in such respective Section.  The Indemnifying Parties shall not be liable
under Section 3(a) or 3(b), as applicable, for contribution to the amount paid
or payable by any Indemnitee except to the extent and under such circumstances
any Indemnifying Party would have been liable to indemnify, defend and hold
harmless such Indemnitee under the corresponding Section 2(a) or 2(b), as
applicable, if such indemnity were enforceable under applicable law.  No Indemnitee shall be entitled to
contribution from any Indemnifying Party with respect to any Obligation covered
by the indemnity specifically provided for in Section 2(b) in the event that
such Indemnitee is finally determined to be guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
in connection with such Obligation and the Indemnifying Parties are not guilty
of such fraudulent misrepresentation.

 

4.                                       Indemnification
Procedures.

 

(a)                                  Whenever
any Indemnitee shall have actual knowledge of the reasonable likelihood of the
assertion of a Claim, CD&R (acting on its own behalf or, if requested by
any such Indemnitee other than itself, on behalf of such Indemnitee) or such
Indemnitee shall notify the appropriate member of the Company Group in writing
of the Claim (the “Notice of Claim”) with reasonable promptness after
such Indemnitee has such knowledge relating to such Claim and has notified
CD&R thereof.  The Notice of Claim
shall specify all material facts known to CD&R (or if given by such
Indemnitee, such Indemnitee) that may give rise to such Claim and the monetary
amount or an estimate of the monetary amount of the Obligation involved if
CD&R (or if given by such Indemnitee, such Indemnitee) has knowledge of
such amount or a reasonable basis for making such an estimate.  The failure of CD&R to give such Notice
of Claim shall not relieve any Indemnifying Party of its respective
indemnification obligations under this Agreement except to the extent that such
omission results in a failure of actual notice to it and it is materially
injured as a result of the failure to give such Notice of Claim.  The Indemnifying Parties shall, at their
expense, undertake the defense of such Claim with

 

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attorneys of their own choosing
satisfactory in all respects to CD&R. 
CD&R may participate in such defense with counsel of CD&R's
choosing at the expense of the Indemnifying Parties.  In the event that none of the Indemnifying Parties undertake the
defense of the Claim within a reasonable time after CD&R has given the
Notice of Claim, or in the event that CD&R shall in good faith determine
that the defense of any claim by the Indemnifying Parties is inadequate or may
conflict with the interest of any Indemnitee, CD&R may, at the expense of
the Indemnifying Parties and after giving notice to the Indemnifying Parties of
such action, undertake the defense of the Claim and compromise or settle the
Claim, all for the account of and at the risk of the Indemnifying Parties.  In the defense of any Claim, the
Indemnifying Parties shall not, except with the prior written consent of
CD&R, consent to entry of any judgment or enter into any settlement that
includes any injunctive or other non-monetary relief, or that does not include
as an unconditional term thereof the giving by the Person or Persons asserting
such Claim to such Indemnitee of a release from all liability with respect to
such Claim.  In each case, CD&R and
each other Indemnitee seeking indemnification hereunder will cooperate with the
Indemnifying Parties, so long as the Indemnifying Parties are conducting the
defense of the Claim, in the preparation for and the prosecution of the defense
of such Claim, including making available evidence within the control of
CD&R or such Indemnitee, as the case may be, and persons needed as
witnesses who are employed by CD&R or such Indemnitee, as the case may be, in
each case as reasonably needed for such defense and at cost, which cost, to the
extent reasonably incurred, shall be paid by the Indemnifying Parties.

 

(b)                                 The
Indemnifying Parties hereby agree to advance costs and expenses, including
attorney's fees, incurred by CD&R (acting on its own behalf or, if
requested by any such Indemnitee other than itself, on behalf of such
Indemnitee) or any Indemnitee in defending any Claim in advance of the final
disposition of such Claim upon receipt of an undertaking by or on behalf of
CD&R or such Indemnitee to repay amounts so advanced if it shall ultimately
be determined that CD&R or such Indemnitee is not entitled to be
indemnified by any Indemnifying Party as authorized by this Agreement.

 

(c)                                  CD&R
shall notify the Indemnifying Parties in writing of the amount of any Claim
actually paid by CD&R (the “Notice of Payment”).  The amount of any Claim actually paid by
CD&R shall bear simple interest at the rate equal to The Chase Manhattan
Bank prime rate as of the date of such payment plus 2% per annum, from the date
any Indemnifying Party receives the Notice of Payment to the date on which any
Indemnifying Party shall repay the amount of such Claim plus interest thereon
to CD&R.

 

5.                                       Certain
Covenants.  Investors agrees to cause
Holdings, AcquisitionCo and MergerCo to perform their respective obligations
under this Agreement.  The rights of
each Indemnitee to be indemnified under any other agreement, document,
certificate or instrument or applicable law are independent of and in addition
to any rights of such Indemnitee to be indemnified under this Agreement.  The rights of each Indemnitee and

 

10

 

the obligations of each
Indemnifying Party hereunder shall remain in full force and effect regardless
of any investigation made by or on behalf of such Indemnitee.  Following its merger with VWR, MergerCo, as
the surviving corporation, shall maintain the State of Delaware as its state of
incorporation and shall implement and maintain in full force and effect any and
all corporate charter and by-law provisions that may be necessary or
appropriate to enable it to carry out its obligations hereunder to the fullest
extent permitted by Delaware corporate law, including without limitation a provision
of its certificate of incorporation eliminating liability of a director for
breach of fiduciary duty to the fullest extent permitted by Section 102(b)(7)
(or any successor section thereto) of the General Corporation Law of the State
of Delaware, as it may be amended from time to time.

 

6.                                       Notices.  All notices and other communications
hereunder shall be in writing and shall be delivered by certified or registered
mail (first class postage prepaid and return receipt requested), telecopier,
overnight courier or hand delivery, as follows:

 

(a)                                  if
to Investors, Holdings, AcquisitionCo or MergerCo, to:

 

CDRV
Investors, Inc.

1403 Foulk Road, Suite 106 

Wilmington, Delaware 19803

Attention:  President

 

(b)                                 if
to CD&R, to:

 

Clayton,
Dubilier & Rice, Inc.

375 Park Avenue, 18th Floor

New York, New York 10152

Telephone: (212) 407-5200

Facsimile: (212) 407-5252

 

Attention: 
Richard J. Schnall

 

(c)                                  if
to the CD&R Fund, to:

 

Clayton,
Dubilier & Rice Fund VI Limited Partnership

1403 Foulk Road, Suite 106

Wilmington, Delaware 19803

 

Attention: 
General Partner

 

or to such other address or
such other person as Investors, Holdings, AcquisitionCo, MergerCo, or the
CD&R Fund, as the case may be, shall have designated by notice to the other
parties hereto.  All communications
hereunder shall be effective upon receipt by the

 

11

 

party to which they are
addressed.  A copy of any notice or
other communication given under this Agreement shall also be given to:

 

Debevoise
& Plimpton LLP

919 Third Avenue

New York, New York 10022

Telephone:  (212) 909-6000

Facsimile:  (212) 909-6836

 

Attention: 
Franci J. Blassberg, Esq.

 

7.                                       Governing
Law; Jurisdiction, Waiver of Jury Trial. 
This Agreement shall be governed in all respects, including validity,
interpretation and effect, by the law of the State of New York, regardless of
the law that might be applied under principles of conflict of laws to the
extent such principles would require or permit the application of the laws of
another jurisdiction.  Each of the
parties hereto irrevocably and unconditionally (a) agrees that any legal
suit, action or proceeding brought by any party hereto arising out of or based
upon this Agreement or the transactions contemplated hereby may be brought in
any court of the State of New York or Federal District Court for the Southern
District of New York located in the City, County and State of New York (each, a
“New York Court”), (b) waives, to the fullest extent that it may
effectively do so, any objection that it may now or hereafter have to the
laying of venue of any such proceeding brought in a New York Court, and any
claim that any such action or proceeding brought in a New York Court has been
brought in an inconvenient forum, (c) submits to the non-exclusive
jurisdiction of any New York Court in any suit, action or proceeding and (d)
ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER THIS
AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE
HEREBY WAIVES ANY RIGHT THAT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT
OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS
AGREEMENT, OR THE BREACH, TERMINATION OR VALIDITY OF THIS AGREEMENT.  With respect to clause (d) of the
immediately preceding sentence, each of the parties hereto acknowledges and
certifies that (i) no representative, agent or attorney of any other
party has represented, expressly or otherwise, that such other party would not,
in the event of litigation, seek to enforce the waiver contained therein, (ii)
it understands and has considered the implications of such waiver, (iii)
it makes such waiver voluntarily and (iv) it has been induced to enter
into this Agreement by, among other things, the mutual waivers and
certifications contained in this Section 7.

 

8.                                       Severability.  If any provision or provisions of this
Agreement shall be held to be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions hereof shall not in any
way be affected or impaired thereby.

 

12

 

9.                                       Successors;
Binding Effect.  Each Indemnifying
Party will require any successor (whether direct or indirect, by purchase,
merger, consolidation, reorganization or otherwise) to all or substantially all
of the business and assets of such Indemnifying Party, by agreement in form and
substance satisfactory to CD&R, the CD&R Fund and their counsel,
expressly to assume and agree to perform this Agreement in the same manner and
to the same extent that such Indemnifying Party would be required to perform if
no such succession had taken place. 
This Agreement shall be binding upon and inure to the benefit of each
party hereto and its successors and permitted assigns, and each other Indemnitee,
but neither this Agreement nor any right, interest or obligation hereunder
shall be assigned, whether by operation of law or otherwise, by Investors,
Holdings, AcquisitionCo or MergerCo without the prior written consent of
CD&R and the CD&R Fund, provided, that any such assignment in
connection with the Restructuring shall be expressly permitted hereunder and
shall not require the prior written consent of CD&R or the CD&R Fund.

 

10.                                 Miscellaneous.  The headings contained in this Agreement are
for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.  This
Agreement is not intended to confer any right or remedy hereunder upon any
Person other than each of the parties hereto and their respective successors
and permitted assigns and each other Indemnitee.  No amendment, modification, supplement or discharge of this
Agreement, and no waiver hereunder shall be valid and binding unless set forth
in writing and duly executed by the party or other Indemnitee against whom
enforcement of the amendment, modification, supplement or discharge is
sought.  Neither the waiver by any of
the parties hereto or any other Indemnitee of a breach of or a default under
any of the provisions of this Agreement, nor the failure by any party hereto or
any other Indemnitee on one or more occasions, to enforce any of the provisions
of this Agreement or to exercise any right, powers or privilege hereunder,
shall be construed as a waiver of any other breach or default of a similar nature,
or as a waiver of any provisions hereof, or any rights, powers or privileges
hereunder.  The rights and remedies
herein provided are cumulative and are not exclusive of any rights or remedies
that any party or other Indemnitee may otherwise have at law or in equity or
otherwise.  This Agreement may be
executed in several counterparts, each of which shall be deemed an original,
and all of which together shall constitute one and the same instrument.

 

[The remainder of this page has been left blank intentionally.]

 

13

 

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

 

	
   

  	
  CDRV
  INVESTORS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ THERESA
  A. GORE

  	
   

  
	
   

  	
   

  	
  Name: Theresa A. Gore

  
	
   

  	
   

  	
  Title: Vice President and Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CDRV
  HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ GEORGE
  K. JAQUETTE

  	
   

  
	
   

  	
   

  	
  Name: George K. Jaquette

  
	
   

  	
   

  	
  Title: Vice President and Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CDRV
  ACQUISITION CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ GEORGE
  K. JAQUETTE

  	
   

  
	
   

  	
   

  	
  Name: George K. Jaquette

  
	
   

  	
   

  	
  Title:Vice President and Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CDRV
  DELAWARE, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ GEORGE
  K. JAQUETTE

  	
   

  
	
   

  	
   

  	
  Name: George K. Jaquette

  
	
   

  	
   

  	
  Title: Vice President and Treasurer

  
						

 

 

 

	
   

  	
  CLAYTON,
  DUBILIER & RICE, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ THERESA
  A. GORE

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Theresa A.
  Gore

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice
  President, Treasurer, and Assistant Secretary

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CLAYTON,
  DUBILIER & RICE FUND VI

  LIMITED PARTNERSHIP

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  CD&R
  Associates VI Limited Partnership,

  its general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  CD&R
  Investment Associates VI, Inc., 

  its general partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ THERESA
  A. GORE

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Theresa A.
  Gore

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice
  President, Treasurer, and

  Assistant SecretaryExhibit
10.3

 

REGISTRATION AND
PARTICIPATION AGREEMENT

 

REGISTRATION AND PARTICIPATION AGREEMENT, dated as of
April 7, 2004, among CDRV Investors, Inc., a Delaware corporation (the “Company”),
Clayton, Dubilier & Rice Fund VI Limited Partnership, a Cayman Islands
exempted limited partnership (together with any successor investment vehicle
managed by Clayton, Dubilier & Rice, Inc., the “CD&R Fund”),
Banc of America Capital Investors, L.P., a Delaware limited partnership (“BACI”),
SSB Capital Partners (Master Fund) I, L.P., a Delaware limited partnership (“SSB”)
and CGI Private Equity L.P., LLC, a Delaware limited liability company (“CGI”,
and together with BACI and SSB, collectively, the “Co-Investors”) and
the other stockholders of the Company who may become parties hereto from time
to time pursuant to Section 7.1 or Section 7.7 (such other stockholders, the
CD&R Fund and the Co-Investors, collectively, the “Stockholders”).  The meanings of capitalized terms are found
in Article VI.

 

The Company and the Stockholders hereby agree as
follows:

 

Article I

Registration

 

Section 1.1                                      Registration
on Request.

 

(a)                                  Requests.

 

(i)                                     At
any time or from time to time, the Stockholders owning a Requisite Percentage
of the Registrable Securities shall have the right to make one or more written
requests pursuant to this Agreement that the Company effect the registration
under the Securities Act of all or part of the Registrable Securities of the
holder or holders making such request, which requests shall specify the
intended method of disposition thereof.

 

(ii)                                  From
and after (A) the establishment of a Public Market and (B) such
time as the Company shall have qualified for registration on Form S-3, so long
as either Co-Investor owns at least 200,000 shares of Common Stock, such Co-Investor
shall have the right to make two written requests pursuant to this Agreement
that the Company effect the registration on Form S-3 of all or part of the
Registrable Securities of the holder or holders making such request, which
requests shall specify the intended method of disposition thereof.

 

 

(b)                                 Notice
to Other Holders; Piggy-Back Rights. 
Upon receipt by the Company of a request for registration pursuant to
Section 1.1(a), the Company will promptly give written notice thereof to each
other holder of Registrable Securities, and such holder may request that the
Company also register all or a part of such holder’s Registrable Securities,
such request to be in writing given to the Company within 30 days after such
notice by the Company, and specifying the Registrable Securities intended to be
disposed of by such holder and the intended method of disposition thereof.

 

(c)                                  Obligation
to Effect Registration.  The Company
will use its best efforts to effect the registration under the Securities Act
to the extent required to permit (in accordance with the intended methods
thereof) the disposition of (i) the Registrable Securities that the
Company has been so requested to register pursuant to Section 1.1(a), and (ii)
all other Registrable Securities that the Company has been requested to
register pursuant to Section 1.1(b). 
Notwithstanding the foregoing, the Company shall not be required to
effect a registration requested pursuant to this Section 1.1 (and the Company
shall so notify the requesting holder or holders) if (x) the aggregate
number of Registrable Securities referred to be included in such registration
is less than 10% (in the case of a request pursuant to Section 1.1(a)(i)) or 1%
(in the case of a request pursuant to Section 1.1(a)(ii)) of the Registrable
Securities outstanding at such time or (y) the Board determines in its
good faith judgment, after consultation with a firm of nationally-recognized
underwriters, that there will be an adverse effect on a then-contemplated
public offering of the Common Stock.

 

(d)                                 Pro
Rata Allocation.  If the holders of
at least a majority (by number of shares) of the Registrable Securities for
which registration is being requested pursuant to this Section 1.1 determine,
following consultation with the managing underwriters (or, in an offering that
is not underwritten, with an investment banker), that the number of Registrable
Securities to be sold in any such offering should, because of market conditions
or otherwise, be limited to a lesser number than all the Registrable Securities
for which registration is so requested, the Company shall so notify the
requesting holders and the Company shall be required to include in such
registration only the lesser number of Registrable Securities (as so
determined) and all holders of Registrable Securities proposing to sell their
Registrable Securities in such registration shall share pro rata in the number of Registrable
Securities being offered on the basis of the number of Registrable Securities
requested to be included therein by such holders.

 

2

 

(e)                                  Registration
Statement Form.  Each registration
requested pursuant to this Section 1.1 shall be effected by the filing of a
registration statement on Form S-1, Form S-2 or Form S-3 (or any other form
that includes substantially the same information as would be required to be
included in a registration statement on such forms as currently constituted),
unless the use of a different form is (i) required by law or (ii)
permitted by law and agreed to by holders of at least a majority (by number of
shares) of the Registrable Securities as to which registration has been
requested pursuant to this Section 1.1. 
At any time after the Company has issued and sold any shares of its capital
stock registered under an effective registration statement under the Securities
Act, or after the Company shall have registered any class of equity securities
pursuant to Section 12 of the Exchange Act, it will use its best efforts to
qualify for registration on Form S-2 or Form S-3.

 

(f)                                    Expenses.  The Company will pay all Registration
Expenses in connection with (x) the first four registrations that are
effected as requested under Section 1.1(a)(i) and (y) the first two
registrations that are effected as requested under Section 1.1(a)(ii).  The Registration Expenses in connection with
any other registration requested under this Section 1.1 shall be apportioned
among the holders whose Registrable Securities are then being registered, on
the basis of the respective amounts (by number of shares) of Registrable
Securities then being registered by them or on their behalf, except that in the
case of all registrations requested under this Section 1.1, the Company shall
pay all amounts in respect of:

 

(i)                                     any
allocation of salaries of personnel of the Company and its subsidiaries or
other general overhead expenses of the Company and its subsidiaries or other
expenses for the preparation of financial statements or other data normally
prepared by the Company and its subsidiaries in the ordinary course of its
business,

 

(ii)                                  the
expenses of any officers’ and directors’ liability insurance,

 

(iii)                               the
expenses and fees for listing the securities to be registered on each exchange
on which similar securities issued by the Company are then listed or, if no
such securities are then listed, on an exchange or exchanges selected by the
Company, and

 

(iv)                              all
fees associated with filings required to be made with the NASD or any
comparable non-United States organization (including, if applicable, the fees
and expenses of any “qualified

 

3

 

independent underwriter” and its counsel as may be
required by the rules and regulations of the NASD or any comparable non-United
States organization).

 

Notwithstanding the foregoing, each seller of
Registrable Securities shall pay all Registration Expenses to the extent
required to be paid by such seller by applicable law.

 

(g)                                 Inclusion
of Other Securities.  In any
registration requested pursuant to this Section 1.1, the Company shall not
register securities other than Registrable Securities for sale for the account
of any Person, other than securities registered for the account of the Company,
unless permitted to do so by the written consent of holders of at least a
majority (by number of shares) of the Registrable Securities proposed to be
sold in such registration.

 

(h)                                 Effective
Registration Statement.  A
registration requested pursuant to this Section 1.1 will not be deemed to have
been effected unless it has become effective for the period specified in
Section 1.3(a)(ii).  Notwithstanding the
preceding sentence, a registration requested pursuant to this Section 1.1 that
does not become effective after the Company has filed a registration statement
with respect thereto solely by reason of the holder or holders of Registrable
Securities requesting the registration having refused to proceed shall
nevertheless be deemed to have been effected by the Company at the request of
such holder or holders.

 

Section 1.2                                      Incidental
Registration.

 

(a)                                  Notice
to Holders.  If the Company at any
time proposes to register any of its equity securities (as defined in the
Exchange Act) under the Securities Act (other than pursuant to Section 1.1 or
pursuant to a Special Registration), whether or not for sale for its own
account, and the registration form to be used may be used for the registration
of Registrable Securities, it will each such time give prompt written notice
following the filing of the related registration statement under the Securities
Act to all holders of Registrable Securities of such holders’ rights under this
Section.

 

(b)                                 Obligation
to Effect Registration.  Upon the
written request of any holder of Registrable Securities given to the Company within
30 days after the Company has given a notice pursuant to Section 1.2(a) (which
request shall specify the Registrable Securities intended to be disposed of by
such holder, the intended method of disposition thereof and the price at or
above which it would be acceptable to such holder to dispose of such

 

4

 

Registrable Securities), the Company will use its best
efforts to effect the registration under the Securities Act of all Registrable
Securities that the Company has been so requested to register by the holders
thereof to the extent required to permit the disposition of the Registrable
Securities to be so registered in accordance with the intended methods as so
indicated; provided that:

 

(i)                                     if
such registration shall be in connection with the initial public offering of
the Common Stock, the Company shall not include any Registrable Securities in
such proposed registration if the Board shall have determined, after
consultation with the managing underwriters for such offering (or, in
connection with an offering that is not underwritten, after consultation with
an investment banker), that it is not in the best interests of the Company to
include any Registrable Securities in such registration (in which case the
Company shall not include in such registration any securities not being sold
for the account of the Company);

 

(ii)                                  the
Company shall not include any Registrable Securities of any Management
Stockholder in any such proposed registration if and to the extent that the
Board shall have determined, after consultation with the managing underwriters
for such offering (or, in connection with an offering that is not underwritten,
an investment banker), that the participation of such Management Stockholder could
adversely affect the offering;

 

(iii)                               if
the Board determines, after consultation with the managing underwriters for
such offering (or, in connection with an offering that is not underwritten,
with an investment banker), that it is not in the best interests of the Company
to include all of the Registrable Securities requested to be included in such
registration (whether by the Company, pursuant to this Section 1.2 or pursuant
to any other rights granted by the Company to a holder or holders of its securities
to request or demand such registration or inclusion of any such securities in
any such registration):

 

(A)                              the
Company shall so advise each holder of Registrable Securities requesting
registration of the number of securities that the Board has determined will be
sold in such offering;

 

(B)                                the
Company shall include in such registration only the number (if any) of
Registrable Securities so

 

5

 

requested to be included that the Board has so
determined be sold and shall not include in such registration any securities
(other than securities being sold by the Company, which shall have priority in
being included in such registration) so requested to be included other than
Registrable Securities unless all Registrable Securities requested to be so
included are include therein;

 

(C)                                all
holders of Registrable Securities requested to be included therein shall share pro rata in the number of shares of
Registrable Securities included in such public offering on the basis of the
number of Registrable Securities requested to be included therein by such
holders; provided that in the case of a registration initially requested
or demanded by a holder or holders of securities other than Registrable
Securities pursuant to valid and enforceable contractual rights to make such
request or demand, the holders of the Registrable Securities requested to be
included therein and the holders of such other securities shall share pro rata (based on the number of shares if
the requested or demanded registration is to cover only Common Stock and, if
not, based on the proposed offering price of the total number of securities
included in such public offering requested to be included therein);

 

and the Company shall so provide in any registration
rights agreement or other agreement pursuant to which any holder of Registrable
Securities or any other securities of the Company shall be granted the right to
request or demand the registration of such securities;

 

(iv)                              if,
at any time after giving written notice pursuant to Section 1.2(a) of its
intention to register any securities and prior to the effective date of the
registration statement filed in connection with such registration, the Company
shall determine for any reason not to register such securities, the Company
may, at its election, give written notice of such determination to each holder
of Registrable Securities or other securities that was previously notified of
such registration and, thereupon, shall not register any Registrable Securities
in connection with such registration (but without prejudice to the rights of
any holder or holders of Registrable Securities to request that registration be
effected under Section 1.1); and

 

6

 

(v)                                 if
prior to the effective date of the registration statement filed in connection
with such registration, the Company is informed by the managing underwriter
(or, in connection with an offering which is not underwritten, by an investment
banker) that the price at which such securities are to be sold is a price below
that price which the requesting holders indicated to be acceptable, the Company
shall promptly notify the requesting holders of such fact, and provide each
such requesting holder with a reasonable opportunity to withdraw its request to
have all or a portion of its Registrable Securities included in such
registration statement.

 

(c)                                  Expenses.  The Company will pay all Registration
Expenses in connection with each registration of Registrable Securities requested
pursuant to this Section 1.2, including any registration that is not
effectuated as contemplated by clause (iv) of Section 1.2(b).

 

(d)                                 Effect
on Registrations Under Section 1.1. 
No registration effected under this Section 1.2 shall relieve the Company
from its obligation to effect registrations upon request under Section 1.1.

 

Section 1.3                                      Registration
Procedures.

 

(a)                                  General.  If and whenever the Company is required to
use its best efforts to effect the registration of any Registrable Securities under
the Securities Act pursuant to Section 1.1 or Section 1.2, the Company will:

 

(i)                                     promptly
prepare and file with the Securities and Exchange Commission a registration
statement with respect to such securities, promptly make all required filings
with the NASD and use its best efforts to cause such registration statement to
become effective;

 

(ii)                                  promptly
prepare and file with the Securities and Exchange Commission such amendments
and supplements to such registration statement and the prospectus used in
connection therewith and such other documents as may be necessary to keep such
registration statement effective and to comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by
such registration statement until such time as all of such securities have been
disposed of in accordance with the intended methods of disposition by the
seller or sellers thereof set forth in such registration statement, but in no
event for a period of

 

7

 

more than six months after such registration statement
becomes effective;

 

(iii)                               promptly
furnish to counsel (if any) selected by the holders of Registrable Securities
constituting a majority (by number of shares) of the Registrable Securities
covered by such registration statement copies of all documents proposed to be
filed with the Securities and Exchange Commission in connection with such
registration, which documents will be subject to the review of such counsel;

 

(iv)                              promptly
furnish to each seller of such securities, without charge, (A) such
number of conformed copies of such registration statement and of each such
amendment and supplement thereto (in each case, including all exhibits and
documents filed therewith (other than those filed on a confidential basis), but
not to exceed two copies in the case of such exhibits and documents), (B)
such number of copies of the prospectus included in such registration statement
(including each preliminary prospectus and any summary prospectus) in
conformity with the requirements of the Securities Act and (C) such
other documents, in each case as such seller may reasonably request in order to
facilitate the disposition of the securities owned by such seller;

 

(v)                                 use
its best efforts (A) to register or qualify the securities covered by
such registration statement under such other securities or blue sky laws of
such jurisdictions as each seller shall request, (B) to keep such
registration or qualification in effect for so long as such registration
statement remains in effect and (C) to do any and all other acts and
things which may be necessary or advisable to enable such seller to consummate
the disposition in such jurisdictions of the securities owned by such seller,
except that the Company shall not for any such purpose be required to qualify
generally to do business as a foreign corporation in any jurisdiction wherein
it is not so qualified, subject itself to taxation in any jurisdiction wherein
it is not so subject, or take any action which would subject it to general
service of process in any jurisdiction wherein it is not so subject;

 

(vi)                              promptly
notify each holder of Registrable Securities covered by such registration
statement: (A) if such registration statement, at the time it or any
amendment thereto became effective, contained an untrue statement of a material
fact or omitted to state a

 

8

 

material fact required to be stated therein or
necessary to make the statements therein not misleading upon discovery by the
Company of such material misstatement or omission; or(B) upon discovery
by the Company of the happening of any event as a result of which the Company
believes there would be such a material misstatement or omission, and, as promptly
as practicable, prepare and file with the Securities and Exchange Commission a
post-effective amendment to such registration statement and use its best
efforts to cause such post-effective amendment to become effective such that
such registration statement, as so amended, shall 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
(C) at any time when a prospectus relating thereto is required to be
delivered under the Securities Act, if the prospectus included in such
registration statement, as then in effect, includes an untrue statement of a
material fact or omits 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 upon discovery by the Company of
such material misstatement or omission or upon discovery by the Company of the
happening of any event as a result of which the Company believes there would be
a material misstatement or omission, and, as promptly as is practicable,
prepare and furnish to such holder a reasonable number of copies of a
supplement to or an amendment of such prospectus as may be necessary so that,
as thereafter delivered to the purchasers of such securities, such prospectus
shall not include 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;

 

(vii)                           otherwise
use its best efforts to comply with all applicable rules and regulations of the
Securities and Exchange Commission, and make available to its security holders,
as soon as reasonably practicable, an earnings statement of the Company
complying with the provisions of Section 11(a) of the Securities Act and Rule
158 under the Securities Act;

 

(viii)                        promptly
notify each seller of any securities covered by such registration statement,
when such registration statement, or any post-effective amendment to such
registration statement, shall have become effective, or any amendment of or
supplement to the prospectus used in connection therewith shall have been filed
of:

 

9

 

(A) any request by the Securities and Exchange
Commission to amend such registration statement or to amend or supplement such
prospectus or for additional information, (B) the issuance by the
Securities and Exchange Commission of any stop order suspending the
effectiveness of such registration statement or of any order preventing or
suspending the use of any preliminary prospectus and (C) the suspension
of the qualification of such securities for offering or sale in any
jurisdiction, or the institution of any proceedings for any of such purposes;

 

(ix)                                use
its best efforts to:  (A) (1)
list such securities on any securities exchange on which the Common Stock is
then listed or, if no Common Stock is then listed, on an exchange selected by
the Company, if such listing is then permitted under the rules of such exchange
or(2) if such listing is not practicable or the Board determines that
quotation as a NASDAQ National Market System security is preferable, to secure
designation of such securities as a NASDAQ “national market system security”
within the meaning of Rule 11Aa2-1 under the Exchange Act and(B) provide
and cause to be maintained a transfer agent and registrar for such Registrable
Securities not later than the effective date of such registration statement;

 

(x)                                   use
every reasonable effort to obtain the lifting of any stop order that might be
issued suspending the effectiveness of such registration statement or of any
order preventing or suspending the use of any preliminary prospectus; and

 

(xi)                                use
every reasonable effort to cause such Registrable Securities covered by such
registration statement to be registered with or approved by such other
governmental agencies or authorities as may be necessary to enable the sellers
thereof to consummate the disposition of such Registrable Securities.

 

(b)                                 Obligation
to Furnish Information to the Company. 
The Company may require each seller of any Registrable Securities as to
which any registration is being effected to furnish to the Company such
information regarding such seller and the distribution of such securities as
the Company may from time to time reasonably request in writing and as shall be
required by law in connection therewith. 
Each such holder agrees to furnish promptly to the Company all
information required to be disclosed in order to make the information
previously furnished to the Company by such holder not materially
misleading.  The Company agrees not to
file or

 

10

 

make any amendment to any registration statement with
respect to any Registrable Securities, or any amendment of or supplement to the
prospectus used in connection therewith, which refers to any seller of any
securities covered thereby by name, or otherwise identifies such seller as the
holder of any securities of the Company, without the consent of such seller,
such consent not to be unreasonably withheld, except that no such consent shall
be required for any disclosure that is required by law.

 

(c)                                  Discontinuance
or Suspension of Dispositions.  By
acquisition of Registrable Securities, each holder of such Registrable
Securities shall be deemed to have agreed that upon receipt of any notice from
the Company pursuant to Section 1.3(a)(vi), such holder will promptly
discontinue such holder’s disposition of Registrable Securities pursuant to the
registration statement covering such Registrable Securities until such holder
shall have received notice from the Company that such registration statement has
been amended or copies of the supplemented or amended prospectus, as the case
may be.  If so directed by the Company,
each holder of Registrable Securities will deliver to the Company (at the
Company’s expense) all copies, other than permanent file copies, in such
holder’s possession of the prospectus covering such Registrable Securities at
the time of receipt of such notice.  In
the event that the Company shall give any such notice, the period mentioned in
Section 1.3(a)(ii) shall be extended by the number of days during the period
from and including the date of the giving of such notice to and including the
date when each seller of any Registrable Securities covered by such
registration statement shall have received the copies of the supplemented or
amended prospectus contemplated by Section 1.3(a)(vi).

 

(d)                                 Registrable
Securities Issuable Upon Exercise of Employee Options.  Although shares of Common Stock issuable
upon the exercise of options may be included in the definition of Registrable
Securities, the Company shall, in respect of any such Registrable Securities
requested to be registered pursuant hereto, be required to include in any
registration statement shares of Common Stock issuable upon the exercise of
such options only if the Company has received assurances, reasonably
satisfactory to it, that such options will be exercised promptly after such
registration statement has become effective or the sale to an underwriter has
been consummated so that only Common Stock shall be distributed to the public
under such registration statement.

 

(e)                                  No
Obligation to Register In The Absence of Required Financial Information.  Notwithstanding any other provision of this
Agreement, the parties hereto acknowledge that the Company shall have no

 

11

 

obligation to prepare or file any registration
statement prior to the time that financial information required to be included
therein is available for inclusion therein.

 

Section 1.4                                      Underwritten
Offerings.  In addition to the
procedures and other agreements, set forth in Section 1.1 through Section 1.3,
the provisions of this Section 1.4 will apply to any registration that is an
underwritten offering.

 

(a)                                  Underwritten
Offerings Exclusive.  Whenever a
registration requested pursuant to Section 1.1 is for an underwritten offering,
only securities which are to be distributed by the underwriters may be included
in the registration.

 

(b)                                 Underwriting
Agreement.  If requested by the
underwriters for any underwritten offering by holders of Registrable Securities
pursuant to a registration requested under Section 1.1, the Company shall enter
into an underwriting agreement with such underwriters for such offering, such
agreement to be reasonably satisfactory in substance and form to the holders of
Registrable Securities constituting a majority (by number of shares) of the
Registrable Securities to be covered by such registration and to the
underwriters and to contain such representations and warranties by the Company
and such other terms and provisions as are customarily contained in agreements
of this type, including, but not limited to, indemnities to the effect and to
the extent provided in Section 1.6 and holdback arrangements.  The holders of Registrable Securities to be
distributed by such underwriters shall be parties to such underwriting
agreement and may, at their option, require that any or all of the
representations and warranties by, and the agreements on the part of, the
Company to and for the benefit of such underwriters be made to and for the
benefit of such holders of Registrable Securities and that any or all of the
conditions precedent to the obligations of such underwriters under such
underwriting agreement shall also be conditions precedent to the obligations of
such holders of Registrable Securities. 
In the event that any condition to the obligations under any such
underwriting agreement are not met or waived, and such failure to be met or
waived is not attributable to the fault of the selling stockholders requesting
a demand registration pursuant to Section 1.1, such request for registration
shall not be deemed exercised for purposes of determining whether such
registration has been effected for purposes of Section 1.1(a), Section 1.1(b)
or Section 1.1(f).  No holder of
Registrable Securities shall be required by the Company to make any
representations or warranties to, or agreements with, the Company or the
underwriters other than as set forth in Section 1.6(b) and Section 1.7,
representations, warranties or agreements regarding such holder and such

 

12

 

holder’s intended method of distribution and any other
representations required by applicable law.

 

(c)                                  Selection
of Underwriters.  Whenever a
registration requested pursuant to Section 1.1 is for an underwritten offering,
the Company will have the right to select the managing underwriters to
administer the offering, which managing underwriters shall be underwriters of
nationally recognized standing.  If the
Company at any time proposes to register any of its securities under the
Securities Act for sale for its own account and such securities are to be
distributed by or through one or more underwriters, the Company will have the
right to select the managing underwriters to administer the offering at least
one of which shall be an underwriter of nationally recognized standing.

 

(d)                                 Incidental
Underwritten Offerings.  Subject to
the provisions of the proviso to the first sentence of Section 1.2(b), if
the Company at any time proposes to register any of its equity securities under
the Securities Act (other than pursuant to Section 1.1 or pursuant to a Special
Registration), whether or not for its own account, and such securities are to
be distributed by or through one or more underwriters, the Company will give
prompt written notice to all holders of Registrable Securities following the
filing of the registration statement in respect thereof under the Securities
Act and, if requested by any holder of Registrable Securities within 30 days
after the Company has given notice, will use its best efforts to arrange for
such underwriters to include the Registrable Securities to be offered and sold
by such holder among those to be distributed by such underwriters.  The holders of Registrable Securities to be
distributed by such underwriters shall be parties to the underwriting agreement
between the Company and such underwriters and may, at their option, require
that any or all of the representations and warranties by, and the other agreements
on the part of, the Company to and for the benefit of such underwriters shall
also be made to and for the benefit of such holders of Registrable Securities
and that any or all of the conditions precedent to the obligations of the
underwriters under such underwriting agreement shall also be conditions
precedent to the obligations of such holders of Registrable Securities.  No such holder of Registrable Securities
shall be required by the Company to make any representations or warranties to,
or agreements with, the Company or the underwriters other than as set forth in
Section 1.6(b) and Section 1.7, representations, warranties or agreements
regarding such holder and such holder’s intended method of distribution and any
other representations required by applicable law.

 

13

 

(e)                                  Preparation;
Reasonable Investigation.  In
connection with the preparation and filing of each registration statement
registering Registrable Securities under the Securities Act, the Company will
give the holders of such Registrable Securities so to be registered and their
underwriters, if any, and their respective counsel and accountants the
opportunity to participate in the preparation of such registration statement,
each prospectus included therein or filed with the Securities and Exchange
Commission, and each amendment thereof or supplement thereto, and will give
each of them such access to its books and records and such opportunities to
discuss the business of the Company with its officers and the independent
public accountants who have issued audit reports on its financial statements as
shall be necessary, in the opinion of such holders’ and such underwriters’
respective counsel, to conduct a reasonable investigation within the meaning of
the Securities Act.

 

(f)                                    Furnishing
of “Comfort Letter” to Sellers.  In
connection with an underwritten public offering, the Company will furnish to
each seller of Registrable Securities included in such offering a signed
counterpart, addressed to the sellers, of a “comfort” letter signed by the
independent public accountants who have issued an audit report on the Company’s
financial statements included in the registration statement, subject to such
seller having executed and delivered to the independent public accountants such
certificates and documents as such accountants shall reasonably request, if
such accountants shall be permitted by the standards applicable to certified
public accountants or such accountants’ internal operating procedures to
deliver a “comfort” letter to such seller, covering substantially the same
matters with respect to the registration statement (and the prospectus included
therein) and with respect to events subsequent to the date of such financial
statements, as are customarily covered in n accountants’ letters delivered to
the underwriters in underwritten public offerings of securities.

 

Section 1.5                                      Restriction on
Additional Registrations Within Six Months of Previous Registration.  If and whenever the Company is required to
use its best efforts to effect the registration of any Registrable Securities
under the Securities Act pursuant to Section 1.1 or Section 1.2, and if such
registration shall not have been withdrawn or abandoned, the Company shall not
be obligated to and shall not file any registration statement with respect to
any of its securities (including Registrable Securities) under the Securities
Act (other than a Special Registration), whether of its own accord or at the
request or demand of holders of any of its securities, until a period of six
months shall have elapsed from the effective date of such previous
registration; and the Company shall so provide in any registration statement
with respect to its securities.

 

14

 

Section 1.6                                      Indemnification.

 

(a)                                  Indemnification
by the Company.  In the event of any
registration of any Registrable Securities under the Securities Act pursuant to
Section 1.1 or Section 1.2, the Company will and hereby does indemnify and hold
harmless each seller of such securities, its directors, officers, and
employees, each other person who participates as an underwriter, broker or
dealer in the offering or sale of such securities and each other person, if
any, who controls such seller or any such participating person within the
meaning of either Section 15 of the Securities Act or Section 20 of the
Exchange Act, against, and reimburse, any and all losses, claims, damages or
liabilities, joint or several, to which such seller or any such director,
officer, employee, participating person or controlling person may become
subject under the Securities Act or otherwise (including, but not limited to,
the reasonable fees and expenses of legal counsel incurred in connection with
any claim for indemnity hereunder), insofar as such losses, claims, damages or
liabilities (or actions or proceedings in respect thereof) arise out of or are
based upon:

 

(i)                                     any
untrue statement or alleged untrue statement of a fact contained in any
registration statement under which such securities were registered under the
Securities Act, any preliminary prospectus, final prospectus or summary
prospectus contained therein or related thereto, or any amendment or supplement
thereto or

 

(ii)                                  any
omission or alleged omission to state a fact required to be stated in any such
registration statement, preliminary prospectus, final prospectus, summary
prospectus, amendment or supplement or necessary to make the statements therein
not misleading;

 

and the Company will reimburse such seller and each
such director, officer, employee, participating person and controlling person
for any legal or any other expenses reasonably incurred by them in connection
with investigating or defending any such loss, claim, liability, action or
proceeding; provided that the Company shall not be liable in any such
case to the extent that any such loss, claim, damage, liability or expense
arises out of or is based upon an untrue statement or omission made in such
registration statement, any such preliminary prospectus, final prospectus,
summary prospectus, amendment or supplement in reliance upon and in conformity
with written information furnished to the Company by such seller or
participating person expressly for use in the preparation thereof;

 

15

 

and provided, further, that the Company
shall not be liable in any such case to the extent that any such loss, claim,
damage, liability or expense arises out of or is based upon an untrue statement
or alleged untrue statement or omission or alleged omission in the prospectus,
if such untrue statement or alleged untrue statement or omission or alleged
omission is completely corrected in an amendment or supplement to the
prospectus and the seller of Registrable Securities thereafter fails to deliver
such prospectus as so amended or supplemented prior to or concurrently with the
sale of Registrable Securities to the person asserting such loss, claim,
damage, liability or expense after the Company had furnished such seller with a
sufficient number of copies of the same or if the seller received notice from
the Company of the existence of such untrue statement or alleged untrue
statement or omission or alleged omission and the seller continued to dispose
of Registrable Securities prior to the time of the receipt of either an amended
or supplemented prospectus which completely corrected such untrue statement or
omission or a notice from the Company that the use of the existing prospectus
may be resumed.  Such indemnity shall
remain in full force and effect regardless of any investigation made by or on
behalf of such seller or any such director, officer, employee, participating
person or controlling person and shall survive the transfer of such securities
by such seller.

 

(b)                                 Indemnification
by the Sellers.  In the event of any
registration of any Registrable Securities under the Securities Act pursuant to
Section 1.1 or Section 1.2, each of the prospective sellers of such securities
will indemnify and hold harmless (severally but not jointly) the Company, each
director of the Company, each officer of the Company who shall sign such
registration statement, each other person who participates as an underwriter,
broker or dealer in the offering or sale of such securities and each other
person, if any, who controls the Company or any such participating person
within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act, against any and all losses, claims, damages or liabilities, joint
or several, to which the Company or any such director, officer, employee,
participating person or controlling person may become subject under the
Securities Act or otherwise (including, but not limited to, the reasonable fees
and expenses of legal counsel incurred in connection with any claim for
indemnity hereunder), insofar as such losses, claims, damages or liabilities
(or actions or proceedings in respect thereof) arise out of or are based upon
any untrue statement or alleged untrue statement of a fact contained in, or any
omission or alleged omission to state a fact with respect to such seller
required to be stated in, any registration statement under which such
securities were registered under the Securities Act, any preliminary
prospectus, final prospectus or summary

 

16

 

prospectus contained therein or related thereto, or
any amendment or supplement thereto, if such statement or omission was made in
reliance upon and in conformity with written information furnished to the Company
by such seller expressly for use in the preparation of such registration
statement, preliminary prospectus, final prospectus, summary prospectus,
amendment or supplement; and the seller will reimburse the Company and each
such director, officer, employee, participating person and controlling person
for any legal or any other expenses reasonably incurred by them in connection
with investigating or defending any such loss, claim, liability, action or
proceeding; provided that the liability of each such seller will be in
proportion to and limited to the net amount received by such seller (after
deducting any underwriting discount and expenses) from the sale of Registrable
Securities pursuant to such registration statement.  Such indemnity shall remain in full force and effect regardless
of any investigation made by or on behalf of the Company or any such director,
officer, participating person or controlling person and shall survive the
transfer of such securities by such seller.

 

(c)                                  Notices
of Claims, etc.  Promptly after
receipt by an indemnified party of notice of the commencement of any action or
proceeding involving a claim referred to in the preceding paragraphs of this
Section 1.6, such indemnified party will, if a claim in respect thereof is to be
made against an indemnifying party hereunder, give written notice to the latter
of the commencement of such action, provided that the failure of any
indemnified party to give notice as provided herein shall not relieve the
indemnifying party of its obligations under the preceding paragraphs of this
Section 1.6.  In case any such action is
brought against an indemnified party, the indemnifying party will be entitled
to participate therein and to assume the defense thereof, jointly with any
other indemnifying party similarly notified to the extent that it may wish,
with counsel reasonably satisfactory to such indemnified party, and after
notice from the indemnifying party to such indemnified party of its election so
to assume the defense thereof, the indemnifying party will not be liable to
such indemnified party for any legal or other expenses subsequently incurred by
the latter in connection with the defense thereof; and provided, further,
that if such indemnified party and the indemnifying party reasonably determine,
based upon advice of their respective independent counsel, that a conflict of
interest may exist between the indemnified party and the indemnifying party
with respect to such action and that it is advisable for such indemnified party
to be represented by separate counsel, such indemnified party may retain other
counsel, reasonably satisfactory to the indemnifying party, to represent such
indemnified party, and the indemnifying party shall pay all reasonable fees and
expenses of such counsel.  No
indemnifying

 

17

 

party, in the defense of any such claim or litigation,
shall, except with the consent of such indemnified party, which consent shall
not be unreasonably withheld, consent to entry of any judgment or enter into
any settlement which does not include as an unconditional term thereof the
giving by the claimant or plaintiff to such indemnified party of a release from
all liability in respect to such claim or litigation.

 

(d)                                 Other
Indemnification.  Indemnification
similar to that specified in the preceding paragraphs of this Section 1.6
(with appropriate modifications) shall be given by the Company and each seller
of Registrable Securities with respect to any required registration, listing or
other qualification of such Registrable Securities under any United States
federal or state law, any non-United Sates law or any regulation of a
governmental authority other than the Securities Act.

 

(e)                                  Other
Remedies.  If for any reason the
foregoing indemnity under Section 1.6(a) or Section 1.6(b) is unavailable, or
is insufficient to hold harmless an indemnified party, other than by reason of
the exceptions provided therein, then the indemnifying party and the
indemnified party under Section 1.6(a) or Section 1.6(b) shall contribute to
the amount paid or payable by the indemnified party as a result of such losses,
claims, damages, liabilities or expenses (i) in such proportion as is
appropriate to reflect the relative fault of the indemnifying party on the one
hand and the indemnified party on the other or (ii) if the allocation
provided by clause (i) above is not permitted by applicable law, or provides a
lesser sum to the indemnified party than the amount hereinafter calculated, in
such proportion as is appropriate to reflect not only the relative fault of the
indemnifying party on the one hand and the indemnified party on the other but
also the relative benefits received by the indemnifying party and the
indemnified party from the offering of Registrable Securities (taking into
account the portion of the proceeds of the offering realized by each such
party) as well as any other relevant equitable considerations.  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.  Any
party’s obligation to contribute pursuant to this Section 1.6(e) is several (in
proportion to the relative value of their Registrable Securities covered by a
registration statement) and not joint with the obligations of any other
party.  No party shall be liable for
contribution under this Section 1.6(e) except to the extent and under such circumstances
as such party would have been liable to indemnify under this Section 1.6 if
such indemnification were enforceable under applicable law.

 

18

 

(f)                                    Officers
and Directors.  As used in this
Section 1.6, the terms “officers” and “directors” shall include the direct and
indirect partners or members of the holders of Registrable Securities which are
partnerships or limited liability companies, as the case may be.

 

(g)                                 Indemnification
Payments.  The indemnification and
contribution required by this Section 1.6 shall be made by periodic payments of
the amount thereof during the course of the investigation or defense, as and
when bills are received or expense, loss, damage or liability is incurred;
provided that in the event it is ultimately determined that any amounts so paid
were not subject to indemnification or contribution hereunder, the recipient
thereof shall promptly return such amounts to payer thereof.

 

Section 1.7                                      Holdback
Agreements.  If and whenever the
Company proposes to register any of its equity securities under the Securities
Act, whether or not for its own account (other than pursuant to a Special
Registration), or is required to use its best efforts to effect the
registration of any Registrable Securities under the Securities Act pursuant to
Section 1.1 or Section 1.2, each holder of Registrable Securities agrees by
acquisition of such Registrable Securities that, unless not so required by the
managing underwriter, it will not effect (other than pursuant to such
registration) any public sale or distribution, including, but not limited to,
any sale pursuant to Rule 144, of any Registrable Securities, any other equity
securities of the Company or any securities convertible into or exchangeable or
exercisable for any equity securities of the Company during the Holdback Period
and the Company further agrees not to effect (other than pursuant to such
registration or pursuant to a Special Registration) any public sale or
distribution, or to file any registration statement (other than such registration
or a Special Registration) covering any, of its equity securities, or any
securities convertible into or exchangeable or exercisable for such securities,
during the Holdback Period if required by the managing underwriter.  The Company shall include holdback
provisions containing terms no less restrictive than those set forth in this
Section 1.7 in each registration rights agreement or other agreement
pursuant to which any holder of Registrable Securities or any other securities
of the Company shall be granted the right to request or demand the registration
of such securities.

 

Article II

Restrictions on Transfer

 

Section 2.1                                      Restrictions
on Transfer.  (a)  Until the earlier of an initial Public
Offering and the fifth anniversary hereof, no Minority Stockholder may,

 

19

 

without the prior written consent of the CD&R Fund, Transfer any
Covered Shares to any Person, other than any Transfer:

 

(i)                                     to
the Company, the CD&R Fund or any Affiliate or designee of the CD&R
Fund, it being understood that, upon the consummation of any such Transfer to
the CD&R Fund or any of its Affiliates or designees, such shares of capital
stock shall cease to be “Covered Shares” for purposes of this Agreement;

 

(ii)                                  pursuant
to Article III or Article IV of this Agreement; or

 

(iii)                               to
any Affiliate of such Minority Stockholder or, upon the liquidation or
dissolution of such Minority Stockholder, to the partners or members of such
Minority Stockholder;

 

provided, that, prior to any
Transfer of Covered Shares pursuant to Section 2.1(a)(iii), such Minority
Stockholder shall:

 

(x)                                   provide
written notice of such Transfer to the Company and the CD&R Fund, which
notice shall certify (A) that any such Affiliate, partner or member, as
the case may be, (1) is an “accredited investor,” as that term is then
defined in Rule 501(a) under the Securities Act or applicable state securities
laws, and (2) has agreed in writing to be bound by the terms of this
Agreement, and (B) in the event that such Transfer shall result in more
than one Person owning such Covered Shares, that such Persons have executed
powers of attorney in form and substance acceptable to the Company and the
CD&R Fund, irrevocably appointing one or more individuals reasonably acceptable
to the Company and the CD&R Fund as such Persons’ attorney-in-fact with
full power and authority to act on behalf of such Persons for all purposes of
this Agreement and with respect to such Persons’ investment in the Company, and
providing that the Company and the CD&R Fund shall be entitled to deal
exclusively with such attorneys-in-fact for all such purposes,

 

(y)                                 provide
the Company or the CD&R Fund with such other written representations as to
factual matters regarding such Transfer (including, without limitation, the
number of Persons to whom such Minority Stockholder proposes to Transfer
Covered Shares) as the Company or the CD&R Fund may reasonably request in
order to permit the Company or the CD&R Fund and their

 

20

 

respective outside counsel to determine whether such
Transfer is a Prohibited Transfer in accordance with Section 2.3; and

 

(z)                                   deliver
an opinion of counsel to the Company and the CD&R Fund, which opinion and
counsel shall be reasonably satisfactory to the Company and the CD&R Fund
(it being acknowledged that in-house counsel to each of the Co-Investors and,
in the case of BACI, Kennedy Covington Lobdell & Hickman, L.L.P., shall be
reasonably satisfactory to the Company and the CD&R Fund) to the effect
that the Transfer may be effected without registering the Covered Shares under
the Securities Act.

 

(b)                                 From
and after the fifth anniversary hereof, for so long as the initial Public
Offering shall not have been consummated, any Minority Stockholder may Transfer
Covered Shares to (i) any permitted transferee pursuant
to Section 2.1(a) in accordance with the terms of such Section
or (ii) any other Person; provided, that any such Transfer of
Covered Shares by a Minority Stockholder pursuant to the preceding clause (ii)
shall be subject to compliance with (A) the requirements set forth in
subparagraphs (x) and (y) of Section 2.1(a) and (B) the right of first
refusal set forth in Section 2.2.

 

(c)                                  Following
the consummation of the initial Public Offering, any Minority Stockholder may
Transfer Covered Shares to any Person; provided, that (i) any
such Transfer shall subject to compliance with Section 1.7 and (ii)
prior to any such Transfer, such Minority Stockholder shall deliver an opinion
of counsel to the Company and the CD&R Fund, which opinion and counsel
shall be reasonably satisfactory to the Company and the CD&R Fund, to the
effect that the Transfer may be effected without registering the Covered Shares
under the Securities Act.

 

(d)                                 Prior
to the initial Public Offering, each Minority Stockholder shall give the
Company and the CD&R Fund prompt written notice of any actual Transfer of
Covered Shares.  Any Transfer of any
Covered Shares other than as permitted by this Agreement shall be void and of
no effect, it being understood that, subject to the “tag-along” rights
contained in Article III, the CD&R Fund and its Affiliates may Transfer any
shares of its capital stock of the Company without restriction at any time and
from time to time.

 

Section 2.2                                      Right of First
Refusal.  (a)  If any Minority Stockholder desires to sell
or transfer for cash or other consideration any Covered Shares pursuant to
Section 2.1(b)(ii) following a bona fide written
offer from any prospective transferee to purchase all or any part of the
Covered Shares owned by

 

21

 

such Minority Stockholder, such Minority Stockholder shall deliver a
written notice (an “Offer Notice”) to the CD&R Fund.  The Offer Notice shall disclose the identity
of the prospective transferee and the material terms and conditions of the
offer, including the number of Covered Shares that the prospective transferee
is willing to purchase, the proposed purchase price per share and the intended
consummation date of such sale.  Such
Minority Stockholder shall not be permitted to accept such offer for a period
of 30 days following the receipt of the Offer Notice by the CD&R Fund.

 

(b)                                 During
such 30-day period, the CD&R Fund and its Affiliates, or any of their
respective designees, shall have the right to purchase from such Minority
Stockholder all, but not less than all, of the Covered Shares identified in the
Offer Notice at the same price, and on the same terms and conditions, as set
forth in the Offer Notice.  The right of
first refusal provided hereunder shall be exercised by written notice to such
Minority Stockholder at any time during such 30-day period; provided
that neither the CD&R Fund nor such Affiliates or designees shall be
required to consummate any such purchase within fewer than 30 days following
the date of such notice.  If the
CD&R Fund fails to exercise its right of first refusal prior to the
expiration of such 30-day period, such Minority Stockholder may sell or
transfer the Covered Shares identified in the Offer Notice to the prospective
transferee at the same price, and on the same terms and conditions, as set
forth in the Offer Notice; provided that such prospective transferee
agrees in writing to be bound by this Agreement.

 

Section 2.3                                      Prohibited
Transfers.  Notwithstanding anything
in this Article II to the contrary, it is understood and agreed that no
Minority Stockholder may Transfer any Covered Shares prior to the initial
Public Offering if the Company or the CD&R Fund shall have reasonably
determined, after consultation with outside counsel, that such Transfer is a
Prohibited Transfer.

 

Article III

“Tag-Along” Rights

 

Section 3.1                                      Sale Notice.  In the event that the CD&R Fund shall
sell or transfer, for cash or other consideration, shares of Common Stock to
the Company or to a Third-Party Buyer (other than any sale or transfer to the
public pursuant to a distribution (whether pursuant to a registered Public
Offering, pursuant to Rule 144, or otherwise)), which sale or transfer, together
with all other such sales or transfers, represents in the aggregate more than
10% of the shares of Common Stock held by the CD&R Fund as of the date of
this Agreement, the CD&R Fund will provide 30 days’ prior written notice
(the “Sale Notice”) to the Company and the Minority Stockholders (the
names and addresses of which the Company shall

 

22

 

provide to the CD&R Fund upon request).  The Sale Notice will disclose the identity of the prospective
transferee and the material terms and conditions of the proposed sale or
transfer, including the number of shares of Common Stock that the prospective
transferee is willing to purchase, the proposed purchase price per share and
the intended consummation date of such sale. 
The CD&R Fund agrees not to consummate any such sale or other
transfer until at least 30 days after the related Sale Notice has been given to
each Minority Stockholder, unless the CD&R Fund shall have received a
notice from each such Minority Stockholder indicating whether or not such
Minority Stockholder has elected to participate in such transaction and the
number of shares of Common Stock to be sold by each such Minority Stockholder
so electing to participate has been finally determined pursuant hereto prior to
the expiration of such 30-day period.

 

Section 3.2                                      Right to
Participate.  Each Minority
Stockholder may elect to participate in the sale or other transfer described in
Section 3.1 by giving written notice to the CD&R Fund and the Company
within 30 days after the CD&R Fund has given the related Sale Notice to
such Minority Stockholder.  If a
Minority Stockholder elects to participate, such Minority Stockholder will be
entitled to sell or otherwise transfer in the contemplated transaction, at the
same price and on the same terms and conditions as set forth in the related
Sale Notice, an amount of Covered Shares equal to the product of (i) the
quotient determined by dividing (A) the percentage of Covered Shares
then held by such Minority Stockholder so electing to participate by (B)
the aggregate percentage of Common Stock represented by the Common Stock then
held by the CD&R Fund and the Covered Shares then held by all Minority
Stockholders so electing to participate and (ii) the number of shares of
Common Stock such transferee has agreed to purchase in the contemplated
transaction, unless all such Minority Stockholders otherwise agree among
themselves to a different allocation. 
If such right to participate in a transaction shall not have been
exercised prior to the expiration of the 30-day period, then at any time during
the 90 days following the expiration of the 30-day period, subject to extension
for not more than an additional 60 days to the extent reasonably required to
comply with applicable laws in connection with such transaction, the CD&R
Fund may sell or otherwise transfer to the prospective transferee the number of
shares of Common Stock and at the price and on the terms and conditions
indicated in the Sale Notice.

 

Section 3.3                                      Expiration
Upon a Public Market.  In the event
that a Public Market has been established, the provisions of this Article III
shall terminate and cease to have further effect.

 

23

 

Article IV

Drag-Along Rights

 

Section 4.1                                      Drag-Along
Notice.  If the CD&R Fund
intends to effect a sale or transfer for cash or other consideration of more
than 50% of its shares of Common Stock to a Third-Party Buyer and the CD&R
Fund elects to exercise its rights under this Article IV, the CD&R Fund
shall deliver written notice (a “Drag-Along Notice”) to the Minority
Stockholders, which notice shall (a) state (i) that the CD&R
Fund wishes to exercise its rights under this Article IV with respect to such
sale, (ii) the name and address of the Third-Party Buyer, (iii)
the per share amount and form of consideration the CD&R Fund proposes to
receive for its shares of Common Stock and (iv) the terms and conditions
of payment of such consideration and all other material terms and conditions of
such sale, (b) contain an offer (the “Drag-Along Offer”) by the
Third-Party Buyer to purchase from each Minority Stockholder a percentage of
such Minority Stockholder’s Covered Shares, as the case may be, equal to the
percentage of the shares of Common Stock owned by the CD&R Fund that are to
be sold to the Third-Party Buyer (such percentage, the “Applicable
Percentage”) on and subject to the same terms and conditions offered to the
CD&R Fund and (c) state the anticipated time and place of the
closing of the purchase and sale of the Applicable Percentage of such Covered
Shares (an “Drag-Along Closing”), which (subject to such terms and
conditions) shall occur not fewer than five (5) days nor more than ninety (90)
days after the date such Drag-Along Notice is delivered (subject to extension
for not more than an additional 60 days to the extent reasonably required to
comply with applicable laws in connection with such sale); provided that
if such Drag-Along Closing shall not be scheduled to occur prior to the
expiration of such 90-day period, the CD&R Fund shall be entitled to
deliver additional Drag-Along Notices with respect to such Drag-Along Offer in
respect of such additional 60-day period.

 

Section 4.2                                      Conditions to
Drag-Along.  Upon delivery of a
Drag-Along Notice, each Minority Stockholder shall have the obligation to sell
and transfer to the Third-Party Buyer the Applicable Percentage of such
Minority Stockholder’s Covered Shares pursuant to the Drag-Along Offer, as the
same may be modified from time to time; provided that the CD&R Fund
sells and transfers the Applicable Percentage of its shares of Common Stock to
the Third-Party Buyer at the Drag-Along Closing.  Within 10 days of receipt of the Drag-Along Notice, each Minority
Stockholder shall (i) execute and deliver to the CD&R Fund a power
of attorney and a letter of transmittal and custody agreement appointing, and
in form and substance reasonably satisfactory to, the CD&R Fund or one or
more of its affiliates designated by the CD&R Fund (the “Custodian”),
the true and lawful attorney-in-fact and custodian for such Minority
Stockholder, with full power of substitution, and authorizing the Custodian to
take such actions as the Custodian may deem necessary or appropriate to effect
the sale and transfer of the Applicable

 

24

 

Percentage of such Minority Stockholder’s Covered Shares to the
Third-Party Buyer, upon receipt of the purchase price therefor at the
Drag-Along Closing, free and clear of all security interests, liens, claims,
encumbrances, charges, options, restrictions on transfer, proxies and voting
and other agreements of whatever nature, and to take such other action as may
be necessary or appropriate in connection with such sale or transfer, including
consenting to any amendments, waivers, modifications or supplements to the
terms of the sale (provided that the CD&R Fund also so consents,
and, to the extent applicable, sells and transfers the Applicable Percentage of
its shares of Common Stock on the same terms as so amended, waived, modified or
supplemented, and provided, further, that no Minority Stockholder
shall be required to indemnify any Third-Party Buyer on a joint, rather than
several, basis or in an amount in excess of the total consideration received by
such Minority Stockholder in such transaction, except in respect of any (x)
breach of covenant by such Minority Stockholder, (y) breach or
inaccuracy of any representation or warranty made by and relating specifically
to such Minority Stockholder (including, without limitation, with respect to
authorization and title to its Covered Shares), or (z) fraudulent acts
by, or willful misconduct or gross negligence of, such Minority Stockholder))
and (ii) deliver to the Custodian certificates representing the
Applicable Percentage of such Minority Stockholder’s Covered Shares, together
with all necessary duly executed stock powers. 
The Custodian shall hold the Applicable Percentage of such Minority
Stockholder’s Covered Shares and other documents in trust for such holder
pending completion or abandonment of such sale.  If, within 90 days after the CD&R Fund delivers the
Drag-Along Notice (subject to extension for not more than an additional 60 days
to the extent reasonably required to comply with applicable laws in connection
with such sale), the CD&R Fund has not completed the sale of the Applicable
Percentage of such Minority Stockholder’s Covered Shares and of its shares of
Common Stock to the Third-Party Buyer and another Drag-Along Notice with
respect to such Drag-Along Offer has not been sent to such Minority
Stockholder, the Custodian shall return to such Minority Stockholder all
certificates representing the Applicable Percentage of such holder’s Covered
Shares and all other documents that such holder delivered in connection with
such sale.  Promptly after the
Drag-Along Closing, the Custodian shall give notice thereof to such Minority
Stockholder, shall remit to such Minority Stockholder the total consideration
for the Applicable Percentage of such Minority Stockholder’s Covered Shares
sold pursuant thereto (reduced by any amount required to be held in escrow
pursuant to the terms of the purchase and sale agreement), and shall furnish
such other evidence of the completion and time of completion of such sale and
the terms thereof as may reasonably be requested by such Minority Stockholder.

 

25

 

Section 4.3                                      Expiration on
a Public Market.  In the event that
a Public Market has been established, the provisions of this Article IV shall
terminate and cease to have further effect.

 

Article V

Rights to Purchase Additional Common Stock

 

Section 5.1                                      CD&R Sale.  If at any time after the date of this
Agreement and prior to the initial Public Offering, the Company shall propose
to issue or sell any shares of its capital stock (or any securities convertible
into or exchangeable for such capital stock) to the CD&R Fund or any of its
Affiliates (a “CD&R Sale”), the Company shall offer to each of the
Co-Investors the right to purchase that number of additional shares of capital
stock (or such other security), on the same terms and conditions as the
proposed CD&R Sale, in order that such Co-Investor would have the
opportunity to hold the same percentage of shares of the Company’s capital
stock (on a fully diluted basis) after giving effect to the CD&R Sale as
such Co-Investor held immediately prior thereto (an “Offer”).  Notwithstanding the foregoing, none of the
following transactions shall constitute a CD&R Sale:  the issuance by the Company of any shares of
its capital stock (or any securities convertible into or exchangeable for such
capital stock) to the CD&R Fund (a) pursuant to that certain Stock
Subscription Agreement, dated as of the date hereof, between the Company and
the CD&R Fund, (b) as a ratable dividend or distribution on such
capital stock then outstanding, or in connection with any ratable stock split,
reclassification, recapitalization, consolidation or similar event affecting
such capital stock, or (c) upon conversion or exchange of any securities
convertible into or exchange for such capital stock, which securities were
issued in compliance with this Article V.

 

Section 5.2                                      Procedures.  The Company shall make an Offer by
delivering to each Co-Investor at least 30 days prior written notice of the
proposed CD&R Sale.  Such notice
will identify the class and number of shares of capital stock or amount of
other securities to be issued (the “Offered Securities”), the proposed
date of such issuance and the price and other material terms of such issuance,
and will include an Offer to each Co-Investor in accordance with Section
5.1.  Such Offer shall by its terms
remain open for a period of 30 days from the date of receipt of such
notice.  Each Co-Investor shall give
notice to the Company and the CD&R Fund of whether it intends to accept an
Offer prior to the end of such 30-day period, and, if so, such notice shall set
forth such portion of the Offered Securities that such Co-Investor elects to
purchase.  If such Co-Investor so elects
to purchase any Offered Securities, upon the closing of the CD&R Sale as to
which the Company has given notice, such Co-Investor shall purchase from the
Company, and the Company shall sell to such Co-Investor, the Offered Securities

 

26

 

subscribed for by such Co-Investor on the terms specified in the
Offer.  In the event that the
Co-Investors do not subscribe for all of the Offered Securities, the Company
shall have 30 days from the end of the foregoing 30-day period to sell all or
any part of such remaining Offered Securities to one or more Persons, on terms
and conditions that are no more favorable in the aggregate to such Persons than
those set forth in the Offer.

 

Section 5.3                                      Expiration
Upon a Public Offering.  The
provisions of this Article V shall terminate and cease to have further effect
upon the consummation of a Public Offering.

 

Article VI

Definitions, etc.

 

Section 6.1                                      Definitions.  For purposes of this Agreement, the following
terms have the following meanings:

 

“Affiliate” means,
with respect to any Person, any other Person directly or indirectly
Controlling, Controlled by or under Common control with, such Person.  “Control” of any Person shall consist
of the power to direct the management and policies of such Person (whether
through the ownership of voting securities, by contract, as trustee or
executor, or otherwise) and, without limiting the foregoing, shall be deemed to
exist upon the ownership of securities entitling the holder thereof to exercise
more than 50% of the voting power in the election of directors of such Person
(or other persons performing similar functions).

 

“Applicable Percentage”
has the meaning given in Section 4.1.

 

“BACI” has the
meaning given in the introduction to this Agreement.

 

“Board” means the
Board of Directors of the Company.

 

“Bridge Investor”
means any Person that directly or indirectly acquires shares of Common Stock
from the CD&R Fund (including but not limited to by way of issuance of such
Common Stock by the Company in connection with its repurchase, redemption or
other retirement of Common Stock owned by the CD&R Fund) prior to the first
anniversary of the date hereof, in an amount not exceeding (as to all such
Persons) 10% of the Common Stock owned by the CD&R Fund as of the date
hereof, and any Affiliate of any such Person.

 

27

 

“Business Day”
means a day other than a Saturday, Sunday or other day on which commercial
banks in New York City are authorized or required to close.

 

“CD&R Fund”
has the meaning given in the introduction to this Agreement.

 

“CD&R Sale”
has the meaning given in Section 5.1.

 

“CGI” has the
meaning given in the introduction to this Agreement.

 

“Co-Investor” has
the meaning given in the introduction to this Agreement.

 

“Common Stock”
means the common stock, par value $.01 per share, of the Company.

 

“Company” has the
meaning given in the introduction to this Agreement.

 

“Covered Shares”
means (i) all of the Registrable Securities and (ii) all of the
shares of Common Stock, whether or not Registrable Securities, in each case
that are owned from time to time by any Minority Stockholder.

 

“Custodian” has
the meaning given in Section 4.2.

 

“Drag-Along Closing”
has the meaning given in Section 4.1.

 

“Drag-Along Notice”
has the meaning given in Section 4.1.

 

“Drag-Along Offer”
has the meaning given in Section 4.1.

 

“Exchange Act”
means the United States Securities Exchange Act of 1934, as amended, or any
successor statute, and the rules and regulations thereunder that are in effect
at the time, and any reference to a particular section thereof shall include a
reference to the corresponding section, if any, of any such successor statute,
and the rules and regulations thereunder.

 

“Holdback Period”
means, with respect to any registered offering covered by this Agreement, 180
days after and, upon reasonable written notice thereof given by the Company to
the holders of Registrable Securities, during the 20 days before the effective
date of the related registration statement or, in the case of a takedown from a
shelf registration

 

28

 

statement, 90 days after the date of the prospectus
supplement filed with the SEC in connection with such takedown and during such
prior period (not to exceed 20 days) as the Company has given reasonable
written notice to the holders of Registrable Securities.

 

“Management
Stockholder” means an executive officer or other employee of the Company or
any of its subsidiaries who subscribes for and purchases shares of capital
stock of the Company pursuant to a Stock Subscription Agreement that provides
that such capital stock shall be Registrable Securities.

 

“Minority Stockholder”
means any Stockholder other than (a) any Management Stockholder and (b)
the CD&R Fund and its Affiliates and their respective successors and
assigns; provided that any Bridge Investor shall be deemed a Minority
Stockholder for all purposes of this Agreement.

 

“NASD” means the
National Association of Securities Dealers, Inc.

 

“NASDAQ” means the
NASD Automated Quotation System.

 

“Offer” has the
meaning given in Section 5.1.

 

“Offer Notice” has
the meaning given in Section 2.2(a).

 

“Offered Securities”
has the meaning given in Section 5.2.

 

“Person” means any
natural person, firm, partnership, association, corporation, company, limited
liability company, trust, business trust, governmental entity or other entity
and any successor (by merger or otherwise) of such entity.

 

“Prohibited Transfer”
means any Transfer of Covered Shares (a) that may not be effected
without registering the Covered Shares under the Securities Act, (b)
that would result in the assets of the Company constituting “plan assets” as
such term is defined in the Department of Labor regulations promulgated under
the Employee Retirement Income Security Act of 1974, as amended, (c)
that would cause the Company to be, to be controlled by, or to be under common
control with, an “investment company” for purposes of the Investment Company
Act of 1940, as amended, (d) that would require any securities of the
Company to be registered under, or would subject the Company to the periodic
reporting requirements of, the Exchange Act, or (e) to any Person that
is not an “accredited investor” as that term is defined in Rule 501(a) under
the Securities Act or applicable state securities laws.

 

29

 

“Public Market”
shall be deemed to have been established at such time as 20% of the Common
Stock (on a fully diluted basis) has been sold to the public pursuant to an
effective registration statement under the Securities Act, pursuant to Rule 144
or pursuant to a public offering outside the United States.

 

“Public Offering”
means an underwritten public offering of the Common Stock led by at least one
underwriter of nationally recognized standing.

 

“Registrable
Securities” means:

 

(a)                                  any
Common Stock issued or to be issued (upon issuance thereof) to (i) the
CD&R Fund, the Co-Investors or pursuant to any Stock Subscription Agreement
that provides that such Common Stock shall be Registrable Securities or (ii)
any executive officer or other employee of the Company, for so long as such
executive officer or other employee is an Affiliate of the Company, upon a
determination by the Board that the Common Stock held by such executive officer
or other employee would be subject to restrictions on resale following the
consummation of a Public Offering; and

 

(b)                                 securities
issued or issuable with respect to the foregoing by way of stock dividend or
stock split, in connection with a combination of shares, recapitalization,
merger, consolidation or other reorganization or otherwise.

 

As to any particular Registrable Securities, once
issued, such securities shall cease to be Registrable Securities on the earlier
to occur of the following events:

 

(i)                                     a
registration statement with respect to the sale of such securities shall have
become effective under the Securities Act and such securities shall have been
disposed of in accordance with such registration statement (other than a
Special Registration pursuant to which such securities were issued by the
Company to a Stockholder who is an Affiliate of the Company);

 

(ii)                                  such
securities shall have been distributed to the public in reliance upon Rule 144;

 

(iii)                               such
securities shall have been otherwise transferred, new certificates for such
securities not bearing a legend restricting

 

30

 

further transfer shall have been delivered by the
Company in accordance with Section 7.4 and subsequent disposition of such
securities shall not require registration or qualification of such securities
under the Securities Act or any similar state law then in force;

 

(iv)                              a
Public Market has been established and such securities have been held, or
deemed to be held (by virtue of tacking holding periods as contemplated by Rule
144) for a period of two years by a Stockholder who is not an Affiliate of the
Company;

 

(v)                                 in
the case of any such securities acquired by a Management Stockholder pursuant
to the exemption from the registration requirements of the Securities Act
contained in Rule 701 (or any successor provision) thereunder, 90 days
following the date the Company becomes subject to the reporting requirements of
Section 13 or 15(d) of the Exchange Act for so long as such Management
Stockholder is not an Affiliate of the Company; or

 

(vi)                              such
securities shall have ceased to be outstanding.

 

“Registration Expenses”
means all expenses incident to the Company’s performance of its obligations
under or in compliance with Article I, including, but not limited to (i)
all registration and filing fees, (ii) all fees and expenses of
complying with securities or blue sky laws, (iii) all fees and expenses
associated with listing securities on United States or non-United States
exchanges or NASDAQ, (iv) all fees and other expenses associated with
filings with the NASD (including, if required, the fees and expenses of any
“qualified independent underwriter” and its counsel) or comparable non-United
States organizations, (v) all printing expenses, (vi) the fees
and disbursements of counsel for the Company and of its independent public
accountants, and the expenses of any special audits made by such accountants
required by or incidental to such performance and compliance, (vii) the
fees and disbursements of one law firm (but not more than one) retained by the
holders of Registrable Securities constituting a majority of the voting power
represented by the outstanding shares of the Registrable Securities and (viii)
any other reasonable out-of-pocket expenses of the holders (provided that such
expenses shall not include expenses of counsel other than those provided in
clause ((vii) above).  “Registration
Expenses” shall not include any underwriting discounts or commissions or
any transfer or other taxes payable in respect of the sale of Registrable
Securities by the holders thereof.

 

31

 

“Requisite Percentage”
means the holder or holders of at least (a) 50% (by number of shares) of
the Registrable Securities at the time outstanding in the case of the initial
request under Section 1.1 or (b) 25% (by number of shares) of the
Registrable Securities at the time outstanding in the case of any other request
under Section 1.1.

 

“Rule 144” means
Rule 144 under the Securities Act (or any successor provision thereto).

 

“Sale Notice” has
the meaning given in Section 3.1.

 

“Securities Act”
means the United States Securities Act of 1933, as amended, or any successor
statute, and the rules and regulations thereunder that are in effect at the
time and any reference to a particular section thereof shall include a
reference to the corresponding section, if any, of any such successor statute,
and the rules and regulations thereunder.

 

“Securities and
Exchange Commission” means the United States Securities and Exchange
Commission or any other United States federal agency at the time administering
the Securities Act or the Exchange Act.

 

“Special Registration”
means the registration of (a) shares of equity securities and/or options
or other rights in respect thereof to be offered to directors, members of
management, employees, consultants or sales agents, distributors or similar
representatives of the Company or its direct or indirect subsidiaries or (b)
equity securities and/or options or other rights in respect thereof solely on
Form S-4 or Form S-8.

 

“SSB” has the
meaning given in the introduction to this Agreement.

 

“Stock Subscription
Agreements” means any stock subscription agreement, stock option agreement,
contribution and subscription agreement or other agreement pursuant to which
shares of capital stock of the Company are issued.

 

“Stockholder” has
the meaning given in the introduction to this Agreement.

 

“Third-Party Buyer”
means any Person other than (a) the direct or indirect members or
partners of the CD&R Fund, (b) any Affiliate of the CD&R Fund or
(c) any Bridge Investor.

 

“Transfer” means
any direct or indirect transfer, sale, assignment, distribution, contribution,
exchange, gift, hypothecation, encumbrance or

 

32

 

other disposition of any Covered Shares or any other
shares of capital stock of the Company or any interest therein.

 

Section 6.2                                      Reference to
Forms.  References in this Agreement
to a specific form (e.g., Form
S-1) shall include any successor form thereto.

 

Article VII

Miscellaneous

 

Section 7.1                                      Additional
Registrable Securities and Covered Shares, etc.

 

(a)                                  This
Agreement shall become effective with respect to any Registrable Securities
and/or Covered Shares upon the issuance or sale by the Company of any shares of
its capital stock to any Person pursuant to any Stock Subscription Agreement
that provides that such capital stock shall be Registrable Securities and/or
Covered Shares, as the case may be, and the written agreement by such Person to
be bound by the provisions of this Agreement; provided that such
issuance or sale shall have been approved by resolution of the Board and, in
the case of shares intended to be Covered Shares, the CD&R Fund shall have
been given prior notice thereof and shall not have objected to such
issuance.  Upon receipt by the Company
of such Person’s written agreement to be bound by the provisions of this
Agreement, such Person shall be deemed a “Stockholder” (and, unless expressly
excluded from the definition thereof in Section 6.1, a “Minority Stockholder”)
hereunder for all purposes of this Agreement.

 

(b)                                 The
Company hereby covenants to and agrees with the CD&R Fund that each Stock
Subscription Agreement to be entered into by the Company after the date hereof
with any director, executive officer or employee of the Company or any of its
subsidiaries shall contain “tag-along” rights, “drag-along” rights and similar
provisions on such terms and conditions as the CD&R Fund may reasonably
request from time to time.

 

Section 7.2                                      Non-U.S.
Listing.  The provisions of this
Agreement shall apply, mutatis mutandis,
to any listing of the Registrable Securities on any non-United States exchange.

 

Section 7.3                                      Rule 144.

 

(a)                                  If
the Company shall have filed a registration statement pursuant to Section 12 of
the Exchange Act or a registration statement pursuant to the Securities Act
relating to any class of equity securities (other than a registration statement
pursuant to a Special Registration), the

 

33

 

Company will file the reports required to be filed by
it under the Securities Act and the Exchange Act and the rules and regulations
adopted by the Securities and Exchange Commission thereunder (or, if the
Company is not required to file such reports, it will, upon the request of any
holder of Registrable Securities, make publicly available such information as
necessary to permit sales pursuant to Rule 144), and will take such further
action as any holder of Registrable Securities may reasonably request, all to
the extent required from time to time to enable such holder to sell shares of
Registrable Securities without registration under the Securities Act within the
limitation of the exemptions provided by Rule 144.  Upon the request of a holder, the Company will deliver to such
holder a written statement as to whether the Company has complied with such
requirements.

 

(b)                                 If
any Registrable Securities are to be disposed of in accordance with Rule 144,
the holder of such Registrable Securities shall transmit to the Company an
executed copy of Form 144 (if required by Rule 144) no later than the time such
form is required to be transmitted to the Securities and Exchange Commission
for filing and such other documentation as the Company may reasonably require
to assure compliance with Rule 144 in connection with such disposition.

 

Section 7.4                                      Legended
Securities; etc.  The Company will
not issue new certificates for shares of Registrable Securities without a
legend restricting further transfer unless (a) such shares have been
sold to the public pursuant to an effective registration statement under the
Securities Act (other than Form S-8 if the holder of such Registrable
Securities is an Affiliate) or Rule 144, or (b) (i) otherwise
permitted under the Securities Act and (ii) (A) the holder of
such shares shall have delivered to the Company an opinion of counsel, which
opinion and counsel shall be reasonably satisfactory to the Company, to such
effect and (B) the holder of such shares expressly requests the issuance
of such certificates in writing.

 

Section 7.5                                      Amendments and
Waivers.  This Agreement may be
amended, and the Company may take any action herein prohibited, or omit to
perform any act herein required to be performed by it, only if the Company
shall have obtained the written consent to such amendment, action or omission
to act, of the holder or holders of Registrable Securities representing at
least 51% of the voting power represented by the outstanding Registrable
Securities; provided that no provision of this Agreement may be amended
in a manner (a) uniquely and adversely affecting the Minority
Stockholders or the Management Stockholders as a class without the consent of a
majority of such Minority Stockholders or Management Stockholders (by number of
Registrable Securities), as the case may be, or (b) uniquely and
adversely affecting any one Minority Stockholder or Management Stockholder
without the consent of such Minority Stockholder or Management

 

34

 

Stockholder, as the case may be. 
Each holder of any Registrable Securities at the time or thereafter
outstanding shall be bound by any consent authorized by this Section 7.5,
whether or not such Registrable Securities shall have been marked to indicate
such consent.  No amendment,
modification or discharge of this Agreement, and no waiver hereunder, shall be
valid or binding unless set forth in writing. 
Any such waiver shall constitute a waiver only with respect to the
specific matter described in such writing and shall in no way impair the rights
of the party or parties granting such waiver in any other respect or at any other
time.

 

Section 7.6                                      Nominees for
Beneficial Owners.  In the event
that any Registrable Securities are held by a nominee for the beneficial owner
thereof, the beneficial owner thereof may, at its election and unless notice is
otherwise given to the Company by the record owner, be treated as the holder of
such Registrable Securities for purposes of any request or other action by any
holder or holders of Registrable Securities pursuant to this Agreement or any
determination of any number or percentage of shares of Registrable Securities
held by any holder or holders of Registrable Securities contemplated by this
Agreement.  If the beneficial owner of
any Registrable Securities so elects, the Company may require assurances
reasonably satisfactory to it of such owner’s beneficial ownership of such
Registrable Securities.

 

Section 7.7                                      Successors,
Assigns and Transferees.  This
Agreement shall be binding upon and shall inure to the benefit of the parties
hereto and their respective successors, assigns and transferees; provided,
that any such assign and transferee agrees in writing to be bound by the
provisions of this Agreement.  Upon
receipt by the Company of such written agreement, such assign or transferee
shall be deemed a “Stockholder” (and, unless expressly excluded from the
definition thereof in Section 6.1, a “Minority Stockholder”) hereunder for all
purposes of this Agreement.  In
addition, and whether or not any express assignment shall have been made, the
provisions of this Agreement which are for the benefit of, or are binding upon,
the parties hereto other than the Company shall also be for the benefit of,
binding upon and enforceable by any such assign or transferee or other
subsequent holder of any Registrable Securities, subject to the provisions respecting
the minimum numbers or percentages of shares of Registrable Securities or of
the voting power represented by such Registrable Securities required in order
to be entitled to certain rights, or take certain actions, contained herein.  Notwithstanding anything to the contrary in
this Agreement, the Company may assign this Agreement in connection with a
merger, reorganization or sale, transfer or contribution of all or
substantially all of the assets or stock of the Company to any of its
subsidiaries or Affiliates, and, upon the consummation of any such merger,
reorganization, sale, transfer or contribution, such subsidiary or Affiliate
shall automatically and without further action assume all of the obligations
and succeed to all the rights of the Company under this Agreement.

 

35

 

Section 7.8                                      Stock Splits,
etc.  Each party hereto agrees that
it will vote to effect a stock split (forward or reverse, as the case may be)
with respect to any capital stock of the Company in connection with any
registration of such capital stock, if the Board determines, following
consultation with the managing underwriter (or, in connection with an offering
that is not underwritten, an investment banker) that a stock split would
facilitate or increase the likelihood of success of the offering.  Each party hereto agrees that any number of
shares of capital stock of the Company referred to in this Agreement shall be
equitably adjusted to reflect any stock split, stock dividend, stock
combination, recapitalization or similar transaction.

 

Section 7.9                                      No
Inconsistent Agreements.  The
Company will not hereafter enter into any agreement with respect to its
securities which is inconsistent with the rights granted to the holders of Registrable
Securities by this Agreement.

 

Section 7.10                                Severability.  If any provision of this Agreement is
inoperative or unenforceable for any reason, such circumstances shall not have
the effect of rendering the provision in question inoperative or unenforceable
in any other case or circumstance, or of rendering any other provision or
provisions herein contained invalid, inoperative, or unenforceable to any
extent whatsoever.  The invalidity of
any one or more phrases, sentences, clauses, Sections or subsections of this
Agreement shall not affect the remaining portions of this Agreement.

 

Section 7.11                                Term.  This Agreement shall be effective as of the
date hereof and shall continue in effect thereafter until the earlier of (a)
its termination by the consent of the parties hereto or their respective
successors in interest, (b) the date on which no Registrable Securities
remain outstanding and (c) the dissolution, liquidation or winding up of
the Company (other than any transaction contemplated by the third sentence of
Section 7.7); provided that the expiration of this Agreement shall not affect
the indemnification provisions set forth in Section 1.6.

 

Section 7.12                                Remedies; Right to
Specific Performance; Attorneys’ Fees. 
Each holder of Registrable Securities, in addition to being entitled to
exercise all rights provided herein or granted by law, including recovery of
damages, will be entitled to specific performance of its rights under this
Agreement.  The Company agrees that
monetary damages would not be adequate compensation for any loss incurred by
reason of a breach by it of any provision of this Agreement and hereby agrees
to waive the defense in any action for specific performance that a remedy at
law would be adequate.  In any action or
proceeding brought to enforce any provision of this Agreement, the successful
party shall be entitled to recover

 

36

 

reasonable attorneys’ fees in addition to its costs and expenses and
other available remedies.

 

Section 7.13                                Consent to
Jurisdiction.  Each party (including
any holder of Registrable Securities) irrevocably submits to the exclusive
jurisdiction of (a) the Supreme Court of the State of New York, New York
County, and (b) the United States District Court for the Southern
District of New York, for the purposes of any suit, action or other proceeding
arising out of this Agreement or any transaction contemplated hereby (and
agrees not to commence any such suit, action or proceeding except in such
courts).  Each party (including any
holder of Registrable Securities) further agrees that service of any process,
summons, notice or document by U.S. registered mail to such party’s respective
address set forth above shall be effective service of process for any such
suit, action or proceeding.  Each party
irrevocably and unconditionally waives any objection to the laying of venue of
any such suit, action or proceeding in (i) the Supreme Court of the
State of New York, New York County, and (ii) the United States District
Court for the Southern District of New York, that any such suit, action or
proceeding brought in any such court has been brought in an inconvenient forum.

 

Section 7.14                                Waiver of Jury Trial.  Each party (including any holder of
Registrable Securities) hereby waives, to the fullest extent permitted by
applicable law, any right it may have to a trial by jury in respect of any
suit, action or proceeding arising out of this Agreement or any transaction
contemplated hereby.  Each party
(including any holder of Registrable Securities) (a) certifies that no
representative, agent or attorney of any other party has represented, expressly
or otherwise, that such other party would not, in the event of litigation, seek
to enforce the foregoing waiver and (b) acknowledges that it and the
other parties have been induced to enter into the Agreement by, among other
things, the mutual waivers and certifications in this Section 7.14.

 

Section 7.15                                Notices.  All notices, demands and other
communications made in connection with this Agreement shall be in writing.  Any notice or other communication in
connection herewith shall be deemed duly given to any party (a) two
Business Days after it is sent by express, registered or certified mail, return
receipt requested, postage prepaid or (b) one Business Day after it is
sent by overnight courier guaranteeing next day delivery, in each case, to the
address of such party set forth beneath its name on the signature pages hereof,
or to such other address as such party may have designated to the Company and
the other Stockholders party hereto in writing, or if to any holder of
Registrable Securities not a party hereto on the date hereof, at the address of
such holder in the stock record books of the Company, and:

 

37

 

if to the Company, to:

 

CDRV Investors, Inc.

1403 Foulk Road, Suite 106

Wilmington, Delaware 19803

Attention:  President

 

if to the CD&R Fund, to:

 

Clayton, Dubilier & Rice Fund VI Limited
Partnership

1403 Foulk Road, Suite 106

Wilmington, Delaware 19803

Attention:  General Partner

 

or at such other address or addresses as the Company may have
designated in writing to each holder of Registrable Securities at the time
outstanding.  Copies of any notice or
other communication given under the Agreement shall also be given to:

 

Clayton, Dubilier & Rice, Inc.

375 Park Avenue

New York, New York 10152

Facsimile:  (212) 407-5252

Telephone:  (212) 407-5200

Attention:  Richard J. Schnall

 

and

 

Debevoise & Plimpton LLP

919 Third Avenue

New York, New York 10022

Facsimile:  (212) 909-6836

Telephone:  (212) 909-6000

Attention:  Franci J. Blassberg,
Esq.

 

Any party may give any notice or other communication in connection
herewith using any other means (including, but not limited to, personal
delivery, messenger service, facsimile, telex or ordinary mail), but no such
notice or other communication shall be deemed to have been duly given unless
and until it is actually received by the individual for whom it is intended.

 

Section 7.16                                Headings.  The headings contained in this Agreement are
for purposes of convenience only and shall not affect the meaning or
interpretation of this Agreement.

 

38

 

Section 7.17                                Counterparts.  This Agreement may be executed in several
counterparts, each of which shall be deemed an original and all of which
together constitute one and the same instrument.

 

Section 7.18                                Governing Law.  This Agreement shall be governed in all
respects, including, but not limited to, as to validity, interpretation and
effect, by the internal laws of the State of New York, without reference to
principles of conflict of law that would require application of the law of
another jurisdiction except to the extent the laws of the State of Delaware
specifically and mandatorily apply.

 

Section 7.19                                No Third-Party
Beneficiaries.  Except as provided
in Section 1.6, nothing in this Agreement shall confer any rights upon any
Person other than the parties to (a) this Agreement and (b) any
Stock Subscription Agreement that provides that the capital stock issued
thereunder shall be Registrable Securities and/or Covered Shares, as the case
may be, and each such party’s respective heirs, successors and permitted
assigns.

 

Section 7.20                                Entire Agreement.  This Agreement, together with any Stock
Subscription Agreements that provide that the capital stock issued thereunder
shall be Registrable Securities and/or Covered Shares, as the case may be,
constitutes the entire agreement and supersedes all prior agreements and
understandings, both written and oral, among the parties with respect to the
subject matter hereof.

 

39

 

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

 

	
   

  	
  CDRV INVESTORS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ RICHARD J. SCHNALL

  	
   

  
	
   

  	
   

  	
  Name: Richard J. Schnall

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CLAYTON, DUBILIER & RICE FUND VI

  LIMITED PARTNERSHIP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  CD&R Associates VI Limited Partnership,

  its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  CD&R Investment Associates VI, Inc.,

  its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ THERESA A. GORE

  	
   

  
	
   

  	
   

  	
  Name: Theresa A. Gore

  
	
   

  	
   

  	
  Title:   Vice
  President, Treasurer, and

  Assistant Secretary

  
					

 

 

	
   

  	
  BANC OF AMERICA CAPITAL
  INVESTORS,

  L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Banc of America Capital
  Management,

  L.P., its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BACM I GP, LLC,

  its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ SCOTT R.
  POOLE

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
  Address:

  	
  Bank of America
  Corporate Center

  
	
   

  	
   

  	
  100 North Tryon Street,
  25th Floor

  
	
   

  	
   

  	
  Charlotte, North
  Carolina  28255

  
	
   

  	
   

  	
  Telephone:

  	
  (704) 386-1814

  
	
   

  	
   

  	
  Facsimile:

  	
  (704) 386-6432

  
	
   

  	
   

  	
  Attention:

  	
  Walker L. Poole

  
	
   

  	
   

  	
  Scott R. Poole

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SSB CAPITAL PARTNERS (MASTER FUND)

  I, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  SSBPIF GP CORP.,

  its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JOHN R. BARBER

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John R. Barber

  
	
   

  	
   

  	
  Title:

  	
  Co-President

  
	
   

  	
   

  	
  Address:

  	
  c/o Citigroup Private
  Equity

  
	
   

  	
   

  	
  388 Greenwich Street,
  32nd Floor

  
	
   

  	
   

  	
  New York, New York  10013

  
	
   

  	
   

  	
  Telephone:

  	
  (212) 816-4821

  
	
   

  	
   

  	
  Facsimile:

  	
  (212) 816-0229

  
	
   

  	
   

  	
  Attention:

  	
  Blair V. Jacobson,

  
	
   

  	
   

  	
   

  	
  Vice President

  
								

 

 

	
   

  	
  CGI PRIVATE EQUITY
  L.P., LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JOHN R. BARBER

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John R. Barber

  
	
   

  	
   

  	
  Title:

  	
  Authorized Signatory

  
	
   

  	
   

  	
  Address:

  	
  c/o Citigroup Private
  Equity

  
	
   

  	
   

  	
  388 Greenwich Street,
  32nd Floor

  
	
   

  	
   

  	
  New York, New York  10013

  
	
   

  	
   

  	
  Telephone:

  	
  (212) 816-4821

  
	
   

  	
   

  	
  Facsimile:

  	
  (212) 816-0229

  
	
   

  	
   

  	
  Attention:

  	
  Blair V. Jacobson,

  
	
   

  	
   

  	
   

  	
  Vice President

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