Document:

Securities Purchase Agreement

 Exhibit 10.1 
  

  
 SECURITIES PURCHASE AGREEMENT 
  
 BY AND AMONG 
  
 RACKABLE CORPORATION 
  
 AND THE 
  
 OTHER PURCHASERS SET FORTH HEREIN 
  
 DATES AS OF DECEMBER 23, 2002 
  

  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	PAGE

	 SECTION 1.
	  	 PURCHASE AND SALE OF SECURITIES
	  	1
			
	 1.1
	  	 Sale of Securities at Closing
	  	1
			
	 1.2
	  	 Closing
	  	2
			
	 1.3
	  	 Use of Proceeds
	  	2
			
	 1.4
	  	 Option for Subsequent Sale of Securities to the Purchasers
	  	2
			
	 SECTION 2.
	  	 REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	  	2
			
	 2.1
	  	 Organization of the Company
	  	3
			
	 2.2
	  	 Authorization of Transaction
	  	3
			
	 2.3
	  	 No Breach
	  	3
			
	 2.4
	  	 Reliance by Purchasers
	  	4
			
	 SECTION 3.
	  	 REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS
	  	4
			
	 3.1
	  	 Organization of the Purchasers
	  	4
			
	 3.2
	  	 Authority for Agreement
	  	4
			
	 3.3
	  	 Purchasers’ Investment Representations
	  	4
			
	 3.4
	  	 Reliance by the Company
	  	5
			
	 SECTION 4.
	  	 CONDITIONS TO OBLIGATION TO CLOSE
	  	5
			
	 4.1
	  	 Conditions to Obligation of the Purchasers
	  	5
			
	 4.2
	  	 Conditions to Obligations of the Company
	  	7
			
	 SECTION 5.
	  	 POST-CLOSING COVENANTS OF THE PURCHASER
	  	7
			
	 5.1
	  	 Information and Reports to be Furnished
	  	7
			
	 5.2
	  	 Budget and Operating Forecast
	  	8
			
	 5.3
	  	 Notice of Litigation, Defaults, etc.
	  	8
			
	 5.4
	  	 Current Public Information
	  	9
			
	 5.5
	  	 Other Information
	  	9
			
	 5.6
	  	 Maintenance of Corporate Existence and Properties, Etc.
	  	9
			
	 5.7
	  	 Payment of Taxes
	  	10
			
	 5.8
	  	 Public Disclosures
	  	10
			
	 5.9
	  	 Intellectual Property Rights
	  	10
			
	 5.10
	  	 Director Indemnity
	  	10

  

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 TABLE OF CONTENTS 
 (CONTINUED) 
  

					
	 	  	 	  	PAGE

	 SECTION 6.
	  	 INDEMNIFICATION
	  	10
			
	 6.1
	  	 Survival of Representations and Warranties
	  	10
			
	 6.2
	  	 Indemnification
	  	11
			
	 6.3
	  	 Indemnity Procedures
	  	12
			
	 6.4
	  	 Satisfaction of Indemnification Claims
	  	12
			
	 SECTION 7.
	  	 DEFINITIONS
	  	13
			
	 7.1
	  	 Certain Matters of Construction
	  	13
			
	 7.2
	  	 Cross Reference Table
	  	13
			
	 7.3
	  	 Certain Definitions
	  	14
			
	 SECTION 8.
	  	 MISCELLANEOUS
	  	18
			
	 8.1
	  	 Press Releases and Public Announcements
	  	18
			
	 8.2
	  	 Third Party Beneficiaries
	  	18
			
	 8.3
	  	 Entire Agreement
	  	18
			
	 8.4
	  	 Succession and Assignment
	  	18
			
	 8.5
	  	 Counterparts
	  	19
			
	 8.6
	  	 Headings
	  	19
			
	 8.7
	  	 Notices
	  	19
			
	 8.8
	  	 Governing Law
	  	20
			
	 8.9
	  	 Indirect Holders of Company Securities
	  	20
			
	 8.10
	  	 Amendments and Waivers
	  	20
			
	 8.11
	  	 Severability
	  	21
			
	 8.12
	  	 Expenses
	  	21
			
	 8.13
	  	 Remedies
	  	21
			
	 8.14
	  	 Construction
	  	21
			
	 8.15
	  	 Generally Accepted Accounting Principles
	  	22
			
	 8.16
	  	 Delivery by Facsimile
	  	22
			
	 8.17
	  	 Payment Set Aside
	  	22
			
	 8.18
	  	 Incorporation of Exhibits and Schedules
	  	23
			
	 8.19
	  	 Specific Performance
	  	23
			
	 8.20
	  	 Further Assurances
	  	23

  

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 TABLE OF CONTENTS 
 (CONTINUED) 
  

					
	 	  	 	  	PAGE

	 8.21
	  	 Understanding Among the Purchasers
	  	23
			
	 8.22
	  	 Information Complete and Accurate; Reliance
	  	23
			
	 SECTION 9.
	  	 WAIVER OF JURY TRIAL
	  	24

  

 -iii- 

  
 SECURITIES PURCHASE
AGREEMENT 
  
 This SECURITIES PURCHASE AGREEMENT (this
“Agreement”) is made as of December 23, 2002, by and among Rackable Corporation, a Delaware corporation (the “Company”) and each of the Persons named in Exhibit A hereto (each, individually, a
“Purchaser” and collectively, the “Purchasers”). The Company and the Purchasers are referred to herein collectively as the “Parties.” 
  
 Certain capitalized terms are used in this Agreement as specifically defined herein. These definitions are set forth or
referred to in Section 7 hereof. 
  
 WITNESSETH: 

 
 WHEREAS, on the conditions and subject to the terms set forth in this
agreement, the Purchasers have agreed to invest $20,000,000 in the Company and the Company has agreed to issue to the Purchasers an aggregate of 20,000,000 shares of newly issued Series A Preferred Stock; 
  
 WHEREAS, in connection with the transaction contemplated hereby, and pursuant
to the terms and conditions set forth in that certain Asset Acquisition Agreement (the “Asset Acquisition Agreement”), dated as of the date hereof, by and between the Company and Rackable Systems, Inc. (“Rackable
Systems”), the Company shall purchase and Rackable Systems shall sell to the Company all of Rackable Systems’ rights, title and interest in and to all of the assets, properties, rights and interests in Rackable Systems, free and clear
of all Liens, other than the Retained Assets (as defined therein), and assume all of the Assumed Liabilities (as defined therein) in exchange for $12,000,000, 7,175,004 shares of Common Stock of the Company, par value $0.001 per share (the
“Common Stock”), and an agreement between the Company and Rackable Systems providing for the issuance of a warrant or warrants to purchase shares of Common Stock in certain circumstances (the “Seller Warrant”);

  
 NOW, THEREFORE, in consideration of the foregoing and the
mutual covenants and agreements set forth below, the parties hereto hereby agree as follows: 
  
 Section 1. PURCHASE AND SALE OF SECURITIES 
  
 1.1 Sale of Securities at Closing. Subject to all of the terms and conditions of this Agreement, and based on the
representations and warranties contained herein, each Purchaser agrees, severally, to purchase, and the Company agrees to issue and sell to each Purchaser at the Closing, the number of shares of Series A Preferred Stock set forth in the column
“Series A Preferred Stock Amount” opposite such Purchaser’s name on Exhibit A hereto in exchange for the total purchase price set forth in the column “Purchase Price” opposite such Purchaser’s name on Exhibit
A hereto. The price per share of Series A Preferred Stock purchased hereunder shall be $1.00 per share (the “Price Per Share”) and the aggregate amount of such purchase prices for all Purchasers is $20,000,000 and is referred to
herein as the “Purchase Price.” For purposes of this Agreement, the shares of Series A Preferred Stock are sometimes referred to herein as the “Securities.” 
  

 1. 

 1.2 Closing. The closing (the “Closing”) of the transactions hereunder shall take
place at the offices of Kirkland & Ellis, 200 East Randolph Drive, Chicago, Illinois at 10:00 a.m., on the business day following the date upon which each of the conditions to Closing set forth in Section 4 hereof shall be satisfied or
waived or at such other place or on such other date as may be mutually agreeable by the Company and the Majority Purchasers (the actual day of the Closing being referred to herein as the “Closing Date”). At the Closing, the Company
shall deliver to each Purchaser one or more certificates for the aggregate number of shares of Series A Preferred Stock which such Purchaser is purchasing at the Closing, registered in the name of such Purchaser, against delivery to the Company by
such Purchaser of a wire transfer of immediately available funds in the amount of the portion of the Purchase Price therefor; provided that, in the case of each of Tom Barton and Todd Ford, payment shall be made by delivery of an Executive
Promissory Note, in form and in substance attached hereto as Exhibit P (each, an “Executive Note”) in the amount of the purchase price for such Person’s shares. 
  
 1.3 Use of Proceeds. The Company shall use certain of the proceeds of
the sale of the Securities hereunder at the Closing to buy the assets of Rackable Systems pursuant to the Asset Acquisition Agreement. The Company shall use the remaining proceeds for working capital purposes. Section 1.3 of the Disclosure
Schedules sets forth a detailed table of sources and uses of the proceeds of the sale of the Securities hereunder. 
  
 1.4 Option for Subsequent Sale of Securities to the Purchasers. Within ninety (90) days following any Qualified Subsequent Financing (as defined
below), the Majority Purchasers (in their sole discretion) may elect to purchase, and upon such election, the Company shall issue and sell to the Purchasers, and the Purchasers shall purchase (on a pro rata basis based on the number of shares of
Series A Preferred Stock then held by such Purchasers), up to 7,142,857 shares of Series A Preferred Stock at a price equal to $1.40 per share. Notwithstanding the foregoing, in the event that any Purchaser does not desire to participate, the
Majority Purchasers may (but shall not be required to) allow another Person (including, without limitation, the Majority Purchasers or the other Purchasers) to purchase such Purchaser’s share of the Series A Preferred Stock to be issued in
accordance with this Section 1.4. For the avoidance of doubt, the Company and the Purchasers acknowledge that the foregoing option is not a commitment on behalf of the Majority Purchasers (but is a commitment to sell by the Company and is a
commitment to purchase by the Purchasers in the event that such option is exercised by the Majority Purchasers). For purposes of this Agreement, a “Qualified Subsequent Financing” shall mean any financing in which the Company raises
additional capital of a minimum of $1 million from an independent third party lead investor (other than a financing led by the Majority Purchasers or an IPO). 
  

Section 2. REPRESENTATIONS AND WARRANTIES OF THE COMPANY 
  
 The Company represents and warrants to the Purchasers that the statements contained in this Section 2 are true and
correct in all respects as of the date of the Closing Date, except as set forth in the disclosure schedule accompanying this Agreement (the “Disclosure Schedule”). The Disclosure Schedule will be arranged in sections corresponding
to the lettered and numbered sections contained in this Section 2. 
  

 2. 

 2.1 Organization of the Company. The Company is a Delaware corporation, duly organized, validly
existing, and in good standing under the laws of Delaware. The Company is qualified to do business and is in good standing as a foreign corporation in each jurisdiction listed in Section 2.1 of the Disclosure Schedule. 
  
 2.2 Authorization of Transaction. The Company has the legal capacity,
power and authority (including full corporate power and authority) to execute and deliver this Agreement and the other Transaction Documents to which it is a party and to perform its respective obligations hereunder and thereunder. All corporate and
other actions or proceedings to be taken by or on the part of the Company to authorize and permit the execution and delivery by it of this Agreement and the other Transaction Documents, the issuance of the Series A Preferred and authorization of the
Series B Preferred, the performance by it of its respective obligations hereunder and thereunder, and the consummation by it of the transactions contemplated herein and therein, have been duly and properly taken. This Agreement has been duly
executed and delivered by the Company and constitutes the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms and conditions. At or prior to the Closing, the Company shall have duly
executed and delivered each of the other Transaction Documents to which it is a party, and upon such execution and delivery, each of such other Transaction Documents will constitute the legal, valid and binding obligation of the Company, enforceable
against the Company in accordance with its terms and conditions, except (i) limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditor’s rights generally,
(ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies, and (iii) to the extent the indemnification provisions contained in the Founders Agreement may be limited by applicable
federal or state securities laws. Upon issuance in accordance with the terms of this Agreement, the shares of Series A Preferred Stock issuable hereunder shall be duly and validly issued, fully paid and nonassessable. The Common Stock and the Series
B Preferred Stock issuable upon conversion or redemption of the Series A Preferred Stock, and the Series A Preferred Stock issuable in accordance with this Agreement have been duly and validly reserved for issuance (or will be so reserved promptly
following the Closing Date), and, upon issuance in accordance with the terms of the Amended and Restated Certificate of Incorporation of the Company, shall be duly and validly issued, fully paid and nonassessable. Following the Closing Date, the
Series A Preferred Stock, the Series B Preferred Stock and the Common Stock will have the designations, powers, preferences and rights, and the qualifications, limitations or restrictions thereof (and will entitle the holders thereof to all of such
powers, preferences and rights) as set forth in the Amended and Restated Certificate of Incorporation. 
  
 2.3 No Breach. The execution and delivery by the Company of this Agreement and the other Transaction Documents to which it is a party, the filing
of the Company’s Amended and Restated Certificate of Incorporation with the Secretary of State of Delaware, and the offer, sale and issuance of the Series A Preferred Stock and the authorization of the Common Stock and Series B Preferred Stock
issuable upon conversion of redemption of the Series A Preferred Stock hereunder, do not and will not (i) conflict with or result in a breach of the terms, conditions or provisions of, (ii) constitute a default under, (iii) result in the creation of
any lien, security interest, charge or encumbrance upon the Company’s capital stock or assets pursuant to, (iv) give any third party the right to accelerate any obligation under, (v) result in a violation of, or (vi) require any authorization,
consent, approval, exemption or other action by or notice to any court 

  

 3. 

 
or administrative or governmental body (other than in connection with certain state and federal securities laws) pursuant to, the Amended and Restated
Certificate of Incorporation or the bylaws, or any law, statute, rule, regulation, instrument, order, judgment or decree to which the Company is subject or any agreement or instrument to which the Company is a party. 
  
 2.4 Reliance by Purchasers. The Company understands that the
representations, warranties, covenants and acknowledgements set forth in this Section 3 constitute a material inducement to the Purchasers entering into this Agreement. 
  
 Section 3. REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS 
  
 Each of the Purchasers severally represents and warrants (solely in respect
of itself) to the Company that the statements contained in this Section 3 are true and correct in all respects as of the Closing Date. 
  
 3.1 Organization of the Purchasers. Such Purchaser (except in the case of an individual) is duly organized, validly existing, and in good standing
under the laws of the jurisdiction of its organization. 
  
 3.2
Authority for Agreement. Such Purchaser has full power and authority to execute and deliver this Agreement and each of the other Transaction Documents to which it is a party and to perform its obligations hereunder and thereunder. This
Agreement has been duly executed and delivered by such Purchaser and constitutes the valid and legally binding obligation of such Purchaser, enforceable against such Purchaser in accordance with its terms and conditions, except (i) as limited by
applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, and (ii) as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies. At or prior to the Closing, such Purchaser shall have duly executed and delivered each of the other Transaction Documents to which such Purchaser is a party, and upon such execution and delivery, each
of such other Transaction Documents will constitute the valid and legally binding obligation of such Purchaser, enforceable against such Purchaser in accordance with its terms and conditions, except (i) as limited by applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other
equitable remedies. 
  
 3.3 Purchasers’ Investment
Representations. Each Purchaser represents that the Series A Preferred Stock purchased or acquired hereunder by such Purchaser pursuant to this Agreement will be acquired for such Purchaser own account and not with a view to, or intention of,
distribution thereof in violation of any applicable securities laws, and the Series A Preferred Stock will not be disposed of in contravention of any such laws. Such Purchaser is an “accredited investor” as defined under Rule 501 of
Regulation D of the Securities Act. Such Purchaser is able to bear the economic risk of its investment in the Series A Preferred Stock for an indefinite period of time because the Series A Preferred Stock has not been registered under any applicable
securities laws and, therefore, cannot be sold unless subsequently registered under all applicable securities laws or an exemption therefrom is available. Such Purchaser has had an 

  

 4. 

 
opportunity to ask questions and receive answers concerning the terms and conditions of the offering of the Series A Preferred Stock and has had full access
to such other information concerning the Company as such Purchaser has requested. Such Purchaser knowledge and experience in financial and business matters are such that the Purchaser is capable of evaluating the risks of making investments in the
Company. 
  
 3.4 Reliance by the Company. Such Purchaser
understands that the representations, warranties, covenants and acknowledgements set forth in this Section 3 constitute a material inducement to the Company entering into this Agreement. 
  
 Section 4. CONDITIONS TO OBLIGATION TO CLOSE 

  
 4.1 Conditions to Obligation of the Purchasers. The
obligation of the Purchaser to consummate the transactions to be performed by it in connection with the Closing is subject to satisfaction of the following conditions: 
  
 (a) Representations and Warranties. The representations and warranties set forth in Section 2
above shall be true and correct in all respects as of the Closing Date. 
  
 (b) Amended and Restated Certificate of Incorporation. The Company’s Amended and Restated Certificate of Incorporation (the “Amended and Restated Certificate of Incorporation”) shall be
substantially in the form set forth in Exhibit B attached hereto, and it shall be in full force and effect under the laws of the State of Delaware as of the Closing. 
  
 (c) Bylaws. The Company’s Bylaws (the “Bylaws”) shall be in form and substance
as set forth in Exhibit C attached hereto, and it shall be in full force and effect under the laws of the State of Delaware as of the Closing. 
  
 (d) Registration Agreement. The Company and each of the parties named therein shall enter into that certain Registration Agreement
(the “Registration Agreement”) in form and substance as set forth in Exhibit D attached hereto. 
  
 (e) Asset Acquisition Agreement. The Company and each of the parties named therein shall enter into that certain Asset Acquisition
Agreement in form and substance as set forth in Exhibit E attached hereto. 
  
 (f) Founders Agreement. The Company and each of the parties named therein shall enter into that certain Founders Repurchase and
Rights Agreement (the “Founders Agreement”) in form and substance as set forth in Exhibit F attached hereto. 
  
 (g) Executives Securities Purchase Agreement. The Company and each of the parties named therein shall enter into that certain
Executive Securities Purchase Agreement (the “Executive Securities Purchase Agreement”) in form and substance as set forth in Exhibit G attached hereto. 
  
 (h) Deferred Compensation Agreement. The Company and each of the parties named therein shall enter
into that certain Deferred Compensation Agreement (the “Deferred Compensation Agreement”) in form and substance as set forth in Exhibit H attached hereto. 
  

 5. 

 (i) Stockholders Voting Agreement. The Company and each of the parties named
therein shall enter into that certain Stockholders Voting Agreement (the “Stockholders Voting Agreement”) in form and substance as set forth in Exhibit I attached hereto. 
  
 (j) Advisory Agreement. The Company and each of the
parties named therein shall enter into’ that certain Advisory Agreement (the “Advisory Agreement”) in form and substance as set forth in Exhibit J attached hereto. 
  
 (k) Employment Agreements. The Company and each of
the Founders and Tom Barton and Todd Ford shall enter into those certain Employment and Non-Competition Agreements (the “Employment Agreements”) in form and substance as set forth in Exhibit K attached hereto. 
  
 (l) Option Plan. The Company shall enter into that
certain 2002 Company’s Option Plan (the “2002 Option Plan”) in form and substance as set forth in Exhibit L attached hereto. 
  
 (m) Option Agreements. The Company and certain key employees of the Company shall enter into those certain Option Agreements (the
“Option Agreements”) in form and substance as set forth in Exhibit M attached hereto. 
  
 (n) Employee Proprietary Information and Inventions Agreement. The Company and each of the Company’s employees shall enter
into that certain Employee Proprietary Information and Inventions Agreement (the “Employee Proprietary Information and Inventions Agreement”) in form and substance as set forth in Exhibit N attached hereto. 
  
 (o) Sales of Series A Preferred to Each Purchaser.
The Company shall have simultaneously sold to each Purchaser the Series A Preferred Stock to be purchased by such Purchaser hereunder at such Closing and shall have received payment thereof in full. 
  
 (p) Performance by the Company. The Company shall
have performed and complied with all of its covenants, agreements and obligations hereunder through the Closing. 
  
 (q) Membership of Board of Directors. The membership of the Board of Directors of the Company shall be determined pursuant to the
Stockholders Voting Agreement. 
  
 (r) All
Necessary Actions. All actions to be taken by the Company in connection with the consummation of the transactions contemplated hereby and all certificates, opinions, instruments and other documents required to effect the transactions
contemplated hereby will be reasonably satisfactory in form and substance to the Majority Purchasers. 
  
 The Majority Purchasers may waive any condition specified in this Section 4.1 on behalf of itself and all other Purchasers if such Majority Purchasers
execute a writing so stating at or prior to the Closing. Such waiver shall not be considered a waiver of any other provision in this Agreement unless the writing specifically so states. 
  

 6. 

 4.2 Conditions to Obligations of the Company. The obligation of the Company to consummate the
transactions to be performed by it in connection with the Closing is subject to satisfaction of the following conditions: 
  
 (a) Representations and Warranties. The representations and warranties set forth in Section 3 above shall be true and
correct in all respects at and as of the Closing Date. 
  
 (b) Performance by Purchasers. The Purchasers shall have performed and complied with all of their covenants hereunder through the Closing, including without limitation payment of the total Purchase Price at Closing. 
  
 The Company may waive any condition specified in this Section 4.2 if
it executes a writing so stating at or prior to the Closing. Such waiver shall not be considered a waiver of any other provision in this Agreement unless the writing specifically so states. 
  
 Section 5. POST-CLOSING COVENANTS OF THE PURCHASER.

  
 5.1 Information and Reports to be Furnished. The
Company (and each of its future Subsidiaries, if any) will maintain a system of accounting in which correct and complete entries will be made of all dealings and transactions in relation to their business and affairs in accordance with GAAP. The
Company will furnish the following information to each Purchaser: 
  
 (a) Annual Statements. As soon as available, and in any event within 90 days after the end of each fiscal year of the Company, the audited consolidated balance sheet of the Company and its Subsidiaries (if any)
as of the end of such fiscal year and the audited consolidated statements of income, stockholders’ equity and cash flows for such year of the Company and its Subsidiaries (if any), together with the consolidated figures for the preceding fiscal
year (all in reasonable detail), such statements being accompanied by (a) the unqualified reports thereon of independent certified public accountants, reasonably satisfactory to the Majority Purchasers, to the effect that such consolidated financial
statements have been prepared in accordance with GAAP and present fairly in all material respects the financial position of the Company and its Subsidiaries (if any) as of the dates specified and the results of their operations and cash flows with
respect to the periods specified, (b) a comparison with the Budget for such fiscal year and to the preceding fiscal year and (c) a copy of such firm’s annual management letter to the Board of Directors. 
  
 (b) Quarterly Reports. As soon as available, and in
any event within 30 days after the end of each of the first three fiscal quarters in each fiscal year of the Company, the unaudited consolidated balance sheets of the Company and its Subsidiaries (if any) as of the end of such quarter and the
consolidated statements of income, stockholders’ equity and cash flows for such quarter and the portion of the fiscal year then ended of the Company and its Subsidiaries (if any), together with comparative consolidated figures for the
corresponding periods of the preceding fiscal year and the Budget (all in reasonable detail), and all such statements shall be prepared in accordance with GAAP. 
  
 (c) Monthly Reports. As soon as available but in any event within 20 days after the end of each
monthly accounting period in each fiscal year, unaudited consolidated statements of income and cash flows of the Company and its Subsidiaries (if any) for such 

  

 7. 

 
monthly period and for the period from the beginning of the fiscal year to the end of such month, and unaudited consolidated balance sheets of the Company
and its Subsidiaries (if any) as of the end of such monthly period, setting forth in each case comparisons to the Company’s annual budget and to the corresponding period in the preceding fiscal year, and all such statements shall be prepared in
accordance with GAAP. 
  
 (d) Other
Reports. (i) Promptly upon receipt thereof, any additional reports, management letters or other detailed information concerning significant aspects of the Company’s or any of its Subsidiaries (if any) operations or financial affairs given
to the Company or its Subsidiaries (if any) by its independent accountants (and not otherwise contained in materials provided hereunder); and (ii) with reasonable promptness, such other information and financial data concerning the Company and its
Subsidiaries (if any) as any Person entitled to receive information under this Section 5.1 may reasonably request. 
  
 (e) Officers’ Certificates. Together with delivery of financial statements of the Company and its Subsidiaries (if any)
pursuant to Sections 5.l(b) and 5.1(c) above, a certificate of the Chief Executive Officer or the Chief Financial Officer of the Company, that such statements have been prepared in accordance with GAAP and present fairly in all
material respects the consolidated financial position of the Company and its Subsidiaries (if any) as of the dates specified and the consolidated results of their operations and cash flows with respect to the periods specified (subject only to
normal year-end audit adjustments and the addition of footnotes). 
  
 5.2 Budget and Operating Forecast. The Company will cause its management to prepare and submit to the Board of Directors of the Company and to each Majority Purchaser a budget and operating plan for each fiscal year (on a monthly
basis) of the Company at least 45 days prior to the beginning of such fiscal year, together with management’s written discussion and analysis of such budget (displaying anticipated statements of income and cash flows and balance sheets). The
budget shall be accepted as the budget for the Company for such fiscal year when it has been approved by the Board of Directors of the Company (the “Budget”). The Company will cause its management to review the budget monthly and to
promptly advise each Majority Purchaser and the full Board of Directors at such time of all material changes therein, and all material deviations therefrom. 
  
 5.3 Notice of Litigation, Defaults, etc. The Company will promptly, and in any event within five (5) days after the Company has Knowledge of such
event, give written notice to each Majority Purchaser of (a) any litigation or any administrative proceeding commenced or threatened against the Company or any of its Subsidiaries which is reasonably likely to result in a charge against income in
excess of $25,000 (after giving effect to applicable insurance) or if adversely determined would be reasonably likely to have a Material Adverse Effect, (b) any resignation of or other change in executive management of the Company or any serious
illness of any member of such executive management, and (c) any offers to purchase a majority (or greater) interest in the Company or any of its Subsidiaries (whether by means of purchase of securities or assets or otherwise). The Company will
promptly, and in any event within three (3) days after any officer of the Company or any of its Subsidiaries (if any) obtains knowledge of any material default under or violation of this Agreement or any other Transaction Document, furnish notice to
each Purchaser specifying the nature of such default or violation and stating the 

  

 8. 

 
action the Company has taken or proposes to take with respect thereto. Promptly after the receipt thereof, the Company will furnish to each Majority
Purchaser copies of any reports as to inadequacies in accounting controls submitted by independent accountants. 
  
 5.4 Current Public Information. From and after an IPO, the Company or any of its Subsidiaries (if any) shall (i) file all registration statements,
reports, proxy statements, schedules or forms required to be tiled by it under the Securities Act and the Securities Exchange Act and the rules and regulations adopted by the SEC thereunder and (ii) take such further action as the Majority
Purchasers may reasonably request to the extent required to enable (a) the Purchasers to sell Restricted Securities pursuant to Rule 144 adopted by the SEC under the Securities Act (as such rule may be amended from time to time) or any similar rule
or regulation hereafter adopted by the SEC or (b) the Company or such Subsidiaries to be eligible to register its securities pursuant to a registration statement on Form S-2 or S-3 or any similar registration form hereafter adopted by the SEC. Upon
request, the Company or such Subsidiaries shall deliver to any holder of Restricted Securities a written statement as to whether it has complied with such requirements. 
  
 5.5 Other Information. From time to time upon the reasonable request of any Majority Purchaser, the Company will
furnish to such Majority Purchaser information regarding the business, assets, condition (financial or otherwise) or prospects of the Company and its Subsidiaries. Each such Majority Purchaser shall have the right to examine during normal business
hours and upon reasonable notice the books and corporate and financial records of the Company and its Subsidiaries (if any), to make copies and notes therefrom, and to make an independent examination of the books and records of the Company and its
Subsidiaries (if any). For the purpose of conducting such independent investigations, the Company shall make available to any Majority Purchaser the Chief Financial Officer and the Chief Executive Officer of the Company and any other officers,
directors, accountants, key employees and internal control personnel of the Company. The Company shall use reasonable efforts to make available any directors of the Company who are not officers. The presentation of an executed copy of this Agreement
by any Majority Purchaser to the Company’s independent accountants shall constitute the Company’s permission to its independent accountants to participate in discussions with such Persons. 
  
 5.6 Maintenance of Corporate Existence and Properties, Etc.

  
 (a) The Company will at all times do or cause
to be done all things reasonably necessary to maintain, preserve and renew its own and each of its Subsidiaries’ (if any) corporate charter and its own and each of its Subsidiaries’ (if any) privileges, franchises, qualifications,
licenses, authorizations, permits and rights that are necessary or desirable to the conduct of their respective businesses. 
  
 (b) The Company will provide or cause to be provided for itself and each of its Subsidiaries (if any) insurance against loss or damage of
the kinds customarily insured against by similarly situated businesses, with reputable insurers, in such amounts, with such deductibles and by such methods as shall be adequate, and in any event in amounts not less than amounts generally maintained
by other companies engaged in similar businesses and in each event as determined and approved by the Board of Directors. 
  

 9. 

 (c) The Company will comply, and cause each of its Subsidiaries (if any) to comply, with
all applicable Legal Requirements in respect of the conduct of the businesses of each of the Company and each of its Subsidiaries (if any), except where the failure to comply will not have a Material Adverse Effect. 
  
 (d) The Company will engage principally in the business of
design, and manufacture of computer server and data storage products and in lines of business ancillary or related thereto, except as otherwise approved by the Board of Directors. 
  
 5.7 Payment of Taxes. The Company will pay or discharge, at or before maturity or before becoming delinquent, all
Taxes, assessments and other governmental charges which may be imposed upon the Company or any of its Subsidiaries (if any) or which may become a Lien upon any property or right of the Company or any of its Subsidiaries (if any) or arising with
respect to the occupancy, use, possession or leasing thereof, other than for Taxes that the Company will contest in good faith through appropriate proceedings. 
  

5.8 Public Disclosures. The Company shall not, nor shall it permit any of its Subsidiaries (if any) or other Affiliates to, disclose any
Purchaser’s (or any of its Affiliates’) name or identity as an investor in the Company in any press release or other public announcement or in any document or material filed with any governmental entity, without the prior written consent
of the Majority Purchasers, unless such disclosure is required by applicable law or governmental regulations or by order of a court of competent jurisdiction, in which case prior to making such disclosure the Company shall give written notice to the
Majority Purchasers describing in reasonable detail the proposed content of such disclosure and shall permit the Majority Purchasers to review and comment upon the form and substance of such disclosure. 
  
 5.9 Intellectual Property Rights. The Company shall use its best
efforts to cause and to cause each of its Subsidiaries (if any) to, possess and maintain all Intellectual Property material to the conduct of their respective businesses and own all right, title and interest in and to, or have a valid license for,
all such Intellectual Property. Neither the Company nor any of its Subsidiaries (if any) shall take any action, or fail to take any action, that would result in the invalidity, abandonment, misuse or unenforceability of its Intellectual Property or
which would infringe upon or misappropriate any rights of other Persons. 
  
 5.10 Director Indemnity. The Company will not adopt any changes or amendments to its charters and bylaws provisions reducing the level of indemnification provided to its officers and directors. 
  
 Section 6. INDEMNIFICATION  
  
 6.1 Survival of Representations and Warranties. All representations,
warranties, covenants and agreements contained herein or made in certificate delivered in connection herewith, except for covenants and agreements which by their terms must be performed after the Closing, shall survive the execution and delivery of
this Agreement and the consummation of the transactions contemplated by this Agreement. The representations, warranties, covenants and agreements made herein, together with the indemnification provisions herein, are intended, among other things, to
allocate economic cost and the risks inherent in the transactions 

  

 10. 

 
contemplated hereby between the Parties, and, accordingly, a Party shall be entitled to the indemnification or other remedies provided in this Agreement by
reason of any breach of any such representation, warranty, covenant, or agreement by another Party notwithstanding whether any employee, representative or agent of the Party seeking to enforce the remedy knew or has reason to know of such breach.

  
 6.2 Indemnification. In consideration of the
Purchasers’ execution and delivery of this Agreement and acquisition of the Series A Preferred Stock hereunder and in addition to the Company’s and its Subsidiaries’ other obligations under this Agreement and in addition to all other
rights and remedies available at law or in equity, the Company shall indemnify, exonerate and hold the Purchasers, their Affiliates and each of their stockholders (other than stockholders of the Company), partners, officers, directors, employees,
agents, successors and assigns (collectively, the “Indemnitees”) free and harmless from and against, and pay on behalf of or reimburse such party on demand as and when incurred, any and all actions, causes of action, suits, claims,
losses (including diminutions in value and consequential damages), costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective of whether any such Indemnitee is a party to the action for which indemnification
hereunder is sought, and regardless of when asserted), including attorneys’ fees and disbursements, interest and penalties and all amounts paid in investigation, defense or settlement of any of the foregoing and claims relating to any of the
foregoing (the “Indemnified Liabilities”), incurred or suffered by the Indemnitees (including, without limitation, in their capacity as, as a result of, in connection with, related to or incidental to or arising out of, or relating
to (i) any breach or alleged breach by the Company of any of the representations and warranties made by the Company herein or in any document, certificate or other instrument required to be delivered hereunder, including, without limitation, the
Transaction Documents to which it is a party, (ii) any breach or alleged breach by the Company of any of its covenants and agreements contained in this Agreement or the other Transaction Documents to which it is a party, (iii) any breach or alleged
breach by the Founders of any representations and warranties, covenant or agreement made by the Founders under the Asset Acquisition Agreement, and (iv) third-party claims made as a result of, or arising out of, or relating to the execution,
delivery, performance or enforcement of, or the consummation of the transactions contemplated by this Agreement and the other Transaction Documents. To the extent that the foregoing undertaking by the Company may be unenforceable for any reason,
such entity shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law. Any Indemnified Liabilities payable by the Company to the Purchasers shall include
simple interest thereon at the rate of 8% per annum compounded quarterly, calculated on the basis of a 365-day year, from the date such Indemnified Liabilities arise through the date of payment satisfying such Indemnified Liability, and shall be
payable by a cashier’s or certified check, or by wire transfer of immediately available funds designated by the Purchasers. Notwithstanding anything to the contrary contained herein, in the event of any breach of a representation or warranty or
covenant by any Party contained herein that is intentional or constitutes fraud, the representation or warranty that has been breached will survive the execution and delivery of this Agreement and the consummation of the transactions contemplated
hereby (regardless of any investigation made by any Party or on its behalf) and will continue in full force and effect for the period of the applicable statute of limitations; and any limitations set forth herein shall not apply to any Indemnified
Liabilities that any of the Indemnitees may suffer, sustain or become subject to, as a result of, arising out of, relating to or in connection with any such breach. 
  

 11. 

 6.3 Indemnity Procedures. 
  
 (a) In the event that any claim (“Claim”) is hereafter asserted against or arises with
respect to any Indemnitee as to which such Indemnitee may be entitled to indemnification hereunder, such Indemnitee shall promptly (and in any event within sixty (60) days) after such Indemnitee has actual knowledge of the existence of any event in
respect of which indemnification may be sought from the Company (including, without limitation, any inaccuracy of any representation or warranty or breach of any covenant) notify each of the Company in writing thereof (the “Claims
Notice”); provided, however, that no delay on the part of the Indemnitee in notifying the Company shall relieve the Company from any obligation hereunder unless (and then solely to the extent) the Company thereby is prejudiced
by such delay. The Claims Notice shall describe the Claim in reasonable detail, and shall indicate the amount, if known, or an estimate, if possible, of the losses that have been or may be incurred or suffered by the Indemnitee, and the Company may
defend the same or prosecute such action to conclusion or settlement satisfactory to the Indemnitee at its own expense and with counsel of its own selection; provided that, prior to and as a condition to defending such claim, the Company
shall first agree to indemnify the Indemnitee from and against any Indemnified Liabilities the Indemnitee may suffer resulting from, arising out of, relating to, in the nature of, or caused by the Claim (whether or not otherwise required hereunder
and with no reservation of rights). If, within a reasonable time after receipt of said notice or at any time thereafter, the Company shall have failed to either (i) provide reasonably satisfactory evidence to the Indemnitee of the financial and
other wherewithal to defend, or (ii) defend vigorously, the Indemnitee shall have the right, but not the obligation, to undertake the defense of, and to compromise or settle (exercising reasonable business judgment) the claim or other matter on
behalf, for the account, and at the risk and expense of the Company. Except as provided in the preceding sentence, the Indemnitee shall not compromise or settle the claim or other matter without the prior written consent of the Company, and the
Company shall not compromise or settle the Claim or matters without the prior written consent of the Indemnitee. If the Claim is one that cannot by its nature be defended solely by the Company, the Indemnitee shall make available all information and
assistance that the Company may reasonably request: provided that any associated expenses shall be paid by the Company. Except as set forth in Section 6.4 below, all indemnification payments shall be made in United States Dollars. 

 
 (b) If the Company contests or challenges any claim or
action asserted against the Indemnitee referred to in this Section 6, they shall do so at their own cost and expense, holding the Indemnitee harmless from all costs, fees, expenses, debts, liabilities and charges and other Indemnified
Liabilities in connection with such contest; shall diligently defend against any such claim; and shall hold Indemnitee’s business and assets free and harmless from any attachment, execution, judgment, lien or other legal process. 
  
 6.4 Satisfaction of Indemnification Claims. In each case where the
Company is required to provide indemnification pursuant to this Section 6, and there is insufficient capital in the Company to meet the Company’s indemnification obligation under this Section 6, taking into account the
Company’s future cash needs, as reasonably determined by the Board of Directors, the Majority Purchasers may elect (but shall not be required to elect) to have the Company issue up to a number of shares of Series A Preferred Stock equal to the
amount of indemnification owed (or such portion thereof as elected by the Majority Purchasers in its sole discretion) divided 

  

 12. 

 
by the Price Per Share of the Series A Preferred Stock. If at the time of any such election, the Company does not have a sufficient number of authorized but
unissued shares of Series A Preferred Stock, the Company shall promptly take such action as shall be necessary to create a sufficient number of authorized but unissued shares of Series A Preferred Stock to satisfy such election (and sufficient
authorized but unissued shares of Common Stock and Series A Preferred Stock reserved for issuance upon conversion or redemption thereof). Notwithstanding anything contained to the contrary herein, and for the avoidance of doubt, any issuance (or
lack thereof) of Series A Preferred Stock pursuant to this Section 6.4 shall in no way effect, alter, diminish or modify (i) the Company’s obligation to issue Series A Preferred Stock in accordance with Section 1.4 hereof or (ii)
the Company’s obligation to provide indemnification (in whole or in part) in cash or otherwise (except to the extent actually provided in Series A Preferred Stock in accordance with this Section 6.4). 
  
 Section 7. DEFINITIONS 
  
 For purposes of this Agreement: 
  
 7.1 Certain Matters of Construction. In addition to the definitions
referred to as set forth below in this Section 7: 
  
 (a) The words “hereof,” “herein,” “hereunder” and words of similar import shall refer to this Agreement as a whole and not to any particular Section or provision of this Agreement, and reference to a particular
Section of this Agreement shall include all subsections thereof. 
  
 (b) Definitions shall be equally applicable to both the singular and plural forms of the terms defined, and references to the masculine, feminine or neuter gender shall include each other gender. 
  
 (c) Accounting terms used herein and not otherwise defined
herein are used herein as defined by GAAP in the United States in effect as of the date hereof. 
  
 7.2 Cross Reference Table. The following terms defined elsewhere in this Agreement in the Sections set forth below shall have the respective
meanings therein defined: 
  

			
	 Term

	  	 Section

	 Advisory Agreement
	  	4.1(j)
	 Agreement
	  	Preamble
	 Asset Acquisition Agreement
	  	4.l(e)
	 Budget
	  	5.2
	 Bylaws
	  	4.1(c)
	 Amended and Restated Certificate of Incorporation
	  	4.1(b)
	 Claims Notice
	  	6.3(b)
	 Closing
	  	1.2
	 Closing Date
	  	1.2
	 Company
	  	Preamble
	 Deferred Compensation Agreement
	  	4.1(h)
	 Disclosure Schedule
	  	Section 2

  

 13. 

			
	 Term

	  	 Section

	 Employee Proprietary Information and Inventions
	  	4.1(n)
	 Agreement
	  	4.1(k)
	 Employment Agreements
	  	4.1(g)
	 Executives Securities Purchase Agreement
	  	4.l(f)
	 Founders Agreement
	  	6.1
	 Indemnified Liabilities
	  	6.1
	 Indemnities
	  	4.1(m)
	 Option Agreements
	  	4.1(1)
	 Option Plan
	  	Preamble
	 Parties
	  	1.1
	 Price Per Share
	  	Preamble
	 Purchaser
	  	Preamble
	 Purchasers
	  	1.4
	 Qualified Subsequent Financing
	  	4.1(d)
	 Registration Agreement
	  	4.1(0)
	 Sales of series A Preferred to Each Purchaser
	  	1.1
	 Securities
	  	1.3
	 SPA
	  	4.l(i)
	 Stockholders Voting Agreement
	  	 

  
 7.3 Certain
Definitions. The following terms shall have the following meanings: 
  
 “Affiliate” shall mean, as to any specified Person at any time any other Person that directly or indirectly through one or more intermediaries controls, or is controlled by, or is under common control with, such specified
Person (for the purposes of this definition, “control” (including, with correlative meanings, the terms “controlling,” “controlled by” and “under common control with”) as used with respect to any Person, means
the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise). 
  
 “Amended and Restated Certificate of Incorporation” means
that certain Amended and Restated Certificate of Incorporation of the Company in the form and substance as Exhibit B attached hereto. 
  
 “Board of Directors” means the Board of Directors of the Company as elected from time to time. 
  
 “Bylaws” means that certain Bylaws of the Company in the
form and substance set forth in Exhibit C attached hereto. 
  
 “Code” means the Internal Revenue Code of 1986, as amended. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 
  
 “Founders” shall mean each of Giovanni Coglitore, Nikolai Gallo and Jack Randall. 
  

 14. 

 “Founders Agreement” shall mean the Founders Repurchase and Rights Agreement, dated as
of the date hereof, by and among the Company, Rackable, and the Founders in the form and substance as set forth in Exhibit F attached hereto. 
  
 “GAAP” means United States generally accepted accounting principles as in effect from time to time, applied on a consistent basis in
accordance with past practice. 
  
 “Government or
Governmental Authority” means any federal, state, local, foreign, international, multinational or other government and any political subdivision thereof or any entity exercising executive, legislative, judicial, regulatory or administrative
functions of government. 
  
 “Indebtedness” means
at a particular time, without duplication, (i) any indebtedness for borrowed money or issued in substitution for or exchange of indebtedness for borrowed money, (ii) any indebtedness evidenced by any note, bond, debenture or other debt security,
(iii) any indebtedness for the deferred purchase price of property or services with respect to which a Person is liable, contingently or otherwise, as obligor or otherwise (including trade payables, amounts owed to suppliers and other current
liabilities incurred in the Ordinary Course of Business which are past due) including any Liability (whether earn-outs, indemnity payments, non-compete payments, consulting payments, retention bonuses, severance payments or other similar payments,
or otherwise, that may be payable as a result of or in connection with any acquisition of, or investments in, or sale to another Person or the consummation of any of the transactions contemplated hereby, (iv) any commitment by which a Person assures
a creditor against loss (including contingent reimbursement obligations with respect to letters of credit), (v) any indebtedness guaranteed in any manner by a Person (including guarantees in the form of an agreement to repurchase or reimburse), (vi)
any obligations under capitalized leases with respect to which a Person is liable, contingently or otherwise, as obligor, guarantor or otherwise, or with respect to which obligations a Person assures a creditor against loss, (vii) any indebtedness
secured by a Lien on a Person’s assets, (viii) all indebtedness created or arising under any conditional sale or other retention agreement with respect to property acquired by such Person (even though the rights and remedies of the seller or
lender under such agreement in the event of default are limited to repossession or sale of such property), and (ix) any unsatisfied obligation for “withdrawal liability” to a “multi-employer plan” as such terms are defined under
ERISA. 
  
 “IPO” means the initial public
offering of the Company’s securities pursuant to the Securities Act of 1933, as amended, or any similar federal law then in force. 
  
 “Knowledge” means (i) with respect to an individual, (A) such individual’s actual knowledge and awareness and (B) the knowledge or
awareness which a business person should have obtained in the conduct of his or her business after making reasonable inquiry and reasonable diligence with respect to the particular matter; and (ii) with respect to a corporation, partnership, limited
liability company or other entity, the knowledge (as defined in clause (i)) of its senior managers and key employees. 
  
 “Legal Requirement” means any requirement arising under law (including any common law), rule, regulation, directive, decision, by-law,
ordinance, circular, code, order, demand, notice, resolution, injunction, judgment, decree, ruling, interpretation, constitution, ordinance, 

  

 15. 

 
treaty, order or other determination, direction or act of any arbitrator or Government or Governmental Authority, including any Environmental and Safety
Requirements. 
  
 “Liability” means any
liability, debt, deficiency, Tax, penalty, fine, claim, cause of action, obligation or other loss, cost or expense of any kind or nature whatsoever (whether known or unknown, whether asserted or unasserted, whether absolute or contingent, whether
accrued or unaccrued, whether liquidated or unliquidated, whether incurred or consequential and whether due or to become due and regardless of when asserted), including any liability for Taxes. 
  
 “Lien” means any mortgage, lien, charge, claim, equitable
interest, encumbrance, guarantees, restriction on transfer option, preemptive rights, rights of first refusal or other similar arrangement or interest or any other type of preferential arrangement (including any conditional sale or other title
retention agreement or lease in the nature thereof), any sale of receivables with recourse against the Company, any filing or agreement to file a financing statement as debtor under the Uniform Commercial Code or any similar statute (other than to
reflect ownership by a third party of property leased to the Company under a lease which is not in the nature of a conditional sale or title retention agreement), any subordination arrangement in favor of another Person, transfer for the purpose of
subjection to the payment of any Indebtedness, or restriction on the creation of any of the foregoing, whether relating to any property or right or the income or profits therefrom. 
  
 “Majority Purchasers” shall mean Rackable Investment LLC, a Delaware limited liability company. 

 
 “Material Adverse Effect” means, with respect to any
Person, a change in, or effect on, the operations, financial condition (financial or otherwise), results of operations, prospects, assets, Liabilities, value or the business (as presently conducted or as presently proposed to be conducted) that,
individually or together with all other such changes or effects has had or is reasonably likely to result in a material adverse effect on, or a material adverse change in, such Person and its Subsidiaries taken as a whole or has impaired or would
impair the ability of a Person to consummate the transactions contemplated by the Transaction Documents. 
  
 “Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust,
a joint venture, an unincorporated organization, Government or Governmental Authority or other entity. 
  
 “Restricted Securities” means (i) the Series A Preferred Stock issued hereunder (ii) any securities issued, directly or indirectly, upon
conversion, exchange or redemption of the securities referred to in clause (i) above, and (iii) any securities issued with respect to the securities referred to in clause (i) or (iii) above by way of a stock dividend or stock split or in
connection with a combination of shares, recapitalization, merger, consolidation or other reorganization. As to any particular Restricted Securities, such securities shall cease to be Restricted Securities when they have (a) been effectively
registered under the Securities Act and disposed of in accordance with the registration statement covering them, (b) become eligible for sale pursuant to Rule 144(k) (or any similar provision then in force) under the Securities Act or (c) been
otherwise transferred and new certificates for them not bearing a Securities Act legend 

  

 16. 

 
have been delivered by the Company. Whenever any particular securities cease to be Restricted Securities, the holder thereof shall be entitled to receive
from the Company, without expense, new securities of like tenor not bearing a Securities Act legend. 
  
 “Securities Act” means the Securities Act of 1933, as amended. 
  
 “Securities Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 “SEC” means the Securities and Exchange Commission.

  
 “Series A Preferred Stock” means the shares
of capital stock of the Company newly issued as “Series A Participating Preferred Stock”, par value $0.001 per share, containing the rights. preferences and privileges as set forth In the Purchaser Amended and Restated Certificate of
Incorporation. 
  
 “Series B Preferred Stock”
means the shares of capital stock of the Company newly issued as “Series B Redeemable Preferred Stock”, par value $0.001 per share, containing the rights, preferences and privileges as set forth in the Purchaser Amended and Restated
Certificate of Incorporation. 
  
 “Subsidiary”
means with respect to any Person, (i) any corporation at least a majority of whose outstanding voting stock is owned, directly or indirectly, by such Person or by one or more of its Subsidiaries, or by such Person and one or more of its
Subsidiaries, (ii) any partnership, limited liability company, joint venture or similar entity, at least a majority of whose outstanding partnership, membership or similar interests shall at the time be owned by such Person, or by one or more of its
Subsidiaries, or by such Person and one or more of its Subsidiaries and (iii) any limited partnership or limited liability company of which such Person or any of its Subsidiaries is a general partner or managing member. For the purposes of this
definition, “voting stock” means shares, interests, participations or other equivalents in the equity interest (however designated) in such Person having ordinary voting power for the election of a majority of the directors (or the
equivalent) of such Person, other than shares, interests, participations or other equivalents having such power only by reason of contingency. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a
limited liability company, partnership, association or other business entity if such Person or Persons shall be allocated a majority of limited liability company, partnership, association or other business entity gains or losses or shall be or
control any managing director or general partner of such limited liability company, partnership, association or other business entity. 
  
 “Tax” or “Taxes” means any federal, state, local, or foreign income, gross receipts, license, payroll, employment,
excise, severance, stamp, occupation, premium, windfall profits, environmental (including taxes under Code Section 59A), customs duties, capital stock, franchise, profits, withholding, social security (or similar, including FICA), unemployment,
disability, real property, personal property, sales, use, transfer, registration, value added, alternative or add-on minimum, estimated, or other tax of any kind whatsoever, including any interest, penalty, or addition thereto, whether disputed or
not. 
  

 17. 

 “Termination of Understanding Agreement” means that certain Termination of Understanding
Agreement, dated as of the date hereof, by and between the Company and Callero Partners, Inc. in the form and substance as set forth in Exhibit O. 
  
 “Transaction Documents” means this Agreement, the Employment Agreements, the Founders Agreement, the Registration Agreement, the Advisory
Agreement, the Stockholders Voting Agreement, the Amended and Restated Certificate of Incorporation, the Bylaws, the Asset Acquisition Agreement, the Executives Securities Purchase Agreement, the Deferred Compensation Agreement, the Employee
Proprietary Information and Inventions Agreements, the Amended and Restated Broker Agreement, the Indemnification Agreements, the 2002 Option Plan, the Option Agreements and each other certificate, instrument or document to be executed and delivered
pursuant to this Agreement. 
  
 Section 8.
MISCELLANEOUS 
  
 8.1 Press Releases and Public
Announcements. No Party shall issue any press release or make any public announcement relating to the subject matter of this Agreement prior to the Closing without the prior approval of the other Party, except where such disclosure is required
pursuant to applicable law. From and after the Closing, the Company agrees that neither it nor its Subsidiaries (if any) will make any statement to the press, press release or other public announcement regarding this Agreement or the transactions
contemplated hereby unless the text and time of the release of any such statement has been approved by the Majority Purchasers, except where such disclosure is required pursuant to applicable law. 
  
 8.2 Third Party Beneficiaries. Except as provided in Section 6
hereof. this Agreement shall not confer any rights or remedies upon any Person other than any Party, its respective successors and permitted assigns. 
  
 8.3 Entire Agreement. This Agreement and the other Transaction Documents constitute the entire agreement between the Parties and supersede any
prior understandings, agreements, or representations by or among the Parties or any of their Affiliates, written or oral, to the extent they relate in any way to the subject matter hereof and thereof. 
  
 8.4 Succession and Assignment. This Agreement shall be binding upon
and inure to the benefit of the Parties named herein and their respective successors and permitted assigns. No Party may assign either this Agreement or any of its rights, interests, or obligations hereunder without the prior written approval of the
other Party; provided, however, that any Purchaser may transfer its rights and interests to the Majority Purchaser (it being understood that Tom Barton and Todd Ford shall transfer all of their rights and interests to the Majority
Purchaser pursuant to the Unit Purchase and Exchange Agreement); and, provided, further, however, that the Majority Purchasers may (i) prior to Closing assign any or all of its rights and interests hereunder to one or more of
its Affiliates and designate one or more of its Affiliates to perform its obligations hereunder and (ii) after Closing assign any or all of its rights and interests hereunder to one or more transferees of any securities acquired by the Majority
Purchasers hereunder or directly or indirectly acquired pursuant to any securities acquired hereunder and designate one or more of such transferees to perform its obligations hereunder (and any such transferee may effect an assignment under this
clause (ii) to a subsequent transferee as if such first transferee were a 

  

 18. 

 
Purchaser hereunder) (in any or all of which cases the Company nonetheless shall remain responsible for the performance of all of its obligations hereunder).

  
 8.5 Counterparts. This Agreement may be executed in one
or more counterparts, each of which shall be deemed an original but all of which together will constitute one and the same instrument. 
  
 8.6 Headings. The section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or
interpretation of this Agreement. 
  
 8.7 Notices. All
notices, requests, demands, claims, and other communications hereunder will be in writing. Any notice, request, demand, claim, or other communication hereunder shall be deemed duly given (i) upon confirmation of receipt if sent by facsimile or
personal delivery, (ii) one business day following the date sent when sent by overnight delivery and (iii) five business days following the date mailed when mailed by registered or certified mail return receipt requested and postage prepaid at the
following address: 
  
 If to the Company: 
  
 Rackable Corporation 
 c/o Parthenon Capital 
 Fourth Embarcadero
Center 
 Suite 3350 
 San
Francisco, CA 94111 
 Facsimile: (415) 986-1800 
 Attention: Will Kessinger and Brian Golson 
  
 Copy to: 
  
 Kirkland & Ellis

 200 East Randolph Drive 
 Chicago, IL 60601 
 Facsimile: (312) 861-2200 
 Attention: Jeffrey Seifman 
  
 If
to the Purchaser: 
  
 Rackable Investment LLC 
 c/o Parthenon Capital 
 Fourth Embarcadero
Center 
 Suite 3350 
 San
Francisco, CA 94111 
 Facsimile: (415) 986-1800 
 Attention: Will Kessinger and Brian Golson 
  

 19. 

 Copy to: 
  
 Kirkland & Ellis 
 200 East Randolph Drive

 Chicago, IL 60601 
 Facsimile:
(312) 861-2200 
 Attention: Jeffrey Seifman 
  
 Any Party may send any notice, request, demand, claim, or other communication hereunder to the intended recipient at the address set forth above using any other means
(including personal delivery, expedited courier, messenger service, telecopy, telex, ordinary mail, or electronic mail), but no such notice, request, demand, claim, or other communication shall be deemed to have been duly given unless and until it
actually is received by the intended recipient. Any Party may change the address to which notices, requests, demands, claims, and other communications hereunder are to be delivered by giving the other Party notice in the manner herein set forth.

  
 8.8 Governing Law. This Agreement shall be governed by
and construed in accordance with the domestic laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the
laws of any jurisdiction other than the State of Delaware. EACH OF THE PARTIES HEREBY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE, AND OF ANY DELAWARE STATE COURT SITTING IN WILMINGTON,
DELAWARE, OVER ANY LAWSUIT UNDER THIS AGREEMENT AND WAIVES ANY OBJECTION BASED ON VENUE OR FORUM NON CONVENIENS WITH RESPECT TO ANY ACTION INSTITUTED THEREIN. EACH OF THE PARTIES HEREBY WAIVES THE NECESSITY FOR PERSONAL SERVICE OF ANY AND ALL
PROCESS UPON IT AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL (RETURN RECEIPT REQUESTED), WITH A COPY ALSO BEING SENT BY FACSIMILE (WITH RECEIPT CONFIRMED), IN EACH CASE DIRECTED TO THE COMPANY OR THE
PURCHASERS AT ITS ADDRESS SET FORTH IN, AND WITH COPIES SENT AS PROVIDED BY SECTION 8.7 ABOVE, AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED ON THE DATE OF ACTUAL RECEIPT. EACH OF THE PARTIES HEREBY CONSENTS TO SERVICE OF PROCESS AS
AFORESAID. NOTHING IN THIS SECTION 8.8 WILL PROHIBIT PERSONAL SERVICE IN LIEU OF THE SERVICE BY MAIL CONTEMPLATED HEREIN. 
  
 8.9 Indirect Holders of Company Securities. Notwithstanding anything to the contrary contained herein, in the event that the Persons holding
Securities indirectly by virtue of their holding capital stock of the purchasers become the direct holders of such stock, the manager of the Majority Purchasers shall be deemed to be the Purchaser in place of the Majority Purchasers and Securities
held by such manager and its assignees who hold capital stock transferred to it by such manager (or its transferees) shall be deemed Restricted Securities. 
  
 8.10 Amendments and Waivers. For the purposes of this Agreement, except as otherwise specifically set forth herein. no course of dealing between
the Company and any Purchaser and no delay on the part of any Party in exercising any rights hereunder shall operate 

  

 20. 

 
as a waiver of the rights hereof and thereof. No provision hereof may be amended or waived unless such amendment or waiver is in writing and signed by each
Party to be bound thereby provided, however, that any such amendment or waiver executed by the Majority Purchasers shall be binding on all Purchasers. No waiver by any Party of any default. misrepresentation, or breach of warranty or
covenant hereunder, whether intentions! or not, shall be’ deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or
subsequent such occurrence. 
  
 8.11 Severability. Any term
or provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law by
which this Agreement is governed, such invalidity, illegality or unenforceability shall not affect any other provision; provided that such provision shall be construed to give effect to the parties intent of such provision to the maximum
extent permitted by applicable law. 
  
 8.12 Expenses. The
Company agrees to pay and hold each of the Purchasers and its Affiliates harmless against liability for the payment of, on an as and when incurred basis, (i) its fees and expenses (including its fees and expenses of its counsel and other advisors)
arising in connection with the preparation, execution, interpretation, administration, and monitoring of, and enforcement of its rights under this Agreement and the Transaction Documents and the other agreements contemplated hereby and thereby, and
the consummation of the transactions contemplated hereby and thereby or otherwise as an investor or a prospective investor in the Company or any of its Subsidiaries (if any) (including, but not limited to, fees and expenses arising with respect to
any subsequent or proposed acquisitions, sales, mergers or recapitalizations by the Company and its Subsidiaries (if any)), (ii) the fees and expenses incurred with respect to any amendments or waivers (whether or not the same become effective)
under or in respect of this Agreement, the Transaction Documents and the other agreements contemplated hereby and thereby, (iii) stamp and other taxes which may be payable in respect of the execution and delivery of this Agreement or the issuance,
delivery or acquisition of any Series A Preferred Stock purchased hereunder, and (iv) the fees and expenses incurred in connection with any filing with any governmental agency with respect to any Purchasers’ direct or indirect investment in the
Company or any Subsidiary thereof (if any), or in any other filing with any governmental agency with respect to the Company or any Subsidiary thereof which mentions any Purchaser. 
  
 8.13 Remedies. The Purchasers shall have all rights and remedies set forth in this Agreement and all rights and
remedies which such holders have been granted at any time under any other agreement or contract and all of the rights which such holders have under any law. Any Person having any rights under any provision of this Agreement shall be entitled to
enforce such rights specifically (without posting a bond or other security), to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights granted by law. 
  
 8.14 Construction. The Parties have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring
or disfavoring any Party by virtue of the authorship of any of the 

  

 21. 

 
provisions of this Agreement. Any reference to any federal, state. local. or foreign statute or law shall be deemed also to refer to all rules and
regulations promulgated thereunder. unless the context requires otherwise. The word “including” shall mean including without limitation. The mere listing (or inclusion of a copy) of a document or other item shall not be deemed adequate to
disclose an exception to a representation or warranty made herein (unless the representation or warranty has to do with the existence of the document or other item itself). The Parties intend that each representation, warranty, and covenant
contained herein shall have independent significance. If any Party has breached any representation, warranty. or covenant contained herein in any respect, the fact that there exists another representation, warranty, or covenant relating to the same
subject matter (regardless of the relative levels of specificity) which the Party has not breached shall not detract from or mitigate the fact that the Party is in breach of the first representation, warranty, or covenant. 
  
 8.15 Generally Accepted Accounting Principles. Where any accounting
determination or calculation is required to be made under this Agreement or the exhibits hereto, such determination or calculation (unless otherwise provided) shall be made in accordance with GAAP, consistently applied, except that if because of a
change in GAAP the Company would have to alter a previously utilized accounting method or policy in order to remain in compliance with GAAP, such determination or calculation shall continue to be made in accordance with the Company’s previous
accounting methods and policies. All numbers set forth herein which refer to share prices or numbers or amount will be appropriately adjusted to reflect stock splits, stock dividends, combinations of classes and other recapitalizations affecting the
subject class of stock. 
  
 8.16 Delivery by Facsimile.
This Agreement, the agreements referred to herein, and each other agreement or instrument entered into in connection herewith or therewith or contemplated hereby or thereby, and any amendments hereto or thereto, to the extent signed and delivered by
means of a facsimile machine, shall be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. At
the request of any party hereto or to any such agreement or instrument, each other party hereto or thereto shall reexecute original forms thereof and deliver them to all other parties. No party hereto or to any such agreement or instrument shall
raise the use of a facsimile machine to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of a facsimile machine as a defense to the formation or enforceability of a
contract and each such party forever waives any such defense. 
  
 8.17 Payment Set Aside. To the extent that the Company, any of its Subsidiaries (if any) or any other obligor makes a payment or payments to the Purchasers hereunder or under other agreements contemplated hereby or the Purchasers
enforce their rights or exercise their right of setoff hereunder or thereunder, and such payment or payments or the proceeds of such enforcement or setoff or any part thereof are subsequently invalidated, declared to be fraudulent or preferential,
set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, any of its Subsidiaries (if any), a trustee, receiver or any other Person under any law (including any bankruptcy law, state or
federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and shall continue in full force and effect as if such payment had
not been made or such enforcement or setoff had not occurred. 
  

 22. 

 8.18 Incorporation of Exhibits and Schedules. The Exhibits and Schedules identified in this
Agreement are incorporated herein by reference and made a part hereof. 
  
 8.19 Specific Performance. Each of the Parties acknowledges and agrees that the other Party would be damaged irreparably in the event any of the provisions of this Agreement are not performed in accordance with their specific terms
or otherwise are breached. Accordingly, each of the Parties agrees that the other Party shall be entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically this Agreement and the
terms and provisions hereof in any court of the United States or any state thereof having jurisdiction over the Parties and the matter. in addition to any other remedy to which they may be entitled, at law or equity). 
  
 8.20 Further Assurances. At any time and from time to time after the
Closing, at the request of any Purchaser and without further consideration. the Company will execute and deliver, or cause to be executed and delivered, such other instruments and documents and take such action as such Purchaser may reasonably
request in order to confirm, complete or better consummate the transactions contemplated by this Agreement or any of the other Transaction Documents. 
  
 8.21 Understanding Among the Purchasers. The determination of each Purchaser to enter into this Agreement and to purchase the Series A Preferred
Stock hereunder has been made by such Purchaser independent of any other Purchaser and independent of any statements or opinions as to the advisability of such purchase or as to the properties, business, prospects or condition (financial or
otherwise) of the Company and its Subsidiaries which may have been made or given by any other Purchaser or by any agent or employee of any other Purchaser. In addition, it is acknowledged by the Company and by each of the other Purchasers that the
Majority Purchasers have not acted as an agent of such Purchaser in connection with making its investment hereunder and the Majority Purchasers shall not be acting as an agent of such Purchaser in connection with monitoring its investment hereunder.
In addition, it is acknowledged by the Company and by each of the other Purchasers that the Majority Purchasers have retained Kirkland & Ellis to act as their counsel and representative in connection with the transactions contemplated hereby and
that Kirkland & Ellis has not acted as counsel or representative for the Company or any other Purchaser in connection with the transactions contemplated hereby and that neither the Company nor any of the other Purchasers has the status of a
client of Kirkland & Ellis for conflict of interest or any other purposes as a result thereof. 
  
 8.22 Information Complete and Accurate; Reliance. Without limiting the specific language of any other representation or warranty in Section
2, all information furnished or to be furnished by the Company to the Purchasers in this Agreement, and in exhibits or schedules attached hereto, is or will be accurate and complete, includes or will include all material facts required to be
stated therein and does not or will not contain any untrue statement of a material fact or omit any material fact necessary to make the statements therein not misleading. Notwithstanding any right of the Purchasers fully to investigate the affairs
of the Company, and notwithstanding any Knowledge of facts determined or determinable by any Purchaser pursuant to such investigation or right of investigation, the Purchasers have the right to rely fully upon the representations and warranties of
the Company, contained in this Agreement, in the exhibits or 

  

 23. 

 
the schedules hereto or in any other document delivered in connection with the transactions contemplated hereby. 
  
 Section 9. WAIVER OF JURY TRIAL. 
  
 TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW WHICH CANNOT BE WAIVED, THE PURCHASERS AND
THE COMPANY HEREBY WAIVE, AND COVENANT THAT NEITHER THE COMPANY NOR THE PURCHASERS WILL ASSERT, ANY RIGHT TO TRIAL BY JURY ON ANY ISSUE IN ANY PROCEEDING, WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE, IN RESPECT OF ANY ISSUE, CLAIM, DEMAND, ACTION
OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT OR THE SUBJECT MATTER HEREOF OR THEREOF OR IN ANY WAY CONNECTED WITH, RELATED OR INCIDENTAL TO THE DEALINGS OF THE PURCHASERS AND THE COMPANY HEREUNDER OR
THEREUNDER, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING AND WHETHER IN TORT OR CONTRACT OR OTHERWISE. The Company acknowledges that it has been informed by the Purchasers that the provisions of this Section 9 constitute a
material inducement upon which the Purchasers are relying and will rely in entering into this Agreement and purchasing the Shares pursuant hereto. Any Purchaser or the Company may tile an original counterpart or a copy of this Section 9 with
any court as written evidence of the consent of the Purchasers and the Company to the waiver of its right to trial by jury. 
  

 24. 

 IN WITNESS WHEREOF, the undersigned have executed this Securities Purchase Agreement as a sealed
instrument as of the day and year first above written. 
  

									
	 THE COMPANY:
	 	 	 	RACKABLE CORPORATION
					
	 	 	 	 	 	 	By:	 	/s/
	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 Title:
	 	 
			
	 THE MAJORITY PURCHASER:
	 	 	 	RACKABLE INVESTMENT LLC
					
	 	 	 	 	 	 	By:	 	/s/ William C. Kessinger
	 	 	 	 	 	 	 Name:
	 	William C. Kessinger
	 	 	 	 	 	 	 Title:
	 	 
			
	 OTHER PURCHASERS:
	 	 	 	 
				
	 	 	 	 	 	 	/s/ Tom Barton
	 	 	 	 	 	 	 Tom Barton

				
	 	 	 	 	 	 	/s/ Todd Ford
	 	 	 	 	 	 	 Todd Ford

  

  
 RACKABLE SYSTEMS, INC.

  
 AMENDMENT NO. 1 TO 
 SECURITIES PURCHASE AGREEMENT 
  
 This Amendment No. 1 to the Securities Purchase Agreement (the “Amendment”) is made and entered into as of September 30, 2004, by
and among Rackable Systems, Inc. (f.k.a. Rackable Corporation), a Delaware corporation (the “Company”), and Rackable Investment LLC, a Delaware limited liability company (“Rackable LLC”). All capitalized
terms used in this Amendment but not defined herein shall have the meanings ascribed to them in the Purchase Agreement (as defined below). 
  
 RECITALS 
  
 WHEREAS, Rackable LLC and the Company are parties to that certain Securities Purchase Agreement dated as of December
23, 2002 (the “Purchase Agreement”); 
  
 WHEREAS, pursuant to Section 8.10 of the Purchase Agreement, the Purchase Agreement may be amended with the written consent of the Company and the Majority Purchaser (as defined in the Purchase
Agreement); 
  
 WHEREAS,
Rackable LLC is the Majority Purchaser; and 
  
 WHEREAS, to provide for the termination of certain rights and covenants upon an IPO (as defined below), the Company and Rackable LLC desire to amend the Purchase Agreement as provided below. 

 
 AGREEMENT 
  

	1.	Section 1.4 of the Purchase Agreement shall be amended by adding at the end thereof the following: 

  
 “The rights granted under this Section 1.4 shall automatically terminate on the date of the closing of a firmly
underwritten public offering of the Common Stock of the Company pursuant to a registration statement filed with the Securities and Exchange Commission and declared effective under the Securities Act.” 
  

	2.	No Other Amendment. Except as modified by this Amendment, the Purchase Agreement shall remain in full force and effect in all respects without any modification. This
Amendment shall become effective when executed and delivered by Rackable LLC and the Company. 

  

	3.	Counterparts. This Amendment may be executed in counterparts, each of which shall constitute an original and all of which, when taken together, shall constitute one
agreement. 

  

	4.	Governing Law. This Agreement shall be governed by and construed under the laws of the State of Delaware in all respects as such laws are applied to agreements among Delaware
residents entered into and performed entirely within Delaware. The parties agree that any action brought by either party under or in relation to this Agreement, including without limitation to interpret or enforce any provision of this Agreement,
shall be brought in, and each party agrees to and does hereby submit to the jurisdiction and venue of, any state or federal court located in the County of Santa Clara, California. 

  
 [Remainder of page intentionally left blank] 
  

 IN WITNESS WHEREOF, the parties hereto
have caused this Amendment No. 1 to Securities Purchase Agreement to be executed and delivered as of the date first written above. 
  

									
	COMPANY:	 	 	 	RACKABLE INVESTMENT LLC:
			
	RACKABLE SYSTEMS, INC.	 	 	 	 
					
	By:	 	 /s/ Thomas K. Barton
	 	 	 	By:	 	 /s/ Will Kessinger

	 	 	 Thomas K. Barton, Chief Executive Officer
	 	 	 	 Name:
	 	 Will Kessinger

	 	 	 	 	 	 	 Title:Registration Agreement dated December 23, 2002

 Exhibit 10.2 
  
 EXECUTION 
  
 RACKABLE SYSTEMS, INC. 
  
 REGISTRATION AGREEMENT 
  
 THIS REGISTRATION AGREEMENT (this “Agreement”) is made as of December 23, 2002, by and among Rackable Systems, Inc., a Delaware corporation (formerly known as Rackable Corporation) (the
“Company”), the Persons listed from time to time on the Investor Registrable Securities Schedules attached hereto, (collectively, the “Investor”), Giovani Coglitore, Nikolai Gallo, and Jack Randall (the
“Founders”) and each of the holders of Registrable Securities who may from time to time become a party hereto by executing a counterpart to this Agreement. 
  
 WHEREAS, the Investor and the Company are party to a Securities Purchase Agreement dated as of the date hereof (the
“Purchase Agreement”), pursuant to which the Investor acquired shares of the Company’s Series A Convertible Preferred Stock, par value $0.001 per share; 
  
 WHEREAS, in order to induce the Investor to enter into the Securities Purchase Agreement, the Company has agreed to enter
into this Agreement to provide the registration rights set forth herein; and 
  
 WHEREAS, the execution and delivery of this Agreement is a condition to the Closing under the Securities Purchase Agreement. 
  
 NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties to this Agreement intending to be legally bound hereby agree as follows: 
  
 Unless otherwise provided in this Agreement, capitalized terms used herein shall have the meanings set forth in Section 8 hereof. 
  
 Section 1. Demand Registrations. 
  
 (a) Requests for Registration. Subject to the conditions in this
Section 1, after the first to occur of (i) the 18 month anniversary of the date of this Agreement or (ii) the six month anniversary of the effective date of the IPO, any time and from time to time, the holder or holders of a majority of
Investor Registrable Securities then outstanding may request (i) Long-Form Registration of all or any portion (but in each case, representing at least twenty-five percent (25%) of the then outstanding Investor Registrable Securities), of the
Investor Registrable Securities held by them and (ii) Short-Form Registration under the Securities Act of all or any portion of the Investor Registrable Securities, if available. All registrations requested pursuant to this Section 1(a) are
referred to herein as “Demand Registrations.” Each request for a Demand Registration shall specify the approximate number of Registrable Securities requested to be registered, the anticipated per share price range for such offering
(which range may be revised from time to time by holders of a majority of the Investor Registrable Securities requesting to be included in such registration by written notice to the Company to that effect) and 

  

 1. 

 
the intended method of distribution of the Registrable Securities to be sold. Within twenty days after receipt of any such request, the Company shall give
written notice of such requested registration to all other holders of Registrable Securities and, subject to the terms of Section 1(d) hereof, shall use its best efforts to include in such registration all Registrable Securities with respect
to which the Company has received written requests for inclusion therein within twenty days after the receipt of the Company’s notice. 
  
 (b) Long-Form Registrations. All Long-Form Registrations shall be underwritten registrations unless otherwise requested by the holders of a
majority of the Registrable Securities requesting such Long-Form Registration and the Company shall pay all Registration Expenses with respect to such Long-Form Registration effected pursuant to this Section 1(b). The Company shall not be
required to effect a Long-Form Registration pursuant to this Section 1(b); 
  
 (i) after the Company has effected three (3) registrations pursuant to this Section l(b), and such registrations have been declared or ordered effective; 
  
 (ii) if the Company has effected a registration pursuant to this Section
1(b) within the preceding 180 days, and such registration has been declared or ordered effective; 
  
 (iii) during the period starting with the date nine (9) days prior to the Company’s good faith estimate of the date of the filing of, and ending on
a date one hundred eighty (180) days following the effective date of, a Company-initiated registration subject to Section 2, provided that the Company is actively employing in good faith all reasonable efforts to cause such registration
statement to become effective; or 
  
 (iv) in any particular
jurisdiction in which the Company would be required to execute a general consent to service of process in effecting such registration, unless the Company is already subject to service in such jurisdiction and except as may be required under the Act.

  
 (c) Short-Form Registrations. In addition to the
Long-Form Registrations provided pursuant to Section l(b), the holder or holders of a majority of Investor Registrable Securities shall be entitled to request an unlimited number of Short-Form Registrations in which the Company shall pay all
Registration Expenses. Demand Registrations shall be Short-Form Registrations whenever the Company is permitted to use any applicable short form. After the Company has become subject to the reporting requirements of the Securities Exchange Act, the
Company shall use its best efforts to make Short-Form Registrations available for the sale of Registrable Securities. If the Company, pursuant to the request of the holder(s) of a majority of the Investor Registrable Securities, is qualified to and
has filed with the Securities and Exchange Commission a registration statement under the Securities Act on Form S-3 pursuant to Rule 415 under the Securities Act (the “Required Registration”), the Company shall use its best efforts
to cause the Required Registration to be declared effective under the Securities Act as soon as practical after filing, and once effective, the Company shall cause such Required Registration to remain effective for a period ending on the date on
which all Investor Registrable Securities have been sold pursuant to the Required Registration (the “Effective Period”). Notwithstanding the 

  

 2. 

 
foregoing, the Company shall not be obligated to effect any such Short-Form Registration pursuant to this Section l(c) if: 
  
 (i) if the holders of the Investor Registrable Securities, together with
the holders of any other securities of the Company entitled to inclusion in such Short-Form Registration, propose to sell Investor Registrable Securities and such other securities (if any) at an aggregate price to the public (net of any
underwriters’ discounts or commissions) of less than $1,000,000; or 
  
 (ii) in any particular jurisdiction in which the Company would be required to qualify to do business, where not otherwise required, or to execute a general consent to service of process in effecting such registration,
qualification or compliance. 
  
 (d) Priority on Demand
Registrations. The Company shall not include in any Demand Registration any securities which are not Registrable Securities without the prior written consent of the holders of a majority of the Investor Registrable Securities requested to be
included in such Demand Registration. If a Demand Registration is an underwritten offering and the managing underwriters advise the Company in writing that in their opinion the number of Registrable Securities and, if permitted hereunder, other
securities requested to be included in such offering exceeds the number of Registrable Securities and other securities which can be sold therein in an orderly manner in such offering within a price range acceptable to the holders of a majority of
Investor Registrable Securities requested to be included in such offering, the Company shall include in such registration prior to the inclusion of any securities which are not Registrable Securities the number of Registrable Securities requested to
be included which in the opinion of such underwriters can be sold in an orderly manner within the price range of such offering, pro rata among the respective holders thereof on the basis of the amount of Registrable Securities requested to be
included therein by each such holder. Any Persons other than holders of Registrable Securities who participate in Demand Registrations which are not at the Company’s expense must pay their share of the Registration Expenses as provided in
Section 5 hereof. 
  
 (e) Restrictions on Long-Form and
Short-Form Registrations. Notwithstanding the foregoing, the Company shall not be obligated to effect any Long-Form Registration pursuant to Section 1(b) or Short-Form Registration pursuant to Section 1(c), if the Company shall
furnish to the holders of Investor Registrable Securities a certificate signed by the Chief Executive Officer or Chairman of the Board of the Company stating that in the good faith judgment of the Board of Directors of the Company, it would be
seriously detrimental to the Company and its stockholders for such Short-Form Registration or Long-Form Registration, as the case may be, to be effected at such time, in which event the Company shall have the right to defer the filing of the
Short-Form Registration or Long-Form Registration, as the case may be, for a period of not more than 90 days after receipt of the request of the holder or holders under this Section 1(c), provided, however, that the Company shall not utilize
this right more than once in any twelve (12) month period and provided further, that the Company shall not register any other of its shares during such 90-day period; 
  
 (f) Selection of Underwriters. The holders of a majority of the Investor Registrable Securities requested to be
included in any Demand Registration shall, with the consent of the Company which consent shall not be unreasonably withheld, have the right to select the investment banker(s) and manager(s) to administer the offering. 
  

 3. 

 (g) Other Registration Rights. The Company represents and warrants that it is not a party to, or
otherwise subject to, any other agreement granting registration rights to any other Person with respect to any securities of the Company. Except as provided in this Agreement, the Company shall not grant to any Persons the right to request the
Company to register any equity securities of the Company, or any securities convertible or exchangeable into or exercisable for such securities, without the prior written consent of the holders of a majority of the Investor Registrable Securities.

  
 Section 2. Piggyback Registrations. 
  
 (a) Right to Piggyback. Whenever the Company proposes to register any
of its securities (including any proposed registration of the Company’s securities by any third party) under the Securities Act (other than pursuant to a Demand Registration or any effected pursuant to Form S-4, S-8 or any successor forms and
other than a registration relating solely to the sale of securities to participants in a Company plan, a registration relating to a reorganization of the Company or other transaction under Rule 145 of the Act, a registration on any form that does
not include substantially the same information as would be required to be included in a registration statement covering the sale of the Registrable Securities, or a registration in which the only securities being registered are Common Stock issuable
upon conversion of debt securities that are also being registered) and the registration form to be used may be used for the registration of any Registrable Securities (a “Piggyback Registration”), whether or not for sale for its own
account, the Company shall give prompt written notice to all holders of Registrable Securities of its intention to effect such a registration and, subject to the terms of Section 2(c) and 2(d) hereof, shall include in such registration
all Registrable Securities with respect to which the Company has received written requests for inclusion therein within 30 days after the receipt of the Company’s notice. 
  
 (b) Piggyback Expenses. The Registration Expenses of the holders of Registrable Securities shall be paid by the
Company in all Piggyback Registrations. 
  
 (c) Priority on
Primary Registration. If a Piggyback Registration is an underwritten primary registration on behalf of the Company, and the managing underwriters advise the Company in writing that in their opinion the number of securities requested to be
included in such registration exceeds the number which can be sold in such offering without adversely affecting the marketability of the offering, the Company shall include in such registration (i) first, the securities the Company proposes to sell,
(ii) second, the Registrable Securities requested to be included in such registration, pro rata among the holders of such Registrable Securities on the basis of the number of shares requested to be included therein by each such holders, and (iii)
third, (if permitted by the holders of the majority of the Investor Registrable Securities) any other securities requested to be included in such registration, pro rata among the holders of such other securities on the basis of the number of shares
requested to be included therein by each such holders. Any Persons other than holders of Registrable Securities who participate in Piggyback Registrations which are not at the Company’s expense, if any, must pay their share of the Registration
Expenses as provided in Section 5 hereof. 
  

 4. 

 (d) Priority on Secondary, Registrations. If a Piggyback Registration is an underwritten secondary
registration on behalf of holders of the Company’s securities (it being understood that secondary registration on behalf of holders of Registrable Securities are addressed in Section 1 above rather than in this Section 2(d) and
the managing underwriters advise the Company in writing that in their opinion the number of securities requested to be included in such registration exceeds the number which can be sold in such offering without adversely affecting the marketability
of the offering, the Company shall include in such registration (i) first, the Registrable Securities requested to be included in such registration and the securities requested to be included therein by the holders requesting such registration, pro
rata among all holders on the basis of the number of shares of such securities requested to be included therein by each such holder, and (ii) second, all other securities requested to be included in such registration, pro rata among all holders
thereof on the basis of the number of shares of such securities requested to be included therein by each such holder. 
  
 (e) Selection of Underwriters. If any Piggyback Registration is an underwritten offering, the Company will have the right to select the investment
banker(s) and manager(s) for the offering; provided that such selections must be approved by the holders of a majority of the Investor Registrable Securities included in such Piggyback Registration. 
  
 (f) Other Registrations. If the Company has previously filed a
registration statement with respect to Registrable Securities pursuant to Section 1 hereof or pursuant to this Section 2, and if such previous registration has not been withdrawn or abandoned, the Company shall not file or cause to be
effected any other registration of any of its equity securities or securities convertible or exchangeable into or exercisable for its equity securities under the Securities Act (except on Form S-8 or any successor form), whether on its own behalf or
at the request of any holder or holders of such securities, until a period of at least 90 days has elapsed from the date such previous registration became effective. 
  
 Section 3. Holdback Agreements. 
  
 (a) Notwithstanding anything contained herein to the contrary, each holder of Registrable Securities shall not effect any
public sale or distribution (including sales pursuant to Rule 144) of equity securities of the Company, or any securities, options or rights convertible into or exchangeable or exercisable for such securities, enter into a transaction which would
have the same effect, or enter into any swap, hedge or other arrangement that transfers, in whole or in part, any of the economic consequences of ownership of such securities, whether any such aforementioned transaction is to be settled by deliver
of such securities or other securities, in cash or otherwise, or publicly disclose the intention to make any such offer, sale, pledge or disposition, or to enter into any such transaction, swap, hedge or other arrangement, in each case during the
period before and after the effective time of any (x) underwritten Demand Registration (except as part of such underwritten Registration) or (y) any underwritten Piggyback Registration in which Registrable Securities are included (except as part of
such underwritten registration or pursuant to registrations on Form S-4 or Form S-8 or any successor form) that is agreed to by the underwriter managing the registered public offering and the holders of a majority of the Investor Registrable
Securities included in such registration with respect to such holder (a “Lock-Up Period”). 
  

 5. 

 (b) The Company (i) agrees not to effect any public sale or distribution of its equity securities, or any
securities convertible into or exchangeable or exercisable for such securities, during the seven days prior to and during a Lock-Up Period and (ii) shall use reasonable efforts to cause each holder of more than 1% of its equity securities, or any
securities, options or rights convertible into or exchangeable or exercisable for more than 1% of its equity securities, purchased or otherwise acquired from the Company at any time after the date of this Agreement (other than in a registered public
offering) to agree not to effect any public sale or distribution (including sales pursuant to Rule 144) of any such Securities during such Lock-Up Period (except as part of such underwritten registration, if otherwise permitted). 
  
 Section 4. Registration Procedures. Subject to the conditions set
forth herein, whenever any holder of Registrable Securities has requested that any Registrable Securities be registered pursuant to this Agreement, the Company shall use its best efforts to effect the registration and the sale of such Registrable
Securities in accordance with the intended method of disposition thereof, and pursuant thereto the Company shall as expeditiously as reasonably possible: 
  
 (a) prepare and file with the Securities and Exchange Commission a registration statement with respect to such Registrable Securities and use its best
efforts to cause such registration statement to become effective as soon as practicable (provided that before filing a registration statement or prospectus or any amendments or supplements thereto, the Company shall furnish to the counsel selected
by the holders of a majority of the Registrable Securities covered by such registration statement copies of all such documents proposed to be filed, which documents shall be subject to the review and comment of such counsel. 
  
 (b) notify in writing each holder of Registrable Securities of the
effectiveness of each registration statement filed hereunder and prepare and file with the Securities and Exchange Commission such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be
necessary to keep such registration statement effective for a period of not less than 120 days (or such greater period of time required by Section l(c), and comply with the provisions of the Securities Act with respect to the disposition of
all securities covered by such registration statement during such period in accordance with the intended methods of disposition by the sellers thereof set forth in such registration statement; 
  
 (c) furnish to each seller of Registrable Securities such number of copies of
such registration statement, each amendment and supplement thereto, the prospectus included in such registration statement (including each preliminary prospectus) and such other documents as such seller may reasonably request in order to facilitate
the disposition of the Registrable Securities owned by such seller; 
  
 (d) cause the chief executive officer and senior management of the Company to participate in any “road show” presentations to investors in connection with such registration for such period of time as is reasonably requested by the
underwriters of the holders of a majority of the Investor Registrable Securities; 
  
 (e) use its best efforts to register or qualify such Registrable Securities under such other Securities or blue sky laws of such jurisdictions as any seller (including any 

  

 6. 

 
underwriter) reasonably requests and do any and all other acts and things which may be reasonably necessary or advisable to enable such seller to consummate
the disposition in such jurisdictions of the Registrable Securities owned by such seller (provided that the Company shall not be required to (i) qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify
but for this subsection, (ii) subject itself to taxation in any such jurisdiction or (iii) consent to general service of process in any such jurisdiction); 
  
 (f) promptly notify each seller of such Registrable Securities, at any time when a prospectus relating thereto is required
to be delivered under the Securities Act, of the happening of any event as a result of which the prospectus included in such registration statement contains an untrue statement of a material fact or omits any fact necessary to make the statements
therein not misleading, and, at the request of any such seller, the Company shall prepare and furnish to such seller a reasonable number of copies of a supplement or amendment to such prospectus so that, as thereafter delivered to the purchasers of
such Registrable Securities, such prospectus shall not contain an untrue statement of a material fact or omit to state any fact necessary to make the statements therein not misleading, provided that the Company shall have the right to postpone the
preparation and filing of such supplement or amendment for a period not to exceed thirty (30) days if the Company and the holders of a majority of the Investor Registrable Securities agree that such supplement or amendment would reasonably be
expected to have a material adverse effect on any proposal or plan by the Company or any of its Subsidiaries to engage in any acquisition of assets (other than in the ordinary course of business) or any merger, consolidation, tender offer,
reorganization or similar transaction; 
  
 (g) cause all such
Registrable Securities to be listed on each securities exchange on which similar securities issued by the Company are then listed and, if not so listed, to be listed on the NASD automated quotation system and, if listed on the NASD automated
quotation system, use its best efforts to secure designation of all such Registrable Securities covered by such registration statement as a NASDAQ “national market system security” within the meaning of Rule 11Aa2-1 of the Securities and
Exchange Commission or, failing that, to secure NASDAQ authorization for such Registrable Securities and, without limiting the generality of the foregoing, to arrange for at least two market makers to register as such with respect to such
Registrable Securities with the NASD; 
  
 (h) provide a transfer
agent and registrar and a CUSIP number for all such Registrable Securities not later than the effective date of such registration statement; 
  
 (i) enter into such customary agreements (including underwriting agreements in customary form) and take all such other actions as the holders of a
majority of the Investor Registrable Securities requested to be included in such offering or the underwriters, if any, reasonably request in order to expedite or facilitate the disposition of such Registrable Securities requested to be included in
such offering (including effecting a stock split, a combination of shares, recapitalization, or reorganization); 
  
 (j) make available for inspection by any seller of Registrable Securities, any underwriter participating in any disposition pursuant to such registration
statement and any attorney, accountant or other agent retained by any such seller or underwriter, all financial and 

  

 7. 

 
other records, pertinent corporate and business documents and properties of the Company, and cause the Company’s officers, directors, employees, agents,
representatives and independent accountants to supply all information reasonably requested by any such seller, underwriter, attorney, accountant or agent in connection with such registration statement and assist and, at the request of any
participating underwriter, cause such officers or directors to participate in presentations to prospective purchasers; 
  
 (k) 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 covering the period of at least twelve months beginning with the first day of the Company’s first full calendar quarter after the effective date of the registration
statement, which earnings statement shall satisfy the provisions of Section 1l(a) of the Securities Act and Rule 158 thereunder; 
  
 (l) permit any holder of Registrable Securities which holder, in its reasonable judgment, might be deemed to be an underwriter or a controlling person of
the Company, to participate in the preparation of such registration or comparable statement and to require the insertion therein of material furnished to the Company in writing, which in the reasonable judgment of such holder and its counsel and the
Company and its counsel should be included; 
  
 (m) in the event
of the issuance of any stop order suspending the effectiveness of a registration statement, or of any order suspending or preventing the use of any related prospectus or suspending the qualification of any equity securities included in such
registration statement for sale in any jurisdiction, the Company shall use its best efforts promptly to obtain the withdrawal of such order; 
  
 (n) use its best efforts 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; 
  
 (o) obtain one or more comfort letters from the Company’s independent public accountants in customary form, addressed to the underwriters in an
underwritten public offering and to the holders of Investor Registrable Securities (if participating in such registration) and covering such matters of the type customarily covered by comfort letters as the holders of a majority of the Registrable
Securities being sold reasonably request (provided that such Registrable Securities constitute at least 10% of the securities covered by such registration statement); 
  
 (p) provide a legal opinion of the Company’s outside counsel, dated the effective date of such registration statement
(or, if such registration includes an underwritten public offering, dated the date of the closing under the underwriting agreement and addressed to the underwriters and to the holders of the Investor Registrable Securities (if participating in such
registration)), with respect to the registration statement, each amendment and supplement thereto, the prospectus included therein (including the preliminary prospectus) and such other documents relating thereto in customary form and covering such
matters of the type customarily covered by legal opinions of such nature; and 
  

 8. 

 (q) use best efforts to cause certificates for the Registrable Securities covered by such registration
statement to be delivered by the holders thereof to the underwriters in such denominations and registered in such names as the underwriters may request. 
  
 The Company may require each seller of Registrable Securities as to which any registration is being effected to furnish 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. 
  
 Upon receipt of any notice from the Company of the existence of any event of the kind described in Section 4(f) or 4(m) above, each seller
of Registrable Securities shall immediately discontinue disposition of Registrable Securities pursuant to the registration statement until the registration has been supplemented or amended in accordance with Section 4(f) or until withdrawal
of the stop order referred to in Section 4(m). 
  
 Section
5. Registration Expense. 
  
 (a) All expenses incident to
the Company’s performance of or compliance with this Agreement, including without limitation all registration and filing fees, fees and expenses of compliance with Securities or blue sky laws, printing expenses, travel expenses, filing
expenses, messenger and delivery expenses, fees and disbursements of custodians, and fees and disbursements of counsel for the Company (including fees and disbursements of counsel for the Company in its capacity as counsel to the holders
participating in the registration; if Company counsel does not make itself available for this purpose or if the holders of a majority of Registrable Securities otherwise decide, the Company will pay the reasonable fees and disbursements of one
counsel for such holders) and all independent certified public accountants, underwriters (excluding discounts and commissions) and other Persons retained by the Company or the holders of a majority of the Investor Registrable Securities or their
affiliates (all such expenses being herein called “Registration Expenses”), shall be borne by the Company and the Company shall pay its internal expenses (including, without limitation, all salaries and expenses of its officers and
employees performing legal or accounting duties), the expense of any annual audit or quarterly review, the expense of any liability insurance and the expenses and fees for listing the securities to be registered on each securities exchange on which
similar securities issued by the Company are then listed or on the NASD automated quotation system (or any successor or similar system). Notwithstanding the foregoing, the Company shall not be required to pay for any expenses of any registration
proceeding begun pursuant to Section l(b) or 1(c) if the registration request is subsequently withdrawn at the request of the holder or holders of a majority of the Registrable Securities to be registered (in which case all
participating holders shall bear such expenses pro rata based upon the number of Registrable Securities that were to be registered in the withdrawn registration), unless, in the case of a registration requested under Section l(b), the Holders
of a majority of the Investor Registrable Securities agree to forfeit their right to one demand registration pursuant to Section 1(b). 
  
 (b) To the extent Registration Expenses are not required to be paid by the Company, each holder of securities included in any registration hereunder that
is otherwise not reimbursed pursuant to this Agreement shall pay those Registration Expenses allocable to the registration of such holder’s securities so included, and any Registration Expenses not so allocable shall be borne by all sellers of
Securities included in such registration in proportion to the aggregate selling price of the securities to be so registered. 
  

 9. 

 Section 6. Indemnification. 
  
 (a) The Company agrees to indemnify and hold harmless, to the full extent permitted by law, each holder of Registrable
Securities, such holder’s officers, directors, agents, partners, members, stockholders and employees and each Person who controls such holder (within the meaning of the Securities Act) against all losses, claims, damages, liabilities and
expenses caused by or arising out of (i) any untrue or alleged untrue statement of material fact contained in (A) any registration statement, prospectus or preliminary prospectus or any amendment thereof or supplement thereto or (B) in any
application or other document or communication (in this Section 6 collectively called an “application”) executed by or on behalf of the Company or based upon written information furnished by or on behalf of the Company filed
in any jurisdiction in order to qualify any securities covered by such registration statement under the “blue sky” or securities law thereof, or (ii) any omission or alleged omission of a material that required to be stated therein or
necessary to make the statements therein not misleading, except insofar as the same are caused by or contained in any information furnished in writing to the Company by such holder expressly for use therein or by such holder’s failure to
deliver a copy of the registration statement or prospectus or any amendments or supplements thereto after the Company has furnished such holder with a sufficient number of copies of the same. In connection with an underwritten offering, the Company
shall indemnify such underwriters, their officers and directors and each Person who controls such underwriters (within the meaning of the Securities Act) to the same extent as provided above with respect to the indemnification of the holders of
Registrable Securities. 
  
 (b) In connection with any
registration statement in which a holder of Registrable Securities is participating, each such holder shall furnish to the Company in writing such information and affidavits as the Company reasonably requests (and is customarily provided by selling
security holders and relates to holders of Registrable Securities) for use in connection with any such registration statement or prospectus and, to the full extent permitted by law, shall indemnify and hold harmless the other holders of Registrable
Securities, the underwriters, and the Company, and their respective directors, officers, agents, employees, legal counsel and accountants, and each other Person who controls the underwriters, the Company and such other holders (within the meaning of
the Securities Act) against any losses, claims, damages, liabilities and expenses caused by or arising out of (i) any untrue or alleged untrue statement of material fact contained in the registration statement, prospectus or preliminary prospectus
or any amendment thereof or supplement thereto or any application or (ii) any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, but only to the extent that such
untrue statement or omission is made in reliance upon or contained in any information or affidavit so furnished in writing by such holder; provided that the obligation to indemnify shall be individual, not joint and several, for each holder
and such obligations, together with any contribution required under Section 6(f), shall be limited to the net amount of proceeds received by such holder from the sale of Registrable Securities pursuant to such registration statement.

  

 10. 

 (c) Any Person entitled to indemnification hereunder shall (i) give prompt written notice to the
indemnifying party of any claim with respect to which it seeks indemnification (provided that the failure to give prompt notice shall not impair any Person’s right to indemnification hereunder to the extent such failure has not
materially prejudiced the indemnifying party) and (ii) unless in such indemnified party’s reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist with respect to such claim, permit such
indemnifying party to assume the defense at its own expense of such claim with counsel reasonably satisfactory to the indemnified party and the indemnified party shall have the right to employ separate counsel and participate in the defense of the
claim at its own expense. If such defense is assumed, the indemnifying party shall not be subject to any liability for any settlement made by the indemnified party without its consent (but such consent shall not be unreasonably withheld). An
indemnifying party who is not entitled to, or elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such
claim, unless in the reasonable judgment of any indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such claim. 
  
 (d) The indemnification provided for under this Agreement shall remain in
full force and effect regardless of any investigation made by or on behalf of the indemnified party or any officer, director, legal counsel, accountant, agent or controlling Person of such indemnified party and shall survive the transfer of
securities. The Company also agrees to make such provisions, as are reasonably requested by any indemnified party, for contribution to such party in the event the Company’s indemnification is unavailable for any reason. 
  
 (e) No indemnifying party shall, without the written consent of each
indemnified party, effect the settlement or compromise of, or consent to the entry of any judgment with respect to, any pending or threatened action or claim in respect of which indemnification or contribution may be sought hereunder (whether or not
the indemnified party is an actual or potentia1 party to such action or claim) unless such settlement, compromise, or judgment (A) includes an unconditional release of the indemnified party from all liability arising out of such action or claim
without any payment or consideration provided or obligation incurred by any indemnified party and (B) does not include a statement as to or an admission of fault, culpability, or a failure to act, by or on behalf of any indemnified party.

  
 (f) If the indemnification provided for in this Section
6 is unavailable to or is insufficient to hold harmless an indemnified party under the provisions above in respect to any losses, claims, damages, or liabilities referred to therein, then each indemnifying party shall contribute to the amount
paid or payable by such indemnified party as a result of such losses, claims, damages, or liabilities (i) in such proportion as is appropriate to reflect the relative fault of the Company on the one hand and the sellers of Registrable Securities and
any other sellers participating in the registration statement on the other hand or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative fault
referred to in clause (i) above, but also the relative benefit of the Company on the one hand and of the sellers of Registrable Securities and any other sellers participating in the registration statement on the other in connection with the
registration statement or omissions which resulted in such losses, claims, damages, or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company on 

  

 11. 

 
the one hand and the sellers of Registrable Securities and any other sellers participating in the registration statement on the other hand shall be deemed to
be in the same proportion as the total net proceeds from the offering (before deducting expenses) to the Company bear to the total net proceeds from the offering (before deducting expenses) to the sellers of Registrable Securities and any other
sellers participating in the registration statement. The relative fault of the Company on the one hand and of the sellers of Registrable Securities and any other sellers participating in the registration statement on the other hand shall be
determined by reference to, among other things, whether the untrue or alleged omission to state a material fact relates to information supplied by the Company or by the sellers of Registrable Securities or other sellers participating in the
registration statement and the parties relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission. 
  
 The Company and the sellers of Registrable Securities agree that it would not be just and equitable if contribution pursuant to this Section 6 were
determined by pro rata allocation (even if the sellers of Registrable Securities were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to in the
immediately preceding Section. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, and liabilities referred to in the immediately preceding subsection shall be deemed to include, subject to the limitations
set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 6, no seller of Registrable
Securities shall be required to contribute pursuant to this Section 6(f), together with amounts paid under Section 6(b), any amounts in excess of the net proceeds received by such seller from the sale of Registrable Securities covered
by the registration statement filed pursuant hereto. No person guilty of fraudulent misrepresentation (within the meaning of Section 1l(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. 
  
 (g) The indemnification and
contribution by any such party provided for under this Agreement shall be in addition to any other rights to indemnification or contribution which any indemnified party may have pursuant to law or contract and will remain in full force and effect
regardless of any investigation made or omitted by or on behalf of the indemnified party or any officer, director, or controlling Person of such indemnified party and will survive the transfer of securities. 
  
 (h) The indemnification and contribution required by this Section 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 stability is incurred. 
  
 Section 7. Participation in Underwritten Registration. No Person may
directly or indirectly participate in any registration hereunder which is underwritten unless such Person (i) agrees to sell such Person’s securities on the basis provided in any underwriting arrangements approved by the Person or Persons
entitled hereunder to approve such arrangements (including, without limitation, pursuant to the terms of any over-allotment or “green shoe” option requested by the managing underwriter(s), provided that no holder of Registrable Securities
will be required to sell more than the number of Registrable Securities that such holder has requested the Company to include in any registration), and (ii) completes and executes all questionnaires, 

  

 12. 

 
powers of attorney, indemnities, underwriting agreements and other documents required under the terms of such underwriting arrangements, provided that no
holder of Registrable Securities included in any underwritten registration shall be required to make any representations or warranties to the Company of the underwriters (other than representations and warranties regarding such holder and such
holder’s intended method of distribution) or to undertake any indemnification obligations to the Company or the underwriters with respect thereto, except (x) to the extent the holder or holders of a majority of Investor Registrable Securities
included in such registration are doing so or (y) as otherwise provided in Section 6 hereof. 
  
 Section 8. Definitions. 
  
 (a) Definitions. For purposes of this Agreement, the following terms have the meanings set forth below: 
  
 “Common Stock” means the Common Stock of the Company,
$0.0001 par value. 
  
 “IPO” shall mean the first
sale in a firm-commitment underwritten public offering by the Company of its Common Stock pursuant to a registration statement on Form S-1 or otherwise under the Securities Act. 
  
 “Investor Registrable Securities” means (i) any shares of Common Stock issued upon the conversion of
Preferred Stock held by the Investor, (ii) any Common Stock held by the Investor or any of its Affiliates or transferees, and (iii) any securities issued or issuable directly or indirectly with respect to the securities referred to in clauses
(i) and (ii) above including by way of dividend or split or in connection with a combination of securities, recapitalization, merger, consolidation, or other reorganization. 
  
 “Long-Form Registration” means a registration to sell Registrable Securities filed pursuant to the
Securities Act on Form S-1 or any similar long-form registration made in accordance with Section 1(a). 
  
 “Other Registrable Securities” means (i) any shares of Common Stock of the Company held by the Founders or by any other Person who is a
party to this Agreement that do not constitute Investor Registrable Securities and (ii) any shares of Common Stock of the Company issued or issuable directly or indirectly with respect to the securities referred to in clause (i) above including by
way of dividend, or split or in connection with a combination of securities, recapitalization, merger, consolidation or other reorganization, including a recapitalization or exchange. 
  
 “Person” means an individual, a partnership, a corporation, a limited liability company, an association, a
joint stock company, a trust, a joint venture, an unincorporated organization and a governmental entity or any department, agency or political subdivision thereof. 
  
 “Preferred Stock” means the Company’s Series A Convertible Preferred Stock, par value $0.001 per
share. 
  

 13. 

 “Registrable Securities” means the Investor Registrable Securities and Other Registrable
Securities. As to any particular Registrable Securities, such securities shall cease to be Registrable Securities when they have been distributed to the public pursuant to an offering registered under the Securities Act or sold to the public through
a broker, dealer or market maker in compliance with Rule 144 under the Securities Act (or any similar rule then in force), or repurchased by the Company or any Subsidiary thereof or purchased or otherwise acquired by any employee of the Company;
provided that if any Investor Registrable Securities are purchased or otherwise acquired by any employee of the Company, then such Investor Registrable Securities shall be deemed to be Other Registrable Securities. As to any particular Registrable
Securities, such securities shall cease to be Investor Registrable Securities or Other Registrable Securities when they have been distributed without consideration by a holder that is a limited liability company to its members or investment advisor,
or by a holder that is a limited partnership to its limited partners, and in connection with such distribution, such holder has notified the Company and holders of Investor Registrable Securities in writing of its election to terminate the status of
such securities as Registrable Securities and the holders of a majority of the Investor Registrable Securities approved such termination of status. For purposes of this Agreement, a Person shall be deemed to be a holder of Registrable Securities
whenever such Person has the right to acquire such Registrable Securities (upon conversion or exercise in connection with a transfer of securities or otherwise, but disregarding any restrictions or limitations upon the exercise of such right),
whether or not such acquisition has actually been effected. In addition, “Registrable Securities” shall not include any securities of the Company that are subject to vesting to the extent that such securities have not vested or which the
holder thereof has agreed with the Company not to transfer in an underwritten public offering of securities. 
  
 “Securities Act” means the Securities Act of 1933, as amended, or any similar federal law then in force. 
  
 “Short-Form Registration” means a registration to sell
Registrable Securities filed pursuant to the Securities Act on Form S-2, S-3 or any similar available short-form registration made in accordance with Section 1(a). 
  
 Section 9. Miscellaneous. 
  

(a) No Inconsistent Agreements. The Company has not entered into and shall not hereafter enter into any agreement with respect to its securities
which is inconsistent with or violates the rights granted to the holders of Registrable Securities in this Agreement. 
  
 (b) Adjustments Affecting Registrable Securities. The Company shall not knowingly take any action, or permit any change to occur, with respect to
its securities which would adversely affect the ability of the holders of Registrable Securities to include such Registrable Securities in a registration undertaken pursuant to this Agreement or which would adversely affect the marketability of such
Registrable Securities in any such registration (including, without limitation, effecting a stock split or a combination of shares). 
  
 (c) Remedies. Any Person having rights under any provision of this Agreement shall be entitled to enforce such rights specifically to recover
damages caused by 

  

 14. 

 
reason of any breach of any provision of this Agreement and to exercise all other rights granted by law. The parties hereto agree and acknowledge that money
damages may not be an adequate remedy for any breach of the provisions of this Agreement and that, in addition to any other rights and remedies existing in its favor, any party shall be entitled to specific performance and/or other injunctive relief
from any court of law or equity of competent jurisdiction (without posting any bond or other security) in order to enforce or prevent violation of the provisions of this Agreement. 
  
 (d) Amendments and Waivers. Except as otherwise provided herein, the provisions of this Agreement may be amended or
waived only upon the prior written consent of the Company and holders of a majority of the Investor Registrable Securities. 
  
 (e) Successors and Assigns. All covenants and agreements in this Agreement by or on behalf of any of the parties hereto shall bind and inure to the
benefit of the respective successors and assigns of the parties hereto whether so expressed or not. In addition, whether or not any express assignment has been made, the provisions of this Agreement which are for the benefit of purchasers or holders
of Registrable Securities are also for the benefit of, and enforceable by, any subsequent holder of Registrable Securities. 
  
 (f) Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of this
Agreement. 
  
 (g) Counterparts. This Agreement may be
executed simultaneously in two or more counterparts, any one of which need not contain the signatures of more than one party, but all such counterparts taken together shall constitute one and the same Agreement. 
  
 (h) Descriptive Headings; Interpretation; No Strict Construction. The
descriptive headings of this Agreement are inserted for convenience only and do not constitute a substantive part of this Agreement. Whenever required by the context, any pronoun used in this Agreement shall include the corresponding masculine,
feminine or neuter forms, and the singular forms of nouns, pronouns, and verbs shall include the plural and vice versa. Reference to any agreement, document, or instrument means such agreement, document, or instrument as amended or otherwise
modified from time to time in accordance with the terms thereof, and if applicable hereof. The use of the words “include” or “including” in this Agreement shall be by way of example rather than by limitation. The use of the words
“or,” “either” or “any” shall not be exclusive. The parties hereto have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises,
this Agreement shall be construed as if drafted jointly by the parties hereto, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. The parties
agree that prior drafts of this Agreement shall be deemed not to provide any evidence as to the meaning of any provision hereof or the intent of the parties hereto with respect hereto. 
  

 15. 

 (i) Governing Law. All issues and questions concerning the construction, validity, interpretation
and enforcement of this Agreement and the exhibits and schedules hereto shall be governed by, and construed in accordance with, the laws of the State of Delaware, without giving effect to any choice of law or conflict of law rules or provisions
(whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware. 
  

(j) Notices. All notices, demands or other communications to be given or delivered under or by reason of the provisions of this Agreement shall
be in writing and shall be deemed to have been given when delivered personally to the recipient, sent to the recipient by reputable overnight courier service (charges prepaid) or mailed to the recipient by certified or registered mail, return
receipt requested and postage prepaid. Such notices, demands and other communications shall be sent to each holder of Registrable Securities at the address indicated on the Schedule of Holders and to the Company at the address indicated below:

  
 Rackable Systems, Inc. 
 f/k/a Rackable Corporation 
 721 Charcot Avenue 
 San Jose, CA 95131 
 Facsimile: (408) 321-0293 
 Attention: Chief Executive Officer 
  
 or to such
other address or to the attention of such other person as the recipient party has specified by prior written notice to the sending party. 
  
 (k) WAIVER OF JURY TRIAL. EACH PARTY TO THIS AGREEMENT HEREBY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY LITIGATION IN
ANY COURT WITH RESPECT TO, IN CONNECTION WITH, OR ARISING OUT OF THIS AGREEMENT OR ANY ANCILLARY AGREEMENT OR THE VALIDITY, PROTECTION, INTERPRETATION, COLLECTION OR ENFORCEMENT THEREOF. 
  
 (l) Transfer. Except as otherwise agreed by the holder or holders of a majority of Investor Registrable Securities,
prior to transferring any Registrable Securities (other than a transfer pursuant to which such Securities cease to be Registrable Securities) to any Person, the Person transferring such Securities will cause the prospective transferee to execute and
deliver to the Company (for itself and as the agent of the other members), a counterpart to this Agreement pursuant to which the prospective transferee agrees to be bound by this Agreement to the same extent as the Person transferring such
Securities with respect to the Securities so transferred. 
  
 (m)
Entire Agreement. Except as otherwise expressly set forth herein, this agreement and the other agreements referred to herein embody the complete agreement and understanding among the parties hereto with respect to the subject matter hereof
and supersedes and preempts any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way. 
  

 16. 

 (n) Delivery by Facsimile. This Agreement and any amendments hereto, to the extent signed and
delivered by means of a facsimile machine, shall be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered
in person. At the request of any party hereto, each other party hereto shall reexecute original forms thereof and deliver them to all other parties. No party hereto shall raise the use of a facsimile machine to deliver a signature or the fact that
any signature was transmitted or communicated through the use of a facsimile machine as a defense to the formation or enforceability of a contract and each such party forever waives any such defense. 
  
 *      *      *      *      * 
  

 17. 

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

					
	 THE COMPANY:
	 	 RACKABLE SYSTEMS, INC.,

	 	 	 formerly known as Rackable Corporation

			
	 	 	 By:
	 	 /s/ Tom Barton

	 	 	 Its:
	 	 CEO

		
	 INVESTORS:
	 	 RACKABLE INVESTMENT LLC

			
	 	 	 By:
	 	 /s/ William C. Kessinger

	 	 	 Its:
	 	  

		
	 FOUNDERS:
	 	 /s/ Giovanni Coglitore

	 	 	 Giovani Coglitore

		
	 	 	 /s/ Nikolai Gallo

	 	 	 Nikolai Gallo

		
	 	 	 /s/ Jack Randall

	 	 	 Jack Randall

		
	 OTHERS
	 	 GNJ, INC.,

	 	 	 formerly known as Rackable Systems, Inc.

			
	 	 	 By:
	 	 /s/ Jack Randall

	 	 	 Its:
	 	 Secretary

  
 SIGNATURE PAGE TO
REGISTRATION AGREEMENT 

 INVESTOR REGISTRABLE SECURITIES SCHEDULE 
  
 RACKABLE INVESTMENT LLC 

 OTHER REGISTRABLE SECURITIES SCHEDULE 
  
 GNJ, Inc. (f/k/a Rackable Systems, Inc.)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00077-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00077-of-00352.parquet"}]]