Document:

Exhibit 10.4

 

FORM OF

SECURITY
AGREEMENT

 

This
SECURITY AGREEMENT (the “Agreement”) is made as of September 11, 2015, is executed by and
between __________ ___________, a corporation incorporated under the laws of the State of _________ (the
“Grantor”), and TCA GLOBAL CREDIT MASTER FUND, LP, a limited partnership organized and existing under the
laws of the Cayman Islands (the “Secured Party”).

 

WHEREAS, pursuant
to a Securities Purchase Agreement dated as of May 31, 2015 and effective as of even date herewith between Medytox Solutions, Inc.,
a corporation incorporated under the laws of the State of Nevada (the “Company”), and the Secured Party (the
“Purchase Agreement”), the Company has agreed to issue to the Secured Party and the Secured Party has agreed
to purchase from Company certain senior secured, convertible, redeemable debentures (the “Debentures”), as more
specifically set forth in the Purchase Agreement;

 

WHEREAS,
in order to induce the Secured Party to purchase the Debentures, the Grantor has agreed to execute and deliver to the Secured Party
this Agreement for the benefit of the Secured Party and to grant to Secured Party an unconditional and continuing, first priority
security interest in all of the assets and property of the Grantor to secure the prompt payment, performance and discharge in full
of all of Company’s obligations under the Debentures, the Purchase Agreement and the other Transaction Documents; and

 

WHEREAS,
the Grantor is a subsidiary of the Company and will substantially benefit from Secured Party’s purchase of the Debentures
from the Company.

 

NOW, THEREFORE,
in consideration of the mutual covenants and agreements of the parties hereinafter set forth and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties each intending to be legally bound, hereby do agree as
follows:

 

1.Recitals. The recitations set
forth in the preamble of this Agreement are true and correct and incorporated herein by this reference.

 

2.Construction
and Definition of Terms. In this Agreement, unless the express context otherwise requires: (i) the words “herein,”
“hereof’ and “hereunder” and words of similar import refer to this Agreement as a whole and not to any
particular provision of this Agreement; (ii) references to the words “Section” or “Subsection” refer to
the respective Sections and Subsections of this Agreement, and references to “Exhibit” or “Schedule” refer
to the respective Exhibits and Schedules attached hereto; (iii) wherever the word “include,” “includes”
or “including” is used in this Agreement , it will be deemed to be followed by the words “without limitation.”
All capitalized terms used in this Agreement that are defined in the Purchase Agreement or otherwise defined in Articles 8 or 9
of the Code shall have the meanings assigned to them in the Purchase Agreement or the Code, respectively and as applicable, unless
the context of this Agreement requires otherwise. In addition to the capitalized terms defined in the Code and the Purchase Agreement,
unless the context otherwise requires, when used herein, the following capitalized terms shall have the following meanings (provided
that if a capitalized term used herein is defined in the Purchase Agreement and separately defined in this Agreement, the
meaning of such term as defined in this Agreement shall control for purposes of this Agreement):

 

 

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(a)“Agreement”
means this Security Agreement and all amendments, modifications and supplements hereto.

 

(b)“Bankruptcy
Code” means the United States Bankruptcy Code, as amended from time to time, or any other similar laws, codes, rules
or regulations relating to bankruptcy, insolvency or the protection of creditors.

 

(c)“Business
Premises” shall mean the Grantor’s offices located at 7960 Central Industrial Drive #120, Riviera Beach, FL 33404.

 

(d)“Closing”
shall mean the date on which this Agreement is fully executed by both parties.

 

(e)“Code”
shall mean the Uniform Commercial Code as in effect from time to time in the State of Nevada, provided that terms used herein which
are defined in the Code as in effect in the State of Nevada on the date hereof shall continue to have the same meaning notwithstanding
any replacement or amendment of such statute, except as the Secured Party may otherwise agree.

 

(f)“Collateral”
shall mean any and all property of the Grantor, of any kind or description, tangible or intangible, real, personal or mixed, wheresoever
located and whether now existing or hereafter arising or acquired, including the following: (i) all property of, or for the account
of, the Grantor now or hereafter coming into the possession, control or custody of, or in transit to, Secured Party or any agent
or bailee for Secured Patty or any parent, affiliate or subsidiary of Secured Party or any participant with Secured Patty in the
Obligations (whether for safekeeping, deposit, collection, custody, pledge, transmission or otherwise), including all cash, earnings,
dividends, interest, or other rights in connection therewith and the products and proceeds therefrom, including the proceeds of
insurance thereon; (ii) the following additional property of the Grantor, whether now existing or hereafter arising or acquired,
and wherever now or hereafter located, together with all additions and accessions thereto, substitutions, betterments and replacements
therefor, products and Proceeds therefrom, and all of the Grantor’s books and records and recorded data relating thereto
(regardless of the medium of recording or storage), together with all of the Grantor’s right, title and interest in and
to all computer software required to utilize, create, maintain and process any such records or data on electronic media, including
all: (A) Accounts, and all goods whose sale, lease or other disposition by the Grantor has given rise to Accounts and have been
returned to, or repossessed or stopped in transit by, the Grantor, or rejected or refused by an Account debtor; (B) As-extracted
Collateral; (C) Chattel Paper (whether tangible or electronic); (D) Commodity Accounts; (E) Commodity Contracts; (F) Deposit Accounts,
including all cash and other property from time to time deposited therein and the monies and property in the possession or under
the control of the Secured Patty or any affiliate, representative, agent, designee or correspondent of the Secured Party; (G)
Documents; (H) Equipment; (I) Farm Products; (J) Fixtures; (K) General Intangibles (including all Payment Intangibles); (L) Goods,
and all accessions thereto and goods with which the Goods are commingled; (M) Health-Care Insurance Receivables; (N) Instruments;
(0) Inventory, including raw materials, work-in-process and finished goods; (P) Investment Property; (Q) Letter-of-Credit Rights;
(R) Promissory Notes; (S) Software; (T) all Supporting Obligations; (U) all commercial tort claims hereafter arising; (V) all
other tangible and intangible personal property of the Grantor (whether or not subject to the Code), including, all bank and other
accounts and all cash and all investments therein, all proceeds, products, offspring, accessions, rents, profits, income, benefits,
substitutions and replacements of and to any of the property of the Grantor described within the definition of Collateral (including,
any proceeds of insurance thereon and all causes of action, claims and warranties now or hereafter held by the Grantor in respect
of any of the items listed within the definition of Collateral), and all books, correspondence, files and other Records, including,
all tapes, desks, cards, Software, data and computer programs in the possession or under the control of the Grantor or any other
Person from time to time acting for the Grantor, in each case, to the extent of the Grantor’s rights therein, that at any
time evidence or contain information relating to any of the property described or listed within the definition of Collateral or
which are otherwise necessary or helpful in the collection or realization thereof; (W) all real property interests of the Grantor
and the interest of the Grantor in fixtures related to such real property interests; and (X) Proceeds, including all Cash Proceeds
and Noncash Proceeds, and products of any or all of the foregoing, in each case howsoever the Grantor’s interest therein
may arise or appear (whether by ownership, security interest, claim or otherwise); provided, however, Collateral shall not include
any Excluded Collateral (as defined herein).

 

(g)“Event
of Default” shall mean any of the events described in Section 4 hereof.

 

(h)“Excluded
Collateral” shall mean, collectively, any Accounts of the Company due from any federal or state government healthcare
reimbursement program including, but not limited to, the Medicare, Medicaid, and Tri-care programs.

 

(i)“Obligations”
shall have the meaning given to it in the Purchase Agreement.

 

3.Security.

 

(a)Grant
of Security Interest. As security for the full payment and performance of all of the Obligations, whether or not any instrument
or agreement relating to any Obligation specifically refers to this Agreement or the security interest created hereunder, the Grantor
hereby assigns, pledges and grants to Secured Party an unconditional, continuing, first priority security interest in all of the
Collateral. Secured Party’s security interest shall continually exist until all Obligations have been indefeasibly satisfied
and/or paid in full.

 

 

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(b)Representations,
Warranties. Covenants and Agreement of the Grantor. The Grantor covenants, warrants and represents, for the benefit of the
Secured Party, as follows:

 

(i)The
Grantor has the requisite corporate power and authority to enter into this Agreement and otherwise to carry out its obligations
hereunder. The execution, delivery and performance by the Grantor of this Agreement and the filings contemplated herein have been
duly authorized by all necessary action on the part of the Grantor and no further action is required by the Grantor. This Agreement
constitutes a legal, valid and binding obligation of the Grantor enforceable in accordance with its terms, except as enforceability
may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditor’s
rights generally.

 

(ii)The
Grantor represents and warrants that it has no place of business or offices where its respective books of account and records
are kept or places where Collateral is stored or located, except for the Business Premises.

 

(iii)The
Grantor is the sole owner of the Collateral (except for non-exclusive licenses granted by the Grantor in the Grantor’s Ordinary
Course of Business), free and clear of any and all Encumbrances. The Grantor is fully authorized to grant the security interests
in and to pledge the Collateral to Secured Party. There is not on file in any agency, land records or other office of any Governmental
Authority, an effective financing statement, security agreement, license or transfer or any notice of any of the foregoing (other
than those that have been filed in favor of the Secured Party pursuant to this Agreement) covering or affecting any of the Collateral.
So long as this Agreement shall be in effect, the Grantor shall not execute and shall not permit to be on file in any such agency,
land records or other office any such financing statement or other document or instrument (except to the extent filed or recorded
in favor of the Secured Party pursuant to the terms of this Agreement).

 

(iv)No
part of the Collateral has been judged invalid or unenforceable. No Claim, Proceeding or other notice or other similar item has
been received by the Grantor that any Collateral or the Grantor’s use of any Collateral violates the rights of any Person.
There has been no adverse decision or claim to the Grantor’s ownership rights in or exclusive rights to use the Collateral
in any jurisdiction or to the Grantor’s right to keep and maintain such Collateral in full force and effect, and there is
no Claim or Proceeding of any nature involving said rights pending or, to the best knowledge of the Grantor, threatened, before
any Governmental Authority.

 

(v)The
Grantor shall at all times maintain its books of account and records relating to the Collateral and maintain the Collateral at
the Business Premises, and the Grantor shall not relocate such books of account and records or Collateral, except and unless: (A)
Secured Party first receives notice of such relocation, which approval may be withheld in Secured Party’s sole and absolute
discretion; (B) evidence that appropriate financing statements and other necessary documents have been filed and recorded and other
steps have been taken to create in favor of the Secured Party valid, perfected and continuing liens in the Collateral; or (C) Collateral
is moved or relocated in the Grantor’s Ordinary Course of Business, provided, however, that any permanent relocation of any
of the Collateral shall require prior written notice to Secured Party in accordance with Subsection 3(b)(v)(A) above.

 

 

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(vi)Upon
making the filings described in the immediately following sentence or by possession or control of such Collateral by Secured Party
or delivery of such Collateral to Secured Party, this Agreement creates, in favor of the Secured Party, a valid, perfected, first
priority security interest in the Collateral. Except for the filing of financing statements on Form UCC-1 under the Code with the
State of Florida, no authorization or approval of, or filing with, or notice to any Governmental Authority is required either:
(A) for the grant by the Grantor of, or the effectiveness of, the security interest granted hereby or for the execution, delivery
and performance of this Agreement by the Grantor; or (B) for the perfection of or exercise by the Secured Party of its rights and
remedies hereunder.

 

(vii)Simultaneous
with the execution of this Agreement, the Grantor hereby authorizes the Secured Party to file one or more UCC financing statements,
and any continuations, amendments, or assignments thereof with respect to the security interests in the Collateral granted hereby,
with the State of Florida, and in such other jurisdictions as may be necessary.

 

(viii)The
execution, delivery and performance of this Agreement, and the granting of the security interests contemplated hereby, will not:
(A) constitute a violation of or conflict with the Articles of Incorporation, Bylaws or any other organizational or governing documents
of the Company; (B) constitute a violation of, or a default or breach under (either immediately, upon notice, upon lapse of time,
or both), or conflicts with, or gives to any other Person any rights of termination, amendment, acceleration or cancellation of,
any provision of any Contract or agreement to which Grantor is a party or by which any of the Collateral may be bound; (C) constitute
a violation of, or a default or breach under (either immediately, upon notice, upon lapse of time, or both), or conflicts with,
any Judgment of any Governmental Authority; (D) constitute a violation of, or conflict with, any Law; or (E) result in the loss
or adverse modification of, or the imposition of any fine, penalty or other Encumbrance with respect to, any Permit granted or
issued to, or otherwise held by or for the use of, the Grantor or any of the Collateral. No Consent (including from stockholders
or creditors of the Grantor) is required for the Grantor to enter into and perform its obligations hereunder.

 

(ix)The
Grantor shall at all times maintain the liens and security interests provided for hereunder as valid and perfected liens and security
interests in the Collateral in favor of the Secured Party until this Agreement and the security interests hereunder shall terminate
pursuant to Section 8(o) below. The Grantor shall at all times safeguard and protect all Collateral, at its own expense, for the
account of the Secured Party. At the request of the Secured Party, the Grantor will sign and deliver to the Secured Party at any
time, or from time to time, one or more financing statements pursuant to the Code (or any other applicable statute) in form reasonably
satisfactory to the Secured Party and will pay the cost of filing the same in all public offices wherever filing is, or is reasonably
deemed by the Secured Party to be, necessary or desirable to effect the rights and obligations provided for herein. Without limiting
the generality of the foregoing, the Grantor shall pay all fees, taxes and other amounts necessary to maintain the Collateral and
the security interests granted hereunder, and the Grantor shall obtain and furnish to the Secured Party from time to time, upon
demand, such releases and/or subordinations of claims and liens which may be required to maintain the priority of the security
interests hereunder.

 

 

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(x)Except
for purchase money, the Grantor will not transfer, pledge, hypothecate, encumber, license, sell or otherwise dispose of any of
the Collateral without the prior written consent of the Secured Party, which consent may be withheld in the Secured Party’s
sole and absolute discretion, except for transfers, sales or licenses made in the Grantor’s Ordinary Course of Business.

 

(xi)The
Grantor shall keep, maintain and preserve all of the Collateral in good condition, repair and order and the Grantor will use, operate
and maintain the Collateral in compliance with all Laws, and in compliance with all applicable insurance requirements and regulations.

 

(xii)The
Grantor shall, within five (5) days of obtaining knowledge thereof, advise the Secured Party promptly, in sufficient detail, of
any substantial or material adverse change in the Collateral, and of the occurrence of any event which would have a Material Adverse
Effect.

 

(xiii)The
Grantor shall promptly execute and deliver to the Secured Party such further deeds, mortgages, assignments, security agreements,
financing statements or other instruments, documents, certificates and assurances and take such further action as the Secured Party
may from time to time reasonably request and may in its reasonable discretion deem necessary to perfect, protect or enforce its
security interest in the Collateral, including, placing legends on Collateral or on books and records pertaining to Collateral
stating that Secured Party has a security interest therein.

 

(xiv)The
Grantor will take all steps reasonably necessary to diligently pursue and seek to preserve, enforce and collect any rights, claims,
causes of action and accounts receivable in respect of the Collateral.

 

(xv)The
Grantor shall promptly notify the Secured Party in sufficient detail upon becoming aware of any Claim, Proceeding, or any other
litigation, attachment, garnishment, execution or other legal process levied against any Collateral or of any Claim, Proceeding
or any other material litigation, attachment, garnishment, execution or other legal process which Grantor knows or has reason to
believe is pending or threatened against it or the Collateral, and of any other information received by the Grantor that may materially
and adversely affect the value of the Collateral, the security interests granted hereunder or the rights and remedies of the Secured
Party hereunder.

 

 

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(xvi)All
information heretofore, herein or hereafter supplied to the Secured Party by or on behalf of the Grantor with respect to the Collateral
is accurate and complete in all material respects as of the date furnished.

 

(xvii)Except
as otherwise disclosed to the Secured Party in writing, Grantor will promptly pay when due all Taxes and all transportation, storage,
warehousing and all other charges and fees affecting or arising out of or relating to the Collateral and shall defend the Collateral,
at Grantor’s expense, against all claims of any Persons claiming any interest in the Collateral adverse to Grantor or Secured
Party.

 

(xviii)During
normal business hours and subject to prior reasonable notice from Secured Party to the Grantor (which notice may be e-mail or telephonic
notice), Secured Party and its agents and designees may enter the Business Premises and any other premises of the Grantor and inspect
the Collateral and all books and records of the Grantor (in whatever form) up to two (2) times per year absent an Event of Default,
and the Grantor shall pay the reasonable costs of such inspections.

 

(xix)The
Grantor shall maintain comprehensive casualty insurance on the Collateral against such risks, in such amounts, with such loss deductible
amounts and with such companies as may be reasonably satisfactory to the Secured Party, and each such policy shall contain a clause
or endorsement satisfactory to Secured Party naming Secured Party as loss payee and a clause or endorsement satisfactory to Secured
Party that such policy may not be canceled or altered and Secured Party may not be removed as loss payee without at least thirty
(30) days prior written notice to Secured Party. In all events, the amounts of such insurance coverages shall conform to prudent
business practices and shall be in such minimum amounts that Grantor will not be deemed a co-insurer under applicable insurance
laws, policies or practices. Upon the occurrence and continuation of an Event of Default, the Grantor hereby assigns to Secured
Party and grants to Secured Party a security interest in any and all proceeds of such policies and authorizes and empowers Secured
Party to adjust or compromise any loss under such policies and to collect and receive all such proceeds. Upon the occurrence and
continuation of an Event of Default, the Grantor hereby authorizes and directs each insurance company to pay all such proceeds
directly and solely to Secured Party and not to the Grantor and Secured Party jointly. Upon the occurrence and continuation of
an Event of Default, the Grantor authorizes and empowers Secured Party to execute and endorse in Grantor’s name all proofs
of loss, drafts, checks and any other documents or instruments necessary to accomplish such collection, and any persons making
payments to Secured Party under the terms of this subsection are hereby relieved absolutely from any obligation or responsibility
to see to the application of any sums so paid. After deduction from any such proceeds of all costs and expenses (including attorney’s
fees) incurred by Secured Party in the collection and handling of such proceeds, the net proceeds shall be applied as follows:
if no Event of Default shall have occurred and be continuing, such net proceeds may be applied, at Grantor’s option, either
toward replacing or restoring the Collateral, in a manner and on terms satisfactory to Secured Party, or as a credit against such
of the Obligations, whether matured or unmatured, as Company shall determine. In the event that Grantor may and does elect to replace
or restore any of the Collateral as aforesaid, then such net proceeds shall be deposited in a segregated account opened in the
name and for the benefit of Secured Party, and such net proceeds shall be disbursed therefrom by Secured Party in such manner and
at such times as Secured Party deems appropriate to complete and insure such replacement or restoration; provided, however, that
if an Event of Default shall occur and be continuing at any time before or after replacement or restoration has commenced, then
thereupon Secured Party shall have the option to apply all remaining net proceeds either toward replacing or restoring the Collateral,
in a manner and on terms satisfactory to Secured Party, or as a credit against such of the Obligations, whether matured or unmatured,
as Secured Party shall determine in Secured Party’s sole discretion. If an Event of Default shall have occurred and be continuing
prior to such deposit of the net proceeds, then Secured Party may, in its sole discretion, apply such net proceeds either toward
replacing or restoring the Collateral, in a manner and on terms satisfactory to Secured Party, or as a credit against such of the
Obligations, whether matured or unmatured, as Secured Party shall determine in Secured Party’s sole discretion.

 

 

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(xx)The
Grantor shall cooperate with Secured Party to obtain and keep in effect one or more control agreements in Deposit Accounts, Electronic
Chattel Paper, Investment Property and Letter-of-Credit Rights Collateral. In addition, the Grantor, at the Grantor’s expense,
shall promptly: (A) execute all notices of security interest for each relevant type of Software and other General Intangibles in
forms suitable for filing with any United States or foreign office handling the registration or filing of patents, trademarks,
copyrights and other intellectual property and any successor office or agency thereto; and (B) take all commercially reasonable
steps in any Proceeding before any such office or any similar office or agency in any other country or any political subdivision
thereof, to diligently prosecute or maintain, as applicable, each application and registration of any Software, General Intangibles
or any other intellectual property rights and assets that are part of the Collateral, including filing of renewals, affidavits
of use, affidavits of incontestability and opposition, interference and cancellation proceedings.

 

(xxi)Grantor
shall not file any amendments, correction statements or termination statements concerning the Collateral without the prior written
consent of Secured Party while the Obligations are outstanding.

 

(c)Collateral
Collections. While an Event of Default shall have occurred and be continuing, Secured Party shall have the right at any and
all times to enforce the Grantor’s rights against all Persons obligated on any of the Collateral, including the right to:
(i) notify and/or require the Grantor to notify any or all Persons obligated on any of the Collateral to make payments directly
to Secured Party or in care of a post office lock box under the sole control of Secured Party established at Grantor’s expense,
and to take any or all action with respect to Collateral as Secured Party shall determine in its sole discretion, including, the
right to demand, collect, sue for and receive any money or property at any time due, payable or receivable on account thereof,
compromise and settle with any Person liable thereon, and extend the time of payment or otherwise change the terms thereof, without
incurring any liability or responsibility to the Grantor whatsoever; and/or (ii) require the Grantor to segregate and hold in trust
for Secured Party and, on the day of Grantor’s receipt thereof, transmit to Secured Party in the exact form received by the
Grantor (except for such assignments and endorsements as may be required by Secured Party), all cash, checks, drafts, money orders
and other items of payment constituting any portion of the Collateral or proceeds of the Collateral. Secured Party’s collection
and enforcement of Collateral against Persons obligated thereon shall be deemed to be commercially reasonable if Secured Party
exercises the care and follows the procedures that Secured Party generally applies to the collection of obligations owed to Secured
Party.

 

 

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(d)Care
of Collateral. Except for Collateral in control or possession of the Secured Party, Grantor shall have all risk of loss of
the Collateral. Except for Collateral in control or possession of the Secured Party, the Secured Party shall have no liability
or duty, either before or after the occurrence of an Event of Default, on account of loss of or damage to, to collect or enforce
any of its rights against, the Collateral, to collect any income accruing on the Collateral, or to preserve rights against Persons
with prior interests in the Collateral. If Secured Party actually receives any notices requiring action with respect to Collateral
in Secured Party’s possession, Secured Party shall take reasonable steps to forward such notices to the Grantor. The Grantor
is responsible for responding to notices concerning the Collateral, voting the Collateral, and exercising rights and options, calls
and conversions of the Collateral. Secured Party’s reasonable responsibility is to take such action as is reasonably requested
by Grantor in writing, however, Secured Party is not responsible to take any action that, in Secured Party’s reasonable judgment,
would affect the value of the Collateral as security for the Obligations adversely. While Secured Party is not required to take
certain actions, if action is needed, in Secured Party’s reasonable discretion, to preserve and maintain the Collateral,
Grantor authorizes Secured Party to take such actions, but Secured Party is not obligated to do so.

 

4.Events
of Default. The occurrence of any one or more of the acts constituting an “Event of Default” as described
in Section 3.01 of the Debenture.

 

5.Rights
and Remedies.

 

(a)Rights
and Remedies of Secured Party. Upon and while an Event of Default is continuing, Secured Party may, without notice or demand,
exercise in any jurisdiction in which enforcement hereof is sought, the following rights and remedies, in addition to the rights
and remedies available to Secured Party under the Purchase Agreement and any other Transaction Documents, the rights and remedies
of a secured party under the Code, and all other rights and remedies available to Secured Party under applicable law or in equity,
all such rights and remedies being cumulative and enforceable alternatively, successively or concurrently:

 

(i)Take
absolute control of the Collateral including transferring into the Secured Party’s name or into the name of its nominee or
nominees (to the extent the Secured Party has not theretofore done so) and thereafter receive, for the benefit of the Secured Party,
all payments made thereon, give all consents, waivers and ratifications in respect thereof and otherwise act with respect thereto
as though it were the outright owner thereof;

 

 

 

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(ii)
Require the Grantor to, and the Grantor hereby agrees that it will at its expense and upon request of the Secured Party forthwith,
assemble all or part of the Collateral as directed by the Secured Party and make it available to the Secured Party at a place
or places to be designated by the Secured Party that is convenient to Secured Party, and the Secured Party may enter into and
occupy the Business Premises or any other premises owned or leased by the Grantor where the Collateral or any part thereof is
located or assembled in order to effectuate the Secured Party’s rights and remedies hereunder or under law without a breach
of peace, including removing such Collateral therefrom, without any obligation or liability to the Grantor in respect of such
occupation, the Grantor HEREBY WAIVING ANY AND ALL RIGHTS TO PRIOR NOTICE AND TO JUDICIAL HEARING WITH RESPECT TO REPOSSESSION
OF COLLATERAL AND THE GRANTOR HEREBY GRANTING TO SECURED PARTY AND ITS AGENTS AND REPRESENTATIVES FULL AUTHORITY TO ENTER SUCH
PREMISES;

 

(iii)Without notice, except as specified below, and without any obligation to prepare or process the Collateral for
sale: (A) sell the Collateral or any part thereof in one or more parcels at public or private sale, at any of the Secured Party’s
offices or elsewhere, for cash, on credit or for future delivery, and at such price or prices and upon such other terms as shall
be commercially reasonable; and/or (B) lease, license or dispose of the Collateral or any part thereof upon such terms as shall
be commercially reasonable. The Grantor agrees that, to the extent notice of sale or any other disposition of the Collateral shall
be required by law, at least ten (10) days’ notice to the Grantor of the time and place of any public sale or the time after
which any private sale or other disposition of the Collateral is to be made shall constitute reasonable notification. The Secured
Party shall not be obligated to make any sale or other disposition of any Collateral regardless of notice of sale having been
given. The Secured Party may adjourn any public or private sale from time to time by announcement at the time and place fixed
therefor and such sale may, without further notice, be made at the time and place to which it was so adjourned. The Grantor hereby
waives any claims and actions against the Secured Party arising by reason of the fact that the price at which any of the Collateral
may have been sold at a private sale was less than the price which might have been obtained at a public sale or was less than
the aggregate amount of the Obligations, even if the Secured Party accepts the first offer received and does not offer such Collateral
to more than one offeree, and waives all rights that the Grantor may have to require that all or any part of such Collateral be
marshaled upon any sale (public or private) thereof. The Grantor hereby acknowledges that: (X) any such sale of the Collateral
by the Secured Party shall be made without warranty; (Y) the Secured Party may specifically disclaim any warranties of title,
possession, quiet enjoyment or the like; and (Z) such actions set forth in clauses (X) and (Y) above shall not adversely affect
the commercial reasonableness of any such sale of Collateral. In addition to the foregoing: (1) upon written notice to the Grantor
from the Secured Party after and during the continuance of an Event of Default, the Grantor shall cease any use of any intellectual
property or any trademark, patent or copyright similar thereto for any purpose described in such notice; (2) the Secured Party
may, at any time and from time to time after and during the continuance of an Event of Default, license, whether general, special
or otherwise, and whether on an exclusive or non-exclusive basis, any of the Grantor’s intellectual property, throughout
the universe for such term or terms, on such conditions, and in such manner, as the Secured Party shall in its sole discretion
determine; and (3) the Secured Party may, at any time, pursuant to the authority granted under this Agreement (such authority
being effective upon the occurrence and during the continuance of an Event of Default), execute and deliver on behalf of the Grantor,
one or more instruments of assignment of any intellectual property (or any application or registration thereof), in form suitable
for filing, recording or registration in any country.

 

 

 

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(iv)Operate, manage
and control the Collateral (including use of the Collateral and any other property or assets of Grantor in order to continue or
complete performance of Grantor’s obligations under any contracts of Grantor), or permit the Collateral or any portion thereof
to remain idle or store the same, and collect all rents and revenues therefrom.

 

(v)Enforce the
Grantor’s rights against any Persons obligated upon any of the Collateral.

 

(vi)The
Grantor hereby acknowledges that if the Secured Party complies with any applicable foreign, state, provincial or federal law requirements
in connection with a disposition of the Collateral, such compliance will not adversely affect the commercial reasonableness of
any sale or other disposition of the Collateral.

 

(vii)The Secured Party shall not be required
to marshal any present or future collateral security (including, this Agreement and the Collateral) for, or other assurances of
payment of, the Obligations or any of them or to resort to such collateral security or other assurances of payment in any particular
order, and all of the Secured Party’s rights hereunder and in respect of such collateral security and other assurances of
payment shall be cumulative and in addition to all other rights, however existing or arising. To the extent that the Grantor lawfully
may, the Grantor hereby agrees that it will not invoke any law relating to the marshaling of collateral which might cause delay
in or impede the enforcement of the Secured Party’s rights under this Agreement or under any other instrument creating or
evidencing any of the Obligations or under which any of the Obligations is outstanding or by which any of the Obligations is secured
or payment thereof is otherwise assured, and, to the extent that it lawfully may, the Grantor hereby irrevocably waives the benefits
of all such laws.

 

(b)Power
of Attorney. Effective while an Event of Default is continuing, Grantor hereby designates and appoints Secured Party and its
designees as attorney-in-fact of and for the Grantor, irrevocably and with full power of substitution, with authority to endorse
the Grantor’s name on any notes, acceptances, checks, drafts, money orders, instruments or other evidences of payment or
proceeds of the Collateral that may come into Secured Party’s possession; to execute proofs of claim and loss; to adjust
and compromise any claims under insurance policies; and to perform all other acts necessary and advisable, in Secured Party’s
sole discretion, to carry out and enforce this Agreement and the rights and remedies conferred upon the Secured Party by this Agreement,
the Purchase Agreement or any other Transaction Documents. All acts of said attorney or designee are hereby ratified and approved
by the Grantor and said attorney or designee shall not be liable for any acts of commission or omission, nor for any error of judgment
or mistake of fact or law except for gross negligence and willful misconduct. This power of attorney is coupled with an interest
and is irrevocable so long as any of the Obligations remain unpaid or unperformed or there exists any commitment by Secured Party
which could give rise to any Obligations.

 

 

    	 	10	 

     

    

 

(c)Costs
and Expenses. The Grantor agrees to pay to the Secured Party, upon demand, the amount of any and all costs and expenses, including
the reasonable fees, costs, expenses and disbursements of counsel for the Secured Party and of any experts and agents, which the
Secured Party may incur in connection with: (i) the preparation, negotiation, execution, delivery, recordation, amendment, waiver
or other modification or termination of this Agreement; (ii) the custody, preservation, use or operation of, or the sale of, collection
from, or other realization upon, any Collateral; (iii) the exercise or enforcement of any of the rights of the Secured Party hereunder;
or (iv) the failure by the Grantor to perform or observe any of the provisions hereof. Included in the foregoing shall be the amount
of all expenses paid or incurred by Secured Party in consulting with counsel concerning any of its rights hereunder, under the
Purchase Agreement or under applicable law, as well as such portion of Secured Party’s overhead as Secured Party shall allocate
to collection and enforcement of the Obligations in Secured Party’s sole but reasonable discretion. All such costs and expenses
shall bear interest from the date of outlay until paid, at the highest rate set forth in the Debenture, or if none is so stated,
the highest rate allowed by law. The provisions of this Subsection shall survive the termination of this Agreement and Secured
Party’s security interest hereunder and the payment of all Obligations.

 

6.Security
Interest Absolute. All rights of the Secured Party and all Obligations of the Grantor hereunder, shall be absolute and unconditional,
irrespective of: (i) any lack of validity or enforceability of this Agreement, the Purchase Agreement, and any other Transaction
Documents or any agreement entered into in connection with the foregoing, or any portion hereof or thereof; (ii) any change in
the time, manner or place of payment or performance of, or in any other term of, all or any of the Obligations, or any other amendment
or waiver of or any consent to any departure from the terms and provisions of the Purchase Agreement, any other Transaction Documents,
or any other agreement entered into in connection with the foregoing; (iii) any exchange, release or non-perfection of any of the
Collateral, or any release or amendment or waiver of or consent to departure from any other collateral for, or any guaranty, or
any other security, for all or any of the Obligations; (iv) any action by the Secured Party to obtain, adjust, settle and cancel
in its sole discretion any insurance claims or matters made or arising in connection with the Collateral; or (v) except for payment
and performance, any other circumstance which might otherwise constitute any legal or equitable defense available to the Grantor,
or a discharge of all or any part of the security interests granted hereby. Until the Obligations shall have been paid and performed
in full, the rights of the Secured Party shall continue even if the Obligations are barred for any reason, including, the running
of the statute of limitations or bankruptcy. In the event that at any time any transfer of any Collateral or any payment received
by the Secured Party hereunder shall be deemed by final order of a court of competent jurisdiction to have been a voidable preference
or fraudulent conveyance under the Bankruptcy Code or any other similar insolvency or bankruptcy laws of any jurisdiction , or
shall be deemed to be otherwise due to any party other than the Secured Party, then, in any such event, the Grantor’s obligations
hereunder shall survive cancellation of this Agreement, and shall not be discharged or satisfied by any prior payment thereof and/or
cancellation of this Agreement, but shall remain a valid and binding obligation enforceable in accordance with the terms and provisions
hereof. The Grantor waives all right to require the Secured Party to proceed against any other Person or to apply any Collateral
which the Secured Party may hold at any time, or to pursue any other remedy. The Grantor waives any defense arising by reason of
the application of the statute of limitations to any obligation secured hereby.

 

 

    	 	11	 

     

    

 

7.Indemnity.
The Grantor agrees to defend, protect, indemnify and hold the Secured Party forever harmless from and against any and all Claims
of any nature or kind (including reasonable legal fees, costs, expenses, and disbursements of counsel) to the extent that they
arise out of, or otherwise result from, this Agreement (including, enforcement of this Agreement) except for gross negligence and
willful misconduct. This indemnity shall survive termination of this Agreement.

 

8.Miscellaneous.

 

(a)Performance
for Grantor. The Grantor agrees and hereby authorizes that Secured Party may, in Secured Party’s sole discretion, but
Secured Party shall not be obligated to, whether or not an Event of Default shall have occurred, advance funds on behalf of the
Grantor , with prior notice to the Grantor and right to cure or contest, in order to insure the Grantor’s compliance with
any covenant, warranty , representation or agreement of the Grantor made in or pursuant to this Agreement, the Purchase Agreement,
or any other Transaction Documents, to continue or complete, or cause to be continued or completed, performance of the Grantor’s
obligations under any Contracts of the Grantor, or to preserve or protect any right or interest of Secured Party in the Collateral
or under or pursuant to this Agreement, the Purchase Agreement or any other Transaction Documents, including, the payment of any
insurance premiums or taxes and the satisfaction or discharge of any Claim, Obligation, Judgment or any other Encumbrance upon
the Collateral or other property or Assets of Grantor; provided, however, that the making of any such advance by Secured Party
shall not constitute a waiver by Secured Party of any Event of Default with respect to which such advance is made, nor relieve
the Grantor of any such Event of Default. The Grantor shall pay to Secured Party upon demand all such advances made by Secured
Party with interest thereon at the highest rate set forth in the Debenture, or if none is so stated, the highest rate allowed by
law. All such advances shall be deemed to be included in the Obligations and secured by the security interest granted Secured Party
hereunder; provided, however, that the provisions of this Subsection shall survive the termination of this Agreement and Secured
Party’s security interest hereunder and the payment of all other Obligations.

 

 

    	 	12	 

     

    

 

(b)Applications
of Payments and Collateral. Except as may be otherwise specifically provided in this Agreement or the Purchase Agreement, while
an Event of Default is continuing, all Collateral and proceeds of Collateral coming into Secured Party’s possession and all
payments made by any Person to Secured Party with respect to any Collateral may be applied by Secured Party (after payment of any
amounts payable to the Secured Party pursuant to Section 5(c) hereof) to any of the Obligations, whether matured or unmatured,
as Secured Party shall determine in its sole, but reasonable discretion. Any surplus held by the Secured Party and remaining after
the indefeasible payment in full in cash of all of the Obligations shall be paid over to whomsoever shall be lawfully entitled
to receive the same or as a court of competent jurisdiction shall direct. Secured Party may defer the application of Noncash Proceeds
of Collateral, to the Obligations until Cash Proceeds are actually received by Secured Party. In the event that the proceeds of
any such sale, collection or realization are insufficient to pay all amounts to which the Secured Party is legally entitled, the
Grantor shall be liable for the deficiency, together with interest thereon at the highest rate specified in the Debenture for interest
on overdue principal thereof or such other rate as shall be fixed by applicable law, together with the costs of collection and
the reasonable fees, costs, expenses and other client charges of any attorneys employed by the Secured Party to collect such deficiency.

 

(c)Waivers
by Grantor. The Grantor hereby waives, to the extent the same may be waived under applicable law: (i) notice of acceptance
of this Agreement; (ii) all claims and rights of the Grantor against Secured Party on account of actions taken or not taken by
Secured Party in the exercise of Secured Party’s rights or remedies hereunder, under the Purchase Agreement, and other Transaction
Documents or under applicable law; (iii) all claims of the Grantor for failure of Secured Party to comply with any requirement
of applicable law relating to enforcement of Secured Party’s rights or remedies hereunder, under the Purchase Agreement,
under any other Transaction Documents or under applicable law; (iv) all rights of redemption of the Grantor with respect to the
Collateral; (v) in the event Secured Party seeks to repossess any or all of the Collateral by judicial proceedings, any bond(s)
or demand(s) for possession which otherwise may be necessary or required; (vi) presentment, demand for payment, protest and notice
of non-payment and all exemptions applicable to any of the Collateral or the Grantor; (vii) any and all other notices or demands
which by applicable law must be given to or made upon the Grantor by Secured Party; (viii) settlement, compromise or release of
the obligations of any Person primarily or secondarily liable upon any of the Obligations; (ix) all rights of the Grantor to demand
that Secured Party release account debtors or other Persons liable on any of the Collateral from further obligation to Secured
Party; and (x) substitution, impairment, exchange or release of any Collateral for any of the Obligations. The Grantor agrees that
Secured Party may exercise any or all of its rights and/or remedies hereunder, under the Purchase Agreement, the other Transaction
Documents and under applicable law without resorting to and without regard to any Collateral or sources of liability with respect
to any of the Obligations. Upon termination of this Agreement and Secured Party’s security interest hereunder and payment
of all Obligations, within ten (10) Business Days following the Grantor’s request to Secured Party, Secured Party shall release
control of any security interest in the Collateral perfected by control and Secured Party shall send Grantor a statement terminating
any financing statement filed against the Collateral.

 

(d)Waivers
by Secured Party. No failure or any delay on the part of Secured Party in exercising any right, power or remedy hereunder,
under this Agreement, the Purchase Agreement, and other Transaction Documents or under applicable law, shall operate as a waiver
thereof.

 

 

    	 	13	 

     

    

 

(e)Secured
Party’s Setoff. Secured Party shall have the right, in addition to all other rights and remedies available to it, following
an Event of Default, to set off against any Obligations due Secured Party, any debt owing to the Grantor by Secured Party.

 

(f) Modifications,
Waivers and Consents. No modifications or waiver of any provision of this Agreement, the Purchase Agreement, or any other Transaction
Documents, and no consent by Secured Party to any departure by the Grantor therefrom, shall in any event be effective unless the
same shall be in writing, and then such waiver or consent shall be effective only in the specific instance and for the purpose
for which given, and any single or partial written waiver by Secured Party of any term, provision or right of Secured Party hereunder
shall only be applicable to the specific instance to which it relates and shall not be deemed to be a continuing or future waiver
of any other right, power or remedy. No notice to or demand upon the Grantor in any case shall entitle Grantor to any other or
further notice or demand in the same, similar or other circumstances.

 

(g)Notices.
All notices of request, demand and other communications hereunder shall be addressed to the parties as follows:

 

	 	If to the Grantor:	 	400 South Australian Ave., 8th Floor	 
	 	 	 	West Palm Beach, FL 33401	 
	 	 	 	Attention:  Jace Simmons	 
	 	 	 	E-Mail: jsimmons@medytoxsolutionsinc.com	 
	 	 	 	 	 
	 	With a copy to:	 	Akerman LLP 	 
	 	(which shall not constitute notice)	 	One Southeast Third Avenue 	 
	 	 	 	Miami, FL 33131 	 
	 	 	 	Attention: Dean M. Freitag, Esq. 	 
	 	 	 	E-Mail:  dean.freitag@akerman.com 	 
	 	 	 	 	 
	 	If to the Secured Party	 	TCA Global Credit Master Fund, LP	 
	 	  	 	3960 Howard Hughes Parkway, Suite 500	 
	 	 	 	Las Vegas, NV 89169 	 
	 	 	 	Attn: Mr. Robert Press	 
	 	 	 	E-Mail:  bpress@tcaglobalfund.com	 
	 	 	 	 	 
	 	With a copy to:	 	Lucosky Brookman LLP	 
	 	(which shall not constitute notice)	 	101 Wood Avenue South, 5th Floor 	 
	 	 	 	Woodbridge, NJ 08830	 
	 	 	 	Attn: Seth A. Brookman, Esq. 	 
	 	 	 	E-Mail:  sbrookman@lucbro.com	 

 

unless the
address is changed by the party by like notice given to the other parties. Notice shall be in writing and shall be deemed delivered:
(i) if mailed by certified mail, return receipt requested, postage prepaid and properly addressed to the address below, then three
(3) business days after deposit of same in a regularly maintained U.S. Mail receptacle; or (ii) if mailed by Federal Express, UPS
or other nationally recognized overnight courier service, next business morning delivery, then one (1) business day after deposit
of same in a regularly maintained receptacle of such overnight courier ; or (iii) if hand delivered, then upon hand delivery thereof
to the address indicated on or prior to 5:00 p.m., EST, on a business day. Any notice hand delivered after 5:00 p.m., EST, shall
be deemed delivered on the following business day. Notwithstanding the foregoing, notice, consents, waivers or other communications
referred to in this Agreement may be sent by facsimile, e-mail, or other method of delivery, but shall be deemed to have been delivered
only when the sending party has confirmed (by reply e-mail or some other form of written confirmation from the receiving party)
that the notice has been received by the other party.

 

 

    	 	14	 

     

    

 

(h)Applicable
Law and Consent to Jurisdiction. The Grantor and the Secured Party each irrevocably agrees that any dispute arising under,
relating to, or in connection with, directly or indirectly, this Agreement or related to any matter which is the subject of or
incidental to this Agreement (whether or not such claim is based upon breach of contract or tort) shall be subject to the exclusive
jurisdiction and venue of the state and/or federal courts located in Broward County, Florida. This provision is intended to be
a “mandatory” forum selection clause and governed by and interpreted consistent with Florida law. The Grantor and Secured
Party each hereby consents to the exclusive jurisdiction and venue of any state or federal court having its situs in said county,
and each waives any objection based on forum non conveniens. The Grantor hereby waives personal service of any and all process
and consent that all such service of process may be made by certified mail, return receipt requested, directed to the Grantor,
as set forth herein in the manner provided by applicable statute, law, rule of court or otherwise. Except for the foregoing mandatory
forum selection clause, this Agreement shall be construed in accordance with the laws of the State of Nevada, without regard to
the principles of conflicts of laws, except to the extent that the validity and perfection or the perfection and the effect of
perfection or non-perfection of the security interest created hereby, or remedies hereunder, in respect of any particular Collateral
are governed under the Code by the law of a jurisdiction other than the State of Nevada, in which case such issues shall be governed
by the laws of the jurisdiction governing such issues under the Code.

 

(i)Survival:
Successors and Assigns. All covenants, agreements, representations and warranties made herein shall survive the execution and
delivery hereof, shall survive Closing and shall continue in full force and effect until all Obligations have been paid in full,
there exists no commitment by Secured Party which could give rise to any Obligations and the Secured Party has provided written
notice acknowledging the satisfaction of all Obligations. Whenever in this Agreement any of the parties hereto is referred to,
such reference shall be deemed to include the successors and assigns of such party. In the event that Secured Party assigns this
Agreement and/or its security interest in the Collateral, Secured Party shall give written notice to the Grantor of any such assignment
and such assignment shall be binding upon and recognized by the Grantor (provided that failure to deliver any such written notice
shall not impair, negate or otherwise adversely affect any of the Secured Party’s rights or remedies under this Agreement
or any other Transaction Documents). All covenants, agreements, representations and warranties by or on behalf of the Grantor which
are contained in this Agreement shall inure to the benefit of Secured Party, its successors and assigns. The Grantor may not assign
this Agreement or delegate any of its rights or obligations hereunder, without the prior written consent of Secured Party, which
consent may be withheld in Secured Party’s sole and absolute discretion.

 

(j)Severabilitv.
If any term, provision or condition, or any part thereof, of this Agreement shall for any reason be found or held invalid or unenforceable
by any court or governmental authority of competent jurisdiction, such invalidity or unenforceability shall not affect the remainder
of such term, provision or condition nor any other term, provision or condition, and this Agreement shall survive and be construed
as if such invalid or unenforceable term, provision or condition had not been contained therein.

 

 

    	 	15	 

     

    

 

(k)Merger
and Integration. This Agreement and the attached Schedules (if any), together with the Purchase Agreement and the other Transaction
Documents, contain the entire agreement of the parties hereto with respect to the matters covered and the transactions contemplated
hereby and thereby, and no other agreement, statement or promise made by any party hereto or thereto, or by any employee, officer,
agent or attorney of any party hereto, which is not contained herein or therein shall be valid or binding.

 

(1)WAIVER
OF JURY TRIAL. THE GRANTOR HEREBY: (a) COVENANTS AND AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY A
JURY; AND (b) WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO WHICH THE GRANTOR AND SECURED PARTY MAY BE PARTIES, ARISING OUT
OF, IN CONNECTION WITH OR IN ANY WAY PERTAINING TO THIS AGREEMENT, THE PURCHASE AGREEMENT AND/OR ANY TRANSACTIONS, OCCURRENCES,
COMMUNICATIONS, OR UNDERSTANDINGS (OR THE LACK OF ANY OF THE FOREGOING) RELATING IN ANY WAY TO DEBTOR-CREDITOR RELATIONSHIP BETWEEN
THE PARTIES. IT IS UNDERSTOOD AND AGREED THAT THIS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST ALL PARTIES
TO SUCH ACTIONS OR PROCEEDINGS, INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO THIS SECURITY AGREEMENT. THIS WAIVER OF
JURY TRIAL IS SEPARATELY GIVEN, KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY THE GRANTOR AND THE GRANTOR HEREBY AGREES THAT NO
REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY INDIVIDUAL TO INDUCE THIS WAIVER OF TRIAL BY JURY OR TO IN ANY WAY MODIFY
OR NULLIFY ITS EFFECT. SECURED PARTY IS HEREBY AUTHORIZED TO SUBMIT THIS AGREEMENT TO ANY COURT HAVING JURISDICTION OVER THE SUBJECT
MATTER AND THE GRANTOR AND SECURED PARTY, SO AS TO SERVE AS CONCLUSIVE EVIDENCE OF SUCH WAIVER OF RIGHT TO TRIAL BY JURY. THE GRANTOR
REPRESENTS AND WARRANTS THAT IT HAS BEEN REPRESENTED IN THE SIGNING OF THIS AGREEMENT AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT
LEGAL COUNSEL, SELECTED OF ITS OWN FREE WILL, AND/OR THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.

 

(m)Execution.
This Agreement may be executed in one or more counterparts, all of which taken together shall be deemed and considered one and
the same Agreement, and same shall become effective when counterparts have been signed by each party and each party has delivered
its signed counterpart to the other party. In the event that any signature is delivered by facsimile transmission or by e-mail
delivery of a “.pdf” format file or other similar format file, such signature shall be deemed an original for all purposes
and shall create a valid and binding obligation of the party executing same with the same force and effect as if such facsimile
or “.pdf” signature page was an original thereof.

 

(n)Headings.
The headings and sub-headings contained in the titling of this Agreement are intended to be used for convenience only and shall
not be used or deemed to limit or diminish any of the provisions hereof.

 

(o)Termination.This
Agreement and the security interests hereunder shall terminate on the date on which all Obligations have been indefeasibly paid
or discharged in full and there are no commitments outstanding for Secured Party to advance any funds to the Grantor, either under
the Purchase Agreement, the Transaction Documents or any other Contract. Upon such termination, the Secured Party, at the request
and at the expense of the Grantor for the fee for the filing of the termination statement, will furnish any termination statement
with respect to any financing statement filed pursuant to this Agreement.

 

(p)Gender
and Use of Singular and Plural. All pronouns shall be deemed to refer to the masculine, feminine, neuter, singular or plural,
as the identity of the party or parties or their personal representatives, successors and assigns may require.

 

(q)Further
Assurances. The parties hereto will execute and deliver such further instruments and do such further acts and things as may
be reasonably required to carry out the intent and purposes of this Agreement.

 

(r)Time
is of the Essence. The parties hereby agree that time is of the essence with respect to performance of each of the parties’
obligations under this Agreement. The parties agree that in the event that any date on which performance is to occur falls on a
Saturday, Sunday or state or national holiday, then the time for such performance shall be extended until the next business day
thereafter occurring.

 

(s)Joint
Preparation. The preparation of this Agreement has been a joint effort of the parties and the resulting documents shall not,
solely as a matter of judicial construction, be construed more severely against one of the parties than the other.

 

(t)Increase
in Obligations. It is the intent of the parties to secure payment of the Obligations, as the amount of such Obligations may
increase from time to time in accordance with the terms and provisions of the Purchase Agreement, and all of the Obligations, as
so increased from time to time, shall be and are secured hereby. Upon the execution hereof, the Grantor shall pay any and all documentary
stamp taxes and/or other charges required to be paid in connection with the execution and enforcement of the Purchase Agreement
and this Agreement, and if, as and to the extent the Obligations are increased from time to time in accordance with the terms and
provisions of the Debenture, then the Grantor shall immediately pay any additional documentary stamp taxes or other charges in
connection therewith.

 

 

[signature page follows]

 

 

    	 	16	 

     

    

 

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

 

 

GRANTOR:

 

 

[                                            ]

 

 

 

By: ___________________

Name: 

Title: 

 

	STATE OF ________________	)
	 	) SS.
	COUNTY OF ______________	)

 

The undersigned, a
Notary Public in and for the said County, in the State aforesaid, DO HEREBY CERTIFY that ___________, the _________________of ____________________, a_________  corporation, who is personally known to me to be the same person whose name is subscribed
to the foregoing instrument, appeared before me this day in person and acknowledged that he/she signed and delivered the said instrument
as his/her own free and voluntary act and as the free and voluntary act of said corporation, for the uses and purposes therein
set forth.

 

GIVEN under my hand and notarial seal this
_____ day of ________________, 20____.

 

	 	 
	 	Notary Public
	 	 
	 	My Commission Expires:
	 	 
	 	 

 

 

 

	 	 SECURED PARTY:

 

TCA GLOBAL CREDIT MASTER FUND, LP

 

By: TCA Global Credit Master Fund GP, Ltd.,

Its:
general partner

 

 

 

 

By: _________________________________

Name: Robert Press

Title: Director

 

 

 

 

 

 

    	 	17zayo-ex101_8.htm

 

Exhibit 10.1

FIRST AMENDMENT

TO

STOCKHOLDERS AGREEMENT

This First Amendment to Stockholders Agreement (this “Amendment”), dated as of September 17, 2015, between Zayo Group Holdings, Inc., a Delaware corporation (the “Company”) and each Participant listed on the signature pages hereto, amends that certain Stockholders Agreement between the Company and each Participant named therein, dated as of October 22, 2014 (the “Stockholders Agreement”).  Capitalized terms used but not defined herein shall have the meanings assigned to them in the Stockholders Agreement.

WHEREAS, pursuant to Section 4.5 of the Stockholders Agreement, the parties signatory hereto desire to amend the terms of the Stockholders Agreement as set forth herein.

NOW, THEREFORE, in consideration of the mutual agreements contained herein, the parties hereto hereby agree as follows with respect to the Company and each Participant, severally, as to such Participant, and not jointly:

1. Release of Equity Securities under the Alternative Transfer Protocol.  Each of the undersigned Participants hereby acknowledges and agrees that, simultaneous with the execution of this Amendment, certain Participants have initiated the Alternative Transfer Protocol under Section 3.5 of the Stockholders Agreement and, accordingly, the Aggregate ATP Equity Security Amount shall be, and hereby is, released from the restrictions on transfer pursuant to the Stockholders Agreement, subject only to (i) the restrictions on sale set forth in Sections 3.1(g) and (h) and (ii) in the event the transfer of such shares is sought pursuant to a Coordinated Block Trade, the Coordinated Block Trade rights set forth in Section 3.6 of the Stockholders Agreement, as amended hereby.  The Company agrees to provide all Participants the Share Allocation Notice pursuant to Section 3.5(b) of the Stockholders Agreement within five (5) calendar days after the date hereof.  Following the release of the Aggregate ATP Equity Security Amount, the Alternative Transfer Protocol shall no longer be available to Participants.  For the avoidance of doubt and notwithstanding anything to the contrary in Section 3.5 of the Stockholders Agreement, the Equity Securities released pursuant to the Alternative Transfer Protocol shall be subject only to the restrictions on sale set forth in Sections 3.1(g) and (h) and, in the event such shares are sought to be transferred pursuant to a Coordinated Block Trade, the Coordinated Block Trade rights set forth in Section 3.6 of the Stockholders Agreement, as amended hereby.

2. Definitions.

a. Article I of the Stockholders Agreement (Definitions) is amended to add the following additional defined terms in their proper alphabetical sequence:

“Additional Participant” has the meaning set forth in Section 3.6(a).

“Advisor” has the meaning set forth in Section 3.6(b)(iii).

“Block Trade Notice” has the meaning set forth in Section 3.6(a).

“Block Trade Request” has the meaning set forth in Section 3.6(a).

“Commission” means the U.S. Securities and Exchange Commission or any successor governmental agency that administers the Securities Act and the Exchange Act.

“Company Representative” means Ken desGarennes or any successor Chief Financial Officer of the Company.

“Coordinated Block Trade” means a block trade executed pursuant to Section 3.6 of the Agreement.

“Counterparty” means the underwriters, broker-dealer or other agent that purchases or facilitates the disposition of Equity Securities pursuant to a Coordinated Block Trade.

“Cutback” has the meaning set forth in Section 3.6(d).

“Electing Participants” has the meaning set forth in Section 3.6(a).

“Eligible Securities” means the total number of Equity Securities (as defined in the Stockholders Agreement) held by a Participant as of the date of the Amendment, excluding the number of Equity Securities released to such Participant pursuant to the Alternative Transfer Protocol.

“Eligible Transfer” has the meaning set forth in Section 3.1(e).

 

 

“Excess Sale Notice” has the meaning set forth in Section 3.1(h).

“Execution Committee” means a representative selected by Columbia Capital and a representative selected by M/C Venture Partners.  The initial members of the Execution Committee shall be Gillis Cashman and John Siegel.  An act of the Execution Committee shall require the consent of both Execution Committee members.

“Losses” has the meaning set forth in Section 3.6(l).

“Maximum Number” has the meaning set forth in Section 3.6(d).

“Participant Group” means each group of Affiliated Participants, taken as a whole.

“Release Date” has the meaning set forth in Section 3.1(e).

“Requesting Participants” has the meaning set forth in Section 3.6(a).

“Trade Expenses” means all expenses incident to the Company’s performance of or compliance with this Agreement in connection with each Requested Block Trade, including, without limitation, all registration, filing, listing and National Association of Securities Dealers, Inc. fees, all fees and expenses of complying with securities or blue sky laws, all word processing, duplicating and printing expenses, all messenger and delivery expenses, any transfer taxes, the fees and expenses of the Company’s legal counsel and independent public accountants, including the expenses of any special audits or “cold comfort” letters required by or incident to such performance and compliance, the reasonable fees and disbursements of one counsel for all Participants participating in each such block trade (which counsel shall be selected by the Participants holding a majority of the Equity Securities requested to be included in such block trade),  and any fees and disbursements of a Counterparty customarily paid by issuers of securities; provided, that Trade Expenses shall not include transfer taxes, discounts and commissions of a Counterparty, or the fees and expenses of the Advisor.

b. The definition of “Affiliate” in Article I of the Stockholders Agreement (Definitions) is hereby amended, restated, and replaced in its entirety as set forth below:

“Affiliate” or “Affiliated” with respect to (a) a Participant, means (i) any Person that, directly or indirectly, through one or more intermediaries, is in control of, is controlled by, or is under common control with, such Participant, (ii) any Person who is a general partner, manager, director or officer (A) of such Participant or (B) of any Person described in clause (i) above, or (iii) any affiliated funds advised or managed by the same investment manager (or any of its Affiliates) as such Participant; (b) the Company, means (1) any Person that, directly or indirectly, is in control of, is controlled by, or is under common control with, the Company or (2) any Person who is a general partner, manager, director or officer (A) of the Company or (B) of any Person described in clause (1) above and (C) any natural person, any member of the Immediate Family of such person; and (c) any other Person, means (x) any Person that, directly or indirectly, through one or more intermediaries, is in control of, is controlled by, or is under common control with, such other Person, (y) any Person who is a general partner, manager, director or officer (A) of such other Person or (B) of any Person described in clause (x) above, or (z) any affiliated funds advised or managed by the same investment manager (or any of its Affiliates) as such other Person.  For purposes of this definition, “control” (including with correlative meanings, the terms “controlling”, “controlled by” and “under common control with”) of a Person shall mean the power, directly or indirectly, (y) to vote 50% or more of the securities having ordinary voting power for the election of directors of such Person whether by ownership of securities, contract, proxy or otherwise, or (z) otherwise to direct or cause the direction of the management and policies of such Person whether by ownership of securities, contract, proxy or otherwise.

3. Transfers of Equity Securities.  Section 3.1 of the Stockholders Agreement (Transfers of Equity Securities) is hereby amended, restated, and replaced in its entirety as set forth below:

3.1 Transfers of Equity Securities.

(a) Prior to October 23, 2016 (the “Transfer Restriction Period”), each Participant agrees that such Participant shall not Transfer any of its Equity Securities, except:

(A) a Transfer that would be permitted by that certain lock-up agreement previously entered into by such Participant and underwriters of the IPO (each, a “Lock-up Agreement,” and collectively, the “Lock-up Agreements”), without any waiver or other similar action by the underwriters of the IPO, during the period governed by such Lock-up Agreement (as if the Lock-up Agreement applied during the entire Transfer Restriction Period), as stated therein (the “Lock-up Period”); provided, however, that for purposes of this Section 3.1, the Lock-up Agreements shall be read without regard to clause (ii) of the second proviso in the second sentence of the second paragraph thereof, which clause restricts certain Transfers except where no filing under Section 16(a) of the Exchange Act shall be required or voluntarily made;

2

 

(B) in an underwritten Public Offering;

(C) for bona fide hedging purposes not intended to circumvent the restrictions contained in this Section 3 (a “Hedging Transaction”);

(D) pursuant to the Alternative Transfer Protocol set forth in Section 3.5, provided, however, that the Equity Securities released pursuant to the Alternative Transfer Protocol shall be subject to the restrictions on sale set forth in Sections 3.1(g) and (h) hereof;

(E) as an Eligible Transfer pursuant to subsection (e) of this Section 3.1; or

(F) in a Coordinated Block Trade effectuated pursuant to Section 3.6 hereof;

(b) Any Transferee (including any Permitted Transferee) that after the Effective Time acquires Equity Securities from a Participant, other than in connection with:

(i) a transfer pursuant to clause (A) of this Section 3.1(a), if the Transferee of such Equity Securities would receive the Equity Securities free from any requirement or obligation to execute a Lock-up Agreement with the underwriters of the IPO pursuant to the terms of the Lock-up Agreement (as if the Lock-up Agreement applied during the entire Transfer Restriction Period), without any waiver or other similar action by the underwriters of the IPO;

(ii) a Public Offering;

(iii) Hedging Transactions;

(iv) a transfer of Equity Securities released pursuant to the Alternative Transfer Protocol and otherwise transferred in compliance with this Amendment;

(v) an Eligible Transfer pursuant to subsection (e) of this Section 3.1; or

(vi) pursuant to a Coordinated Block Trade,

shall, as a condition precedent to the Transfer of such Equity Securities to such Transferee, (w) become a party to this Agreement by completing and executing a signature page hereto (including the address of such party), (x) represent in writing to the Company that such Transfer was made in accordance with Applicable Law, and execute all such other agreements or documents as may reasonably be requested by the Company (which may include such other representations and warranties made by the Transferee to the Company as shall be reasonably requested by the Company), (y) ensure with the transferring stockholders that any regulatory authorizations needed in connection with such Transfer are duly obtained, and (z) deliver such signature page and, if applicable, other agreements and documents to the Company at its address specified in Section 4.11.  Such Person shall, upon its satisfaction of such conditions and acquisition of Equity Securities, be a Participant for all purposes of this Agreement.

(c) Any Transfer or attempted Transfer of Equity Securities in violation of any provision of this Agreement shall be void, and the Company shall give no effect thereto.

(d) The Company shall be allowed to waive or shorten this Agreement in its discretion; provided, however, that, notwithstanding anything herein to the contrary, if the Transfer restrictions set forth herein are waived or shortened by the Company for any Participant or any other party bound hereby, the Transfer restrictions set forth in this Article III shall be deemed to be, and hereby are, also waived or shortened for all Participants in the same manner on a pro rata basis (calculated including the shares held by the Participant or other party bound hereby).

(e) During the Transfer Restriction Period and subject to Section 3.1(g) and (h) below, each Participant shall be permitted, subject to any then applicable lock-up agreements, Applicable Law or other contractual restrictions on the transfer of Equity Securities not imposed by this Agreement, to Transfer the aggregate number of its Equity Securities (each, an “Eligible Transfer”) calculated as of the dates (each, a “Release Date”) and based upon the percentage amounts set forth below:

(i) On and after November 15, 2015, each Participant may Transfer up to 10% of the Participant’s Eligible Securities;

(ii) On and after February 16, 2016, each Participant may Transfer up to 30% of the Participant’s Eligible Securities, which amount for the avoidance of doubt shall include the Eligible Securities released for Transfer pursuant to clause (i) above;

(iii) On and after May 16, 2016, each Participant may Transfer up to 50% of the Participant’s Eligible Securities, which amount for the avoidance of doubt shall include the Eligible Securities released for Transfer pursuant to clauses (i) and (ii) above;

3

 

(iv) On and after September 16, 2016, each Participant may Transfer up to 75% of the Participant’s Eligible Securities, which amount for the avoidance of doubt shall include the Eligible Securities released for Transfer pursuant to clauses (i), (ii) and (iii) above;  and

(v) On and after October 23, 2016, each Participant may Transfer all of its remaining Eligible Securities;

provided, that if the number of Equity Securities to be released to any Participant Group in the aggregate upon any Release Date, as calculated above, shall be less than 500,000, such Participant Group shall nevertheless be entitled to have 500,000 Equity Securities released for Transfer at each Release Date (or such smaller number of Equity Securities as a Participant Group may then hold).  For the avoidance of doubt, a schedule of Eligible Securities to be released at each Release Date is attached as Exhibit A, and the Company shall not be entitled to delay or prevent any such scheduled release.  Notwithstanding the foregoing, with respect to a Participant that has delivered an Excess Sale Notice pursuant to Section 3.1(h) prior to such Release Date; the number of Equity Securities to be released to such Participant as of such Release Date and each subsequent Release Date shall be reduced by the number of shares by which such Participant exceeded the maximum number of Equity Securities that it was entitled to sell pursuant to Section 3.1(h); provided, however, that all remaining Eligible Securities shall be released to such Participant on October 23, 2016 regardless of any Excess Sale Notice that has previously been delivered.

(f) Approximately five Business Days prior to each Release Date, the Company shall deliver to each Participant a notice setting forth (i) the number of Equity Securities, if any, to be made available for Transfer on such Release Date, and (ii) the anticipated date on which the legend required by Section 3.4 of the Agreement will be removed from such securities.  On each Release Date, the Company shall instruct its transfer agent to remove the legend required by Section 3.4 of the Agreement from the number of Equity Securities, if any, to be made available for Transfer by a Participant on such Release Date.

(g) During the Transfer Restriction Period, if any Equity Securities released pursuant to the Alternative Transfer Protocol or Section 3.1(e) are distributed or otherwise Transferred by a Participant to its members, limited partners or other equity holders, such Participant shall provide the Company with written notice within 24 hours after such distribution or transfer.

(h) Notwithstanding anything herein to the contrary, during the Transfer Restriction Period, the maximum number of Equity Securities that a Participant Group shall be entitled to sell, directly or indirectly in any single transaction or series of related transactions, shall be the greater of (i) 1,000,000 shares of Common Stock, and (ii) the average daily trading volume of the Common Stock for the 30 days immediately preceding such sale; provided, that the foregoing limitations shall not apply to (x) transactions made pursuant to Section 3.1(a)(B) and (F), or (y) distributions or other Transfers by a Participant to its members, limited partners or other equity holders or any subsequent sale or Transfer by such members, limited partners or other equity holders.  For the avoidance of doubt, sales made (i) pursuant to an existing 10b5-1 plan, (ii) to multiple buyers who are not Affiliates of one another, or (iii) under separate sale agreements at different prices, in each case, shall not be considered a “series of related transactions” for the purposes of this Section 3.1(h).  If any Participant makes any sale in violation of this Section 3.1(h), such Participant shall deliver a notice to the Company promptly (and any in event with five (5) Business Days) after discovering such violation (the “Excess Sale Notice”).

(i) For the avoidance of doubt, shares of Common Stock acquired by a Participant after the date of the Amendment, including but not limited to upon the vesting of derivative securities, shall not constitute Equity Securities for purposes of the Stockholders Agreement and shall not be subject to any restrictions contained in the Stockholders Agreement.

4. Coordinated Block Trades.  The Stockholders Agreement is hereby amended to add Section 3.6 as set forth below:

3.6 Coordinated Block Trades.

(a) Block Trade Request.  If at any time during the Transfer Restriction Period, the Company shall receive a written request from Participants who are holders of at least 25% of Eligible Securities (the “Requesting Participants”) that the Company facilitate a block trade (the “Block Trade Request”), then the Company shall (i) within five days, give written notice of the proposed block trade to all other Participants (a “Block Trade Notice”), and (ii) use all commercially reasonable efforts to effect the block trade and, if applicable, the registration under the Securities Act of the Equity Securities that the Company has been so requested to register by the Execution Committee on behalf of the Requesting Participants and any other Participants (each, an “Additional Participant” and together with the Requesting Participants, the “Electing Participants”) joining in such Block Trade Request (as is specified in a written request by each such Additional Participant received by the Company within five days after delivery of the Block Trade Notice and specifying the number of Equity Securities held by such Participant to be included in the block trade) in accordance herewith as soon as practicable after receipt of the Block Trade Request, provided, that if the Execution Committee determines to exclude an Electing Participant under Section 3.6(c) hereof, the Company shall have no obligation to effectuate the Coordinated Block Trade as to such excluded Electing Participant.

4

 

(b) Limitations on Coordinated Block Trades.

(i) Block Trade Request.  Each Block Trade Request shall include the following information:  (i) the identity of the Requesting Participants; and (ii) the desired number of Equity Securities to be sold by each Requesting Participant.  In addition, the Requesting Participants shall promptly provide any supplemental information reasonably requested by the Company with respect to the proposed block trade.

(ii) Delay Limitation.  If the Company shall furnish to the Requesting Participants a certificate signed by the Company’s Chief Executive Officer or Chairman of the Board of Directors stating that in the good faith judgment of the Board of Directors of the Company that at the time requested it would (A) be materially detrimental to the Company and its stockholders or (B) violate applicable law for such Block Trade Request to be effected at such time, then the Company shall have the right to defer such Block Trade Request for a period of not more than 60 days after receipt thereof, provided that such right to delay pursuant to clause (A) above shall be exercised by the Company not more one time during the Restricted Period.

(iii) Block Trade Advisor.  All Coordinated Block Trades shall be coordinated through Solebury Capital Group LLC or such other advisor as may be selected by Electing Participants holding more than 50% of the Equity Securities requested to be included in such block trade (the “Advisor”).  Any and all compensation, fees and other expenses of the Advisor shall be paid by the Electing Participants, pro rata, based on the number of shares to be sold by each Electing Participant in a Coordinated Block Trade.

(c) Execution Committee.  Whenever a Block Trade Request is made, the Execution Committee shall coordinate with the Advisor and the Company Representative to administer the Coordinated Block Trade requested thereunder, and shall have the sole and exclusive authority to:

(i) Determine whether a Coordinated Block Trade will be registered with the Securities and Exchange Commission;

(ii) Exclude certain of the Electing Participants from a Coordinated Block Trade if their participation would adversely affect the quantity of shares that could be offered, the price per share that could be demanded or the ability to consummate the Coordinated Block Trade in compliance with applicable law, based on (A) their status as an “affiliate” of the Company (as defined in Rule 144(a)(1) of the Securities Act), or (B) their possession of material nonpublic information, in which case such excluded Participant shall no longer be an Electing Participant with respect to such Coordinated Block Trade;

(iii) Set the price per share of Common Stock to be sold in a Coordinated Block Trade;

(iv) Establish the number of shares of Common Stock to be sold in a Coordinated Block Trade, subject to any required Cutback; and

(v) Make decisions, in consultation with the Advisor and any participating Counterparties, with respect to the timing of a Coordinated Block Trade.

(d) Priority.  If the Execution Committee, in consultation with the Advisor, shall give written advice to the Electing Participants and the Company that, in their opinion, market conditions dictate that no more than a specified maximum number of securities  (the “Maximum Number”) could successfully be included as part of a Coordinated Block Trade without having an adverse effect on the success of such block trade (including, without limitation, an impact on the selling price or the number of Equity Securities that may be sold within a price range acceptable to the Execution Committee), then the Coordinated Block Trade shall be required to include only such number of securities as is equal to the Maximum Number (the “Cutback”); provided, however, that no Management Member (as defined in the Registration Rights Agreement) will be entitled to participate in any Coordinated Block Trade if the Execution Committee, in consultation with the Advisor, shall determine in good faith that the participation of such Management Member would adversely affect the marketability of the securities being sold. In the event that a Cutback results in the actual inclusion of less than all of the Equity Securities designated for inclusion in a Coordinated Block Trade by the Electing Participants, then the number of Equity Securities that will be included in such block trade shall be shared pro rata among the Electing Participants based on the relative number of Eligible Securities held by each such Electing Participant.

(e) Registered Offering.  In the event of a registered Coordinated Block Trade, the right of any an Electing Participant to be included in such transaction pursuant to this Section 3.6 shall be conditioned upon such Participant’s acceptance of the terms of the registered Coordinate Block Trade as agreed upon between the Company and the Counterparty; execution of an underwriting agreement or similar agreement in customary form with such Counterparty, as approved by the Company and the Execution Committee; and the inclusion of such Electing Participant’s Equity Securities in the registered Coordinated Block Trade to the extent provided in this Agreement.

5

 

(f) Trade Expenses.  The Company shall pay all Trade Expenses incurred in connection with all Coordinated Block Trades.  Notwithstanding the foregoing, the Company shall not be required to pay for any Trade Expenses of any Coordinated Block Trade initiated by the Requesting Participants that is subsequently withdrawn at the request of Electing Participants holding a majority of the Equity Securities requested to be included in such block trade (in which case all of the Electing Participants shall bear such expenses pro rata based upon the number of Equity Securities that were to be sold in the withdrawn Coordinated Block Trade); provided, however, that the Participants shall not be required to pay any of such Trade Expenses if (i) at the time of such withdrawal the Participants have learned of a material and adverse change in the condition, business or prospects of the Company from that known to the Participants at the time of their request and they have withdrawn the request with reasonable promptness following disclosure by the Company of such material and adverse change, (ii) the request has been withdrawn following a Cutback determination pursuant to Section 3.6(d) or (iii) the request has been withdrawn as a result of a failure of a registered Coordinated Block Trade to be effected (A) as provided in Section 3.6(g) or (B) as a result of the Company’s violation of this Agreement.

(g) Effective Registration Statement.  A registered Coordinated Block Trade shall not be deemed to have been effected unless the registration statement filed with respect thereto in accordance with the Securities Act has become effective with the Commission and kept effective in accordance with the provisions of Section 3.1(c) of the Registration Rights Agreement. Notwithstanding the foregoing, a registration statement will not be deemed to have become effective if (i) after it has become effective with the Commission, such registration is made subject to any stop order, injunction, or other order or requirement of the Commission or other governmental agency or any court proceeding for any reason other than a misrepresentation or omission by any Participant, or (ii) the conditions to closing specified in the purchase agreement, underwriting agreement or similar agreement entered into in connection with such registration are not satisfied, other than solely by reason of some act or omission by any Participant.

(h) Jurisdictional Limitations.  All Coordinated Block Trades shall be subject to Section 2.6 (Jurisdictional Limitations) of the Registration Rights Agreement.

(i) Registered Offerings.  Registered Coordinated Block Trades shall be subject to Article III (Registration Procedures), Article IV (Underwritten Offerings) and Article V (Indemnification and Contribution) of the Registration Rights Agreement, and all Participants shall be bound by the provisions of Section 4.2(a) of the Registration Rights Agreement irrespective of whether they are participating in a Coordinated Block Trade; provided, that Section 4.2(a) shall not impose any restrictions that would require the termination, amendment or other modification of an existing 10b5-1 plan of any Participant.

(j) Incorporation of Provisions from Registration Rights Agreement.  For the purposes of this Section 3.6, all provisions of the Registration Rights Agreement incorporated by reference herein shall be deemed to be so incorporated with the following substitutions of defined terms:

(i) All references to an “Incidental Registration” or “Requested Registration” in the Registration Rights Agreement shall be deemed to instead be references to a “Block Trade Request,” as defined herein;

(ii) Unless otherwise set forth in this Section 3.6, all references to “Holders” in the Registration Rights Agreement shall be deemed to instead be references to the “Participants” as defined herein;

(iii) All references to “Registrable Securities” in the Registration Rights Agreement shall be deemed to instead be references to “Equity Securities,” as defined herein;

(iv) All references to “Investor Registrable Securities” and “Management Member Registrable Securities” in the Registration Rights Agreement shall be deemed to instead be references to “Equity Securities,” as defined herein;

(v) All references to “Section 2.1” in the Registration Rights Agreement shall be deemed to instead be references to “Section 3.6” of the Agreement;

(vi) All references to “the holders of a majority of Registrable Securities requested to be included in such registration,” or phrases of similar meaning in the Registration Rights Agreement shall be deemed to instead be references to the “Execution Committee,” as defined herein; and

(vii) All references to “participating Holders,” “Holders participating in such registration,” or phrases of similar meaning in the Registration Rights Agreement shall be deemed to instead be references to the “Electing Participants,” as defined herein.

6

 

(k) Other Block Trades.  For the avoidance of doubt, nothing herein is intended to, or shall be interpreted to, restrict the ability of one or more Participants to arrange or consummate block trades that do not qualify as Coordinated Block Trades with respect to Equity Securities that have been released pursuant to the Alternative Transfer Protocol or Section 3.1(e), subject to compliance with Applicable Law.   Any such block trades will be subject to the limitation set forth in Section 3.1(h), but such block trades will not be subject to any provisions of this Section 3.6.

(l) Exculpation; Indemnity.  No member of the Execution Committee shall be liable to the Company or any Participant for any loss, damage or claim incurred by reason of any act or omission performed or omitted by such Execution Committee member in a manner believed to be within the scope of authority conferred on the Execution Committee by this Amendment.  The Electing Participants agree to indemnify, defend and hold harmless each member of the Execution Committee from and against any and all losses, liabilities, damages, claims, penalties, fees, costs and expenses (including legal fees) (collectively, “Losses”) arising out of or in connection with the acts or omissions of the Execution Committee, in each case as such Loss is suffered or incurred; provided, that in the event that any such Loss is finally adjudicated to have been directly caused by the willful misconduct of any member of the Execution Committee, such member will reimburse the Electing Participants the amount of such indemnified Loss to the extent attributable to such willful misconduct.

5. Amendments. The first sentence of Section 4.5 of the Stockholders Agreement (Amendment; Waivers, etc.) is hereby amended, restated, and replaced in its entirety as set forth below:

The provisions of Articles I, III and IV of this Agreement may be amended, and the Company and any Participant may take any action herein prohibited, or omit to perform any act herein required to be performed by it, if and only if any such amendment, action or omission to act, has been approved by holders of a majority of the Equity Securities held by Participants; provided, however, that any such amendment, action or omission that would extend the restrictions hereof, impose new obligations or restrictions on any Participant, or reduce the number of Equity Securities that may be Transferred by any Participant shall require the approval of each such Participant that would be adversely affected thereby.

6. Miscellaneous.

a. Terms Generally.  The words “hereby,” “herein,” “hereof,” “hereunder” and words of similar import refer to this Agreement as a whole and not merely to the specific section, paragraph or clause in which such word appears.  All references herein to the preamble, recitals, Articles and Sections shall be deemed references to the preamble, recitals, Articles and Sections of the Stockholders Agreement unless the context shall otherwise require.  The words “include,” “includes” and “including” shall mean “including without limitation.”  The definitions given for terms in the Stockholders Agreement and this Amendment shall apply equally to both the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  References herein to any agreement or letter shall be deemed references to such agreement or letter as it may be amended, restated or otherwise revised from time to time.

b. No Further Amendments.  Except as expressly amended hereby, the provisions of the Stockholders Agreement are, and will remain, unmodified and in full force and effect.  Unless the context requires otherwise, references in the Stockholders Agreement to “the date hereof,” “the date of this Agreement” or similar references will continue to refer to October 22, 2014.

c. Notices.  All notices, requests, demands, waivers and other communications required or permitted to be delivered under this Amendment shall be given in the manner set forth in Section 4.9 of the Stockholders Agreement.

d. Amendment Expenses.  The Company shall pay the reasonable attorney’s fees and expenses incurred in connection with the negotiation and consummation of this Amendment of Latham & Watkins, LLP, as counsel to the Participants party to this Amendment.  The fees and expenses of any other advisor, including alternate legal counsel, shall be borne by the Participant(s) incurring such costs and shall not be paid or reimbursed by the Company.

e. Severability.  Any term or provision of this Amendment that is invalid, illegal or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without rendering invalid, illegal or unenforceable the remaining terms and provisions of this Amendment or affecting the validity, illegality or enforceability of any of the terms or provisions of the Stockholders Agreement, as amended hereby, in any other jurisdiction.  If any provision of this Amendment is so broad as to be unenforceable, the provision shall be interpreted to be only so broad as is enforceable.  Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Amendment so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated herein are consummated as originally contemplated to the fullest extent possible.

7

 

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

g. Governing Law.  This Amendment will be governed by and construed in accordance with the laws of the State of Delaware (regardless of the laws that might otherwise govern under applicable principles or rules of conflicts of law to the extent such principles or rules are not mandatorily applicable by statute and would require the application of the laws of another jurisdiction).

h. Counterparts; Facsimile Signatures.  This Amendment may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument.  This Amendment may be executed by facsimile signature(s).

i. Other Amendments.  Section 4.5 of the Stockholders Agreement, as amended by this Amendment, shall also apply to any amendments to this Amendment.

[Signature Page Follows.]

 

 

 

8

 

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

 

	
ZAYO GROUP HOLDINGS, INC.

	
 

	
By:
	
 
	
/s/ Dan Caruso 

	
 
	
 
	
Name: Dan Caruso

	
 
	
 
	
Title:  Chief Executive Officer

 

[Signature Page to First Amendment to Stockholders Agreement]

 

 

	
	
COLUMBIA CAPITAL EQUITY PARTNERS IV (QP), L.P.

	
 

	
By: Columbia Capital Equity Partners IV, L.P., its general partner

	
 

	
By:  Columbia Capital IV, LLC, its general partner

 

	
By:
	
 
	
/s/ Donald A. Doering 

	
Name:
	
 
	
Donald A. Doering

	
Title:
	
 
	
Executive Vice President

 

	
	
COLUMBIA CAPITAL EQUITY PARTNERS IV (QPCO), L.P.

	
 

	
By:  Columbia Capital Equity Partners IV, L.P., its general partner

	
 

	
By:  Columbia Capital IV, LLC, its general partner

 

	
By:
	
 
	
/s/ Donald A. Doering 

	
Name:
	
 
	
Donald A. Doering

	
Title:
	
 
	
Executive Vice President

 

	
	
COLUMBIA CAPITAL EMPLOYEE INVESTORS IV, L.P.

	
 

	
By:  Columbia Capital IV, LLC, its general partner

 

	
By:
	
 
	
/s/ Donald A. Doering 

	
Name:
	
 
	
Donald A. Doering

	
Title:
	
 
	
Executive Vice President

[Signature Page to First Amendment to Stockholders Agreement]

 

 

 

 

	
	
COLUMBIA CAPITAL EQUITY PARTNERS III (QP), L.P.

	
 

	
By:  Columbia Capital Equity Partners III, L.P., its general partner

	
 

	
By:  Columbia Capital III, LLC, its general partner

 

	
By:
	
 
	
/s/ Donald A. Doering 

	
Name:
	
 
	
Donald A. Doering

	
Title:
	
 
	
Executive Vice President

 

	
	
COLUMBIA CAPITAL EQUITY PARTNERS III (CAYMAN), L.P.

	
 

	
By:  Columbia Capital Equity Partners (Cayman) III, LTD, its general partner

	
 

	
By:  Columbia Capital Equity Partners III, L.P., its sole shareholder

	
 

	
By:  Columbia Capital III, LLC, its general partner

 

	
By:
	
 
	
/s/ Donald A. Doering 

	
Name:
	
 
	
Donald A. Doering

	
Title:
	
 
	
Executive Vice President

[Signature Page to First Amendment to Stockholders Agreement]

 

 

	
	
COLUMBIA CAPITAL EQUITY PARTNERS III (AI), L.P.

	
 

	
By:  Columbia Capital Equity Partners III, L.P., its general partner

	
 

	
By:   Columbia Capital III, LLC, its general partner

 

	
By:
	
 
	
/s/ Donald A. Doering 

	
Name:
	
 
	
Donald A. Doering

	
Title:
	
 
	
Executive Vice President

 

	
	
COLUMBIA CAPITAL INVESTORS III, LLC

	
 

	
By:  Columbia Capital Equity Partners III, L.P., its managing member

	
 

	
By:  Columbia Capital III, LLC, its general partner

 

	
By:
	
 
	
/s/ Donald A. Doering 

	
Name:
	
 
	
Donald A. Doering

	
Title:
	
 
	
Executive Vice President

 

	
	
COLUMBIA CAPITAL EMPLOYEE INVESTORS III, LLC

	
 

	
By:  Columbia Capital Equity Partners III, L.P., its managing member

	
 

	
By:  Columbia Capital III, LLC, its general partner

 

	
By:
	
 
	
/s/ Donald A. Doering 

	
Name:
	
 
	
Donald A. Doering

	
Title:
	
 
	
Executive Vice President

 

	
	
M/C VENTURE PARTNERS V, L.P.

	
 

	
By:  M/C VP V, LLC, its general partner

 

	
By:
	
 
	
/s/ Gillis S. Cashman 

	
Name:
	
 
	
Gillis S. Cashman

	
Title:
	
 
	
Manager

 

	
	
M/C VENTURE PARTNERS VI, L.P.

	
 

	
By:  M/C VP VI, LLC, its general partner

	
 

	
By:  M/C Venture Partners, LLC, its general partner

 

	
By:
	
 
	
/s/ Gillis S. Cashman 

	
Name:
	
 
	
Gillis S. Cashman

	
Title:
	
 
	
Manager

[Signature Page to First Amendment to Stockholders Agreement]

 

 

	
	
M/C VENTURE INVESTORS, L.L.C.

 

	
By:
	
 
	
/s/ Gillis S. Cashman 

	
Name:
	
 
	
Gillis S. Cashman

	
Title:
	
 
	
Manager

 

 

 

	
CHESTNUT VENTURE PARTNERS, L.P.

	
 

	
By:  Chestnut Street Partners, Inc., its general partner

 

	
By:
	
 
	
/s/ David D. Croll 

	
Name:
	
 
	
David D. Croll

	
Title:
	
 
	
President

 

	
CORELINK DATA CENTERS, LLC

	
 

	
By:  M/C VP VI, LLC, its general partner

	
 

	
By:  M/C Venture Partners, LLC, its general partner

 

	
By:
	
 
	
/s/ Gillis S. Cashman 

	
Name:
	
 
	
Gillis S. Cashman

	
Title:
	
 
	
Manager

 

	
OAK INVESTMENT PARTNERS, XII, LIMITED PARTNERSHIP

	
 

	
By:  Oak Associates XII, LLC, its general partner

 

	
By:
	
 
	
/s/ Edward F. Glassmayer

	
Name:
	
 
	
Edward F. Glassmayer

	
Title:
	
 
	
Managing Partner

[Signature Page to First Amendment to Stockholders Agreement]

 

 

			
	
CENTENNIAL VENTURES VII, L.P.

	
 
	
 
	
 

	
By:  Centennial Holdings VII, LLC, it general partner

 

	
By:
	
 
	
 /s/ Steven C. Halstedt 

	
Name:
	
 
	
Steven C. Halstedt

	
Title:
	
 
	
Managing Director

 

			
	
CENTENNIAL ENTREPRENEURS FUND VII, L.P.

	
 
	
 
	
 

	
By:  Centennial Holdings VII, LLC, it general partner

 

	
By:
	
 
	
/s/ Steven C. Halstedt 

	
Name:
	
 
	
Steven C. Halstedt

	
Title:
	
 
	
Managing Director

[Signature Page to First Amendment to Stockholders Agreement]

 

 

	
	
CHARLESBANK EQUITY FUND VI, LIMITED PARTNERSHIP

	
 

	
By:  Charlesbank Equity Fund VI GP, Limited Partnership, its general partner

	
 

	
By:  Charlesbank Capital Partners, LLC, its general partner

 

	
By:
	
 
	
/s/ Michael Choe

	
Name:
	
 
	
Michael Choe

	
Title:
	
 
	
Managing Director

 

	
By:
	
 
	
/s/ Joshua A. Klevens

	
Name:
	
 
	
Josh Klevens

	
Title:
	
 
	
Managing Director

 

	
	
CB OFFSHORE EQUITY FUND VI, L.P.

	
 

	
By:  Charlesbank Equity Fund VI GP, Limited Partnership, its managing general partner

	
 

	
By:  Charlesbank Capital Partners, LLC, its general partner I

 

	
By:
	
 
	
/s/ Michael Choe

	
Name:
	
 
	
Michael Choe

	
Title:
	
 
	
Managing Director

 

	
By:
	
 
	
/s/ Joshua A. Klevens

	
Name:
	
 
	
Josh Klevens

	
Title:
	
 
	
Managing Director

[Signature Page to First Amendment to Stockholders Agreement]

 

 

	
	
CHARLESBANK EQUITY COINVESTMENT FUND VI, LIMITED PARTNERSHIP

	
 

	
By:  Charlesbank Equity Fund VI GP, Limited Partnership, its general partner

	
 

	
By:  Charlesbank Capital Partners, LLC, its general partner

	
 

 

	
By:
	
 
	
/s/ Michael Choe

	
Name:
	
 
	
Michael Choe

	
Title:
	
 
	
Managing Director

 

	
By:
	
 
	
/s/ Joshua A. Klevens

	
Name:
	
 
	
Josh Klevens

	
Title:
	
 
	
Managing Director

 

	
	
CHARLESBANK COINVESTMENT PARTNERS, LIMITED PARTNERSHIP

	
 

	
By:  Charlesbank Capital Partners, LLC, its general partner

 

	
By:
	
 
	
/s/ Michael Choe

	
Name:
	
 
	
Michael Choe

	
Title:
	
 
	
Managing Director

 

	
By:
	
 
	
/s/ Joshua A. Klevens

	
Name:
	
 
	
Josh Klevens

	
Title:
	
 
	
Managing Director

[Signature Page to First Amendment to Stockholders Agreement]

 

 

	
	
MORGAN STANLEY PRIVATE MARKETS FUND IV LP

	
 

	
By:  Morgan Stanley PMF IV GP LP, its general partner

	
 

	
By:  Morgan Stanley Alternative Investments LLC, its general partner

 

	
By:
	
 
	
/s/ Matthew Allen

	
Name:
	
 
	
Matthew Allen

	
Title:
	
 
	
Executive Director

 

	
	
VIJVERPOORT HUIZEN C.V.

	
 

	
By:  Morgan Stanley Alternative Investment Partners LP, its general partner

	
 

	
By:  Morgan Stanley AlP GP LP, its general partner

	
 

	
By:  Morgan Stanley Alternative Investments LLC, its general partner

 

	
By:
	
 
	
/s/ Matthew Allen 

	
Name:
	
 
	
Matthew Allen

	
Title:
	
 
	
Executive Director

 

	
	
GTB CAPITAL PARTNERS LP

	
 

	
By:  GTB Capital Partners GP LP, its general partner

	
 

	
By:  Morgan Stanley Alternative Investments LLC, its general partner

 

	
By:
	
 
	
/s/ Matthew Allen 

	
Name:
	
 
	
Matthew Allen

	
Title:
	
 
	
Executive Director

[Signature Page to First Amendment to Stockholders Agreement]

 

 

	
	
DELTA-V CAPITAL 2011, LP

	
 

	
By:  Delta-v Capital 2011 Holdings, LP, its general partner

	
 

	
By:  Delta-v Capital 2011 Holdings, LLC, its general partner

 

	
By:
	
 
	
/s/ Rand Lewis 

	
Name:
	
 
	
Rand Lewis

	
Title:
	
 
	
Managing Director

[Signature Page to First Amendment to Stockholders Agreement]

 

 

	
	
GTCR FUND X/A LP

	
 

	
By:  GTCR Partners X/A&C LP, its general partner

	
 

	
By:  GTCR Investment X LLC, its general partner

 

	
By:
	
 
	
/s/ Philip A. Canfield

	
Name:
	
 
	
Philip A. Canfield

	
Title:
	
 
	
Manager

 

	
	
GTCR FUND X/C LP

	
 

	
By:  GTCR Partners X/A&C LP, its general partner

	
 

	
By:  GTCR Investment X LLC, its general partner

 

	
By:
	
 
	
/s/ Philip A. Canfield

	
Name:
	
 
	
Philip A. Canfield

	
Title:
	
 
	
Manager

 

	
	
GTCR CO-INVEST X LP

	
 

	
By:  GTCR Investment X LLC, its general partner

 

	
By:
	
 
	
/s/ Philip A. Canfield

	
Name:
	
 
	
Philip A. Canfield

	
Title:
	
 
	
Manager

[Signature Page to First Amendment to Stockholders Agreement]

 

 

	
	
GTCR INVESTORS (CII) LP

	
 

	
By:  GTCR Partners X/A&C LP, its general partner

	
 

	
By:  GTCR Investment X LLC, its general partner

 

	
By:
	
 
	
/s/ Philip A. Canfield

	
Name:
	
 
	
Philip A. Canfield

	
Title:
	
 
	
Manager

[Signature Page to First Amendment to Stockholders Agreement]

 

 

	
	
DAN CARUSO
BEAR EQUITY, LLC
BEAR INVESTMENTS, LLLP
VP HOLDINGS, LLC

	
DPC PAPA BEAR ENTERPRISES LLC

 

	
By: 
	
 
	
/s/ Dan Caruso

	
 
	
 
	
Name:Dan Caruso

 

	
	
KEN DESGARENNES
TABLEROCK INVESTMENTS, LLC
TABLEROCK INVESTMENTS II, LLC

 

	
By:
	
 
	
/s/ Ken desGarennes

	
 
	
 
	
Name: Ken desGarennes

 

	
	
JOHN SCARANO
ESU INVESTMENTS, LLC
SCARANO 2014 GRAT #1

 

	
By:
	
 
	
/s/ John Scarano

	
 
	
 
	
Name: John Scarano

 

	
	
MATT ERICKSON
MRE 2014 GRAT

 

	
By:
	
 
	
/s/ Matt Erickson

	
 
	
 
	
Name: Matt Erickson

 

	

[Signature Page to First Amendment to Stockholders Agreement]

 

	
CHRIS MORLEY

	
MANGO 2014 GRANTOR RETAINED 

	
ANNUITY TRUST

	
MANGO HOLDINGS, LLC

 

	
By:
	
 
	
/s/ Chris Morley

	
 
	
 
	
Name: Chris Morley

 

	
	
DAVID HOWSON

	
BON FAMILLE 2014 IRREVOCABLE TRUST

 

	
By: 
	
  
	
/s/ David Howson

	
 
	
 
	
Name: David Howson

 

	
	
GLENN RUSSO

	
GSR 2014 GRAT

 

	
By: 
	
 
	
/s/ Glenn Russo

	
 
	
 
	
Name: Glenn Russo

	
 
	
 
	
 

	
SANDI MAYS

	
 
	
 
	
 

	
/s/ Sandi Mays

 

	
	
CHRIS MURPHY

	
CHRISTOPHER G. MURPHY 2014 GRANTOR RETAINED ANNUITY TRUST

 

	
By:
	
 
	
/s/ Chris Murphy

	
 
	
 
	
Name: Chris Murphy

	
 
	
 
	
 

 

[Signature Page to First Amendment to Stockholders Agreement]

 

 

	
	
JASON TIBBS

	
 

	
/s/ Jason Tibbs 

 

	
	
JAMES NOLTE

	
 

	
/s/ James Nolte

 

	
	
SCOTT BEER

	
 

	
/s/ Scott Beer

 

	
	
TIM GENTRY

	
 

	
/s/ Tim Gentry

 

	
	
GREG HADLOCK

	
 

	
/s/ Greg Hadlock

 

	
	
FRITZ HENDRICKS

	
 

	
/s/ Fritz Hendricks 

 

[Signature Page to First Amendment to Stockholders Agreement]

 

 

	
	
GILLIS CASHMAN

	
 

	
/s/ Gillis Cashman

 

	
	
STEPHANIE COPELAND

	
 

	
/s/ Stephanie Copeland

 

	
	
STEPHANIE COMFORT

	
 

	
/s/ Stephanie Comfort

	
 

 

	
	
RICK CONNOR

	
 

	
/s/ Rick Connor

 

	
	
DON GIPS

	
 

	
/s/ Don Gips

 

	
	
LINDA ROTTENBERG

	
 

	
/s/ Linda Rottenberg

 

 

 

[Signature Page to First Amendment to Stockholders Agreement]

 

EXHIBIT A

ELIGIBLE SECURITIES TO BE RELEASED AT EACH RELEASE DATE

 

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
Release Date Eligible Transfers
	
 

	
 
	
 
	
Restricted Shares Beneficially Owned at 9/11/15
	
 
	
 
	
Release of Equity Securities under the Alternative Transfer Protocol
	
 
	
 
	
November 15,

2015

10%
	
 
	
 
	
February 16,

2016

20%
	
 
	
 
	
May 16,

2016

20%
	
 
	
 
	
September  16,

2016

25%
	
 
	
 
	
October 23,

2016

25%
	
 

	
Columbia Capital
	
 
	
 
	
21,288,606
	
 
	
 
	
 
	
2,681,096
	
 
	
 
	
 
	
1,860,751
	
 
	
 
	
 
	
3,721,502
	
 
	
 
	
 
	
3,721,502
	
 
	
 
	
 
	
4,651,878
	
 
	
 
	
 
	
4,651,878
	
 

	
M/C Partners
	
 
	
 
	
20,997,419
	
 
	
 
	
 
	
2,644,834
	
 
	
 
	
 
	
1,835,259
	
 
	
 
	
 
	
3,670,517
	
 
	
 
	
 
	
3,670,517
	
 
	
 
	
 
	
4,588,146
	
 
	
 
	
 
	
4,588,146
	
 

	
Oak Investment Partners
	
 
	
 
	
22,446,773
	
 
	
 
	
 
	
2,899,556
	
 
	
 
	
 
	
1,954,722
	
 
	
 
	
 
	
3,909,443
	
 
	
 
	
 
	
3,909,443
	
 
	
 
	
 
	
4,886,804
	
 
	
 
	
 
	
4,886,804
	
 

	
Battery Ventures
	
 
	
 
	
12,373,981
	
 
	
 
	
 
	
1,533,366
	
 
	
 
	
 
	
1,084,062
	
 
	
 
	
 
	
2,168,123
	
 
	
 
	
 
	
2,168,123
	
 
	
 
	
 
	
2,710,154
	
 
	
 
	
 
	
2,710,154
	
 

	
Investment Funds affiliated with Centennial Ventures
	
 
	
 
	
7,344,356
	
 
	
 
	
 
	
944,701
	
 
	
 
	
 
	
639,966
	
 
	
 
	
 
	
1,279,931
	
 
	
 
	
 
	
1,279,931
	
 
	
 
	
 
	
1,599,914
	
 
	
 
	
 
	
1,599,914
	
 

	
Charlesbank Capital Partners
	
 
	
 
	
19,832,868
	
 
	
 
	
 
	
2,538,051
	
 
	
 
	
 
	
1,729,482
	
 
	
 
	
 
	
3,458,963
	
 
	
 
	
 
	
3,458,963
	
 
	
 
	
 
	
4,323,704
	
 
	
 
	
 
	
4,323,704
	
 

	
Portfolios managed by Morgan Stanley Alternative Investment Partners
	
 
	
 
	
6,714,590
	
 
	
 
	
 
	
867,355
	
 
	
 
	
 
	
584,724
	
 
	
 
	
 
	
1,169,447
	
 
	
 
	
 
	
1,169,447
	
 
	
 
	
 
	
1,461,809
	
 
	
 
	
 
	
1,461,809
	
 

	
Delta V
	
 
	
 
	
492,634
	
 
	
 
	
 
	
59,406
	
 
	
 
	
 
	
433,228
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
GTCR
	
 
	
 
	
45,654,305
	
 
	
 
	
 
	
4,811,907
	
 
	
 
	
 
	
4,084,240
	
 
	
 
	
 
	
8,168,480
	
 
	
 
	
 
	
8,168,480
	
 
	
 
	
 
	
10,210,600
	
 
	
 
	
 
	
10,210,600
	
 

	
Dan Caruso
	
 
	
 
	
9,577,135
	
 
	
 
	
 
	
954,524
	
 
	
 
	
 
	
862,261
	
 
	
 
	
 
	
1,724,522
	
 
	
 
	
 
	
1,724,522
	
 
	
 
	
 
	
2,155,653
	
 
	
 
	
 
	
2,155,653
	
 

	
Rick Connor
	
 
	
 
	
146,228
	
 
	
 
	
 
	
16,750
	
 
	
 
	
 
	
129,478
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Don Gips
	
 
	
 
	
20,583
	
 
	
 
	
 
	
1,808
	
 
	
 
	
 
	
18,775
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Linda Rottenberg
	
 
	
 
	
19,273
	
 
	
 
	
 
	
1,524
	
 
	
 
	
 
	
17,749
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Stephanie Comfort
	
 
	
 
	
21,866
	
 
	
 
	
 
	
1,926
	
 
	
 
	
 
	
19,940
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Ken desGarennes
	
 
	
 
	
2,607,643
	
 
	
 
	
 
	
276,449
	
 
	
 
	
 
	
500,000
	
 
	
 
	
 
	
500,000
	
 
	
 
	
 
	
500,000
	
 
	
 
	
 
	
582,799
	
 
	
 
	
 
	
248,396
	
 

	
Matt Erickson
	
 
	
 
	
1,055,319
	
 
	
 
	
 
	
109,866
	
 
	
 
	
 
	
500,000
	
 
	
 
	
 
	
445,453
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Chris Morley
	
 
	
 
	
641,036
	
 
	
 
	
 
	
67,860
	
 
	
 
	
 
	
500,000
	
 
	
 
	
 
	
73,176
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Stephanie Copeland
	
 
	
 
	
129,668
	
 
	
 
	
 
	
13,626
	
 
	
 
	
 
	
116,042
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Other current and former Management
	
 
	
 
	
3,675,795
	
 
	
 
	
 
	
390,643
	
 
	
 
	
 
	
3,285,152
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
John Scarano
	
 
	
 
	
2,205,746
	
 
	
 
	
 
	
237,384
	
 
	
 
	
 
	
500,000
	
 
	
 
	
 
	
500,000
	
 
	
 
	
 
	
500,000
	
 
	
 
	
 
	
468,362
	
 
	
 
	
 
	
 
	
 

	
All Shareholder Agreement Participants
	
 
	
 
	
177,245,824
	
 
	
 
	
 
	
21,052,632
	
 
	
 
	
 
	
20,655,828
	
 
	
 
	
 
	
30,789,558
	
 
	
 
	
 
	
30,270,929
	
 
	
 
	
 
	
37,639,821
	
 
	
 
	
 
	
36,837,056

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00249-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00249-of-00352.parquet"}]]