Document:

Exhibit 10.18

 

EXECUTION VERSION

 

YANKEE CANDLE INVESTMENTS LLC

 

UNITHOLDERS AGREEMENT

 

THIS UNITHOLDERS AGREEMENT (this “Agreement”) is made as of February 8, 2011, by and among Yankee Candle Investments LLC, a Delaware limited liability company (the “Company”),  Madison Dearborn Capital Partners V-A, L.P., a Delaware limited partnership (“MDCP-A”), Madison Dearborn Capital Partners V-C, L.P., a Delaware limited partnership (“MDCP-C”) and Madison Dearborn Capital Partners V Executive-A, L.P., a Delaware limited partnership (“MDCP Executive” and collectively with MDCP-A and MDCP-C, “MDCP”).  The Persons other than MDCP listed on the Schedule of Unitholders attached hereto, as well as any other Person who, at any time, acquires Company Units in accordance with the terms of the Limited Liability Company Agreement and this Agreement are referred to herein as an “Other Unitholder” and collectively, the “Other Unitholders”.  MDCP and the Other Unitholders are collectively referred to herein as the “Unitholders” and individually as a “Unitholder.”  Except as otherwise provided herein, capitalized terms used herein are defined in Section 5 hereof.

 

WHEREAS, on the date hereof in connection with a corporate reorganization, MDCP and the other Persons listed on the Schedule of Unitholders attached hereto received Class A Common Units of the Company in exchange for the same number of Class A Common Units of YCC Holdings LLC, a Delaware limited liability company and direct subsidiary of the Company (“Intermediate Holdings”), that they held, pursuant to Exchange Agreements between each of them, the Company and Intermediate Holdings;

 

WHEREAS, on the date hereof in connection with a corporate reorganization, certain of the Persons listed on the Schedule of Unitholders attached hereto received Class B Common Units or Class C Common Units of the Company in exchange for the same number of Class B Common Units or Class C Common Units of Intermediate Holdings that they held, pursuant to the separate Exchange Agreements between each of them, the Company and Intermediate Holdings;

 

WHEREAS, certain of the Persons listed on the Schedule of Unitholders attached hereto may receive Company Units (including without limitation Class C Common Units) or other interests in the Company from time to time in the future; and

 

WHEREAS, as a result of the corporate reorganization, all Unitholders of Intermediate Holdings are exchanging their equity interests in Intermediate Holdings for identical equity interests in the Company and, accordingly, the Unitholders wish to enter into this Unitholders Agreement to replicate the rights and obligations such Unitholders had pursuant to that certain Amended and Restated Unitholders Agreement, dated as of March 15, 2008, of Intermediate Holdings.

 

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                                       Board of Managers.

 

(a)                                  From and after the date hereof, and until the provisions of this Section 1 cease to be effective, each holder of Company Units shall vote all of such holder’s Company Units that are voting Company Units and any other voting securities of the Company over which such holder has voting

 

 

control and shall take all other necessary or desirable actions within such holder’s control (whether in such holder’s capacity as a Unitholder, member, Manager, member of any committee of the Board, officer of the Company or otherwise, and including, without limitation, attendance at meetings in person or by proxy for purposes of obtaining a quorum and execution of written consents in lieu of meetings), and the Company shall take all necessary or desirable actions within its control (including, without limitation, calling special Board and member meetings) so that:

 

(i)                               the authorized number of Managers shall be initially established at seven (7) Managers and shall thereafter be comprised of such number of Managers as shall be determined from time to time by the Board;

 

(ii)                            the following individuals shall be elected to the Board:

 

(A)                              two (2) representatives designated by MDCP-A, who shall initially be Robin P. Selati and Richard Copans (the “MDCP-A Managers”);

 

(B)                                two (2) representatives designated by MDCP-C, who shall initially be George A. Peinado and Craig Rydin  (the “MDCP-C Managers” and collectively with the MDCP-A Managers, the “MDCP Managers”);

 

(C)                                the Chief Executive Officer of the Company, who shall initially be Harlan Kent; and

 

(D)                               two (2) independent representatives designated by the Board who shall initially be Trudy Sullivan and Terry Burman (the “Independent Managers”).

 

(iii)                         unless otherwise determined by the Board, the composition of the board of directors or managers of each of the Company’s Subsidiaries (a “Sub Board”) shall be the same as that of the Board;

 

(iv)                        at MDCP’s option, MDCP Managers shall constitute a majority of any committees of the Board or a Sub Board;

 

(v)                           the removal from the Board or a Sub Board of any MDCP-A Manager shall be at MDCP-A’s written request, but only upon such written request and under no other circumstances;

 

(vi)                        the removal from the Board or a Sub Board of any MDCP-C Manager shall be at MDCP-C’s written request, but only upon such written request and under no other circumstances;

 

(vii)                     in the event that any representative designated by MDCP-A or MDCP-C under clauses (ii)(A) or (ii)(B) above, as applicable, ceases to serve as a member of the Board (or a Sub Board) during his or her term of office, the resulting vacancy on the Board or the Sub Board shall be filled by a representative designated by MDCP-A or MDCP-C as provided in clauses (ii)(A) and (ii)(B) above, respectively; and

 

(viii)                   in the event that any Independent Manager ceases to serve as a member of the Board (or a Sub Board) during his or her term of office, the resulting vacancy on the Board or the Sub Board may be filled by a representative designated by the Board, or if the Board does not decide to appoint a replacement Independent Manager, may remain vacant.

 

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(b)                                 The Company shall pay the reasonable out-of-pocket expenses incurred by each Manager for any expenses incurred in connection with attending the meetings of the Board, any Sub Board and any committee thereof.  So long as any MDCP Manager serves on the Board and for five years thereafter, the Company shall maintain directors and officers indemnity insurance coverage regarding all Managers reasonably  satisfactory to MDCP and the Limited Liability Company Agreement shall provide for indemnification and exculpation of Managers to the fullest extent permitted under applicable law.

 

(c)                                  If any party fails to designate a representative to fill a managership pursuant to the terms of this Section 1, the election of an individual to such managership shall be accomplished in accordance with the Limited Liability Company Agreement, subject to such party’s right at any time thereafter to designate a representative hereunder, in which case any such individual elected pursuant to the Limited Liability Company Agreement shall cease to be a Manager.

 

(d)                                 In order to secure the obligations of each Unitholder who now or hereafter holds any voting securities in the Company to vote such Person’s Company Units in accordance with the provisions of this Section 1 and Section 4, each Unitholder hereby appoints MDCP as such Unitholder’s true and lawful proxy and attorney-in-fact, with full power of substitution, to vote all of such Unitholder’s Company Units for: (i) a Sale of the Company and all such other matters as expressly provided for in Section 4, and (ii) the election and/or removal of Managers and all such other matters as expressly provided for in this Section 1.  MDCP may exercise the irrevocable proxy granted to it hereunder by any Unitholder at any time any such Unitholder fails to comply with the provisions of this Agreement.  The proxies and powers granted by each such Unitholder pursuant to this Section 1(e) are coupled with an interest and are given to secure the performance of such Unitholder’s obligations under the provisions of this Section 1 and Section 4.  Such proxies and powers shall be irrevocable until termination of this Section 1 and Section 4 and shall survive the death, incompetency, disability, bankruptcy or dissolution of each Unitholder and the subsequent holder(s) of such Unitholder’s Company Units.  No Unitholder shall grant any proxy or become party to any voting trust or other agreement which is inconsistent with, conflicts with or violates any provision of this Agreement.

 

(e)                                  The provisions of this Section 1 shall terminate automatically and shall be of no further force and effect upon the earlier to occur of the consummation of a Sale of the Company (unless the Sale of the Company is structured as a sale of assets, in which case this Section 1 shall terminate upon the liquidation of the Company) or the consummation of an IPO.

 

2.                                       Representations and Warranties.  Each Unitholder represents and warrants that (a) such Unitholder is the record owner of the number of Company Units set forth opposite such Unitholder’s name on the Schedule of Unitholders attached hereto, as applicable, (b) this Agreement has been duly authorized, executed and delivered by such Unitholder and constitutes the valid and binding obligation of such Unitholder, enforceable in accordance with its terms, and (c) such Unitholder has not granted and is not a party to any proxy, voting trust or other agreement which is inconsistent with, conflicts with or violates any provision of this Agreement.

 

3.                                       Restrictions on Transfer of Company Units.

 

(a)                                  Transfer of Company Units.  No holder of Company Units (other than MDCP (subject to Section 3(c) hereunder)) shall sell, transfer, assign, pledge or otherwise directly or indirectly dispose of (whether with or without consideration and whether voluntarily or involuntarily or by operation of law) (a “Transfer”) any interest in such holder’s Company Units, except (i) pursuant to the provisions of this Section 3, (ii) pursuant to a Sale of the Company or a Section 351 Transaction, (iii) Transfers to Permitted Transferees or (iv) in connection with the Company’s or MDCP’s exercise of the Repurchase Rights.  In no event shall any Transfer of Company Units be made for any consideration other

 

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than cash payable upon consummation of such Transfer or in installments over time.  Transfers described in clauses (ii) through (iv) above are referred to herein, collectively, as “Exempt Transfers.”

 

(b)                                 Right of First Refusal for Class A Common Units.

 

(i)                                     At least sixty (60) days prior to making any Transfer (other than an Exempt Transfer) of any Class A Common Units, any holder (other than MDCP) of Class A Common Units desiring to make such Transfer (the “Transferring Unitholder”) shall deliver a written notice (the “Offer Notice”) to the Company and MDCP.  The Offer Notice shall disclose in reasonable detail the identity of the prospective transferee(s), the number of Class A Common Units to be transferred and the terms and conditions of the proposed Transfer, and the Offer Notice shall constitute a binding offer to sell the Class A Common Units on such terms and conditions.

 

(ii)                                  The Company (or its designee(s)) may first elect to purchase all or any portion of the Class A Common Units to be transferred at the same price and upon the same terms and conditions as those set forth in the Offer Notice by delivering a written notice of such election (the “Company Election Notice”) to the Transferring Unitholder and MDCP within thirty (30) days after the Offer Notice has been given to the Company and MDCP (the “Company Election Period”).  The Company Election Notice shall set forth the number of Class A Common Units which the Company has elected to purchase and the number of Class A Common Units, if any, which are available for purchase by MDCP (the “Available Units”).

 

(iii)                               If for any reason the Company does not elect to purchase all or any portion of such Class A Common Units within thirty (30) days after the Company’s receipt of the Offer Notice, MDCP shall then be entitled to purchase all or any remaining portion, as applicable, of the Available Units at the same price and upon the same terms and conditions as those set forth in the Offer Notice by delivering written notice of such election (the “MDCP Election Notice”) to the Transferring Unitholder and the Company within thirty (30) days after such holder’s receipt of the Company Election Notice or the expiration of the Company Election Period if no Company Election Notice is delivered (such period, the “MDCP Election Period”).  The MDCP Election Notice shall set forth the number of Class A Common Units which MDCP desires to purchase.

 

(iv)                              To the extent that the Company (or its designee(s)) and MDCP have not individually or collectively elected to purchase all of the Class A Common Units specified in the Offer Notice, the Transferring Unitholder may Transfer all of the remaining Class A Common Units specified in the Offer Notice at a price and on terms no more favorable to the transferee(s) than specified in the Offer Notice during the 30-day period immediately following the expiration of the MDCP Election Period; provided that no such Transfer shall be consummated if the transferee(s) (A) is, or is an Affiliate of, a competitor, supplier or wholesale customer of the Company or its Subsidiaries, (B) has commenced or has threatened to commence any action, suit, litigation, arbitration or proceeding against the Company, its Affiliates or any of its members, (C) has been convicted of or plead guilty to a securities law violation or a felony or (D) is not reasonably acceptable to MDCP.  Any Class A Common Units not transferred within such 30-day period shall be subject to the provisions of this Section 3(b) in connection with any subsequent Transfer.  If the Company or MDCP has elected to purchase Class A Common Units hereunder, the Transfer of such Class A Common Units shall be consummated as soon as practical after the delivery of the election notice(s) to the Transferring Unitholder, but in any event within 90 days after delivery of the Offer Notice.

 

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(c)                                  Participation Rights. At least fifteen (15) days prior to any Transfer (other than an Exempt Transfer or a Transfer by MDCP to employees of the Company or any of its Affiliates) of Class A Common Units by MDCP which represents more than the Exempt Amount (when taking into account the aggregate Transfers (other than (x) an Exempt Transfer and (y) a Transfer by MDCP to employees of the Company or any of its Affiliates) made by MDCP after the date hereof), MDCP shall deliver a written notice (the “Tag-Along Sale Notice”) to the Company and each other holder of Class A Common Units, which notice shall specify in reasonable detail (i) the number of Class A Common Units to be sold, (ii) the purchase price of the Class A Common Units being sold, (iii) the material terms and conditions of such proposed Transfer and (iv) the identity of the proposed transferee(s).  Each holder of Class A Common Units may elect to become a “Participating Unitholder” with respect to such proposed Transfer by delivering to MDCP and the Company within ten (10) days after delivery of the Tag-Along Sale Notice a written notice, stating that such Unitholder has elected to be a Participating Unitholder in respect of such Transfer.  The amount of Class A Common Units which may be sold by MDCP and each Participating Unitholder in any such Transfer shall be determined by multiplying (i) the quotient determined by dividing the percentage of Class A Common Units owned by such Person by the aggregate percentage of Class A Common Units owned by MDCP and the Participating Unitholders and (ii) the number of Class A Common Units to be sold in the contemplated Transfer.

 

For example, if the Tag-Along Sale Notice contemplated a sale of 100 Class A Common Units by MDCP, and if MDCP at such time owns 60% of all Class A Common Units and if one other Unitholder elects to participate and owns 20% of all Class A Common Units, MDCP would be entitled to sell 75 Class A Common Units (60% ÷ 80% x 100 Class A Common Units) and the Participating Unitholder would be entitled to sell 25 Class A Common Units (20% ÷ 80% x 100 Class A Common Units).

 

Any of the Participating Unitholders may elect to sell in any Transfer contemplated under this Section 3(c) a lesser number of Class A Common Units than such Participating Unitholder is entitled to sell hereunder, in which case MDCP shall have the right to sell an additional number of Class A Common Units in such Transfer equal to the number that such Participating Unitholder has elected not to sell.  MDCP will use reasonable efforts to obtain the agreement of the prospective transferee(s) to the participation of the Participating Unitholders in any contemplated Transfer and shall not consummate any such Transfer unless (i) each Participating Unitholder is permitted to sell in such Transfer Class A Common Units which such Participating Unitholder is entitled to sell hereunder in the amount and on the terms set forth in this Section 3(c) or (ii) MDCP agrees to purchase, contemporaneously with the closing of the contemplated Transfer, the number of Class A Common Units from the Participating Unitholders which such Unitholders would have been entitled to sell hereunder and which the prospective transferee(s) have not agreed to purchase from such Participating Unitholder(s) on the terms set forth in this Section 3(c).  Each Unitholder transferring Class A Common Units pursuant to this Section 3(c) shall pay its allocable share (based on such Unitholder’s percentage of the total proceeds to be received in such Transfer) of the expenses incurred by the Unitholders in connection with such transfer and shall be obligated to join on a pro rata basis (based on such Unitholder’s percentage of the total proceeds to be received in such Transfer) in any indemnification or other obligations that MDCP agrees to provide in connection with such transfer (other than any such obligations that relate specifically to a particular Unitholder such as indemnification with respect to representations and warranties given by a Unitholder regarding such Unitholder’s title to and ownership of Class A Common Units); provided that no holder shall be obligated in connection with such Transfer to agree to indemnify or hold harmless the transferees with respect to an amount in excess of the net cash proceeds paid to such holder in connection with such Transfer.

 

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(d)                                 Permitted Transferees.  The restrictions set forth in this Section 3 shall not apply with respect to any Transfer of Company Units (other than unvested Class B Common Units or unvested Class C Common Units, which are not Transferable unless expressly provided otherwise in any agreement between the Company and a holder of Class B Common Units or Class C Common Units, as applicable) (i) by any Unitholder pursuant to applicable laws of descent and distribution or among such Unitholder’s Family Group (provided that Company Units may not be Transferred to a Unitholder’s spouse in connection with a divorce proceeding, unless otherwise ordered by a court of competent jurisdiction), and (ii) in the case of MDCP, to any Affiliate (collectively the transferees contemplated by clauses (i) and (ii) are referred to herein as “Permitted Transferees”); provided that the restrictions contained in this Section 3 shall continue to be applicable to the Company Units after any such Transfer and that the transferees of Company Units shall have agreed in writing to be bound by the provisions of this Agreement affecting the Company Units so transferred; and provided further that, except as otherwise provided for in any agreement between MDCP and any of its Permitted Transferees, such Permitted Transferee of MDCP shall succeed to all rights attributable to MDCP hereunder.  Notwithstanding the foregoing, no Unitholder shall avoid the provisions of this Agreement by making one or more transfers to one or more Permitted Transferees and then disposing of all or any portion of such Unitholder’s interest in any such Permitted Transferee.

 

(e)                                  Termination of Restrictions.  The restrictions on the Transfer of Company Units set forth in this Section 3 shall continue with respect to each Company Unit until the earliest to occur of (i) the consummation of an IPO, (ii) the date on which such Company Units have been transferred in a Public Sale and (iii) the consummation of a Sale of the Company.

 

4.                                       Sale of Company.

 

(a)                                  Third Party Transaction.  Subject to the terms of this Section 4, if MDCP approves a Sale of the Company (and, in the case of any sale or other fundamental change which requires the approval of the managers of a Delaware manager-managed limited liability company pursuant to applicable Delaware law, the Board shall have approved such Sale of the Company), and MDCP notifies the holders of Company Units that it is invoking the provisions of this Section 4, the holders of Company Units shall vote for (to the extent permitted to vote for) and shall be deemed to have consented to and agree to raise no objections against (and to confirm such consent in writing) the Sale of the Company or the process by which such transaction was arranged.  If the Sale of the Company is structured as a (i) merger or consolidation, each holder of Company Units shall waive any dissenters’ rights, appraisal rights or similar rights in connection with such merger or consolidation or (ii) sale of Company Units or other equity securities or interests, each holder of Company Units shall agree to sell and surrender all of such holder’s Company Units and rights to acquire Company Units on the terms and conditions approved by MDCP and the Board (to the extent required by applicable Delaware law).  The holders of Company Units shall take all necessary or desirable actions in connection with the consummation of the Sale of the Company, including executing a sale contract pursuant to which each holder of Company Units will: (i) severally (but not jointly) make the same representations, warranties and indemnities regarding the Company and its assets, liabilities and business (collectively, the “Company Reps”) and (ii) solely on behalf of such holder, make such representations, warranties and indemnities concerning such holder and the Company Units (if any) to be sold by such holder as may be set forth in any agreement approved by MDCP and the Board (to the extent required by applicable Delaware law); provided  that: (A) the pro rata share of a holder of Company Units for any amounts payable in connection with any claim under the Company Reps by the purchaser(s) in such Sale of the Company transaction shall be determined in accordance with Section 4(d) below (any such amount payable, a “Company Loss”), and (B) if any holder of Company Units pays for more than such holder’s pro rata share of a Company Loss (such amount, the “Loss Overpayment”), then each other holder of Company Units will simultaneously contribute to such holder an amount equal to such other holder’s allocable share (based upon such holder’s pro rata share of

 

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the Company Loss) of such Loss Overpayment.  Notwithstanding anything to the contrary contained herein, no holder of Company Units shall be liable for any Company Loss in an amount (either individually or in the aggregate) greater than the total consideration received by such holder in connection with such Sale of the Company.

 

(b)                                 Right to Participate.  In the event that a Sale of the Company involves a sale of less than all of the Company Units, each holder of Class B Common Units and Class C Common Units shall be entitled to sell his, her or its Class B Common Units and/or Class C Common Units, as applicable, in such Sale of the Company, subject to complying with the terms and conditions set forth in this Section 4.  The number of Class B Common Units and/or Class C Common Units which may be sold by each holder of Class B Common Units and Class C Common Units participating in such Sale of the Company shall be equal to the product of (i) the aggregate number of Class B Common Units and/or Class C Common Units owned by such holder multiplied  by (ii) a fraction, the numerator of which is equal to aggregate number of Company Units being sold by MDCP in such sale and the denominator of which is equal to the aggregate number of Company Units owned by MDCP at the time of such sale.  Each holder of Class B Common Units and Class C Common Units may elect to sell in any Sale of the Company a lesser number of Class B Common Units or Class C Common Units than such holder is entitled to sell hereunder.  MDCP shall provide each holder of Class B Common Units and Class C Common Units with written notice of the Sale Proceeds Amount allocable to each Class A Common Unit, Class B Common Unit and Class C Common Unit promptly after such amounts have been determined.  Upon receiving such notice, each holder of Class B Common Units and Class C Common Units shall have the option to revoke his, her or its election to sell Class B Common Units or Class C Common Units in the Sale of the Company (in which case, the Sale Proceeds Amount shall be recalculated based on the revised number of Company Units being sold in the Sale of the Company).

 

(c)                                  Conditions to Obligation.  The obligations of the holders of Company Units to participate in a Sale of the Company are subject to the satisfaction of the following conditions: (i) upon consummation of the Sale of the Company, all holders of Company Units shall receive the proceeds from such sale in accordance with the terms of Section 4(d) below, and if the holders of any class of Company Units are given an option as to the form of consideration to be received, all holders of each class of Company Units shall be given the same option subject to Section 4(d) below; provided that the condition that each holder is provided with the same option to receive the same form of consideration as set forth above shall be deemed satisfied even if certain holders elect to receive, to the exclusion of others, securities of the acquiring Person or any of its Affiliates, so long as each holder of the same class of Company Units receives the same amount of value, whether in cash or such securities, as of the closing of such Sale of the Company with respect to such holder’s Company Units of such class; and (ii) all holders of then currently exercisable rights to acquire Company Units (including Company Units that become (or would become) vested and exercisable in connection with a Sale of the Company) shall be given an opportunity to exercise such rights prior to the consummation of the Sale of the Company and participate in such sale as holders of Company Units.  For the avoidance of doubt, the Unitholders and the Company acknowledge and agree that no Management Purchaser may be required to enter into non-competition or similar restrictive covenants in connection with a Sale of the Company that are more burdensome than the non-competition or similar restrictive covenants that such Management Purchaser is a party to in connection with his or her employment or engagement by the Company or any of its Subsidiaries.

 

(d)                                 Distribution of Proceeds; Allocable Share of Company Loss and Expenses.  In the event a Sale of the Company occurs (whether under this Section 4 or otherwise), each holder of Company Units shall receive in exchange for the Company Units held by such holder an amount equal to such amount that such holder would have received in respect of such holder’s Company Units if the aggregate consideration (after satisfaction or assumption of all debts and liabilities) from such Sale of the Company had been distributed by the Company in a complete liquidation of the Company in accordance

 

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with (including, without limitation, in the order of priority as set forth in) the terms of the Limited Liability Company Agreement (and, if less than all of the Company Units of the Company are included in such transaction, then the allocation of such aggregate net consideration shall be determined as if the Company Units included in such transaction were all of the Company Units of the Company then outstanding, and, for purposes of this Section 4(d), the terms of the Limited Liability Company Agreement shall be interpreted consistent with this assumption) (such amount is referred to herein as the “Sale Proceeds Amount”).  The pro rata share of each holder of Company Units of any Company Loss shall be an amount equal to the amount by which such holder’s Sale Proceeds Amount would have been reduced had the aggregate consideration from such Sale of the Company been distributed by the Company in accordance with the sentence immediately foregoing after deducting from such aggregate consideration the aggregate amount of such Company Loss.  Each Unitholder will bear such Unitholder’s pro rata share of the expenses incurred in connection with such Sale of the Company to the extent such expenses are incurred for the benefit of all Unitholders and are not otherwise paid by the Company or the acquiring party, with such Unitholder’s pro rata share being calculated in the same manner as set forth in the prior sentence.  For purposes of this Section 4(d), expenses incurred in exercising reasonable efforts to take all necessary actions in connection with the consummation of the Sale of the Company shall be deemed to be for the benefit of all Unitholders.  Expenses incurred by any Unitholder on such Unitholder’s own behalf shall not be considered expenses of the transaction and shall be the responsibility of such Unitholder.  Each holder of Company Units shall take all necessary or desirable actions in connection with the distribution of the aggregate consideration from such Sale of the Company as requested by the Board.

 

(e)                                  Termination.  The provisions of this Section 4 shall terminate upon the consummation of an IPO.

 

5.                                       Definitions.

 

“Affiliate” has the meaning assigned to that term in the Limited Liability Company Agreement.

 

“Agreement” has the meaning set forth in the preamble.

 

“Available Units” has the meaning set forth in Section 3(c).

 

“Board” has the meaning set forth in the recitals to this Agreement.

 

“Class A Common Units” has the meaning assigned to that term in the Limited Liability Company Agreement.

 

“Class B Common Units” has the meaning assigned to that term in the Limited Liability Company Agreement.

 

“Class C Common Units” has the meaning assigned to that term in the Limited Liability Company Agreement.

 

“Common Units” has the meaning assigned to that term in the Limited Liability Company Agreement.

 

“Company” has the meaning set forth in the preamble.

 

“Company Election Notice” has the meaning set forth in Section 3(b)(ii).

 

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“Company Loss” has the meaning set forth in Section 4(a).

 

“Company Reps” has the meaning set forth in Section 4(a).

 

“Company Units” means (i) any Common Units purchased or otherwise acquired or held by any Unitholder, (ii) any unvested Class B Common Units and unvested Class C Common Units, (iii) any Common Units issued or issuable directly or indirectly upon the exercise or exchange of any securities purchased or otherwise acquired by any Unitholder, which are convertible into or exercisable or exchangeable for the Company Units described in clause (i) (including any options to purchase Company Units granted by the Company) and (iv) any Common Units issued or issuable directly or indirectly with respect to the securities referred to in clauses (i), (ii) or (iii) above by way of a unit distribution or unit split or in connection with a combination of units, recapitalization, merger, consolidation or other reorganization (including any equity securities issued in connection with the conversion of the Company from a limited liability company to a corporation as contemplated in  Section 14.1 of the Limited Liability Company Agreement or otherwise).  As to any particular securities constituting Company Units hereunder, such securities shall cease to be Company Units when they have been sold in a Public Sale.

 

“Exempt Amount” means an amount equal to 15% of the number of Class A Common Units held by MDCP as of the date hereof.

 

“Exempt Transfers” has the meaning set fort in Section 3(a).

 

“Family Group” means an individual’s spouse and descendants (whether natural or adopted) and any trust solely for the benefit of such individual and/or the individual’s spouse and/or descendants.

 

“IPO” has the meaning assigned to that term in the Limited Liability Company Agreement.

 

“Limited Liability Company Agreement” means the Company’s Amended and Restated Limited Liability Company Agreement, dated as of the date hereof, as the same may be amended, supplemented or otherwise modified from time to time in accordance with its terms.

 

“Management Holder” means a holder of Company Units which were initially issued to a Management Purchaser, it being acknowledged and agreed that, if any Company Units originally issued to a Management Purchaser are Transferred by such Management Purchaser to a Permitted Transferee, such Permitted Transferee shall be deemed to be a Management Holder with respect to such Company Units.

 

“Management Purchasers” has the meaning assigned to that term in the Limited Liability Company Agreement.

 

“Manager” has the meaning assigned to that term in the Limited Liability Company Agreement.

 

“MDCP” has the meaning set forth in the preamble.

 

“MDCP Election Notice” has the meaning set forth in Section 3(b)(iii).

 

“MDCP Election Period” has the meaning set forth in Section 3(b)(iii).

 

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“Member” has the meaning assigned to that term in the Limited Liability Company Agreement.

 

“Offer Notice” has the meaning set forth in Section 3(b)(i).

 

“Other Unitholders” has the meaning set forth in the preamble.

 

“Participating Unitholder” has the meaning set forth in Section 3(c).

 

“Permitted Transferees” has the meaning set forth in Section 3(d).

 

“Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization and a governmental entity or any department, agency or political subdivision thereof.

 

“Public Sale” means any sale of Company Units (i) by the Company, its corporate successor (as contemplated by Section 14.1 of the Limited Liability Company Agreement) or Yankee Holding of its equity securities pursuant to a registration statement filed under the Securities Act or (ii) to the public pursuant to Rule 144 (other than Rule 144(b)(1)(ii) prior to an IPO) under the Securities Act (or any similar rule then in effect) effected through a broker, dealer or market maker.

 

“Repurchase Rights” means the right of the Company and MDCP to repurchase Company Units from any director, officer, employee or consultant of the Company and/or its Subsidiaries upon the termination of employment or of a consulting arrangement or other event pursuant to an agreement approved by the Board.

 

“Sale of the Company” has the meaning assigned to that term in the Limited Liability Company Agreement.

 

“Section 351 Transaction” has the meaning assigned to that term in the Limited Liability Company Agreement.

 

“Securities Act” means the Securities Act of 1933, as amended from time to time.

 

“Sub Board” has the meaning set forth in Section 1(a).

 

“Subsidiary” means, with respect to any Person, any corporation, limited liability company, partnership, association or other business entity of which (i) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (ii) if a limited liability company, partnership, association or other business entity, a majority of the limited liability company, partnership or other similar ownership interest thereof is at the time owned or controlled, directly or indirectly, by any Person or one or more Subsidiaries of that Person or a combination thereof.  For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a limited liability company, partnership, association or other business entity if such Person or Persons shall be allocated a majority of limited liability company, partnership, association or other business entity gains or losses or shall be or control the managing director or general partner of such limited liability company, partnership, association or other business entity.

 

“Tag-Along Sale Notice” has the meaning set forth in Section 3(c).

 

10

 

“Transfer” has the meaning set forth in Section 3(a).

 

“Transfer Amount” has the meaning set forth in Section 3(a).

 

“Transferring Unitholder” has the meaning set forth in Section 3(b)(i).

 

“Unitholders” has the meaning set forth in the preamble.

 

“Yankee Holding” means the Company’s indirect, wholly-owned subsidiary, Yankee Holding Corp., a Delaware corporation.

 

6.                                       Outside Activities.  Notwithstanding anything to the contrary herein or in the Limited Liability Company Agreement and except as may be provided otherwise in any separate agreement with the Company or its Subsidiaries, (i) each MDCP Manager, in his or her capacity as such, may at any time and from time to time (directly or indirectly) engage in and own interests in other business ventures of any and every type and description, independently or with others with no obligation to offer to the Company or any other Unitholder, Member, Manager or officer the right to participate therein, and (ii) neither the Company nor any Unitholder, Member, Manager or officer of the Company shall have any rights by virtue of this Agreement, the Limited Liability Company Agreement or the limited liability company relationship created thereby in any such business interests or activities of any such Person.

 

7.                                       Legend.  If the Company Units are certificated, each certificate evidencing Company Units and each certificate issued in exchange for or upon the Transfer of any Company Units (if such Company Units remain Company Units after such Transfer) shall be stamped or otherwise imprinted with the legend set forth in  Section 12.8 of the Limited Liability Company Agreement.  Upon the request of the holder thereof, the portion of such legend referencing this Agreement shall be removed from the certificates evidencing any Company Units which cease to be Company Units in accordance with the definition thereof.

 

8.                                       Issuance and Transfer of Company Units.  Prior to Transferring any Company Units (other than pursuant to a Public Sale, a Sale of the Company or a Section 351 Transaction) to any Person, the transferring holder of Company Units shall cause the prospective transferee to be bound by this Agreement and to execute and deliver to the Company and the other Unitholders a counterpart of or joinder to this Agreement.  A Transfer shall also eliminate a Unitholder’s right, if any, to participate in the sale, issuance or Transfer of any Company Units pursuant to Section 3 with respect to any such Company Units which such Unitholder has Transferred.

 

9.                                       Transfers in Violation of Agreement.  Any Transfer or attempted Transfer of any Company Units in violation of any provision of this Agreement or the Limited Liability Company Agreement shall be void, and the Company shall not record such Transfer on its books or treat any purported transferee of such Company Units as the owner of such Company Units for any purpose.

 

10.                                 Amendment and Waiver.  Except as otherwise provided herein, no modification, amendment or waiver of any provision of this Agreement shall be effective against the Company or the Unitholders unless such modification, amendment or waiver is approved in writing by the Company, MDCP (so long as MDCP and its Permitted Transferees hold any Company Units) and the holders of a majority of the Class A Common Units (determined on a fully diluted basis); provided that: (a) any modification or amendment to this Agreement which adversely affects the rights or obligations of a Member in respect of any Company Units in a manner which is disproportionately adverse to such Member relative to such rights or obligations of other Unitholders in respect of the Company Units of the same class or type shall be effective only with such Member’s consent; (b) an amendment or modification

 

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that would affect any class of Company Units in a manner materially adverse to any other class of Company Units or materially adverse solely to such class of Company Units, shall be effective against the holders of that class of Company Units so materially adversely affected only with the prior written consent of the holders of at least a majority of such class of Company Units and (c) any amendment or modification reducing the required interest for any consent or vote in this Agreement shall be effective only with the consent or vote of the Member(s) having the interest theretofore required.  The failure of any Unitholder or the Company to enforce any of the provisions of this Agreement shall in no way be construed as a waiver of such provisions and shall not affect the right of such Unitholder or the Company, as applicable, thereafter to enforce each and every provision of this Agreement in accordance with its terms.  The execution of a counterpart of or joinder to this Agreement solely for the purpose of adding of any Person as an Other Unitholder shall not constitute a modification, amendment, or waiver of this Agreement.

 

11.                                 Severability.  Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect the validity, legality or enforceability of any other provision of this Agreement in such jurisdiction or affect the validity, legality or enforceability of any provision in any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

 

12.                                 Entire Agreement.  Except as otherwise expressly set forth herein, this Agreement and the other agreements entered into by the Unitholders and the Company as of the date hereof, including the Limited Liability Company Agreement, and any other agreement pursuant to which particular Company Units (or rights to acquire Company Units) were issued, embody the complete agreement and understanding among the Unitholders and the Company with respect to the subject matter hereof and supersede and preempt any prior understandings, agreements or representations by or among the Unitholders and the Company, written or oral, which may have related to the subject matter hereof in any way (including without limitation that certain Amended and Restated Unitholders Agreement of Intermediate Holdings, dated as of March 15, 2008, which is hereby terminated and of no further force and effect).  The Limited Liability Company Agreement is hereby incorporated herein in its entirety and made a part hereof as if fully set forth herein.

 

13.                                 Successors and Assigns.  Except as otherwise provided herein, this Agreement shall bind and inure to the benefit of and be enforceable by the Company and its successors and assigns and the Unitholders and any subsequent holders of Company Units and the respective successors and assigns of each of them, so long as they hold Company Units, as applicable.

 

14.                                 Counterparts.  This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which taken together shall constitute one and the same agreement.

 

15.                                 Remedies.  The Company and the Unitholders shall be entitled to enforce their rights under this Agreement specifically, to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights existing in their favor.  The Unitholders and the Company agree and acknowledge that money damages would not be an adequate remedy for any breach of the provisions of this Agreement and that the Company or any Unitholder may in its sole discretion apply to any court of law or equity of competent jurisdiction for specific performance and/or injunctive relief (without posting a bond or other security) in order to enforce or prevent any violation of the provisions of this Agreement.

 

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16.                                 Notices.  Any notice provided for in this Agreement shall be in writing and shall be either personally delivered, given by facsimile to the facsimile number set forth below, or mailed first class mail (postage prepaid and return receipt requested) or sent by reputable overnight courier service (charges prepaid) to the Company at the address set forth below and to any other recipient at the facsimile number or address indicated on the schedules hereto and to any subsequent holder of Company Units subject to this Agreement at such facsimile number or address as indicated by the Company’s records, or at such address or to the attention of such other person as the recipient party has specified by prior written notice to the sending party.  Notices shall be deemed to have been given hereunder when delivered personally, when confirmation of facsimile has been received by the sender, three days after deposit in the U.S. mail and one day after deposit with a reputable overnight courier service.  The Company’s address is:

 

Yankee Candle Investments LLC
 c/o The Yankee Candle Company, Inc.
 16 Yankee Candle Way
 South Deerfield, MA 01373
 Facsimile: (413) 665-9147
 Attention:              General Counsel

 

with copies (which shall not constitute notice) to:

 

Madison Dearborn Partners, LLC 
 Three First National Plaza, Suite 4600
 Chicago, IL 60602
 Facsimile: (312) 895-1001 
 Attention:              Robin P. Selati
                                                                       George Peinado

 

Kirkland & Ellis LLP
 300 North LaSalle
 Chicago, Illinois  60654
 Facsimile: (312) 862-2200
 Attention:              Michael D. Paley
                                                                       Tana M. Ryan

 

17.                                 Additional Agreements.  Except with respect to those provisions of this Agreement that terminate upon the consummation of an IPO, in connection with the conversion of the Company from a limited liability company to a corporation as contemplated in  Section 14.1 of the Limited Liability Company Agreement or otherwise, the Unitholders hereby covenant and agree to enter into a stockholders agreement containing obligations substantially similar to those provided herein.

 

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

 

19.                                 Waiver of Jury Trial.  As a specifically bargained for inducement for each of the Unitholders and the Company to enter into this Agreement (after having the opportunity to consult with counsel), each Unitholder and the Company expressly waives the right to trial by jury in any lawsuit or proceeding relating to or arising in any way from this Agreement or the matters contemplated hereby.

 

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20.                                 No Strict Construction.  The Unitholders and the Company hereto have participated jointly in the negotiation and drafting of this Agreement.  In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Unitholders and the Company, and no presumption or burden of proof shall arise favoring or disfavoring any Unitholder or the Company by virtue of the authorship of any of the provisions of this Agreement.

 

21.                                 Descriptive Headings.  The descriptive headings of this Agreement are inserted for convenience only and do not constitute a part of this Agreement.

 

*      *      *      *

 

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IN WITNESS WHEREOF, the parties hereto have executed this Unitholders Agreement on the day and year first above written.

 

	
 
    	
YANKEE   CANDLE INVESTMENTS LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Harlan Kent
    
	
 
    	
Name:   Harlan Kent
    
	
 
    	
Its:   Chief Executive Officer
    

 

Signature Page to Unitholders Agreement

 

 

	
 
    	
MADISON   DEARBORN CAPITAL PARTNERS V-A, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
Madison   Dearborn Partners V-A&C, L.P.
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Madison   Dearborn Partners, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robin P. Selati
    
	
 
    	
Name:   Robin P. Selati
    
	
 
    	
Its:   Managing Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
MADISON   DEARBORN CAPITAL PARTNERS V-C, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
Madison   Dearborn Partners V-A&C, L.P.
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Madison   Dearborn Partners, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robin P. Selati
    
	
 
    	
Name:   Robin P. Selati
    
	
 
    	
Its:   Managing Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
MADISON   DEARBORN CAPITAL PARTNERS V EXECUTIVE-A, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
Madison   Dearborn Partners V-A&C, L.P.
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Madison   Dearborn Partners, LLC
    
	
 
    	
Its:
    	
General   Partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robin P. Selati
    
	
 
    	
Name:   Robin P. Selati
    
	
 
    	
Its:   Managing Director
    
				

 

Signature Page to Unitholders Agreement

 

 

	
 
    	
/s/   Howard Baron
    
	
 
    	
Howard   Baron
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Kimberly Biggs
    
	
 
    	
Kimberly   Biggs
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Diane Bonvissuto
    
	
 
    	
Diane   Bonvissuto
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Terry Burman
    
	
 
    	
Tery   Burman
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   John Cagle
    
	
 
    	
John   Cagle
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Marc Campbell
    
	
 
    	
Marc   Campbell
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Denis Cloutier
    
	
 
    	
Denis   Cloutier
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Ruth Considine
    
	
 
    	
Ruth   Considine
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   David Crawford
    
	
 
    	
David   Crawford
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Christopher Delello
    
	
 
    	
Christopher   Delello
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Edward Dolan
    
	
 
    	
Edward   Dolan
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Dorrin Exford
    
	
 
    	
Dorrin   Exford
    

 

Signature Page to Unitholders Agreement

 

 

	
 
    	
/s/   Stephen Farley
    
	
 
    	
Stephen   Farley
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Tom Fitch
    
	
 
    	
Tom   Fitch
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Karen Fortin
    
	
 
    	
Karen   Fortin
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Christopher Fortson
    
	
 
    	
Christopher   Fortson
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Denise Gagne
    
	
 
    	
Denise   Gagne
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Clive Harper
    
	
 
    	
Clive   Harper
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Douglas Higginbotham
    
	
 
    	
Douglas   Higginbotham
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Greg Hunt
    
	
 
    	
Greg   Hunt
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Jeffrey Jutsum
    
	
 
    	
Jeffrey   Jutsum
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Mark Kennedy
    
	
 
    	
Mark   Kennedy
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Harlan Kent
    
	
 
    	
Harlan   Kent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Mark Kolasinski
    
	
 
    	
Mark   Kolasinski
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Martha LaCroix
    
	
 
    	
Martha   LaCroix
    

 

Signature Page to Unitholders Agreement

 

 

	
 
    	
/s/   Timothy Lee
    
	
 
    	
Timothy   Lee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Hope Margala Klein
    
	
 
    	
Hope   Margala Klein
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Lisa McCarthy
    
	
 
    	
Lisa   McCarthy
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Allison Bleyler McDonald
    
	
 
    	
Allison   Bleyler McDonald
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Ben Menezes
    
	
 
    	
Ben   Menezes
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Beth Moeri
    
	
 
    	
Beth   Moeri
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Sarah Mullins
    
	
 
    	
Sarah   Mullins
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Deborah Norris
    
	
 
    	
Deborah   Norris
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   John O’Neil
    
	
 
    	
John   O’Neil
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   James Ovitt
    
	
 
    	
James   Ovitt
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Heidi Partain
    
	
 
    	
Heidi   Partain
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   James Perley
    
	
 
    	
James   Perley
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Leslie Picard
    
	
 
    	
Leslie   Picard
    

 

Signature Page to Unitholders Agreement

 

 

	
 
    	
/s/   Susanne Pruyne
    
	
 
    	
Susanne   Pruyne
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Steven Richardson
    
	
 
    	
Steven   Richardson
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Arthur Rubeck
    
	
 
    	
Arthur   Rubeck
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Craig Rydin
    
	
 
    	
Craig   Rydin
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Debra Scharrer
    
	
 
    	
Debra   Scharrer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Dennis Shockro
    
	
 
    	
Dennis   Shockro
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Doreen Smith
    
	
 
    	
Doreen   Smith
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Dana Springfield
    
	
 
    	
Dana   Springfield
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Diane Sullivan
    
	
 
    	
Diane   Sullivan
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Trudy Sullivan
    
	
 
    	
Trudy   Sullivan
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Alex Theoharides
    
	
 
    	
Alex   Theoharides
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Cheriyan Thomas
    
	
 
    	
Cheriyan   Thomas
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Michael Thorne
    
	
 
    	
Michael   Thorne
    

 

Signature Page to Unitholders Agreement

 

 

	
 
    	
/s/   Anthony Villani
    
	
 
    	
Anthony   Villani
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Alexander Winiecki
    
	
 
    	
Alexander   Winiecki
    

 

Signature Page to Unitholders Agreement

 

 

SCHEDULE OF UNITHOLDERS

 

(Redacted)Exhibit 10.19

 

EXECUTION VERSION

 

YANKEE CANDLE INVESTMENTS LLC

 

CLASS A UNIT EXCHANGE AGREEMENT

 

THIS CLASS A UNIT EXCHANGE AGREEMENT (this “Agreement”) is made as of February 8, 2011, by and between Yankee Candle Investments LLC, a Delaware limited liability company (the “Company”), and «First_Name» «Last_Name» (“Recipient”).  Capitalized terms used but not otherwise defined herein or in the LLC Agreement (as defined below) shall have the meanings set forth in Section 9 hereof.

 

WHEREAS, pursuant to that certain Class A Unit Purchase Agreement, dated as of «A_Original_Grant_Date», by and between YCC Holdings LLC (“Intermediate Holdings”) and Recipient (the “Original Purchase Agreement”), Recipient is the holder of «A_Units» of Class A Common Units of Intermediate Holdings (the “Existing Units”);

 

WHEREAS, the Company and Recipient desire to exchange the Existing Units for the same number of Class A Common Units of the Company (the “New Units”) and which such exchange is intended to be governed by the provisions of Code § 351; and

 

WHEREAS, Recipient has agreed to effect an exchange of the Existing Units for the New Units and, subject to the terms and conditions set forth herein, the Company has agreed to exchange the Existing Units for the New Units.

 

NOW THEREFORE, in consideration of the premises and the mutual promises herein made, and in consideration of the representations, warranties, and covenants herein contained, the parties hereto agree as follows:

 

1.                                       Exchange for New Units.

 

(a)                                  The Company has authorized the issuance to Recipient, in exchange for the Existing Units, the New Units, and upon surrender by the Recipient of the Existing Units free and clear of all liens and encumbrances, hereby issues to Recipient the New Units.  Each New Unit issued hereunder shall be fully vested when issued.  The Recipient authorizes Intermediate Holdings to deliver the certificate(s), if any, representing such Existing Units to the Company for cancellation.

 

(b)                                 Without in any way limiting the representations and warranties contained herein, each of the parties hereto intends that the exchange transaction contemplated by Section 1(a) qualify as part of an exchange of property by Recipient for an interest in a corporation under Section 351 of the Internal Revenue Code of 1986, as amended.  Each of the parties hereto shall prepare and file all tax returns in a manner consistent with such treatment.  Notwithstanding anything to the contrary contained herein, the Recipient hereby agrees and acknowledges that neither the Company nor any of its Affiliates is making any representations with respect to any tax, economic or legal consequences of the exchange transaction contemplated by Section 1(a), and the Recipient agrees to accept the tax and legal consequences of the exchange transactions contemplated by Section 1(a).

 

2.                                       Exchange Terms.  Recipient, intending to be legally bound, hereby irrevocably subscribes for the New Units and exchanges the Existing Units for the New Units on the terms and conditions set forth herein, in the Company’s Amended and Restated Limited Liability Company Agreement, dated as of the date hereof (as the same may be amended, supplemented or otherwise modified from time to time in accordance with its terms, the “LLC Agreement”) and in that certain Unitholders Agreement, dated as of the date hereof, by and among the Company and the other unitholders

 

 

of the Company listed therein (as the same may be amended, supplemented or otherwise modified from time to time in accordance with its terms, the “Unitholders Agreement”).  Recipient agrees, as a condition to the effectiveness of this Agreement and the issuances hereunder, to deliver counterpart signature pages to, and to be bound by the terms of, the LLC Agreement and the Unitholders Agreement.  By execution of this Agreement, Recipient acknowledges that the Company is relying upon the accuracy and completeness of the representations contained herein in complying with its obligations under applicable securities laws.

 

3.                                       Restrictions on Transfers.  The New Units (and any securities issued with respect to the New Units by way of a split, dividend, recapitalization, merger, consolidation, liquidation or other reorganization) shall be subject to the restrictions on transfer set forth in the LLC Agreement and the Unitholders Agreement.  In addition, Recipient may not sell, transfer or dispose of any New Units (except pursuant to an effective registration statement under the Securities Act) without first delivering to the Company an opinion of counsel reasonably acceptable in form and substance to the Company that registration under the Securities Act or any applicable state securities law is not required in connection with such transfer.

 

4.                                       Representations and Warranties of the Company.  As a material inducement to Recipient to enter into this Agreement and exchange the Existing Units for the New Units, the Company hereby represents and warrants to Recipient that:

 

(a)          Organization.  The Company is a limited liability company duly organized and validly existing under the laws of the State of Delaware.

 

(b)         Authorization; No Breach.  The execution, delivery and performance of this Agreement have been duly authorized by the Company.  The execution, delivery and performance of this Agreement and the consummation of the transactions provided for herein will not result in the breach of any of the terms and provisions of, or constitute a default under, or conflict with, or cause any acceleration of any other obligation of the Company.

 

(c)          Capital of the Company.  All of the Company’s outstanding Common Units, including the New Units issued hereunder, shall be validly issued.

 

5.                                       Recipient’s Representations and Warranties.  In connection with the exchange of the Existing Units for the New Units hereunder, Recipient hereby represents and warrants to the Company that:

 

(a)          Ownership of Existing Units.  Recipient has good and unencumbered title to the Existing Units, free and clear of all pledges, security interests, liens, claims, encumbrances, agreements, rights of first refusal, and options of any kind whatsoever, except for any right or interest in the Existing Units granted pursuant to any agreement to which Intermediate Holdings is a party.

 

(b)         Recipient’s Investment Representations.  Recipient hereby represents that he, she or it is acquiring the New Units to be acquired by him, her or it hereunder for his, her or its own account with the present intention of holding such securities for investment purposes and that he, she or it has no intention of selling such securities in a public distribution in violation of the federal securities laws or any applicable state securities laws.  Recipient acknowledges that the New Units have not been registered under the Securities Act or applicable state securities laws and that the New Units will be issued to Recipient in reliance on exemptions from the registration requirements of the Securities Act and applicable state statutes and in reliance on Recipient’s representations and agreements contained herein, in the LLC Agreement and in the Unitholders Agreement.

 

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(c)          No Conflict.  The execution, delivery and performance by Recipient of this Agreement and the consummation of the transactions contemplated hereby, do not and will not (with or without the giving of notice, the lapse of time, or both) result in a violation or breach of, conflict with, cause increased liability or fees, or require approval, consent or authorization under (i) any Legal Requirements applicable to Recipient or (ii) any contract to which Recipient is a party or by which Recipient or any of its properties or assets may be bound or affected.

 

(d)         Other Representations and Warranties of Recipient.  Recipient hereby further represents and warrants to the Company that:

 

(i)                                     Recipient is an officer or employee of Yankee Candle;

 

(ii)                                  Recipient acknowledges that this Agreement has been executed and delivered, and the New Units have been exchanged for the Existing Units hereunder, in connection with and as a part of the compensation and incentive arrangements between the Company and Recipient;

 

(iii)                               Recipient has had an opportunity to ask questions and receive answers concerning the terms and conditions of the New Units to be acquired by him, her or it hereunder and has had full access to such other information concerning the Company (including access to the LLC Agreement and the Unitholders Agreement) as Recipient may have requested in making his, her or its decision to acquire the New Units being issued hereunder;

 

(iv)                              Recipient is an “accredited investor” as defined in Rule 501(a) under the Securities Act and/or has, by reason of his or her business and financial experience and the business and financial experience of those retained by him or her such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of holding the New Units;

 

(v)                                 Recipient is able to bear the economic risk and lack of liquidity of an investment in the Company and is able to bear the risk of loss of his, her or its entire investment in the Company, and Recipient fully understands and agrees that he, she or it may have to bear the economic risk of his, her or its purchase for an indefinite period of time because, among other reasons, the New Units have not been registered under the Securities Act or under the securities laws of any state and, therefore, cannot be resold, pledged, assigned or otherwise disposed of unless they are subsequently registered under the Securities Act and under the applicable securities laws of certain states or unless an exemption from such registration is available;

 

(vi)                              Recipient acknowledges that the New Units are subject to the restrictions contained in the LLC Agreement and the Unitholders Agreement, and Recipient has received and reviewed a copy of the LLC Agreement and the Unitholders Agreement;

 

(vii)                           Recipient will not sell or otherwise transfer the New Units without registration under the Securities Act (and any applicable state securities laws) or an exemption therefrom, and provided there exists such a registration or exemption, any transfer of New Units by Recipient or subsequent holders of the New Units will be in compliance with the provisions of the Unitholders Agreement and the LLC Agreement;

 

(viii)                        Recipient acknowledges that any certificate representing interests issued hereunder shall include the legend(s) set forth in the LLC Agreement and in this Agreement;

 

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(ix)                                Recipient has all requisite capacity and authority and all material authorizations necessary to carry out the transactions contemplated by this Agreement; and the execution, delivery and performance of this Agreement and all other agreements contemplated hereby to which Recipient is a party and the exchange of the Existing Units for the New Units hereunder have been duly authorized by Recipient;

 

(x)                                   Recipient has relied on the advice of, or has consulted with, only his, her or its own advisors and the determination of Recipient to acquire the New Units pursuant to this Agreement has been made by Recipient independent of any statements or opinions as to the advisability of such acquisition or as to the properties, business, prospects or condition (financial or otherwise) of the Company which may have been made or given by any other equityholder of the Company (including all equityholders acquiring Common Units on the date hereof) or by any agent or employee of such equityholder and independent of the fact that any other Person has decided to become an equityholder of the Company;

 

(xi)                                Recipient is not acquiring the New Units as a result of or subsequent to any advertisement, article, notice or other communication published in any newspaper, magazine, internet publication or similar media or broadcast over television, radio or the internet or presented at any seminar or meeting, or any solicitation of a subscription by a person not previously known to Recipient in connection with investments in securities generally;

 

(xii)                             Recipient is a resident of the State of «State»;

 

(xiii)                          Recipient acknowledges that neither the issuance of the New Units to Recipient nor any provision contained in this Agreement shall entitle Recipient to remain in the employment of the Company and/or any of its Subsidiaries or affect the right of the Company and/or any of its Subsidiaries to terminate Recipient’s employment at any time; and

 

(xiv)                         Recipient acknowledges that, except as expressly set forth in the LLC Agreement or as required by applicable law, the Company shall have no duty or obligation to disclose to Recipient, and Recipient shall have no right to be advised of, any material information regarding the Company and its Subsidiaries.

 

6.                                       Compensatory Arrangements.  This Agreement has been executed and delivered, and the New Units have been issued hereunder, in connection with and as a part of the compensation and incentive arrangements between the Company and Recipient, and pursuant and subject to the provisions of the Company’s 2011 Incentive Equity Plan (the “Plan”).  Notwithstanding the binding effect of the Board’s or the Committee’s (as defined in the Plan) determinations under the Plan, in the event of any proceeding where such determination is at issue the determination shall be reviewed by the court or arbitrator on a de novo basis.

 

7.                                       Holdback.  In connection with any underwritten public offering of the Company’s, any successor corporation of the Company’s, Intermediate Holding’s or Yankee Holding’s equity securities, Recipient agrees to enter into any holdback, lockup or similar agreement requested by the underwriters managing such registered public offering, provided that MDCP and, if applicable, its Affiliates shall enter into a holdback, lockup or similar agreement on terms no less restrictive than those imposed on Recipient.

 

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8.               Repurchase Option.

 

(a)          In the event Recipient ceases to be employed by the Company or any of its Subsidiaries for any reason (a “Termination”), all New Units shall be subject to repurchase from Recipient (or other holders thereof) by the Company and MDCP pursuant to the terms and conditions set forth in this Section 8 (the “Repurchase Option”).

 

(b)         In the event of a Termination, the purchase price for each New Unit shall be the Fair Market Value of such New Unit as of the date of repurchase.

 

(c)          The Company may elect to purchase all or any portion of the New Units subject to repurchase under this Section 8 by delivering written notice (the “Repurchase Notice”) to the holder or holders of the New Units within 90 days following the date of Recipient’s Termination (the “Termination Date”).  The Repurchase Notice shall set forth the number of New Units to be acquired from each holder of New Units, the aggregate consideration to be paid for such New Units and the time and place for the closing of the transaction.  The number of New Units to be repurchased by the Company shall first be satisfied to the extent possible from New Units held by Recipient at the time of delivery of the Repurchase Notice.  If, due to permitted transfers by Recipient, the number of New Units then held by Recipient is less than the total number of New Units the Company has elected to purchase, the Company shall purchase the remaining New Units elected to be purchased from the transferee(s) of New Units under this Agreement, pro rata according to the number of New Units held by such transferee(s) at the time of delivery of such Repurchase Notice.

 

(d)         If for any reason the Company does not elect to purchase all of the New Units pursuant to the Repurchase Option, then MDCP shall be entitled to exercise the Company’s Repurchase Option in the manner set forth in Section 8(a) for all or any portion of the number of New Units the Company has not elected to purchase (the “Available Units”).  As soon as practicable after the Company has determined that there shall be Available Units, but in any event within 90 days after the Termination Date, the Company shall deliver written notice (the “Option Notice”) to MDCP setting forth the number of Available Units and the price for each Available Unit.  MDCP may elect to purchase any number of Available Units by delivering written notice to the Company within 10 days after receipt of the Option Notice from the Company.  As soon as practicable, and in any event within 10 days after the expiration of such 10-day period, the Company shall notify Recipient and any other holder(s) of New Units as to the number of New Units being purchased from Recipient by MDCP (the “Supplemental Repurchase Notice”).  At the time the Company delivers the Supplemental Repurchase Notice to Recipient and such other holder(s) of New Units, MDCP shall also receive written notice from the Company setting forth the number of New Units it is entitled to purchase, the aggregate purchase price and the time and place of the closing of the transaction.

 

(e)          The closing of the purchase of the New Units pursuant to the Company’s exercise of the Repurchase Option shall take place on the date designated in the Repurchase Notice or Supplemental Repurchase Notice, as applicable, which date shall not be more than 120 days after the Termination Date.  The Company shall pay for any New Units to be purchased by it pursuant to the Repurchase Option by (i) delivery of a check or wire transfer of funds, (ii) a subordinate note or notes payable in up to two equal annual installments beginning on the first anniversary of the closing of such purchase and bearing interest (payable quarterly) at a rate per annum equal to the prime rate published in the “Money Rates” column of The Wall Street Journal, (iii) delivery of a number of shares of common stock of Yankee Holding having a fair market value (as determined by the Company) equal to the aggregate repurchase price for such New Units (the “Repurchase Shares”) and (iv) any combination of the foregoing in the aggregate amount of the purchase price for such New Units; provided that, in the event any Repurchase Shares are issued, promptly following the closing of the repurchase transaction, Yankee Holding shall redeem, and the

 

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holder of such Repurchase Shares shall sell to Yankee Holding, all of the Repurchase Shares for an aggregate amount in cash equal to the aggregate repurchase price for the New Units (or the portion thereof previously assigned to the Repurchase Shares).  MDCP shall pay for any New Units to be purchased by it pursuant to the Repurchase Option by delivery of a check or wire transfer of funds in the aggregate amount of the purchase price for such New Units.  Any notes issued by the Company pursuant to this Section 8(e) shall be subject to any restrictive covenants to which the Company is subject at the time of such purchase.  In addition, the Company and MDCP may pay the purchase price for such New Units by offsetting amounts outstanding under any indebtedness or obligations owed by Recipient to the Company or any of its Subsidiaries or MDCP.  The Recipients of New Units hereunder shall be entitled to receive customary representations and warranties from the sellers regarding such sale of New Units (including representations and warranties regarding good title to such New Units, free and clear of any liens or encumbrances).

 

(f)            Notwithstanding anything to the contrary contained in this Agreement, all repurchases of New Units by the Company shall be subject to applicable restrictions contained in the Delaware Limited Liability Company Act and in the Company’s and its Subsidiaries’ debt and equity financing agreements.  If any such restrictions prohibit the repurchase of New Units hereunder which the Company is otherwise entitled or required to make, the time periods provided in this Section 8 shall be suspended, and the Company may make such repurchases at the applicable purchase price therefor, plus interest thereon calculated from the last day such Units were eligible for repurchase pursuant to Section 8(e) until the date of repurchase at a rate per annum equal to the  then applicable federal rate as published by the Internal Revenue Service pursuant to Section 1274(d) of Internal Revenue Code, as soon as it is permitted to do so under such restrictions.  In addition, and without limiting the generality of the foregoing, in the event Recipient invokes Recipient’s consent rights regarding a determination of Fair Market Value as set forth in this Agreement, the notice and repurchase time periods set forth in this Section 8 shall be tolled until such appraisal has been completed.

 

(g)         The Repurchase Option set forth in this Section 8 shall terminate with respect to New Units upon and following the consummation of an IPO.

 

9.                                       Definitions.  For the purposes of this Agreement, the following terms have the meanings set forth below:

 

“Affiliate” has the meaning set forth in the LLC Agreement.

 

“Agreement” has the meaning set forth in the preamble.

 

“Board” has the meaning set forth in the LLC Agreement.

 

“Common Units” shall mean the Company’s Class A Common Units, Class B Common Units and Class C Common Units and any other securities into which such Common Units are exchanged or converted.

 

“Existing Units” has the meaning set forth in the recitals hereto.

 

“Fair Market Value” of any New Unit will be determined in good faith by the Board in its sole discretion after taking into account all factors determinative of value including, but not limited to, the lack of a readily available market to sell such units, but without regard to minority or lack of liquidity discounts (other than with respect to any illiquidity attributable to the Company’s status as private corporation that affects the total common equity value of the Company); provided that if Recipient purchased more than 2,000 Existing Units under the Original Purchase Agreement and reasonably

 

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disagrees with the determination of Fair Market Value, Recipient shall have the right to provide written notice to the Company, to be made within ten (10) days after receipt of the Repurchase Notice (a “Contest Notice”), and such Contest Notice shall set forth Recipient’s determination of Fair Market Value.  Upon receipt of a Contest Notice, the Company and Recipient shall negotiate in good faith to agree on a mutually determined Fair Market Value.  If the Company and Recipient cannot agree on a mutually determined Fair Market Value within ten (10) days of the date of delivery of the Repurchase Notice, then the contested determination of Fair Market Value shall be referred to an independent, nationally recognized, mutually agreed third party valuator (the “Appraiser”) with experience in valuing similar securities and businesses to those in question, who shall be appointed to determine the Fair Market Value of the subject securities within thirty (30) days of referral thereto.  The decision of the Appraiser shall be final and binding on the parties and non-appealable.  The costs of the Appraiser shall be borne by the Company if the Fair Market Value as determined by the Appraiser is ten (10%) percent or more than the Board’s calculation of Fair Market Value, and by Recipient if the difference between the Fair Market Value as determined by the Appraiser is less than ten (10%) percent more than the Board’s calculation of Fair Market Value.

 

“Intermediate Holdings” has the meaning set forth in the recitals hereto.

 

“IPO” has the meaning assigned to that term in the LLC Agreement.

 

“Legal Requirement” shall mean any law, treaty, statute, code, ordinance, decree, administrative order, constitution, permit, directive, policy, standard, rule, building, zoning, subdivision, health and safety and other land use laws, regulation, or requirement of any government entity and all judicial, quasi-judicial, administrative, quasi-administrative and arbitral judgments, orders (including injunctions) decisions or awards of any government entity, including general principles of common law, civil law and equity, in each case having the force of law and binding on Recipient, any property or his assets.

 

“LLC Agreement” has the meaning set forth in Section 2.

 

“MDCP” means, collectively, Madison Dearborn Capital Partners V-A, L.P., a Delaware limited partnership, Madison Dearborn Capital Partners V-C, L.P., a Delaware limited partnership, and Madison Dearborn Partners V Executive-A, L.P., a Delaware limited partnership.

 

“New Units” has the meaning set forth in the recitals hereto.

 

“Original Purchase Agreement” has the meaning set forth in the recitals hereto.

 

“Recipient” has the meaning set forth in the preamble.

 

“Securities Act” means the Securities Act of 1933, as amended.

 

“Subsidiary” means any corporation or limited liability company of which the Company owns securities having a majority of the ordinary voting power in electing the board of directors or managers directly or through one or more subsidiaries.

 

“Unitholders Agreement” has the meaning set forth in Section 2.

 

“Yankee Candle” means The Yankee Candle Company, Inc., a Massachusetts corporation and indirect, wholly-owned Subsidiary of the Company.

 

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“Yankee Holding” means Yankee Holding Corp., a Delaware corporation and direct, wholly-owned Subsidiary of the Company.

 

10.                                 Miscellaneous.

 

(a)          Transfers in Violation of Agreement.  Any transfer or attempted transfer of any New Units in violation of any provision of this Agreement, the LLC Agreement or the Unitholders Agreement shall be void, and the Company shall not record such transfer on its books or treat any purported transferee of such New Units as the owner of such New Units for any purpose.

 

(b)         Legend.  If the New Units are certificated, each certificate evidencing New Units shall be stamped or otherwise imprinted with the legend set forth in Section 12.8 of the LLC Agreement.

 

(c)          Irrevocability: Binding Effect on Successors and Assigns. Recipient hereby acknowledges and agrees that, except as provided under applicable federal and state securities laws, the acquisition of the New Units hereunder is irrevocable, that Recipient is not entitled to cancel, terminate or revoke this Agreement or any agreements of Recipient hereunder, and that this Agreement and such other agreements shall survive the death or disability of Recipient and shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, successors, legal representatives and assigns. If Recipient is more than one person, the obligations of Recipient hereunder shall be joint and several and the agreements, representations, warranties and acknowledgments herein contained shall be deemed to be made by and be binding upon each such person and his, her or its heirs, executors, administrators, successors, legal representatives, and assigns.

 

(d)         Survival of Covenants, Representations and Warranties.  All covenants, representations and warranties contained herein or made in writing by any party in connection herewith shall survive the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby.

 

(e)          Severability.  Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

 

(f)            Complete Agreement.  This Agreement, those documents expressly referred to herein and other documents of even date herewith embody the complete agreement and understanding among the parties and supersede and preempt any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way.

 

(g)         Counterparts.  This Agreement may be executed simultaneously in two or more counterparts, any one of which need not contain the signatures of more than one party, but all such counterparts taken together shall constitute one and the same Agreement.

 

(h)         Descriptive Headings; Interpretation.  The descriptive headings of this Agreement are inserted for convenience only and do not constitute a part of this Agreement.  The use of the word “including” in this Agreement shall be by way of example rather than by limitation.

 

(i)             No Strict Construction.  The parties hereto have participated jointly in the negotiation and drafting of this Agreement.  In the event an ambiguity or question of intent or interpretation arises,

 

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this Agreement shall be construed as if drafted jointly by the parties hereto, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.

 

(j)             Governing Law.  The limited liability company law of the State of Delaware shall govern all questions concerning the relative rights of the Company and its interestholders.  All other questions concerning the construction, validity, enforcement and interpretation of this Agreement and the exhibits hereto shall be governed by the internal law, and not the law of conflicts, of the State of Delaware.

 

(K)       WAIVER OF JURY TRIAL.  AS A SPECIFICALLY BARGAINED FOR INDUCEMENT FOR EACH OF THE PARTIES HERETO TO ENTER INTO THIS AGREEMENT (AFTER HAVING THE OPPORTUNITY TO CONSULT WITH COUNSEL), EACH PARTY HERETO EXPRESSLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR PROCEEDING RELATING TO OR ARISING IN ANY WAY FROM THIS AGREEMENT OR THE MATTERS CONTEMPLATED HEREBY.

 

(l)             Remedies.  Each of the parties to this Agreement shall be entitled to enforce its rights under this Agreement specifically, to recover damages and costs (including reasonable attorney’s fees) caused by any breach of any provision of this Agreement and to exercise all other rights existing in its favor.  The parties hereto agree and acknowledge that money damages would not be an adequate remedy for any breach of the provisions of this Agreement and that any party may in its sole discretion apply to any court of law or equity of competent jurisdiction (without posting any bond or deposit) for specific performance and/or other injunctive relief in order to enforce or prevent any violations of the provisions of this Agreement.

 

(m)       Amendment and Waiver.  The provisions of this Agreement may be amended and waived only with the prior written consent of the Company, Recipient and MDCP.

 

(n)         Business Days.  If any time period for giving notice or taking action hereunder expires on a day which is a Saturday, Sunday or legal holiday in the state in which the Company’s chief executive office is located, the time period shall be automatically extended to the business day immediately following such Saturday, Sunday or holiday.

 

(o)         Third-Party Beneficiary.  The Company and Recipient acknowledge that MDCP is an express third-party beneficiary under this Agreement and as such will inure to the benefit of MDCP and be enforceable by MDCP and its respective successors and assigns.

 

(p)         Notices.  Any notice provided for in this Agreement must be in writing and must be personally delivered, sent by telecopy with original to follow by overnight courier service, by first class mail (postage prepaid and return receipt requested) or reputable overnight courier service (charges prepaid) to the recipient at the addresses indicated below:

 

Notices to the Company:

 

Yankee Candle Investments LLC
 c/o The Yankee Candle Company, Inc.
 16 Yankee Candle Way
 South Deerfield, MA 01373
 Facsimile: (413) 665-9147
 Attention: General Counsel

 

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with copies to (which shall not constitute notice):

 

Madison Dearborn Capital Partners
 Three First National Plaza
 Suite 4600
 Chicago, IL 60602
 Facsimile:  (312) 895-1056
 Attention:              Robin P. Selati

                                                                     George Peinado

 

Kirkland & Ellis LLP 
 300 North LaSalle 
 Chicago, IL 60654

Facsimile:               (312) 862-2200

Attention:              Michael D. Paley, P.C.

                                                                     Tana M. Ryan

 

Notices to MDCP:

 

Madison Dearborn Capital Partners 
 Three First National Plaza
 Suite 4600
 Chicago, IL 60602

Facsimile:           (312) 895-1056

Attention:          Robin P. Selati 

                                                                 George Peinado

 

with copies to (which shall not constitute notice):

 

Kirkland & Ellis LLP
 300 North LaSalle 
 Chicago, IL 60601

Facsimile:           (312) 862-2200

Attention:          Michael D. Paley, P.C.

                                                                 Tana M. Ryan

 

Notices to Recipient:

 

«First_Name» «Last_Name»
 «Address»
 «City», «State»  «Zip_Code»

 

or to such other address or to the attention of such other Person as the recipient party has specified by prior written notice to the sending party.  Any notice under this Agreement shall be deemed to have been given when so delivered or, if sent by telecopy the day of receipt, or if mailed, three days after deposit in the U.S. mail (return receipt requested) and one day after deposit with a reputable overnight courier service.

 

*     *     *    *     *

 

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IN WITNESS WHEREOF, the parties hereto have executed this Unit Exchange Agreement on the date first written above.

 

	
 
    	
YANKEE   CANDLE INVESTMENTS LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Its:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
«First_Name» «Last_Name»
    
				

 

Signature Page to Class A Unit Exchange Agreement

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