Document:

ck7045120534-ex41_7.htm

Exhibit 4.1

 

Execution Version

PAYMENTUS HOLDINGS, INC.

REGISTRATION RIGHTS AGREEMENT

THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made as of May 24, 2021 among Paymentus Holdings, Inc., a Delaware corporation (the “Company”), each of the investors listed on the signature pages hereto under the caption “Sponsor Investors” (collectively, the “Sponsor Investors”), each Person listed on the signature pages under the caption “Sharma Investors” or who executes a Joinder as a “Sharma Investor” (collectively, the “Sharma Investors”) and each of the executives listed on the signature pages under the caption “Executives” or who executes a Joinder as an “Executive” (collectively, the “Executives”).  Except as otherwise specified herein, all capitalized terms used in this Agreement are defined in Exhibit A attached hereto.

In consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties to this Agreement hereby agree as follows:

Section 1Demand Registrations.

(a)Requests for Registration.  At any time and from time to time, the Sponsor Investors may request registration under the Securities Act of all or any portion of their Registrable Securities on Form S-1 or any similar long-form registration statement (“Long-Form Registrations”) or on Form S-3 or any similar short-form registration statement (“Short-Form Registrations”), if available.  From and after the second anniversary of the date of the effectiveness of the registration statement for the Company’s initial Public Offering, the Sharma Investors may request registration under the Securities Act of all or any portion of their Registrable Securities on a Long-Form Registration or a Short-Form Registration, if available (any such requested registration and any registration requested by the Sponsor Investors pursuant to the preceding sentence, a “Demand Registration”).  The Sponsor Investors or Sharma Investors may request that any Demand Registration be made pursuant to Rule 415 under the Securities Act (a “Shelf Registration”) and (if the Company is a WKSI at the time any such request is submitted to the Company or will become one by the time of the filing of such Shelf Registration) that such Shelf Registration be an automatic shelf registration statement (as defined in Rule 405 under the Securities Act) (an “Automatic Shelf Registration Statement”).  Each request for a Demand Registration must specify the approximate number or dollar value of Registrable Securities requested to be registered by the requesting Holders and (if known) the intended method of distribution.  The Sponsor Investors will be entitled to request an unlimited number of Demand Registrations for which the Company will pay all Registration Expenses, whether or not any such registration is consummated.  The Sharma Investors will collectively be entitled to request no more than three (3) Demand Registrations for which the Company will pay all Registration Expenses, whether or not any such registration is consummated.

(b)Notice to Other Holders.  Within four (4) Business Days after receipt of any such request, the Company will give written notice of the Demand Registration to all other Holders and, subject to the terms of Section 1(e), will include in such Demand Registration (and in all related registrations and qualifications under state blue sky laws and in any related underwriting) all Registrable Securities with respect to which the Company has received written requests for inclusion therein within ten (10) days after the receipt of the Company’s notice; provided that, with the written consent of the Sponsor Investors, the Company may, or at the written request of the Sponsor Investors, the Company shall, instead provide notice of the Demand Registration to all other Holders within three (3) Business Days following the non-confidential filing of the registration statement with respect to the Demand Registration so long as such registration statement is not an Automatic Shelf Registration Statement.  

 

 

(c)Form of Registrations.  All Long‐Form Registrations will be underwritten registrations unless otherwise approved by the Sponsor Investors.  Demand Registrations will be Short-Form Registrations whenever the Company is permitted to use any applicable short form unless otherwise requested by the Sponsor Investors.

(d)Shelf Registrations. 

(i)For so long as a registration statement for a Shelf Registration (a “Shelf Registration Statement”) is and remains effective, the Demand Initiating Holders will have the right at any time or from time to time (subject to the limitations (including with respect to time and number) set forth in Section 1(a) applicable to any Demand Initiating Holder) to elect to sell pursuant to an offering (including an underwritten offering) Registrable Securities pursuant to such registration statement (“Shelf Registrable Securities”). If the Demand Initiating Holders desire to sell Registrable Securities pursuant to an underwritten offering, then the Demand Initiating Holders may deliver to the Company a written notice (a “Shelf Offering Notice”) specifying the number of Shelf Registrable Securities that the Demand Initiating Holders desire to sell pursuant to such underwritten offering (the “Shelf Offering”).  As promptly as practicable, but in no event later than two (2) Business Days after receipt of a Shelf Offering Notice, the Company will give written notice of such Shelf Offering Notice to all other Holders of Shelf Registrable Securities that have been identified as selling stockholders in such Shelf Registration Statement and are otherwise permitted to sell in such Shelf Offering, which such notice shall request that each such Holder specify, within seven (7) days after the Company’s receipt of the Shelf Offering Notice, the maximum number of Shelf Registrable Securities such Holder desires to be disposed of in such Shelf Offering.  The Company, subject to Section 1(e) and Section 7, will include in such Shelf Offering all Shelf Registrable Securities with respect to which the Company has received timely written requests for inclusion.  The Company will, as expeditiously as possible (and in any event within fourteen (14) days after the receipt of a Shelf Offering Notice), but subject to Section 1(e), use its best efforts to consummate such Shelf Offering.  

(ii)If the Demand Initiating Holders desire to engage in an underwritten block trade or bought deal pursuant to a Shelf Registration Statement (either through filing an Automatic Shelf Registration Statement or through a take-down from an already existing Shelf Registration Statement and subject to the limitations (including with respect to time and number) set forth in Section 1(a) applicable to any Demand Initiating Holder) (each, an “Underwritten Block Trade”), then notwithstanding the time periods set forth in Section 1(d)(i), the Demand Initiating Holders may notify the Company of the Underwritten Block Trade not less than two (2) Business Days prior to the day such offering is first anticipated to commence.  If requested by the Demand Initiating Holders, the Company will promptly notify other Holders of such Underwritten Block Trade and such notified Holders (each, a “Potential Participant”) may elect whether or not to participate no later than the next Business Day (i.e. one (1) Business Day prior to the day such offering is to commence) (unless a longer period is agreed to by the Demand Initiating Holders), and the Company will as expeditiously as possible use its best efforts to facilitate such Underwritten Block Trade (which may close as early as two (2) Business Days after the date it commences); provided further that, notwithstanding the provisions of Section 1(d)(i), no Holder (other than Holders of Sponsor Investor Registrable Securities and Sharma Investor Registrable Securities) will be permitted to participate in an Underwritten Block Trade without the written consent of the Sponsor Investors. Any Potential Participant’s request to participate in an Underwritten Block Trade shall be binding on the Potential Participant.

(iii)All determinations as to whether to complete any Shelf Offering and as to the timing, manner, price and other terms of any Shelf Offering contemplated by this Section 1(d) 

 

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shall be determined by the Demand Initiating Holders, and the Company shall use its best efforts to cause any Shelf Offering to occur in accordance with such determinations as promptly as practicable. 

(iv)The Company will, at the request of the Demand Initiating Holders, file any prospectus supplement or any post-effective amendments and otherwise take any action necessary to include therein all disclosure and language deemed necessary or advisable by the Demand Initiating Holders to effect such Shelf Offering.

(e)Priority on Demand Registrations and Shelf Offerings.  The Company will not include in any Demand Registration any securities which are not Registrable Securities without the prior written consent of the Sponsor Investors.  If a Demand Registration or a Shelf Offering is an underwritten offering and the managing underwriters advise the Company in writing that in their opinion the number of Registrable Securities and (if permitted hereunder) other securities requested to be included in such offering exceeds the number of Registrable Securities and other securities (if any), which can be sold therein without adversely affecting the marketability, proposed offering price, timing or method of distribution of the offering, then the Company will include in such offering (prior to the inclusion of any securities which are not Registrable Securities) the number of Registrable Securities requested to be included by any Holder which, in the opinion of such underwriters, can be sold, without any such adverse effect, pro rata among such Holders on the basis of the number of Registrable Securities owned by each such Holder.  Notwithstanding anything to the contrary herein, if any Holders of Sharma Investor Registrable Securities (outside of a Demand Registration initiated by the Sharma Investors) or Executive Registrable Securities have requested to include such securities in an underwritten offering and the managing underwriters for such offering advise the Company that in their opinion the inclusion of some or all of such Sharma Investor Registrable Securities (outside of a Demand Registration initiated by the Sharma Investors) or Executive Registrable Securities could adversely affect the marketability, proposed offering price, timing and/or method of distribution of the offering, then the Company shall exclude from such offering the number of such Sharma Investor Registrable Securities (outside of a Demand Registration initiated by the Sharma Investors) or Executive Registrable Securities identified by the managing underwriters as having any such adverse effect prior to the exclusion of any Registrable Securities of any other Holders as set forth in this Section 1(e), which, for the avoidance of doubt, may be all such Sharma Investor Registrable Securities (outside of a Demand Registration initiated by the Sharma Investors) or Executive Registrable Securities requested to be included such offering.

(f)Restrictions on Demand Registration and Shelf Offerings.

(i)The Company may postpone, for up to 60 days (or with the consent of the Sponsor Investors, a longer period) from the date of the request (the “Suspension Period”), the filing or the effectiveness of a registration statement for a Demand Registration or suspend the use of a prospectus that is part of a Shelf Registration Statement (and therefore suspend sales of the Shelf Registrable Securities) by providing written notice to the Holders if the following conditions are met: (A) the Company determines that the offer or sale of Registrable Securities would reasonably be expected to have a material adverse effect on any proposal or plan by the Company or any Subsidiary to engage in any material acquisition of assets or stock (other than in the ordinary course of business) or any material merger, consolidation, tender offer, recapitalization, reorganization, financing or other transaction involving the Company or (B) upon advice of counsel, the sale of Registrable Securities pursuant to the registration statement would require disclosure of material non-public information not otherwise required to be disclosed under applicable law, and (x) the Company has a bona fide business purpose for preserving the confidentiality of such transaction or material non-public information, (y) disclosure would have a material adverse effect on the Company or the Company’s ability to consummate such transaction, 

 

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or (z) making such disclosure would render the Company unable to comply with any SEC requirement, in each case under circumstances that would make it impractical or inadvisable to cause the registration statement (or such filings) to become effective or to promptly amend or supplement the registration statement on a post-effective basis, as applicable.  The Company may delay or suspend the effectiveness of a Demand Registration or Shelf Registration Statement pursuant to this Section 1(f)(i) only once in any twelve (12)-month period (for avoidance of doubt, in addition to the Company’s rights and obligations under Section 4(a)(vi)) unless additional delays or suspensions are approved by the Sponsor Investors.

(ii)In the case of an event that causes the Company to suspend the use of a Shelf Registration Statement as set forth in Section 1(f)(i) above or pursuant to Section 4(a)(vi) (a “Suspension Event”), the Company will give a notice to the Holders whose Registrable Securities are registered pursuant to such Shelf Registration Statement (a “Suspension Notice”) to suspend sales of the Registrable Securities and such notice must state generally the basis for the notice and that such suspension will continue only for so long as the Suspension Event or its effect is continuing.  Each Holder agrees not to effect any sales of its Registrable Securities pursuant to such Shelf Registration Statement (or such filings) at any time after it has received a Suspension Notice from the Company and prior to receipt of an End of Suspension Notice.  A Holder may recommence effecting sales of the Registrable Securities pursuant to the Shelf Registration Statement (or such filings) following further written notice to such effect (an “End of Suspension Notice”) from the Company, which End of Suspension Notice will be given by the Company to the Holders promptly following the conclusion of any Suspension Event (and in any event during the permitted Suspension Period).

(g)Selection of Underwriters.  The Sponsor Investors shall select the legal counsel to the Company, the investment banker(s) and manager(s) to administer any underwritten offering in connection with any Demand Registration or Shelf Offering.  

(h)Other Registration Rights.  Except as provided in this Agreement, the Company will not grant to any Person(s) the right to request the Company or any Subsidiary to register any equity securities of the Company or any Subsidiary, or any securities convertible or exchangeable into or exercisable for such securities, without the prior written consent of the Sponsor Investors; provided that, with the prior approval of the Sponsor Investors, the Company may grant rights to employees of the Company and its Subsidiaries to participate in Piggyback Registrations so long as they sign a Joinder as an “Executive”  and Holder of “Executive Registrable Securities” hereunder.

(i)Revocation of Demand Notice or Shelf Offering Notice.  At any time prior to the effective date of the registration statement relating to a Demand Registration or the “pricing” of any offering relating to a Shelf Offering Notice, the Demand Initiating Holders who initiated such Demand Registration or Shelf Offering may revoke or withdraw such notice of a Demand Registration or Shelf Offering Notice on behalf of all Holders participating in such Demand Registration or Shelf Offering without liability to such Holders (including, for the avoidance of doubt, the other Participating Sponsor Investors or other Participating Sharma Investors, as applicable), in each case by providing written notice to the Company.  

(j)Confidentiality.  Each Holder agrees to treat as confidential the receipt of any notice hereunder (including notice of a Demand Registration, a Shelf Offering Notice and a Suspension Notice) and the information contained therein, and not to disclose or use the information contained in any such notice (or the existence thereof) without the prior written consent of the Company until such time as the information contained therein is or becomes available to the public generally (other than as a result of disclosure by such Holder in breach of the terms of this Agreement).

 

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Section 2Piggyback Registrations.

(a)Right to Piggyback.  Whenever the Company proposes to register any of its equity securities under the Securities Act (including primary and secondary registrations, and other than pursuant to an Excluded Registration) (a “Piggyback Registration”), the Company will give prompt written notice (and in any event within three (3) Business Days after the public filing of the registration statement relating to the Piggyback Registration) to all Holders of its intention to effect such Piggyback Registration and, subject to the terms of Section 2(b) and Section 2(c), will include in such Piggyback Registration (and in all related registrations or qualifications under blue sky laws and in any related underwriting) all Registrable Securities with respect to which the Company has received written requests for inclusion therein within ten (10) days after delivery of the Company’s notice; provided that the Company shall not be required to provide such notice or include any Registrable Securities in such registration if the Sponsor Investors elect not to include any Sponsor Investor Registrable Securities in such registration, unless the Sponsor Investors otherwise consent in writing.  Any Participating Sponsor Investor may withdraw its request for inclusion at any time prior to executing the underwriting agreement, or if none, prior to the applicable registration statement becoming effective.

(b)Priority on Primary Registrations. If a Piggyback Registration is an underwritten primary registration on behalf of the Company, and the managing underwriters advise the Company in writing that in their opinion the number of securities requested to be included in such registration exceeds the number which can be sold in such offering without adversely affecting the marketability, proposed offering price, timing or method of distribution of the offering, the Company will include in such registration (i) first, the securities the Company proposes to sell, (ii) second, the Registrable Securities requested to be included in such registration by any Holder which, in the opinion of such underwriters, can be sold, without any such adverse effect, pro rata among such Holders on the basis of the number of Registrable Securities owned by each such Holder and (iii) third, other securities requested to be included in such registration which, in the opinion of the underwriters, can be sold without any such adverse effect.  Notwithstanding anything to the contrary herein, if any Holders of Sharma Investor Registrable Securities or Executive Registrable Securities have requested to include such securities in a Piggyback Registration that is an underwritten primary offering on behalf of the Company and the managing underwriters for such offering advise the Company that in their opinion the inclusion of some or all of such Sharma Investor Registrable Securities or Executive Registrable Securities could adversely affect the marketability, proposed offering price, timing and/or method of distribution of the offering, then the Company shall first exclude from such offering the number (which may be all) of such Sharma Investor Registrable Securities or Executive Registrable Securities identified by the managing underwriters as having any such adverse effect prior to the exclusion of any securities such offering.

(c)Priority on Secondary Registrations. If a Piggyback Registration is an underwritten secondary registration on behalf of holders of the Company’s equity securities (other than pursuant to Section 1 hereof), and the managing underwriters advise the Company in writing that in their opinion the number of securities requested to be included in such registration exceeds the number which can be sold in such offering without adversely affecting the marketability, proposed offering price, timing or method of distribution of the offering, the Company will include in such registration (i) first, the securities requested to be included therein by the holders initially requesting such registration which, in the opinion of the underwriters, can be sold without any such adverse effect, (ii) second, the Registrable Securities requested to be included in such registration by any other Holder which, in the opinion of such underwriters, can be sold, without any such adverse effect, pro rata among such Holders on the basis of the number of Registrable Securities owned by each such Holder and (iii) third, other securities requested to be included in such registration which, in the opinion of the underwriters, can be sold without any such adverse effect.  Notwithstanding anything to the contrary herein, if any Holders of Sharma Investor Registrable Securities or Executive Registrable Securities have requested to include such securities in a Piggyback Registration 

 

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that is an underwritten secondary offering and the managing underwriters for such offering advise the Company that in their opinion the inclusion of some or all of such Sharma Investor Registrable Securities or Executive Registrable Securities could adversely affect the marketability, proposed offering price, timing and/or method of distribution of the offering, then the Company shall be permitted to first exclude from such offering the number (which may be all) of such Sharma Investor Registrable Securities or Executive Registrable Securities identified by the managing underwriters as having any such adverse effect prior to the exclusion of any securities such offering.

(d)Right to Terminate Registration. The Company will have the right to terminate or withdraw any registration initiated by it under this Section 2, whether or not any holder of Registrable Securities has elected to include securities in such registration.  

(e)Selection of Underwriters. If any Piggyback Registration is an underwritten offering, the Sponsor Investors shall select the legal counsel for the Company, the investment banker(s) and manager(s) for the offering.

Section 3Stockholder Lock-Up Agreements and Company Holdback Agreement.

(a)Stockholder Lock-up Agreements. In connection with any underwritten Public Offering, each Holder will enter into any lock-up, holdback or similar agreements requested by the underwriter(s) managing such offering, in each case with such modifications and exceptions as may be approved by the Sponsor Investors.  Without limiting the generality of the foregoing, each Holder hereby agrees that in connection with any Demand Registration, Shelf Offering or Piggyback Registration that is an underwritten Public Offering, not to (i) offer, sell, contract to sell, pledge or otherwise dispose of (including sales pursuant to Rule 144), directly or indirectly, any equity securities of the Company (including equity securities of the Company that may be deemed to be beneficially owned by such Holder in accordance with the rules and regulations of the SEC) (collectively, “Securities”), or any securities, options or rights convertible into or exchangeable or exercisable for Securities (collectively, “Other Securities”), (ii) enter into a transaction which would have the same effect as described in clause (i) above, (iii) enter into any swap, hedge or other arrangement that transfers, in whole or in part, any of the economic consequences or ownership of any Securities or Other Securities, whether such transaction is to be settled by delivery of such Securities or Other Securities, in cash or otherwise (each of (i), (ii) and (iii) above, a “Sale Transaction”), or (iv) publicly disclose the intention to enter into any Sale Transaction, commencing on the date on which the Company gives notice to the Holders that a preliminary prospectus has been circulated for such underwritten Public Offering or the “pricing” of such offering and continuing to the date that is 90 days following the date of the final prospectus in the case of any other such underwritten Public Offering, in each case with such modifications and exceptions as may be approved by the Sponsor Investors (each such period, or such shorter period as agreed to by the managing underwriters, a “Holdback Period”).  The Company may impose stop-transfer instructions with respect to any Securities or Other Securities subject to the restrictions set forth in this Section 3(a) until the end of such Holdback Period.

(b)Company Holdback Agreement.  The Company (i) will not file any registration statement for a Public Offering or cause any such registration statement to become effective, or effect any public sale or distribution of its Securities or Other Securities during any Holdback Period (other than as part of such underwritten Public Offering, or a registration on Form S-4 or Form S-8 or any successor or similar form which is (x) then in effect or (y) shall become effective upon the conversion, exchange or exercise of any then outstanding Other Securities) and (ii) will cause each holder of Securities and Other Securities (including each of its directors and executive officers) to agree not to effect any Sale Transaction during any Holdback Period, except as part of such underwritten registration (if otherwise permitted), unless approved in writing by the Sponsor Investors and the underwriters managing the Public Offering and to 

 

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enter into any lock-up, holdback or similar agreements requested by the underwriter(s) managing such offering, in each case with such modifications and exceptions as may be approved by the Sponsor Investors.

Section 4Registration Procedures.

(a)Company Obligations. Whenever the Holders have requested that any Registrable Securities be registered pursuant to this Agreement or have initiated a Shelf Offering, the Company will use its best efforts to effect the registration and the sale of such Registrable Securities in accordance with the intended method of disposition thereof, and pursuant thereto the Company will as expeditiously as possible:

(i)prepare and file with (or submit confidentially to) the SEC a registration statement, and all amendments and supplements thereto and related prospectuses, with respect to such Registrable Securities and use its best efforts to cause such registration statement to become effective, all in accordance with the Securities Act and all applicable rules and regulations promulgated thereunder (provided that before filing or confidentially submitting a registration statement or prospectus or any amendments or supplements thereto, the Company will furnish to the counsel selected by the Sponsor Investors covered by such registration statement copies of all such documents proposed to be filed or submitted, which documents will be subject to the review and comment of such counsel);

(ii)notify each Holder of (A) the issuance by the SEC of any stop order suspending the effectiveness of any registration statement or the initiation of any proceedings for that purpose, (B) the receipt by the Company or its counsel of any notification with respect to the suspension of the qualification of the Registrable Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose, and (C) the effectiveness of each registration statement filed hereunder;

(iii)prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective for a period ending when all of the securities covered by such registration statement have been disposed of in accordance with the intended methods of distribution by the sellers thereof set forth in such registration statement (but not in any event before the expiration of any longer period required under the Securities Act or, if such registration statement relates to an underwritten Public Offering, such longer period as in the opinion of counsel for the underwriters a prospectus is required by law to be delivered in connection with sale of Registrable Securities by an underwriter or dealer) and comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement during such period in accordance with the intended methods of disposition by the sellers thereof set forth in such registration statement;

(iv)furnish, without charge, to each seller of Registrable Securities thereunder and each underwriter, if any, such number of copies of such registration statement, each amendment and supplement thereto, the prospectus included in such registration statement (including each preliminary prospectus) (in each case including all exhibits and documents incorporated by reference therein), each amendment and supplement thereto, each Free Writing Prospectus and such other documents as such seller or underwriter, if any, may reasonably request in order to facilitate the disposition of the Registrable Securities owned by such seller (the Company hereby consenting to the use in accordance with all applicable laws of each such registration statement, each such amendment and supplement thereto, and each such prospectus (or preliminary prospectus or supplement thereto) or Free Writing Prospectus by each such seller of Registrable Securities and 

 

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the underwriters, if any, in connection with the offering and sale of the Registrable Securities covered by such registration statement or prospectus);

(v)use its best efforts to register or qualify such Registrable Securities under such other securities or blue sky laws of such jurisdictions as any seller reasonably requests and do any and all other acts and things which may be reasonably necessary or advisable to enable such seller to consummate the disposition in such jurisdictions of the Registrable Securities owned by such seller (provided that the Company will not be required to (A) qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify but for this subparagraph or (B) consent to general service of process in any such jurisdiction or (C) subject itself to taxation in any such jurisdiction);

(vi)notify in writing each seller of such Registrable Securities (A) promptly after it receives notice thereof, of the date and time when such registration statement and each post-effective amendment thereto has become effective or a prospectus or supplement to any prospectus relating to a registration statement has been filed and when any registration or qualification has become effective under a state securities or blue sky law or any exemption thereunder has been obtained, (B) promptly after receipt thereof, of any request by the SEC for the amendment or supplementing of such registration statement or prospectus or for additional information, and (C) at any time when a prospectus relating thereto is required to be delivered under the Securities Act, of the happening of any event or of any information or circumstances as a result of which the prospectus included in such registration statement contains an untrue statement of a material fact or omits any fact necessary to make the statements therein not misleading, and, subject to Section 1(f), if required by applicable law or to the extent requested by the Sponsor Investor, the Company will use its best efforts to promptly prepare and file a supplement or amendment to such prospectus so that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus will not contain an untrue statement of a material fact or omit to state any fact necessary to make the statements therein not misleading and (D) if at any time the representations and warranties of the Company in any underwriting agreement, securities sale agreement, or other similar agreement, relating to the offering shall cease to be true and correct;

(vii)(A) use best efforts to cause all such Registrable Securities to be listed on each securities exchange on which similar securities issued by the Company are then listed and, if not so listed, to be listed on a securities exchange and, without limiting the generality of the foregoing, to arrange for at least two market markers to register as such with respect to such Registrable Securities with FINRA, and (B) comply (and continue to comply) with the requirements of any self-regulatory organization applicable to the Company, including without limitation all corporate governance requirements;

(viii)use best efforts to provide a transfer agent and registrar for all such Registrable Securities not later than the effective date of such registration statement;

(ix)enter into and perform such customary agreements (including, as applicable, underwriting agreements in customary form) and take all such other actions as the Sponsor Investors or the underwriters, if any, reasonably request in order to expedite or facilitate the disposition of such Registrable Securities (including, without limitation, making available the executive officers of the Company and participating in “road shows,” investor presentations, marketing events and other selling efforts and effecting a stock or unit split or combination, recapitalization or reorganization);

 

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(x)make available for inspection by any seller of Registrable Securities, any underwriter participating in any disposition or sale pursuant to such registration statement and any attorney, accountant or other agent retained by any such seller or underwriter, all financial and other records, pertinent corporate and business documents and properties of the Company as will be necessary to enable them to exercise their due diligence responsibility, and cause the Company’s officers, directors, employees, agents, representatives and independent accountants to supply all information reasonably requested by any such seller, underwriter, attorney, accountant or agent in connection with such registration statement and the disposition of such Registrable Securities pursuant thereto;

(xi)take all actions to ensure that any Free-Writing Prospectus utilized in connection with any Demand Registration or Piggyback Registration or Shelf Offering hereunder complies in all material respects with the Securities Act, is filed in accordance with the Securities Act to the extent required thereby, is retained in accordance with the Securities Act to the extent required thereby and, when taken together with the related prospectus, prospectus supplement and related documents, will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading;

(xii)otherwise use its best efforts to comply with all applicable rules and regulations of the SEC, and make available to its security holders, as soon as reasonably practicable, an earnings statement covering the period of at least twelve (12) months beginning with the first day of the Company’s first full calendar quarter after the effective date of the registration statement, which earnings statement will satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder;

(xiii)permit any Holder which, in its sole and exclusive judgment, might be deemed to be an underwriter or a controlling person of the Company, to participate in the preparation of such registration or comparable statement and to allow such Holder to provide language for insertion therein, in form and substance satisfactory to the Company, which in the reasonable judgment of such Holder and its counsel should be included;

(xiv)use best efforts to (A) make Short-Form Registration available for the sale of Registrable Securities and (B) prevent the issuance of any stop order suspending the effectiveness of a registration statement, or the issuance of any order suspending or preventing the use of any related prospectus or suspending the qualification of any Common Stock included in such registration statement for sale in any jurisdiction use, and in the event any such order is issued, best efforts to obtain promptly the withdrawal of such order;

(xv)use its reasonable best efforts to cause such Registrable Securities covered by such registration statement to be registered with or approved by such other governmental agencies or authorities as may be necessary to enable the sellers thereof to consummate the disposition of such Registrable Securities;

(xvi)cooperate with the Holders covered by the registration statement and the managing underwriter or agent, if any, to facilitate the timely preparation and delivery of certificates (not bearing any restrictive legends) representing securities to be sold under the registration statement, or the removal of any restrictive legends associated with any account at which such securities are held, and enable such securities to be in such denominations and registered in such names as the managing underwriter, or agent, if any, or such Holders may request;

 

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(xvii)if requested by any managing underwriter, include in any prospectus or prospectus supplement updated financial or business information for the Company’s most recent period or current quarterly period (including estimated results or ranges of results) if required for purposes of marketing the offering in the view of the managing underwriter;

(xviii)take no direct or indirect action prohibited by Regulation M under the Exchange Act; provided, however, that to the extent that any prohibition is applicable to the Company, the Company will take such action as is necessary to make any such prohibition inapplicable;

(xix)cooperate with each Holder covered by the registration statement and each underwriter or agent participating in the disposition of such Registrable Securities and their respective counsel in connection with the preparation and filing of applications, notices, registrations and responses to requests for additional information with FINRA, the New York Stock Exchange, Nasdaq or any other national securities exchange on which the shares of Common Stock are or are to be listed, and to the extent required by the rules and regulations of FINRA, retain a Qualified Independent Underwriter acceptable to the managing underwriter;

(xx)in the case of any underwritten offering, use its best efforts to obtain, and deliver to the underwriter(s), in the manner and to the extent provided for in the applicable underwriting agreement, one or more cold comfort letters from the Company’s independent public accountants in customary form and covering such matters of the type customarily covered by cold comfort letters;

(xxi)use its best efforts to provide (A) a legal opinion of the Company’s outside counsel, dated the effective date of such registration statement addressed to the Company, (B) on the date that such Registrable Securities are delivered to the underwriters for sale in connection with a Demand Registration or Shelf Offering, if such securities are being sold through underwriters, or, if such securities are not being sold through underwriters, on the closing date of the applicable sale, (1) one or more legal opinions of the Company’s outside counsel, dated such date, in form and substance as customarily given to underwriters in an underwritten public offering or, in the case of a non-underwritten offering, to the broker, placement agent or other agent of the Holders assisting in the sale of the Registrable Securities and (2) one or more “negative assurances letters” of the Company’s outside counsel, dated such date, in form and substance as is customarily given to underwriters in an underwritten public offering or, in the case of a non-underwritten offering, to the broker, placement agent or other agent of the Holders assisting in the sale of the Registrable Securities, in each case, addressed to the underwriters, if any, or, if requested, in the case of a non-underwritten offering, to the broker, placement agent or other agent of the Holders assisting in the sale of the Registrable Securities and (3) customary certificates executed by authorized officers of the Company as may be requested by any Holder or any underwriter of such Registrable Securities;

(xxii)if the Company files an Automatic Shelf Registration Statement covering any Registrable Securities, use its best efforts to remain a WKSI (and not become an ineligible issuer (as defined in Rule 405 under the Securities Act)) during the period during which such Automatic Shelf Registration Statement is required to remain effective;

(xxiii)if the Company does not pay the filing fee covering the Registrable Securities at the time an Automatic Shelf Registration Statement is filed, pay such fee at such time or times as the Registrable Securities are to be sold; 

 

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(xxiv)if the Automatic Shelf Registration Statement has been outstanding for at least three (3) years, at the end of the third year, refile a new Automatic Shelf Registration Statement covering the Registrable Securities, and, if at any time when the Company is required to re-evaluate its WKSI status the Company determines that it is not a WKSI, use its best efforts to refile the Shelf Registration Statement on Form S-3 and, if such form is not available, Form S-1 and keep such registration statement effective during the period during which such registration statement is required to be kept effective; and

(xxv)if requested by any Participating Sponsor Investor or Participating Sharma Investor, cooperate with such Participating Sponsor Investor and with the managing underwriter or agent, if any, on reasonable notice to facilitate any Charitable Gifting Event and to prepare and file with the SEC such amendments and supplements to such Registration Statement and the Prospectus used in connection therewith as may be necessary to permit any such recipient Charitable Organization to sell in the underwritten offering if it so elects.

(b)Officer Obligations. Each Holder that is an officer of the Company agrees that if and for so long as he or she is employed by the Company or any Subsidiary thereof, he or she will participate fully in the sale process in a manner customary for persons in like positions and consistent with his or her other duties with the Company, including the preparation of the registration statement and the preparation and presentation of any road shows.

(c)Automatic Shelf Registration Statements. If the Company files any Automatic Shelf Registration Statement for the benefit of the holders of any of its securities other than the Holders, and the Sponsor Investors do not request that their Registrable Securities be included in such Shelf Registration Statement, the Company agrees that, at the request of the Sponsor Investors, it will include in such Automatic Shelf Registration Statement such disclosures as may be required by Rule 430B in order to ensure that the Sponsor Investors may be added to such Shelf Registration Statement at a later time through the filing of a prospectus supplement rather than a post-effective amendment.  If the Company has filed any Automatic Shelf Registration Statement for the benefit of the holders of any of its securities other than the Holders, the Company shall, at the request of the Sponsor Investors, file any post-effective amendments necessary to include therein all disclosure and language necessary to ensure that the holders of Registrable Securities may be added to such Shelf Registration Statement.

(d)Additional Information. The Company may require each seller of Registrable Securities as to which any registration is being effected to furnish the Company such information regarding such seller and the distribution of such securities as the Company may from time to time reasonably request in writing, as a condition to such seller’s participation in such registration.

(e)In-Kind Distributions. If any Sponsor Investor (and/or any of their Affiliates) seeks to effectuate an in-kind distribution of all or part of their Registrable Securities to their respective direct or indirect equityholders, the Company will, subject to any applicable lock-ups, work with the foregoing Persons to facilitate such in-kind distribution in the manner reasonably requested and consistent with the Company’s obligations under the Securities Act. 

(f)Suspended Distributions.  Each Person participating in a registration hereunder agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 4(a)(vi), such Person will immediately discontinue the disposition of its Registrable Securities pursuant to the registration statement until such Person’s receipt of the copies of a supplemented or amended prospectus as contemplated by Section 4(a)(vi), subject to the Company’s compliance with its obligations under Section 4(a)(vi). 

 

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(g)Other.  To the extent that any of the Participating Sponsor Investors or Participating Sharma Investors is or may be deemed to be an “underwriter” of Registrable Securities pursuant to any SEC comments or policies, the Company agrees that (i) the indemnification and contribution provisions contained in Section 6 shall be applicable to the benefit of such Participating Sponsor Investor in their role as an underwriter or deemed underwriter in addition to their capacity as a holder and (ii) such Participating Sponsor Investor shall be entitled to conduct the due diligence which they would normally conduct in connection with an offering of securities registered under the Securities Act, including without limitation receipt of customary opinions and comfort letters addressed to such Participating Sponsor Investor.

Section 5Registration Expenses. 

Except as expressly provided herein, all out-of-pocket expenses incurred by the Company, any Sharma Investor or any Sponsor Investor in connection with the performance of or compliance with this Agreement and/or in connection with any Demand Registration, Piggyback Registration or Shelf Offering, whether or not the same shall become effective, shall be paid by the Company, including, without limitation: (i) all registration and filing fees, and any other fees and expenses associated with filings required to be made with the SEC or FINRA, (ii) all fees and expenses in connection with compliance with any securities or “blue sky” laws, (iii) all printing, duplicating, word processing, messenger, telephone, facsimile and delivery expenses (including expenses of printing certificates for the Registrable Securities in a form eligible for deposit with The Depository Trust Company or other depositary and of printing prospectuses and Company Free Writing Prospectuses), (iv) all fees and disbursements of counsel for the Company and of all independent certified public accountants of the Company (including the expenses of any special audit and cold comfort letters required by or incident to such performance), (v) Securities Act liability insurance or similar insurance if the Company so desires or the underwriters so require in accordance with then-customary underwriting practice, (vi) all fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange on which similar securities of the Company are then listed, (vii) all applicable rating agency fees with respect to the Registrable Securities, (viii) all fees and disbursements of legal counsel for the Company, (ix) all reasonable fees and disbursements of one legal counsel for selling Holders selected by the Sponsor Investors (which may be the same counsel as selected for the Company) together with any necessary local counsel as may be required by the Sponsor Investors, (x) any fees and disbursements of underwriters customarily paid by issuers or sellers of securities, (xi) all fees and expenses of any special experts or other Persons retained by the Company or the Sponsor Investors in connection with any Registration (xii) all of the Company’s internal expenses (including all salaries and expenses of its officers and employees performing legal or accounting duties) and (xiii) all expenses related to the “road-show” for any underwritten offering, including all travel, meals and lodging.  All such expenses are referred to herein as “Registration Expenses.”  The Company shall not be required to pay, and each Person that sells securities pursuant to a Demand Registration, Shelf Offering or Piggyback Registration hereunder will bear and pay, all underwriting discounts and commissions applicable to the Registrable Securities sold for such Person’s account and all transfer taxes (if any) attributable to the sale of Registrable Securities.

Section 6Indemnification and Contribution.

(a)By the Company.  The Company will indemnify and hold harmless, to the fullest extent permitted by law and without limitation as to time, each Holder, such Holder’s officers, directors employees, agents, fiduciaries, stockholders, managers, partners, members, affiliates, direct and indirect equityholders, consultants and representatives, and any successors and assigns thereof, and each Person who controls such holder (within the meaning of the Securities Act) (the “Indemnified Parties”) against all losses, claims, actions, damages, liabilities and expenses (including with respect to actions or proceedings, whether commenced or threatened, and including reasonable attorney fees and expenses) (collectively, 

 

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“Losses”) caused by, resulting from, arising out of, based upon or related to any of the following (each, a “Violation”) by the Company:  (i) any untrue or alleged untrue statement of material fact contained in (A) any registration statement, prospectus, preliminary prospectus or Free‐Writing Prospectus, or any amendment thereof or supplement thereto or (B) any application or other document or communication (in this Section 6, collectively called an “application”) executed by or on behalf of the Company or based upon written information furnished by or on behalf of the Company filed in any jurisdiction in order to qualify any securities covered by such registration under the “blue sky” or securities laws thereof, (ii) any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading or (iii) any violation or alleged violation by the Company of the Securities Act or any other similar federal or state securities laws or any rule or regulation promulgated thereunder applicable to the Company and relating to action or inaction required of the Company in connection with any such registration, qualification or compliance.  In addition, the Company will reimburse such Indemnified Party for any legal or any other expenses reasonably incurred by them in connection with investigating or defending any such Losses.  Notwithstanding the foregoing, the Company will not be liable in any such case to the extent that any such Losses result from, arise out of, are based upon, or relate to an untrue statement, or omission, made in such registration statement, any such prospectus, preliminary prospectus or Free‐Writing Prospectus or any amendment or supplement thereto, or in any application, in reliance upon, and in conformity with, written information prepared and furnished in writing to the Company by such Indemnified Party expressly for use therein or by such Indemnified Party’s failure to deliver a copy of the registration statement or prospectus or any amendments or supplements thereto after the Company has furnished such Indemnified Party with a sufficient number of copies of the same.  In connection with an underwritten offering, the Company will indemnify such underwriters, their officers and directors, and each Person who controls such underwriters (within the meaning of the Securities Act) to the same extent as provided above with respect to the indemnification of the Indemnified Parties or as otherwise agreed to in the underwriting agreement executed in connection with such underwritten offering. Such indemnity and reimbursement of expenses shall remain in full force and effect regardless of any investigation made by or on behalf of such Indemnified Party and shall survive the transfer of such securities by such seller.

(b)By Holders.  In connection with any registration statement in which a Holder is participating, each such Holder will furnish to the Company in writing such information and affidavits as the Company reasonably requests for use in connection with any such registration statement or prospectus and, to the extent permitted by law, will indemnify the Company, its officers, directors, employees, agents and representatives, and each Person who controls the Company (within the meaning of the Securities Act) against any Losses resulting from (as determined by a final and appealable judgment, order or decree of a court of competent jurisdiction) any untrue statement of material fact contained in the registration statement, prospectus or preliminary prospectus or any amendment thereof or supplement thereto or any omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, but only to the extent that such untrue statement or omission is contained in any information or affidavit so furnished in writing by such Holder expressly for use therein; provided that the obligation to indemnify will be individual, not joint and several, for each Holder and will be limited to the net amount of proceeds received by such Holder from the sale of Registrable Securities pursuant to such registration statement.

(c)Claim Procedure.  Any Person entitled to indemnification hereunder will (i) give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification (provided that the failure to give prompt notice will impair any Person’s right to indemnification hereunder only to the extent such failure has prejudiced the indemnifying party) and (ii) unless in such indemnified party’s reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist with respect to such claim, permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party.  If such defense is assumed, the indemnifying party will not be subject to any liability for any settlement made by the indemnified party without its consent (but such consent will not be unreasonably withheld, conditioned or delayed).  An indemnifying party who 

 

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is not entitled to, or elects not to, assume the defense of a claim will not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in the reasonable judgment of any indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such claim. In such instance, the conflicted indemnified parties will have a right to retain one separate counsel, chosen by the majority of the conflicted indemnified parties involved in the indemnification and approved by the Sponsor Investor, at the expense of the indemnifying party.

(d)Contribution.  If the indemnification provided for in this Section 6 is held by a court of competent jurisdiction to be unavailable to, or is insufficient to hold harmless, an indemnified party or is otherwise unenforceable with respect to any Loss referred to herein, then such indemnifying party will contribute to the amounts paid or payable by such indemnified party as a result of such Loss, (i) in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other hand in connection with the statements or omissions which resulted in such Loss as well as any other relevant equitable considerations or (ii) if the allocation provided by clause (i) of this Section 6(d) is not permitted by applicable law, then in such proportion as is appropriate to reflect not only such relative fault but also the relative benefit of the Company on the one hand and of the sellers of Registrable Securities and any other sellers participating in the registration statement on the other in connection with the statement or omissions which resulted in such Losses, as well as any other relevant equitable considerations; provided that the maximum amount of liability in respect of such contribution will be limited, in the case of each seller of Registrable Securities, to an amount equal to the net proceeds actually received by such seller from the sale of Registrable Securities effected pursuant to such registration.  The relative fault of the indemnifying party and of the indemnified party will be determined by reference to, among other things, whether the untrue (or, as applicable alleged) untrue statement of a material fact or the omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.  The parties hereto agree that it would not be just or equitable if the contribution pursuant to this Section 6(d) were to be determined by pro rata allocation or by any other method of allocation that does not take into account such equitable considerations.  The amount paid or payable by an indemnified party as a result of the Losses referred to herein will be deemed to include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending against any action or claim which is the subject hereof.  No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any Person who is not guilty of such fraudulent misrepresentation.

(e)Release.  No indemnifying party will, except with the consent of the indemnified party, consent to the entry of any judgment or enter into any settlement that does not include as an unconditional term thereof giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such claim or litigation.

(f)Non-exclusive Remedy; Survival.  The indemnification and contribution provided for under this Agreement will be in addition to any other rights to indemnification or contribution that any indemnified party may have pursuant to law or contract (and the Company and its Subsidiaries shall be considered the indemnitors of first resort in all such circumstances to which this Section 6 applies) and will remain in full force and effect regardless of any investigation made by or on behalf of the indemnified party or any officer, director or controlling Person of such indemnified party and will survive the transfer of Registrable Securities and the termination or expiration of this Agreement.

Section 7Cooperation with Underwritten Offerings.  No Person (unless determined by AKKR Management Company, LLC (or its designee)) may participate in any underwritten registration hereunder unless such Person (i) agrees to sell such Person’s securities on the basis provided in any 

 

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underwriting arrangements approved by the Person or Persons entitled hereunder to approve such arrangements (including, without limitation, pursuant to the terms of any over-allotment or “green shoe” option requested by the underwriters; provided that no Holder will be required to sell more than the number of Registrable Securities such Holder has requested to include in such registration) and (ii) completes, executes and delivers all questionnaires, powers of attorney, stock powers, custody agreements, indemnities, underwriting agreements and other documents and agreements required under the terms of such underwriting arrangements or as may be reasonably requested by the Company and the lead managing underwriter(s).  To the extent that any such agreement is entered into pursuant to, and consistent with, Section 3, Section 4 and/or this Section 7, the respective rights and obligations created under such agreement will supersede the respective rights and obligations of the Holders, the Company and the underwriters created thereby with respect to such registration.

Section 8“Rule 144”;  Coordination and Cooperation.  

(a)With a view to making available to the Holders the benefits of Rule 144 and any other rule or regulation of the SEC that may at any time permit a holder to sell securities of the Company to the public without registration, the Company shall, to the extent requested by AKKR Management Company, LLC (or its designee):

(i)make and keep public information available, as those terms are understood and defined in Rule 144;

(ii)use best efforts to file with the SEC in a timely manner all reports and other documents required of the Company under the Exchange Act; and

(iii)furnish to any Holder so long as the holder owns Registrable Securities, promptly upon request, a written statement by the Company as to its compliance with the reporting requirements of Rule 144 and of the Exchange Act, a copy of the most recent annual or quarterly report of the Company, and such other reports and documents so filed or furnished by the Company as such Holder may request in connection with the sale of Registrable Securities without registration.

(b)During the Coordination Period (as defined below), no Holder shall transfer any or all of its Registrable Securities pursuant to Rule 144 or a “block trade”, in each case other than in compliance with this Section 8(b) hereof. Prior to the expiration of the Coordination Period, AKKR Management Company, LLC (or its designee) may require the Holders to make reasonable efforts to coordinate their efforts to transfer Registrable Securities pursuant to Rule 144 (“144 Coordination”) or to discontinue such requirement. As of the date of this Agreement, 144 Coordination shall be required until the earlier of (x) the expiration of the Coordination Period and (y) such time as the AKKR Management Company, LLC (or its designee) provides a subsequent notice to the Holders that such coordination is discontinued. AKKR Management Company, LLC (or its designee) may reinstitute and discontinue 144 Coordination from time to time during the Coordination Period by providing notice to the Holders.

(c)For so long as 144 Coordination is in effect, the Sharma Investors shall promptly notify the Company’s board of directors when it wishes to sell Registrable Securities under Rule 144; provided that for any given measurement period for purposes of the Rule 144 group volume limit, no Holder shall be permitted to effect transfers of Registrable Securities in excess of their pro rata share (based on its percentage ownership of Registrable Securities held by all Holder at the applicable time) of all Registrable Securities that may be transferred by the Sharma Investors (with respect to any Sharma Investor) or the Sponsor Investors (with respect to any Sponsor Investor) during the applicable measurement period based on its percentage ownership of Registrable Securities held by all Holders at the start of such measurement 

 

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period. In the event any Holder agrees to forego its full pro rata share of the Rule 144 group volume limit by written notice to the Company’s board of directors, the remainder shall be re-allocated pro rata among the other Holders in like manner (except that the Registrable Securities held by such forfeiting Holders at the start of such measurement period shall be excluded from such calculation).

(d)The provisions of this Section 8 shall not apply to any transfer of Registrable Securities (i) in a Public Offering, (ii) to an Affiliate or, with respect to the Sponsor Investors, to any member of the AKKR Group (as defined in the Stockholders Agreement) in a transaction that does not rely on Rule 144 or (iii) at any time with respect to which 144 Coordination is not effective.

(e)Notwithstanding the foregoing, a Holder may opt out of 144 Coordination with respect to any period of time if such Holder delivers a notice to the Company’s board of directors irrevocably committing not to transfer Registrable Securities pursuant to Rule 144 during such period.

(f)The restrictions set forth in this Section 8 shall terminate with respect to any Registrable Securities on the earlier of (i) the second anniversary of the date of the effectiveness of the registration statement for the Company’s initial Public Offering and (ii) with respect to each Holder, such time as such Holder owns less than 2% of the then outstanding Securities (the “Coordination Period”). AKKR Management Company, LLC (or its designee), in its sole discretion, may elect to exclude any Holder from the restrictions set forth in Section 8(b) at any time during the Coordination Period.

Section 9Joinder; Additional Parties; Transfer of Registrable Securities.

(a)Joinder. The Company may from time to time (with the prior written consent of the Sponsor Investors) permit any Person who acquires Common Stock (or rights to acquire Common Stock) to become a party to this Agreement and to be entitled to and be bound by all of the rights and obligations as a Holder by obtaining an executed joinder to this Agreement from such Person in the form of Exhibit B attached hereto (a “Joinder”).  The Sponsor Investors may permit any Person who acquires Common Stock (or rights to acquire Common Stock) to become a party to this Agreement and to be entitled to and be bound by all or any specified portion of the rights and obligations as a Sponsor Investor and/or Holder by obtaining an executed Joinder.  Upon the execution and delivery of a Joinder by such Person, the Common Stock held by such Person shall become the category of Registrable Securities (i.e. Sponsor Investor Registrable Securities, Sharma Investor Registrable Securities or Executive Registrable Securities), and such Person shall be deemed the category of Holder (i.e. Sponsor Investor, Sharma Investor or Executive), in each case as set forth on the signature page to such Joinder.  

(b)Restrictions on Transfers.  Prior to transferring any Registrable Securities to any Person (including, without limitation, by operation of law), the transferring Holder must first obtain the prior written consent of the Sponsor Investors, and if so obtained, cause the prospective transferee to execute and deliver to the Company a Joinder, except that such consent and Joinder shall not be required in the case of (i) a transfer to the Company, (ii) a transfer by any Sponsor Investor to (at such Sponsor Investor’s election) its direct and indirect partners, members and Affiliates and each of their respective directors, managers, officers, investment professionals, operating partners and employees and their respective immediate family members (and any trust or other entity whose beneficiaries or equityholders are any of the foregoing direct or indirect partners or members), (iii) a Public Offering, (iv) a sale pursuant to Rule 144 and/or (v) a transfer in connection with a Sale of the Company.  Any transfer or attempted transfer of Registrable Securities in violation of any provision of this Agreement will be void, and the Company will not record such transfer on its books or treat any purported transferee of such Registrable Securities as the owner thereof for any purpose (but the Company will be entitled to enforce against such Person the obligations hereunder).

 

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(c)Legend.  Each certificate (if any) evidencing any Registrable Securities and each certificate issued in exchange for or upon the transfer of any Registrable Securities (unless such Registrable Securities would no longer be Registrable Securities after such transfer) will be stamped or otherwise imprinted with a legend in substantially the following form:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFER AND OTHER PROVISIONS SET FORTH IN A REGISTRATION RIGHTS AGREEMENT DATED AS OF MAY 24, 2021 AMONG THE ISSUER OF SUCH SECURITIES (THE “COMPANY”) AND CERTAIN OF THE COMPANY’S EQUITYHOLDERS, AS AMENDED.  A COPY OF SUCH AGREEMENT WILL BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST.”

The Company will imprint such legend on certificates evidencing Registrable Securities outstanding prior to the date hereof.  The legend set forth above will be removed from the certificates evidencing any securities that have ceased to be Registrable Securities.

Section 10General Provisions.

(a)Amendments and Waivers.  Except as otherwise provided herein, the provisions of this Agreement may be amended, modified or waived only with the prior written consent of the Company and the Sponsor Investors who are then Holders; provided that no such amendment, modification or waiver that would treat a specific Holder or group of Holders of Registrable Securities (i.e., Sponsor Investors, Sharma Investors or Executives) in a manner materially and adversely different than any other Holder or group of Holders will be effective against such Holder or group of Holders without the consent of the holders of a majority of the Registrable Securities that are held by the group of Holders that is materially and adversely affected thereby.  The failure or delay of any Person to enforce any of the provisions of this Agreement will in no way be construed as a waiver of such provisions and will not affect the right of such Person thereafter to enforce each and every provision of this Agreement in accordance with its terms.  A waiver or consent to or of any breach or default by any Person in the performance by that Person of his, her or its obligations under this Agreement will not be deemed to be a consent or waiver to or of any other breach or default in the performance by that Person of the same or any other obligations of that Person under this Agreement.

(b)Remedies.  The parties to this Agreement will be entitled to enforce their rights under this Agreement specifically (without posting a bond or other security), to recover damages caused by reason of any breach of any provision of this Agreement and to exercise all other rights existing in their favor.  The parties hereto agree and acknowledge that a breach of this Agreement would cause irreparable harm and money damages would not be an adequate remedy for any such breach and that, in addition to any other rights and remedies existing hereunder, any party will be entitled to specific performance and/or other injunctive relief from any court of law or equity of competent jurisdiction (without posting any bond or other security) in order to enforce or prevent violation of the provisions of this Agreement.

(c)Severability.  Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited, invalid, illegal or unenforceable in any respect under any applicable law or regulation in any jurisdiction, such prohibition, invalidity, illegality or unenforceability will not affect the validity, legality or enforceability of any other provision of this Agreement in such jurisdiction 

 

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or in any other jurisdiction, but this Agreement will be reformed, construed and enforced in such jurisdiction as if such prohibited, invalid, illegal or unenforceable provision had never been contained herein.

(d)Entire Agreement.  Except as otherwise provided herein, this Agreement contains the complete agreement and understanding among the parties hereto with respect to the subject matter hereof and supersedes and preempts any prior understandings, agreements or representations by or among the parties hereto, written or oral, which may have related to the subject matter hereof in any way.

(e)Successors and Assigns.  Except as otherwise provided herein, this Agreement will bind and inure to the benefit and be enforceable by the Company and its successors and permitted assigns and the Holders and their respective successors and permitted assigns (whether so expressed or not); provided that any assignment of the rights or obligations hereunder by any Holder (other than any Sponsor Investor) shall require the prior written consent of the Sponsor Investors.  

(f)Notices.  

All notices, demands or other communications to be given or delivered under or by reason of the provisions of this Agreement shall be in writing and shall be deemed to have been given or made (a) when delivered personally to the recipient, (b) one (1) Business Day after being sent to the recipient by reputable overnight courier service (charges prepaid) or (c) when transmitted, if sent by email transmission before 5:00 p.m. Seattle time on a Business Day, and otherwise on the next Business Day. Such notices, demands and other communications shall be sent to the Company, the Sponsor Investors or the Sharma Investors at the addresses indicated below or, in each case, to any 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.

If to the Company, to:

Paymentus Holdings, Inc.

18390 NE 68th St.

Redmond, WA 98052

Attn: Chief Executive Officer and General Counsel

Email: dsharma@paymentus.com; jmorrow@paymentus.com

 

with a copy (which copy shall not constitute notice) to:

 

Wilson Sonsini Goodrich & Rosati, P.C.

701 Fifth Avenue, Suite 5100

Seattle, WA 98104

Attn: Michael Nordtvedt; Victor Nilsson

E-mail: mnordtvedt@wsgr.com; vnilsson@wsgr.com

 

If to any AKKR Investor, to:

 

c/o Accel-KKR Capital Management, L.P.

2180 Sand Hill Road

Suite 300

Menlo Park, CA 94025

Attention: Rob Polumbo; Jason Klein

Email: rob@accel-kkr.com; jason@accel-kkr.com

 

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with copies (which shall not constitute notice) to:

Kirkland & Ellis LLP

601 Lexington Avenue

New York, NY 10022

Attn: Joshua N. Korff, P.C.

E-mail: jkorff@kirkland.com 

 

and

 

Kirkland & Ellis LLP

300 N. LaSalle

Chicago, IL 60654

Attn: Jeffrey Seifman, P.C.; Shelly M. Hirschtritt, P.C.; Kevin W. Mausert, P.C.

E-mail: jseifman@kirkland.com; shelly.hirschtritt@kirkland.com; kevin.mausert@kirkland.com 

If to any Sharma Investor, to:

Dushyant Sharma

c/o Paymentus Holdings, Inc.

18390 NE 68th St.

Redmond, WA 98052

E-mail: dsharma@paymentus.com

 

with a copy (which shall not constitute notice) to:

 

Moore & Van Allen PLLC

100 North Tryon Street, Suite 4700

Charlotte, NC 28202

Attn: Christopher J.C. Jones

E-mail: chrisjones@mvalaw.com

 

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.

 

(g)Business Days.  If any time period for giving notice or taking action hereunder expires on a day that is not a Business Day, the time period will automatically be extended to the Business Day immediately following such Saturday, Sunday or legal holiday.

(h)Governing Law.  All issues and questions concerning the construction, validity, interpretation and enforcement of this Agreement and the exhibits and schedules hereto will 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.  

(i)MUTUAL 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 

 

-19-

 

RELATING TO OR ARISING IN ANY WAY FROM THIS AGREEMENT OR THE MATTERS CONTEMPLATED HEREBY.

(j)CONSENT TO JURISDICTION AND SERVICE OF PROCESS.  EACH OF THE PARTIES IRREVOCABLY SUBMITS TO THE NON‐EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE, FOR THE PURPOSES OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF THIS AGREEMENT, ANY RELATED AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY.  EACH OF THE PARTIES HERETO FURTHER AGREES THAT SERVICE OF ANY PROCESS, SUMMONS, NOTICE OR DOCUMENT BY U.S. REGISTERED MAIL TO SUCH PARTY’S RESPECTIVE ADDRESS SET FORTH ABOVE WILL BE EFFECTIVE SERVICE OF PROCESS FOR ANY ACTION, SUIT OR PROCEEDING WITH RESPECT TO ANY MATTERS TO WHICH IT HAS SUBMITTED TO JURISDICTION IN THIS PARAGRAPH.  EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY OBJECTION TO THE LAYING OF VENUE OF ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF THIS AGREEMENT, ANY RELATED DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE, AND HEREBY AND THEREBY FURTHER IRREVOCABLY AND UNCONDITIONALLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION, SUIT OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

(k)No Recourse.  Notwithstanding anything to the contrary in this Agreement, the Company and each Holder agrees and acknowledges that no recourse under this Agreement or any documents or instruments delivered in connection with this Agreement, will be had against any current or future director, officer, employee, general or limited partner or member of any Holder or any Affiliate or assignee thereof, whether by the enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any statute, regulation or other applicable law, it being expressly agreed and acknowledged that no personal liability whatsoever will attach to, be imposed on or otherwise be incurred by any current or future officer, agent or employee of any Holder or any current or future member of any Holder or any current or future director, officer, employee, partner or member of any Holder or of any Affiliate or assignee thereof, as such for any obligation of any Holder under this Agreement or any documents or instruments delivered in connection with this Agreement for any claim based on, in respect of or by reason of such obligations or their creation.

(l)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 will be by way of example rather than by limitation.

(m)No Strict Construction.  The language used in this Agreement will be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of strict construction will be applied against any party.

(n)Counterparts.  This Agreement may be executed in multiple counterparts, any one of which need not contain the signature of more than one party, but all such counterparts taken together will constitute one and the same agreement.

(o)Electronic Delivery.  This Agreement, the agreements referred to herein, and each other agreement or instrument entered into in connection herewith or therewith or contemplated hereby or thereby, and any amendments hereto or thereto, to the extent executed and delivered by means of a photographic, photostatic, facsimile or similar reproduction of such signed writing using a facsimile 

 

-20-

 

machine or electronic mail will be treated in all manner and respects as an original agreement or instrument and will be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person.  At the request of any party hereto or to any such agreement or instrument, each other party hereto or thereto will re‐execute original forms thereof and deliver them to all other parties.  No party hereto or to any such agreement or instrument will raise the use of a facsimile machine or electronic mail to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of a facsimile machine or electronic mail as a defense to the formation or enforceability of a contract and each such party forever waives any such defense.

(p)Further Assurances.  In connection with this Agreement and the transactions contemplated hereby, each Holder agrees to execute and deliver any additional documents and instruments and perform any additional acts that may be necessary or appropriate to effectuate and perform the provisions of this Agreement and the transactions contemplated hereby.

(q)Dividends, Recapitalizations, Etc.  If at any time or from time to time there is any change in the capital structure of the Company by way of a stock split, stock dividend, combination or reclassification, or through a merger, consolidation, reorganization or recapitalization, or by any other means, appropriate adjustment will be made in the provisions hereof so that the rights and privileges granted hereby will continue.

(r)No Third-Party Beneficiaries. No term or provision of this Agreement is intended to be, or shall be, for the benefit of any Person not a party hereto, and no such other Person shall have any right or cause of action hereunder, except as otherwise expressly provided herein.

(s)Current Public Information. At all times after the Company has filed a registration statement with the SEC pursuant to the requirements of either the Securities Act or the Exchange Act, the Company will file all reports required to be filed by it under the Securities Act and the Exchange Act and will take such further action as the Sponsor Investors may reasonably request, all to the extent required to enable such Holders to sell Registrable Securities, unless otherwise agreed by the Sponsor Investors.

 

*     *     *     *    *

 

 

-21-

 

 

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

 

	
PAYMENTUS HOLDINGS, INC.

	
 

	
By:
	
/s/ Dushyant Sharma

	
Name:
	
Dushyant Sharma

	
Title:
	
President and Chief Executive Officer

 

[Signature Page to Registration Rights Agreement]

 

 

 

	
SPONSOR INVESTORS:

	
 

	
ACCEL-KKR CAPITAL PARTNERS CV

	
III, LP, a Delaware limited partnership

	
 

	
By:
	
AKKR Fund III Management Company CV, LP

	
Its:
	
General Partner

	
 
	
 

	
By:
	
AKKR Management Company, LLC

	
Its:
	
General Partner

	
 
	
 

	
By:
	
Accel-KKR Holdings GP, LLC

	
Its:
	
Managing Member

	
 
	
 

	
By:
	
/s/ Thomas C. Barnds

	
Name:
	
Thomas C. Barnds

	
Title:
	
Manager

	
 
	
 

	
ACCEL-KKR MEMBERS FUND, LLC

	
 

	
By:
	
AKKR Management Company, LLC

	
Its:
	
Managing Member

	
 

	
By:
	
Accel-KKR Holdings GP, LLC

	
Its:
	
Managing Member

	
 
	
 

	
By:
	
/s/ Thomas C. Barnds

	
Name:
	
Thomas C. Barnds

	
Title:
	
Manager

 

[Signature Page to Registration Rights Agreement]

 

 

 

	
ACCEL-KKR GROWTH CAPITAL

	
PARTNERS II, LP

	
 

	
By:
	
AKKR Growth Capital Management Company II, LP

	
Its:
	
General Partner

	
 
	
 

	
By:
	
AKKR Management Company, LLC

	
Its:
	
Managing Member

	
 
	
 

	
By:
	
Accel-KKR Holdings GP, LLC

	
Its:
	
Managing Member

	
 
	
 

	
By:
	
/s/ Thomas C. Barnds

	
Name:
	
Thomas C. Barnds

	
Title:
	
Manager

	
 
	
 

	
ACCEL-KKR GROWTH CAPITAL

	
PARTNERS III, LP

	
 

	
By:
	
AKKR Growth Capital Management Company III, LP

	
Its:
	
General Partner

	
 
	
 

	
By:
	
AKKR Management Company, LLC

	
Its:
	
General Partner

	
 
	
 

	
By:
	
Accel-KKR Holdings GP, LLC

	
Its:
	
Managing Member

	
 
	
 

	
By:
	
/s/ Thomas C. Barnds

	
Name:
	
Thomas C. Barnds

	
Title:
	
Manager

 

[Signature Page to Registration Rights Agreement]

 

 

 

	
ACCEL-KKR GROWTH CAPITAL

PARTNERS II STRATEGIC FUND, LP

	
 

	
By:
	
AKKR Growth Capital Management Company II, LP

	
Its:
	
Managing Member

	
 
	
 

	
By:
	
AKKR Management Company, LLC

	
Its:
	
Managing Member

	
 
	
 

	
By:
	
Accel-KKR Holdings GP, LLC

	
Its:
	
Managing Member

	
 
	
 

	
By:
	
/s/ Thomas C. Barnds

	
Name:
	
Thomas C. Barnds

	
Title:
	
Manager

	
 
	
 

	
KKR-AKI INVESTORS, LLC

	
 

	
 

	
By:
	
/s/ Thomas C. Barnds

	
Name:
	
Thomas C. Barnds

	
Title:
	
 

 

[Signature Page to Registration Rights Agreement]

 

 

 

	
SHARMA INVESTORS:

	
 

	
/s/ Dushyant Sharma

	
Dushyant Sharma

	
 
	
 

	
Ashigrace LLC

	
 
	
 

	
By:
	
/s/ Dushyant Sharma

	
Name:
	
Dushyant Sharma

	
Title:
	
Manager

	
 
	
 

	
The Sharma Family Trust A dated March 30, 2021

	
 

	
By:
	
/s/ Ruma Sharma

	
Name:
	
Ruma Sharma

	
Title:
	
Trustee

	
 
	
 

	
The Sharma Family Trust B dated March 30, 2021

	
 
	
 

	
By:
	
/s/ Ruma Sharma

	
Name:
	
Ruma Sharma

	
Title:
	
Trustee

	
 
	
 

	
The Sharma Family Trust C dated March 30, 2021

	
 
	
 

	
By:
	
/s/ Ruma Sharma

	
Name:
	
Ruma Sharma

	
Title:
	
Trustee

	
 
	
 

	
The Sharma Family Trust D dated March 30, 2021

	
 
	
 

	
By:
	
/s/ Ruma Sharma

	
Name:
	
Ruma Sharma

	
Title:
	
Trustee

 

[Signature Page to Registration Rights Agreement]

 

 

 

	
The Ruma Sharma Family Trust dated

December 3, 2018

	
 

	
By:
	
/s/ Dushyant Sharma

	
Name:
	
Dushyant Sharma

	
Title:
	
Trustee

 

[Signature Page to Registration Rights Agreement]

 

 

 

	
EXECUTIVES:

	
 

	
/s/ John Morrow

	
Name: John Morrow

	
 

	
Address:

	
 

	
c/o Paymentus

	
18390 NE 68th St

	
Redmond, WA 98052

	
 

	
/s/ Matt Parson

	
Name: Matt Parson

	
 

	
Address:

	
 

	
c/o Paymentus

	
18390 NE 68th St

	
Redmond, WA 98052

	
 

	
/s/ Gerasimos (Jerry) Portocalis

	
Name: Gerasimos (Jerry) Portocalis

	
 

	
Address:

	
 

	
c/o Paymentus

	
18390 NE 68th St

	
Redmond, WA 98052

 

 

 

[Signature Page to Registration Rights Agreement]

 

 

EXHIBIT A

DEFINITIONS

Capitalized terms used in this Agreement have the meanings set forth below.

“Affiliate” of any Person means any other Person controlled by, controlling or under common control with such Person and, in the case of an individual, also includes any member of such individual’s Family Group; provided that the Company and its Subsidiaries will not be deemed to be Affiliates of any holder of Registrable Securities.  As used in this definition, “control” (including, with its correlative meanings, “controlling,” “controlled by” and “under common control with”) will mean possession, directly or indirectly, of power to direct or cause the direction of management or policies (whether through ownership of securities, by contract or otherwise).  

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

“Automatic Shelf Registration Statement” has the meaning set forth in Section 1(a).

“Business Day” means a day that is not a Saturday or Sunday or a day on which banks in New York City are authorized or requested by law to close.

“Charitable Gifting Event” means any transfer by a Sponsor Investor or Sharma Investor, or any subsequent transfer by such Holder’s members, partners or other employees, in connection with a bona fide gift to any Charitable Organization on the date of, but prior to, the execution of the underwriting agreement entered into in connection with any underwritten offering.

“Charitable Organization” means a charitable organization as described by Section 501(c)(3) of the Internal Revenue Code of 1986, as in effect from time to time.

“Common Stock” means the Company’s Class A Common Stock, par value $0.0001 per share.  For all purposes under this Agreement, the term “Common Stock” (and the determination of any number of shares of Common Stock or Registrable Securities (or any other similar calculation)) shall include and take into account the shares of Class A Common Stock into which any then-outstanding shares of Class B Common Stock of the Company, par value $0.0001 per share, are convertible into or exchangeable therefore, and the Holders of such Class B Common Stock shall be deemed to be (and receive credit for) the owners and Holders of such shares of Class A Common Stock.

“Company” has the meaning set forth in the preamble and shall include its successor(s).

“Demand Initiating Holders” means the Sponsor Investors or the Sharma Investors, as applicable, who request a Demand Registration pursuant to Section 1(a).

“Demand Registrations” has the meaning set forth in Section 1(a).

“End of Suspension Notice” has the meaning set forth in Section 1(f)(ii).

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor federal law then in force, together with all rules and regulations promulgated thereunder. 

 

A-1

 

“Excluded Registration” means any registration (i) pursuant to a Demand Registration (which is addressed in Section 1(a)), or (ii) in connection with registrations on Form S‐4 or S‐8 promulgated by the SEC or any successor or similar forms). 

“Executives” has the meaning set forth in the recitals.

“Executive Registrable Securities” means any Common Stock held by the management employees of the Company who are listed as “Executives” on the signature page hereto or to a Joinder. 

“Family Group” means with respect to any individual, such individual’s current or former spouse, their respective parents, descendants of such parents (whether natural or adopted) and the spouses of such descendants, any trust, limited partnership, corporation or limited liability company established solely for the benefit of such individual or such individual’s current or former spouse, their respective parents, descendants of such parents (whether natural or adopted) or the spouses of such descendants. 

“FINRA” means the Financial Industry Regulatory Authority.

“Free Writing Prospectus” means a free-writing prospectus, as defined in Rule 405.

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

“Holder” means a holder of Registrable Securities who is a party to this Agreement (including by way of Joinder).

“Indemnified Parties” has the meaning set forth in Section 6(a).

“Joinder” has the meaning set forth in Section 9(a).

“Long-Form Registrations” has the meaning set forth in Section 1(a).

“Losses” has the meaning set forth in Section 6(c).

“Participating Sponsor Investors” means any Sponsor Investor(s) participating in the request for a Demand Registration, Shelf Offering, Piggyback Registration or Underwritten Block Trade.

“Participating Sharma Investors” means any Sharma Investor(s) participating (as and to the extent expressly permitted herein) in the request for a Demand Registration, Shelf Offering, Piggyback Registration or Underwritten Block Trade.

“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.

“Piggyback Registrations” has the meaning set forth in Section 2(a).

“Public Offering” means any sale or distribution by the Company and/or Holders to the public of Common Stock or other securities convertible into or exchangeable for Common Stock pursuant to an offering registered under the Securities Act.

“Registrable Securities” means Sponsor Investor Registrable Securities, Sharma Investor Registrable Securities and Executive Registrable Securities.  As to any particular Registrable Securities, such securities will cease to be Registrable Securities when they have been (a) sold or distributed pursuant 

 

A-2

 

to a Public Offering, (b) sold in compliance with Rule 144, (c) distributed to the direct or indirect partners or members of a Sponsor Investor without a corresponding grant or assignment of rights hereunder or (d) repurchased by the Company or a Subsidiary of the Company.  For purposes of this Agreement, a Person will be deemed to be a holder of Registrable Securities, and the Registrable Securities will be deemed to be in existence, whenever such Person has the right to acquire, directly or indirectly, such Registrable Securities (upon conversion or exercise in connection with a transfer of securities or otherwise, but disregarding any restrictions or limitations upon the exercise of such right), whether or not such acquisition has actually been effected, and such Person will be entitled to exercise the rights of a holder of Registrable Securities hereunder (it being understood that a holder of Registrable Securities may only request that Registrable Securities in the form of Common Stock be registered pursuant to this Agreement).  Notwithstanding the foregoing, any Registrable Securities held by any Person (other than any Sponsor Investor or its Affiliates) that may be sold under Rule 144(b)(1)(i) without limitation under any of the other requirements of Rule 144 will be deemed not to be Registrable Securities. 

“Registration Expenses” has the meaning set forth in Section 5.

“Rule 144”, “Rule 158”, “Rule 405”, “Rule 415”, “Rule 403B” and “Rule 462” mean, in each case, such rule promulgated under the Securities Act (or any successor provision) by the SEC, as the same will be amended from time to time, or any successor rule then in force.

“Sale of the Company” means any transaction or series of transactions pursuant to which any Person(s) or a group of related Persons (other than any Sponsor Investor and/or its Affiliates) in the aggregate acquires: (i)  a majority of the voting power of the outstanding capital stock of the Company entitled to vote (other than voting rights accruing only in the event of a default, breach, event of noncompliance or other contingency) to elect directors with a majority of the voting power of the Company’s board of directors (whether by merger, consolidation, reorganization, combination, sale or transfer of the Company’s Common Stock) or (ii) all or substantially all of the Company’s and its Subsidiaries’ assets determined on a consolidated basis; provided that a Public Offering will not constitute a Sale of the Company.

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

“SEC” means the United States Securities and Exchange Commission.

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

“Securities Act” means the Securities Act of 1933, as amended from time to time, or any successor federal law then in force, together with all rules and regulations promulgated thereunder.

“Sharma Investors” has the meaning set forth in the recitals.

“Sharma Investor Registrable Securities” means (i) any Common Stock held (directly or indirectly) by any Sharma Investors or any of their Affiliates, and (ii) any equity securities of the Company or any Subsidiary issued or issuable with respect to the securities referred to in clause (i) above by way of dividend, distribution, split or combination of securities, or any recapitalization, merger, consolidation or other reorganization.

“Shelf Offering” has the meaning set forth in Section 1(d)(i).

“Shelf Offering Notice” has the meaning set forth in Section 1(d)(i).

 

A-3

 

“Shelf Registration” has the meaning set forth in Section 1(a).

“Shelf Registrable Securities” has the meaning set forth in Section 1(d)(i).

“Shelf Registration Statement” has the meaning set forth in Section 1(d).

“Short-Form Registrations” has the meaning set forth in Section 1(a).

“Sponsor Investors” has the meaning set forth in the recitals and their respective assigns (unless otherwise determined by AKKR Management Company, LLC (or its designee)); provided that any decision to be made under this Agreement by the Sponsor Investors shall be made by the holders of a majority of all Sponsor Investor Registrable Securities.

“Sponsor Investor Registrable Securities” means (i) any Common Stock held (directly or indirectly) by any Sponsor Investor or any of its Affiliates, and (ii) any equity securities of the Company or any Subsidiary issued or issuable with respect to the securities referred to in clause (i) above by way of dividend, distribution, split or combination of securities, or any recapitalization, merger, consolidation or other reorganization.

“Stockholders Agreement” means that certain Stockholders Agreement of the Company, dated as of May 24, 2021, as amended, restated or amended and restated after the date hereof.

“Subsidiary” means, with respect to the Company, 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 the Company or one or more of the other Subsidiaries of the Company 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 the Company or one or more Subsidiaries of the Company or a combination thereof.  For purposes hereof, a Person or Persons will be deemed to have a majority ownership interest in a limited liability company, partnership, association or other business entity if such Person or Persons will be allocated a majority of limited liability company, partnership, association or other business entity gains or losses or will be or control the managing director or general partner of such limited liability company, partnership, association or other business entity.

“Suspension Event” has the meaning set forth in Section 1(f)(ii).

“Suspension Notice” has the meaning set forth in Section 1(f)(ii).

“Suspension Period” has the meaning set forth in Section 1(f)(i).

“Violation” has the meaning set forth in Section 6(a).

“WKSI” means a “well-known seasoned issuer” as defined under Rule 405.

 

 

A-4

 

 

EXHIBIT B

The undersigned is executing and delivering this Joinder pursuant to the Registration Rights Agreement dated as of May 24, 2021 (as amended, modified and waived from time to time, the “Registration Agreement”), among Paymentus Holdings, Inc., a Delaware corporation (the “Company”), and the other persons named as parties therein (including pursuant to other Joinders).  Capitalized terms used herein have the meaning set forth in the Registration Agreement.

By executing and delivering this Joinder to the Company, the undersigned hereby agrees to become a party to, to be bound by, and to comply with the provisions of, the Registration Agreement as a Holder in the same manner as if the undersigned were an original signatory to the Registration Agreement, and the undersigned will be deemed for all purposes to be a Holder, an [Sponsor Investor // Sharma Investor // Executive thereunder] and the undersigned’s ____ shares of Common Stock will be deemed for all purposes to be [Sponsor Investor // Sharma Investor // Executive] Registrable Securities under the Registration Agreement.

Accordingly, the undersigned has executed and delivered this Joinder as of the ___ day of ____________, 20___.

 

		
	
 

	
Signature

	
 

	
 

	
 

	
Print Name

	
 

	
Address:
	
 

	
 
	
 

	
 

 

 

	
Agreed and Accepted as of

	
 
	
 

	
 
	
, 20
	
 
	
 

	
 
	
 

	
PAYMENTUS HOLDINGS, INC.

	
 
	
 

	
By:
	
 

	
 
	
 

	
Its:
	
 

 

 

B-1ck7045120534-ex101_6.htm

Exhibit 10.1

 

Execution Version

 

 

 

PAYMENTUS HOLDINGS, INC.

STOCKHOLDERS AGREEMENT

Dated May 24, 2021

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

Page

 

	
1.
	
Definitions
	
 
	
1

	
 
	
 
	
 
	
 
	
 

	
2.
	
Board
	
 
	
 
	
4

	
 
	
(a)
	
Nomination of Directors
	
 
	
4

	
 
	
(b)
	
Vacancies of Directors
	
 
	
5

	
 
	
(c)
	
Nomination of Slate
	
 
	
5

	
 
	
(d)
	
Voting at Meetings of Stockholders
	
 
	
5

	
 
	
(e)
	
Committees
	
 
	
5

	
 
	
(f)
	
Reimbursement of Expenses
	
 
	
6

	
 
	
(g)
	
No Liability for Election of Recommended Directors
	
 
	
6

	
 
	
 
	
 
	
 

	
3.
	
Charter Amendments
	
 
	
6

	
 
	
 
	
 
	
 

	
4.
	
Miscellaneous
	
 
	
6

	
 
	
(a)
	
Notices
	
 
	
6

	
 
	
(b)
	
Severability
	
 
	
8

	
 
	
(c)
	
Headings and Sections
	
 
	
8

	
 
	
(d)
	
Amendment
	
 
	
8

	
 
	
(e)
	
Waiver
	
 
	
8

	
 
	
(f)
	
Successors and Assigns
	
 
	
8

	
 
	
(g)
	
Counterparts
	
 
	
9

	
 
	
(h)
	
Remedies
	
 
	
9

	
 
	
(i)
	
Governing Law; Venue and Forum
	
 
	
9

	
 
	
(j)
	
Mutual Waiver of Jury Trial
	
 
	
9

	
 
	
(k)
	
No Strict Construction
	
 
	
9

	
 
	
(l)
	
Entire Agreement
	
 
	
10

	
 
	
(m)
	
Delivery by Email
	
 
	
10

	
 
	
(n)
	
Further Action
	
 
	
10

	
 
	
(o)
	
Termination
	
 
	
10

	
 
	
(p)
	
Effectiveness
	
 
	
10

	
 
	
(q)
	
Transfer
	
 
	
10

 

 

 

i

 

 

 

STOCKHOLDERS AGREEMENT

This STOCKHOLDERS AGREEMENT (this “Agreement”) dated as of May 24, 2021 among (i) Paymentus Holdings, Inc., a Delaware corporation (the “Company”), (ii) Accel-KKR Capital Partners CV III, LP, a Delaware limited partnership (“AKKR III”), (iii) Accel-KKR Growth Capital Partners II Strategic Fund, LP, a Delaware limited partnership (“AKKR Growth II SF”), (iv) Accel-KKR Growth Capital Partners II, LP, a Delaware limited partnership (“AKKR Growth II”), (v) Accel-KKR Growth Capital Partners III, LP, a Delaware limited partnership (“AKKR Growth III”), (vi) Accel-KKR Members Fund, LLC, a Delaware limited liability company (“AKKR Members”), (vii) KKR-AKI Investors, LLC, a Delaware limited liability company (“KKR-AKI” and, collectively with AKKR III, AKKR Growth II SF, AKKR Growth II, AKKR Growth III and AKKR Members, the “AKKR Investors”), (viii) Dushyant Sharma (“Sharma”), (ix) Ashigrace LLC, a North Carolina limited liability company (“Ashigrace”), (x) The Sharma Family Trust A dated March 30, 2021 (“Sharma A”), (xi) The Sharma Family Trust B dated March 30, 2021 (“Sharma B”), (xii) The Sharma Family Trust C dated March 30, 2021 (“Sharma C”), (xiii) The Sharma Family Trust D dated March 30, 2021 (“Sharma D”), (xiv) The Ruma Sharma Family Trust dated December 3, 2018 (“Ruma Sharma Trust” and together with Sharma, Ashigrace, Sharma A, Sharma B, Sharma C, Sharma D and Ruma Sharma Trust, the “Sharma Investors” and collectively together with the AKKR Investors, the “Investor Parties”). 

WHEREAS, the AKKR Investors and Ashigrace are stockholders of the Company;

WHEREAS, the Company is contemplating an offering and sale of shares of Class A Common Stock in an underwritten initial public offering (the “IPO”);

WHEREAS, immediately following the consummation of the IPO, the AKKR Investors and the Sharma Investors will continue to be stockholders of the Company; and

WHEREAS, in connection with, and effective upon the completion of the IPO (such time of completion, the “IPO Time”), the Company and the Investor Parties wish to set forth certain understandings between such parties, including with respect to certain governance and voting matters.

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein made and other good and valuable consideration, the parties hereto hereby agree as follows:

1.Definitions.  As used in this Agreement, the following terms shall have the following meanings:

“Action” means any claim, charge, demand, action, cause of action, inquiry, audit, suit, arbitration, indictment, litigation, hearing or other proceeding (whether civil, criminal, administrative, judicial or investigative, whether formal or informal, whether public or private).

“Affiliate” means, when used with reference to another Person, any Person, directly or indirectly, through one or more intermediaries, Controlling, Controlled by, or under common Control with, such other Person. In addition, Affiliates of an Investor Party shall include all of its partners, officers and employees in their capacities as such, if applicable.

“Agreement” has the meaning set forth in the introductory paragraph.

“AKKR III” has the meaning set forth in the introductory paragraph. 

“AKKR Designation Parties” means the AKKR Investors or their designee(s) (if any). 

 

 

“AKKR Director(s)” has the meaning set forth in Section 2(a)(i).

“AKKR Group” means the AKKR Investors and, unless otherwise determined by the AKKR Designation Parties, their respective direct and indirect partners, members and Affiliates and each of their respective directors, managers, officers, investment professionals, operating partners and employees and their respective immediate family members (and any trust or other entity whose beneficiaries or equityholders are any of the foregoing direct or indirect partners or members).

“AKKR Growth II” has the meaning set forth in the introductory paragraph. 

“AKKR Growth II SF” has the meaning set forth in the introductory paragraph. 

“AKKR Growth III” has the meaning set forth in the introductory paragraph. 

“AKKR Investors” has the meaning set forth in the introductory paragraph and any Person who becomes an AKKR Investor pursuant to Section 4(f). Any decision to be made under this Agreement by the AKKR Investors shall be made by the holders of a majority of all votes of all Common Stock held by the AKKR Investors.

“AKKR Members” has the meaning set forth in the introductory paragraph. 

“Ashigrace” has the meaning set forth in the introductory paragraph. 

“Board” means the Company’s board of directors.

“Business Day” means any calendar day other than a Saturday, Sunday or other day on which commercial banks in Seattle, Washington are authorized or required to close.

“Certificate of Incorporation” means the certificate of incorporation of the Company, as in effect at the IPO Time and as may be amended from time to time.

“Chosen Courts” has the meaning set forth in Section 4(i).

“Class A Common Stock” means the class A common stock, par value $0.0001 per share, of the Company.

“Class B Common Stock” means the class B common stock, par value $0.0001 per share of the Company. 

“Common Stock” means the Class A Common Stock and the Class B Common Stock. 

“Company” has the meaning set forth in the introductory paragraph.

“Control”, “Controlled” or “Controlling” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of company securities, by contract or otherwise.

“Directors” means the directors of the Company at the applicable time.

“Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended, and any applicable rules and regulations promulgated thereunder, and any successor to such statute, rules or regulations. 

2

 

 

“Equity Incentive Plan” means the Company’s 2021 Equity Incentive Plan (as amended or otherwise modified from time to time).

“Governmental Entity” means the United States of America or any other nation, any state or other political subdivision thereof, or any entity exercising executive, legislative, judicial, regulatory or administrative functions of government, including any court, in each case, having jurisdiction over the Company or any of its Subsidiaries or any of the property or other assets of the Company or any of its Subsidiaries.

“Independent Director” has the meaning set forth in Section 2(a)(ii).

“Investor Parties” has the meaning set forth in the introductory paragraph.

“IPO” has the meaning set forth in the introductory paragraph.

“IPO Time” has the meaning set forth in the introductory paragraph.

“KKR-AKI” has the meaning set forth in the introductory paragraph.

“Person” means an individual, a partnership (including a limited partnership), a corporation, a limited liability company, an exempted company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization, association or other entity or a Governmental Entity.

“Registration Rights Agreement” means the Registration Rights Agreement, dated as of the date hereof and as may be amended from time to time, by and among the Company, the Investor Parties and the other parties thereto.

“Restricted Shares” means shares of Common Stock awarded under the Company’s Equity Incentive Plan, subject to time and performance vesting restrictions.

“Ruma Sharma Trust” has the meaning set forth in the introductory paragraph.

“SEC” has the meaning set forth in Section 2(e).

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

“Sharma” has the meaning set forth in the introductory paragraph. 

“Sharma A” has the meaning set forth in the introductory paragraph.

“Sharma B” has the meaning set forth in the introductory paragraph.

“Sharma C” has the meaning set forth in the introductory paragraph.

“Sharma D” has the meaning set forth in the introductory paragraph.

“Sharma Director” has the meaning set forth in Section 2(a)(ii).

“Sharma Investors” has the meaning set forth in the introductory paragraph and any Person who becomes a Sharma Investor pursuant to Section 4(f). Any decision to be made under this Agreement by the Sharma Investors shall be made by the holders of a majority of the votes of all Common Stock held by the Sharma Investors.

3

 

 

“Stockholders” means holders of Common Stock.

“Subsidiary” means, with respect to any Person, any corporation, limited liability company, partnership, association or business entity of which (a) 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 (b) if a limited liability company, partnership, association or other business entity (other than a corporation), a majority of 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 (other than a corporation) if such Person or Persons shall be allocated a majority of limited liability company, partnership, association or other business entity gains or losses or shall be or control any managing member, general partner or analogous controlling Person of such limited liability company, partnership, association or other business entity. Unless otherwise indicated, the term “Subsidiary” refers to a Subsidiary of the Company.

2.Board.

(a)Nomination of Directors.  Notwithstanding anything herein to the contrary, following the IPO Time until such time as the AKKR Group ceases to hold, on a collective basis, more Common Stock than the Sharma Investors hold, on a collective basis, as of such time (but excluding, for this purpose, any Restricted Shares held by the AKKR Group or the Sharma Investors) (such time, the “Appointment Right Time”):

(i)For so long as the AKKR Group owns, directly or indirectly, in the aggregate, at least:

(1)10% of the outstanding shares of Common Stock that are not Restricted Shares, the AKKR Designation Parties shall have the right, but not the obligation, to nominate to the Board five (5) Directors, who shall initially be the following individuals: Robert Palumbo, Jason Klein and Adam Malinowski with two seats for AKKR Directors left vacant; and 

(2)5% of the outstanding shares of Common Stock that are not Restricted Shares, but less than 10% of the outstanding shares of Common Stock that are not Restricted Shares, the AKKR Designation Parties shall have the right, but not the obligation, to nominate to the Board two (2) Directors.  

Any such Director(s) appointed pursuant to this Section 2(a)(i) shall be the “AKKR Director” or “AKKR Directors,” as applicable.

(ii)For so long as (x) the Sharma Investors own, directly or indirectly, in the aggregate, at least 5% of the outstanding shares of Common Stock that are not Restricted Shares or (y) Sharma is the Company’s chief executive officer, the Sharma Investors shall have the right, but not the obligation, to nominate Sharma to the Board and in such capacity Sharma shall be the “Sharma Director.” 

Any Directors other than AKKR Directors and the Sharma Director shall be “Independent Directors”, and the initial Independent Directors shall be William Ingram and Gary Trainor with one seat for an Independent Director left vacant.  Any Independent Director shall not be deemed to be an AKKR Director or Sharma Director.

4

 

 

From and after the Appointment Right Time, and until such time as the AKKR Group ceases to hold, on a collective basis, at least 5% of the outstanding shares of Common Stock that are not Restricted Shares, the AKKR Designation Parties shall have the right, but not the obligation, to nominate to the Board two (2) Directors, who shall be AKKR Directors.

The Board shall consist of three (3) classes of Directors as further specified in the Certificate of Incorporation and, until the Appointment Right Time, each class shall consist of at least one (1) seat for an Independent Director and at least one (1) seat for an AKKR Director.  From and after the Appointment Right Time, so long as the AKKR Designation Parties have the right to designate two (2) AKKR Directors, each seat for an AKKR Director shall be in a separate class of Directors.

(b)Vacancies of Directors.  Unless the Board otherwise requests, and subject to the Directors’ fiduciary duties, in the event of a reduction in the number of AKKR Directors to be designated in accordance with the provisions of Section 2(a), the AKKR Investors shall use their best efforts to obtain the resignations of the number of AKKR Directors corresponding with such reduction.  In the event that a vacancy is created at any time by the death, disability, removal or resignation of any Director designated pursuant to this Section 2, subject to their fiduciary duties under applicable law, the remaining Directors shall cause the vacancy created thereby to be filled, (1) in the case of a vacancy created by an AKKR Director, by a new designee of the AKKR Designation Parties and (2) in the case of a vacancy created by an Independent Director, by a person identified by the Board (with the assistance of the Nominating and Corporate Governance Committee or similar committee of the Board) and nominated by the Nominating and Corporate Governance Committee or a similar committee of the Board, and the Company agrees to take, at any time and from time to time, all actions necessary to cause any vacancies to be filled pursuant to this Section 2(b); provided, that notwithstanding the foregoing, in the absence of any designation from the AKKR Designation Parties or the Sharma Investors holding the right to designate a Director as specified above, the Director previously designated by them and then serving shall be reelected if still eligible and willing to serve as provided herein and otherwise, such Board seat shall remain vacant.

(c)Nomination of Slate. In connection with each election of Directors, the Company agrees to use its best efforts cause the election of the slate of nominees recommended by the Board.  Subject to the Directors’ fiduciary duties, such slate will include the Persons designated pursuant to Section 2(a) and no Investor Party will need to, in their capacity as a stockholder, make a nomination that is contemplated pursuant to Section 2(a).

(d)Voting at Meetings of Stockholders. Each of the Investor Parties, so long as such party holds shares of Common Stock, agrees to vote, and to procure the vote of its Controlled Affiliates, in person or by proxy, or to act by written consent (if applicable) with respect to all shares of Common Stock having the right to vote for the election of Directors beneficially owned by it to cause the election of the Persons designated pursuant to Section 2(a).

(e)Committees. Subject to applicable law and the listing standards of the New York Stock Exchange (the “Exchange”), the Board may delegate any of its power and authority to manage the business and affairs of the Company to any standing or special committee upon such terms as it sees fit as permitted by law and as set forth in the resolutions creating such committee.  As of the date hereof, the Board has designated the following committees: the Audit Committee, the Nominating and Corporate Governance Committee and the Compensation Committee.  As of the IPO Time, the Audit Committee, the Nominating and Corporate Governance Committee and the Compensation Committee shall be comprised of the persons identified in the section entitled “Management–Board Committees” in the Company’s Registration Statement on Form S-1, originally filed with the U.S. Securities and Exchange Commission (the “SEC”) on April 30, 2021 (File No. 333-255683), under the Securities Act of 1933, as amended (such Registration Statement, as amended or supplemented and including the exhibits thereto, is hereinafter referred to as the 

5

 

 

“Registration Statement”). For so long as the AKKR Designation Parties are entitled to designate one or more Directors pursuant to Section 2(a), the AKKR Designation Parties shall be entitled to designate at least one member of each committee of the Board; provided, that, any such designee shall at all times remain eligible to serve on the applicable committee under applicable law and the listing standards of the Exchange, including any applicable general and heightened independence requirements (subject in each case to any applicable exceptions, including those for newly public companies and for “controlled companies,” and any applicable phase-in periods); provided further, that, any special committee established to evaluate any transaction in which AKKR Management Company, LLC or its Affiliates  has an interest which is in conflict with the interests of the Company shall not include any Director designated by the AKKR Designation Parties. If the continued service of a committee member designated by the AKKR Designation Parties would cause the Company to violate any applicable law or listing standard of the Exchange, the AKKR Investors shall use their best efforts to obtain the resignation of such designee from the applicable committee. It is understood by the parties hereto that no AKKR Director is required to be designated on any committee and any failure to exercise such right in this section in a prior period shall not constitute any waiver of such right in a subsequent period. Unless otherwise determined by the Board, and subject to the Directors’ fiduciary duties, each committee shall keep regular minutes and report to the Board as appropriate.

(f)Reimbursement of Expenses. Any Director who is not an employee of the Company or any of its Subsidiaries shall be entitled to cash and/or equity compensation and is eligible to participate in Company equity plans and indemnification in connection with his or her role as a director, and each AKKR Director and, if not an employee of the Company or its Subsidiaries, the Sharma Director shall be entitled to reimbursement for documented, reasonable out-of-pocket expenses incurred in attending meetings of the Board, or any committees thereof and meetings of the Stockholders of the Company (if attending in their capacity as a Director at the request of the Board).

(g)No Liability for Election of Recommended Directors. None of the Company, the Investor Parties, nor any officer, director, stockholder, partner, employee or agent of any such party, makes any representation or warranty as to the fitness or competence of the nominee of any party hereunder to serve on the Board by virtue of such party’s execution of this Agreement or by the act of such party in voting for such nominee pursuant to this Agreement.

3.Charter Amendments. In no event will the Company or any Investor Party approve, or present to the Board for approval, any amendment to Article XIII of the Certificate of Incorporation that is adverse to the AKKR Group in any respect without the prior written consent of the AKKR Designation Parties.

4.Miscellaneous.

(a)Notices. All notices, demands or other communications to be given or delivered under or by reason of the provisions of this Agreement shall be in writing and shall be deemed to have been given or made (a) when delivered personally to the recipient, (b) one (1) Business Day after being sent to the recipient by reputable overnight courier service (charges prepaid) or (c) when transmitted, if sent by email transmission before 5:00 p.m. Seattle time on a Business Day, and otherwise on the next Business Day. Such notices, demands and other communications shall be sent to the Company and the Investor Parties at the addresses indicated below or, in each case, to any 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.

6

 

 

If to the Company, to:

Paymentus Holdings, Inc.

18390 NE 68th St.

Redmond, WA 98052

Attn: Chief Executive Officer and General Counsel

Email: dsharma@paymentus.com; jmorrow@paymentus.com

 

with a copy (which copy shall not constitute notice) to:

 

Wilson Sonsini Goodrich & Rosati, P.C.

701 Fifth Avenue, Suite 5100

Seattle, WA 98104

Attn: Michael Nordtvedt; Victor Nilsson

E-mail: mnordtvedt@wsgr.com; vnilsson@wsgr.com

 

If to any AKKR Investor, to:

 

c/o Accel-KKR Capital Management, L.P.

2180 Sand Hill Road

Suite 300

Menlo Park, CA 94025

Attention: Rob Polumbo; Jason Klein

Email: rob@accel-kkr.com; jason@accel-kkr.com

with copies (which shall not constitute notice) to:

Kirkland & Ellis LLP

601 Lexington Avenue

New York, NY 10022

Attn: Joshua N. Korff, P.C.

E-mail: jkorff@kirkland.com 

 

and

 

Kirkland & Ellis LLP

300 N. LaSalle

Chicago, IL 60654

Attn: Jeffrey Seifman, P.C.; Shelly M. Hirschtritt, P.C.; Kevin W. Mausert, P.C.

E-mail: jseifman@kirkland.com; shelly.hirschtritt@kirkland.com; kevin.mausert@kirkland.com 

If to any Sharma Investor, to:

Dushyant Sharma

c/o Paymentus Holdings, Inc.

18390 NE 68th St.

Redmond, WA 98052

E-mail: dsharma@paymentus.com

 

7

 

 

 

with a copy (which shall not constitute notice) to:

 

Moore & Van Allen PLLC

100 North Tryon Street, Suite 4700

Charlotte, NC 28202

Attn: Christopher J.C. Jones

E-mail: chrisjones@mvalaw.com

 

(b)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.

(c)Headings and Sections. The descriptive headings of this Agreement are inserted for convenience only and do not constitute a substantive part of this Agreement. Whenever required by the context, any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa. The use of the words “including” or “include” in this Agreement shall be by way of example rather than by limitation. Reference to any agreement, document or instrument means such agreement, document or instrument as amended or otherwise modified from time to time in accordance with the terms thereof, and if applicable hereof. The use of the words “or,” “either” and “any” shall not be exclusive.

(d)Amendment. This Agreement may be amended, supplemented or otherwise modified only by a written instrument executed by the Company and if such amendment, supplement or modification has an adverse effect that is material to a party hereto, the execution of such party. 

(e)Waiver. No failure by any party to insist upon the strict performance of any covenant, duty, agreement or condition of this Agreement or to exercise any right or remedy consequent upon a breach thereof shall constitute a waiver of any such breach or any other covenant, duty, agreement or condition. The waiver by any party hereto of a breach of any provision of this Agreement will not operate or be construed as a waiver of any subsequent breach. Any waiver by the Company or any Investor Party of any covenant, duty, agreement or condition of this Agreement or to exercise any right or remedy consequent upon a breach thereof shall only be effective if executed in writing by the party making such waiver.

(f)Successors and Assigns. All covenants and agreements contained in this Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns; provided, that no Person claiming by, through or under a party, as distinct from such party itself, shall have any rights as, or in respect to, a party to this Agreement (including the right to approve or vote on any matter or to notice thereof); provided, further, that any assignment of the rights or obligations hereunder by any Investor Party (other than any AKKR Investor) shall require the prior written consent of the AKKR Designation Parties.  Notwithstanding anything herein to the contrary, (i) each of the Investor Parties (and any subsequent transferee) shall cause any of their respective Affiliates that receives shares of Common Stock to become a party to this Agreement by executing a joinder to this Agreement in substantially the form attached hereto as Exhibit A as an “Investor Party” and as either a “Sharma Investor” or an “AKKR Investor”, as applicable, as a pre-condition to the effectiveness of such transaction, (ii) each other subsequent transferee of any Investor Party may become an Investor Party and either a “Sharma Investor” or an “AKKR Investor” as applicable, with the prior written consent of the AKKR Designation Parties and (iii) for purposes hereof, in no event shall (x) beneficial ownership of shares of Common Stock by one party hereto be counted towards the beneficial ownership of shares of Common Stock of any other 

8

 

 

party hereto solely as a result of such parties being in the same “group” (as defined in the Exchange Act) or party to this Agreement and (y) any party hereto be considered an Affiliate of any other party hereto solely by virtue of being in the same “group” (as defined in the Exchange Act) party to this Agreement.

(g)Counterparts. This Agreement may be executed simultaneously in two or more separate counterparts, any one of which need not contain the signatures of more than one party, but each of which shall be an original and all of which together shall constitute one and the same agreement binding on all the parties hereto.

(h)Remedies. Each party hereto shall have all rights and remedies set forth in this Agreement and all rights and remedies which such Person has been granted at any time under any other agreement or contract and all of the rights which such Person has under any applicable law. Any Person having any rights under any provision of this Agreement or any other agreements contemplated hereby shall be entitled to enforce such rights specifically (without posting a bond or other security), to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights granted by law.  It is agreed and understood that monetary damages would not adequately compensate an injured party for the breach of this Agreement by any party, that this Agreement shall be specifically enforceable, and that any breach or threatened breach of this Agreement shall be the proper subject of a temporary or permanent injunction or restraining order. Further, each party hereto waives any claim or defense that there is an adequate remedy at law for such breach or threatened breach.

(i)Governing Law; Venue and Forum. This Agreement and the exhibits and schedules hereto shall be governed by, and construed in accordance with, the laws of the State of Delaware, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware. Each of the parties hereto irrevocably and unconditionally submits to the exclusive jurisdiction of the Court of Chancery of the State of Delaware, or, if the Court of Chancery of the State of Delaware declines to accept jurisdiction over a particular matter, any federal court within the State of Delaware, or, if both the Court of Chancery of the State of Delaware and the federal courts within the State of Delaware decline to accept jurisdiction over a particular matter, any other state court within the State of Delaware, and, in each case, any appellate court therefrom (together, the “Chosen Courts”), for the purposes of any Action arising out of this Agreement (and agrees that no such Action relating to this Agreement shall be brought by it or any of its Subsidiaries except in such courts). Each of the parties further agrees that, to the fullest extent permitted by applicable law, service of any process, summons, notice or document by U.S. registered mail to such person’s respective address set forth in Section 4(a) shall be effective service of process for any Action in the State of Delaware with respect to any matters to which it has submitted to jurisdiction as set forth above in the immediately preceding sentence. Each of the parties hereto irrevocably and unconditionally waives (and agrees not to plead or claim), any objection to the laying of venue of any Action arising out of this Agreement or any of the other transactions contemplated by this Agreement in the Chosen Courts, or that any such Action, brought in any such court has been brought in an inconvenient forum.

(j)Mutual Waiver of Jury Trial. As a specifically bargained inducement for each of the parties to enter into this Agreement (with each party having had opportunity to consult counsel), each party hereto expressly and irrevocably waives the right to trial by jury in any lawsuit or legal proceeding relating to or arising in any way from this Agreement or the transactions contemplated herein, and any lawsuit or legal proceeding relating to or arising in any way from this Agreement or the transactions contemplated herein shall be tried in a court of competent jurisdiction by a judge sitting without a jury.

(k)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, this 

9

 

 

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. Wherever a conflict exists between this Agreement and any other agreement, this Agreement shall control but solely to the extent of such conflict.

(l)Entire Agreement. This Agreement sets forth the entire understanding of the parties with respect to the subject matter hereof. There are no other agreements, representations, warranties, covenants or undertakings with respect to the subject matter hereof other than those expressly set forth herein.  Concurrently with the execution of this Agreement, on the date hereof, the existing Stockholders Agreement of the Company, dated as of September 6, 2011 (the “Original Agreement”), is hereby terminated without any further action by any Person; provided that if this Agreement is not made effective pursuant to Section 4(p) below on or prior to the tenth (10th) Business Day after the date of this Agreement, then the termination of the Original Agreement pursuant to this Section 4(l) shall be null and void and of no effect as of the date hereof, and shall be deemed to be in effect, without any further action by any Person.

(m)Delivery by Email. This Agreement, the agreements referred to herein, and each other agreement or instrument entered into in connection herewith or therewith or contemplated hereby or thereby, and any amendments hereto or thereto, to the extent signed and delivered by means of email with scan, shall be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. No party hereto or to any such agreement or instrument shall raise the use of a facsimile machine or email to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of email as a defense to the formation or enforceability of a contract, and each such party forever waives any such defense.

(n)Further Action. The parties agree to execute and deliver all documents, provide all information and take or refrain from taking such actions as may be necessary or appropriate to achieve the purposes of this Agreement.

(o)Termination. This Agreement shall terminate as it relates to each Investor Party at such time as such Investor Party ceases to own any shares of Common Stock; provided that such termination shall not affect (i) rights perfected under subsections (f) and (g) of Section 2 or obligations incurred by such Investor Party under this Agreement prior to such termination, and (ii) rights or obligations expressly stated to survive such cessation of ownership of Common Stock; provided further that any rights of the Investor Parties under the Registration Rights Agreement shall survive in accordance with the terms of the Registration Rights Agreement; and provided further that any indemnification rights of the Investor Parties shall survive such termination.

(p)Effectiveness. This Agreement shall become effective upon completion of the IPO at the IPO Time; provided, that this Agreement shall be of no force and effect (i) prior to the completion of the IPO and (ii) if the IPO has not been consummated within ten (10) Business Days from the date of this Agreement.

(q)Transfer.  From the date hereof until the IPO Time, no Party hereto shall sell, transfer, distribute, assign, pledge or otherwise, directly or indirectly, dispose of (whether with or without consideration and whether voluntarily or involuntarily or by operation of law) any interest in such Party’s Common Stock or other equity securities without the prior written consent of the Company.

[Signature pages follow]

 

10

 

 

 

IN WITNESS WHEREOF, each of the undersigned has duly executed this Agreement as of the date first above written.

 

	
PAYMENTUS HOLDINGS, INC.

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/ Dushyant Sharma

	
 
	
 
	
Name:
	
 
	
Dushyant Sharma

	
 
	
 
	
Title:
	
 
	
President and Chief Executive Officer

 

[Signature Page to Stockholders Agreement]

 

 

 

 

	
ACCEL-KKR CAPITAL PARTNERS CV III, LP,

	
a Delaware limited partnership

	
 
	
 
	
 

	
By:
	
 
	
AKKR Fund III Management Company CV, LP

	
Its:
	
 
	
General Partner

	
 
	
 
	
 

	
By:
	
 
	
AKKR Management Company, LLC

	
Its:
	
 
	
General Partner

	
 
	
 
	
 

	
By:
	
 
	
Accel-KKR Holdings GP, LLC

	
Its:
	
 
	
Managing Member

	
 
	
 
	
 

 

	
By:
	
 
	
/s/ Thomas C. Barnds

	
Name:
	
 
	
Thomas C. Barnds

	
Title:
	
 
	
Manager

	
 
	
 
	
 

 

	
ACCEL-KKR MEMBERS FUND, LLC

	
 
	
 
	
 

	
By:
	
 
	
AKKR Management Company, LLC

	
Its:
	
 
	
Managing Member

	
 
	
 
	
 

	
By:
	
 
	
Accel-KKR Holdings GP, LLC

	
Its:
	
 
	
Managing Member

 

	
By:
	
 
	
/s/ Thomas C. Barnds

	
Name:
	
 
	
Thomas C. Barnds

	
Title:
	
 
	
Manager

 

[Signature Page to Stockholders Agreement]

 

 

 

 

	
ACCEL-KKR GROWTH CAPITAL PARTNERS II, LP

	
 
	
 
	
 

	
By:
	
 
	
AKKR Growth Capital Management Company II, LP

	
Its:
	
 
	
General Partner

	
 
	
 
	
 

	
By:
	
 
	
AKKR Management Company, LLC

	
Its:
	
 
	
Managing Member

	
 
	
 
	
 

	
By:
	
 
	
Accel-KKR Holdings GP, LLC

	
Its:
	
 
	
Managing Member

 

	
By:
	
 
	
/s/ Thomas C. Barnds

	
Name:
	
 
	
Thomas C. Barnds

	
Title:
	
 
	
Manager

	
 
	
 
	
 

 

	
ACCEL-KKR GROWTH CAPITAL PARTNERS III, LP

	
 
	
 
	
 

	
By:
	
 
	
AKKR Growth Capital Management Company III, LP

	
Its:
	
 
	
General Partner

	
 
	
 
	
 

	
By:
	
 
	
AKKR Management Company, LLC

	
Its:
	
 
	
General Partner

	
 
	
 
	
 

	
By:
	
 
	
Accel-KKR Holdings GP, LLC

	
Its:
	
 
	
Managing Member

 

	
By:
	
 
	
/s/ Thomas C. Barnds

	
Name:
	
 
	
Thomas C. Barnds

	
Title:
	
 
	
Manager

	
 
	
 
	
 

 

 

[Signature Page to Stockholders Agreement]

 

 

 

 

	
ACCEL-KKR GROWTH CAPITAL PARTNERS II STRATEGIC FUND, LP

	
 
	
 
	
 

	
By:
	
 
	
AKKR Growth Capital Management Company II, LP

	
Its:
	
 
	
Managing Member

	
 
	
 
	
 

	
By:
	
 
	
AKKR Management Company, LLC

	
Its:
	
 
	
Managing Member

	
 
	
 
	
 

	
By:
	
 
	
Accel-KKR Holdings GP, LLC

	
Its:
	
 
	
Managing Member

 

	
By:
	
 
	
/s/ Thomas C. Barnds

	
Name:
	
 
	
Thomas C. Barnds

	
Title:
	
 
	
Manager

	
 
	
 
	
 

 

 

[Signature Page to Stockholders Agreement]

 

 

 

 

	
KKR-AKI INVESTORS, LLC

	
 
	
 
	
 

	
By:
	
 
	
/s/ Thomas C. Barnds

	
Name:
	
 
	
Thomas C. Barnds

	
Title:
	
 
	
 

	
 
	
 
	
 

 

 

[Signature Page to Stockholders Agreement]

 

 

 

 

	
	
/s/ Dushyant Sharma

	
Dushyant Sharma

 

	
Ashigrace LLC

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/ Dushyant Sharma

	
 
	
 
	
Name:
	
 
	
Dushyant Sharma

	
 
	
 
	
Title:
	
 
	
Manager

 

	
The Sharma Family Trust A dated March 30, 2021

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/ Ruma Sharma

	
 
	
 
	
Name:
	
 
	
Ruma Sharma

	
 
	
 
	
Title:
	
 
	
Trustee

 

	
The Sharma Family Trust B dated March 30, 2021

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/ Ruma Sharma

	
 
	
 
	
Name:
	
 
	
Ruma Sharma

	
 
	
 
	
Title:
	
 
	
Trustee

 

	
The Sharma Family Trust C dated March 30, 2021

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/ Ruma Sharma

	
 
	
 
	
Name:
	
 
	
Ruma Sharma

	
 
	
 
	
Title:
	
 
	
Trustee

 

	
The Sharma Family Trust D dated March 30, 2021

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/ Ruma Sharma

	
 
	
 
	
Name:
	
 
	
Ruma Sharma

	
 
	
 
	
Title:
	
 
	
Trustee

 

 

[Signature Page to Stockholders Agreement]

 

 

 

 

	
The Ruma Sharma Family Trust dated December 3, 2018

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/ Dushyant Sharma

	
 
	
 
	
Name:
	
 
	
Dushyant Sharma

	
 
	
 
	
Title:
	
 
	
Trustee

 

 

 

 

[Signature Page to Stockholders Agreement]

 

EXHIBIT A

 

 

FORM OF JOINDER AGREEMENT

This JOINDER AGREEMENT, dated as of [_________], 20[__] (this “Joinder”), is delivered pursuant to that certain Stockholders Agreement, dated as of May 24, 2021 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Stockholders Agreement”) of Paymentus Holdings, Inc., a Delaware corporation (the “Company”), by and among the Company and the parties signatory thereto. Capitalized terms used but not otherwise defined herein have the respective meanings set forth in the Stockholders Agreement.

	
1.
	
Joinder to the Stockholders Agreement. Upon the execution of this Joinder by the undersigned and delivery hereof to the Company, the undersigned hereby becomes a party to the Stockholders Agreement, with all the rights, privileges, obligations and responsibilities of [the AKKR Investor // a Sharma Investor] thereunder. The undersigned hereby agrees that it shall comply with and be fully bound by the terms of the Stockholders Agreement as if it had been a signatory thereto as of the date thereof (including the dates of any amendment, restatement, supplement or other modification thereto).

	
2.
	
Incorporation by Reference. All terms and conditions of the Stockholders Agreement are hereby incorporated by reference in this Joinder as if set forth herein in full.

	
3.
	
Address. All notices under the Stockholders Agreement to the undersigned shall be directed to:

[Name]
[Address]
[City, State, Zip Code]
Attn:
Facsimile:
E-mail:

IN WITNESS WHEREOF, the undersigned has duly executed and delivered this Joinder as of the day and year first above written.

 

	
[NAME OF PARTY]

	
 
	
 
	
 

	
By:
	
 
	
 

	
Name:
	
 
	
 

	
Title:
	
 
	
 

 

Acknowledged and agreed
as of the date first set forth above:

PAYMENTUS HOLDINGS, INC.

 

	
By:
	
 
	
 

	
Name:
	
 
	
 

	
Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00328-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00328-of-00352.parquet"}]]