Document:

Specimen 8.60% Senior Note due 2019

 Exhibit 4.2 
 FORM OF REGISTERED SENIOR NOTE 
 THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE OF A DEPOSITORY. THIS NOTE IS NOT EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR ITS NOMINEE. EXCEPT IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE, NO TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY) MAY BE
REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 
 Unless this Note is presented by an authorized representative of The Depository
Trust Company, a New York corporation (55 Water Street, New York, New York) (“DTC”), to the Company or its agent for registration of transfer, exchange or payment, and this Note is registered in the name of Cede & Co. or such
other name as requested by an authorized representative of DTC, and unless any payment is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof,
Cede & Co., has an interest herein. 
  

			
	 REGISTERED
	 	$300,000,000
		
	 NUMBER R-1
	 	CUSIP No. 754730AB5
		 	ISIN No. US754730AB55

 RAYMOND JAMES FINANCIAL, INC. 
 8.60% SENIOR NOTE DUE 2019 
 RAYMOND JAMES FINANCIAL, INC., a Florida corporation
(herein called the “Company,” which term includes any successor corporation under the Indenture referred to on the reverse hereof), for value received, hereby promises to pay to Cede & Co. or its registered assigns, the principal
sum of THREE HUNDRED MILLION DOLLARS on August 15, 2019 (except to the extent redeemed or repaid prior to that date). The Company shall pay interest on such principal amount at the rate of 8.60% per annum, until payment of such principal
amount has been made or duly provided for, semi-annually in arrears on August 15 and February 15 of each year (each, an “Interest Payment Date”). Interest shall be payable on each Interest Payment Date, commencing on
February 15, 2010, and at the stated maturity or earlier redemption or repayment (the “Maturity Date”). If the Company shall default in the payment of interest due on any Interest Payment Date, then this Note shall bear interest from
the next preceding Interest Payment Date to which interest has been paid, or, if no interest has been paid on the Notes, from August 20, 2009 (the “Original Issue Date”). 
 Interest on this Note shall accrue from the Original Issue Date until the principal amount is paid or duly provided for. Interest (including payments for
partial periods) shall be computed on the basis of a 360-day year of twelve 30-day months. Interest payable on this Note on any Interest Payment Date or the Maturity Date shall include interest accrued from, and including, 

 
the preceding Interest Payment Date in respect of which interest has been paid or duly provided for (or from, and including, the Original Issue Date, if no
interest has been paid or duly provided for) to, but excluding, such Interest Payment Date or the Maturity Date, as the case may be. If the Maturity Date or any Interest Payment Date falls on a day which is not a Business Day (as defined below),
principal of or interest payable with respect to the Maturity Date or such Interest Payment Date shall be paid on the succeeding Business Day, except that, if such Business Day is in the next succeeding calendar year, such payment shall be made on
the immediately preceding Business Day, in each case with the same force and effect as if made on the Maturity Date or such Interest Payment Date, and no additional interest shall accrue as a result of that postponement. The interest so payable, and
punctually paid or duly provided for, on any Interest Payment Date shall be paid to the person in whose name this Note (or one or more predecessor Notes evidencing all or a portion of the same debt as this Note) is registered at the close of
business on the regular record date for such Interest Payment Date, whether or not a Business Day. As long as this Note is in book-entry only form, the regular record date shall be the close of business on the Business Day next preceding such
Interest Payment Date. If, pursuant to the terms of the Indenture, this Note is no longer in book-entry only form, the record date shall be the close of business on February 1 and August 1 preceding an Interest Payment Date. “Business
Day” means any weekday that is not a legal holiday in New York, New York or St. Petersburg, Florida and that is not a day on which banking institutions in those cities are authorized or required by law or regulation to be closed. 
 The principal of and interest on this Note are payable in immediately available funds in such coin or currency of the United States as at the time of
payment is legal tender for payment of public and private debts, at the office or agency of the Company designated as provided in the Indenture. However, interest may be paid, at the option of the Company, by check mailed to the person entitled
thereto at his address last appearing on the registry books of the Company relating to the Notes. Notwithstanding the preceding sentence, payments of principal of and interest payable on the Maturity Date shall be made by wire transfer of
immediately available funds to a designated account maintained in the United States upon (i) receipt of written notice by the Issuing and Paying Agent (as described on the reverse hereof) from the registered holder hereof not less than one
Business Day prior to the due date of such principal and (ii) presentation of this Note to the Issuing and Paying Agent, at The Bank of New York Mellon Trust Company, N.A., 101 Barclay Street, New York, New York, 10286. Any interest not
punctually paid or duly provided for shall be payable as provided in such Indenture. 
 References herein to “U.S. dollars,”
“U.S.$,” or “$” are to the coin or currency of the United States as at the time of payment is legal tender for the payment of public and private debts. 
 Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall have the same effect as though fully set forth at
this place. 
 Unless the certificate of authentication hereon has been executed by the Trustee (as described on the reverse hereof) or by an
authenticating agent on behalf of the Trustee by manual signature, this Note shall not be entitled to any benefit under such Indenture or be valid or obligatory for any purpose. 
  

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 IN WITNESS WHEREOF, the Company has caused this Note to be duly executed, by manual or facsimile
signature, under its corporate seal or a facsimile thereof. 
  

									
		 		 		 	RAYMOND JAMES FINANCIAL, INC.
					
	[SEAL]	 		 		 	By:	 	  

		 		 		 	Name:	 	
	ATTEST:	 		 		 	 Title:
	 	
		 		 		 		 	
	By:	 	  
	 		 		 	
	Name:	 		 		 		 	
	Title:	 		 		 		 	

  

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 Certificate of Authentication 
 This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 
  

					
	Dated: August 20, 2009	 		 	
		
		 	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee
			
		 	By:	 	  

		 		 	Authorized Signatory

  

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 [Reverse of Note] 
 RAYMOND JAMES FINANCIAL, INC. 
 8.60% SENIOR NOTE DUE 2019 
 SECTION 1. General. This Note is one of a duly authorized series of Securities of the Company unlimited in aggregate principal amount (herein
called the “Notes”) issued and to be issued under an Indenture dated as of August 10, 2009 (herein called the “Indenture”), between the Company and The Bank of New York Mellon Trust Company, N.A., as Trustee (herein called
the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights thereunder of the Company, the
Trustee, and the holders of the Notes, and the terms upon which the Notes are, and are to be, authenticated and delivered. The series of which this Note is a part also is designated as the Company’s 8.60% Senior Notes due 2019 (herein
called the “Series”), initially in the principal amount of $300,000,000. The Trustee initially shall act as Security Registrar, Transfer Agent, Authenticating Agent and Issuing and Paying Agent in connection with the Notes. 
 SECTION 2. No Sinking Fund. This Note is not subject to any sinking fund. 
 SECTION 3. Redemption and Repayment. The Company may, at its option, and subject to the terms and conditions of Article 3 of the Indenture
and Section 2.6 of the First Supplemental Indenture dated as of August 20, 2009 (the “First Supplemental Indenture”), redeem the Notes of this Series, in whole at any time or in part from time to time prior to the Maturity Date,
at a redemption price equal to the greater of (i) 100% of the principal amount of the Notes so redeemed, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon (not including any such
portion of such payments of interest accrued as of the redemption date), discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at a discount rate equal to the Treasury Rate (as defined
below), plus 50 basis points, plus an amount equal to accrued and unpaid interest thereon to the redemption date. Notwithstanding the foregoing, installments of interest on the Notes that are due and payable on Interest Payment Dates falling on or
prior to a redemption date shall be payable on the Interest Payment Date to the holders of the Notes as of the close of business on the relevant record date according to the Notes and the Indenture. 
 Notice of any redemption shall be mailed at least 30 days but not more than 60 days before the redemption date to each holder of the Notes to be
redeemed. Unless the Company defaults in payment of the redemption price, on and after the redemption date, interest shall cease to accrue on the Notes or portions thereof called for redemption. If less than all of the Notes are to be redeemed, the
Notes shall be selected by the Trustee by a method the Trustee deems appropriate. 
 For purposes of the above: 
 “Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agents as having a maturity comparable to the
remaining term of the Notes to be redeemed that would be utilized, at the time of selection in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the
Notes. 
  

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 “Comparable Treasury Price” means, with respect to any redemption date, (1) the average of
four Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest such Reference Dealer Quotations, (2) if more than one but fewer than four such Reference Dealer Quotations is provided, the average of
all such quotations, or (3) if only one Reference Treasury Dealer Quotation is provided, such quotation. 
 “Quotation Agents”
means the Reference Treasury Dealers appointed by the Company. 
 “Reference Treasury Dealers” means (1) J.P. Morgan
Securities Inc. and Citigroup Global Markets Inc. (or their affiliates that are Primary Treasury Dealers) and their respective successors; provided, however, that if any of the foregoing shall cease to be a primary U.S. Government securities dealer
in New York City (a “Primary Treasury Dealer”), the Company shall substitute therefore another Primary Treasury Dealer, and (2) any other Primary Treasury Dealers selected by the Company. 
 “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date the average, as determined
by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m., New York City time, on
the third Business Day preceding such redemption date. 
 “Treasury Rate” means, with respect to any redemption date, the rate per
annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price of such
redemption date. 
 SECTION 4. Defeasance. The provisions of Article 14 of the Indenture do not apply to the Notes of this Series.

 SECTION 5. Payment of Additional Amounts. Subject to the exemptions and limitations set forth below, the Company shall pay
additional amounts to the beneficial owner of this Note that is a “Non-United States person,” as defined below, in order to ensure that every net payment on such Note shall not be less, due to payment of United States withholding tax, than
the amount then otherwise due and payable. For this purpose, a “net payment” on this Note means a payment by the Company or any paying agent, including payment of principal and interest, after deduction for any present or future tax,
assessment, or other governmental charge of the United States (other than a territory or possession). These additional amounts shall constitute additional interest on this Note. 
 The Company shall not be required to pay additional amounts, however, in any of the circumstances described in items (1) through (13) below.

 (1) Additional amounts shall not be payable if a payment on this Note is reduced as a result of any tax, assessment, or other governmental
charge that is imposed or withheld solely by reason of the beneficial owner of this Note: 
  

	 	(a)	having a relationship with the United States as a citizen, resident, or otherwise; 

  

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	 	(b)	having had such a relationship in the past; or 

  

	 	(c)	being considered as having had such a relationship. 

 (2)
Additional amounts shall not be payable if a payment on this Note is reduced as a result of any tax, assessment, or other governmental charge that is imposed or withheld solely by reason of the beneficial owner of this Note: 
  

	 	(a)	being treated as present in or engaged in a trade or business in the United States; 

  

	 	(b)	being treated as having been present in or engaged in a trade or business in the United States in the past; 

  

	 	(c)	having or having had a permanent establishment in the United States; or 

  

	 	(d)	having or having had a qualified business unit which has the U.S. dollar as its functional currency. 

 (3) Additional amounts shall not be payable if a payment on this Note is reduced as a result of any tax, assessment, or other governmental charge that is
imposed or withheld solely by reason of the beneficial owner of this Note being or having been a: 
  

	 	(a)	personal holding company; 

  

	 	(b)	foreign personal holding company; 

  

	 	(c)	private foundation or other tax-exempt organization; 

  

	 	(d)	passive foreign investment company; 

  

	 	(e)	controlled foreign corporation; or 

  

	 	(f)	corporation which has accumulated earnings to avoid United States federal income tax. 

 (4) Additional amounts shall not be payable if a payment on this Note is reduced as a result of any tax, assessment, or other governmental charge that is imposed or withheld solely by reason of the beneficial owner of
this Note owning or having owned, actually or constructively, 10% or more of the total combined voting power of all classes of the Company’s stock entitled to vote; 
 (5) Additional amounts shall not be payable if a payment on this Note is reduced as a result of any tax, assessment, or other governmental charge that is imposed or withheld solely by reason of the beneficial owner of
this Note being a bank extending credit pursuant to a loan agreement entered into in the ordinary course of business. 
  

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 For purposes of items (1) through (5) above, “beneficial owner” includes, without
limitation, the holder, and a fiduciary, settlor, partner, member, shareholder, or beneficiary of the holder if the holder is an estate, trust, partnership, limited liability company, corporation, or other entity, or a person holding a power over an
estate or trust administered by a fiduciary holder. 
 (6) Additional amounts shall not be payable to any beneficial owner of this Note that
is: 
  

	 	(a)	a fiduciary; 

  

	 	(b)	a partnership; 

  

	 	(c)	a limited liability company; 

  

	 	(d)	another fiscally transparent entity; or 

  

	 	(e)	not the sole beneficial owner of this Note, or any portion of this Note. 

 However, this exception to the obligation to pay additional amounts shall only apply to the extent that a beneficiary or settlor in relation to the fiduciary, or a beneficial owner, partner or member of the
partnership, limited liability company, or other fiscally transparent entity, would not have been entitled to the payment of an additional amount had the beneficiary, settlor, partner, beneficial owner, or member received directly its beneficial or
distributive share of the payment. 
 (7) Additional amounts shall not be payable if a payment on this Note is reduced as a result of any
tax, assessment, or other governmental charge that is imposed or withheld solely by reason of the failure of the beneficial owner of this Note or any other person to comply with applicable certification, identification, documentation or other
information reporting requirements. This exception to the obligation to pay additional amounts shall apply only if compliance with such reporting requirements is required as a precondition to exemption from such tax, assessment or other governmental
charge by statute or regulation of the United States or by an applicable income tax treaty to which the United States is a party. 
 (8)
Additional amounts shall not be payable if a payment on this Note is reduced as a result of any tax, assessment, or other governmental charge that is collected or imposed by any method other than by withholding from a payment on this Note by the
Company or any paying agent. 
 (9) Additional amounts shall not be payable if a payment on this Note is reduced as a result of any tax,
assessment, or other governmental charge that is imposed or withheld by reason of a change in law, regulation, or administrative or judicial interpretation that becomes effective more than 15 days after the payment becomes due or is duly provided
for, whichever occurs later. 
 (10) Additional amounts shall not be payable if a payment on this Note is reduced as a result of any tax,
assessment, or other governmental charge that is imposed or withheld by reason of the presentation by the beneficial owner of this Note for payment more than 30 days after the date on which such payment becomes due or is duly provided for, whichever
occurs later. 
  

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 (11) Additional amounts shall not be payable if a payment on this Note is reduced as result of any:

  

	 	(a)	estate tax; 

  

	 	(b)	inheritance tax; 

  

	 	(c)	gift tax; 

  

	 	(d)	sales tax; 

  

	 	(e)	excise tax; 

  

	 	(f)	transfer tax; 

  

	 	(g)	wealth tax; 

  

	 	(h)	personal property tax; or 

  

	 	(i)	any similar tax, assessment, or other governmental charge. 

 (12) Additional amounts shall not be payable if a payment on this Note is reduced as a result of any tax, assessment, or other governmental charge required to be withheld by any paying agent from a payment of principal or interest on this
Note if such payment can be made without such withholding by any other paying agent. 
 (13) Additional amounts shall not be payable if a
payment on this Note is reduced as a result of any combination of items (1) through (12) above. 
 A “United States
person” means: 
  

	 	(a)	any individual who is a citizen or resident of the United States; 

  

	 	(b)	any corporation, partnership, or other entity created or organized in or under the laws of the United States; 

  

	 	(c)	any estate if the income of such estate falls within the federal income tax jurisdiction of the United States regardless of the source of such income; and 

 

	 	(d)	any trust if a U.S. court is able to exercise primary supervision over its administration and one or more United States persons have the authority to control all of the substantial
decisions of the trust. 

  

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 A “Non-United States person” means a person who is not a United States person, and “United
States” means the United States of America, including the States and the District of Columbia, its territories, its possessions, and other areas within its jurisdiction. 
 SECTION 6. Events of Default. If an Event of Default (as defined in the First Supplemental Indenture as (i) an Event of Default as defined
under Section 6.01(a), (b), (c), (d) or (e) of the Indenture, or (ii) an event of default as defined in any mortgage, indenture, or instrument under which there may be issued, or by which there may be secured or evidenced, any
indebtedness of the Company or any Principal Subsidiary (as defined in the Indenture) for money borrowed, whether such indebtedness currently exists or shall be created in the future, which has occurred and has resulted in such indebtedness becoming
or being declared due and payable) shall occur with respect to the Notes, the principal of all the Notes may be declared due and payable in the manner and with the effect provided in the Indenture. 
 SECTION 7. Modifications and Waivers. The Indenture permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Company and the rights of the holders of the Notes under the Indenture at any time by the Company with the consent of the holders of not less than 66 2/3% in aggregate principal amount of the Notes then outstanding and all other
Securities then outstanding under the Indenture and affected by such amendment and modification. The Indenture also contains provisions permitting the holders of a majority in aggregate principal amount of the Notes then outstanding and all other
Securities then outstanding under the Indenture and affected thereby, on behalf of the holders of all such Securities, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the holder of this Note shall be conclusive and binding upon such holder and upon all future holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof whether or not notation of such consent or waiver is made upon this Note. 
 No recourse shall be had for
the payment of the principal of or the interest on this Note, or for any claim based hereon, or otherwise in respect hereof, or based on or in respect of the Indenture or any indenture supplemental thereto, against any incorporator, stockholder,
officer, or director, as such, past, present, or future, of the Company or any predecessor or successor corporation, whether by virtue of any constitution, statute, or rule of law, or by the enforcement of any assessment or penalty or otherwise, all
such liability being, by the acceptance hereof and as part of the consideration for issue hereof, expressly waived and released. 
 SECTION
8. Obligations Unconditional. No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and
interest on this Note at the times, place, and rate, and in the coin or currency, herein prescribed. 
 SECTION 9. Authorized
Denominations. The Notes are issuable only as registered Notes without coupons in the denominations of Two Thousand Dollars ($2,000) and any whole multiples of One Thousand Dollars ($1,000). As provided in the Indenture, and subject to certain
limitations therein set forth, the Notes are exchangeable for a like aggregate principal amount of Notes of different authorized denominations, as requested by the holder surrendering the same. 
  

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 SECTION 10. Registration of Transfer. As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Note may be registered on the Security Register or registry of the Company relating to the Notes, upon surrender of this Note for registration of transfer at the office or agency of the Company
designated by it pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Trustee or the Security Registrar duly executed by, the registered holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Notes, of authorized denominations and for the same aggregate principal amount, shall be issued to the designated transferee or transferees. 
 The Notes are being issued by means of a book-entry system with no physical distribution of certificates to be made except as provided in the Indenture.
The book-entry system maintained by DTC shall evidence ownership of the Notes, with transfers of ownership effected on the records of DTC and its participants pursuant to rules and procedures established by DTC and its participants. The Company
shall recognize Cede & Co., as nominee of DTC, while the registered holder of the Notes, as the owner of the Notes for all purposes, including payment of principal, premium (if any) and interest, notices, and voting. Transfer of the
principal, premium (if any), and interest to beneficial owners of the Notes by participants of DTC shall be the responsibility of such participants and other nominees of such beneficial owners. So long as the book-entry system is in effect, the
selection of any Notes to be redeemed shall be determined by DTC pursuant to rules and procedures established by DTC and its participants. The Company shall not be responsible or liable for such transfers or payments or for maintaining, supervising,
or reviewing the records maintained by DTC, its participants, or persons acting through such participants. 
 No service charge shall be made
for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax, assessment, or other governmental charge, including, without limitation, any withholding tax, payable in connection
therewith. 
 Prior to due presentment for registration of transfer of this Note, the Company, the Trustee, the Issuing and Paying Agent, and
any agent of the Company may treat the person in whose name this Note is registered as the absolute owner hereof for the purpose of receiving payment as herein provided and for all other purposes, whether or not this Note be overdue, and neither the
Company, the Trustee, the Issuing and Paying Agent, nor any such agent of the Company shall be affected by notice to the contrary. 
 SECTION
11. Authentication Date. The Notes of this Series shall be dated the date of their authentication. 
 SECTION 12. Defined
Terms. All terms used in this Note which are not defined herein, but are defined in the Indenture shall have the meanings assigned to them in the Indenture. 
  

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 SECTION 13. Governing Law. THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAWS. 
  

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 ABBREVIATIONS 
 The following abbreviations, when used in the inscription on the face of the within Note shall be construed as though they were written out in full according to applicable laws or regulations: 
  

					
	TEN COM—	 	as tenants in common
	TEN ENT—	 	as tenants by the entireties
	JT TEN—	 	as joint tenants with right of survivorship and not as tenants in common
	 UNIF GIFT MIN ACT—
	 	                                 as Custodian for
                                    .
		 	            (Cust)                           
                         (Minor)	  	

  

	
	Under Uniform Gifts to Minors Act
	
	
                                         
                                         
      
	(State)
	
	Additional abbreviations may also be used though not in the above list.
	
	                                       
                                         
         
	
	ASSIGNMENT

 FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto 
 [PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS 
 INCLUDING ZIP CODE, OF ASSIGNEE] 
  
  
  
  
  
  
 Please Insert Social Security or Other 
 Identifying Number of Assignee:
                                     
 the within Note and all rights thereunder, hereby irrevocably constituting and appointing
                                     Attorney to transfer said
Note on the books of the Company, with full power of substitution in the premises. 
  

					
	Dated:
                                         
                   	  		  	
                                         
                   

 NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of the within
Note in every particular, without alteration or enlargement or any change whatever and must be guaranteed.Exchange Agreement

 Exhibit 10.1 
 EXCHANGE AGREEMENT 
 EXCHANGE AGREEMENT, dated as of August 18, 2009 (this
“Agreement”), between X-Rite, Incorporated, a Michigan corporation (the “Company”), OEPX, LLC, a Delaware limited liability company (“OEP”), Sagard Capital Partners, L.P., a Delaware limited
partnership, (“Sagard”), and Tinicum Capital Partners II, L.P., a Delaware limited partnership, Tinicum Capital Partners II Parallel Fund, L.P., a Delaware limited partnership, and Tinicum Capital Partners II Executive Fund, L.L.C.,
a Delaware limited liability company (collectively, “Tinicum” and, together with OEP and Sagard and any of their permitted assignees, the “Investors”). 
 RECITALS: 
 A. Company Securities. As of the date hereof, the Company has
100,000,000 authorized shares of common stock, par value $0.10 per share (“Common Stock”), of which, as of August 13, 2009, 77,699,550 shares were issued and outstanding and 5,000,000 authorized shares of preferred stock, par
value $0.10 per share (“Company Preferred Stock”), of which, as of August 13, 2009, no shares were issued and outstanding and 776,995.5 shares of Preferred Stock have been designated as Junior Participating Company Preferred
Stock, without par value, reserved or to be made available for issuance upon the exercise of rights granted under the Shareholder Protection Rights Agreement, dated as of March 29, 2002, as amended August 20, 2008 and August 18, 2009
(the “Rights Plan”) between the Company and Computershare Trust Company, N.A. (formerly known as EquiServe Trust Company, N.A.). 
 B. The First Lien Credit Agreement. The Company is a party to that certain First Lien Credit and Guaranty Agreement, dated October 24, 2007, by and among the Company and the other parties thereto (the “First Lien Credit
Agreement”), which as of the date hereof has outstanding $168,891,877 of unpaid principal and $1,615,411 of unpaid interest. The Company has entered into the Consent and Amendment No. 2 to First Lien Credit and Guaranty Agreement and
Amendment No. 1 to Pledge and Security Agreement (First Lien) (the “First Lien Amendment”) substantially in the form set forth in Exhibit A. 
 C. The Second Lien Credit Agreement. The Company is a party to that certain Second Lien Credit and Guaranty Agreement, dated October 24, 2007, by and among the Company and the other parties thereto (the
“Second Lien Credit Agreement”), which as of the date hereof has outstanding $67,762,864 of unpaid principal and $1,147,590 of unpaid interest. The Company has entered into the Consent, Limited Waiver and Amendment No. 2 to
Second Lien Credit and Guaranty Agreement and Amendment No. 1 to Pledge and Security Agreement (Second Lien) (the “Second Lien Amendment”) substantially in the form set forth in Exhibit B. Certain parties
under the Second Lien Credit Agreement have assigned $41,561,223.12 outstanding principal amount of the loans (the “Canceled Loans”) under the Second Lien Credit Agreement to the Investors pursuant to an Assignment and Assumption
Agreement (the “Assignment and Assumption Agreements”) with each Investor in the form set forth as Exhibit C. 
 D.
The Exchange. The Company intends to deliver to each respective Investor, and each respective Investor intends to acquire, severally and not jointly, from the Company, such number of shares of Series A Cumulative Preferred Stock, par value
$0.10 per share (the “Series A Preferred Stock”) as set forth opposite such Investor’s name under the heading “Number of Shares of Series A Preferred Stock” on Annex A and warrants substantially in the form
attached hereto as Exhibit D (collectively, with respect to all Investors, the “Warrants”) to acquire such number of shares of Common Stock as set forth opposite such Investor’s name under the heading “Number of
Shares of Common Stock Exercisable 

 
Pursuant to Warrants” on Annex A (collectively, with respect to all Investors, the “Warrant Shares”) in consideration for the
cancellation by the Investors, severally and not jointly, of such amount of Canceled Loans as set forth opposite such Investor’s name under the heading “Amount of Canceled Loans” on Annex A. The Series A Preferred Stock shall
be evidenced by a share certificate incorporating the terms set forth in a Certificate of Designation, Preferences and Rights of Series A Preferred Stock of the Company (the “Certificate of Designation”) in the form attached as
Exhibit E. The Series A Preferred Stock and Warrants to be acquired by the Investors, severally and not jointly, pursuant to this Agreement are collectively called the “Exchanged Securities”. 
 E. Certificate of Designation; Redemption Shares. The Certificate of Designation also provides for the delivery, in certain instances, of shares
of Common Stock upon redemption or repurchase of the Series A Preferred Stock (the “Redemption Shares”). 
 F. Other
Agreements. The Company and OEP also intend to enter into an Amendment No. 1 to the Investment Agreement, dated August 20, 2008, between the Company and OEPX, LLC (the “OEP Investment Agreement Amendment”) in the form
attached hereto as Exhibit F and the Company, Sagard and Tinicum also intend to enter into an Amendment No. 1 to the Investment Agreement, dated August 20, 2009, between the Company, Sagard Capital Partners, L.P., Tinicum Capital
Partners II, L.P., Tinicum Capital Partners II Parallel Fund, L.P. and Tinicum Capital Partners II Executive Fund, L.L.C. (the “Other Investors’ Investment Agreement Amendment”, and together with the OEP Investment Agreement
Amendment, “Investment Agreement Amendments”) in the form attached hereto as Exhibit G, to, among other things, under certain circumstances described therein, permit the Investors to purchase their pro rata portion of shares
of Common Stock following a redemption of the Series A Preferred Stock entirely in cash as set forth in the Investment Agreement Amendments (the “Redemption Purchase Shares”, and together with the Warrant Shares and Redemption
Shares, the “Investor Shares”). For purposes of this Agreement, the term “Transaction Documents” refers collectively to the Certificate of Designation, the Investment Agreement Amendments, the Warrants and the
Registration Rights Agreement Amendment (as hereinafter defined), in each case as amended, modified or supplemented from time to time in accordance with their respective terms. 
 NOW, THEREFORE, in consideration of the premises, and of the representations, warranties, covenants and agreements set forth herein, the parties
agree as follows: 
 ARTICLE I 
 EXCHANGE; CLOSINGS 
 1.1 Exchange. On the terms and subject to the conditions set forth herein, at the Closing (as
hereinafter defined), each Investor, severally and not jointly, will acquire from the Company, and the Company will issue to each such Investor, (i) such number of shares of Series A Preferred Stock as set forth opposite such Investor’s
name under the heading “Number of Shares of Series A Preferred Stock” on Annex A and (ii) a Warrant to acquire such number of shares of Common Stock as set forth opposite such Investor’s name under the heading “Number
of Shares of Common Stock Exercisable Pursuant to Warrants” on Annex A in consideration for the cancellation by such Investor, severally and not jointly, of such amount of Canceled Loans as set forth opposite such Investor’s name
under the heading “Amount of Canceled Loans” on Annex A. 
 1.2 Closing. 
 (a) Subject to the satisfaction or waiver of the conditions set forth in this Agreement, the closing of the delivery of the Exchanged Securities by the
Company to the Investors in consideration for cancellation by the Investors, severally and not jointly, of their respective portion of the Canceled 

  

 2 

 
Loans pursuant hereto (the “Closing”) shall occur at the offices of Simpson Thacher & Bartlett LLP located at 425 Lexington
Avenue, New York, New York, as soon as practicable, but in no event later than the second business day after the satisfaction or waiver of the conditions set forth herein (excluding conditions that, by their terms, cannot be satisfied until the
Closing) or on such other date or at such other place as may otherwise be agreed by the Company and each of the Investors. The date of the Closing is referred to as the “Closing Date.” 
 (b) Subject to the satisfaction or waiver on the Closing Date of the applicable conditions to Closing in Section 1.2(c), at the Closing
(i) each Investor, severally and not jointly, hereby agrees that such amount of Canceled Loans as set forth opposite such Investor’s name under the heading “Amount of Canceled Loans” on Annex A is cancelled and is deemed
to no longer be outstanding and (ii) the Company will deliver to each such Investor: 
 (A) certificates representing
such number of shares of Series A Preferred Stock as set forth opposite such Investor’s name under the heading “Number of Shares of Series A Preferred Stock” on Annex A; and 
 (B) a Warrant to acquire such number of Warrant Shares as set forth opposite such Investor’s name under the heading “Number of
Shares of Common Stock Exercisable Pursuant to Warrants” on Annex A. 
 (c) Closing Conditions. (i) The respective
obligations of each of the Investors, on the one hand, and the Company, on the other hand, to consummate the Closing are subject to the fulfillment or written waiver by each of the Investors and the Company prior to the Closing of the following
conditions: 
 (A) no provision of any applicable law or regulation and no judgment, injunction, order or decree shall
prohibit the Closing and no lawsuit shall have been commenced by a Governmental Entity seeking to effect any of the foregoing; and 
 (B) any required approvals or authorizations of or notices to (or expiration or termination of any applicable waiting periods of) Governmental Entities shall have been received or made (or have occurred) as applicable. 
 (ii) The obligation of each Investor to consummate the Closing is also subject to the fulfillment or written waiver by the applicable
Investor at or prior to the Closing of each of the following conditions: 
 (A) (x) the representations and warranties
of the Company set forth in this Agreement (excluding the representations and warranties of the Company set forth in Sections 2.2(b), 2.2(g) and 2.2(k)) shall be true and correct (without regard to “materiality” or “Material
Adverse Effect” qualifications included therein) as of the date of this Agreement and as of the Closing Date as though made on and as of the Closing Date (other than representations and warranties that by their terms speak as of another date,
which representations and warranties shall be true and correct as of such other date), except to the extent that the failure of such representations and warranties to be so true and correct, individually or in the aggregate, does not have and would
not be reasonably likely to have a Material Adverse Effect and (y) the representations and warranties of the Company set forth in Sections 2.2(b), 2.2(g) and 2.2(k) shall be 

  

 3 

 
true and correct in all material respects as of the date of this Agreement and as of the Closing Date as though made on and as of the Closing Date (other
than representations and warranties that by their terms speak as of another date, which representations and warranties shall be true and correct in all material respects as of such other date); 
 (B) the Company shall have performed in all material respects all obligations required to be performed by it under this Agreement at or
prior to the Closing Date; 
 (C) the Company shall have duly executed and delivered to OEP the OEP Investment Agreement
Amendment and to Sagard and Tinicum the Other Investors’ Investment Agreement Amendment; 
 (D) the Company shall have
duly executed and delivered to the Investor the Amendment to the Registration Rights Agreement in the form attached hereto as Exhibit H (the “Registration Rights Agreement Amendment”); 
 (E) the Administrative Committee of the board of directors of the Company (the “Board of Directors”) shall have been
established and members thereof elected in accordance with the Certificate of Designation; 
 (F) Warner Norcross &
Judd LLP, as counsel to the Company, shall have delivered to the Investors an opinion, dated as of the Closing Date, in the form attached hereto as Exhibit I; and 
 (G) the Company shall have taken all such steps as may be required to cause any dispositions of Series A Preferred Stock and/or Common
Stock (including derivative securities with respect thereto) or acquisitions of Series A Preferred Stock and Common Stock resulting from the transactions contemplated hereby by each individual who is subject to the reporting requirements of
Section 16(a) of the Exchange Act with respect to the Company, to be exempt under Rule 16b-3 promulgated under the Exchange Act (such steps as taken in accordance with the interpretive guidance set forth by the SEC (as hereinafter defined)).

 (iii) The obligation of the Company to consummate the Closing is also subject to the fulfillment or written waiver by the
Company at or prior to the Closing of each of the following conditions: 
 (A) (x) the representations and warranties of
each Investor set forth in this Agreement (excluding the representations and warranties of such Investor set forth in Section 2.3(d) and 2.3(e)) shall be true and correct (without regard to “materiality” or “Material Adverse
Effect” qualifications included therein) as of the date of this Agreement and as of the Closing Date as though made on and as of the Closing Date (other than representations and warranties that by their terms speak as of another date, which
representations and warranties shall be true and correct as of such other date), except to the extent that the failure of such representations and warranties to be so true and correct would not reasonably be expected to materially adversely affect
such Investor’s ability to perform its obligations under this Agreement or consummate the transactions contemplated 

  

 4 

 
hereby on a timely basis, and (y) the representations and warranties of each Investor set forth in Section 2.3(d) and 2.3(e) shall be true and
correct in all material respects as of the date of this Agreement and as of the Closing Date as though made on and as of the Closing Date (other than representations and warranties that by their terms speak as of another date, which representations
and warranties shall be true and correct in all material respects as of such other date); 
 (B) each Investor shall have
performed in all material respects all obligations required to be performed by it under this Agreement at or prior to the Closing; 
 (C) OEP shall have duly executed and delivered to the Company the OEP Investment Agreement Amendment and Sagard and Tinicum shall have executed and delivered to the Company the Other Investors’ Investment Agreement Amendment; and

 (D) the Investors shall have duly executed and delivered to the Company the Registration Rights Agreement Amendment.

 ARTICLE II 
 REPRESENTATIONS AND WARRANTIES 
 2.1 Disclosure. (a) On or prior to the date hereof, the Company delivered to the
Investors, and the Investors delivered to the Company, a schedule (“Disclosure Schedule”) setting forth, among other things, items the disclosure of which is necessary or appropriate either in response to an express disclosure
requirement contained in a provision hereof or as an exception to one or more representations or warranties contained in Section 2.2 with respect to the Company, or in Section 2.3 with respect to the Investors, or to one or more of its
covenants contained in Article III. 
 (b) As used in this Agreement, the term “Material Adverse Effect” means any
circumstances, events, changes, developments or effects that, individually or in the aggregate, (1) are material and adverse to the business, assets, results of operations or financial condition of the Company and Company Subsidiaries taken as
a whole or (2) would materially impair the ability of the Company to perform its obligations under this Agreement or to consummate the Closing; provided, however, that in determining whether a Material Adverse Effect has occurred,
there shall be excluded any effect to the extent resulting from the following: (A) changes, after the date hereof, in generally accepted accounting principles or regulatory accounting principles generally applicable to the industries in which
the Company or its Subsidiaries operate, (B) changes, after the date hereof, in laws, rules and regulations of general applicability or interpretations thereof by Governmental Entities, (C) actions of the Company expressly required by the
terms of this Agreement or taken with the prior written consent of the Investors, (D) changes in general economic, financial market or global or national political conditions, including the outbreak or escalation of war or acts of terrorism,
(E) events, circumstances, changes or effects that generally affect the graphic arts and printing systems industry (including legal or regulatory changes), (F) changes arising from the consummation of the transactions contemplated by, or
the announcement of the execution of, this Agreement (provided that the exception in this clause (F) shall not apply to that portion of any representation or warranty to the extent the purpose of such representation or warranty is to
specifically address the consequences resulting from the execution of this Agreement or consummation of the transactions contemplated by this Agreement) and (G) any failure to meet internal or published projections, forecasts, performance
measures, operating statistics or revenue or earnings predictions for any period, in and of itself, or a decline in the price or trading volume of the Common Stock, in and of itself (it being understood that the facts or occurrences giving rise or
contributing to such failure that are 

  

 5 

 
not otherwise excluded from the definition of “Material Adverse Effect” may be taken into account in determining whether there has been a Material
Adverse Effect); except with respect to clauses (A), (B), (D) and (E) to the extent that such changes, events, circumstances, or effect have a disproportionate effect on the Company and the Company Subsidiaries, taken as a whole,
relative to other companies operating in the graphic arts and printing systems industry. 
 (c) “Previously Disclosed” with
regard to (1) a party means information set forth on its Disclosure Schedule, provided, however, that disclosure in any section of such Disclosure Schedule shall apply only to the indicated section of this Agreement except to the
extent that it is reasonably apparent from the face of such disclosure that such disclosure is relevant to another section of this Agreement, and (2) the Company means information publicly disclosed by the Company in (A) its Annual Report
on Form 10-K for the fiscal year ended January 3, 2009 (the “Company 10-K), as filed by it with the Securities and Exchange Commission (“SEC”) on March 19, 2009, (B) its Quarterly Reports on
Form 10-Q for the fiscal quarter ended April 4, 2009, as filed with the SEC on May 14, 2009 and the fiscal quarter ended July 4, 2009, as filed with the SEC on August 13, 2009, (C) its Definitive Proxy Statement on
Schedule 14A, as filed by it with the SEC on May 20, 2009 or (D) any Current Report on Form 8-K filed or furnished by it with the SEC since March 19, 2009, and publicly available prior to the date of this Agreement
(excluding any risk factor disclosures contained in such documents under the heading “Risk Factors” and any disclosure of risks included in any “forward-looking statements” disclaimer or other statements that are similarly
non-specific and are predictive or forward-looking in nature). 
 2.2 Representations and Warranties of the Company. Except as
Previously Disclosed, the Company represents and warrants to the Investors that: 
 (a) Organization and Authority. The Company is a
corporation duly organized and validly existing under the laws of the State of Michigan, is duly qualified to do business and is in good standing in all jurisdictions where its ownership or leasing of property or the conduct of its business requires
it to be so qualified and where failure to be so qualified would have a Material Adverse Effect, and has the corporate power and authority to own its properties and assets and to carry on its business as it is now being conducted. The Company has
furnished to each Investor true, correct and complete copies of the Company’s restated articles of incorporation and amended and restated bylaws as in effect on the date of this Agreement. Each Company Subsidiary is duly organized and validly
existing under the laws of its jurisdiction of organization, is duly qualified to do business and is in good standing in all jurisdictions where its ownership or leasing of property or the conduct of its business requires it to be so qualified and
where failure to be so qualified would have a Material Adverse Effect, and has the corporate power and authority and governmental authorizations to own its properties and assets and to carry on its business as it is being conducted. As used herein,
“Subsidiary” means, with respect to any person, any corporation, partnership, joint venture, limited liability company or other entity (x) of which such person or a subsidiary of such person is a general partner or (y) of
which a majority of the voting securities or other voting interests, or a majority of the securities or other interests of which having by their terms ordinary voting power to elect a majority of the board of directors or persons performing similar
functions with respect to such entity, is directly or indirectly owned by such person and/or one or more subsidiaries thereof; “Company Subsidiary” means any Subsidiary of the Company. 
 (b) Capitalization. (i) The authorized capital stock of the Company consists of 100,000,000 shares of Common Stock and 5,000,000 shares of
Company Preferred Stock, of which 776,995.5 have been designated as Junior Participating Preferred Stock and 84,729.26362 shares have been designated as Series A Preferred Stock. As of the close of business on August 13, 2009 (the
“Capitalization Date”), there were 77,699,550 shares of Common Stock outstanding and no shares of Company Preferred Stock outstanding. Since the Capitalization Date, the Company has not issued any 

  

 6 

 
shares of Company Preferred Stock, or any shares of Common Stock except pursuant to the valid exercise or conversion of the securities set forth in
Section 2.2(b) of the Disclosure Schedule. As of the close of business on the Capitalization Date and immediately prior to the Closing, no shares of Common Stock or Company Preferred Stock were reserved or to be made available for issuance,
except for (1) (A) 5,910,128 shares of Common Stock reserved for issuance upon the exercise of options outstanding as of the Capitalization Date, (B) 519,000 shares of Common Stock reserved for future issuance upon the vesting of
restricted stock unit awards granted under the Company’s 2008 Omnibus Long Term Incentive Plan as of the Capitalization Date and (C) 2,639,609 shares of Common Stock reserved for future issuance under the Company’s 2008 Omnibus Long
Term Incentive Plan and 2004 Amended and Restated Employee Stock Purchase Plan, and (2) 776,995.5 shares of Company Preferred Stock designated as Junior Participating Preferred Stock, without par value, reserved or to be made available for
issuance upon the exercise of rights granted under the Rights Plan. All of the issued and outstanding shares of Common Stock have been duly authorized and validly issued and are fully paid, nonassessable and free of preemptive rights of any
shareholder of the Company other than the Investors. No bonds, debentures, notes or other indebtedness which, by their terms, have the right to vote on any matters on which the shareholders of the Company may vote (“Voting Debt”)
are issued and outstanding. 
 (ii) Set forth in Section 2.2(b)(ii) of the Disclosure Schedule is a true and complete
list of all Indebtedness of the Company and its Subsidiaries as of the date of this Agreement with an outstanding principal amount in excess of $1,000,000 individually, including for each such item of Indebtedness, the outstanding principal amount,
interest rate as in effect between the date of this Agreement and the maturity date thereof, and the schedule of the principal payments, and any Liens that relate to such Indebtedness. For the purposes of this Agreement,
“Indebtedness“ shall mean, with respect to any person, (a) all liabilities of such person for borrowed money, whether contingent, current or funded, secured or unsecured, (b) all liabilities of such person for the deferred
purchase price of property or services, (c) all liabilities of such person evidenced by notes, bonds, debentures or other similar instruments, (d) all indebtedness created or arising under any conditional sale or other title retention
agreement with respect to property acquired by such person (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property), (e) all liabilities of
such person as lessee under leases that have been or are required to be, in accordance with GAAP as of the date hereof, recorded as capital leases, (f) all obligations, contingent or otherwise, of such person under bankers’ acceptance,
letter of credit or similar facilities, (g) any other amounts required to be considered as indebtedness for purposes of GAAP as of the date hereof, (h) all Indebtedness of others referred to in clauses (a) through (g) above
guaranteed in any manner by such person, and (i) all Indebtedness referred to in clauses (a) through (g) above secured by any Lien on property (including accounts and contract rights) owned by such person, even though such person has
not assumed or become liable for the payment of such Indebtedness; provided, that clauses (a) through (i) shall include all accrued interest, premiums and penalties upon prepayment of such outstanding Indebtedness; provided,
further, that for the avoidance of doubt, (x) ordinary course accounts payable and (y) and indebtedness between the Company and any of its wholly-owned Subsidiaries or between wholly-owned Subsidiaries of the Company shall not be
considered Indebtedness. 
 (iii) As of the date of this Agreement, except as set forth in Section 2.2(b) of the
Disclosure Schedule (which Section also sets forth the strike or exercise prices, and other term or expiration date, of the relevant securities), the Company does not have and is not bound by any outstanding subscriptions, options, warrants,
calls, commitments or agreements of any character calling for the purchase or issuance of, or securities or rights convertible into or exchangeable for, any shares of Common Stock or Company Preferred Stock or any other Equity Securities of the
Company or any securities representing the right to purchase or otherwise receive any shares of capital stock of the Company (including any rights plan or agreement). 
  

 7 

 (c) Company’s Subsidiaries. The Company owns, directly or indirectly, all of the issued and
outstanding shares of capital stock of or all other equity interests in each of the Company Subsidiaries, free and clear of any liens, charges, encumbrances, adverse rights or claims and security interests whatsoever (“Liens”), and
all of such shares or equity interests are duly authorized and validly issued and are fully paid, nonassessable and free of preemptive rights, with no personal liability attaching to the ownership thereof. No Company Subsidiary has or is bound by
any outstanding subscriptions, options, warrants, calls, commitments or agreements of any character calling for the purchase or issuance of any shares of capital stock, any other equity security or any Voting Debt of such Company Subsidiary or any
securities representing the right to purchase or otherwise receive any shares of capital stock, any other equity security or Voting Debt of such Company Subsidiary. 
 (d) Authorization; No Conflicts. 
 (i) The Company has the corporate power and
authority to enter into this Agreement and the Transaction Documents and to carry out its obligations hereunder and thereunder. The execution, delivery and performance by the Company of this Agreement and the Transaction Documents and the
consummation by the Company of the transactions contemplated hereby and thereby have been duly approved and authorized by the Board of Directors. This Agreement and the Transaction Documents have been duly and validly executed and delivered by the
Company and, assuming due authorization, execution and delivery by each Investor and the other parties thereto, this Agreement and the Transaction Documents are valid and binding obligations of the Company enforceable against the Company in
accordance with their terms, subject to the effect of any applicable bankruptcy, insolvency (including all laws relating to fraudulent transfers), reorganization, moratorium or similar laws affecting creditors’ rights generally and subject to
the effect of general principles of equity (regardless of whether considered in a proceeding at law or in equity). No other corporate proceedings are necessary for the execution and delivery by the Company of this Agreement or the Transaction
Documents, the performance by it of its obligations hereunder and thereunder or the consummation by it of the transactions contemplated hereby and thereby, subject, in the case of issuance of the Warrant Shares, to approval of the proposal to
approve the issuance of the Warrant Shares for purposes of the NASDAQ Marketplace Rules (the “Shareholder Proposal”) by the Company Requisite Vote. Other than as set forth in Section 2.2(d)(i) of the Disclosure Schedule (the
“Company Requisite Vote”), no vote of the shareholders or the Company is required to approve the Agreement, the Transaction Documents or the transactions contemplated hereby or thereby. 
 (ii) Neither the execution and delivery by the Company of this Agreement or the Transaction Documents, nor the consummation of the
transactions contemplated hereby and thereby, nor compliance by the Company with any of the provisions hereof and thereof will (A) violate, conflict with, or result in a breach of any provision of, or constitute a default (or an event which,
with notice or lapse of time or both, would constitute a default) under, or result in the termination of, or accelerate the performance required by, or result in a right of termination or acceleration of, or result in the creation of any lien,
security interest, charge or encumbrance upon any of the material properties or assets of the Company or any Company Subsidiary under any of the terms, conditions or provisions of (i) its restated articles of incorporation (as amended), amended
and restated bylaws or certificates of designation or the articles of incorporation, charter, bylaws, certificates of designation or other governing instrument of any Company Subsidiary or (ii) any note, bond, mortgage, indenture, deed of
trust, license, lease, agreement or other instrument or obligation to which the Company or any Company Subsidiary is a party or by 

  

 8 

 
which it may be bound, or to which the Company or any Company Subsidiary or any of the properties or assets of the Company or any Company Subsidiary may be
subject, or (B) violate any law, statute, ordinance, rule, regulation, permit, concession, grant, franchise or any judgment, ruling, order, writ, injunction or decree applicable to the Company or any Company Subsidiary or any of their
respective properties or assets, except in the case of clause (A)(ii) and (B), as would not have a Material Adverse Effect. 
 (e)
Governmental Consents. Other than as set forth in Section 2.2(e) of the Disclosure Schedule, and the securities or blue sky laws of the various states, no notice to, registration, declaration or filing with, exemption or review by, or
authorization, order, consent or approval of, any Governmental Entity, nor expiration or termination of any statutory waiting periods, is necessary for the consummation by the Company of the transactions contemplated by the Transaction Documents or
the performance of the Company’s obligations thereunder. As used herein, “Governmental Entity” means any court, administrative agency or commission or other governmental authority or instrumentality, whether federal, state,
local or foreign, and any applicable industry self-regulatory organization. 
 (f) Offering of Securities. Neither the Company nor any
person acting at its direction has taken any action (including any offering of any securities of the Company under circumstances which would require the integration of such offering with the offering of any of the Exchanged Securities or Warrant
Shares or Redemption Shares to be issued (or may be issued) pursuant to this Agreement under the Securities Act and the rules and regulations of the SEC thereunder) which would subject the offering, issuance, exchange or sale of any of the Exchanged
Securities or Warrant Shares or Redemption Shares to the Investors pursuant to this Agreement to the registration requirements of the Securities Act. 
 (g) Status of Securities. The Exchanged Securities have been duly authorized by all necessary corporate action. When issued and exchanged against receipt of the consideration therefor as provided in this
Agreement, such Exchanged Securities will be validly issued, fully paid and nonassessable, free and clear of all Liens (other than Liens imposed as a result of actions taken by an Investor or its Affiliates) and will not be subject to preemptive
rights of any shareholder of the Company other than the Investors. The Warrant Shares will be (upon receipt of the Company Requisite Vote) duly authorized by all necessary corporate action and when so issued upon such exercise be validly issued,
fully paid and nonassessable, will not subject the holders thereof to personal liability and will not be subject to preemptive rights of any shareholder of the Company other than the Investors. The Redemption Shares have been duly authorized by all
necessary corporate action and when so issued in accordance with the Certificate of Designation, will be validly issued, fully paid and nonassessable, will not subject the holders thereof to personal liability and will not be subject to preemptive
rights of any shareholder of the Company other than the Investors. 
 (h) Anti-takeover Provisions Not Applicable. Assuming the
accuracy of the representations and warranties of the Investors, no “moratorium,” “control share,” “fair price,” “takeover,” “business combination” or “interested shareholder” or other
similar anti-takeover statute or regulation (including any provision of the Company’s restated articles of incorporation, as amended, or amended and restated bylaws) is applicable to the transactions contemplated by (and the Company and
its Board of Directors have taken all necessary action, if any, in order to render any such statute, regulation or provision inapplicable to the Investor) this Agreement or the Transaction Documents. 
 (i) Rights Plan. The Company has taken all actions necessary to amend the Rights Plan in the form attached hereto as Exhibit J, so as
to render it inapplicable to this Agreement and the Transaction Documents and the transactions contemplated hereby and thereby. 
  

 9 

 (j) Brokers and Finders. Except as set forth in Section 2.2(j) of the Disclosure Schedule,
neither the Company nor any Company Subsidiary nor any of their respective officers or directors has employed any broker or finder or incurred any liability for any financial advisory fees, brokerage fees, commissions or finder’s fees, and no
broker or finder has acted directly or indirectly for the Company or any Company Subsidiary, in connection with this Agreement or the transactions contemplated hereby. 
 (k) Acknowledgment Regarding Investor’s Acquisition of Exchanged Securities. The Company acknowledges and agrees that each Investor is acting solely in the capacity of arm’s length purchaser with
respect to this Agreement and the Transaction Documents and the transactions contemplated hereby and thereby. The Company further acknowledges that each Investor is not acting as a financial advisor or fiduciary of the Company or any Company
Subsidiary (or in any similar capacity) with respect to this Agreement or the Transaction Documents and the transactions contemplated hereby and thereby, and any advice given by any such Investor or any of its investment bankers, attorneys,
accountants, agents and other representatives (“Representatives“) in connection with this Agreement and/or Transaction Documents and the transactions contemplated hereby and thereby is merely incidental to such Investor’s
acquisition of Exchanged Securities. The Company further represents to each Investor that the Company’s decision to enter into this Agreement and the Transaction Documents has been based solely on the independent evaluation by the Company and
its Representatives. 
 2.3 Representations and Warranties of the Investor. Except as Previously Disclosed, each Investor hereby
represents and warrants to the Company, as of the date of this Agreement and as of the Closing Date, that: 
 (a) Organization and
Authority. Such Investor is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, is duly qualified to do business and is in good standing in all jurisdictions where its ownership or
leasing of property or the conduct of its business requires it to be so qualified and where failure to be so qualified would be reasonably expected to materially adversely affect Investor’s ability to perform its obligations under this
Agreement or consummate the transactions contemplated hereby on a timely basis, and Investor has the corporate or other power and authority and governmental authorizations to own its properties and assets and to carry on its business as it is now
being conducted. 
 (b) Authorization; No Conflicts. 
 (i) Such Investor has the corporate or other power and authority to enter into this Agreement and the Transaction Documents and to carry
out its obligations hereunder and thereunder. The execution, delivery and performance of the Agreement and the Transaction Documents by such Investor and the consummation of the transactions contemplated hereby and thereby have been duly authorized
by such Investor’s board of directors, general partner or managing members, as the case may be, and no further approval or authorization by any of its shareholders, partners or other equity owners, as the case may be, is required. This
Agreement and the Transaction Documents to which it is a party have been duly and validly executed and delivered by such Investor and, assuming due authorization, execution and delivery by the Company, this Agreement and the Transaction Documents to
which it is a party are a valid and binding obligation of such Investor enforceable against such Investor in accordance with their terms, subject to the effect of any applicable bankruptcy, insolvency (including all laws relating to fraudulent
transfers), reorganization, moratorium or similar laws affecting creditors’ rights generally and subject to the effect of general principles of equity (regardless of whether considered in a proceeding at law or in equity). No other corporate
proceedings are necessary for the execution and delivery by such Investor of this Agreement or the Transaction Documents to which it is a party, the performance by it of its obligations hereunder and thereunder or the consummation by it of the
transactions contemplated hereby and thereby. 
  

 10 

 (ii) Neither the execution, delivery and performance by such Investor of this Agreement
or the Transaction Documents to which it is a party, nor the consummation of the transactions contemplated hereby and thereby, nor compliance by such Investor with any of the provisions hereof or thereof, will (A) violate, conflict with, or
result in a breach of any provision of, or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under, or result in the termination of, or accelerate the performance required by, or result in a
right of termination or acceleration of, or result in the creation of any lien, security interest, charge or encumbrance upon any of the properties or assets of such Investor under any of the terms, conditions or provisions of (i) its articles
of incorporation or bylaws, its certificate of limited partnership or partnership agreement, its limited liability company agreement or its similar governing documents or (ii) any note, bond, mortgage, indenture, deed of trust, license, lease,
agreement or other instrument or obligation to which such Investor is a party or by which it may be bound, or to which such Investor or any of the properties or assets of such Investor may be subject, or (B) subject to compliance with the
statutes and regulations referred to in the next paragraph, violate any law, statute, ordinance, rule or regulation, permit, concession, grant, franchise or any judgment, ruling, order, writ, injunction or decree applicable to such Investor or any
of its properties or assets except in the case of clauses (A)(ii) and (B) for such violations, conflicts and breaches as would not reasonably be expected to materially adversely affect such Investor’s ability to perform its
obligations under this Agreement or consummate the transactions contemplated hereby on a timely basis. 
 (iii) Other than as
set forth in Section 2.2(e) of the Disclosure Schedule of the Company, and the securities or blue sky laws of the various states, no notice to, registration, declaration or filing with, exemption or review by, or authorization, order, consent
or approval of, any Governmental Entity, nor expiration or termination of any statutory waiting period, is necessary for the consummation by such Investor of the transactions contemplated by this Agreement. 
 (c) Exchange for Investment. Such Investor acknowledges that the Exchanged Securities and Redemption Shares have not been registered under the
Securities Act or under any state securities laws. Such Investor (1) is acquiring the Exchanged Securities and Redemption Shares (if applicable) pursuant to an exemption from registration under the Securities Act solely for investment with no
present intention to distribute any of the Exchanged Securities to any person, (2) will not sell or otherwise dispose of any of the Exchanged Securities or Redemption Shares, except in compliance with this Agreement and the Transaction
Documents and the registration requirements or exemption provisions of the Securities Act and any other applicable securities laws, (3) has such knowledge and experience in financial and business matters and in investments of this type that it
is capable of evaluating the merits and risks of its investment in the Exchanged Securities and of making an informed investment decision and (4) is an “accredited investor” (as that term is defined by Rule 501 of the Securities Act).

 (d) Brokers and Finders. Neither such Investor nor its Affiliates or any of their respective officers or directors has employed any
broker or finder or incurred any liability for any financial advisory fees, brokerage fees, commissions or finder’s fees, and no broker or finder has acted directly or indirectly for such Investor, in connection with this Agreement or the
transactions contemplated hereby. The Company will not be responsible for any brokerage, finder’s or other fee or commission to any broker, finder or investment banker in connection with the transactions contemplated by this Agreement or the
Transaction Documents based upon arrangements made by or on behalf of such Investor or its Affiliates. 
  

 11 

 (e) Interest in Canceled Loans. Such Investor shall have at the Closing the sole right, title and
interest in and to, the Canceled Loans set forth opposite such Investor’s name under the heading “Amount of Canceled Loans” on Annex A, subject to the terms of such Investor’s Assignment and Assumption Agreement.

 ARTICLE III 
 COVENANTS 
 3.1 Filings; Other Actions. 
 (a) Each Investor, on the one hand, severally and not jointly, and the Company, on the other hand, will cooperate and consult with the other and use reasonable best efforts to identify, prepare and file all necessary
documentation, to identify and effect all necessary applications, notices, petitions, filings and other documents, and to obtain all necessary permits, consents, orders, approvals and authorizations of, or any exemption by, all Governmental
Entities, and the expiration or termination of any applicable waiting periods, necessary or advisable to consummate the transactions contemplated by this Agreement, to perform the covenants contemplated by this Agreement, and to consummate the
delivery of the Investor Shares contemplated by the Warrants and/or Certificate of Designation. Each of the Investors, severally and not jointly, and the Company shall use commercially reasonable efforts and cooperate with one another with a view to
obtaining the consents or approvals of any third parties (other than Governmental Entities) necessary or advisable to consummate the transactions contemplated hereby and the delivery of the Investor Shares contemplated by the Warrants and/or
Certificate of Designation; provided, that neither party shall be required to pay any fees or consideration (other than filing fees) to any person in order to obtain any such third party consents or approvals. Each Investor, on the one hand,
severally and not jointly, and the Company, on the other hand, shall execute and deliver both before and after the Closing such further certificates, agreements and other documents and take such other actions as the other may reasonably request,
from time to time, to consummate or implement such transactions and delivery of shares or to evidence such events or matters. In particular, the Company will, upon reasonable request by any Investor, from time to time, use its reasonable best
efforts to promptly obtain or submit the approvals and authorizations of, filings and registrations with, and notifications to, or expiration or termination of any applicable waiting period, under the Hart-Scott-Rodino Antitrust Improvements Act of
1976 (the “HSR Act”) or applicable competition or merger control laws of other jurisdictions. Such requests of the Company by any Investor should be made only when the Investor reasonably anticipates that such Investor will meet or
exceed a reporting threshold under the HSR Act or applicable competition or merger control laws of other jurisdictions with a subsequent redemption or repurchase of Series A Preferred Stock by the Company or the exercise of a Warrant by such
Investor, and for which the parties have not observed the applicable waiting period(s). Further, each Investor will, upon reasonable request by the Company, from time to time, use its reasonable best efforts to promptly obtain or submit the
approvals and authorizations of, filings and registrations with, and notifications to, or expiration or termination of any applicable waiting period, under the HSR Act or applicable competition or merger control laws of other jurisdictions. Without
limiting the foregoing, the Company and each Investor shall prepare and file a Notification and Report Form pursuant to the HSR Act and other similar filings with respect to any other applicable competition or merger control laws of other
jurisdictions promptly upon reasonable request by (x) in the case of a filing to be made by the Company, any Investor and (y) in the case of a filing to be made by any Investor, the Company, from time to time. Each Investor and the Company
will have the right to review in advance, and to the extent practicable each will consult with the other, in each case subject to applicable laws relating to the exchange of information, all the information relating to such other party, and any of
its respective Affiliates, which appears in any filing made with, or written materials submitted to, any third party or any Governmental Entity in connection with the transactions contemplated by this Agreement and the Transaction Documents. In
exercising the foregoing right, each of the parties hereto agrees to act reasonably and as promptly as practicable. Each Investor, on 

  

 12 

 
the one hand, severally and not jointly, and the Company, on the other hand, agrees to keep the other apprised of the status of matters referred to in this
Section 3.1(a). Each Investor, on the one hand, severally and not jointly, and the Company, on the other, shall promptly furnish each other, with copies of written communications received by it or its Subsidiaries from, or delivered by any of
the foregoing to, any Governmental Entity in respect of the transactions contemplated by this Agreement (other than any portions thereof that relate to confidential supervisory matters). 
 (b) The Company shall call a special meeting of shareholders (the “Shareholders’ Meeting”) to be held as promptly as practicable
following the Closing Date and submit the Shareholder Proposal to a vote of the Company’s shareholders. The Board of Directors shall recommend to the Company’s shareholders that such shareholders vote in favor of the Shareholder Proposal
(the “Board Recommendation”). In connection with such meeting, the Company shall, as promptly as practicable following the Closing Date, prepare (and each Investor will reasonably cooperate with the Company to prepare) and file with
the SEC a preliminary proxy statement, shall use its reasonable best efforts to respond to any comments of the SEC or its staff and to cause a definitive proxy statement related to such Shareholders’ Meeting to be mailed to the Company’s
shareholders promptly after clearance thereof by the SEC, and shall use its reasonable best efforts to solicit proxies for such shareholder approval. The Company shall notify each Investor promptly of the receipt of any comments from the SEC or its
staff and of any request by the SEC or its staff for amendments or supplements to such proxy statement or for additional information and will supply each Investor with copies of all correspondence between the Company or any of its representatives,
on the one hand, and the SEC or its staff, on the other hand, with respect to such proxy statement. If at any time prior to such Shareholders’ Meeting there shall occur any event that is required to be set forth in an amendment or supplement to
the proxy statement, the Company shall as promptly as reasonably practicable prepare and mail to its shareholders such an amendment or supplement and each Investor shall cooperate with the Company in taking such actions. Each Investor and the
Company agree promptly to correct any information provided by it or on its behalf for use in the proxy statement if and to the extent that such information shall have become false or misleading in any material respect, and the Company shall as
promptly as reasonably practicable prepare and mail to its shareholders an amendment or supplement to correct such information to the extent required by applicable laws and regulations. The Company shall consult with each Investor prior to filing
any proxy statement or any amendment or supplement thereto, and provide each Investor with a reasonable opportunity to comment thereon. 
 (c) Each of the Investors, on the one hand, severally and not jointly, and the Company, on the other hand, agrees, upon request, to furnish the other party with all information concerning itself, its Affiliates, directors, officers,
partners and shareholders and such other matters as may be reasonably necessary or advisable in connection with the proxy statement in connection with any such Shareholders’ Meeting and any other statement, filing, notice or application made by
or on behalf of such other party or any of its Subsidiaries to any Governmental Entity in connection with the Closing, the delivery of any of the Investor Shares and the other transactions contemplated by this Agreement. 
 (d) Neither the Board of Directors of the Company nor any committee thereof shall withdraw or modify, or publicly propose to withdraw or modify the Board
Recommendation. 
 (e) From and after the date hereof, the Company and each Investor, severally and not jointly, will use their reasonable
best efforts in good faith to take, or cause to be taken, all actions, and to do, or cause to be done, all things necessary, proper or desirable, or advisable, so as to permit the delivery of the Exchanged Securities, Warrant Shares and Redemption
Shares to the Investors as promptly as practicable and otherwise to enable consummation of the transactions contemplated hereby subject to the terms and conditions hereof. 
  

 13 

 ARTICLE IV 
 ADDITIONAL AGREEMENTS 
 4.1 Legend. (a) Each Investor agrees that all certificates or other
instruments representing the Series A Preferred Stock subject to this Agreement will bear a legend substantially to the following effect: 
 THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION
STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS. 
 (b) Upon the reasonable request of any Investor, at a time when such legend is no longer required under the Securities Act and applicable state laws, the Company shall promptly cause the legend to be removed from any
of such Investor’s certificates for any Series A Preferred Stock. Each Investor acknowledges that the Exchanged Securities have not been registered under the Securities Act or under any state securities laws and agrees that it will not sell or
otherwise dispose of any shares of Series A Preferred Stock, except in compliance with the registration requirements or exemption provisions of the Securities Act and any other applicable securities laws. 
 4.2 Exchange Listing. The Company shall use its reasonable best efforts to cause the Warrant Shares and Redemption Shares (including, for the
avoidance of doubt, all shares of Common Stock reserved for issuance) to be approved for listing on the NASDAQ National Market System (“NASDAQ”), subject to official notice of issuance, as promptly as practicable following the
Closing Date, and in any event, prior to the Shareholders’ Meeting (and in any event, with respect to the Redemption Shares, prior to the Company’s mandatory redemption of the Series A Preferred Stock as set forth in the Certificate of
Designation, and/or the Company’s exercise of its right to optionally redeem the Series A Preferred Stock as set forth in the Certificate of Designation). 
 4.3 Reservation for Issuance. From and after the date hereof, the Company will reserve, and maintain as reserved, that number of shares of Common Stock sufficient for issuance of the Warrant Shares and/or the
Redemption Shares. 
 4.4 Certain Transactions. The Company will not merge or consolidate into, or sell, transfer or lease all or
substantially all of its property or assets to, any other party unless the successor, transferee or lessee party, as the case may be (if not the Company), expressly assumes the due and punctual performance and observance of each and every covenant
and condition of this Agreement to be performed and observed by the Company. 
 4.5 Certificate of Designation. In connection with the
Closing and in any event no later than immediately prior to the Closing, the Company shall file the Certificate of Designation in the State of Michigan, and such Certificate of Designation shall continue to be in full force and effect as of the
Closing until such time that no shares of Series A Preferred Stock remain outstanding. 
  

 14 

 ARTICLE V 
 TERMINATION 
 5.1 Termination. This Agreement may be terminated prior to the Closing by mutual
written agreement of the Company and each of the Investors. 
 5.2 Effects of Termination. In the event of any termination of this
Agreement as provided in Section 5.1, this Agreement (other than this Section 5.2 and Article VI, which shall remain in full force and effect) shall forthwith become wholly void and of no further force and effect;
provided, that nothing herein shall relieve any party from liability for intentional breach of this Agreement or fraud. 
 ARTICLE VI 
 MISCELLANEOUS 
 6.1 Survival. Each of the representations and warranties set forth in this Agreement shall terminate at the Closing. Except as otherwise provided herein, all covenants and agreements contained herein, other
than those which by their terms are to be performed in whole or in part after the Closing, shall terminate as of the Closing. Nothing contained in this Agreement shall preclude any Investor from commencing a claim against the Company asserting a
violation of Rule 10b-5 under the Exchange Act in respect of any matter that was not otherwise Previously Disclosed. 
 6.2 Expenses.
Notwithstanding anything herein to the contrary, the Company shall bear and pay all costs and expenses in connection with the transactions contemplated pursuant to this Agreement, the Transaction Documents and the transactions contemplated hereby
and thereby, and shall, upon any Investor’s request, promptly reimburse each such Investor for its reasonable out-of-pocket costs and expenses incurred in connection with due diligence, and/or the negotiation and preparation of this Agreement
and undertaking of the transactions contemplated pursuant to this Agreement, the Transaction Documents and the transactions contemplated hereby and thereby (including, for the avoidance of doubt, fees and expenses of counsel and HSR Act filing fees
incurred by or on behalf of any Investor or its Affiliates in connection with the transactions contemplated pursuant to this Agreement) and/or the Transaction Documents. In addition, at, or prior to, the Closing, the Company shall pay to each
assigning lender, as applicable, all accrued and unpaid interest with respect to the Canceled Loans under the Second Lien Credit Agreement. 
 6.3 Amendment. No amendment or waiver of any provision of this Agreement will be effective with respect to any party unless made in writing and signed by an officer of a duly authorized representative of such party. No failure or
delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or
privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law. 
 6.4
Waivers. The conditions to each party’s obligation to consummate the Closing are for the sole benefit of such party and may be waived by such party in whole or in part to the extent permitted by applicable law. No waiver of any party to
this Agreement, as the case may be, will be effective unless it is in a writing signed by a duly authorized officer of the waiving party that makes express reference to the provision or provisions subject to such waiver. 
 6.5 Counterparts and Facsimile. For the convenience of the parties hereto, this Agreement may be executed in any number of separate counterparts,
each such counterpart being deemed to be an original instrument, and all such counterparts will together constitute the same agreement. Executed signature pages to this Agreement may be delivered by facsimile and such facsimiles will be deemed as
sufficient as if actual signature pages had been delivered. 
  

 15 

 6.6 Governing Law. This Agreement will be governed by and construed in accordance with the laws
of the State of New York applicable to contracts made and to be performed entirely within such State. The parties hereby irrevocably and unconditionally consent to submit to the exclusive jurisdiction of the state and federal courts located in
the Borough of Manhattan, State of New York for any actions, suits or proceedings arising out of or relating to this Agreement and the transactions contemplated hereby. 
 6.7 WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY. 
 6.8 Notices. Any notice, request, instruction or other document to be given hereunder by any party to the
other will be in writing and will be deemed to have been duly given (a) on the date of delivery if delivered personally or by telecopy or facsimile, upon confirmation of receipt, (b) on the first business day following the date of dispatch
if delivered by a recognized next-day courier service, or (c) on the third business day following the date of mailing if delivered by registered or certified mail, return receipt requested, postage prepaid. All notices hereunder shall be
delivered as set forth below, or pursuant to such other instructions as may be designated in writing by the party to receive such notice. 
 (a) If to OEP: 
 OEPX, LLC 
 c/o One Equity Partners 
 320 Park Avenue, 18th Floor 
 New York, NY 10022 
 Tel: (212) 277-1500 
 Facsimile: (212) 277-1572 
 Attention: David M. Cohen 
          Colin M. Farmer 
 with a copy (which copy alone shall not constitute notice) to: 
 Simpson Thacher & Bartlett LLP 
 425 Lexington Avenue 
 New York, NY 10017 
 Tel: (212) 455-7295 
 Facsimile: (212) 455-2502 
 Attention: William R. Dougherty, Esq. 
 (b) If to Sagard: 
 Sagard
Capital Partners, L.P. 
 325 Greenwich Avenue 
 Greenwich, Connecticut 06830 
 Tel: (203) 629-6700 
 Facsimile: (203) 629-6781 
  

 16 

 Attention: Daniel Friedberg 
 with a copy (which copy alone shall not constitute notice) to: 
 Finn Dixon & Herling LLP 
 177 Broad Street 
 Stamford, Connecticut 06901 
 Tel: (203) 325-5000 
 Facsimile: (203) 325-5001 
 Attention: Charles J. Downey III, Esq. 
 (c) If to Tinicum: 
 Tinicum
Capital Partners II, L.P. 
 800 Third Avenue 
 40th Floor 
 New York, NY 10022 
 Tel: (212) 446-9300 
 Facsimile: (212) 750-9264 
 Attention: Robert J. Kelly 
 with a copy (which copy alone shall not constitute notice) to:

 Sullivan & Cromwell LLP 
 1888 Century Park East 
 Suite 2100 
 Los Angeles, CA 90067 
 Tel: (310) 712-6600 
 Facsimile: (310) 712-8800 
 Attention: Alison S. Ressler, Esq. 
 (d) If to the Company: 
 X-Rite, Incorporated 
 4300 44th Street SE 
 Grand Rapids, MI 49512 
 Tel: (616) 803-2309 
 Facsimile: (616) 803-2530 
 Attention: Thomas Vacchiano 
 with copies (which copies alone shall not constitute notice)
to: 
 McDermott Will & Emery LLP 
 227 West Monroe 
 Chicago, IL 60606 
 Tel: (312) 984-7563 
 Facsimile: (312) 983-7700 
 Attention: Helen Friedli, Esq. 
 6.9 Entire Agreement, Etc. (a) This Agreement (including the
Exhibits, Schedules and Disclosure Schedule hereto) constitutes the entire agreement, and supersedes all other prior agreements, 

  

 17 

 
understandings, representations and warranties, both written and oral, among the parties, with respect to the subject matter hereof; and (b) this
Agreement will not be assignable by operation of law or otherwise (any attempted assignment in contravention hereof being null and void); provided, that any Investor may assign its rights and obligations under this Agreement to any Affiliate
of such Investor who agrees in writing to be bound by the terms of this Agreement (provided, that no such assignment shall relieve the Investor of its obligations hereunder). Without limiting the foregoing, and other than with respect to
transfers to such Affiliates (as such term in defined in this Section 6.9), none of the rights of any of the Investors hereunder shall be assigned to, or enforceable by, any person to whom the Investor may transfer, sell, assign or otherwise
dispose of Exchanged Securities. 
 6.10 Other Definitions. Wherever required by the context of this Agreement, the singular shall
include the plural and vice versa, and the masculine gender shall include the feminine and neuter genders and vice versa, and references to any agreement, document or instrument shall be deemed to refer to such agreement, document or instrument as
amended, supplemented or modified from time to time. 
 (a) unless otherwise indicated, the term “Affiliate” means, with
respect to any person, any person directly or indirectly controlling, controlled by or under common control with, such other person. For purposes of this definition, “control” (including, with correlative meanings, the terms
“controlled by” and “under common control with”) when used with respect to any person, means the possession, directly or indirectly, of the power to cause the direction of management or policies of such person,
whether through the ownership of voting securities by contract or otherwise; 
 (b) the term “Benefit Plan” means any
employee welfare benefit plan within the meaning of Section 3(1) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), any employee pension benefit plan within the meaning of Section 3(2) of ERISA
and any bonus, incentive, deferred compensation, vacation, stock purchase, stock option, severance, employment, change of control, consulting or fringe benefit plan, program, agreement or policy. 
 (c) “business day” means any day except Saturday, Sunday and any day which shall be a legal holiday or a day on which banking
institutions in the State of New York or in the State of Michigan generally are authorized or required by law or other governmental actions to close; 
 (d) the terms “herein,” “hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular section, paragraph or
subdivision; 
 (e) the words “including,” “includes,” “included” and
“include” are deemed to be followed by the words “without limitation”; and 
 (f) the word “or” is
not exclusive; 
 (g) “person” has the meaning given to it in Section 3(a)(9) of the Exchange Act and as used in
Sections 13(d)(3) and 14(d)(2) of the Exchange Act; 
 (h) all article, section, paragraph or clause references not attributed to a
particular document shall be references to such parts of this Agreement, and all exhibit, annex and schedule references not attributed to a particular document shall be references to such exhibits, annexes and schedules to this Agreement.

 6.11 Captions. The article, section, paragraph and clause captions herein are for convenience of reference only, do not constitute
part of this Agreement and will not be deemed to limit or otherwise affect any of the provisions hereof. 
  

 18 

 6.12 Severability. If any provision of this Agreement or the application thereof to any person
(including, the officers and directors of the Investor and the Company) or circumstance is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof, or the application of such provision to
persons or circumstances other than those as to which it has been held invalid or unenforceable, will remain in full force and effect and shall in no way be affected, impaired or invalidated thereby, so long as the economic or legal substance of the
transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination, the parties shall negotiate in good faith in an effort to agree upon a suitable and equitable substitute provision to effect the
original intent of the parties. 
 6.13 No Third Party Beneficiaries. Nothing contained in this Agreement, expressed or implied, is
intended to confer upon any person or entity other than the parties hereto, any benefit, right or remedies. 
 6.14 Time of Essence.
Time is of the essence in the performance of each and every term of this Agreement. 
 6.15 Public Announcements. Subject to each
party’s disclosure obligations imposed by law or regulation or the rules of any stock exchange upon which its securities are listed, each of the parties hereto will cooperate with each other in the development and distribution of all news
releases and other public information disclosures with respect to this Agreement and any of the transactions contemplated by this Agreement, and no party hereto will make any such news release or public disclosure without first consulting with the
other party hereto and receiving its consent (which shall not be unreasonably withheld or delayed) and each party shall coordinate with the other with respect to any such news release or public disclosure. 
 6.16 Specific Performance. The parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were
not performed in accordance with their specific terms. It is accordingly agreed that the parties shall be entitled to seek specific performance of the terms hereof, this being in addition to any other remedies to which they are entitled at law or
equity. 
 6.17 Memorandum of Agreement. The Company has determined that this Agreement shall satisfy the requirement set forth in
Section (B)(1) of Article VI of the Company’s restated articles of incorporation (as amended) for the Company to enter into a memorandum of understanding setting forth the principal terms of the transaction to be entered into, and, this
Agreement shall be deemed to be a “memorandum of understanding” for all purposes of such Article VI. 
 [Remainder of page
intentionally left blank] 
  

 19 

 IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly authorized
officers of the parties hereto as of the date first herein above written. 
  

			
	X-RITE, INCORPORATED
		
	By:	 	 /s/ Thomas J. Vacchiano Jr.

	Name:	 	Thomas J. Vacchiano Jr.
	Title:	 	Chief Executive Officer

			
	OEPX, LLC
		
	By:	 	 /s/ Colin M. Farmer

	Name:	 	Colin M. Farmer
	Title:	 	Authorized Signatory

			
	SAGARD CAPITAL PARTNERS, L.P.
		
	By:	 	Sagard Capital Partners GP, Inc.,
		 	its general partner
		
	By:	 	 /s/ Daniel Friedberg

	Name:	 	Daniel Friedberg
	Title:	 	Chief Executive Officer

			
	TINICUM CAPITAL PARTNERS II, L.P.
		
	By:	 	Tinicum Lantern II L.L.C.,
		 	its general partner
		
	By:	 	 /s/ Robert J. Kelly

	Name:	 	Robert J. Kelly
	Title:	 	Member
	
	 TINICUM CAPITAL PARTNERS II PARALLEL FUND, L.P.

		
	By:	 	Tinicum Lantern II L.L.C.,
		 	its general partner
		
	By:	 	 /s/ Robert J. Kelly

	Name:	 	Robert J. Kelly
	Title:	 	Member
	
	 TINICUM CAPITAL PARTNERS II EXECUTIVE FUND L.L.C.

		
	By:	 	Tinicum Lantern II L.L.C.,
		 	its managing member
		
	By:	 	 /s/ Robert J. Kelly

	Name:	 	Robert J. Kelly
	Title:	 	Member

 Annex A 
  

								
	 Investor
	  	Number of Shares of
Series A Preferred Stock	  	Number of Shares of
Common Stock Exercisable
Pursuant to Warrants	  	Amount of Canceled Loans
	 OEPX, LLC
	  	25,316.48088	  	4,568,527.88063	  	$	25,316,480.87693
		  	 	  	 	  	 	 
	 Sagard Capital Partners, L.P.
	  	8,042.62421	  	1,451,345.19708	  	$	8,042,624.20797
		  	 	  	 	  	 	 
	 Tinicum Capital Partners II, L.P.
	  	8,135.47088	  	1,468,099.99871	  	$	8,135,470.88121
	 Tinicum Capital Partners II Parallel Fund, L.P.
	  	42.31017	  	7,635.15211	  	$	42,310.16803
	 Tinicum Capital Partners II Executive Fund, L.L.C.
	  	24.33699	  	4,391.77147	  	$	24,336.98587
		  	 	  	 	  	 	 
	 Tinicum (total)
	  	8,202.11804	  	1,480,126.92229	  	$	8,202,118.03510
		  	 	  	 	  	 	 
	 Total
	  	41,561.22312	  	7,500,000.00000	  	$	41,561,223.12000

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