Document:

Exhibit 10.21

 

Line of Credit Confirmation Letter

 

April 21, 2008

 

American
Wagering, Inc. and Subsidiaries

John Salerno

675
Grier Drive

Las
Vegas, Nevada 89119

 

Re: Second Amendment to
Guaranty dated June 8, 2006 and Restatement of Such Agreement as a “Line
of Credit”

 

Dear  John:

 

We are pleased to confirm
that Victor and Terina Salerno
(the “Salernos”) have approved a line of credit (the “Line of Credit”) to you
(the “Borrower”) on the following terms and conditions:

 

THIS SECOND AMENDMENT TO THE
GUARANTY DATED JUNE 8, 2006 AND RESTATEMENT OF SUCH AGREEMENT AS A “LINE OF
CREDIT” COMPLETELY AMENDS AND RESTATES THE GUARANTY AGREEMENT IN ITS ENTIRETY;
THE TERMS AND CONDITIONS SET FORTH HEREIN SHALL CONTROL.

 

Borrower: American Wagering, Inc. and subsidiaries

 

Amount: $500,000

 

Purpose: Commercial
investment needs of the Borrower

 

Type: A line of credit
available from the date hereof through February 16,
2011 unless earlier terminated by the Borrower.  Advances will be made available at the request
of the Borrower (“Advances”). The outstanding amount of all Advances shall be
payable on February 16, 2011.

 

Interest: At a rate per
annum of 10.0% .

 

Interest
will be calculated on the basis of a 360-day year for the actual number of days
elapsed. Interest on Advances will be payable in arrears on the last day of
each month.

 

The loan repayment schedule
should be agreed upon by the Borrower and the Salernos and is attached as Exhibit A.
Advances: Prior to any Advance, the Borrower shall submit to the Salernos a
written description of the intended use of such Advance. In addition, for each
Advance the Salernos shall have the additional right, in its sole discretion,
to approve the use of such Advance. In any event, the Salernos shall not make
any Advance if such Advance, when aggregated with all amounts due and
outstanding under the Note (as defined below), is greater than 50% of the
then-current market value (as quoted on any applicable national exchange, the
Nasdaq stock market or other interdealer quotation system, or applicable
over-the-counter market) of the Stock (as defined below), which is pledged by
the Borrower as security for the Line of Credit pursuant to the terms of the
Stock Pledge Agreement (as defined below).

 

Note: Advances under the
Line of Credit shall be evidenced by a revolving line of credit promissory note

 

 

(the “Note “) payable to the
order of the Salernos. The Borrower acknowledges that, in the absence of
manifest error, the actual crediting of the amount of any Advance hereunder to
an account of the Borrower shall constitute presumptive evidence that such
Advance was made hereunder, and the Salernos’ records with respect to Advances
under the Note shall constitute presumptive evidence of principal amounts
outstanding, advanced and repaid from time to time and at any time under the
Line of Credit.

 

Repayments: Repayments of
Advances may be made to the Salernos without premium, penalty or other fees at
any time in the minimum amount of interest
due. Advances shall be repaid at any time and to the extent that they
exceed the maximum amount of the Line of Credit available hereunder.

 

Conditions Precedent: The
obligation of the Salernos to make the first Advance under this Line of Credit
will not arise until all of the following documents in form and substance
satisfactory to the Salernos have been received by the Salernos:

 

A)
The Note, including an approved repayment schedule; and

 

B)
Such other documents as the Salernos may reasonably request.

 

Conditions to Utilization: Advances
shall be made at the request of the Borrower so long as the Borrower’s
representations and warranties continue to be true and correct in all material
respects and no Event of Default, or event, which alone or with the giving of
notice, or the passage of time, or both, would constitute an Event of Default,
has occurred hereunder. The Borrower’s request for any Advance shall constitute
a certification by the Borrower that the representations and warranties
contained herein shall be true and correct, and no event shall have occurred
and be continuing which alone or with the giving of notice, or the passage of
time, or both, would constitute an Event of Default hereunder.

 

Representations and
Warranties: The Borrower represents and warrants that:

 

A)
The Borrower has full legal right to borrow in the manner and on the terms of
this Agreement and the Note.

 

B)
The execution, delivery and performance of this Agreement, the Note and the
Stock Pledge Agreement, and any other documents delivered or to be delivered by
the Borrower to the Salernos,

 

(i) do
not require any approval or consent of, or filing with, any governmental agency
or entity;

 

(ii) do
not and will not

 

(a) result
in, or require, the creation or imposition of any mortgage, deed of trust,
pledge, lien, security interest or other charge or encumbrance of any nature on
any property now owned or hereafter acquired by the Borrower, except as
provided in this Agreement.

 

C)
This Agreement, the Note and the repayment schedule are valid and are legally
enforceable against the Borrower in accordance with their terms.

 

 

D)
The financial statements of  AWI as at the most recent quarter (previously delivered by the Borrower to
the Salernos) have been prepared in accordance with generally accepted
accounting principles consistently applied throughout the periods involved and
present fairly in accordance with generally accepted accounting principles the
financial condition of AWI and all such information so furnished is to the
Borrower’s best knowledge true, correct and complete.

 

Reporting Requirements: The
Borrower shall furnish the Salernos with the following statements and reports:

 

A)
Within one hundred twenty (120) days after the end of the fiscal year, a copy
of the audited annual financial statements of Piercy Bowler Taylor &
Kern, Ltd.

 

B)
Within forty-five (45) days after the end of each fiscal quarter, a copy of the
quarterly financial statements of AWI,
certified by the Borrower to the best of her knowledge to present fairly the
financial condition of AWI.

 

C)
From time to time at the request of the Salernos, the Borrower will deliver a
certificate as to its representations and warranties and no Events of Default
hereunder.

 

Events of Default: If any of
the events set forth below ( “Events of Default”) shall occur and be continuing,
the Salernos may, but shall not be obligated to, declare the Note immediately
due and payable and withhold Advances and pursue any other rights and remedies
available to the Salernos or both:

 

A)
A payment of interest on the Note is not made within ten (10) business
days following the date on which it is due;

 

B)
A representation or warranty contained herein proves to be incorrect in any
material respect;

 

C)
The Borrower is in default of any other material provision hereof;

 

E)
The Borrower shall be involved in financial difficulties as evidenced by the
entry of an order by a court of competent jurisdiction finding him to be bankrupt
or insolvent and such order shall not be vacated or stayed on appeal or
otherwise stayed within sixty (60) days;

 

F)
If at any time the Salernos reasonably believes in good faith that the prospect
of payment of any Obligation or the performance of any agreement of the
Borrower, or that there is such a change in the assets, liabilities, financial
condition or business of AWI,
which, in each case, impairs the Salernos’ security or increases its risk of
non-collection.

 

Following
any Event of Default which is continuing, the Salernos may decline to make any
or all further Advances hereunder; the Salernos may proceed to protect and
enforce its rights by suit in equity, action at law and/or other appropriate
proceeding either for specific performance of any covenant or condition
contained in the Line of Credit or any other outstanding agreement with the
Salernos or in any instrument delivered to the Salernos pursuant hereto or
thereto, or in aid of the exercise of any power granted in the Line of Credit,
any outstanding agreement with the Salernos or any such instrument.

 

 

Notices: All communications
herein provided shall be in writing and shall be sufficient if sent by United
States mail, registered or certified, postage prepaid, delivered by messenger,
or so-called overnight courier, addressed as follows:

 

If
to the Pledgor:

Victor Salerno

675 Grier Drive

Las Vegas, Nevada 89119

 

If
to the Pledgee:

American
Wagering, Inc.

675
Grier Drive

Las
Vegas, Nevada 89119

Attention:
 Secretary

 

or to such other address as
the party to receive any such communication or notice may have designated by
written notice to the other party.

 

Expenses: All reasonable
legal expenses reasonably incurred by the Salernos in connection with the
preparation, administration and enforcement of this Agreement and the Note
shall be payable by the Borrower to the Salernos on demand.

 

WAIVER OF JURY TRIAL:TO THE
EXTENT PERMITTED BY LAW, EACH OF THE Borrower AND THE Salernos HEREBY WAIVES
ITS RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY ACTION, CLAIM, SUIT OR
PROCEEDING IN RESPECT OF OR ARISING OUT OF THIS AGREEMENT AND THE NOTE, AND THE
OTHER AGREEMENTS AND TRANSACTIONS CONTEMPLATED HEREBY AND THE CONDUCT OF THE
RELATIONSHIP BETWEEN THE Borrower AND THE Salernos.

 

Laws: This Agreement shall
be construed as an instrument under seal and in accordance with and governed in
all respects by the laws of the State of Nevada.  The parties subject to personal jurisdiction
to the State of Nevada and venue shall be in Clark County, Nevada.

 

If the above terms and
conditions are satisfactory, please so indicate on the enclosed copy hereof
whereupon this letter will then constitute an Agreement between the Borrower
and the Salernos.

 

 

	
   

  	
   

  	
  By:

  	
    /s/ John
  Salerno

  	
   

  
	
   

  	
   

  	
   

  	
    John Salerno

  	
   

  
	
   

  	
   

  	
  Title: Secretary

  	
   

  
	
   

  	
   

  	
  Agreed and Accepted on
  April 22, 2008:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Copy to:

  	
  Melody Sullivan

  	
   

  
	
   

  	
  Chief Financial Officer

  	
   

  
	
   

  	
  American
  Wagering, Inc.

  	
   

  

 

Encl.
Exhibit A.  Line of Credit Repayment
Amortization Schedule

 

 

	
  Loan Amortization Schedule

  	
  AWI LOAN FROM
  SALERNO

  

 

NOTE: At  2/13/08 balance of  $480,000 out of $500,000 credit line.

 

	
   

  	
   

  	
  Enter values

  	
   

  
	
  Loan amount

  	
   

  	
  $

  	
  480,000.00

  	
   

  
	
  Annual interest rate

  	
   

  	
  10.00

  	
  %

  
	
  Loan period in years

  	
   

  	
  3

  	
   

  
	
  Number of payments per year

  	
   

  	
  12

  	
   

  
	
  Start date of loan

  	
   

  	
  11/8/2007

  	
   

  
	
  Optional extra payments

  	
   

  	
  $

  	
  —

  	
   

  

 

	
   

  	
   

  	
  Loan summary

  	
   

  
	
  Scheduled payment

  	
   

  	
  Interest only for 12 months

  	
   

  
	
  Scheduled number of payments

  	
   

  	
  36

  	
   

  
	
  Actual number of payments

  	
   

  	
   

  	
   

  
	
  Total early payments

  	
   

  	
  Additional $80K 2/13/08

  	
   

  
	
  Total interest

  	
   

  	
  $

  	
  120,364.88

  	
   

  
					

 

Lender name:  Vic
Salerno

 

	
  Pmt

  No.

  	
   

  	
  Payment Date

  	
   

  	
  Beginning

  Balance

  	
   

  	
  Scheduled

  Payment

  	
   

  	
  Extra

  Payment

  	
   

  	
  Total Payment

  	
   

  	
  Principal

  	
   

  	
  Interest

  	
   

  	
  Ending

  Balance

  	
   

  	
  Cumulative

  Interest

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  12/8/2007

  	
   

  	
  $

  	
  400,000.00

  	
   

  	
  $

  	
  12,906.87

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  12,906.87

  	
   

  	
  $

  	
  9,573.54

  	
   

  	
  $

  	
  3,333.33

  	
   

  	
  $

  	
  390,426.46

  	
   

  	
  $

  	
  3,333.33

  	
   

  
	
  2

  	
   

  	
  1/8/2008

  	
   

  	
  390,426.46

  	
   

  	
  12,906.87

  	
   

  	
  —

  	
   

  	
  12,906.87

  	
   

  	
  $

  	
  9,653.32

  	
   

  	
  $

  	
  3,253.55

  	
   

  	
  $

  	
  380,773.14

  	
   

  	
  $

  	
  6,586.89

  	
   

  
	
  3

  	
   

  	
  2/1/2008

  	
   

  	
  380,773.14

  	
   

  	
  2,282.86

  	
   

  	
  —

  	
   

  	
  2,282.86

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  2,282.86

  	
   

  	
  $

  	
  380,773.14

  	
   

  	
  $

  	
  8,869.75

  	
   

  
	
  3

  	
   

  	
  2/13/2008

  	
   

  	
  380,773.14

  	
   

  	
  —

  	
   

  	
  (80,000.00

  	
  )

  	
  (80,000.00

  	
  )

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  460,773.14

  	
   

  	
  $

  	
  8,869.75

  	
   

  
	
  3

  	
   

  	
  2/18/2008

  	
   

  	
  460,773.14

  	
   

  	
  999.55

  	
   

  	
  —

  	
   

  	
  999.55

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  999.55

  	
   

  	
  $

  	
  460,773.14

  	
   

  	
  $

  	
  9,869.30

  	
   

  
	
   

  	
   

  	
  2/18/2008

  	
   

  	
  460,773.14

  	
   

  	
  520.15

  	
   

  	
  —

  	
   

  	
  520.15

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  520.15

  	
   

  	
  $

  	
  460,773.14

  	
   

  	
  $

  	
  10,389.45

  	
   

  
	
  4

  	
   

  	
  3/13/2008

  	
   

  	
  460,773.14

  	
   

  	
  3,839.78

  	
   

  	
  —

  	
   

  	
  3,839.78

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  3,839.78

  	
   

  	
  $

  	
  460,773.14

  	
   

  	
  $

  	
  13,709.08

  	
   

  
	
  5

  	
   

  	
  4/13/2008

  	
   

  	
  460,773.14

  	
   

  	
  3,839.78

  	
   

  	
  —

  	
   

  	
  3,839.78

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  3,839.78

  	
   

  	
  $

  	
  460,773.14

  	
   

  	
  $

  	
  17,548.85

  	
   

  
	
  6

  	
   

  	
  5/13/2008

  	
   

  	
  460,773.14

  	
   

  	
  3,839.78

  	
   

  	
  —

  	
   

  	
  3,839.78

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  3,839.78

  	
   

  	
  $

  	
  460,773.14

  	
   

  	
  $

  	
  21,388.63

  	
   

  
	
  7

  	
   

  	
  6/13/2008

  	
   

  	
  460,773.14

  	
   

  	
  3,839.78

  	
   

  	
  —

  	
   

  	
  3,839.78

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  3,839.78

  	
   

  	
  $

  	
  460,773.14

  	
   

  	
  $

  	
  25,228.41

  	
   

  
	
  8

  	
   

  	
  7/13/2008

  	
   

  	
  460,773.14

  	
   

  	
  3,839.78

  	
   

  	
  —

  	
   

  	
  3,839.78

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  3,839.78

  	
   

  	
  $

  	
  460,773.14

  	
   

  	
  $

  	
  29,068.18

  	
   

  
	
  9

  	
   

  	
  8/13/2008

  	
   

  	
  460,773.14

  	
   

  	
  3,839.78

  	
   

  	
  —

  	
   

  	
  3,839.78

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  3,839.78

  	
   

  	
  $

  	
  460,773.14

  	
   

  	
  $

  	
  32,907.96

  	
   

  
	
  10

  	
   

  	
  9/13/2008

  	
   

  	
  460,773.14

  	
   

  	
  3,839.78

  	
   

  	
  —

  	
   

  	
  3,839.78

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  3,839.78

  	
   

  	
  $

  	
  460,773.14

  	
   

  	
  $

  	
  36,747.73

  	
   

  
	
  11

  	
   

  	
  10/13/2008

  	
   

  	
  460,773.14

  	
   

  	
  3,839.78

  	
   

  	
  —

  	
   

  	
  3,839.78

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  3,839.78

  	
   

  	
  $

  	
  460,773.14

  	
   

  	
  $

  	
  40,587.51

  	
   

  
	
  12

  	
   

  	
  11/13/2008

  	
   

  	
  460,773.14

  	
   

  	
  3,839.78

  	
   

  	
  —

  	
   

  	
  3,839.78

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  3,839.78

  	
   

  	
  $

  	
  460,773.14

  	
   

  	
  $

  	
  44,427.29

  	
   

  
	
  13

  	
   

  	
  12/13/2008

  	
   

  	
  460,773.14

  	
   

  	
  3,839.78

  	
   

  	
  —

  	
   

  	
  3,839.78

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  3,839.78

  	
   

  	
  $

  	
  460,773.14

  	
   

  	
  $

  	
  48,267.06

  	
   

  
	
  14

  	
   

  	
  1/13/2009

  	
   

  	
  460,773.14

  	
   

  	
  3,839.78

  	
   

  	
  —

  	
   

  	
  3,839.78

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  3,839.78

  	
   

  	
  $

  	
  460,773.14

  	
   

  	
  $

  	
  52,106.84

  	
   

  
	
  15

  	
   

  	
  2/13/2009

  	
   

  	
  460,773.14

  	
   

  	
  3,839.78

  	
   

  	
  —

  	
   

  	
  3,839.78

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  3,839.78

  	
   

  	
  $

  	
  460,773.14

  	
   

  	
  $

  	
  55,946.61

  	
   

  
	
  16

  	
   

  	
  3/13/2009

  	
   

  	
  460,773.14

  	
   

  	
  12,906.87

  	
   

  	
  —

  	
   

  	
  12,906.87

  	
   

  	
  9,067.10

  	
   

  	
  3,839.78

  	
   

  	
  451,706.04

  	
   

  	
  $

  	
  59,786.39

  	
   

  
	
  17

  	
   

  	
  4/13/2009

  	
   

  	
  451,706.04

  	
   

  	
  12,906.87

  	
   

  	
  —

  	
   

  	
  12,906.87

  	
   

  	
  9,142.66

  	
   

  	
  3,764.22

  	
   

  	
  442,563.38

  	
   

  	
  $

  	
  63,550.61

  	
   

  
	
  18

  	
   

  	
  5/13/2009

  	
   

  	
  442,563.38

  	
   

  	
  12,906.87

  	
   

  	
  —

  	
   

  	
  12,906.87

  	
   

  	
  9,218.85

  	
   

  	
  3,688.03

  	
   

  	
  433,344.54

  	
   

  	
  $

  	
  67,238.64

  	
   

  
	
  19

  	
   

  	
  6/13/2009

  	
   

  	
  433,344.54

  	
   

  	
  12,906.87

  	
   

  	
  —

  	
   

  	
  12,906.87

  	
   

  	
  9,295.67

  	
   

  	
  3,611.20

  	
   

  	
  424,048.87

  	
   

  	
  $

  	
  70,849.84

  	
   

  
	
  20

  	
   

  	
  7/13/2009

  	
   

  	
  424,048.87

  	
   

  	
  12,906.87

  	
   

  	
  —

  	
   

  	
  12,906.87

  	
   

  	
  9,373.13

  	
   

  	
  3,533.74

  	
   

  	
  414,675.73

  	
   

  	
  $

  	
  74,383.58

  	
   

  
	
  21

  	
   

  	
  8/13/2009

  	
   

  	
  414,675.73

  	
   

  	
  12,906.87

  	
   

  	
  —

  	
   

  	
  12,906.87

  	
   

  	
  9,451.24

  	
   

  	
  3,455.63

  	
   

  	
  405,224.49

  	
   

  	
  $

  	
  77,839.21

  	
   

  
	
  22

  	
   

  	
  9/13/2009

  	
   

  	
  405,224.49

  	
   

  	
  12,906.87

  	
   

  	
  —

  	
   

  	
  12,906.87

  	
   

  	
  9,530.00

  	
   

  	
  3,376.87

  	
   

  	
  395,694.48

  	
   

  	
  $

  	
  81,216.08

  	
   

  
	
  23

  	
   

  	
  10/13/2009

  	
   

  	
  395,694.48

  	
   

  	
  12,906.87

  	
   

  	
  —

  	
   

  	
  12,906.87

  	
   

  	
  9,609.42

  	
   

  	
  3,297.45

  	
   

  	
  386,085.06

  	
   

  	
  $

  	
  84,513.54

  	
   

  
	
  24

  	
   

  	
  11/13/2009

  	
   

  	
  386,085.06

  	
   

  	
  12,906.87

  	
   

  	
  —

  	
   

  	
  12,906.87

  	
   

  	
  9,689.50

  	
   

  	
  3,217.38

  	
   

  	
  376,395.56

  	
   

  	
  $

  	
  87,730.91

  	
   

  
	
  25

  	
   

  	
  12/13/2009

  	
   

  	
  376,395.56

  	
   

  	
  12,906.87

  	
   

  	
  —

  	
   

  	
  12,906.87

  	
   

  	
  9,770.25

  	
   

  	
  3,136.63

  	
   

  	
  366,625.32

  	
   

  	
  $

  	
  90,867.54

  	
   

  
	
  26

  	
   

  	
  1/13/2010

  	
   

  	
  366,625.32

  	
   

  	
  12,906.87

  	
   

  	
  —

  	
   

  	
  12,906.87

  	
   

  	
  9,851.66

  	
   

  	
  3,055.21

  	
   

  	
  356,773.65

  	
   

  	
  $

  	
  93,922.75

  	
   

  
	
  27

  	
   

  	
  2/13/2010

  	
   

  	
  356,773.65

  	
   

  	
  12,906.87

  	
   

  	
  —

  	
   

  	
  12,906.87

  	
   

  	
  9,933.76

  	
   

  	
  2,973.11

  	
   

  	
  346,839.89

  	
   

  	
  $

  	
  96,895.87

  	
   

  
	
  28

  	
   

  	
  3/13/2010

  	
   

  	
  346,839.89

  	
   

  	
  12,906.87

  	
   

  	
  —

  	
   

  	
  12,906.87

  	
   

  	
  10,016.54

  	
   

  	
  2,890.33

  	
   

  	
  336,823.35

  	
   

  	
  $

  	
  99,786.20

  	
   

  
	
  29

  	
   

  	
  4/13/2010

  	
   

  	
  336,823.35

  	
   

  	
  12,906.87

  	
   

  	
  —

  	
   

  	
  12,906.87

  	
   

  	
  10,100.01

  	
   

  	
  2,806.86

  	
   

  	
  326,723.34

  	
   

  	
  $

  	
  102,593.06

  	
   

  
	
  30

  	
   

  	
  5/13/2010

  	
   

  	
  326,723.34

  	
   

  	
  12,906.87

  	
   

  	
  —

  	
   

  	
  12,906.87

  	
   

  	
  10,184.18

  	
   

  	
  2,722.69

  	
   

  	
  316,539.16

  	
   

  	
  $

  	
  105,315.76

  	
   

  
	
  31

  	
   

  	
  6/13/2010

  	
   

  	
  316,539.16

  	
   

  	
  12,906.87

  	
   

  	
  —

  	
   

  	
  12,906.87

  	
   

  	
  10,269.05

  	
   

  	
  2,637.83

  	
   

  	
  306,270.11

  	
   

  	
  $

  	
  107,953.58

  	
   

  
	
  32

  	
   

  	
  7/13/2010

  	
   

  	
  306,270.11

  	
   

  	
  12,906.87

  	
   

  	
  —

  	
   

  	
  12,906.87

  	
   

  	
  10,354.62

  	
   

  	
  2,552.25

  	
   

  	
  295,915.48

  	
   

  	
  $

  	
  110,505.83

  	
   

  
	
  33

  	
   

  	
  8/13/2010

  	
   

  	
  295,915.48

  	
   

  	
  12,906.87

  	
   

  	
  —

  	
   

  	
  12,906.87

  	
   

  	
  10,440.91

  	
   

  	
  2,465.96

  	
   

  	
  285,474.57

  	
   

  	
  $

  	
  112,971.80

  	
   

  
	
  34

  	
   

  	
  9/13/2010

  	
   

  	
  285,474.57

  	
   

  	
  12,906.87

  	
   

  	
  —

  	
   

  	
  12,906.87

  	
   

  	
  10,527.92

  	
   

  	
  2,378.95

  	
   

  	
  274,946.65

  	
   

  	
  $

  	
  115,350.75

  	
   

  
	
  35

  	
   

  	
  10/13/2010

  	
   

  	
  274,946.65

  	
   

  	
  12,906.87

  	
   

  	
  —

  	
   

  	
  12,906.87

  	
   

  	
  10,615.65

  	
   

  	
  2,291.22

  	
   

  	
  264,331.00

  	
   

  	
  $

  	
  117,641.97

  	
   

  
	
  36

  	
   

  	
  11/13/2010

  	
   

  	
  264,331.00

  	
   

  	
  12,906.87

  	
   

  	
  —

  	
   

  	
  12,906.87

  	
   

  	
  10,704.12

  	
   

  	
  2,202.76

  	
   

  	
  253,626.88

  	
   

  	
  $

  	
  119,844.73Exhibit 10.1

 

Execution Copy

 

SECOND
AMENDED AND RESTATED

SECURITIES PURCHASE AGREEMENT

 

THIS SECOND AMENDED AND RESTATED SECURITIES
PURCHASE AGREEMENT
(this “Agreement”) is made as of January 28, 2008, by and between
Solera Holdings, Inc., a Delaware corporation (the “Company”), and
Roxani Gillespie  (“Purchaser”).  Certain definitions are set forth in Section 8
of this Agreement.

 

On April 11, 2005, pursuant to the Securities
Purchase Agreement, dated as of April 11, 2005, by and between Solera
Holdings, LLC, a Delaware limited liability company and predecessor to the
Company (“Solera LLC”) and Purchaser (the “Original Securities
Purchase Agreement”), Purchaser purchased from Solera LLC (i) 121,447
of Solera LLC’s Class A Common Units (as defined below) and (ii) none
of Solera LLC’s Class B Preferred Units (as defined below).

 

On April 13, 2006, pursuant to the Amended and
Restated Securities Purchase Agreement, dated as of April 13, 2006 (the “Restated
Securities Purchase Agreement”), by and between Solera LLC and Purchaser,
Purchaser purchased from Solera LLC 24,606 Class A Common Units.  All Class A Common Units and Class B  Preferred Units owned by Purchaser or acquired by Purchaser
pursuant to the Original Securities Purchase Agreement or the Restated Securities
Purchase Agreement are referred to herein as “Units.”

 

On April 28, 2007, pursuant to a resolution of
the board of managers of Solera LLC, a three-to-one reverse split of the Class A
Common Units of Solera LLC was effected pursuant to which the number of Class A
Common Units held by Purchaser was divided by three and any resulting
fractional Unit was cancelled.

 

On May 10, 2007, pursuant to a resolution of the
board of managers of Solera LLC, Solera LLC filed a certificate of conversion
(as filed, the “Certificate of Conversion”) with the Secretary of State
of the State of Delaware, pursuant to which Solera LLC was converted from a
limited liability company into a corporation and all outstanding Class A
Common Units and Class B Preferred Units of Solera LLC were converted into
shares (the “Conversion”) of the common stock, par value $0.01 per share
(the “Common Stock”), of the Company as set forth in the Certificate of
Conversion.

 

Immediately following the Conversion, the Investors
owned an aggregate of 41,526,756 shares of Common Stock (such number of shares,
the “Initial Investor Amount”).

 

On May 15, 2007, the Company completed an initial
public offering of shares of Common Stock.

 

As a result of the foregoing events, the Company and
Purchaser desire to amend and restate the Restated Securities Purchase
Agreement in its entirety.  Certain
provisions of this Agreement are intended for the benefit of, and will be
enforceable by, the Investors (as defined below).

 

NOW, THEREFORE, in consideration of the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby 

 

 

acknowledged, the parties
to the Restated Securities Purchase Agreement agree that the Restated
Securities Purchase Agreement is hereby amended and restated in its entirety as
follows and all parties hereto hereby agree as follows:

 

PROVISIONS
RELATING TO SECURITIES

 

1.               Purchase and Sale of Securities.

 

(a)          Pursuant to the Original Securities Purchase
Agreement, on April 11, 2005, Purchaser purchased and the Company sold, (i) 121,447
Class A Common Units and (ii) 0 Class B Preferred Units.  On such date, Solera LLC delivered to
Purchaser a copy of the certificates evidencing such Units, and Purchaser
delivered to Solera, Inc., for the benefit of the Solera LLC, a cashier’s
or certified check or wire transfer of immediately available funds in an
aggregate amount equal to $12,144.74 as payment for such Units.

 

(b)         Pursuant to the Restated Securities Purchase
Agreement, Purchaser purchased, and Solera LLC sold, 24,606 Class A Common
Units at a price of $0.10 per unit. 
Solera LLC delivered to Purchaser a copy of the certificate representing
such Class A Common Units, and Purchaser delivered to Solera LLC a cashier’s
or certified check or wire transfer of immediately available funds in an
aggregate amount equal to $2,460.64 as payment for such Class A Common
Units.  Following such purchase of Class A
Common Units, Purchaser owned the following Units: (i) 146,053 Class A
Common Units, which units are referred to herein as the “Carried Common
Units”; (ii) 0 Class A Common Units, which units are referred to
herein as the “Co-Invest Common Units”; and (iii) 0 Class B
Preferred Units.  The Co-Invest Common
Units, together with the Class B Preferred Units, shall are referred to
herein as the “Co-Invest Units.”

 

(c)          On April 28, 2007, pursuant to a resolution of
the board of managers of Solera LLC, a three-to-one reverse split of the Class A
Common Units of Solera LLC was effected pursuant to which the number of Class A
Common Units held by Purchaser was divided by three and any resulting
fractional Unit was cancelled.

 

(d)         On May 10, 2007, pursuant to the Conversion, all
of the outstanding units of Solera LLC, including the Units, were converted
into shares of Common Stock.  Immediately
following such Conversion, Purchaser owned the following  Securities: 
(i) 48,684 shares of Common Stock, which shares shall be referred
to herein as the “Carried Shares” and (ii) no shares of Common
Stock, which shares shall be referred to herein as the “Co-Invest Shares.”  The Carried Shares and Co-Invest Shares shall
be referred to herein, collectively, as “Securities.”  As of May 10, the total number of
Carried Shares plus Co-Invest Shares was equal to 48,684 (such number, the “Total
Share Number”).

 

(e)          Immediately following the Conversion, the Investors
owned an aggregate number of shares of Common Stock equal to the Initial
Investor Amount.

 

(f)            Until released upon the occurrence of a Sale of the
Company as provided below, all certificates evidencing the Unvested Shares (as
defined below) shall be held by the Company for the benefit of Purchaser and
the other holder(s) of Unvested Shares. 
Upon the occurrence of a Sale of the Company, the Company will return all
certificates in its possession evidencing Securities to the record holders
thereof.

 

2

 

(g)         Purchaser represents and warrants to the Company that
this Agreement constitutes the legal, valid and binding obligation of
Purchaser, enforceable in accordance with its terms, and the execution,
delivery and performance of this Agreement by Purchaser does not and will not
conflict with, violate or cause a breach of any agreement, contract or
instrument to which Purchaser is a party or any judgment, order or decree to
which Purchaser is subject.

 

(h)         Purchaser acknowledges and agrees that no provision
contained in this Section 1 shall entitle Purchaser to serve as a
director of the Company or any of its Subsidiaries or affect the right of the
Investors to remove Purchaser as a director of the Company or any of its
Subsidiaries for any reason.

 

(i)             In accordance with the terms of each of the Original
Securities Purchase Agreement and the Restated Securities Purchase Agreement,
Purchaser has executed in blank ten security transfer powers (the “Security
Powers”) with respect to the Units acquired pursuant to such agreement and
has delivered such Security Powers to the Company.  Concurrently with the execution of this Agreement,
Purchaser shall execute in blank ten Security Powers in the form of Exhibit A
attached hereto with respect to the Unvested Shares and shall deliver such
Security Powers to the Company.  The
Security Powers shall authorize the Company to assign, transfer and deliver the
Unvested Shares to the appropriate acquiror thereof pursuant to Section 3
below and under no other circumstances.

 

(j)             Concurrently with the execution of this Agreement, if
Purchaser is lawfully married, Purchaser’s spouse shall execute the Consent in
the form of Exhibit B attached hereto.

 

(k)          On April 13, 2005, Purchaser became a party to
the Registration Agreement in the capacity of an Other Securityholder.

 

2.               Vesting of Carried Shares.

 

(a)          The Carried Shares shall be subject to vesting in the
manner specified in this Section 2.

 

(b)         Except as otherwise provided in this Section 2,
the Carried Shares shall become vested, in accordance with the following
schedule, if as of each such date Purchaser continues to serve as a director of
the Company and/or any of its Subsidiaries:

 

	
  Date

  	
   

  	
  Cumulative 

  Percentage of Carried

  Shares Vested

  	
   

  
	
  April 11,
  2006

  	
   

  	
  20.00

  	
  %

  
	
  June 30,
  2006

  	
   

  	
  25.00

  	
  %

  
	
  September 30,
  2006

  	
   

  	
  30.00

  	
  %

  
	
  December 31,
  2006

  	
   

  	
  35.00

  	
  %

  
	
  March 31,
  2007

  	
   

  	
  40.00

  	
  %

  
	
  June 30,
  2007

  	
   

  	
  45.00

  	
  %

  
	
  September 30,
  2007

  	
   

  	
  50.00

  	
  %

  
	
  December 31,
  2007

  	
   

  	
  55.00

  	
  %

  

 

3

 

	
  March 31,
  2008

  	
   

  	
  60.00

  	
  %

  
	
  June 30,
  2008

  	
   

  	
  65.00

  	
  %

  
	
  September 30,
  2008

  	
   

  	
  70.00

  	
  %

  
	
  December 31,
  2008

  	
   

  	
  75.00

  	
  %

  
	
  March 31,
  2009

  	
   

  	
  80.00

  	
  %

  
	
  June 30,
  2009

  	
   

  	
  85.00

  	
  %

  
	
  September 30,
  2009

  	
   

  	
  90.00

  	
  %

  
	
  December 31,
  2009

  	
   

  	
  95.00

  	
  %

  
	
  March 31,
  2010

  	
   

  	
  100.00

  	
  %

  

 

(c)          Upon the occurrence of a Sale of the Company, all
Carried Shares which have not yet become vested shall become vested as of the
date of consummation of the Sale of the Company, if, as of such date, Purchaser
has continuously served as a director of the Company and/or a director of any
of its Subsidiaries from the date of this Agreement through and including such
date.

 

(d)         Carried Shares that have become vested (“Vested
Carried Shares”) and the Co-Invest Shares are collectively referred to
herein as “Vested Shares.”  All
Carried Shares that have not vested are referred to herein as “Unvested
Shares.”

 

3.               Repurchase Option.

 

(a)          In the event of a Separation, the Unvested Shares
(whether held by Purchaser or one or more of Purchaser’s transferees, other
than the Company and the Investors) will be subject to repurchase, in each case
by the Company and the Investors pursuant to the terms and conditions set forth
in this Section 3 (the “Repurchase Option”).  The Company may assign its repurchase rights
set forth in this Section 3 to any Person.

 

(b)         In the event of a Separation, the purchase price for
each Unvested Share will be the lesser of (A) Purchaser’s Original Cost
for such share and (B) the Fair Market Value of such share as of the
delivery date of the Repurchase Notice or Supplemental Repurchase Notice, as
the case may be, in either case first delivered pursuant to Section 3(c).

 

(c)          In the event of a Separation, the Company (with the
approval of the Board) may elect to purchase all or any portion of the Unvested
Shares pursuant to this Section 3 by delivering written notice (the
“Repurchase Notice”) to the holder or holders of such securities within
six months and 10 days after the Separation. 
The Repurchase Notice will set forth the number of Unvested Shares to be
acquired from each holder, the aggregate consideration to be paid for such
shares and the time and place for the closing of the transaction.  Unvested Shares to be repurchased by the
Company shall first be satisfied to the extent possible from the Unvested
Shares held by Purchaser at the time of delivery of the Repurchase Notice.  If the number of Unvested Shares to be
repurchased by the Company then held by Purchaser is less than the total number
of Unvested Shares that the Company has elected to purchase, the Company shall
purchase the remaining Unvested Shares elected to be purchased from the other
holder(s) of Unvested Shares under this Agreement (i.e., Purchaser’s
Permitted Transferees), pro rata according to the number of Unvested Shares
held by such other holder(s) at the time of delivery of such Repurchase
Notice (determined as nearly as practicable to the nearest share).

 

4

 

(d)         If for any reason the Company does not elect to
purchase all of the Unvested Shares pursuant to the Repurchase Option, the
Investors shall be entitled to exercise the Repurchase Option for all or any
portion of the Unvested Shares that the Company has not elected to purchase
(the “Available Securities”).  As
soon as practicable after the Company has determined that there will be
Available Securities, but in any event within five months after the Separation,
the Company shall give written notice (the “Option Notice”) to the
Investors setting forth the number of Available Securities and the purchase
price for such Available Securities.  The
Investors may elect to purchase any or all of the Available Securities by
giving written notice to the Company within six months and 10 days after the
Separation.  If the Investors elect to
purchase an aggregate number of Available Securities that is greater than the
number of Available Securities, the Available Securities shall be allocated among
the Investors based upon the number of shares of Common Stock owned by each
Investor.  As soon as practicable, and in
any event within ten days, after the expiration of the six-month and ten-day
period set forth above, the Company shall notify each holder of Unvested Shares
as to the number of Unvested Shares being purchased from such holder by the
Investors (the “Supplemental Repurchase Notice”).  At the time the Company delivers the
Supplemental Repurchase Notice to the holder(s) of Unvested Shares, the
Company shall also deliver written notice to each Investor setting forth the
number of Unvested Shares such Investor is entitled to purchase, the aggregate
purchase price and the time and place of the closing of the transaction.

 

(e)          The closing of the purchase of the Unvested Shares
pursuant to the Repurchase Option shall take place on the date designated by
the Company in the Repurchase Notice or Supplemental Repurchase Notice, which
date shall not be more than one month nor less than five days after the
delivery of the later of either such notice to be delivered.  The Company will pay for the Unvested Shares
to be purchased by it pursuant to the Repurchase Option by first offsetting
amounts outstanding under any bona fide debts owed by Purchaser to the Company,
and will pay the remainder of the purchase price by, at its option, (A) a
check or wire transfer of funds, (B) the issuance of a subordinated
promissory note of the Company bearing interest at a rate equal to such rate as
may be determined by the Board (provided that such rate may not be less than
the prime rate (as published in The Wall Street Journal from time to
time)) and having such maturity provisions as the Company shall determine in
good faith or (C) any combination of (A) and (B) as the Board
may elect in its discretion; provided that, to the extent that the Company has
readily available cash resources in excess of its working capital and other
reasonable cash needs and without imposing any obligation on the Company to
raise financing to fund the repurchases or to materially impair its financial
liquidity or condition, the Company shall use reasonable efforts to pay the
purchase price for such Unvested Shares pursuant to the foregoing clause
(A).  Each Investor will pay for the
Unvested Shares purchased by it by a check or wire transfer of funds.  The Company and the Investors will be
entitled to receive customary representations and warranties from the sellers
regarding such sale and require that all sellers’ signatures be guaranteed.

 

(f)            Notwithstanding anything to the contrary contained in
this Agreement, all repurchases of Unvested Shares by the Company pursuant to
the Repurchase Option shall be subject to applicable restrictions contained in
the Delaware General Corporation Law or such other governing corporate law and
in the Company’s and its Subsidiaries’ debt and equity financing
agreements.  If any such restrictions
prohibit (i) the repurchase of Unvested Shares hereunder which the Company
is otherwise entitled or required to make or (ii) dividends or other 

 

5

 

transfers of funds from one or more Subsidiaries to
the Company to enable such repurchases, then the Company may make such
repurchases as soon as it is permitted to make repurchases or receive funds
from Subsidiaries under such restrictions.

 

(g)         Notwithstanding anything to the contrary contained in
this Agreement, if the Fair Market Value of Unvested Shares is finally
determined to be an amount at least 10% greater than the per share repurchase
price for such share of Unvested Shares in the Repurchase Notice or in the
Supplemental Repurchase Notice, each of the Company and the Investors shall
have the right to revoke its exercise of the Repurchase Option for all or any
portion of the Unvested Shares elected to be repurchased by it by delivering
notice of such revocation in writing to the holders of Unvested Shares during
the thirty-day period beginning on the date that the Company and/or the
Investors are given written notice that the Fair Market Value of a share of
Unvested Shares was finally determined to be an amount at least 10% greater
than the per share repurchase price for Unvested Shares set forth in the
Repurchase Notice or in the Supplemental Repurchase Notice.

 

(h)         The provisions of this Section 3 will
terminate upon the consummation of a Sale of the Company.

 

4.               Restrictions on Transfer of Securities.

 

(a)          Transfer of Securities.  The holders
of Securities shall not Transfer any interest in any Securities, except pursuant
to (i) the provisions of Section 3 hereof or (ii) the
provisions of Section 4(b) below.

 

(b)         Certain Permitted Transfers. 
The restrictions in this Section 4 will not apply with
respect to any Transfer of Securities made (i) pursuant to applicable laws
of descent and distribution or to such Person’s legal guardian in the case of
any mental incapacity or among such Person’s Family Group, or (ii) subject
to the restrictions on transfer set forth in the Registration Agreement
(including, without limitation, in Section 3 thereof) or any
agreement entered into pursuant thereto, of shares of Common Stock that are
Vested Shares, but in the case of this clause (ii) only an amount
of shares of Common Stock that are Vested Shares equal to the product of (A) the
Total Share Number and (B) the Cumulative Ratio (as of the date of such
Transfer pursuant to this clause (ii), after giving effect to any Public
Sale of Common Stock by the Investors on such date), less the sum of (X) the
aggregate number of shares of Securities transferred by Purchaser in Public
Sales prior to the date hereof and (Y) as of the date of such transfer,
the aggregate number of shares of Securities previously transferred by
Purchaser and Permitted Transferees after the date hereof pursuant to this
clause (ii); provided that any in-kind distributions of shares of Common
Stock by the Investors to their limited partners shall be deemed to be a Public
Sale for purposes of this Section 4(b)(ii); provided further
that the restrictions contained in this Section 4 will continue to
be applicable to the Securities after any Transfer of the type referred to in clause
(i) above and the transferees of such Securities must agree in writing
to be bound by the provisions of this Agreement.  Any transferee of Securities pursuant to a
Transfer in accordance with the provisions of clause (i) of this Section 4(b) is
herein referred to as a “Permitted Transferee.”  Upon the Transfer of Securities pursuant to
this Section 4(b), the transferring holder of Securities will deliver
a written notice (a “Transfer

 

6

 

Notice”) to the Company. 
In the case of a Transfer pursuant to clause (i) hereof, the
Transfer Notice will disclose in reasonable detail the identity of the
Permitted Transferee(s).

 

(c)          Termination of Restrictions. 
The restrictions set forth in this Section 4 will continue
with respect to each share of Securities until the earlier of (i) the date
on which such share of Securities has been transferred in a Public Sale
permitted by this Section 4, or (ii) the consummation of a
Sale of the Company.

 

5.               Additional Restrictions on Transfer of Securities.

 

(a)          Legend.  The
certificates representing the Securities will bear a legend in substantially
the following form:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE WERE
ORIGINALLY ISSUED AS OF MAY 10, 2007, HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY NOT BE SOLD
OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
ACT OR AN EXEMPTION FROM REGISTRATION THEREUNDER.  THE SECURITIES REPRESENTED BY THIS
CERTIFICATE ARE ALSO SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER, CERTAIN
REPURCHASE OPTIONS AND CERTAIN OTHER AGREEMENTS SET FORTH IN A SECOND AMENDED
AND RESTATED SECURITIES PURCHASE AGREEMENT AMONG THE COMPANY, THE PURCHASER OF
THE SECURITIES REPRESENTED BY THIS CERTIFICATE AND OTHER PARTIES, DATED AS OF JANUARY
28, 2008, AS AMENDED.  A COPY OF SUCH
AGREEMENT MAY BE OBTAINED BY THE HOLDER HEREOF AT THE COMPANY’S PRINCIPAL
PLACE OF BUSINESS WITHOUT CHARGE.”

 

(b)         Opinion of Counsel.  No holder of
Securities may Transfer any Securities (except pursuant to Section 3 or
4(b) of this Agreement or an effective registration statement under
the Securities Act) without first delivering to the Company a written notice
describing in reasonable detail the proposed Transfer, together with an opinion
of counsel (reasonably acceptable in form and substance to the Company) that
neither registration nor qualification under the Securities Act and applicable
state securities laws is required in connection with such transfer.  In addition, if the holder of the Securities
delivers to the Company an opinion of counsel that no subsequent Transfer of
such Securities shall require registration under the Securities Act, the
Company shall promptly upon such contemplated Transfer deliver new certificates
for such Securities that do not bear the Securities Act portion of the legend
set forth in Section 5(a). 
If the Company is not required to deliver new certificates for such
Securities not bearing such legend, the holder thereof shall not Transfer the
same until the prospective transferee has confirmed to the Company in writing
its agreement to be bound by the conditions contained in this Section 5.

 

7

 

GENERAL
PROVISIONS

 

6.               Confidential Information.

 

(a)          Obligation to Maintain Confidentiality. 
Purchaser acknowledges that the information, observations and data
(including trade secrets) of a confidential, proprietary or secret nature
obtained by her during the course of her performance under this Agreement
concerning the business or affairs of the Company, Solera, Inc. and their
respective Subsidiaries and Affiliates (“Confidential Information”) are
the property of the Company, Solera, Inc. or such Subsidiaries and
Affiliates, including information concerning acquisition opportunities in or
reasonably related to the Company’s and Solera, Inc.’s business or
industry of which Purchaser becomes aware during the period in which Purchaser
serves as a manager of the Company and/or a director of any of its Subsidiaries
(the “Service Period”).  Purchaser
agrees that she will not disclose to any unauthorized Person or use for her own
account any Confidential Information without the Board’s written consent,
unless and to the extent that the Confidential Information, (i) becomes
generally known to and available for use by the public other than as a result
of Purchaser’s acts or omissions to act, (ii) was known to Purchaser prior
to Purchaser’s service for the Company, Solera, Inc. or any of their
Subsidiaries and Affiliates, or (iii) is required to be disclosed pursuant
to any applicable law or court order. 
Purchaser shall deliver to the Company at a Separation, or at any other
time the Company may request, all memoranda, notes, plans, records, reports,
computer tapes, printouts and software and other documents and data (and copies
thereof) relating to the Confidential Information, Work Product (as defined
below) or the business of the Company, Solera, Inc. and their respective
Subsidiaries and Affiliates (including, without limitation, all acquisition
prospects, lists and contact information) which she may then possess or have
under her control.

 

(b)         Ownership of Property.  Purchaser
acknowledges that all discoveries, concepts, ideas, inventions, innovations,
improvements, developments, methods, processes, programs, designs, analyses,
drawings, reports, patent applications, copyrightable work and mask work (whether
or not including any confidential information) and all registrations or
applications related thereto, all other proprietary information and all similar
or related information (whether or not patentable) that relate to the Company’s,
Solera, Inc.’s or any of their respective Subsidiaries’ or Affiliates’
actual or anticipated business, research and development, or existing or future
products or services and that are conceived, developed, contributed to, made,
or reduced to practice by Purchaser (either solely or jointly with others)
while she serves as a manager of the Company and/or a director of any of its
Subsidiaries (including any of the foregoing that constitutes any proprietary
information or records) (“Work Product”) belong to the Company, Solera, Inc.
or such Subsidiary or Affiliate and Purchaser hereby assigns, and agrees to
assign, all of the above Work Product to the Company, Solera, Inc. or to
such Subsidiary or Affiliate.  Any
copyrightable work prepared in whole or in part by Purchaser in the course of
her work for any of the foregoing entities shall be deemed a “work made for
hire” under the copyright laws, and the Company, Solera, Inc. or such
Subsidiary or Affiliate shall own all rights therein.  To the extent that any such copyrightable
work is not a “work made for hire,” Purchaser hereby assigns and agrees to
assign to the Company, Solera, Inc. or such Subsidiary or Affiliate all
right, title, and interest, including without limitation, copyright in and to
such copyrightable work.  Purchaser shall
promptly disclose such Work Product and copyrightable work to the Board and
perform all actions reasonably requested by the Board (whether during or after
the 

 

8

 

Service Period) to establish and confirm the Company’s,
Solera, Inc.’s or such Subsidiary’s or Affiliate’s ownership (including,
without limitation, assignments, consents, powers of attorney, and other
instruments).  Purchaser understands,
however, that there is no obligation being imposed on her to assign to the
Company or any Subsidiary or Affiliate, any invention falling within the
definition of Work Product for which no equipment, supplies, facility, or trade
secret information of the Company or any of its Subsidiaries or Affiliates was
used and that was developed entirely on her own time, unless:  (i) such Work Product relates (A) to
the Company’s, or its Subsidiaries’ or Affiliates’ businesses or (B) to
their actual or demonstrably anticipated research or  development, or (ii) the Work Product
results from any work performed by her for them under this Agreement.  Purchaser has identified on the signature page to
this Agreement all Work Product that is or was owned by her or was written,
discovered, made, conceived or first reduced to practice by her alone or
jointly with another person prior to the date hereof.  If no such Work Product is listed, Purchaser
represents to the Company that she does not now nor has she ever owned, nor has
she made, any such Work Product.

 

7.               Restrictive Covenants.  Purchaser
acknowledges that in the course of her service for the Company and/or any of
its Subsidiaries she will become familiar with the Company’s, Solera, Inc.’s
and their respective Subsidiaries’ trade secrets and with other confidential
information concerning the Company, Solera, Inc. and such Subsidiaries and
that her services will be of special, unique and extraordinary value to the
Company, Solera, Inc. and such Subsidiaries.  Therefore, Purchaser agrees that:

 

(a)          Nonsolicitation.  During the
Service Period and for a period of two years thereafter, Purchaser shall not
directly or indirectly through another entity (i) induce or attempt to
induce any employee of the Company, Solera, Inc. or their respective
Subsidiaries to leave the employ of the Company, Solera, Inc. or such
Subsidiary, or in any way interfere with the relationship between the Company,
Solera, Inc. and any of their respective Subsidiaries and any employee
thereof (which restriction shall not preclude placing advertisements in trade
publications or similar general solicitations for employment, so long as such
advertisements or solicitations do not target any employee of the Company,
Solera, Inc. or their respective Subsidiaries), (ii) hire any person
who was an employee of the Company, Solera, Inc. or any of their
respective Subsidiaries within 180 days after such person ceased to be an
employee of the Company, Solera, Inc. or any of their respective
Subsidiaries, (iii) induce or attempt to induce any customer, supplier,
licensee or other business relation of the Company, Solera, Inc. or any of
their respective Subsidiaries to cease doing business with the Company, Solera, Inc.
or such Subsidiary or in any way interfere with the relationship between any
such customer, supplier, licensee or business relation and the Company, Solera, Inc.
and any Subsidiary, in each case, if any such inducement, attempted inducement
or interference would involve, use or rely upon any of the Company’s, Solera, Inc.’s
or any of their respective Subsidiaries’ trade secrets or other confidential
information or (iv) directly or indirectly acquire or attempt to acquire
an interest in any business relating to the business of the Company, Solera, Inc.
or any of their respective Subsidiaries and with which the Company, Solera, Inc.
and any of their respective Subsidiaries has engaged in discussions regarding
the acquisition of an interest in such business or has requested and received
information relating to the acquisition of such business by the Company, Solera, Inc.
or any of their respective Subsidiaries in the two year period immediately
preceding a Separation.

 

9

 

(b)         Enforcement.  If, at the
time of enforcement of Section 6 or this Section 7, a
court holds that the restrictions stated herein are unreasonable under
circumstances then existing, the parties hereto agree that the maximum
duration, scope or geographical area reasonable under such circumstances shall
be substituted for the stated period, scope or area and that the court shall be
allowed to revise the restrictions contained herein to cover the maximum
duration, scope and area permitted by law. 
Because Purchaser’s services are unique and because Purchaser has access
to confidential information, the parties hereto agree that money damages would
be an inadequate remedy for any breach of this Agreement.  Therefore, in the event a breach or
threatened breach of this Agreement, the Company, Solera, Inc., their
respective Subsidiaries or their successors or assigns may, in addition to
other rights and remedies existing in their favor, apply to any court of
competent jurisdiction for specific performance and/or injunctive or other
relief in order to enforce, or prevent any violations of, the provisions hereof
(without posting a bond or other security).

 

(c)          Additional Acknowledgments. 
Purchaser acknowledges that the provisions of this Section 7
are in consideration of:  (i) her
service for the Company and/or any of its Subsidiaries, (ii) the issuance
of the Purchaser Securities by the Company and (iii) additional good and
valuable consideration as set forth in this Agreement.  In addition, Purchaser agrees and
acknowledges that the restrictions contained in Section 6 and this Section 7
do not preclude Purchaser from earning a livelihood, nor do they unreasonably
impose limitations on Purchaser’s ability to earn a living.  In addition, Purchaser acknowledges (i) that
the business of the Company, Solera, Inc. and their respective
Subsidiaries will be conducted throughout the United States and other
jurisdictions where the Company, Solera, Inc. or their respective
Subsidiaries conduct business during the Service Period and (ii) notwithstanding
the state of organization or principal office of the Company, Solera, Inc.
or any of their respective Subsidiaries, or any of their respective executives
or employees (including Purchaser), it is expected that the Company and Solera, Inc.
will have business activities and have valuable business relationships within
its industry throughout the United States and other jurisdictions where the
Company, Solera, Inc. or their respective Subsidiaries conduct business
during the Service Period.  Purchaser
agrees and acknowledges that the potential harm to the Company and Solera, Inc.
of the non-enforcement of Section 6 and this Section 7
outweighs any potential harm to Purchaser of its enforcement by injunction or
otherwise.  Purchaser acknowledges that
she has carefully read this Agreement and has given careful consideration to
the restraints imposed upon Purchaser by this Agreement, and is in full accord
as to their necessity for the reasonable and proper protection of confidential
and proprietary information of the Company and Solera, Inc. now existing
or to be developed in the future. 
Purchaser expressly acknowledges and agrees that each and every
restraint imposed by this Agreement is reasonable with respect to subject
matter, time period and geographical area.

 

8.               Definitions.

 

“Affiliate” means, (i) with respect to any
Person, any Person that controls, is controlled by or is under common control
with such Person or an Affiliate of such Person, and (ii) with respect to
any Investor, any general or limited partner of such Investor, any employee or
owner of any such partner, or any other Person controlling, controlled by or
under common control with such Investor; it being understood and agreed that
GTCR I and its Affiliates shall for all purposes hereunder shall be Affiliates
of GTCR II.

 

10

 

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

 

“Class A Common Units” means the Class A
Common Units of Solera LLC having the rights and obligations set forth in the
LLC Agreement.

 

“Class B Preferred Units” means the Class B
Preferred Units of Solera LLC having the rights and obligations set forth in
the LLC Agreement.

 

“Cumulative Ratio”
means, as of a given date, the quotient of (a) the aggregate number of
shares of Common Stock sold by the Investors in Public Sales between May 10,
2007 and such date (including any Public Sales on such date), divided by (b) the
Initial Investor Amount.

 

“Fair Market Value” of each share of Securities
means the average of the closing prices of the sales of such Securities on all
securities exchanges on which such Securities may at the time be listed, or, if
there have been no sales on any such exchange on any day, the average of the
highest bid and lowest asked prices on all such exchanges at the end of such
day, or, if on any day such Securities are not so listed, the average of the
representative bid and asked prices quoted in the NASDAQ System as of 4:00 P.M.,
New York time, or, if on any day such Securities are not quoted in the NASDAQ
System, the average of the highest bid and lowest asked prices on such day in
the domestic over-the-counter market as reported by the National Quotation
Bureau Incorporated, or any similar successor organization, in each such case
averaged over a period of 21 days consisting of the day as of which the Fair
Market Value is being determined and the 20 consecutive business days prior to
such day.  If at any time such Securities
are not listed on any securities exchange or quoted in the NASDAQ System or the
over-the-counter market, the Fair Market Value will be the fair value of such Securities
as determined in good faith by the Board. 
If Purchaser reasonably disagrees with such determination, Purchaser
shall deliver to the Board a written notice of objection within ten days after
delivery of the Repurchase Notice (or if no Repurchase Notice is delivered,
then within ten days after delivery of the Supplemental Repurchase
Notice).  Upon receipt of Purchaser’s
written notice of objection, the Board and Purchaser will negotiate in good
faith to agree on such Fair Market Value. 
If such agreement is not reached within 30 days after the delivery of
the Repurchase Notice (or if no Repurchase Notice is delivered, then within 30
days after the delivery of the Supplemental Repurchase Notice), Fair Market
Value shall be determined by an appraiser jointly selected by the Board and
Purchaser, which appraiser shall submit to the Board and Purchaser a report
within 30 days of its engagement setting forth such determination.  If the parties are unable to agree on an
appraiser within 45 days after delivery of the Repurchase Notice or the
Supplemental Repurchase Notice, within seven days, each party shall submit the
names of four nationally recognized firms that are engaged in the business of
valuing non-public securities, and each party shall be entitled to strike two
names from the other party’s list of firms, and the appraiser shall be selected
by lot from the remaining four appraisal firms. 
The expenses of such appraiser shall be borne by Purchaser unless the
appraiser’s valuation is more than 10% greater than the amount determined by
the Board, in which case the expenses of the appraiser shall be borne by the
Company.  In making such appraisal, the
appraiser shall determine the fair value of the Company as a whole without
discount for either lack of control or contractual restrictions on transfer
applicable to the Securities.  The
determination of such appraiser as to Fair Market Value shall be final and
binding upon all parties.

 

11

 

“Family Group” means a Person’s spouse and
descendants (whether natural or adopted), and any trust, family limited
partnership, limited liability company or other entity wholly owned, directly
or indirectly, by such Person or such Person’s spouse and/or descendants that
is and remains solely for the benefit of such Person and/or such Person’s
spouse and/or descendants and any retirement plan for such Person.

 

“GTCR I” means GTCR Golder Rauner, L.L.C., a
Delaware limited liability company.

 

“GTCR II” means GTCR Golder Rauner II, L.L.C.,
a Delaware limited liability company.

 

“GTCR Co-Invest II” means GTCR Co-Invest II,
L.P., a Delaware limited partnership.

 

“GTCR Fund VIII” means GTCR Fund VIII, L.P., a
Delaware limited partnership.

 

“GTCR Fund VIII/B” means GTCR Fund VIII/B,
L.P., a Delaware limited partnership.

 

“Investors” means GTCR Fund VIII, GTCR Fund
VIII/B, GTCR Co-Invest II, and any other investment fund managed by GTCR I or
GTCR II that at any given time owns securities of the Company.

 

“LLC Agreement” means the Limited Liability
Company Agreement of Solera LLC, dated as of April 1, 2005, as amended
from time to time pursuant to its terms.

 

“Original Cost” means $0.30 per share (as
proportionately adjusted for all stock splits, stock dividends and other
recapitalizations subsequent to the date hereof).

 

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

 

“Public Offering” means the sale in an
underwritten public offering registered under the Securities Act of equity
securities of the Company.

 

“Public Sale” means (i) any sale pursuant
to a registered public offering under the Securities Act or (ii) any sale
to the public pursuant to Rule 144 promulgated under the Securities Act
effected through a broker, dealer or market maker (other than pursuant to Rule 144(k) prior
to a Public Offering).

 

“Purchase Agreement” means the Second Amended
and Restated Securities Purchase Agreement, dated as of May 10, 2007,
between the Company and the Investors, as amended from time to time pursuant to
its terms.

 

12

 

“Registration Agreement” means the Registration
Rights Agreement, dated as of April 1, 2005, among Solera LLC and certain
of its securityholders, as amended from time to time pursuant to its terms.

 

“Sale of the Company” means any transaction or
series of related transactions pursuant to which any Person or group of related
Persons other than, except for purposes of Section 2(c), the
Investors or their Affiliates in the aggregate acquire(s) (i) equity
securities of the Company possessing the voting power (other than voting rights
accruing only in the event of a default, breach or event of noncompliance) to
elect a majority of the Board (whether by merger, consolidation,
reorganization, combination, sale or transfer of the Company’s equity,
securityholder or voting agreement, proxy, power of attorney or otherwise) or (ii) all
or substantially all of the Company’s assets determined on a consolidated
basis; provided that a Public Offering shall not constitute a Sale of
the Company.

 

“Securities” will continue to be Securities in
the hands of any holder other than Purchaser (except for the Company and the
Investors and except for transferees in a Public Sale), and except as otherwise
provided herein, each such other holder of Securities will succeed to all
rights and obligations attributable to Purchaser as a holder of Securities
hereunder.  Securities will also include
equity of the Company issued with respect to Securities (i) by way of a
stock split, stock dividend, conversion, or other recapitalization or (ii) by
way of reorganization or recapitalization of the Company.  Notwithstanding the foregoing, all Unvested
Shares shall remain Unvested Shares after any Transfer thereof.

 

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

 

“Separation” means Purchaser ceasing to serve
as a manager of the Company or a director of any of its Subsidiaries for any
reason.

 

“Solera, Inc.” means Solera, Inc., a
Delaware corporation.

 

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

 

13

 

“Transfer” means to sell, transfer, assign,
pledge or otherwise dispose of (whether with or without consideration and
whether voluntarily or involuntarily or by operation of law).

 

9.               Notices.  All notices, demands or other communications
to be given or delivered under or by reason of the provisions of this Agreement
shall be in writing and shall be deemed to have been given when (i) delivered
personally to the recipient, (ii) sent to the recipient by reputable
express courier service (charges prepaid), (iii) mailed to the recipient
by certified or registered mail, return receipt requested and postage prepaid,
or (iv) telecopied to the recipient (with hard copy sent to the recipient
by reputable overnight courier service (charges prepaid) that same day) if
telecopied before 5:00 p.m. Chicago, Illinois time on a business day, and
otherwise on the next business day.  Such
notices, demands and other communications shall be sent to the parties at the
addresses indicated below:

 

	
   

  	
  If to Solera, Inc.:

  
	
   

  	
   

  
	
   

  	
  Solera, Inc.

  
	
   

  	
  15030 Avenue of Science, Suite 200

  
	
   

  	
  San Diego, CA 92128

  
	
   

  	
  Attention:

  	
  Chief Executive Officer

  
	
   

  	
  Facsimile:

  	
  (858) 812-3011

  
	
   

  	
   

  
	
   

  	
  with copies to:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GTCR Fund VIII,
  L.P., GTCR Fund VIII/B, L.P., and

  	
   

  
	
   

  	
  GTCR Co-Invest
  II, L.P.

  	
   

  	
   

  
	
   

  	
  c/o GTCR Golder
  Rauner II, L.L.C.

  	
   

  	
   

  
	
   

  	
  6100 Sears Tower

  	
   

  	
   

  
	
   

  	
  Chicago,
  Illinois 60606-6402

  	
   

  
	
   

  	
  Attention:

  	
  Philip A.
  Canfield

  
	
   

  	
   

  	
  Craig A. Bondy

  
	
   

  	
  Facsimile: (312)
  382-2201

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Kirkland &
  Ellis LLP

  	
   

  
	
   

  	
  200 East
  Randolph Drive

  
	
   

  	
  Chicago,
  Illinois 60601

  	
   

  
	
   

  	
  Attention:  

  	
  Stephen L. Ritchie,
  P.C.

  
	
   

  	
   

  	
  Mark A. Fennell

  
	
   

  	
  Facsimile: (312)
  861-2200

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  If to the
  Company:

  
	
   

  	
   

  
	
   

  	
  Solera Holdings, Inc.

  
	
   

  	
  15030 Avenue of
  Science, Suite 200

  
	
   

  	
  San Diego, CA
  92128

  
	
   

  	
  Attention:

  	
  Chief Executive
  Officer

  
	
   

  	
  Facsimile:

  	
  (858) 812-3011

  
										

 

14

 

	
   

  	
  with copies to:

  
	
   

  	
   

  
	
   

  	
  GTCR Golder Rauner II, L.L.C.

  
	
   

  	
  6100 Sears Tower

  
	
   

  	
  Chicago, Illinois 
  60606-6402

  
	
   

  	
  Attention:

  	
  Philip A. Canfield

  
	
   

  	
   

  	
  Craig A. Bondy

  
	
   

  	
  Facsimile: (312) 382-2201

  
	
   

  	
   

  
	
   

  	
  and

  
	
   

  	
   

  
	
   

  	
  Kirkland & Ellis LLP

  
	
   

  	
  200 East Randolph Drive

  
	
   

  	
  Chicago, Illinois 
  60601

  
	
   

  	
  Attention:

  	
  Stephen L. Ritchie, P.C.

  
	
   

  	
   

  	
  Mark A. Fennell

  
	
   

  	
  Facsimile: (312) 861-2200

  
	
   

  	
   

  
	
   

  	
  If to Purchaser:

  
	
   

  	
   

  
	
   

  	
  Roxani Gillespie

  
	
   

  	
  2450 Hyde Street

  
	
   

  	
  San Francisco, CA 
  94109

  
	
   

  	
  Facsimile: 
  (415) 434-2533

  
	
   

  	
   

  
	
   

  	
  If to the Investors:

  
	
   

  	
   

  
	
   

  	
  GTCR Golder Rauner II, L.L.C.

  
	
   

  	
  6100 Sears Tower

  
	
   

  	
  Chicago, Illinois 
  60606-6402

  
	
   

  	
  Attention:

  	
  Philip A. Canfield

  
	
   

  	
   

  	
  Craig A. Bondy

  
	
   

  	
  Facsimile: (312) 382-2201

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Kirkland & Ellis LLP

  
	
   

  	
  200 East Randolph Drive

  
	
   

  	
  Chicago, Illinois 
  60601

  
	
   

  	
  Attention:

  	
  Stephen L. Ritchie, P.C.

  
	
   

  	
   

  	
  Mark A. Fennell

  
	
   

  	
  Facsimile: (312) 861-2200

  
				

 

or such other address or
to the attention of such other Person as the recipient party shall have
specified by prior written notice to the sending party.

 

15

 

10.         General Provisions.

 

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

 

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

 

(c)          Complete Agreement.  The Restated Securities Purchase Agreement is
amended, restated and superseded by this Agreement in its entirety; provided
that, notwithstanding the foregoing or anything else to the contrary in this
Agreement, nothing herein shall relieve any party from any liability for any
breach prior to the date hereof of the Restated Securities Purchase Agreement
or any breach prior to April 13, 2006 of the Original Securities Purchase
Agreement, and any provision so breached shall not be superseded by this
Agreement for purposes of actions taken in connection with such breach and
liabilities related thereto and the rights of the parties hereto under Section 1(e) of
each of the Original Securities Purchase Agreement and the Restated Securities
Purchase Agreement shall survive this amendment and restatement.  This Agreement and those documents expressly
referred to herein embody the complete agreement and understanding among the
parties and supersede and preempt any prior understandings, agreements or
representations by or among the parties, written or oral, which may have
related to the subject matter hereof in any way.

 

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

 

(e)          Counterparts.  This Agreement may be executed in separate
counterparts (including by means of facsimile), each of which is deemed to be
an original and all of which taken together constitute one and the same
agreement.

 

(f)            Successors and
Assigns.  Except as otherwise
provided herein, this Agreement shall bind and inure to the benefit of and be
enforceable by Purchaser, the Company, the Investors and their respective
successors and assigns (including subsequent holders of Securities); provided
that the rights and obligations of Purchaser under this Agreement shall not be
assignable except in connection with a permitted transfer of Securities
hereunder.

 

(g)         Choice of Law.  The law of the State of Delaware will govern
all questions concerning the relative rights of the Company and its
securityholders.  All other questions
concerning the construction, validity and interpretation of this Agreement and
the exhibits hereto will be governed by and construed in accordance with the
internal laws of the State of Delaware, 

 

16

 

without giving effect to any choice of law or conflict of law provision
or rule (whether of the State of Delaware or any other jurisdiction) that
would cause the application of the laws of any jurisdiction other than the
State of Delaware.

 

(h)         MUTUAL WAIVER OF JURY
TRIAL.  BECAUSE DISPUTES ARISING IN CONNECTION WITH
COMPLEX TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN
EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL
LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT THEIR
DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS.  THEREFORE, TO ACHIEVE THE BEST COMBINATION OF
THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION, EACH PARTY TO THIS
AGREEMENT HEREBY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT, OR
PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE BETWEEN OR AMONG ANY OF THE PARTIES
HERETO, WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE, ARISING OUT OF,
CONNECTED WITH, RELATED OR INCIDENTAL TO THIS AGREEMENT, THE TRANSACTIONS
CONTEMPLATED HEREBY AND/OR THE RELATIONSHIP ESTABLISHED AMONG THE PARTIES
HEREUNDER.

 

(i)             Purchaser’s
Cooperation.  During the Service
Period and thereafter, Purchaser shall cooperate with the Company, Solera, Inc.
and their respective Subsidiaries and Affiliates in any disputes  with third parties, internal investigation
or administrative, regulatory or judicial proceeding as reasonably requested by
the Company (including, without limitation, Purchaser being available to the
Company upon reasonable notice for interviews and factual investigations,
appearing at the Company’s request to give testimony without requiring service
of a subpoena or other legal process, volunteering to the Company all pertinent
information and turning over to the Company all relevant documents which are or
may come into Purchaser’s possession, all at times and on schedules that are
reasonably consistent with Purchaser’s other permitted activities and
commitments). In the event the Company requires Purchaser’s cooperation in
accordance with this paragraph during the Service Period, the Company shall
reimburse Purchaser solely for reasonable travel expenses (including lodging
and meals, upon submission of receipts). 
In the event the Company requires Purchaser’s cooperation in accordance
with this paragraph after the Service Period, the Company shall reimburse
Purchaser for reasonable travel expenses (including lodging and meals, upon
submission of receipts) and compensate Purchaser at a reasonable rate for such
cooperation, as determined by mutual agreement of the Company and Purchaser.

 

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

 

17

 

(k)          Amendment and Waiver.  The provisions of this Agreement may be
amended and waived only with the prior written consent of the Company,
Purchaser and the Majority Holders (as defined in the Purchase Agreement).

 

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

 

(m)       Indemnification and
Reimbursement of Payments on Behalf of Purchaser.  The Company and its Subsidiaries shall be
entitled to deduct or withhold from any amounts owing from the Company or any
of its Subsidiaries to Purchaser any federal, state, local or foreign
withholding taxes, excise taxes, or employment taxes (“Taxes”) imposed
with respect to Purchaser’s compensation or other payments from the Company or
its Subsidiaries or Purchaser’s ownership interest in the Company, including,
without limitation, wages, bonuses, dividends, the receipt or exercise of
equity options and/or the receipt or vesting of restricted equity.  In the event the Company or its Subsidiaries
do not make such deductions or withholdings, Purchaser shall indemnify the
Company and its Subsidiaries for any amounts paid with respect to any such
Taxes, together with any interest, penalties and related expenses thereto.

 

(n)         Termination.  This Agreement shall survive a Separation and
shall remain in full force and effect after such Separation.

 

(o)         Adjustments of Numbers.  All numbers set forth herein that refer to
prices or amounts will be appropriately adjusted to reflect stock splits, stock
dividends, combinations of shares and other recapitalizations affecting the
subject class of equity that occur after the date hereof.

 

(p)         Deemed Transfer of
Securities.  If the Company (and/or
the Investors and/or any other Person acquiring securities) shall make
available, at the time and place and in the amount and form provided in this
Agreement, the consideration for the Securities to be repurchased in accordance
with the provisions of this Agreement, then from and after such time, the
Person from whom such shares are to be repurchased shall no longer have any
rights as a holder of such shares (other than the right to receive payment of
such consideration in accordance with this Agreement), and such shares shall be
deemed purchased in accordance with the applicable provisions hereof and the
Company (and/or the Investors and/or any other Person acquiring securities)
shall be deemed the owner and holder of such shares, whether or not the certificates
therefor have been delivered as required by this Agreement.

 

(q)         No Pledge or Security
Interest.  The purpose of the Company’s
retention of Purchaser’s certificates and executed security powers is solely to
facilitate the provisions set forth in Section 3 herein and does
not by itself constitute a pledge by Purchaser of, or the granting of a
security interest in, the underlying equity.

 

(r)            Rights Granted to
GTCR and its Affiliates.  Any rights
granted to GTCR I, GTCR II or their Affiliates hereunder may also be exercised
(in whole or in part) by their designees.

 

18

 

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

 

(t)            Deemed Senior
Management Agreement. 
Notwithstanding anything in the Purchase Agreement or the Registration
Agreement to the contrary, this Agreement shall be deemed to be a “Senior
Management Agreement” for the purposes of such agreements.

 

*     *    
*     *     *

 

19

 

IN WITNESS WHEREOF, the parties hereto have executed
this Second Amended and Restated Securities Purchase Agreement on the date
first above written.

 

 

	
   

  	
   

  	
  SOLERA
  HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tony Aquila

  
	
   

  	
  Name:

  	
  Tony Aquila

  
	
   

  	
  Its:

  	
  Chief Executive
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Roxani Gillespie

  
	
   

  	
  ROXANI
  GILLESPIE

  

 

Signature Page to Second
Amended and Restated Securities Purchase Agreement of Roxani Gillespie

 

20

 

Agreed and
Accepted:

THE INVESTORS:

 

GTCR FUND VIII,
L.P.

 

	
  By:

  	
  GTCR Partners VIII,
  L.P.

  
	
  Its:

  	
  General Partner

  
	
   

  	
   

  
	
  By:

  	
  GTCR Golder Rauner II,
  L.L.C.

  
	
  Its:

  	
  General Partner

  
	
   

  	
   

  
	
  By:

  	
  /s/ Philip A. Canfield

  	
   

  
	
  Name:

  	
  Philip A. Canfield

  
	
  Its:

  	
  Principal

  
	
   

  	
   

  
	
   

  	
   

  
	
  GTCR FUND VIII/B, L.P.

  
	
   

  	
   

  
	
  By:

  	
  GTCR Partners VIII,
  L.P.

  
	
  Its:

  	
  General Partner

  
	
   

  	
   

  
	
  By:

  	
  GTCR Golder Rauner II,
  L.L.C.

  
	
  Its:

  	
  General Partner

  
	
   

  	
   

  
	
  By:

  	
  /s/ Philip A. Canfield

  	
   

  
	
  Name:

  	
  Philip A. Canfield

  
	
  Its:

  	
  Principal

  
	
   

  	
   

  
	
   

  	
   

  
	
  GTCR CO-INVEST II, L.P.

  
	
   

  	
   

  
	
  By:

  	
  GTCR Golder Rauner II,
  L.L.C.

  
	
  Its:

  	
  General Partner

  
	
   

  	
   

  
	
  By:

  	
  /s/ Philip A. Canfield

  	
   

  
	
  Name:

  	
  Philip A. Canfield

  
	
  Its:

  	
  Principal

  
				

 

Signature Page to Second
Amended and Restated Securities Purchase Agreement of Roxani Gillespie

 

21

 

EXHIBIT A

 

ASSIGNMENT SEPARATE FROM
CERTIFICATE

 

FOR VALUE RECEIVED, Roxani Gillespie does
hereby sell, assign and transfer unto
                              ,
a                                   ,
                
shares of common stock, par value $0.01 per share, of Solera Holdings, Inc.,
a Delaware corporation (the “Company”), standing in the undersigned’s
name on the books of the Company represented by Certificate Nos.
                                  
herewith and does hereby irrevocably constitute and appoint each officer of the
Company (acting alone or with one or more other such officers) as attorney to
transfer said securities on the books of the Company with full power of
substitution in the premises.  THIS
ASSIGNMENT MAY ONLY BE USED AS AUTHORIZED BY THAT CERTAIN SECOND AMENDED
AND RESTATED SECURITIES PURCHASE AGREEMENT BY AND BETWEEN THE COMPANY AND THE
UNDERSIGNED DATED AS OF JANUARY 28, 2008, AS AMENDED.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Roxani Gillespie

  

 

 

EXHIBIT B

 

SPOUSAL
CONSENT

 

The undersigned spouse of Purchaser hereby
acknowledges that I have read the foregoing Second Amended and Restated
Securities Purchase Agreement, dated as of January 28, 2008, and the
Registration Agreement referred to therein and that I understand their
contents.  I am aware that the foregoing
Second Amended and Restated Securities Purchase Agreement provides for the sale
or repurchase of my spouse’s Securities under certain circumstances and/or
imposes other restrictions on such securities (including, without limitation,
restrictions on transfer).  I agree that
my spouse’s interest in these securities is subject to these restrictions and
any interest that I may have in such securities shall be irrevocably bound by
these agreements and further, that my community property interest, if any,
shall be similarly bound by these agreements.

 

 

	
   

  	
   

  	
   

  	
  Date:
  January     , 2008

  
	
   

  	
   

  	
   

  
	
   

  	
  Spouse’s Name:

  	
   

  	
   

  
						

 

 

	
   

  	
   

  	
   

  	
  Date:
  January     , 2008

  
	
   

  	
   

  	
   

  
	
   

  	
  Witness’ Name:

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