Document:

Exhibit 4.2

 

REGISTRATION
RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS AGREEMENT
(this “Agreement”) is made as of April 1, 2005, by and among (i) Solera
Holdings, LLC, a Delaware limited liability company (the “LLC”), (ii)
GTCR Fund VIII, L.P., a Delaware limited partnership (“Fund VIII”), GTCR
Fund VIII/B, L.P., a Delaware limited partnership (“Fund VIII/B”), GTCR
Co-Invest II, L.P., a Delaware limited partnership (“GTCR Co-Invest”),
and any investment fund managed by GTCR Golder Rauner, L.L.C., a Delaware limited
liability company (“GTCR I”), or GTCR Golder Rauner II, L.L.C., a
Delaware limited liability company (“GTCR II”), that at any time
executes a counterpart of this Agreement or otherwise agrees to be bound by
this Agreement (each, an “Investor” and collectively, the “Investors”),
(iii) Tony Aquila and any other executive employee of the LLC or its
Subsidiaries who, at any time, acquires securities of the LLC in accordance
with Section 8 hereof and executes a counterpart of this Agreement or
otherwise agrees to be bound by this Agreement (each, an “Executive” and
collectively, the “Executives”), and (iv) each of the other entities and
individuals set forth from time to time on the attached “Schedule of Holders”
under the heading “Other Securityholders” who, at any time, acquires securities
of the LLC in accordance with Section 8 hereof and executes a
counterpart of this Agreement or otherwise agrees to be bound by this Agreement
(the “Other Securityholders”). The Investors, the Executives and the
Other Securityholders are collectively referred to herein as the “Securityholders”.

 

The LLC and the Investors are parties to a Unit
Purchase Agreement of even date herewith (the “Purchase Agreement”). In
order to induce the Investors to enter into the Purchase Agreement, the LLC has
agreed to provide the registration rights set forth in this Agreement. The
execution and delivery of this Agreement is a condition to the Initial Closing
under the Purchase Agreement. Unless otherwise provided in this Agreement,
capitalized terms used herein shall have the meanings set forth in Section
10 hereof.

 

The parties hereto agree as follows:

 

1.             Demand
Registrations.

 

(a)           Requests for
Registration. The Securityholders contemplate the organization of a
corporation and reorganization or recapitalization of the LLC pursuant to Section
15.7 of the LLC Agreement. The corporate successor to the LLC shall be
referred to herein as the “Company.” 
At any time and from time to time after the organization of the Company,
the holders of a majority of the Investor Registrable Securities may request
registration under the Securities Act of all or any portion of their
Registrable Securities on Form S-1 or any similar long-form registration (“Long-Form
Registrations”), or on Form S-2 or S-3 (including pursuant to Rule 415
under the Securities Act) or any similar short-form registration (“Short-Form
Registrations”), if available. All registrations requested pursuant to this
Section 1(a) are referred to herein as “Demand Registrations.”  Each request for a Demand Registration shall
specify the approximate number of Registrable Securities requested to be
registered and the anticipated per share or per unit price range for such
offering. Within ten days after receipt of any such request, the Company shall
give written notice of such requested registration to all other holders of
Registrable Securities and shall include in such registration all Registrable
Securities with respect to which the Company has received written requests for
inclusion therein 

 

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within 15 days after the receipt of the Company’s notice (the “Included
Investor Registrable Securities”).

 

(b)           Investor Long-Form
Registrations. The holders of Investor Registrable Securities shall be
entitled to request an unlimited number of Long-Form Registrations in which the
Company shall pay all Registration Expenses (as defined in Section 5). All
Long-Form Registrations shall be underwritten registrations.

 

(c)           Investor Short-Form
Registrations. In addition to the Long-Form Registrations provided pursuant
to Section 1(b), the holders of Investor Registrable Securities shall be
entitled to request an unlimited number of Short-Form Registrations in which
the Company shall pay all Registration Expenses. Demand Registrations shall be
Short-Form Registrations whenever the Company is permitted to use any
applicable short form. After the Company has become subject to the reporting
requirements of the Securities Exchange Act, the Company shall use commercially
reasonable efforts to make Short-Form Registrations on Form S-3 available for
the sale of Registrable Securities. If the Company, pursuant to the request of
the holder(s) of a majority of Investor Registrable Securities, is qualified to
and has filed with the Securities Exchange Commission a registration statement
under the Securities Act on Form S-3 pursuant to Rule 415 under the Securities
Act (the “Required Registration”), then the Company shall use
commercially reasonable efforts to cause the Required Registration to be
declared effective under the Securities Act as soon as practicable after
filing, and, once effective, the Company shall cause such Required Registration
to remain effective for a period ending on the earlier of (i) the date on which
all Included Investor Registrable Securities have been sold pursuant to the
Required Registration, or (ii) the date as of which the holder(s) of the
Included Investor Registrable Securities (assuming such holder(s) are
affiliates of the Company) are able to sell all of the Investor Registrable
Securities then held by them within a ninety-day period in compliance with Rule
144 under the Securities Act.

 

(d)           Priority on Demand
Registrations. The Company shall not include in any Demand Registration any
securities that are not Registrable Securities without the prior written
consent of the holders of a majority of the Investor Registrable Securities
included in such registration. If a Demand Registration is an underwritten
offering and the managing underwriters advise the Company in writing that, in
their opinion, the number of Registrable Securities and, if permitted
hereunder, other securities requested to be included in such offering exceeds
the number of Registrable Securities and other securities, if any, that can be
sold in an orderly manner in such offering within a price range acceptable to
the holders of a majority of the Investor Registrable Securities to be included
in such registration, then the Company shall include in such registration,
prior to the inclusion of any securities that are not Registrable Securities,
the number of Registrable Securities requested to be included that, in the
opinion of such underwriters, can be sold in an orderly manner within the price
range of such offering, pro rata among the respective holders thereof on the
basis of the amount of Registrable Securities owned by each such holder.

 

(e)           Restrictions on
Long-Form Registrations. The Company shall not be obligated to effect any
Long-Form Registration within 90 days after the effective date of a previous
Long-Form Registration or a previous registration in which the holders of
Registrable Securities were given piggyback rights pursuant to Section 2
and in which there was no 

 

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reduction in the number of Registrable Securities requested to be
included. The Company may postpone for up to 180 days the filing or the
effectiveness of a registration statement for a Demand Registration if the
Company and the holders of a majority of the Investor Registrable Securities
agree that such Demand Registration would reasonably be expected to have a
material adverse effect on any proposal or plan by the Company or any of its
Subsidiaries to acquire financing, engage in any acquisition of assets (other
than in the ordinary course of business), or engage in any merger,
consolidation, tender offer, reorganization, or similar transaction; provided
that, in such event, the holders of Investor Registrable Securities initially
requesting such Demand Registration shall be entitled to withdraw such request
and the Company shall pay all Registration Expenses in connection with such
registration. The Company may delay a Demand Registration hereunder only once
in any twelve-month period.

 

(f)            Selection of Underwriters.
The holders of a majority of the Investor Registrable Securities included in
any Demand Registration shall have the right to select the investment banker(s)
and manager(s) to administer the offering.

 

(g)           Other Registration
Rights. Except as provided in this Agreement, the Company shall not grant
to any Persons the right to request the Company to register any equity
securities of the Company, or any securities, options, or rights convertible or
exchangeable into or exercisable for such securities, without the prior written
consent of the holders of a majority of the Investor Registrable Securities.

 

(h)           Obligations of
Holders of Registrable Securities. Subject to the Company’s obligations
under Section 4(e) hereof, each holder of Registrable Securities shall
cease using any prospectus after receipt of written notice from the Company of
the happening of any event as a result of which such prospectus contains an
untrue statement of a material fact or omits any fact necessary to make the
statements therein not misleading in light of the circumstances under which
they were made or is otherwise not legally available to support sales of
Registrable Securities.

 

2.             Piggyback
Registrations.

 

(a)           Right to Piggyback.
Whenever the Company proposes to register any of its securities (including any
proposed registration of the Company’s securities by any third party) under the
Securities Act (other than (i) pursuant to a Demand Registration, to which Section
1 is applicable, (ii) in connection with an initial public offering of the
Company’s equity securities, or (iii) in connection with registrations on Form
S-4, S-8 or any successor or similar forms) and the registration form to be
used may be used for the registration of Registrable Securities (a “Piggyback
Registration”), the Company shall give prompt written notice (and in any
event within three business days after its receipt of notice of any exercise of
demand registration rights other than under this Agreement) to all holders of
Registrable Securities of its intention to effect such a registration and shall
include in such registration all Registrable Securities with respect to which
the Company has received written requests for inclusion therein within 20 days
after the receipt of the Company’s notice.

 

(b)           Piggyback Expenses.
The Registration Expenses of the holders of Registrable Securities shall be
paid by the Company in all Piggyback Registrations.

 

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(c)           Priority on Primary
Registrations. If a Piggyback Registration is an underwritten primary
registration on behalf of the Company, and the managing underwriters advise the
Company in writing that, in their opinion, the number of securities requested
to be included in such registration exceeds the number which can be sold in an
orderly manner in such offering within a price range acceptable to the Company,
then the Company shall include in such registration (i) first, the securities
the Company proposes to sell, (ii) second, the Registrable Securities requested
to be included in such registration, pro rata among the holders of such
Registrable Securities on the basis of the number of shares or units owned by
each such holder, and (iii) third, the other securities requested to be
included in such registration.

 

(d)           Priority on
Secondary Registrations. If a Piggyback Registration is an underwritten
secondary registration on behalf of holders of the Company’s securities other
than holders of Registrable Securities (it being understood that secondary
registrations on behalf of holders of Registrable Securities are addressed in Section
1 above rather than this Section 2(d)), and the managing
underwriters advise the Company in writing that, in their opinion, the number
of securities requested to be included in such registration exceeds the number
which can be sold in an orderly manner in such offering within a price range
acceptable to the holders of a majority of the Registrable Securities to be
included in such registration, then the Company shall include in such registration
(i) first, the securities requested to be included therein by the holders
requesting such registration, (ii) second, the Registrable Securities requested
to be included in such registration, pro rata among the holders of such
Registrable Securities on the basis of the number of shares or units owned by
each such holder, and (iii) third, the other securities requested to be
included in such registration.

 

(e)           Selection of
Underwriters. If any Piggyback Registration is an underwritten offering,
then the selection of investment banker(s) and manager(s) for the offering must
be approved by the holders of a majority of the Registrable Securities included
in such Piggyback Registration. Such approval shall not be unreasonably
withheld.

 

(f)            Other Registrations.
If the Company has previously filed a registration statement with respect to
Registrable Securities pursuant to Section 1 or pursuant to this Section
2, and if such previous registration has not been withdrawn or abandoned,
then, unless such previous registration is a Required Registration, the Company
shall not file or cause to be effected any other registration of any of its
equity securities or securities convertible or exchangeable into or exercisable
for its equity securities under the Securities Act (except on Form S-8 or any
successor form), whether on its own behalf or at the request of any holder or
holders of such securities, until a period of at least 180 days has elapsed
from the effective date of such previous registration.

 

3.             Holdback
Agreements; Transfers; Legend.

 

(a)           Each holder of
Registrable Securities agrees that in connection with the Company’s initial
public offering and any Demand Registration or Piggyback Registration that is
an underwritten public offering of the Company’s equity securities, he, she or
it shall not (i) offer, sell, contract to sell, pledge or otherwise dispose of
(including sales pursuant to Rule 144), directly or indirectly, any equity
securities of the Company (including, without limitation, equity securities of
the Company which may be deemed to be owned beneficially by such holder in 

 

4

 

accordance with the rules and regulations of the Securities and
Exchange Commission) (collectively, the “Securities”), or any
securities, options, or rights convertible into or exchangeable or exercisable
for Securities (the “Other Securities”), (ii) enter into a transaction
which would have the same effect as described in clause (i) of this section,
(iii) enter into any swap, hedge or other arrangement that transfers, in whole
or in part, any of the economic consequences or ownership of any Securities or
Other Securities, whether such transaction is to be settled by delivery of such
Securities, Other Securities, in cash or otherwise, or (iv) publicly disclose
the intention to enter into any transaction described in (i), (ii) or (iii)
above, from the date on which the Company gives notice to the holders of
Registrable Securities that a preliminary prospectus has been circulated for
such underwritten public offering to the date that is 180-days following the
date of final prospectus for such underwritten public offering (or such shorter
period as agreed to by the underwriters designated as “book-runners” managing
such registered public offering), unless such book-runners otherwise agree in
writing.

 

(b)           In connection with any
underwritten public offering of the Company’s equity securities, each holder of
Registrable Securities agrees to enter into any holdback, lockup or similar agreement
requested by the underwriters managing such registered public offering that the
holders of a majority of the Investor Registrable Securities agree to enter
into.

 

(c)           The Company (i) shall
not effect any public sale or distribution of its equity securities, or any
securities, options, or rights convertible into or exchangeable or exercisable
for such securities, during the seven days prior to and during the 180-day
period beginning on the effective date of any underwritten Demand Registration
or any underwritten Piggyback Registration (except as part of such underwritten
registration or pursuant to registrations on Form S-4 or Form S-8 or any
successor form), unless the underwriters managing the registered public
offering otherwise agree, and (ii) to the extent not inconsistent with
applicable law, except as otherwise permitted by the holders of a majority of
the Investor Registrable Securities, shall cause each holder of its equity
securities, or any securities convertible into or exchangeable or exercisable
for equity securities, purchased from the Company at any time after the date of
this Agreement (other than in a registered public offering) to agree not to
effect any public sale or distribution (including sales pursuant to Rule 144)
of any such securities during such period (except as part of such underwritten
registration, if otherwise permitted), unless the underwriters managing the
registered public offering otherwise agree.

 

(d)           Notwithstanding
anything to the contrary herein, except in the case of (i) a transfer to the
Company, (ii) a transfer by an Investor to its limited partners, (iii) a Public
Sale permitted hereunder or (iv) a transfer in connection with a Sale of the
Company (as defined in the Securityholders Agreement) (clauses (i) through
(iv), a “Permitted Transfer”), prior to transferring any Registrable
Securities to any Person (including, without limitation, by operation of law),
the transferring Securityholder shall cause the prospective transferee to
execute and deliver to the Company a counterpart of this Agreement thereby
agreeing to be bound by the terms hereof. Any transfer or attempted transfer of
any Registrable 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
securities for any purpose. Other than in the case of a Permitted Transfer,
whether or not any such transferee has executed a counterpart hereto, such
transferee shall be subject the obligations of the transferor hereunder. The
provisions of this Section 3(d) shall terminate upon a Sale of the
Company.

 

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(e)           Each certificate
evidencing any Securities or Other Securities held by a Securityholder and each
certificate issued in exchange for or upon the transfer of any such securities
(unless such securities are permitted to be transferred pursuant to this
Agreement and, if such securities were Registrable Securities, would no longer
be Registrable Securities after such transfer) shall be stamped or otherwise
imprinted with a legend in substantially the following form:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE
SUBJECT TO RESTRICTIONS ON TRANSFER AND OTHER PROVISIONS SET FORTH IN A
REGISTRATION RIGHTS AGREEMENT DATED AS OF APRIL 1, 2005 AMONG THE ISSUER OF
SUCH SECURITIES (THE “COMPANY”) AND CERTAIN OF THE COMPANY’S SECURITYHOLDERS,
AS AMENDED. A COPY OF SUCH REGISTRATION RIGHTS AGREEMENT WILL BE FURNISHED
WITHOUT CHARGE BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST.”

 

The Company shall imprint such legend on certificates
evidencing Securities and Other Securities outstanding prior to the date hereof.
The legend set forth above shall be removed from the certificates evidencing
any securities which are or are to be transferred pursuant to a Permitted
Transfer.

 

4.             Registration
Procedures. Whenever the holders of Registrable Securities have requested
that any Registrable Securities be registered pursuant to this Agreement, the
Company shall use commercially reasonable efforts to effect the registration
and the sale of such Registrable Securities in accordance with the intended
method of disposition thereof, and pursuant thereto the Company shall as
expeditiously as possible:

 

(a)           prepare and, within 60
days after the end of the period within which requests for registration may be
given to the Company, file with the Securities and Exchange Commission a
registration statement with respect to such Registrable Securities and use
commercially reasonable efforts to cause such registration statement to become
effective (provided that, before filing a registration statement or
prospectus or any amendments or supplements thereto, the Company shall furnish
to the counsel selected by the holders of a majority of the Investor
Registrable Securities covered by such registration statement copies of all
such documents proposed to be filed, which documents shall be subject to the
review and comment of such counsel);

 

(b)           notify in writing each
holder of Registrable Securities of the effectiveness of each registration
statement filed hereunder and prepare and file with the Securities and Exchange
Commission such amendments and supplements to such registration statement and
the prospectus used in connection therewith as may be necessary to keep such
registration statement effective for a period of not less than 180 days (or, if
such registration statement relates to an underwritten offering, such longer
period as in the opinion of counsel for the underwriters a prospectus is
required by law to be delivered in connection with sales of Registrable
Securities by an underwriter or dealer) and comply with the provisions of the
Securities Act with respect to 

 

6

 

the disposition of all securities covered by such registration
statement during such period in accordance with the intended methods of
disposition by the sellers thereof set forth in such registration statement;

 

(c)           furnish to each seller
of Registrable Securities such number of copies of such registration statement,
each amendment and supplement thereto, the prospectus included in such
registration statement (including each preliminary prospectus), and such other
documents as such seller may reasonably request in order to facilitate the
disposition of the Registrable Securities owned by such seller;

 

(d)           use commercially
reasonable efforts to register or qualify such Registrable Securities under
such other securities or blue sky laws of such jurisdictions as any seller
reasonably requests and do any and all other acts and things which may be
reasonably necessary or advisable to enable such seller of Registrable
Securities to consummate the disposition in such jurisdictions of the Registrable
Securities owned by such seller of Registrable Securities (provided that the
Company shall not be required to (i) qualify generally to do business in any
jurisdiction where it would not otherwise be required to qualify but for this Section
4(d), (ii) subject itself to taxation in any such jurisdiction, or (iii)
consent to general service of process in any such jurisdiction);

 

(e)           promptly notify in
writing each seller of such Registrable Securities, at any time when a
prospectus relating thereto is required to be delivered under the Securities
Act, of the happening of any event as a result of which the prospectus included
in such registration statement (i) contains an untrue statement of a material
fact or omits any fact necessary to make the statements therein not misleading
in light of the circumstances under which they were made or (ii) is otherwise
not legally available to support sales of Registrable Securities, and, at the
request of the holders of a majority of the Registrable Securities covered by
such registration statement, promptly prepare and furnish to each such seller a
reasonable number of copies of a supplement or amendment to such prospectus so
that, as thereafter delivered to the purchasers of such Registrable Securities,
such prospectus shall not contain an untrue statement of a material fact or
omit to state any fact necessary to make the statements therein not misleading
in light of the circumstances under which they were made;

 

(f)            cause all such
Registrable Securities to be listed on each securities exchange on which
similar securities issued by the Company are then listed and, if not so listed,
to be listed on the NASD automated quotation system and, if listed on the NASD
automated quotation system, use commercially reasonable efforts to secure
designation of all such Registrable Securities covered by such registration
statement as a NASDAQ “national market system security” within the meaning of
Rule 11Aa2-1 of the Securities and Exchange Commission or, failing that, to
secure NASDAQ authorization for such Registrable Securities;

 

(g)           provide a transfer
agent and registrar for all such Registrable Securities not later than the
effective date of such registration statement;

 

(h)           enter into such
customary agreements (including underwriting agreements in customary form) and
take all such other actions as the holders of a majority of the Registrable
Securities being sold or the underwriters, if any, reasonably request in order
to expedite or 

 

7

 

facilitate the disposition of Registrable Securities (including
effecting a share or unit split or a combination of shares or units);

 

(i)            make available for
inspection by any underwriter participating in any disposition pursuant to such
registration statement, and any attorney, accountant, or other agent retained
by any such underwriter, all financial and other records, pertinent corporate
documents and properties of the Company, and cause the Company’s officers,
directors, employees, and independent accountants to supply all information
reasonably requested by any such underwriter, attorney, accountant, or agent in
connection with such registration statement and assist and, at the request of
any participating underwriter, use commercially reasonable efforts to cause
such officers or directors to participate in presentations to prospective
purchasers;

 

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

 

(k)           in the event of the
issuance of any stop order suspending the effectiveness of a registration
statement, or of any order suspending or preventing the use of any related
prospectus or suspending the qualification of any equity securities included in
such registration statement for sale in any jurisdiction, the Company shall use
commercially reasonable efforts promptly to obtain the withdrawal of such
order;

 

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

 

(m)          obtain one or more cold
comfort letters, dated the effective date of such registration statement (and,
if such registration includes an underwritten public offering, dated the date
of the closing under the underwriting agreement), from the Company’s
independent public accountants in customary form and covering such matters of
the type customarily covered by cold comfort letters as the holders of a
majority of the Registrable Securities being sold in such registered offering
reasonably request (provided that such Registrable Securities constitute at
least 10% of the securities covered by such registration statement); and

 

(n)           provide a legal opinion
of the Company’s outside counsel, dated the effective date of such registration
statement (or, if such registration includes an underwritten public offering,
dated the date of the closing under the underwriting agreement), with respect
to the registration statement, each amendment and supplement thereto, the
prospectus included therein (including the preliminary prospectus) and such
other documents relating thereto in customary form and covering such matters of
the type customarily covered by legal opinions of such nature.

 

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5.             Registration
Expenses.

 

(a)           Subject to Section
5(b) below, all expenses incident to the Company’s performance of or
compliance with this Agreement, including all registration and filing fees, fees
and expenses of compliance with securities or blue sky laws, printing expenses,
travel expenses, filing expenses, messenger and delivery expenses, fees and
disbursements of custodians, and fees and disbursements of counsel for the
Company, and fees and disbursements of all independent certified public
accountants, underwriters including, if necessary, a “qualified independent
underwriter” within the meaning of the rules of the National Association of
Securities Dealers, Inc. (in each case, excluding discounts and commissions),
and other Persons retained by the Company or by holders of Investor Registrable
Securities or their affiliates on behalf of the Company (all such expenses
being herein called “Registration Expenses”), shall be borne as provided
in this Agreement, except that the Company shall, in any event, pay its
internal expenses (including all salaries and expenses of its officers and
employees performing legal or accounting duties), the expense of any annual
audit or quarterly review, the expense of any liability insurance, and the
expenses and fees for listing the securities to be registered on each
securities exchange on which similar securities issued by the Company are then
listed or on the NASD automated quotation system (or any successor or similar
system).

 

(b)           In connection with each
Demand Registration and each Piggyback Registration, the Company shall
reimburse the holders of Registrable Securities included in such registration
for the reasonable fees and disbursements of one counsel chosen by the holders
of a majority of the Investor Registrable Securities included in such
registration.

 

(c)           To the extent
Registration Expenses are not required to be paid by the Company, each holder
of securities included in any registration hereunder shall pay those
Registration Expenses allocable to the registration of such holder’s securities
so included, and any Registration Expenses not so allocable shall be borne by
all sellers of securities included in such registration in proportion to the
aggregate selling price of the securities to be so registered.

 

6.             Indemnification.

 

(a)           The Company agrees to
indemnify and hold harmless, to the fullest extent permitted by law, each
holder of Registrable Securities, its officers, directors, agents, and
employees, and each Person who controls such holder (within the meaning of the
Securities Act) against all losses, claims, damages, liabilities, and expenses
(or actions or proceedings, whether commenced or threatened, in respect
thereof), whether joint and several or several, together with reasonable costs
and expenses (including reasonable attorney’s fees) to which any such
indemnified party may become subject under the Securities Act or otherwise
(collectively, “Losses”) caused by, resulting from, arising out of,
based upon, or relating to (i) any untrue or alleged untrue statement of
material fact contained in (A) any registration statement, prospectus or
preliminary prospectus, or any amendment thereof or supplement thereto or (B)
any application or other document or communication (in this Section 6,
collectively called an “application”) executed by or on behalf of the
Company or based upon written information furnished by or on behalf of the
Company filed in any jurisdiction in order to qualify any securities covered by
such registration under the “blue sky” or securities laws thereof or
(ii) any omission or alleged omission of a material fact required to be stated
therein or necessary to make 

 

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the statements therein not misleading, and the Company will reimburse
such holder and each such director, officer, and controlling Person for any
legal or any other expenses incurred by them in connection with investigating
or defending any such Losses; provided that the Company shall not be
liable in any such case to the extent that any such Losses result from, arise
out of, are based upon, or relate to an untrue statement or alleged untrue
statement, or omission or alleged omission, made in such registration
statement, any such prospectus, or preliminary prospectus or any amendment or
supplement thereto, or in any application, in reliance upon, and in conformity
with, written information prepared and furnished in writing to the Company by
such holder expressly for use therein or by such holder’s failure to deliver a
copy of the registration statement or prospectus or any amendments or
supplements thereto after the Company has furnished such holder with a
sufficient number of copies of the same. In connection with an underwritten
offering, the Company shall indemnify such underwriters, their officers and
directors, and each Person who controls such underwriters (within the meaning
of the Securities Act) to the same extent as provided above with respect to the
indemnification of the holders of Registrable Securities.

 

(b)           In connection with any
registration statement in which a holder of Registrable Securities is
participating, each such holder will furnish to the Company in writing such
information and affidavits as the Company reasonably requests for use in
connection with any such registration statement or prospectus and, to the
fullest extent permitted by law, shall indemnify and hold harmless the other
holders of Registrable Securities and the Company, and their respective officers,
directors, agents, and employees, and each other Person who controls the
Company (within the meaning of the Securities Act) against any Losses caused
by, resulting from, arising out of, based upon, or relating to (i) any untrue
or alleged untrue statement of material fact contained in the registration
statement, prospectus or preliminary prospectus, or any amendment thereof or
supplement thereto or in any application, or (ii) any omission or alleged
omission of a material fact required to be stated therein or necessary to make
the statements therein not misleading, but only to the extent that such untrue
statement or omission is made in such registration statement, any such
prospectus or preliminary prospectus or any amendment or supplement thereto, or
in any application, in each case, in reliance upon and in conformity with
written information prepared and furnished to the Company by such holder
expressly for use therein, and such holder will reimburse the Company and each
such other indemnified party for any legal or any other expenses incurred by
them in connection with investigating or defending any such Losses; provided
that the obligation to indemnify will be individual, not joint and several, for
each holder and shall be limited to the net amount of proceeds received by such
holder from the sale of Registrable Securities pursuant to such registration
statement.

 

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

 

10

 

entitled to, or elects not to, assume the defense of a claim will not
be obligated to pay the fees and expenses of more than one counsel for all
parties indemnified by such indemnifying party with respect to such claim,
unless in the reasonable judgment of any indemnified party a conflict of
interest may exist between such indemnified party and any other of such
indemnified parties with respect to such claim.

 

(d)           The indemnification
provided for under this Agreement shall be in addition to any other rights to
indemnification or contribution which any indemnified party may have pursuant
to law or contract, and will remain in full force and effect regardless of any
investigation made or omitted by or on behalf of the indemnified party or any
officer, director, or controlling Person of such indemnified party and shall
survive the transfer of securities.

 

(e)           If the indemnification
provided for in this Section 6 is unavailable to or is insufficient to
hold harmless an indemnified party under the provisions above in respect to any
Losses referred to therein, then each indemnifying party shall contribute to
the amount paid or payable by such indemnified party as a result of such Losses
(i) in such proportion as is appropriate to reflect the relative fault of the
Company on the one hand and the sellers of Registrable Securities and any other
sellers participating in the registration statement on the other hand or (ii)
if the allocation provided by clause (i) above is not permitted by applicable
law, then in such proportion as is appropriate to reflect not only the relative
fault referred to in clause (i) above but also the relative benefit of the
Company on the one hand and of the sellers of Registrable Securities and any
other sellers participating in the registration statement on the other in
connection with the statement or omissions which resulted in such Losses, as
well as any other relevant equitable considerations. The relative benefits
received by the Company on the one hand and the sellers of Registrable
Securities and any other sellers participating in the registration statement on
the other shall be deemed to be in the same proportion as the total net
proceeds from the offering (before deducting expenses) to the Company bear to
the total net proceeds from the offering (before deducting expenses) to the
sellers of Registrable Securities and any other sellers participating in the
registration statement. The relative fault of the Company on the one hand and
of the sellers of Registrable Securities and any other sellers participating in
the registration statement on the other shall be determined by reference to,
among other things, whether the untrue statement or alleged omission to state a
material fact relates to information supplied by the Company or by the sellers
of Registrable Securities or other sellers participating in the registration
statement and the parties’ relative intent, knowledge, access to information,
and opportunity to correct or prevent such statement or omission.

 

(f)            The Company and the
sellers of Registrable Securities agree that it would not be just and equitable
if contribution pursuant to this Section 6 were determined by pro rata
allocation (even if the sellers of Registrable Securities were treated as one
entity for such purpose) or by any other method of allocation which does not
take account of the equitable considerations referred to in Section 6(e)
above. The amount paid or payable by an indemnified party as a result of the
Losses referred to in Section 6(e) above shall be deemed to include,
subject to the limitations set forth above, any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating
or defending any such action or claim. Notwithstanding the provisions of this Section
6, no seller of Registrable Securities shall be required to contribute
pursuant to this Section 6 any amount in excess of the sum of (i) any
amounts paid pursuant to Section 6(b) above and (ii) the net proceeds
received by such seller 

 

11

 

from the sale of Registrable Securities covered by the registration
statement filed pursuant hereto. No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation.

 

7.             Participation
in Underwritten Registrations.

 

(a)           No Person may
participate in any underwritten registration hereunder unless such Person (i)
agrees to sell such Person’s securities on the basis provided in any
underwriting arrangements approved by the Person or Persons entitled hereunder
to approve such arrangements (including pursuant to the terms of any over-allotment
or “green shoe” option requested by the managing underwriter(s), provided
that no holder of Registrable Securities will be required to sell more than the
number of Registrable Securities that such holder has requested the Company to
include in any registration) and (ii) completes and executes all
questionnaires, powers of attorney, indemnities, underwriting agreements, and
other documents reasonably required under the terms of such underwriting
arrangements; provided that no holder of Registrable Securities included
in any underwritten registration shall be required to make any representations
or warranties to the Company or the underwriters (other than representations
and warranties regarding such holder and such holder’s intended method of distribution)
or to undertake any indemnification obligations to the Company or the
underwriters with respect thereto, except as otherwise provided in Section 6
hereof.

 

(b)           Each Person that is
participating in any registration hereunder agrees that, upon receipt of any
notice from the Company of the happening of any event of the kind described in Section
4(e) above, such Person will immediately discontinue the disposition of its
Registrable Securities pursuant to the registration statement until such Person’s
receipt of the copies of a supplemented or amended prospectus as contemplated
by Section 4(e). In the event the Company shall give any such notice,
the applicable time period mentioned in Section 4(b) during which a
Registration Statement is to remain effective shall be extended by the number
of days during the period from and including the date of the giving of such
notice pursuant to this Section 7(b) to and including the date when each
seller of a Registrable Security covered by such registration statement shall
have received the copies of the supplemented or amended prospectus contemplated
by Section 4(e).

 

8.             Additional
Securityholders. In connection with the issuance of any additional equity
securities of the Company, the Company, with the consent of a majority of the
Investor Registrable Securities, may permit such Person to become a party to
this Agreement and succeed to all of the rights and obligations of a holder of
any particular category of Registrable Securities under this Agreement by
obtaining an executed counterpart signature page to this Agreement, and, upon
such execution, such Person shall for all purposes be a holder of such category
of Registrable Securities and party to this Agreement.

 

9.             Subsidiary
Public Offering. If, after an initial public offering of the equity
securities of a Subsidiary of the LLC, the LLC distributes securities of such
Subsidiary to members of the LLC, then the rights and obligations of the
Company pursuant to this Agreement shall apply, mutatis mutandis, to
such Subsidiary, and the LLC or the Company, as applicable, shall cause such
Subsidiary to comply with such Subsidiary’s obligations under this Agreement.

 

12

 

10.           Definitions.

 

(a)           “Common Stock”
means, collectively, (i) following the organization of a corporation and
reorganization or recapitalization of the LLC into the Company as provided in Section
1(a) above, the common equity securities of the Company and any other class
or series of authorized capital stock of the Company that is not limited to a
fixed sum or percentage of par or stated value in respect of the rights of the
holders thereof to participate in dividends or in the distribution of assets
upon any liquidation, dissolution or winding up of the Company and (ii) the
common stock of Solera, Inc. and any other common stock of a Subsidiary of
either the LLC or the Company distributed by the LLC or the Company to its
unitholders or shareholders, as applicable.

 

(b)           “Executive
Registrable Securities” means, (i) any Common Stock issued or distributed
in respect of units of the LLC issued to the Executives and (ii) common equity
securities of the Company or a Subsidiary of either the LLC or the Company
issued or issuable with respect to the securities referred to in clause (i)
above by way of dividend, distribution, split or combination of securities, or
any recapitalization, merger, consolidation or other reorganization.

 

(c)           “Investor
Registrable Securities” means, (i) any Common Stock issued or distributed
in respect of units of the LLC issued to the Investors pursuant to the Purchase
Agreement, (ii) common equity securities of the Company or a Subsidiary of
either the LLC or the Company issued or issuable with respect to the securities
referred to in clause (i) above by way of dividend, distribution, split
or combination of securities, or any recapitalization, merger, consolidation or
other reorganization, and (iii) other Common Stock held by Persons holding
securities described in clause (i) above.

 

(d)           “LLC Agreement”
means that certain Limited Liability Company Agreement of Solera Holdings, LLC,
dated as of April 1, 2005, as amended and modified from time to time.

 

(e)           “Other Registrable
Securities” means, (i) any Common Stock issued or distributed in respect of
units of the LLC issued to the Other Securityholders and (ii) common equity
securities of the Company or a Subsidiary of either the LLC or the Company
issued or issuable with respect to the securities referred to in clause (i)
above by way of dividend, distribution, split or combination of securities, or
any recapitalization, merger, consolidation or other reorganization.

 

(f)            “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, an investment fund, any other business entity and a governmental
entity or any department, agency or political subdivision thereof.

 

(g)           “Public Offering”
means the sale in an underwritten public offering registered under the
Securities Act of the equity securities of the Company (or any successor
thereto) approved by the Company’s board of managers or board of directors, as
the case may be.

 

13

 

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

 

(i)            “Registrable
Securities” means the Investor Registrable Securities, the Executive
Registrable Securities and the Other Registrable Securities. As to any
particular Registrable Securities, such securities shall cease to be
Registrable Securities when they (i) have been distributed to the public
pursuant to an offering registered under the Securities Act or sold to the
public through a broker, dealer, or market maker in compliance with Rule 144
under the Securities Act (or any similar rule then in force), (ii) unless an
Investor otherwise elects, have been distributed to the limited partners of any
Investor, (iii) have been effectively registered under a registration
statement including, without limitation, a registration statement on Form S-8
(or any successor form), or (iv) have been repurchased by the Company. In
addition, all Registrable Securities held by any Person shall cease to be
Registrable Securities (provided that, for purposes of this provision, all
Investors and all Registrable Securities held by such Investors shall be
treated as Registrable Securities held by a single Person) when all such
Registrable Securities become eligible to be sold to the public through a
broker, dealer, or market maker pursuant to Rule 144 (or any similar provision
then in force), other than Rule 144(k), during a single 90-day period. For
purposes of this Agreement, a Person shall be deemed to be a holder of
Registrable Securities whenever such Person has the right to acquire such
Registrable Securities (upon conversion or exercise in connection with a
transfer of securities or otherwise, but disregarding any restrictions or
limitations upon the exercise of such right), whether or not such acquisition has
actually been effected; provided that this sentence shall not apply to
shares of the common equity securities of the Company issuable upon the
exercise of unvested options originally issued to employees or former employees
of the LLC, the Company or their Subsidiaries.

 

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

 

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

 

(l)            “Securityholders
Agreement” means the Securityholders Agreement, dated as of the date
hereof, by and among the Company and certain of its securityholders, as amended
from time to time in accordance with its terms.

 

(m)          “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 

 

14

 

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.

 

(n)           Unless otherwise
stated, other capitalized terms contained herein have the meanings set forth in
the Purchase Agreement.

 

11.           Miscellaneous.

 

(a)           No Inconsistent
Agreements. Neither the LLC nor the Company will hereafter enter into any
agreement with respect to its securities that is inconsistent with or violates
the rights granted to the holders of Registrable Securities in this Agreement.

 

(b)           Adjustments
Affecting Registrable Securities. The Company shall not take any action, or
permit any change to occur, with respect to its securities that would adversely
affect the ability of the holders of Registrable Securities to include such
Registrable Securities in a registration undertaken pursuant to this Agreement
or that would adversely affect the marketability of such Registrable Securities
in any such registration (including effecting a unit split or a combination of
units).

 

(c)           Remedies. Any
Person having rights under any provision of this Agreement shall be entitled to
enforce such rights specifically, to recover damages caused by reason of any
breach of any provision of this Agreement and to exercise all other rights
granted by law. 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 other security)
for specific performance and for other injunctive relief in order to enforce or
prevent violation of the provisions of this Agreement. Nothing contained in
this Agreement shall be construed to confer upon any Person who is not a
signatory hereto any rights or benefits, whether as a third-party beneficiary
or otherwise.

 

(d)           Amendments and
Waivers. Except as otherwise provided herein, no modification, amendment,
or waiver of any provision of this Agreement shall be effective against the
LLC, the Company or the holders of Registrable Securities unless such
modification, amendment, or waiver is approved in writing by GTCR and the LLC
or the Company, as the case may be, and (i) holders of a majority of the
Registrable Securities, provided that no such amendment or modification that
would materially and adversely affect holders of one class or group of
Registrable Securities in a manner different than holders of any other class or
group of Registrable Securities (other than amendments and modifications
required to implement the provisions of Section 8) shall be effective
against the holders of such class or group of 

 

15

 

Registrable Securities without the prior written consent of holders of
at least a majority of Registrable Securities of such class or group materially
and adversely affected thereby, or (ii) prior to the organization of a
corporation and reorganization or recapitalization of the LLC pursuant to Section
15.7 of the LLC Agreement, holders of a majority of the Common Units (as
defined in the LLC Agreement), provided that no such amendment or modification
that would materially and adversely affect holders of one class or group of
Units (as defined in the LLC Agreement) in a manner different than holders of
any other class or group of Units (other than amendments and modifications
required to implement the provisions of Section 8) shall be effective
against the holders of such class or group of Units without the prior written
consent of holders of at least a majority of Units of such class or group
materially and adversely affected thereby (for purposes of this proviso, Class
A Common Units (as defined in the LLC Agreement) and Class B Common Units (as
defined in the LLC Agreement) shall comprise the same class or group of Units).
No failure by any party to insist upon the strict performance of any covenant,
duty, agreement, or condition of this Agreement or to exercise any right or
remedy consequent upon a breach thereof shall constitute a waiver of any such
breach or any other covenant, duty, agreement, or condition.

 

(e)           Successors and
Assigns. All covenants and agreements in this Agreement by or on behalf of
any of the parties hereto shall bind and inure to the benefit and detriment of
the respective successors and assigns of the parties hereto whether so
expressed or not. In addition, whether or not any express assignment has been
made, the provisions of this Agreement which are for the benefit or detriment
of purchasers or holders of Registrable Securities are also for the benefit of,
and enforceable by, and for the detriment of, and enforceable against, any
subsequent holder of Registrable Securities.

 

(f)            Severability. Whenever
possible, each provision of this Agreement shall be interpreted in such manner
as to be effective and valid under applicable law, but if any provision of this
Agreement is held to be invalid, illegal or unenforceable in any respect under
any applicable law or rule in any jurisdiction, such invalidity, illegality or
unenforceability 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.

 

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

 

(h)           Descriptive
Headings; Interpretation. The descriptive headings of this Agreement are
inserted for convenience only and do not constitute a substantive part of this
Agreement. Whenever required by the context, any pronoun used in this Agreement
shall include the corresponding masculine, feminine, or neuter forms, and the
singular form of nouns, pronouns, and verbs shall include the plural and vice
versa. The use of the word “including” in this Agreement shall be, in
each case, by way of example and without limitation. The use of the words “or,”
“either,” and “any” shall not be exclusive. Reference to any
agreement, document, or instrument means such agreement, document, or
instrument as amended or otherwise modified from time to time in accordance
with the terms thereof, and, if applicable, hereof.

 

16

 

(i)            Governing Law. The
Delaware Limited Liability Act and/or the Delaware General Corporation Law, as
applicable, shall govern all issues and questions concerning the relative
rights of the LLC, the Company and its securityholders. All other issues and
questions concerning the construction, validity, interpretation, and
enforcement of this Agreement and the exhibits and schedules hereto shall be
governed by, and construed in accordance with, the laws of the State of
Delaware, without giving effect to any choice of law or conflict of law rules
or provisions (whether of the State of Delaware or any other jurisdiction) that
would cause the application of the laws of any jurisdiction other than the
State of Delaware.

 

(j)            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 OR THE
TRANSACTIONS CONTEMPLATED HEREBY.

 

(k)           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 delivered personally to the recipient, sent to
the recipient by reputable overnight courier service (charges prepaid), mailed
to the recipient by certified or registered mail, return receipt requested and
postage prepaid or 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 each Investor, each Executive, and each Other
Securityholder at the addresses indicated on the Schedule of Holders and to the
Company at the address of its corporate headquarters or to such other address
or to the attention of such other Person as the recipient party has specified
by prior written notice to the sending party.

 

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

 

(m)          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 

 

17

 

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.

 

*     *     *    
*    *

 

18

 

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

 

	
   

  	
  SOLERA
  HOLDINGS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tony Aquila

  	
   

  
	
   

  	
  Name:

  	
  Tony Aquila

  
	
   

  	
  Its:

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  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:

  	
   

  
	
   

  	
  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:

  	
   

  
	
   

  	
  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:

  	
   

  
	
   

  	
  Its:

  	
  Principal

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Tony Aquila

  	
   

  
	
   

  	
  TONY
  AQUILA

  
												

 

SIGNATURE PAGE TO THE
REGISTRATION RIGHTS AGREEMENT

 

19Exhibit 4.3

 

SECURITYHOLDERS
AGREEMENT

 

THIS SECURITYHOLDERS AGREEMENT
(this “Agreement”) is made as of April 1, 2005 by and among (i) Solera
Holdings, LLC, a Delaware limited liability company (the “Company”),
(ii) GTCR Fund VIII, L.P., a Delaware limited partnership (“Fund VIII”),
GTCR Fund VIII/B, L.P., a Delaware limited partnership (“Fund VIII/B”),
GTCR Co-Invest II, L.P., a Delaware limited partnership (“GTCR Co-Invest”),
and any investment fund managed by GTCR Golder Rauner, L.L.C., a Delaware
limited liability company (“GTCR I”), or GTCR Golder Rauner II, L.L.C.,
a Delaware limited liability company (“GTCR II”), that at any time
executes a counterpart of this Agreement or otherwise agrees to be bound by
this Agreement (each, an “Investor” and collectively, the “Investors”),
(iii) Tony Aquila and any other executive employee of the Company or its
Subsidiaries who, at any time, acquires securities of the Company in accordance
with Section 9 hereof and executes a counterpart of this Agreement or
otherwise agrees to be bound by this Agreement (each, an “Executive” and
collectively, the “Executives”), and (iv) each of the other Persons set
forth from time to time on the attached Schedule of Securityholders
under the heading “Other Securityholders” who, at any time, acquires
securities of the Company in accordance with Section 9 or 11
hereof and executes a counterpart of this Agreement or otherwise agrees to be
bound by this Agreement. The Investors, the Executives and the other Persons
listed on the Schedule of Securityholders are collectively referred to
herein as the “Securityholders” and individually as a “Securityholder.”  Capitalized terms used but not otherwise
defined herein are defined in Section 8 hereof; provided that, if
any term is not defined herein, then such term shall have the same meaning
assigned to it in the LLC Agreement (as hereinafter defined).

 

WHEREAS, the Investors will purchase Class A Common
Units (as defined in the LLC Agreement) of the Company (the “Class A Common
Units”) and Class B Preferred Units (as defined in the LLC Agreement) of
the Company (the “Class B Preferred Units”) pursuant to a Unit Purchase
Agreement between the Investors and the Company dated as of the date hereof (as
amended from time to time pursuant to its terms, the “Purchase Agreement”).
Pursuant to the Senior Management Agreements between the Company and the
Executives, the Executives will purchase Class A Common Units of the Company
and Class B Preferred Units of the Company; and

 

WHEREAS, the Company and the Securityholders desire to
enter into this Agreement for the purposes, among others, of (i) limiting the
manner and terms by which units and interests in the Company may be
transferred, and (ii) assuring continuity in the ownership of the Company. The
execution and delivery of this Agreement is a condition to the Investors’
purchase of the Class A Common Units and the Class B Preferred Units pursuant
to the Purchase Agreement.

 

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 this
Agreement hereby agree as follows:

 

 

1.             Restrictions on
Transfer.

 

(a)           Transfer of
Securityholder Securities. No holder of Securityholder Securities shall
Transfer any interest in Securityholder Securities, without the prior written
consent of the holders of a majority of the Investor Securities, except
Transfers (i) to a Permitted Transferee in accordance with Section 1(b),
(ii) in accordance with Sections 2 and 3 of this Agreement
and (iii) pursuant to a Public Sale or an Approved Sale in accordance with this
Agreement.

 

(b)           Permitted Transfers.
The restrictions set forth in Section 1(a) shall not apply to (i) any
Transfer of Securityholder Securities by any Securityholder to or among its
Affiliates or Family Group, (ii) any Transfer of Securityholder Securities to
any Investor, (iii) a purchase of Securityholder Securities by the Company or
its Subsidiaries or an exchange or conversion of the same pursuant to the terms
of any Senior Management Agreement, (iv) a Public Sale, or (v) an Approved Sale
(as defined in Section 4(a)); provided that the restrictions
contained in this Agreement will continue to be applicable to the
Securityholder Securities after any Transfer pursuant to clause (i)
above and the transferee of such Securityholder Securities shall agree in
writing to be bound by the provisions of this Agreement. Upon the Transfer of
Securityholder Securities pursuant to clause (i) of the previous
sentence, the transferees will deliver a written notice to the Company, which
notice will disclose in reasonable detail the identity of such transferee. A
transferee permitted pursuant to this Section 1(b) who receives a
transfer of Securityholder Securities in accordance with this Agreement shall
be referred to herein as a “Permitted Transferee.”  Notwithstanding the foregoing, no party
hereto shall avoid the provisions of this Agreement by (i) making one or more
transfers to one or more Permitted Transferees and then disposing of all or any
portion of such party’s interest in any such Permitted Transferee or (ii) by
Transferring the securities of any entity holding (directly or indirectly)
Securityholder Securities.

 

(c)           Termination of
Restrictions. The restrictions on the Transfer of Securityholder Securities
set forth in this Section 1 shall continue with respect to each
Securityholder Security until the date on which such Securityholder Security
has been transferred in a Public Sale or pursuant to a Sale of the Company that
meets the conditions for Transfer set forth in this Section 1.

 

2.             Participation
Rights.

 

(a)           At least 30 days prior
to any Transfer of units of any class of Securityholder Securities by one or
more of the Investors (each, a “Transferring Investor”), such
Transferring Investor(s) shall deliver a written notice (the “Tag-Along
Notice”) to the Company and the other Securityholders (the “Tag-Along
Securityholders”) specifying in reasonable detail the identity of the
prospective transferee(s) and the terms and conditions of the Transfer. The
Tag-Along Securityholders may elect to participate in the contemplated Transfer
by delivering written notice to each of the Transferring Investors within 15
days after delivery of the Tag-Along Notice. If any Tag-Along Securityholders
have elected to participate in such Transfer, the Transferring Investor and
such Tag-Along Securityholders will each be entitled to sell in the
contemplated Transfer, at the same price and on the same terms, a number of
units of such class of Securityholder Securities proposed to be transferred
equal to the product of (A) the quotient determined by dividing the number of
units of such class of Securityholder 

 

2

 

Securities owned by such Person by the aggregate number of outstanding
units of such class of Securityholder Securities owned by the Investor and the
Tag-Along Securityholders participating in such sale and (B) the number of
units of such class of Securityholder Securities to be sold in the contemplated
Transfer.

 

(b)           The Transferring
Investor(s) will use commercially reasonable efforts to obtain the agreement of
the prospective transferee(s) to the participation of the Tag-Along
Securityholders in any contemplated Transfer, and the Transferring Investor(s)
will not transfer any of its Securityholder Securities to the prospective
transferee(s) unless (A) the prospective transferee(s) agrees to allow the
participation of the Tag-Along Securityholders or (B) the Transferring
Investor(s) agrees to purchase the number of such class of Securityholder
Securities from the Tag-Along Securityholders that the Tag-Along
Securityholders would have been entitled to sell pursuant to this Section
1(b) for the consideration per unit to be paid to the Transferring
Investor(s) by the prospective transferee(s).

 

(c)           The restrictions in
this Section 2 will not apply with respect to Transfers to Permitted
Transferees.

 

(d)           The provisions of this Section
2 will terminate upon the first to occur of (i) the consummation of a Sale
of the Company and (ii) the consummation of a Public Offering.

 

3.             First Refusal
Rights.

 

(a)           Prior to making any
Transfer of Securityholder Securities (other than a Transfer pursuant to Section
15.7 of the LLC Agreement in connection with a public offering of
securities, a Public Sale of the type referred to in clause (i) of the
definition thereof or a Sale of the Company) and after obtaining the consent of
the holders of a majority of the Investor Securities as required pursuant to Section
1, any Securityholder (other than the Investors) desiring to make such
Transfer (the “Transferring Securityholder”) will give written notice
(the “Sale Notice”) to the Company and the holders of Common Units
(collectively, the “Sale Notice Recipients”). The Sale Notice will
disclose in reasonable detail the identity of the prospective transferee(s),
the number of units of Securityholder Securities to be transferred and the
terms and conditions of the proposed transfer. Such Transferring Securityholder
will not consummate any Transfer until 45 days after the Sale Notice has been
given to the Sale Notice Recipients, unless the parties to the Transfer have
been finally determined pursuant to this Section 2 prior to the
expiration of such 45-day period. (The date of the first to occur of such
events is referred to herein as the “Authorization Date”.)

 

(b)           The Company may elect
to purchase all (but not less than all) of such Securityholder Securities to be
transferred upon the same terms and conditions as those set forth in the Sale
Notice by delivering a written notice of such election to the Transferring
Securityholder and the Sale Notice Recipients (other than the Company) within
20 days after the Sale Notice has been given to the Company. If the Company has
not elected to purchase all of the Securityholder Securities to be transferred,
the Securityholders may elect to purchase all (but not less than all) of the
Securityholder Securities to be transferred upon the same terms and conditions
as those set forth in the Sale Notice by giving written notice of such election
to such Transferring Securityholder within 25 days after the Sale Notice has
been given to the 

 

3

 

Securityholders. If more than one Securityholder elects to purchase the
Securityholder Securities to be transferred, the units of Securityholder
Securities to be sold shall be allocated among such Securityholders pro rata
according to the number of units of such class of Securityholders Securities
owned by each such Securityholder on a fully diluted basis (for purposes of
such pro rata allocation, Class A Common Units and Class B Common Units shall
be deemed to constitute one class of Securityholder Securities). If neither the
Company nor the Securityholders elect to purchase all of the Securityholder
Securities specified in the Sale Notice, the Transferring Securityholder may
transfer the Securityholder Securities specified in the Sale Notice at a price
and on terms no more favorable to the transferee(s) thereof than specified in
the Sale Notice during the 60-day period immediately following the
Authorization Date. Any Securityholder Securities not Transferred within such
60-day period will be subject to the provisions of this Section 2 upon
subsequent Transfer. The Company may pay the purchase price for such units by
offsetting amounts outstanding under any bona fide debts owed by the
Transferring Securityholder to the Company.

 

(c)           The restrictions of
this Section 3 will not apply with respect to Transfers to Permitted
Transferees.

 

(d)           Notwithstanding
anything herein to the contrary, except pursuant to clause (c) above, in
no event shall any Transfer of Securityholder Securities pursuant to this Section
3 be made for any consideration other than cash payable upon consummation
of such Transfer.

 

(e)           The restrictions set
forth in this Section 3 shall continue with respect to each unit of
Securityholder Securities until the earlier of (i) the date on which such unit
of Securityholder Securities has been transferred in a Public Sale, (ii) the
consummation of a Sale of the Company, and (iii) the date on which such unit of
Securityholder Securities has been transferred pursuant to this Section 3
(other than pursuant to Section 3(c) and other than a transfer to a
Securityholder purchasing from a Transferring Securityholder pursuant to Section
3(b)).

 

4.             Sale of the
Company.

 

(a)           If the Required
Interest (as such term is defined in the LLC Agreement) approves a Sale of the
Company (an “Approved Sale”), each holder of Securityholder Securities
shall vote for, consent to and raise no objections against such Approved Sale. If
the Approved Sale is structured as a (i) merger or consolidation, each holder
of Securityholder Securities shall waive any dissenters’ rights, appraisal
rights or similar rights in connection with such merger or consolidation or
(ii) sale of Units, each holder of Securityholder Securities shall agree to
sell all of his, her or its Securityholder Securities or rights to acquire
Securityholder Securities on the terms and conditions approved by the Board and
the holders of the Required Interest. Each holder of Securityholder Securities
shall take all necessary or desirable actions in connection with the
consummation of the Approved Sale as requested by the Company.

 

(b)           The obligations of the
holders of Securityholder Securities with respect to the Approved Sale of the
Company are subject to the terms of Section 5 below.

 

4

 

(c)           If either the Company
or the holders of any class of Securityholder Securities enter into a
negotiation or transaction for which Rule 506 (or any similar rule then in
effect) promulgated by the Securities and Exchange Commission may be available
with respect to such negotiation or transaction (including a merger,
consolidation or other reorganization), the holders of Securityholder
Securities will, at the request of the Company, appoint a purchaser
representative (as such term is defined in Rule 501) reasonably acceptable to
the Company. If any holder of Securityholder Securities appoints a purchaser
representative designated by the Company, the Company will pay the fees of such
purchaser representative, but if any holder of Securityholder Securities declines
to appoint the purchaser representative designated by the Company such holder
will appoint another purchaser representative, and such holder will be
responsible for the fees of the purchaser representative so appointed.

 

(d)           Holders of
Securityholder Securities will bear their pro rata share (based upon the number
of Common Units to be sold) of the costs of any sale of such Securityholder
Securities pursuant to an Approved Sale to the extent such costs are incurred
for the benefit of all holders of Securityholder Securities and are not
otherwise paid by the Company or the acquiring party. For purposes of this Section
4(d), costs incurred in exercising reasonable efforts to take all actions
in connection with the consummation of an Approved Sale in accordance with Section
4(a) shall be deemed to be for the benefit of all holders of Securityholder
Securities. Costs incurred by holders of Securityholder Securities on their own
behalf will not be considered costs of the transaction hereunder.

 

5.             Distributions upon
Sale of the Company. In the event of an Approved Sale, each Securityholder
shall receive in exchange for the Securityholder Securities held by such
Securityholder the same portion of the aggregate consideration from such sale
or exchange that such Securityholder would have received if such aggregate
consideration had been distributed by the Company pursuant to the terms of Section
4.1 of the LLC Agreement. Each holder of Securityholder Securities shall
take all necessary or desirable actions in connection with the distribution of
the aggregate consideration from such sale or exchange as requested by the
Company.

 

6.             Public Offering.
In the event that the Board or the Investors approve an initial Public
Offering, the holders of Securityholder Securities shall take all necessary or
desirable actions requested by the Board or the Investors in connection with
the consummation of such Public Offering, including, without limitation,
consenting to, voting for and waiving any dissenters rights, appraisal rights
or similar rights with respect to a reorganization of the Company pursuant to
the terms of Section 15.7 of the LLC Agreement and compliance with the
requirements of all laws and regulatory bodies that are applicable or that have
jurisdiction over such Public Offering. In the event that such Public Offering
is an underwritten offering and the managing underwriters advise the Company in
writing that in their opinion the Company’s capital structure would adversely
affect the marketability of the offering, each holder of Securityholder
Securities shall consent to and vote for a recapitalization, reorganization or
exchange (each, a “Recapitalization”) of any class of the Company’s
equity securities into securities that the managing underwriters, the Board and
the Investors find acceptable and shall take all necessary and desirable
actions in connection with the consummation of such Recapitalization; provided
that each holder of a class of Units shall receive the same type of 

 

5

 

security with the same value per unit (other than differences based
upon differences in the amount of yield accrued on such Units since their
respective dates of issuance).

 

7.             Legend. Each
certificate evidencing Securityholder Securities and each certificate issued in
exchange for or upon the transfer of any Securityholder Securities (if such
securities remain Securityholder Securities as defined herein after such
transfer) shall be stamped or otherwise imprinted with a legend in substantially
the following form:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE
SUBJECT TO A SECURITYHOLDERS AGREEMENT DATED AS OF APRIL 1, 2005 AMONG THE
ISSUER OF SUCH SECURITIES (THE “COMPANY”) AND CERTAIN OF THE COMPANY’S
SECURITYHOLDERS, AS AMENDED. A COPY OF SUCH SECURITYHOLDERS AGREEMENT WILL BE
FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN
REQUEST.”

 

The Company shall imprint
such legend on certificates evidencing Securityholder Securities outstanding
prior to the date hereof. The legend set forth above shall be removed from the
certificates evidencing any securities which cease to be Securityholder
Securities.

 

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.

 

“Board” means the Board of Managers established
pursuant to Section 5.2 of the LLC Agreement.

 

“Class A Preferred Units” means the Class A
Preferred Units (as defined in the LLC Agreement) of the Company.

 

“Class B Common Units” means the Class B Common
Units (as defined in the LLC Agreement) of the Company.

 

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

 

“Demand Registration” has the meaning given to
such term in the Registration Agreement.

 

“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 

 

6

 

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, provided that if such Person is a party to a Senior Management
Agreement in the capacity of an Executive and such agreement defines the term “Family
Group,” then “Family Group” for such Person shall have the meaning given to
such term in such Senior Management Agreement.

 

“Initial Closing” shall have the meaning set
forth in the Purchase Agreement.

 

“Investor Securities” means the Securityholder
Securities held by the Investors.

 

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

 

“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, an
investment fund, any other business entity and a governmental entity or any
department, agency or political subdivision thereof.

 

“Piggyback Registration” has the meaning given
to such term in the Registration Agreement.

 

“Public Offering” means the sale in an
underwritten public offering registered under the Securities Act of the equity
securities of the Company (or any successor thereto) approved by the Board.

 

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

 

“Registrable Securities” has the meaning given
to such term in the Registration Agreement.

 

“Registration Agreement” means that certain
Registration Rights Agreement, dated as of April 1, 2005, by and among the
Company, the Investors and the other parties thereto, as amended from time to
time pursuant to its terms.

 

“Sale of the Company” means any transaction or
series of transactions pursuant to which any Person or group of related Persons
(other than, except for purposes of Section 4, the Investors and 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 or breach) to elect a majority of the Company’s board of
managers (whether by merger, liquidation, consolidation, reorganization,
combination, sale or transfer of the Company’s equity securities,
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.

 

7

 

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

 

“Securityholder Securities” means (i) any Class
A Preferred Units, Class B Preferred Units, Class A Common Units or Class B
Common Units purchased or otherwise acquired by any Securityholder, (ii) any
equity securities issued or issuable directly or indirectly with respect to the
Units referred to in clause (i) 
above by way of unit dividend or unit split or in connection with a
combination of units, recapitalization, merger, consolidation or other
reorganization, and (iii) any other units of any class or series of equity
securities of the Company held by a Securityholder. As to any particular equity
securities constituting Securityholder Securities, such Securityholder
Securities will cease to be Securityholder Securities when they have been (x)
effectively registered under the Securities Act and disposed of in accordance
with the registration statement covering them or (y) sold to the public through
a broker, dealer or market maker pursuant to Rule 144 (or any similar provision
then in force) under the Securities Act.

 

“Senior Management Agreements” means,
collectively, those Senior Management Agreements entered into on or about the
date hereof among the Company, Solera, Inc.,a
Delaware corporation, and each of Tony Aquila, John Schwinn, Edward Schrenk and
Michael Conway, or any other agreements designated as Senior Management
Agreements for the sale of equity securities between the Company and any
employees or other service providers of the Company or its Subsidiaries, as
approved by the Board.

 

“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.

 

“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), but explicitly
excluding exchanges of one class of Securityholder Securities to or for another
class of Securityholder Securities.

 

8

 

9.             Transfers;
Transfers in Violation of Agreement. Prior to Transferring any
Securityholder Securities to any Person, the transferring Securityholder shall
cause the prospective transferee to execute and deliver to the Company a
counterpart of this Agreement. Any Transfer or attempted Transfer of any
Securityholder 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 Securityholder Securities as the owner of such
securities for any purpose.

 

10.           Failure to Comply
with Investment Obligations. To the extent any Executive or Other
Securityholder fails to comply with such Person’s obligation to invest in
securities of the Company pursuant to a written agreement with the Company (an “Investment
Agreement”), such Person’s Securityholder Securities shall be subject to
repurchase as and to the extent set forth in such Person’s Investment
Agreement.

 

11.           Additional
Securityholders. In connection with the issuance of any additional equity
securities of the Company to any Person, the Company, with the consent of the
Investors, may permit such Person to become a party to this Agreement and
succeed to all of the rights and obligations of a “Securityholder” under
this Agreement by obtaining an executed joinder to this Agreement, a form of
which is attached hereto as Exhibit A and, upon such execution, such
Person shall for all purposes be a “Securityholder” party to this
Agreement.

 

12.           Representations and
Warranties. Each Securityholder represents and warrants that (i) this
Agreement has been duly authorized, executed and delivered by such
Securityholder and constitutes the valid and binding obligation of such
Securityholder, enforceable in accordance with its terms, and (ii) such
Securityholder has not granted and is not a party to any proxy, voting trust or
other agreement that is inconsistent with, conflicts with or violates any
provision of this Agreement or the LLC Agreement.

 

13.           Amendment and Waiver.
Except as otherwise provided herein, no modification, amendment or waiver of
any provision of this Agreement shall be effective against the Company or the
Securityholders unless such modification, amendment or waiver is approved in
writing by the Company, the holders of a majority of the Investor Securities
and the holders of a majority of the Common Units; provided that no such
amendment or modification that would adversely affect one class or group of
holders of Securityholder Securities in a manner different than any other class
or group of holders of Securityholder Securities shall be effective against
such class or group of holders of Securityholder Securities without the prior
written consent of at least a majority of the Securityholder Securities of such
class or group adversely affected thereby (for purposes of this proviso, Class
A Common Units and Class B Common Units shall comprise the same class of
Securityholder Securities and the holders of Class A Common Units and Class B
Common Units shall comprise the same group of holders of Securityholder
Securities); provided further that no amendment or modification pursuant
to this Section 13 that would affect the rights of a Securityholder or
group of Securityholders specifically granted such rights by name shall be
modified without that Securityholder’s (or a majority of that group of
Securityholders’) consent. The failure of any party to enforce any of the
provisions of this Agreement shall in no way be construed as a waiver of such
provisions and shall not affect the 

 

9

 

right of such party thereafter to enforce each and every provision of
this Agreement in accordance with its terms.

 

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

 

15.           Entire Agreement.
This Agreement, those documents expressly referred to herein and other
documents of even date herewith embody the complete agreement and understanding
among the parties hereto with respect to the subject matter hereof 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.

 

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

 

17.           Counterparts. This
Agreement may be executed in separate counterparts (including by means of
telecopied signature pages) each of which shall be an original and all of which
taken together shall constitute one and the same agreement.

 

18.           Remedies. The
Company and each Securityholder shall be entitled to enforce their rights under
this Agreement specifically to recover damages by reason of any breach of any
provision of this Agreement and to exercise all other rights existing in their
favor. The 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
the Company and each Securityholder may in its sole discretion apply to any
court of law or equity of competent jurisdiction for specific performance
and/or injunctive relief (without posting a bond or other security) in order to
enforce or prevent any violation of the provisions of this Agreement.

 

19.           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 to the Company at the
addresses indicated below and to any other recipient at the address indicated
on the schedules hereto and to any subsequent holder of Securityholder
Securities 

 

10

 

subject to this Agreement at such address as indicated by the Company’s
records, or at such address or to the attention of such other Person as the
recipient party has specified by prior written notice to the sending party:

 

	
  If to the Company:

  
	
   

  	
   

  
	
   

  	
  Solera Holdings, LLC

  	
   

  
	
   

  	
  12230 El Camino Real

  	
   

  
	
   

  	
  Suite 200

  	
   

  
	
   

  	
  San Diego, CA 92130

  	
   

  
	
   

  	
  Attention: Chief
  Executive Officer

  	
   

  
	
   

  	
  Telephone:

  	
  (858) 812-2870

  
	
   

  	
  Facsimile:

  	
  (858) 812-3011

  
	
   

  	
   

  	
   

  
	
   

  	
  with copies to:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GTCR Golder Rauner, L.L.C.

  	
   

  
	
   

  	
  6100 Sears Tower

  	
   

  
	
   

  	
  Chicago, Illinois
  60606-6402

  	
   

  
	
   

  	
  Attention:

  	
  Philip A. Canfield

  
	
   

  	
   

  	
  Craig
  A. Bondy

  
	
   

  	
  Telephone: (312)
  382-2200

  	
   

  
	
   

  	
  Facsimile: (312)
  382-2201

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Kirkland & Ellis
  LLP

  	
   

  
	
   

  	
  200 East Randolph Drive

  	
   

  
	
   

  	
  Chicago, Illinois 60601

  	
   

  
	
   

  	
  Attention:  Stephen
  L. Ritchie, P.C.

  	
   

  
	
   

  	
  Telephone: (312)
  861-2000

  	
   

  
	
   

  	
  Facsimile: (312) 861-2200

  	
   

  
					

 

20.           Governing Law. The
Delaware Limited Liability Company Act shall govern all issues 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 and schedules hereto shall be governed by and construed in
accordance with the internal laws of the State of Delaware, without giving
effect to any choice of law or other 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.

 

21.           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 

 

11

 

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 AND/OR THE
TRANSACTIONS CONTEMPLATED HEREBY.

 

22.           Descriptive Headings;
Interpretation. The descriptive headings of this Agreement are inserted for
convenience only and do not constitute a substantive part of this Agreement. Whenever
required by the context, any pronoun used in this Agreement shall include the
corresponding masculine, feminine, or neuter forms, and the singular form of
nouns, pronouns, and verbs shall include the plural and vice versa. The use of
the word “including” in this Agreement shall be, in each case, by way of
example and without limitation. The use of the words “or,” “either,”
and “any” shall not be exclusive. Reference to any agreement, document,
or instrument means such agreement, document, or instrument as amended or
otherwise modified from time to time in accordance with the terms thereof, and,
if applicable, hereof.

 

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

 

24.           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.

 

*   *  
*   *   *

 

12

 

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

 

	
   

  	
  SOLERA
  HOLDINGS, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tony Aquila

  	
   

  
	
   

  	
  Name:

  	
  Tony Aquila

  
	
   

  	
  Its:

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  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:

  	
   

  
	
   

  	
  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:

  	
   

  
	
   

  	
  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:

  	
   

  
	
   

  	
  Its:

  	
  Principal

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Tony Aquila

  	
   

  
	
   

  	
  TONY
  AQUILA

  	
   

  
										

 

SIGNATURE PAGE TO THE SECURITYHOLDERS AGREEMENT

 

13

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