Document:

Novelis-IncreaseJoinderAgreement-withconformedsignaturepages

EXHIBIT 10.2
EXECUTION VERSION

INCREASE JOINDER AGREEMENT
dated as of 
October 12, 2012,
among 
 
NOVELIS INC.,
as the Borrower,
 
AV METALS INC.,
THE SUBSIDIARY GUARANTORS,
BANK OF AMERICA, N.A.,
as Administrative Agent, 

J.P. MORGAN SECURITIES LLC 
and
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,
as Joint Lead Arrangers and Joint Bookrunners,
JPMORGAN CHASE BANK, N.A.,
as Syndication Agent,

CITIBANK, N.A.,
THE ROYAL BANK OF SCOTLAND PLC
and
WELLS FARGO BANK, N.A.,
as Co-Documentation Agents,

AND

THE LENDERS SIGNATORY HERETO

933466.03-CHISR02A - MSW

INCREASE JOINDER AGREEMENT

INCREASE JOINDER AGREEMENT, dated as of October 12, 2012 (this “Agreement”), by and among NOVELIS INC. (the “Borrower”), AV METALS INC. (“Holdings”), the Subsidiary Guarantors (as defined in the Credit Agreement referred to below), NOVELIS ITALIA S.P.A. (the “Third Party Security Provider”), BANK OF AMERICA, N.A., as Administrative Agent under the Credit Agreement referred to below, and the Lenders (as defined in the Credit Agreement referred to below) signatory hereto (the “Increase Term Loan Lenders”).
PRELIMINARY STATEMENTS:
WHEREAS, reference is made to the Credit Agreement, dated as of December 17, 2010 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”; the terms defined therein, unless otherwise defined herein, being used herein as therein defined), among the Borrower, Holdings, the Subsidiary Guarantors, the Lenders, the Administrative Agent, Bank of America, N.A., as Collateral Agent, JPMorgan Chase Bank, N.A., as Syndication Agent, Citibank, N.A., The Royal Bank of Scotland plc and UBS Securities LLC, as Co-Documentation Agents, Merrill Lynch, Pierce, Fenner and Smith Incorporated and J.P. Morgan Securities LLC, as Joint Lead Arrangers, and Merrill Lynch, Pierce, Fenner and Smith Incorporated, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., RBS Securities Inc. and UBS Securities LLC, as Joint Bookrunners.
WHEREAS, subject to the terms and conditions of the Credit Agreement, the Borrower may request the establishment of Incremental Term Loan Commitments by, among other things, entering into one or more Increase Joinders.
WHEREAS, Section 2.23(c) of the Credit Agreement provides that a joinder agreement effecting Incremental Term Loan Commitments may, without the consent of any other Lenders, effect such amendments to the Credit Agreement and the other Loan Documents as may be necessary or appropriate, in the opinion of the Administrative Agent, to effect the provisions of Section 2.23 of the Credit Agreement, and the parties hereto acknowledge that the amendments set forth herein are made pursuant to such Section.
WHEREAS, the Borrower has requested Incremental Term Loans in an aggregate principal amount of $80,000,000 (the “Increase Term Loans”; the Incremental Term Loan Commitments relating thereto, the “Increase Term Loan Commitments”).
NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained, the parties hereto agree as follows:
SECTION 1.  Terms of the Increase Term Loans and Increase Term Loan Commitments.  Each Increase Term Loan Lender signatory hereto hereby agrees to commit to provide its Increase Term Loan Commitment, as set forth on Schedule I attached hereto, on the following terms and conditions:
		
	(a)
	Term Loans.  Except as set forth in this Agreement, the terms of each Increase Term Loan advanced pursuant to this Agreement (including, without limitation, the Applicable Margin with respect thereto) shall be identical to the terms of the Initial Term Loans as in effect under the Credit Agreement on the date hereof; provided that the Increase Term Loans shall be subject to the provisions of Section 3 below. The Increase Term Loans shall be construed to be in the same Class as the Initial Term Loans.

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	(b)
	Proposed Borrowing.  This Agreement represents the Borrower’s request to borrow Increase Term Loans from the Increase Term Loan Lenders as follows (the “Proposed Borrowing”):

	
		
	i.    Class of Proposed Borrowing:    
	Incremental Term Loan

	ii.    Principal amount of Proposed Borrowing: 
	$80,000,000

	iii. Date of Proposed Borrowing: (which is a Business Day)
	October 12, 2012

	iv. Type of Borrowing
	Eurodollar Rate Borrowing

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	v.    Applicable Margin
	Same as Initial Term Loans

	vi. Interest Period and the last day thereof
	See Section 3(a) below

	vii. Prepayments
	The Increase Term Loans shall be subject to mandatory prepayments and optional prepayments on the same basis as the Initial Term Loans.

	viii. Amortization
	The Borrower shall pay to the Administrative Agent, for the account of the Increase Term Loan Lenders, on the dates set forth on Schedule II hereto, a principal amount of the Increase Term Loans equal to the amount set forth on Schedule II hereto under the caption “Increase Term Loan Amount” for such date (as adjusted from time to time pursuant to Section 2.10(g) of the Credit Agreement), together in each case with accrued and unpaid interest on the principal amount to be paid to but excluding the date of such payment.

	ix. Maturity Date
	March 10, 2017 (Same as Initial Term Loans).

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	x.    Upfront Fee
	The Borrower agrees to pay on the Increase Effective Date to each Increase Term Loan Lender party to this Agreement, as fee compensation for the funding of such Increase Term Loan Lender’s Increase Term Loan, a non-refundable funding fee in an amount equal to 0.25% of the stated principal amount of such Increase Term Loan Lender’s Increase Term Loan funded on the Increase Effective Date, which fee may be paid with the proceeds of the Increase Term Loans.

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	xi. Funds are requested to be disbursed to Borrower’s account with Deutsche Bank NY:
	Account No. 00-472-083

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SECTION 2.      Increase Term Loan Lenders; Terms of Funding.
		
	(a)
	Each Increase Term Loan Lender acknowledges and agrees that upon its execution of this Agreement and the making of Increase Term Loans, the Increase Term Loan Lender shall become a “Lender” under, and for all purposes of, the Credit Agreement and the other Loan Documents, and shall be subject to and bound by the terms thereof, and shall perform all the obligations of and shall have all rights of a Lender thereunder.

		
	(b)
	Subject to the satisfaction of the terms and conditions hereof, each Increase Term Loan Lender will provide funds in Dollars equal in amount to its Increase Term Loan Commitment to such account as the Administrative Agent may designate.  Administrative Agent will transfer such funds so received to the Borrower’s deposit account described in clause 1(b)(xi) above.

		
	(c)
	The proceeds of the Increase Term Loans advanced pursuant to this Agreement will be utilized to redeem the Borrower's 7.25% senior notes due 2015 (the “Specified Notes”), for the payment of fees and expenses relating to the Increase Term Loans and certain amendments to the Credit Agreement, and/or for general corporate purposes.

SECTION 3.      Credit Agreement Governs.
		
	(a)
	The Increase Term Loans advanced pursuant to this Agreement shall be subject to the provisions of the Credit Agreement and the other Loan Documents and shall constitute and be deemed “Term Loans” under and pursuant to the provisions of the Credit Agreement and the other Loan Documents and shall share ratably in the benefits of the Credit Agreement and the other Loan Documents with all other Term Loans and, except as expressly set forth in this Agreement, shall be identical in all respect to the Initial Term Loans (including as to maturity date and Applicable Margin); provided that the Borrower agrees to pay each Increase Term Loan Lender on the Increase Effective Date an upfront fee equal to 0.25% of the aggregate amount of the Increase Term Loan Commitments of such Increase Term Loan Lender.  Notwithstanding any provision of the Credit Agreement to the contrary, during the Stub Interest Period (as defined below), the Eurodollar Rate applicable to the Increase Term Loans advanced pursuant to this Agreement shall be equal to the Eurodollar Rate applicable to the Initial Term Loans that are Eurodollar Rate Borrowings outstanding on the Increase Effective Date.  For purposes of this Agreement, the term “Stub Interest Period” shall mean the period beginning on the Increase Effective Date and ending on the last day of the Interest Period in effect on the Increase Effective Date with respect to the then outstanding Initial Term Loans that are Eurodollar Rate Borrowings 

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(which is December 31, 2012).  The Increase Term Loans advanced pursuant to this Agreement shall share ratably in optional and mandatory prepayments of Term Loans.
		
	(b)
	All conversions to Base Rate Borrowings or Eurodollar Rate Borrowings or continuations of Eurodollar Rate Borrowings shall be ratable among the Initial Term Loans and the Increase Term Loans.

SECTION 4.      Conditions to Effectiveness.  This Agreement shall become effective on the date (the “Increase Effective Date”) that each of the conditions set forth in this Section 4 have been satisfied:
		
	(a)
	Execution of Counterparts.  The Administrative Agent shall have received counterparts of (i) this Agreement executed by (A) the Borrower, (B) Holdings, (C) the Subsidiary Guarantors, (D) the Third Party Security Provider, (E) the Administrative Agent and (F) the Increase Term Loan Lenders and (ii) amendments to the other Loan Documents or other documents as may be necessary or appropriate, in the opinion of the Administrative Agent, to effect the provisions of this Agreement executed by the parties thereto.

		
	(b)
	Corporate Documents.  The Administrative Agent shall have received:

a certificate of the secretary, assistant secretary or managing director (where applicable) of the Borrower dated as of the Increase Effective Date, certifying (A) that each Organizational Document (or its equivalent including the constitutional documents) of the Borrower delivered to the Administrative Agent on the Closing Date is in full force and effect as of the Increase Effective Date and has not been modified, rescinded or amended since the Closing Date, (B) that attached thereto is a true and complete copy of resolutions duly adopted by the Board of Directors and/or shareholders, as applicable, of the Borrower authorizing the execution, delivery and performance of this Agreement, the other Loan Documents executed as of the Increase Effective Date to which the Borrower is a party and the borrowings hereunder, and that such resolutions, or any other document attached thereto, have not been modified, rescinded, amended or superseded and are in full force and effect, (C) as to the incumbency and specimen signature of each officer executing any Loan Document or any other document delivered in connection herewith on behalf of the Borrower (together with a certificate of another officer as to the incumbency and specimen signature of the secretary, assistant secretary or managing director executing the certificate in this clause (1), and other customary evidence of incumbency) and (D) that the borrowing, guarantee, or granting of Liens with respect to the Loans or any of the other Secured Obligations would not cause any borrowing, guarantee, security or similar limit binding on any Loan Party to be exceeded;
copies of resolutions duly adopted by the Board of Directors and/or shareholders, as applicable, of Holdings, each Subsidiary Guarantor and the Third Party Security Provider authorizing the execution, delivery and performance of this Agreement and the other Loan Documents executed as of the Increase Effective Date to which such person is a party, certified as of the Increase Effective Date by the secretary, assistant secretary or managing director (where applicable) of such Loan Party or Third Party Security Provider, as applicable, as being in full force and effect without modification, rescindment or amendment (provided that notwithstanding the foregoing, such resolutions of the Subsidiary Guarantors or Third Party Security Provider may be 

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executed and certified as of such earlier dates as may be agreed to by the Administrative Agent in its sole discretion).
		
	(c)
	No Default.  No Default shall have occurred and be continuing or would result from the borrowings to be made on the Increase Effective Date or from the application of the proceeds therefrom.  

		
	(d)
	Representations and Warranties.  Each of the representations and warranties made by any Loan Party set forth in ARTICLE III of the Credit Agreement and Section 6 of this Agreement or in any other Loan Document shall be true and correct in all material respects on and as of the Increase Effective Date with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date, in which case such representation and warranty shall have been true and correct in all material respects as of such earlier date.  Each of the representations and warranties made by the Third Party Security Provider set forth in and Section 7 of this Agreement or in any other Loan Document shall be true and correct in all material respects on and as of the Increase Effective Date with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date, in which case such representation and warranty shall have been true and correct in all material respects as of such earlier date.

		
	(e)
	No Legal Bar.  With respect to each Lender, no order, judgment or decree of any Governmental Authority shall purport to restrain such Lender from making any Loans to be made by it.  No injunction or other restraining order shall have been issued, shall be pending or noticed with respect to any action, suit or proceeding seeking to enjoin or otherwise prevent the consummation of, or to recover any damages or obtain relief as a result of, the transactions contemplated by the Credit Agreement or the making of Loans thereunder.

		
	(f)
	Senior Secured Net Leverage Ratio.  After giving pro forma effect to the borrowings to be made on the Increase Effective Date and to the redemption of the Specified Notes or application of funds made with the proceeds of such borrowings, the Senior Secured Net Leverage Ratio at such date shall be not greater than 2.5 to 1.0 (provided that in calculating the Senior Secured Net Leverage Ratio, the proceeds of the Increase Term Loans shall be excluded from Unrestricted Cash).

		
	(g)
	Increase Effective Date Certificate.  The Administrative Agent shall have received a certificate, dated the Increase Effective Date and signed by a Responsible Officer of the Borrower, confirming compliance with the conditions precedent set forth in (i) this Section 4 and (ii) Section 4.02 of the Credit Agreement as of the Increase Effective Date.

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	(h)
	Legal Opinions.  The Administrative Agent shall have received a favorable written opinion of Torys LLP, special counsel for the Loan Parties (A) dated the Increase Effective Date, (B) addressed to the Administrative Agent and the Lenders, (C) covering such matters incident to this Agreement, the Credit Agreement as amended by this Agreement, the other Loan Documents executed as of the Increase Effective Date and the transactions contemplated hereby and thereby as the Administrative Agent may reasonably require and (D) be in form and substance reasonably satisfactory to the Administrative Agent.

		
	(i)
	Payment of Fees and Expenses.  The Borrower shall have paid all fees agreed to between the joint lead arrangers of the Increase Term Loans (in such capacities, the “Arrangers”), the Administrative Agent and the Borrower in connection with this Agreement and, to the extent invoiced prior to the date hereof, all reasonable out-of-pocket expenses incurred by the Arrangers and the Administrative Agent, including the reasonable fees, charges and disbursements of Skadden, Arps, Slate, Meagher and Flom LLP, as counsel for the Arrangers and the Administrative Agent and any other counsel for the Arrangers and the Administrative Agent, in connection with this Agreement, and for all services related to the Credit Agreement from and after the Closing Date.

		
	(j)
	Solvency.  At the time of and immediately following the borrowings to be made on the Increase Effective Date and after giving effect to the application of the proceeds of the Increase Term Loans and the operation of the Contribution, Intercompany, Contracting and Offset Agreement, (a) the fair value of the assets of each Loan Party (individually and on a consolidated basis with its Subsidiaries) will exceed its debts and liabilities, subordinated, contingent, prospective or otherwise; (b) the present fair saleable value of the property of each Loan Party (individually and on a consolidated basis with its Subsidiaries) will be greater than the amount that will be required to pay the probable liability of its debts and other liabilities, subordinated, contingent, prospective or otherwise, as such debts and other liabilities become absolute and matured; (c) each Loan Party (individually and on a consolidated basis with its Subsidiaries) will be able to pay its debts and liabilities, subordinated, contingent, prospective or otherwise, as such debts and liabilities become absolute and matured; (d) each Loan Party (individually and on a consolidated basis with its Subsidiaries) will not have unreasonably small capital with which to conduct its business in which it is engaged as such business is now conducted and is proposed to be conducted following the Increase Effective Date; and (e) each Loan Party is not “insolvent” as such term is defined under any bankruptcy, insolvency or similar laws of any jurisdiction in which any Loan Party is organized or incorporated (as applicable), or otherwise unable to pay its debts as they fall due.

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SECTION 5.      Covenants.  Each Loan Party warrants, covenants and agrees that each Loan Party will, and will cause each of its Restricted Subsidiaries to, and the Third Party Security Provider warrants, covenants and agrees that the Third Party Security Provider will:
		
	(a)
	Date-Down Endorsements.  With respect to each Loan Party, upon the reasonable request of the Administrative Agent or the Collateral Agent, at the expense of the Borrower, with respect to each Mortgage of property located in the United States, use commercially reasonable efforts to promptly deliver to the Collateral Agent customary date-down endorsements from the Title Company with respect to the Collateral Agent’s lender’s policies of title insurance for the Mortgaged Properties which shall, among other things, confirm that the lien and priority of each Mortgage shall be unaffected as a result of the amendments to each Mortgage of property located in the United States.

		
	(b)
	Further Assurances of Loan Parties.  With respect to each Loan Party, at any time or from time to time upon the reasonable request of the Administrative Agent or the Collateral Agent, at the expense of the Borrower, promptly execute, acknowledge and deliver such further documents and do such other acts and things as the Administrative Agent or the Collateral Agent may reasonably request in order to effect fully the purposes of this Agreement and the other Loan Documents including without limitation, any actions that the Administrative Agent may deem reasonably necessary or advisable to ensure that the Obligations represented by the Increase Term Loans are guaranteed by all Guarantors and secured by all Collateral.  In furtherance and not in limitation of the foregoing, the Loan Parties shall take such actions as the Administrative Agent or the Collateral Agent may reasonably request from time to time (including, without limitation, the execution and delivery of amendments or supplements to the guaranties, security agreements, pledge agreements, mortgages, deeds of trust, landlord’s consents and estoppels, stock powers, financing statements and other documents, the filing or recording of any of the foregoing, and opinions covering any of the foregoing) to ensure that the Secured Obligations (including without limitation, those Obligations represented by the Increase Term Loans) are guaranteed by the Guarantors, on a First Priority basis, and are secured by substantially all of the property (other than such property specifically excluded by the terms of the Credit Agreement and the other Loan Documents) of the Loan Parties on a First Priority basis; provided that the Loan Parties’ using commercially reasonable efforts with respect to obtaining any such agreements from Persons who are not a Loan Party or in the control of any Loan Party shall satisfy the requirements of this covenant.  The Borrower and each Subsidiary Guarantor agree to use commercially reasonable efforts to cause their counsels to deliver such legal opinions, lien searches, title insurance and other documentation as the Administrative Agent may reasonably request in connection with or relating to the 

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foregoing.  For the avoidance of doubt, any guarantee or security provided under this Section 5 shall be concurrently provided to the Revolving Credit Secured Parties to the extent required by the Intercreditor Agreement.
		
	(c)
	Further Assurances of Third Party Security Provider.  With respect to the Third Party Security Provider, at any time or from time to time upon the reasonable request of the Administrative Agent or the Collateral Agent, at the expense of the Borrower, promptly execute, acknowledge and deliver such further documents and do such other acts and things as the Administrative Agent or the Collateral Agent may reasonably request in order to effect fully the purposes of this Agreement and the other Loan Documents including without limitation, any actions that the Administrative Agent may deem reasonably necessary or advisable to insure that the Obligations represented by the Increase Term Loans are secured by all Collateral of the Third party Security Provider.  In furtherance and not in limitation of the foregoing, the Third Party Security Provider shall take such actions as the Administrative Agent or the Collateral Agent may reasonably request from time to time (including, without limitation, the execution and delivery of amendments or supplements to the security agreements, pledge agreements and other documents, the filing or recording of any of the foregoing, and opinions covering any of the foregoing) to ensure that the Secured Obligations (including without limitation, those Obligations represented by the Increase Term Loans) are secured by the Collateral pledged by the Third Party Security Provider on a First Priority basis; provided that the Third Party Security Provider’s using commercially reasonable efforts with respect to obtaining any such agreements from Persons who are not a Loan Party or the Third Party Security Provider or in the control of any Loan Party or the Third Party Security Provider shall satisfy the requirements of this covenant.  The Third Party Security provider agree to use commercially reasonable efforts to cause their counsels to deliver such legal opinions, lien searches, and other documentation as the Administrative Agent may reasonably request in connection with or relating to the foregoing.  For the avoidance of doubt, any security provided under this Section 5 shall be concurrently provided to the Revolving Credit Secured Parties to the extent required by the Intercreditor Agreement.

SECTION 6.      Loan Parties’ Representations and Warranties.  Each Loan Party represents and warrants as follows:
		
	(a)
	Power; Authorization; Enforceable Obligations.  Each Loan Party has the requisite power and authority to enter into and deliver this Agreement.  The execution, delivery and performance of this Agreement has been duly authorized by all necessary action on the part of each Loan Party.  Each of this Agreement and the Credit Agreement, as amended by this Agreement, constitutes a legal, 

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valid and binding obligation of each Loan Party, enforceable against each Loan Party, in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability.
		
	(b)
	No Legal Bar.  The execution, delivery and performance of this Agreement do not and will not (i) violate any provision of any material Requirement of Law applicable to any Loan Party, any of the Organizational Documents of any Loan Party, or any order, judgment or decree of any court or other Governmental Authority binding on any Loan Party or, except for violations that could not reasonably be expected to result in a Material Adverse Effect, any contractual obligation of any Loan Party or (ii) result in or require the creation or imposition of any Lien upon any of the properties or assets of any Loan Party (other than the Liens created by the Loan Documents or the Revolving Credit Security Documents).

		
	(c)
	Accuracy of Representations and Warranties.  Each of the representations and warranties made by any Loan Party set forth in ARTICLE III of the Credit Agreement or in any other Loan Document is true and correct in all material respects on and as of the Increase Effective Date with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date, in which case such representation and warranty shall have been true and correct in all material respects as of such earlier date.

		
	(d)
	No Default.  No Default has occurred and is continuing or would result from the borrowings to be made on the Increase Effective Date or from the application of the proceeds therefrom.

		
	(e)
	Compliance with Credit Agreement; Net Yield.  The Increase Term Loans requested hereunder are permitted to be made under the terms of the Credit Agreement and there shall not be any Incremental Net Yield as a result of the Increase Term Loan Borrowing.

		
	(f)
	Solvency.  At the time of and immediately following the borrowings to be made on the Increase Effective Date and after giving effect to the application of the proceeds of the Increase Term Loans and the operation of the Contribution, Intercompany, Contracting and Offset Agreement, (a) the fair value of the assets of each Loan Party (individually and on a consolidated basis with its Subsidiaries) will exceed its debts and liabilities, subordinated, contingent, prospective or otherwise; (b) the present fair saleable value of the property of each Loan Party (individually and on a consolidated basis with its Subsidiaries) will be greater than the amount that will be required to pay the probable liability of its debts and other liabilities, subordinated, contingent, prospective or otherwise, as 

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such debts and other liabilities become absolute and matured; (c) each Loan Party (individually and on a consolidated basis with its Subsidiaries) will be able to pay its debts and liabilities, subordinated, contingent, prospective or otherwise, as such debts and liabilities become absolute and matured; (d) each Loan Party (individually and on a consolidated basis with its Subsidiaries) will not have unreasonably small capital with which to conduct its business in which it is engaged as such business is now conducted and is proposed to be conducted following the Increase Effective Date; and (e) each Loan Party is not “insolvent” as such term is defined under any bankruptcy, insolvency or similar laws of any jurisdiction in which any Loan Party is organized or incorporated (as applicable), or otherwise unable to pay its debts as they fall due. 
SECTION 7.      Third Party Security Provider’s Representations and Warranties.  The Third Party Security Provider represents and warrants as follows:
		
	(a)
	Power; Authorization; Enforceable Obligations.  The Third Party Security Provider has the requisite power and authority to enter into and deliver this Agreement.  The execution, delivery and performance of this Agreement has been duly authorized by all necessary action on the part of the Third Party Security Provider.  Each of this Agreement and each other Loan Document to which the Third Party Security Provider is a party constitutes a legal, valid and binding obligation of the Third Party Security Provider, enforceable against the Third Party Security Provider in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability.

		
	(b)
	No Legal Bar.  The execution, delivery and performance of this Agreement do not and will not (i) violate any provision of any material Requirement of Law applicable to the Third Party Security Provider, any of the Organizational Documents of the Third Party Security Provider, or any order, judgment or decree of any court or other Governmental Authority binding on the Third Party Security Provider or, except for violations that could not reasonably be expected to result in a Material Adverse Effect, any contractual obligation of the Third Party Security Provider or (ii) result in or require the creation or imposition of any Lien upon any of the properties or assets of the Third Party Security Provider (other than the Liens created by the Loan Documents or the Revolving Credit Security Documents).

SECTION 8.      Validity of Obligations and Liens.
		
	(a)
	Validity of Obligations.  Each of the Loan Parties and the Third Party Security Provider hereby consents to this Agreement and the execution, delivery and performance of the other Loan Documents, in each case to the extent party to such Loan Document, to be executed in connection therewith.  Each Loan Party acknowledges 

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and agrees that each Loan Party is, jointly and severally, indebted to the Lenders and the Agents for the Secured Obligations, without defense, counterclaim or offset of any kind and each Loan Party hereby ratifies and reaffirms the validity, enforceability and binding nature of such Secured Obligations.
		
	(b)
	Validity of Guarantees.

		
	1.
	Each Guarantor, as a Guarantor under ARTICLE VII of the Credit Agreement hereby (i) acknowledges and agrees to the terms of this Agreement and (ii) confirms and agrees that, its guarantee under ARTICLE VII of the Credit Agreement is, and shall continue to be, in full force and effect, and shall apply to all Secured Obligations (including all Increase Term Loans) and its guarantee under ARTICLE VII of the Credit Agreement is hereby ratified and confirmed in all respects.

		
	2.
	Holdings and each Guarantor that is a Foreign Subsidiary, as a guarantor under any Foreign Guarantee to which it is a party hereby (i) acknowledges and agrees to the terms of this Agreement and (ii) confirms and agrees that, its guarantees under any Foreign Guarantee to which it is a party are, and shall continue to be, in full force and effect, and shall apply to all Secured Obligations (including all Increase Term Loans) and its guarantees under any such Foreign Guarantees are hereby ratified and confirmed in all respects, except that, on and after the effectiveness of this Agreement, each reference in each Foreign Guarantee to the “Credit Agreement”, “thereunder”, “thereof” or words of like import shall mean and be a reference to the Credit Agreement, as amended by this Agreement.  

		
	(c)
	Validity of Liens and Loan Documents.  Each Loan Party and the Third Party Security Provider hereby ratifies and reaffirms the validity and enforceability (without defense, counterclaim or offset of any kind) of the Liens and security interests granted by it to secure any of the Secured Obligations by any Loan Party and the Third Party Security Provider to the Collateral Agent, for the benefit of the Secured Parties, pursuant to the Loan Documents to which any Loan Party or the Third Party Security Provider is a party and hereby confirms and agrees that notwithstanding the effectiveness of this Agreement, and except as expressly amended by this Agreement, each Loan Document is, and shall continue to be, in full force and effect and each is hereby ratified and confirmed in all respects, except that, on and after the effectiveness of this Agreement, each reference in the Loan Documents to the “Credit Agreement”, “thereunder”, “thereof” (and each reference in the Credit Agreement to this “Agreement”, “hereunder” or “hereof”) or words of like import shall mean and be a reference to the Credit Agreement as amended by this Agreement; provided that with reference to the security interest created under the Security Documents governed by Italian law (the “Italian Pledge Agreements”), the Secured Obligations shall be limited to those described under the Italian Pledge Agreements.

SECTION 9.      Increase Term Loan Lender Certifications.  By its execution of this Agreement, each Increase Term Loan Lender hereby certifies that:

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	(a)
	It has received a copy of the Credit Agreement and the other Loan Documents, together with copies of the financial statements referred to therein and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Agreement; 

		
	(b)
	It will, independently and without reliance upon the Administrative Agent or any other Increase Term Loan Lender or Agent and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement; 

		
	(c)
	It appoints and authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such powers under the Credit Agreement and the other Loan Documents as are delegated to the Administrative Agent by the terms thereof, together with such powers as are reasonably incidental thereto; and 

		
	(d)
	It agrees that it will perform in accordance with their terms all of the obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender of Increase Term Loans.

SECTION 10.      Notice.  For purposes of the Credit Agreement, the initial notice address of each Increase Term Loan Lender shall be as set forth below its signature below.
SECTION 11.      Recordation of the Increase Term Loans.  Upon execution and delivery hereof and the funding of the Increase Term Loans requested hereunder, the Administrative Agent will record the Increase Term Loans made by the Increase Term Loan Lenders pursuant to this Agreement in the Register.
SECTION 12.      Indemnification.  Each Loan Party shall indemnify each Agent (and any sub-agent thereof), each Receiver and each Related Party of any of the foregoing persons (each such person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all reasonable out-of-pocket losses, claims, damages, liabilities and related expenses (including the reasonable fees, charges and disbursements of any counsel for any Indemnitee) incurred by any Indemnitee or asserted against any Indemnitee by any third party or by the Borrower or any other Loan Party arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document, or any amendment, amendment and restatement, modification or waiver of the provisions hereof or thereof, or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, (ii) any Increase Term Loan made hereunder or the use or proposed use of the proceeds therefrom, or (iii) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by any Lender, the Borrower or any other Loan Party, and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee or (y) result from a claim brought by the Borrower or any other Loan Party against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under any other Loan Document, if such Borrower or such Loan Party has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction.  WITHOUT LIMITATION OF THE FOREGOING, IT IS THE 

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INTENTION OF THE LOAN PARTIES, AND THE LOAN PARTIES AGREE, THAT THE FOREGOING INDEMNITIES SHALL APPLY TO EACH INDEMNITEE WITH RESPECT TO LOSSES, CLAIMS, DAMAGES, PENALTIES, LIABILITIES AND RELATED EXPENSES (INCLUDING, WITHOUT LIMITATION, ALL EXPENSES OF LITIGATION OR PREPARATION THEREFOR), WHICH IN WHOLE OR IN PART ARE CAUSED BY OR ARISE OUT OF THE COMPARATIVE, CONTRIBUTORY OR SOLE NEGLIGENCE OF SUCH (AND/OR ANY OTHER) INDEMNITEE.  Amounts payable under this Section 12 by the Loan Parties shall be payable on demand.  This obligations of the Loan Parties set forth in this Section 12 shall be in addition to all indemnification, reimbursement or other obligations of the Loan Parties set forth in the Credit Agreement and the other Loan Documents.
SECTION 13.      Governing Law.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.
SECTION 14.      Execution in Counterparts.  This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of this Agreement by telecopier or in PDF format via electronic mail shall be effective as delivery of an original executed counterpart of this Agreement.
SECTION 15.      Continuing Effectiveness.  Except as modified by this Agreement, the Credit Agreement and other Loan Documents shall remain in full force and effect and the Borrower hereby ratifies and confirms the Credit Agreement and each Loan Document in all respects, and after the Increase Effective Date all references in the Credit Agreement and the other Loan Documents to the “Agreement” or the “Credit Agreement”, as applicable, shall refer to the Credit Agreement as modified hereby, and this Agreement shall be a Loan Document for all purposes.
SECTION 16.      WAIVER OF RIGHT TO TRIAL BY JURY.  EACH PARTY TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE REQUIREMENTS OF LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
SECTION 17.      Headings.  Section and subsection headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose or be given any substantive effect.
SECTION 18.      Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the Borrower and its successors and assigns, and upon the Agents and the Lenders and their successors and assigns.  The execution and delivery of this Agreement by any Lender prior to the Increase Effective Date shall be binding upon its successors and assigns and shall be effective as to any loans or 

17

commitments assigned to it after such execution and delivery.  The Borrower shall not have the right to assign its rights hereunder or any interest herein without the prior written consent of the Lenders except as a result of a transaction expressly permitted by Section 6.05(c) or 6.05(e) of the Credit Agreement.
[signature pages follow]

18

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their officers thereunto duly authorized as of the date first above written.
LOAN PARTIES:
	
		
	NOVELIS INC., as the Borrower

	 

	 

	By:
	/s/ Randal P. Miller

	Name: Randal P. Miller

	Title: Authorized Signatory

	 

	 

	AV METALS INC., as Holdings

	 

	 

	By:
	/s/ Randal P. Miller

	Name: Randal P. Miller

	Title: Authorized Signatory

	

	NOVELIS CORPORATION, as U.S. Guarantor

	 

	 

	By:
	/s/ Randal P. Miller

	Name: Randal P. Miller

	Title: Authorized Signatory

	

	NOVELIS PAE CORPORATION, as U.S. Guarantor

	 

	 

	By:
	/s/ Randal P. Miller

	Name: Randal P. Miller

	Title: Authorized Signatory

	 

	 

	NOVELIS BRAND LLC, as U.S. Guarantor

	 

	 

	By:
	/s/ Randal P. Miller

	Name: Randal P. Miller

	Title: Authorized Signatory

	 

	 

[Increase Joinder Agreement]

	
		
	NOVELIS SOUTH AMERICA HOLDINGS LLC, as U.S. Guarantor

	 

	 

	By:
	/s/ Randal P. Miller

	Name: Randal P. Miller

	Title: Authorized Signatory

	ALUMINUM UPSTREAM HOLDINGS LLC, as U.S. Guarantor

	 

	 

	By:
	/s/ Randal P. Miller

	Name: Randal P. Miller

	Title: Authorized Signatory

	

NOVELIS ACQUISITIONS LLC, as U.S. Guarantor

	 

	 

	By:
	/s/ Randal P. Miller

	Name: Randal P. Miller

	Title: Authorized Signatory

	

NOVELIS NORTH AMERICA HOLDINGS INC., as U.S. Guarantor

	 

	 

	By:
	/s/ Randal P. Miller

	Name: Randal P. Miller

	Title: Authorized Signatory

	

NOVELIS DELAWARE LLC, as U.S. Guarantor

	 

	 

	By:
	/s/ Randal P. Miller

	Name: Randal P. Miller

	Title: Authorized Signatory

	 

[Increase Joinder Agreement]

	
		
	NOVELIS UK LTD, as U.K. Guarantor

	 

	 

	By:
	/s/ Randal P. Miller

	Name: Randal P. Miller

	Title: Authorized Signatory

	 

	 

	NOVELIS SERVICES LIMITED, as U.K. Guarantor

	 

	 

	By:
	/s/ Randal P. Miller

	Name: Randal P. Miller

	Title: Authorized Signatory

	 

	 

	NOVELIS AG, as Swiss Guarantor

	 

	By:
	/s/ Randal P. Miller

	Name: Randal P. Miller

	Title: Authorized Signatory

	 

	 

	NOVELIS CAST HOUSE TECHNOLOGY LTD., as Canadian Guarantor

	 

	 

	By:
	/s/ Randal P. Miller

	Name: Randal P. Miller

	Title: Authorized Signatory

	 

	 

	4260848 CANADA INC., as Canadian Guarantor

	 

	 

	By:
	/s/ Randal P. Miller

	Name: Randal P. Miller

	Title: Authorized Signatory

	 

	 

	4260856 CANADA INC., as Canadian Guarantor

	 

	 

[Increase Joinder Agreement]

	
		
	By:
	/s/ Randal P. Miller

	Name: Randal P. Miller

	Title: Authorized Signatory

	 

	
		
	 

	8018227 CANADA INC., as Canadian Guarantor

	 

	 

	By:
	/s/ Randal P. Miller

	Name: Randal P. Miller

	Title: Authorized Signatory

	 

	NOVELIS NO. 1 LIMITED PARTNERSHIP, as Canadian Guarantor,

	 

	By:  4260848 CANADA INC.

	Its:  General Partner

	 

	By:
	/s/ Randal P. Miller

	Name: Randal P. Miller

	Title: Authorized Signatory

	 

	 

	8018243 CANADA LIMITED, as Canadian Guarantor

	 

	 

	By:
	/s/ Randal P. Miller

	Name: Randal P. Miller

	Title: Authorized Signatory

	 

	 

	NOVELIS EUROPE HOLDINGS LIMITED, as U.K. Guarantor

	 

	By:
	/s/ Randal P. Miller

	Name: Randal P. Miller

	Title: Authorized Signatory

	 

	

	NOVELIS SWITZERLAND SA, as Swiss Guarantor

[Increase Joinder Agreement]

	
		
	 

	 

	By:
	/s/ Randal P. Miller

	Name: Randal P. Miller

	Title: Authorized Signatory

	 

	NOVELIS DEUTSCHLAND GMBH, as German Guarantor

	 

	 

	By:
	/s/ Randal P. Miller

	Name: Randal P. Miller

	Title: Authorized Signatory

	 

	
		
	NOVELIS SHEET INGOT GMBH, as German Guarantor

	 

	 

	By:
	/s/ Randal P. Miller

	Name: Randal P. Miller

	Title: Authorized Signatory

	

NOVELIS MADEIRA UNIPESSOAL, LDA, as Madeira Guarantor

	 

	 

	By:
	/s/ Randal P. Miller

	Name: Randal P. Miller

	Title: Authorized Signatory

	
		
	NOVELIS PAE S.A.S., as French Guarantor

	 

	 

	By:
	/s/ Randal P. Miller

	Name: Randal P. Miller

	Title: Authorized Signatory

	

NOVELIS DO BRASIL LTDA., as Brazilian Guarantor

	 

	 

	By:
	/s/ Randal P. Miller

	Name: Randal P. Miller

	Title: Authorized Signatory

[Increase Joinder Agreement]

	
		
	 

	Signed and Delivered as a Deed for and on behalf of

	 

	NOVELIS ALUMINIUM HOLDING COMPANY,

	 

	by its duly authorised attorney,

	 

	as Irish Guarantor,

	

By:
	

/s/ Randal P. Miller

	Name: Randal P. Miller

	Title: Authorized Signatory

	 

	in the presence of:

	

By:
	

/s/ Leslie J. Parrette, Jr.

	Name: Leslie J. Parrette, Jr.

	Title: Authorized Signatory

[Increase Joinder Agreement]

THIRD PARTY SECURITY PROVIDER:
	
		
	NOVELIS ITALIA S.P.A., as Third Party Security Provider

	

By:
	

/s/ Randal P. Miller

	Name: Randal P. Miller

	Title: Authorized Signatory

[Increase Joinder Agreement]

ADMINISTRATIVE AGENT:    BANK OF AMERICA, N.A.
as Administrative Agent

    
	
		
	

By:
	

/s/ Bridgett J. Manduk

By:        Name:    Bridgett J. Manduk
Title:    Assistant Vice President

    
Schedule I

Increase Term Loan Commitments

	
			
	Increase Term Loan Lender
	Increase Term Loan Commitment
	Applicable Percentage

	Bank of America, N.A.
	$80,000,000
	100%

	Total
	$80,000,000
	100%

[Increase Joinder Agreement]

Schedule II

Amortization Table
	
		
	Date
	Increase Term Loan 
Amortization Amount

	 
	 

	December 31, 2012
	$200,000

	 
	 

	March 31, 2013
	$200,000

	 
	 

	June 30, 2013
	$200,000

	 
	 

	September 30, 2013
	$200,000

	 
	 

	December 31, 2013
	$200,000

	 
	 

	March 31, 2014
	$200,000

	 
	 

	June 30, 2014
	$200,000

	 
	 

	September 30, 2014
	$200,000

	 
	 

	December 31, 2014
	$200,000

	 
	 

	March 31, 2015
	$200,000

	 
	 

	June 30, 2015
	$200,000

	 
	 

	September 30, 2015
	$200,000

	 
	 

	December 31, 2015
	$200,000

	 
	 

	March 31, 2016
	$200,000

	
		
	 
	 

	June 30, 2016
	$200,000

	 
	 

	September 30, 2016
	$200,000

	 
	 

	December 31, 2016
	$200,000

	 
	 

	Original Maturity Date
	Remaining outstanding principalSLH Exhibit - 10.1 Q1

    Exhibit 10.1 

EXECUTIVE EMPLOYMENT AGREEMENT
This Executive Employment Agreement (the “Agreement”) is entered into between Solera Holdings, Inc., including all direct and indirect Subsidiaries and affiliated entities (collectively “Company” or “Employer”) and Renato Giger (“you”).  This Agreement is effective as of September 4, 2012 (“Effective Date”).  
The collective consideration for your obligations under this Agreement, each component of which you specifically acknowledge both the receipt and sufficiency thereof as consideration, include, but are not limited to, (1) your continued employment with the Company; (2) your continued and new access to and receipt of the Company’s confidential information and trade secrets related to the Company’s business and its clients, and (3) your continued eligibility to earn annual bonus, incentive and other compensation, and in certain circumstances to receive severance and other post-termination compensation.  Accordingly, you and the Company agree as follows:   
1.Scope of Agreement.  You are among the parties to an Employment Agreement dated December 11, 2006, and as amended from time to time (the “Management Agreement”).  This Agreement supersedes in its entirety the provisions of the Management Agreement as of the Effective Date.  Notwithstanding the foregoing, this Agreement shall not supersede or otherwise modify the provisions or obligations set forth in the August 6, 2010 letter relating to your temporary assignment to the United States (the “Temporary Assignment Benefits”).
2.    Position and Duties.  You will continue to be employed by the Company until termination pursuant to Section 6 of this Agreement or your Disability (as defined in Section 9.3) or death (the “Employment Period”).  You will serve as Chief Financial Officer or in such other position as may be assigned to you by the President and Chief Executive Officer of the Company (the “Manager”) or the Board of Directors of the Company (the “Board”).  You will report to the Manager or, at the Manager’s direction to the Chief Operating (or similar) Officer who reports to the Manager. You will have the normal duties, responsibility and authority implied by your position, subject to the power of the Manager to expand such duties or limit such duties.    
3.    Exclusive Service.  You will devote your reasonable efforts and full business time and attention to the business and affairs of Employer (including Subsidiaries); provided that you may serve on the boards of directors of purely philanthropic or civic organizations, in each case only to the extent such service or participation does not interfere with your employment or duties under this Agreement.  You may serve on the board of directors of a for-profit company (a “Corporate Board”) that is not competitive with the business of the Company or any Subsidiary to the extent such service or participation does not interfere with your employment or duties under this Agreement; provided, that prior to commencing to any such Corporate Board service you have advised the Manager and the Manager has, in his sole discretion, approved such Corporate Board service. 
4.    At‐Will Employment.  You and Employer understand and acknowledge that your employment with Employer constitutes “at-will” employment, and the employment relationship may be terminated by the Employer or you at any time, with or without cause and with or without notice, subject to the provisions of this Agreement.
5.    Compensation and Benefits.
5.1    Base Salary.  During the Employment Period, Employer shall pay you a monthly salary of $35,916.66 (annualized to $431,000), which will be subject to periodic review and change from time to time 

	
			
	 
	 
	 

CHICAGO/#2358909.3 

by the Board (such salary as in effect, when annualized, the “Annual Base Salary”).  The Annual Base Salary will be payable in accordance with Employer’s normal payroll practices, with such deductions and withholdings as are required by law. 
5.2    Bonus.  During the Employment Period, you will be eligible to receive a short-term cash bonus under the Company’s Annual Business Incentive Plan or other similar bonus plan adopted by the Board or the Board’s Compensation Committee (such plan the “ABIP”  and cash bonus an “Annual Bonus”) in an amount targeted on an annual basis at 75% of your Annual Base Salary (or such higher amount for any fiscal year as may be determined by the Board’s Compensation Committee from time to time) (the “Bonus Opportunity”). The Annual Bonus, if any, with respect to a fiscal year shall be determined by the Board’s Compensation Committee in accordance with the ABIP, based upon your or the Company’s (and its Subsidiaries’) attainment of one or more performance objectives approved by the Board’s Compensation Committee.  Employer will pay your Annual Bonus, if any, subject to approval of the Board’s Compensation Committee, during the first two and one-half months following the end of the fiscal year to which such Annual Bonus relates.  
5.3    Long-Term Incentive Compensation.  You have previously received, and during the Employment Period, you will be eligible to receive as determined by the Compensation Committee, on the basis generally applicable to the other senior executive officers of the Employer, long-term incentive (“LTI”) compensation under the Company’s equity-based or other long-term incentive compensation plans (“LTIC Awards”). LTIC Awards may be cash-based or exercisable for or to be settled in or based upon shares of the Company’s common stock, including but not limited to:  stock options; restricted stock units; restricted stock; or performance share units. LTIC Awards shall otherwise be subject to the terms and conditions of the Company’s long-term incentive compensation plans and the applicable award agreement thereunder. 
5.4    Employee Benefits.  You shall be eligible to participate in all employee benefit plans and arrangements, including, but not limited to, medical, dental, vision, life insurance and disability insurance benefits and 401(k) plan, as may be in effect from time to time and made available by Employer to its other senior executives generally, subject to the terms and conditions thereof.
5.5    Vacation.  You will be entitled to paid vacation and holidays pursuant to the terms of Employer’s vacation policy as may exist from time to time.
5.6    Business Expenses.  You will be reimbursed for all reasonable, out-of-pocket business, travel, marketing, entertainment and other similar expenses incurred in the performance of your duties on behalf of Employer or its Subsidiaries, provided that such expense reimbursement claims are supported by relevant documentation and are made in accordance with Employer’s expense policies.
6.    Termination and Change in Control.
6.1    Termination for Any Reason.  Upon termination of your employment with Employer for any reason and in addition to any benefits you are entitled to pursuant to Employer’s compensation or benefit plans, you will receive payment for all accrued and unpaid salary and vacation through the date of termination. 
6.2    Termination Without Cause.  Except as provided in Section 6.3, if your employment with the Company is terminated without Cause (as defined in Section 9.1), Employer (i)(A) will pay you ratably in equal monthly installments over 18 months an aggregate dollar amount equal to the sum of (x) 1.0 times your highest Annual Base Salary in effect during the twelve-month period immediately prior to your termination of employment, plus (y) 1.0 times the highest Bonus Opportunity in effect during the twelve-month period immediately prior to your termination of employment; and (B) will pay for or reimburse all of your premiums for continuing your health care coverage and the coverage of your dependents who are covered at the time of your termination or resignation, under the applicable provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) for a period ending on the earlier of the date that is eighteen (18) months after the date of 

	
			
	 
	 
	 

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CHICAGO/#2358909.3 

termination or resignation or the date on which you become eligible to be covered by the health care plans of another employer; provided, however, that any Employer obligation under clause (B) requires that you timely elect COBRA continuation coverage as required by applicable law (collectively, “Severance Payments”) and (ii)(A) in the case of any unvested LTIC Awards under the Company’s 2007 Long-Term Equity Incentive Plan, 2008 Omnibus Incentive Plan or otherwise (“Unvested Awards”) subject to time-based vesting, you will immediately vest in, and options shall become exercisable or cash or shares will be settled or distributed with respect to that portion of each such LTIC Award scheduled to vest within twelve (12) months following the date of termination, and (B) in the case of Unvested Awards subject to performance-based vesting, you will vest in, and options shall become exercisable, or cash or shares will be settled or distributed, as provided in the applicable LTIC Award agreement (“Section 6.2 Vesting”).  Employer’s obligation to make Severance Payments or provide Section 6.2 Vesting is conditioned upon your execution and delivery to Employer of a release of claims in the form attached hereto as Exhibit A (“Release”) and such Release becoming effective in accordance with its terms, and, without the consent of the Board’s Compensation Committee, you may not receive or retain any cash paid or exercise or dispose of any equity compensation that becomes vested or exercisable as a result of Section 6.2 Vesting unless and until the Release has become effective.  To the extent any LTIC Award agreement between the Company and you granting Unvested Awards to you contains provisions accelerating the vesting of such Unvested Awards upon a termination of your employment without Cause that are more favorable to you than the Section 6.2 Vesting, then the vesting provisions of such equity award agreement shall govern such Unvested Awards.  Employer will commence payment (or reimbursement, to the extent required by Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”)) of the Severance Payments sixty (60) days following the termination of your employment, provided that prior to such date, the Release has become effective in accordance with its terms.  The first payment will include a catch-up payment covering the amount that would have otherwise been paid during the period between your termination of employment and the first payment date but for the application of the preceding sentence, and the balance of the installments will be payable in accordance with the schedule set forth in the first sentence of this Section 6.2.  In the event of your death prior to payment in full of the Severance Payments, the Company shall pay your estate the remaining unpaid Severance Payments.  
6.3    Termination Following a Change in Control.  If, at any time during the 24 month period following a Change in Control, your employment with the Company is terminated without Cause or you resign for Good Reason, Employer (i)(A) will pay you on the schedule set forth in Section 6.2 (i.e., ratably in equal monthly installments over a period of 18 months beginning sixty (60) days following such termination of employment (subject to the effectiveness of the Release as described below), and including the catch‐up payment as described in Section 6.2 above) an aggregate dollar amount equal to the sum of (x) 1.5 times your highest Annual Base Salary in effect during the twelve-month period immediately prior to your termination of employment, and (y) 1.5 times the highest Bonus Opportunity in effect during the twelve-month period immediately prior to your termination of employment, and (B) will pay for or reimburse all of your premiums for continuing your health care coverage and the coverage of your dependents who are covered at the time of your termination or resignation under the applicable provisions of COBRA for a period ending on the earlier of the date that is eighteen (18) months after the date of termination or resignation or the date on which you become eligible to be covered by the health care plans of another employer; provided however that any Employer obligation under clause (B) requires that you timely elect COBRA continuation coverage as required by applicable law (collectively, “Change in Control Severance Payments”) and (ii) to the extent you have not already vested in any LTIC Awards due to the Change in Control, (A)  in the case of unvested LTIC Awards subject to time-based vesting, you will immediately vest in, options shall become exercisable, or cash or shares will be settled or distributed, representing 100% of any Unvested Awards, and (B) in the case of Unvested Awards subject to performance-based vesting, you will vest in, and options shall become exercisable, or cash or shares will be settled or distributed, as provided in the applicable LTIC Award agreement (“Change in Control Vesting”).  Employer’s obligation to make Change in Control Severance Payments or provide the Change in Control Vesting is conditioned upon your execution and delivery to Employer of a Release and such Release has become effective in accordance with its terms within 60 days following termination of your employment, and, without the consent of the Board’s Compensation Committee, you may not receive or retain any cash or exercise or dispose of any equity compensation that becomes 

	
			
	 
	 
	 

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CHICAGO/#2358909.3 

vested or exercisable as a result of change in Control Vesting unless and until the Release has become effective.  To the extent any LTIC Award agreement between the Company and you granting Unvested Awards to you contains provisions accelerating the vesting of such Unvested Awards upon a Change in Control that are more favorable to you than the Change in Control Vesting, then the Change in Control vesting provisions of such equity award agreement shall govern such Unvested Awards.  Notwithstanding the installment payment schedule set forth above, if the Change in Control also satisfies Treas. Reg. § 1.409A-3(i)(5), the amount in clause (A) will instead be paid in a single lump sum payment within the 60-day period following the date your employment ends, after and if the Release has become effective or, if required by Section 10.2, on such later date as is provided under Section 10.2 provided that the Release has become effective.  In the event of your death prior to payment in full of the Change in Control Severance Payments, the Company shall pay your estate the remaining unpaid Change in Control Severance Payments.
6.4    No Excise Tax Gross-Up; Possible Reduction in Parachute Payments.  Notwithstanding any restrictions set forth in any Employer plan or arrangement, if any portion of your Severance Payments, Change in Control Severance Payments, Change in Control Vesting, the Temporary Assignment Benefits or any other payments in the nature of compensation provided to you (each, a “Payment”) constitutes “parachute payments” within the meaning of Section 280G of the Code and, but for this subsection, would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then your Payments will be payable either in full or in such lesser amount as would result, after taking into account the applicable federal, state and local income taxes and the Excise Tax, in your receipt on an after-tax basis of the greater amount of Payments. Any reduction in the Payments pursuant to the preceding sentence shall be effected first by reducing or eliminating Severance Payments or Change in Control Severance Payments, as applicable, and then by reducing or eliminating the Temporary Assignment Benefits and Change in Control Vesting, and then by reducing other compensation and benefits. Such reductions shall be allocated pro rata between amounts that are subject to Section 409A of the Code and amounts that are not subject to Section 409A of the Code.  Any determination required under this Section 6.4 shall be made in writing by the Company’s independent public accountants (the “Accountants”), whose determination shall be conclusive and binding upon you and Employer for all purposes.  For purposes of making the calculations required by this Section 6.4, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code.  Employer and you shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section 6.4.  Employer shall bear all costs and fees of the Accountants in connection with any calculations contemplated by this Section 6.4.
6.5    Indemnification; Insurance.  During your employment and thereafter, the Company shall, on the same basis as is provided for the Company’s continuing officers and directors from time to time, indemnify and hold you harmless against any costs or expenses (including attorneys’ fees), judgments, fines, losses, claims, damages or liabilities incurred in connection with any claim, action, suit, proceeding or investigation, whether civil, criminal, administrative or investigative, by reason of the fact that you are or were a director, officer, employee or agent of the Company or any Subsidiary, whether asserted or claimed prior to, at or after the date of your termination of employment, to the fullest extent permitted under applicable law and on a basis no less favorable than in existence under the Company’s Bylaws and Certificate of Incorporation in effect as of the Effective Date. During your employment and thereafter, Company shall provide to you coverage under a policy of directors’ and officers’ liability insurance that provides you with coverage on the same basis as is provided for the Company’s continuing officers and directors from time to time.
6.6    Other Terminations. If your employment with the Company ends, other than as described in the first sentence of Section 6.2 or Section 6.3 of this Agreement, including without limitation death or Disability, then you shall not be entitled to the benefits of Section 6 of this Agreement other than those set forth in Section 6.1.

	
			
	 
	 
	 

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7.    Confidential Information; Work Product.  
7.1    Definition of Confidential Information.  As used in this Agreement, “Confidential Information” includes, but is not limited to, any type of trade secret or other information, whether in hard-copy or electronic format or communicated orally, relating to the business of the Company that you acquire or have acquired through employment with the Company, and that has value such that the Company designates or treats the information as confidential through its policies, procedures and/or practices or provides the Company a competitive advantage.  Confidential Information is limited to information that is not generally known to competitors or that is not in the public domain through lawful means.  Confidential Information does not include information that has been voluntarily disclosed to the public by the Company (except where such public disclosure has been made in breach of a duty of confidentiality); information known to you prior to first receipt of or access to such information in the course of your employment with the Company; or information that has been independently developed and disclosed by, or rightfully received by Employee outside the course of Employee’s employment with the Company from, a third party who does not owe the Company, as applicable, a duty of confidentiality with respect to such information.  Subject to the foregoing, examples of Confidential Information include, without limitation, the following:  (i) any files, lists or other information relating to customers and compilations of any of the foregoing including, without limitation, identity of parties, correspondence, current and historical proposals, bids and quotes, and contract terms such as pricing, duration and renewal; (ii) non-published pricing and financial information and data, including, without limitation, financial and business data, product rates and pricing, cost and performance data, pricing factors, profit and profit margin data and databases; (iii) strategic, marketing and research information including, without limitation, business plans, strategies and market research data; (iv) technical information including, without limitation, software, source code, object code and other non-public intellectual property, and all internal sales, marketing, public affairs, operations and finance operating systems and the data therein; (v) product research and development including, without limitation, testing data, formulas, products in development and all other research data; and (vi) personnel information including, without limitation, performance evaluations and salary, bonus and incentive data.  For purposes of Section 7 and Section 8 of this Agreement, references to “Company” shall mean the Company and/or any of its Subsidiaries.
7.2    Non-Disclosure of Confidential Information.  You acknowledge that the Company has spent considerable time, effort and expense developing its Confidential Information and has taken reasonable measures to protect its secrecy.  You therefore acknowledge and agree that you will not, except in the normal and proper course of your duties on behalf of the Company, disclose or use, or enable anyone else to disclose or use, either during the employment term or at any time subsequent thereto, any Confidential Information without prior written approval from the Company. 
7.3    Return of the Company Property.  You agree that all documents and other materials of any kind pertaining to the business of the Company (including Confidential Information in any format) in your possession at any time during your employment are and shall be the property of the Company and that all such property, including all copies thereof and all such information contained on your personal computer(s), PDAs, or other electronic storage devices shall be surrendered by you to the Company upon the Company’s request from time to time during such employment, and with or without request upon termination of your employment.
7.4    Ownership of Property.  You acknowledge that all discoveries, concepts, ideas, inventions, innovations, improvements, developments, methods, processes, programs, designs, analyses, drawings, reports, patent applications, copyrightable work and mask work (whether or not including any confidential information) and all registrations or applications related thereto, all other proprietary information and all similar or related information (whether or not patentable) that relate to the Company’s actual or anticipated business, research and development, or existing or future products or services and that are conceived, developed, contributed to, made or reduced to practice by you (either solely or jointly with others) while employed by the Company (including any of the foregoing that constitutes any proprietary information or records) (“Work Product”) belong to the Company and you hereby assign, and agree to assign, all of the above Work Product to 

	
			
	 
	 
	 

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the Company.  Any copyrightable work prepared in whole or in part by you in the course of your work for any of the foregoing entities shall be deemed a “work made for hire” under the copyright laws and Employer or such Subsidiary shall own all rights therein.  To the extent that any such copyrightable work is not a “work made for hire,” you hereby assign and agree to assign to the Company all right, title, and interest, including without limitation, copyright in and to such copyrightable work.  You shall promptly disclose such Work Product and copyrightable work to the Manager and perform all actions reasonably requested by the Manager (whether during or after the Employment Period) to establish and confirm the Company’s ownership (including without limitation, assignments, consents, powers of attorney and other instruments).  You understand, however, that there is no obligation being imposed on you to assign any invention falling within the definition of Work Product for which no equipment, supplies, facility, or trade secret information of the Company was used and that was developed entirely on your own time, unless (i) such Work Product relates (A) to the Company’s businesses or (b) to their actual or demonstrably anticipated research or development, or (ii) the Work Product results from any work performed by you for them under this Agreement.  If no such Work Product is listed, you represent to the Company that you do not now own, nor have you ever owned, nor have you made, any such Work Product.  
7.5    Non-Disclosure of Third Party Information.  You understand that the Company will receive from third parties confidential or proprietary information (“Third Party Information”) subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. During the Employment Period and thereafter, and without in any way limiting the provisions of Subsection 7.1 and 7.2 above, you will hold Third Party Information in the strictest confidence and will not disclose to anyone (other than personnel and consultants of the Company who need to know such information in connection with their work for the Company or use, except in connection with your work for the Company Third Party Information unless expressly authorized by a member of the Board in writing.  Except as may be expressly set forth in an agreement between the Company, on the one hand, and a third party, on the other hand, relating to Third Party Information, these restrictions do not apply to any Third Party Information that (i) becomes generally known to and available for use by the public other than as a result of your acts or omissions to act, (ii) was known to you prior to your employment with the Company or (iii) is required to be disclosed pursuant to any applicable law or court order.
8.    Restrictive Covenants.  You understand and acknowledge that as a senior officer of the Company, you will have, in conjunction with other members of the senior management team of the Company, direct and indirect responsibility for overseeing,  managing and executing certain elements of the Company’s overall business plan and strategies, including, but not limited to, the Company’s growth strategies, product development, product technical specifications, data forecasts, procurement and development of relevant and competitive industry data, sales activities, maintenance of client relationships, client development, business and client development strategies, and employment, efficiency analysis and human resources strategies and requirements (the “Business”).  You understand and acknowledge that as a senior officer, your management oversight and execution responsibilities with respect to the Company’s Business includes oversight and execution over all geographic regions in which the Company operates including, but not limited to, North America, South America, Europe, Africa, Asia and Australia and all other jurisdictions where the Company and its Subsidiaries conduct business during the Employment Period in furtherance of Employer’s Business and its relationships.  You understand and acknowledge that as a senior officer of the Company, you will have and be given additional access to, solely for the purpose of furthering the Company’s Business, the Company’s Confidential Information, as defined herein,   You acknowledge that in the course of your employment with the Company as a senior officer, you will become familiar with the Company’s trade secrets and with other Confidential Information concerning the Company and that your services will be of special, unique and extraordinary value to the Company. 
8.1    Non-Competition.  You covenant and agree that at all times during your employment by the Company, and for a period of fifteen (15) months following termination of your employment for any reason or no reason, you shall not, directly or indirectly, individually or jointly, own any interest in, operate, join, control or participate as a partner, advisor, board member, director, principal, officer or agent of, enter into the employment 

	
			
	 
	 
	 

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of, act as a consultant to, or perform any services for any person or entity (other than the Company), that engages in any business activities within the Restricted Area that are competitive with the business in which the Company is engaged during the twelve (12) month period prior to the termination of your employment.  Notwithstanding anything herein to the contrary, this Section 8.1 shall not prevent you from owning not more than five percent (5%) in the aggregate of any class of capital stock of any corporation if such stock is publicly traded and listed on any national or regional stock exchange.  For purposes of this Section 8.1, “Restricted Area” means the geographic region for which you had direct or indirect responsibility on behalf of the Company including, but not limited to, North America, South America, Europe, Africa, Asia and Australia. 
8.2    Non-Interference. You acknowledge that an essential element of the business of the Company, is the development and maintenance of personal contacts and relationships with customers.  Because of these contacts and relationships, it is common for customers to develop identification with the employee who services or supervises its particular needs.  The personal identification of customers with the Company employee creates the potential for the employee’s appropriation of the benefits of the relationship developed with customers on behalf of the Company.  You also acknowledge that, as a result of being employed by the Company, you will be given access to, and will assist in the development and maintenance of, Confidential Information relating to customers.  As a result of the considerable time, effort and expense to safeguard its customer relationships and related Confidential Information, you further acknowledge that the non-interference obligations set forth herein are necessary and reasonable for the Company to protect these strong proprietary interests against unfair competition.  Therefore, at all times during your employment by the Company, and for a period of fifteen (15) months following termination of your employment for any reason or no reason:
(a)    you, except as part of your duties as an employee of the Company, shall not directly or indirectly (including as an owner, investor, lender, sole proprietor, employee, independent contractor, leased employee, consultant or otherwise), for your own benefit or on behalf of any other person or entity, for the purpose of entering into a Restricted Transaction, solicit, call on, service or enter into any agreement with any customer with whom the Company did any business within the twelve (12) month period preceding the termination of your employment with the Company, and with whom you had contact for the purpose of a Restricted Transaction, for whom you had supervisory responsibility or about whom you had access to and used Confidential Information; 
(b)    you shall not, directly or indirectly, for your own benefit or on behalf of any other person or entity, (i) solicit, induce or encourage any employee of the Company with whom you had material contact or about whom you had access to Confidential Information to leave such employee’s employment with the Company or to cease such employee’s relationship with the Company; or (ii) hire or attempt to hire any employee of the Company with whom you had material contact or about whom you had access to Confidential Information (notwithstanding the foregoing, the hiring of any employee who responds to a general advertisement for employment which is not targeted at Company employees or the hiring of your personal assistant shall not be treated as a violation of this Section 8.2).
(c)    encourage (or assist another in encouraging) any supplier, business partner, or vendor of the Company with whom you had any contact on behalf of the Company within the last twenty-four months of your employment with the Company or about whom you had access to Confidential Information to terminate or diminish its relationship with the Company. 
For purposes of this Section 8.2, “Restricted Transaction” means the marketing, selling and/or providing of products or services of the type marketed, sold, actively developed or provided by the Company during the twelve (12) month period prior to the termination of Employee’s employment, including:  (a) software services for the automobile claims processing industry; and (b) automated insurance claims management, solutions or services.

	
			
	 
	 
	 

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8.3    Enforcement.  You acknowledge and agree that the Company has advised you to seek independent legal counsel with respect to your rights and obligations under this Agreement, and has agreed to pay for your reasonable attorneys’ fees and costs associated with same up to limit set forth in Section 11.4. You agree and acknowledge that the restrictions contained in Sections 7 and 8 do not preclude you from earning a livelihood, nor do they unreasonably impose limitations on your ability to earn a living.  You further acknowledge (i) that the business of the Company is and will be conducted throughout North America, Europe and other jurisdictions where the Company conducts business during the Employment Period, (ii) notwithstanding the state of organization or principal office of Employer or any Subsidiary, or any of their respective executives or employees (including you), it is expected that Employer will have business activities and have valuable business relationships within its industry throughout North America, Europe and other jurisdictions where the Company and its Subsidiaries conduct business during the Employment Period in furtherance of Employer’s business and its relationships; and (iii) that in your capacity as a senior officer, you have direct or indirect responsibility and management oversight for each such geographic region on behalf of the Company. You agree and acknowledge that the potential harm to the Employer of the non-enforcement of Sections 7 and 8 outweighs any potential harm to you of its enforcement by injunction or otherwise.  You acknowledge that you have carefully read this Agreement and have given careful consideration to the restraints imposed on you by this Agreement, and you are in full accord as to their necessity for the reasonable and proper protection of confidential and proprietary information of Employer now existing or to be developed in the future.  You expressly acknowledge and agree that each and every restraint imposed by this agreement is reasonable with respect to subject matter, time period and geographical area.  In the event you breach any provision hereof, the Company shall be entitled to entry of an injunction prohibiting the same, in addition to any other remedy or relief that may be available to the Company at law or in equity.  If you breach any provision herein, the time periods relating to the restrictions in Sections 7 and 8 above shall be extended for a period of time equal to that period of time during which you are determined to be in breach.  If litigation is initiated with respect to this Agreement, the prevailing party shall be entitled to recover any reasonable attorneys’ fees and costs incurred in such litigation, including any such costs and fees upon appeal.
9.    Definitions.  
9.1    “Cause” means (i) the conviction or plea of guilty or no contest for or indictment on a felony or a crime involving moral turpitude or the commission of any other act or omission involving misappropriation, embezzlement or fraud, which involves a material matter with respect to the Company or any Subsidiary or any of their customers or suppliers; (ii) substantial and repeated failure to perform duties of the office you hold as reasonably directed by the Manager after notice from the Manager and a reasonable opportunity to respond to such notice; (iii) gross negligence or willful misconduct with respect to the Company or any Subsidiary that is or could reasonably be expected to be harmful to the Company or any Subsidiary in any material respect after notice from the Manager and a reasonable opportunity to respond to such notice; (iv) conduct tending to bring the Company or any Subsidiary into substantial public disgrace or disrepute after notice from the Manager and a reasonable opportunity to respond to such notice, and (v) any breach by you of your obligations under this Agreement.
9.2    “Change in Control” means the occurrence, in a single transaction or series of transactions, of any of the following events: (i) any Person becomes the direct or indirect beneficial owner (as defined in Rule 13d-3 of the Securities Exchange Act of 1934, as amended) of securities representing a majority of the total voting power of the Company’s then-outstanding voting securities, (ii) the consummation of a plan of complete liquidation of the Company or the consummation of the sale or disposition by the Company of all or substantially all of its assets, (iii) the consummation of a merger or consolidation of the Company with any other corporation, other than (A) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) more than 50 percent of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation or (B) a merger or consolidation whose sole purpose is to change the state of the Company’s 

	
			
	 
	 
	 

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incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately prior to the transaction or (iv) a change in the composition of the Board occurring within a two-year period, as a result of which fewer than a majority of the directors are Incumbent Directors.  “Incumbent Directors” are directors who were members of the Board on the Effective Date or who were nominated or elected as directors subsequent to the Effective Date by at least a majority of the directors who were Incumbent Directors at the time of such nomination or election or whose election to the Board was recommended or endorsed by at least a majority of the directors who were Incumbent Directors at the time of such nomination or election, provided however, that no director whose election was the result of an actual or threatened election contest shall be an Incumbent Director.
9.3    “Disability” means your disability caused by any physical or mental injury, illness or incapacity as a result of which you are or will be unable to effectively perform the essential functions of your duties, even with a reasonable accommodation that does not impose an undue hardship on the Company, for a continuous period of more than 90 days or for 120 days (whether or not continuous) within a 180 day period, as determined by the Board in good faith.
9.4    “Good Reason” means (i) a material reduction (more than five (5) percent) in your Annual Base Salary, from your Annual Base Salary as in effect immediately prior to a Change in Control (ii) a material diminution in your duties or responsibilities inconsistent with your position as in effect immediately prior to a Change in Control (iii) a change in your principal office to a location more than twenty-give (25) miles from the location of your principal office as of immediately prior to a Change in Control provided such location is also more than 50 miles from your principal residence as of the date of relocation, or (iv) the failure of Employer to obtain the assumption (by operation of law, the continuation of the corporate existence of the Company, Solera, Inc. or otherwise) of this Agreement or substitution of a substantially similar agreement by any successors in a Change of Control, in each case occurring in connection with or within twenty-four months after a Change in Control and without your prior written consent; provided that you must deliver written notice of your resignation to the Company within 30 days of your actual knowledge of any such event, the Company must be provided at least 30 days during which it may remedy the condition and you must terminate your employment within six months of the initial occurrence of Good Reason in order for such resignation to be with Good Reason for any purpose hereunder.
9.5    “Person” means an individual, a partnership, a limited liability company, a corporation, an association, a joint stock company, a trust, a joint venture, an unincorporated organization, investment fund, any other business entity and a governmental entity or any department, agency or political subdivision thereof.
9.6    “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, including Solera, Inc.

	
			
	 
	 
	 

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10.    Compensation Recovery (Clawback).  Any amounts of compensation paid or awarded to you under this Agreement shall be subject to compensation recovery (clawback) to the extent required by applicable law or regulations in the event the Company is required to prepare an accounting restatement due to the material noncompliance of the Company with any financial reporting requirements under the securities laws and the amounts received based on erroneous data were  in excess of what would have been received by you had such noncompliance not occurred.
11.    Miscellaneous.
11.1    Arbitration; Court Action; Attorneys’ Fees.  The parties agree that any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be submitted to the American Arbitration Association (“AAA”) and that three (3) neutral arbitrators will be selected in a manner consistent with the AAA Employment Arbitration Rules and Mediation Procedures.  The arbitration proceedings will allow for discovery according to the rules set forth in the Employment Arbitration Rules and Mediation Procedures (the “Rules”).  All arbitration proceedings shall be conducted in Dallas County, Texas.  The parties are entitled to representation by an attorney or other representative of their choosing.  The Company shall bear the costs of the arbitration filing and hearing fees and the cost of the arbitrator.
Except as provided by the Rules, arbitration shall be the sole, exclusive and final remedy for any dispute between you and the Company relating to this Agreement (other than Sections 7 and 8 hereof), the employment relationship between you and the Company and any disputes upon termination of employment, other than claims for workers’ compensation, unemployment insurance benefits, breach of any employee innovations and proprietary rights agreements (including Sections 7 and 8 of this Agreement) between you and the Company or rights to indemnification by the Company.  Accordingly, except as provided for by the Rules or as provided in the prior sentence, neither you nor the Company will be permitted to pursue court action regarding claims that are subject to arbitration.  Either party may exercise the right to arbitrate by providing the other party with written notice of any and all claims forming the basis of such right in sufficient detail to inform the other party of the substance of such claims.  Notwithstanding the foregoing, in the event you breach or threaten to breach any provision in Sections 7 or 8 hereof, the Company shall be entitled to entry of an injunction prohibiting same, in addition to any other remedy or relief that may be available to Company at law or in equity.  In the event of a breach or threatened breach of any such covenant, you agree that, in addition to any other remedies available at law or equity, the Company may file litigation against you seeking specific performance and temporary and/or preliminary injunctive relief, enjoining or restraining such breach, and Employee consents to the issuance of such injunctive relief without bond.  You also agree that if Company initiates litigation seeking to enforce this confirm an arbitration award, Company shall be entitled to recover from you reasonable attorney’s fees and costs incurred in such litigation, including all reasonable and necessary attorneys fees and costs arising from a successful appeal. 
Notwithstanding anything set forth herein, the parties’ arbitration agreement set forth in this Section 11.1 shall expire immediately following a Change in Control.  Following the arbitration expiration date, the parties agree that any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be submitted for resolution only to the courts located within Dallas County, Texas.  Any court action relating to the interpretation of enforcement of this Agreement shall be subject to Section 11.13 of this Agreement.
In the event of any claim, demand or suit arising out of or with respect to this Agreement, the prevailing party with respect to at least one material claim shall be entitled to reasonable and necessary costs and attorneys’ fees, including any reasonable and necessary costs and fees arising from a successful 

	
			
	 
	 
	 

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appeal. 
11.2    Code Section 409A; Six Month Holdback.  To the extent (i) any payments to which you become entitled under this agreement, or any agreement or plan referenced herein, in connection with your separation of service from the Company constitute deferred compensation subject to Section 409A of the Code and (ii) you are deemed by the Company at the time of such separation of service to be a “specified” employee under Section 409A of the Code, as determined by Employer, by which determination you agree that you are bound, then such payment shall not be made or commence until the earliest of (i) the expiration of the six (6)-month period measured from the date of your “separation from service” (as such term is defined below; (ii) the date you become “disabled” (as defined in Section 409A of the Code); or (iii) the date of your death following such separation from service; provided, however, that such deferral shall only be effected to the extent required to avoid adverse tax treatment to you, including (without limitation) the additional twenty percent (20%) tax for which you would otherwise be liable under Section 409A(a)(1)(B) of the Code in the absence of such deferral.  Upon the expiration of the applicable deferral period, any payments which would have otherwise been made during that period (whether in a single sum or in installments) in the absence of this paragraph shall be paid to you or your beneficiary in one lump sum.  With respect to any determination that the benefits provided for in this Agreement are subject to Section 409A, then each payment is a separate payment and, to the extent any payment under this Agreement may be classified as a “short-term deferral” within the meaning of Section 409A, such payment shall be deemed a short-term deferral, even if it may also qualify for an exemption from Section 409A under another provision of Section 409A.  For purposes of this Agreement, Separation or termination of your employment with, or resignation from, the Company or any Subsidiary shall mean “separation from service” within the meaning of Section 409A of the Code and Section 1.409A-1(h) of the regulations promulgated under the Code or any successor regulations.  In any event, Employer makes no representations or warranty and shall have no liability to you or any other person if any provisions of or payments under this Agreement are determined to constitute deferred compensation subject to Code Section 409A but not to satisfy the conditions of that section.
11.3    Insurance.  Employer, at its discretion, may apply for and procure in its own name and for its own benefit life and/or disability insurance on you in any amount or amounts considered available. You agree to cooperate in any reasonable medical or other examination, supply any information, and execute and deliver any applications or other instruments in writing as may be reasonably necessary to obtain and constitute such insurance. 
11.4    Severability.  In the event that any part or provision of this Agreement shall be held to be invalid or unenforceable by any arbitrator or court of competent jurisdiction, the remaining provisions thereof shall nevertheless continue to be valid and enforceable as though the invalid or unenforceable part or provision had not been included therein.  Further, in the event that any part or provision hereof shall be declared by a court of competent jurisdiction to exceed the maximum time period, scope or activity restriction that such court deems reasonable and enforceable, then the parties expressly authorize the court to modify such part or provision so that it may be enforced to the maximum extent permitted by law.
11.5    No Waiver.  The failure by either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way affect the right to require such performance or compliance at any time thereafter.  The waiver by either party of a breach of any provision hereof shall not be taken or held to be a waiver of any preceding or succeeding breach of such provision or as a waiver of the provision itself.  No waiver of any kind shall be effective or binding, unless it is in writing and is signed by the party against whom such waiver is sought to be enforced.
11.6    Assignment.  This Agreement and all rights hereunder are personal to you and may not be transferred or assigned by you at any time.  Employer may assign its rights, together with its obligations hereunder, to any parent, subsidiary or successor, or in connection with any sale, transfer or other disposition of all or substantially all of its business and assets provided, however, that any such assignee assumes Employer’s 

	
			
	 
	 
	 

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obligations hereunder.
11.7    Withholding.  All sums payable to you hereunder shall be reduced by all federal, state, local and other withholding and similar taxes and payments required by applicable law.
11.8    Entire Agreement.  Except as set forth in Section 1, this Agreement (and Exhibit A hereto) constitutes the entire and only agreement and understanding between the parties relating to your employment with Employer.  This Agreement supersedes and cancels any and all previous contracts, arrangements or understandings with respect to your employment to the extent, and only to the extent, set forth in Section 1 hereof.
11.9    Amendment.  The parties understand and agree that this Agreement may not be amended, modified or waived, in whole or in part, except in a writing executed by you and the Manager.
11.10    Notices.  All notices, if any, and all other communications, if any, required or permitted under this Agreement shall be in writing and hand delivered, sent via facsimile, sent by registered first class mail, postage pre-paid, or sent by nationally recognized express courier service.  Such notices and other communications shall be effective upon receipt if hand delivered or sent via facsimile, five (5) days after mailing if sent by mail, and one (l) day after dispatch if sent by express courier, to the following addresses, or such other addresses as any party shall notify the other parties:
If to the Company:    Solera Holdings, Inc. 
            7 Village Circle, Suite 100 
            Westlake, Texas 76262 
        Telecopier:    858-430-3578 
        Attention:    Chief Executive Officer
		
	If to you:
	Contact information on file

11.11    Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original but all of which, taken together, constitute one and the same agreement.
11.12    Governing Law; Venue.  This Agreement and the rights and obligations of the parties hereto shall be construed in accordance with the laws of the State of Texas, without giving effect to the principles of conflict of laws.  The parties hereto hereby irrevocably submit to the exclusive jurisdiction of the state courts located within Dallas County, Texas (or, if applicable, the county in Texas in which Executive resides) in respect of the interpretation and enforcement of the provisions of this Agreement and the matters contemplated hereby, and hereby waive, and agree not to assert, as a defense in any action, suit or proceeding for the interpretation or enforcement hereof, that it is not subject thereto or that such action, suit or proceeding may not be brought or is not maintainable in said courts or that the venue thereof may not be appropriate or that this Agreement or any matter contemplated hereby may not be enforced in or by such courts, and the parties hereto irrevocably agree that all claims with respect to such action or proceeding shall be heard and determined in such courts.  The parties hereby consent to and grant any such court jurisdiction over the person of such parties and over the subject matter of such dispute.

	
			
	 
	 
	 

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IN WITNESS WHEREOF, the Company and you have executed this Agreement as of the date first above written.
	
	
	Solera Holdings, Inc.   
By: /s/ Anthony Aquila
Print Name: Anthony Aquila    

Title: Chairman and CEO    

	 

	Renato Giger
/s/ Renato Giger   

EXHIBIT A 
GENERAL RELEASE AGREEMENT
		
	1.
	In consideration of the severance benefits (the “Severance”) offered to me by Solera Holdings, including all direct and indirect subsidiaries and affiliated entities (collectively, “Employer”) pursuant to my Executive Employment Agreement with Employer effective as of September 4, 2012 (the “Agreement”) and in connection with the termination of my employment, I agree to the following general release (the “Release”).

		
	2.
	On behalf of myself, my heirs, executors, administrators, successors, and assigns, I hereby fully and forever generally release and discharge Employer, its current, former and future parents, subsidiaries, affiliated companies, related entities, employee benefit plans, and their fiduciaries, predecessors, successors, officers, directors, shareholders, agents, employees and assigns (collectively, the “Company”) from any and all claims, causes of action, and liabilities up through the date of my execution of the Release.  The claims subject to this release include, but are not limited to, those relating to my employment with Employer and/or any predecessor or successor to Employer and the termination of such employment.  All such claims (including related attorneys’ fees and costs) are barred without regard to whether those claims are based on any alleged breach of a duty arising in statute, contract, or tort.  This expressly includes waiver and release of any rights and claims arising under any and all laws, rules, regulations, and ordinances, including, but not limited to:  Title VII of the Civil Rights Act of 1964; the Older Workers Benefit Protection Act; the Americans With Disabilities Act; the Age Discrimination in Employment Act; the National Labor Relations Act; the Family and Medical Leave Act; the Employee Retirement Income Security Act of 1974, as amended (“ERISA”); the Workers Adjustment and Retraining Notification Act; the Texas Fair Employment and Housing Act (if applicable); the provisions of the Texas Labor Code (if applicable); the Equal Pay Act of 1963; and any similar law of any other state or governmental entity. [Other statutes to be added by Employer based on changes in law, situation, or state of residence.] The parties agree to apply Texas law in interpreting the Release.  

		
	3.
	This Release does not extend to, and has no effect upon, any benefits that have accrued, and to which I have become vested, under any employee benefit plan within the meaning of ERISA sponsored by the Company.

		
	4.
	In understanding the terms of the Release and my rights, I have been advised to consult with an attorney of my choice prior to executing the Release.  I understand that nothing in this Release is intended to constitute an unlawful release or waiver of any of my rights under any laws and/or to prevent, impede, or interfere with my ability and/or right to:  (a) provide truthful testimony if under subpoena to do so, (b) file a claim with any state or federal agency or to participate or cooperate in such a matter, and/or (c) challenge the validity of this Release.  Furthermore, notwithstanding any provisions and covenants herein, the Release shall not waive (a) any rights to indemnification I may have as an officer or director of Employer or otherwise in connection with my employment with Employer, under Employer’s bylaws or other governing instruments or any agreement addressing such subject matter between Employer and me or under any merger or acquisition agreement addressing such subject matter, including such rights as set forth in Section 6.6 of the Agreement, which rights remain in effect, (b) any obligations owed to me pursuant to the Agreement, (c) my rights of insurance under any liability policy covering Employer’s officers or directors, or (d) any accrued but unpaid wages; any reimbursement for business expenses pursuant to Employer’s policies for such reimbursements, any outstanding claims for benefits or payments under any benefit plans of Employer or subsidiaries, any accrued but unused vacation,  any ongoing agreements evidencing outstanding equity awards granted to me, any obligations owed to me pursuant to the terms of outstanding written agreements between myself and Employer and any claims I may not release as a matter of law, including indemnification claims under applicable law.  To the fullest extent permitted by law, any dispute regarding the scope of this general release shall be resolved through binding arbitration pursuant to Section 9 below and the arbitration provision set forth in the Agreement.

		
	5.
	I understand and agree that Employer will not provide me with the Severance Payments set forth in the Agreement unless I execute the Release.  I also understand that I have received or will receive, regardless of the execution of the Release, all wages owed to me together with any accrued but unused vacation pay, less applicable withholdings and deductions, earned through my termination date. 

		
	6.
	As part of my existing and continuing obligations to Employer, I have returned to Employer all documents (and all copies thereof) and other property belonging to Employer that I have had in my possession at any time, including but not limited to files, notes, drawings, records, business plans and forecasts, financial information, specification, computer-recorded information, tangible property (including, but not limited to, computers, laptops, pagers, etc.), credit cards, entry cards, identification badges and keys; and any materials of any kind which contain or embody any proprietary or confidential information of Employer (and all reproductions thereof).  I understand that, even if I did not sign the Release, I am still bound by any and all confidential/proprietary/trade secret information, non-disclosure and inventions assignment agreement(s) signed by me in connection with my employment with Employer, or with a predecessor or successor of Employer, pursuant to the terms of such agreement(s). 

		
	7.
	I represent and warrant that I am the sole owner of all claims relating to my employment with Employer and/or with any predecessor of Employer, and that I have not assigned or transferred any claims relating to my employment to any other person or entity. 

		
	8.
	I understand and agree that the Release shall not be construed at any time as an admission of liability or wrongdoing by either the Company or me.

		
	9.
	Any controversy or any claim arising out of or relating to the interpretation, enforceability or breach of the Release shall be settled by arbitration in accordance with Section 11.1 of the Agreement.  If for any reason the arbitration procedure set forth in Section 11.1 of the Agreement is unavailable, I agree to arbitration under the employment arbitration rules of the American Arbitration Association or any successor hereto.  The parties further agree that the arbitrator shall not be empowered to add to, subtract from, or modify, alter or amend the terms of the Release.  Any applicable arbitration rules or policies shall be interpreted in a manner so as to ensure their enforceability under applicable state or federal law. 

		
	10.
	I agree that I have had at least twenty-one (21) calendar days in which to consider whether to execute the Release, no one hurried me into executing the Release during that period, no one coerced me into executing the Release, and I am receiving consideration by signing the Release that is in excess of what I would have received without signing the Release and which consideration is sufficient.  I understand that the offer of the Severance and the Release shall expire on the twenty-second (22nd) calendar day after my employment termination date if I have not accepted it by that time.  I further understand that Employer’s obligations under the Release shall not become effective or enforceable until the eighth (8th) calendar day after the date I sign the Release provided that I have timely delivered it to Employer (the “Release Effective Date”) and that in the seven (7) day period following the date I deliver a signed copy of the Release to Employer I understand that I may revoke my acceptance of the Release.  

		
	11.
	In executing the Release, I acknowledge that I have not relied upon any statement made by Employer, or any of its representatives or employees, with regard to the Release unless the representation is specifically included herein.  Furthermore, the Release and the Agreement contain our entire understanding regarding eligibility for and the payment of severance benefits and supersede any or all prior representations and agreements regarding the subject matter.  Once effective and enforceable, this agreement can only be changed by another written agreement signed by me and an authorized representative of Employer. 

		
	12.
	Should any provision of the Release be determined by an arbitrator, court of competent jurisdiction, or government agency to be wholly or partially invalid or unenforceable, the legality, validity and enforceability of the remaining parts, terms, or provisions are intended to remain in full force and effect. Specifically, should a court, arbitrator, or agency conclude that a particular claim may not be released as a matter of law, it is the intention of the parties that the general release and the waiver of unknown claims above shall otherwise remain effective to release any and all other claims.  I acknowledge that I have obtained sufficient information to intelligently exercise my own judgment regarding the terms of the Release before executing the Release. 

EXECUTIVE’S ACCEPTANCE OF RELEASE
BEFORE SIGNING MY NAME TO THE RELEASE, I STATE THE FOLLOWING:  I HAVE READ THE RELEASE, I UNDERSTAND IT AND I KNOW THAT I AM GIVING UP IMPORTANT RIGHTS.  I HAVE OBTAINED SUFFICIENT INFORMATION TO INTELLIGENTLY EXERCISE MY OWN JUDGMENT. I HAVE BEEN ADVISED THAT I SHOULD CONSULT WITH AN ATTORNEY BEFORE SIGNING IT, AND I HAVE SIGNED THE RELEASE KNOWINGLY AND VOLUNTARILY.

Date delivered to employee ___________, ______.
Executed this ___________ day of ___________, ______.

                    
Signature
                    
Name (Please Print)

	
			
	 
	 
	 

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CHICAGO/#2358909.3

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