Document:

Exhibit 10.3(c)

 

Execution Copy

 

SECURITYHOLDERS
AGREEMENT

 

THIS SECURITYHOLDERS AGREEMENT
(this “Agreement”) is made as of June 29, 2007 by and among (i) Varietal
Distribution Holdings, LLC, a Delaware limited liability company (the “Company”),
(ii) Madison Dearborn Capital Partners V-A, L.P., a Delaware limited
partnership (“MDCP-A”), Madison Dearborn Capital Partners V-C, L.P., a
Delaware limited partnership (“MDCP-C”), Madison Dearborn Capital
Partners V Executive-A, L.P., a Delaware limited partnership (“MDCP
Executive”), MDCP Co-Investors (Varietal), L.P., a Delaware limited
partnership (“MDCP Co-Invest 1”), and MDCP Co-Investors (Varietal-2),
L.P., a Delaware limited partnership (“MDCP Co-Invest 2”), and any other
investment fund managed by Madison Dearborn Partners, LLC, a Delaware limited
liability company (“MDCP LLC”), that at any time acquires securities of
the Company in accordance with this Agreement and the LLC Agreement
(collectively, the “Investors” and each an “Investor”), (iii)
each Person that joins this Agreement as an “Executive,” each Person that
acquires securities of the Company from an Executive (other than the Company or
the Investors) pursuant to this Agreement and the LLC Agreement and any other
Person that was or is an employee of the Company or its Subsidiaries who, at
any time, acquires securities of the Company in accordance with this Agreement
and the LLC Agreement, in each case, that executes a counterpart of this
Agreement or otherwise agrees to be bound by this Agreement (each, an “Executive”
and collectively, the “Executives”), and (iv) each Person that is not an
Investor or an Executive who, at any time, acquires securities of the Company
in accordance with this Agreement and the LLC Agreement and that executes a
counterpart of this Agreement or otherwise agrees to be bound by this Agreement
(each an “Other Securityholder” and collectively, the “Other
Securityholders”). The Investors, the Executives and the Other
Securityholders are collectively referred to herein as the “Securityholders”
and individually as a “Securityholder.” 
Capitalized terms used but not otherwise defined herein are defined in Section 17
hereof; provided that, if any such term is not defined herein, then such
term shall have the same meaning assigned to it in the LLC Agreement (as
hereinafter defined).

 

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

 

WHEREAS, the Executives will acquire Class A Common
Units and/or Class A Preferred Units pursuant to the Management Unit Purchase
Agreements between the Executives and the Company dated as of the date hereof;
and

 

WHEREAS, the Company and the Securityholders desire to
enter into this Agreement for the purposes, among others, of (i) limiting the
manner and terms by which units and interests in the Company may be
transferred, (ii) assuring continuity in the ownership of the Company and (iii)
providing registration rights to the Securityholders. The execution and
delivery of this Agreement is a condition to the Investors entering into to the
Purchase Agreement.

 

 

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

 

1.                                       Restrictions
on Transfer.

 

(a)                                  Transfer
of Securities. No holder of Securities (other than the Investors (subject
to Section 2)) shall Transfer any interest in Securities without the
prior written consent of the holders of a majority of the Investor Securities
except Transfers (i) to a Permitted Transferee in accordance with Section
1(b) hereof, (ii) as a Tag-Along Securityholder pursuant to Section 2
hereof, (iii) in the case of an Other Securityholder only, in accordance with Section 3
of hereof and (iv) in an Approved Sale pursuant to Section 5 hereof.

 

(b)                                 Permitted
Transfers. The restrictions set forth in Section 1(a) and in Section
2 shall not apply to (i) any Transfer of Securities by any Securityholder
(A) who is an individual to or among his or her Family Group or (B) that is an
entity to or among its Affiliates, (ii) any Transfer of Securities to the
Company or as required in connection with the exercise of a Repurchase Option
or any Put Option (as each term is defined in an applicable Management Unit
Purchase Agreement) pursuant to an applicable Management Unit Repurchase
Agreement, (iii) a Transfer required by Section 15.7 of the LLC
Agreement in accordance therewith, (iv) in the case of an Investor or Other
Securityholder, subject to Section 10, a sale of Class A Common Units in
a Public Sale, (v) in the case of an Executive, subject to Section 10, a
sale of Class A Common Units in a Public Sale to the extent provided in Section
1(d) below, or (vi) in the case of an Executive, subject to Section 10,
a sale of Class A Common Units in a Public Sale after the earlier of (x) the
first anniversary of the consummation of a Qualified Public Offering and (y)
with respect to a particular Executive, the date that is six months following
the date of the termination of such Executive’s employment with the Company or
its Subsidiaries.

 

(c)                                  Other
Permitted Transfer Provisions. Notwithstanding anything to the contrary
contained herein, the restrictions contained in this Agreement will continue to
be applicable to the Securities after any Transfer pursuant to clause (i)
of Section 1(b) and the transferee of such Securities shall agree in
writing to be bound by the provisions of this Agreement, the LLC Agreement and,
in the case of a Transfer from an Executive, shall agree to be bound by the
provisions of the applicable Management Unit Purchase Agreement(s), the Plan
and/or any other agreements pursuant to which such Units were originally issued.
Upon the Transfer of Securities pursuant to clause (i) of Section
1(b), the transferees will deliver a written notice to the Company, which
notice will disclose in reasonable detail the identity of such transferee. A
transferee permitted pursuant to Section 1(b) and this Section 1(c)
who receives a transfer of Securities in accordance with this Agreement shall
be referred to herein as a “Permitted Transferee.”  Notwithstanding the foregoing, no party
hereto shall avoid the provisions of this Agreement by (i) making one or more
transfers to one or more Permitted Transferees and then disposing of all or any
portion of such party’s interest in any such Permitted Transferee or (ii)
Transferring the securities of any entity holding (directly or indirectly)
Securities. Notwithstanding the foregoing, each of the GSMP Investors shall
have the right to transfer their interests in the Company if and to the extent
provided in separate written 

 

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agreements, if any, between the GSMP Investors and the
Company that are approved by the Board.

 

(d)                                 Executive
Transfers Following a Qualified Public Offering. An Executive may only sell
Class A Common Units in a Public Sale following a Qualified Public Offering
pursuant to clause (v) of Section 1(b) at such time as the
Investors sell Class A Common Units in a Public Sale and then only up to a
number of Class A Common Units (a “Transfer Amount”) equal to the lesser
of (A) the number of Vested Common Units that are Class A Common Units owned by
Executive prior to such Public Sale and (B) the result of the number of Class A
Common Units owned by Executive prior to such Public Sale (excluding for this
purpose Class A Common Units that are already transferable by Executive in a
Public Sale as a result of one or more Transfer Amounts available to Executive
as a result of the application of the next occurring proviso below) multiplied
by a fraction (the “Transfer Fraction”), the numerator of which is the
number of Class A Common Units sold by the Investors in such Public Sale and
the denominator of which is the total number of Class A Common Units held by
the Investors prior to such Public Sale, provided that, if at the time of a
Public Sale of units by the Investors, Executive chooses not to Transfer the
Transfer Amount, Executive shall retain the right to Transfer an amount of
Class A Common Units at a future date equal to the lesser of (x) the number of
Vested Common Units that are Class A Common Units owned by Executive at such
future date and (y) such Transfer Amount, provided  further that
any in-kind distributions of Class A Common Units by the Investors to their
limited partners and any private sale of Class A Common Units by the Investors
shall be deemed to be a Public Sale for purposes of this Section 1(d). Prior
to a Qualified Public Offering, the Board may, in individual cases or in the
general case, make exceptions to the restrictions on transfer set forth in this
Section 1(c). Upon the written request from time to time of an
Executive, the Company shall provide to such Executive the number of Class A
Common Units that such Executive may transfer in a Public Sale in reliance on
this Section 1(d) subject to the terms and conditions hereof.

 

(e)                                  Termination
of Restrictions. The restrictions on the Transfer of Securities set forth
in this Section 1 shall continue with respect to a Security until the
earlier of the date on which such Security has been transferred (i) in a Public
Sale permitted hereby, (ii) by a Tag-Along Securityholder pursuant to Section
2, and (iii) pursuant to a Sale of the Company that meets the conditions
for Transfer set forth in this Section 1.

 

2.                                       Participation
Rights.

 

(a)                                  At
least 20 days prior to any Transfer of units of any class of Securities by one
or more of the Investors (each, a “Transferring Investor”), such
Transferring Investor(s) shall deliver a written notice (the “Tag-Along
Notice”) to the Company and the other Securityholders (the “Tag-Along
Securityholders”) specifying in reasonable detail the identity of the
prospective transferee(s) and the terms and conditions of the Transfer. The
Tag-Along Securityholders may elect to participate in the contemplated Transfer
by delivering written notice to each of the Transferring Investor(s) within 15
days after delivery of the Tag-Along Notice. If any Tag-Along Securityholders
have elected to participate in such Transfer, the Transferring Investor(s) and
such Tag-Along Securityholders will each be entitled to sell in the contemplated
Transfer, at the same price and on the same terms, a number of units of such
class of Securities proposed to 

 

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be transferred equal to the product of (A) the
quotient determined by dividing the number of units of such class of Securities
owned by such Person by the aggregate number of outstanding units of such class
of Securities owned by the Transferring Investor(s) and the Tag-Along
Securityholders participating in such sale and (B) the number of units of such
class of Securities to be sold in the contemplated Transfer.

 

(b)                                 The
Transferring Investor(s) will use commercially reasonable efforts to obtain the
agreement of the prospective transferee(s) to the participation of the
Tag-Along Securityholders in any contemplated Transfer, and the Transferring
Investor(s) will not transfer any of its Securities to the prospective
transferee(s) unless (A) the prospective transferee(s) agrees to allow the
participation of the Tag-Along Securityholders or (B) the Transferring
Investor(s) agrees to purchase the number of such class of Securities from the
Tag-Along Securityholders that the Tag-Along Securityholders would have been
entitled to sell pursuant to this Section 2(b) for the consideration per
unit to be paid to the Transferring Investor(s) by the prospective
transferee(s).

 

(c)                                  The
restrictions in this Section 2 will not apply with respect to
(i) Transfers to Permitted Transferees, (ii) Transfers by the Investors of
up to 10% (in the aggregate, after giving effect to all prior sales and the
sale at issue) of each class of Securities held by them on the date hereof to
employees of, consultants to and advisors to (or any entity formed for their
benefit) the Investors, the Company or any of their respective Affiliates
and/or (iii) Transfers on or prior to the first anniversary of the date hereof
by the Investors of up to 3,388,065 Class A Common Units (in the aggregate,
after giving effect to all prior sales and the sale at issue) and up to 376,038
Class A Preferred Units (in the aggregate, after giving effect to all prior
sales and the sale at issue) to one or more Persons (a Person acquiring
Securities from an Investor in reliance on this clause (iii), an “Investor
Transferee”). Each Investor Transferee shall join this Agreement in the
capacity of an Other Securityholder; provided that, solely for purposes
of this Section 2, such Investor Transferee shall be subject to the
restrictions on Transfer set forth in this Section 2 as if such Investor
Transferee were treated as an Investor for purposes of this Section 2 (provided
that the exceptions contained in clauses (ii) and (iii) of this Section 2(c)
shall not be available to such Investor Transferee).

 

(d)                                 The
restrictions on the Transfer of Securities set forth in this Section 2
shall terminate with respect to a Security upon its Transfer pursuant to this Section
2, subject to the last sentence of Section 2(c).

 

(e)                                  This
Section 2 shall terminate upon the first to occur of (i) immediately
after the consummation of a Sale of the Company and (ii) the consummation of a
Qualified Public Offering and will not apply to a Transfer which is a Public
Sale.

 

3.                                       First
Refusal Rights.

 

(a)                                  Prior
to making any Transfer of Securities and after obtaining the consent of the holders
of a majority of the Investor Securities to such Transfer, any Other
Securityholder desiring to make such Transfer (the “Transferring
Securityholder”) will give written notice (the “Sale Notice”) to the
Company and the holders of Investor Securities (collectively, the “Sale 

 

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Notice Recipients”). The Sale Notice
will disclose in reasonable detail the identity of the prospective
transferee(s), the number of units of Securities to be transferred and the
terms and conditions of the proposed transfer. Such Transferring Securityholder
will not consummate any Transfer until 45 days after the Sale Notice has been
given to the Sale Notice Recipients, unless the parties to the Transfer have
been finally determined pursuant to this Section 3 prior to the
expiration of such 45-day period. (The date of the first to occur of such
events is referred to herein as the “Authorization Date”.)

 

(b)                                 The
Company may elect to purchase all (but not less than all) of such Securities to
be transferred upon the same terms and conditions as those set forth in the
Sale Notice by delivering a written notice of such election to the Transferring
Securityholder and the Sale Notice Recipients (other than the Company) within
20 days after the Sale Notice has been given to the Company. If the Company has
not elected to purchase all of the Securities to be transferred, the Investors
may elect to purchase all (but not less than all) of the Securities to be
transferred upon the same terms and conditions as those set forth in the Sale
Notice by giving written notice of such election to such Transferring
Securityholder and the Sale Notice Recipients (other than the Company) within
25 days after the Sale Notice has been given to the Investors. If more than one
Investor elects to purchase the Securities to be transferred, the units of
Securities to be sold shall be allocated among such Investors pro rata in
accordance with their relative holdings of Class A Common Units. If neither the
Company nor the Investors elect to purchase all of the Securities specified in
the Sale Notice, the Transferring Securityholder may transfer the Securities
specified in the Sale Notice at a price and on terms no more favorable to the
transferee(s) thereof than specified in the Sale Notice during the 60-day
period immediately following the Authorization Date. Any Securities not
Transferred within such 60-day period will be subject to the provisions of this
Section 3 upon subsequent Transfer. The Company may pay the purchase
price for such units by offsetting amounts outstanding under any bona fide
debts owed by the Transferring Securityholder to the Company. Notwithstanding
anything herein to the contrary, except pursuant to Section 3(d), in no
event shall any Transfer of Securities pursuant to this Section 3 be
made for any consideration other than cash payable upon consummation of such
Transfer.

 

(c)                                  Unless
otherwise determined by the holders of a majority of the Investor Securities,
the provisions of this Agreement and the LLC Agreement will continue to be
applicable to the Securities after any Transfer pursuant to this Section 3
and the transferee of such Securities shall agree in writing to be bound by the
provisions of this Agreement and the LLC Agreement as a condition to such
Transfer.

 

(d)                                 The
restrictions of this Section 3 will not apply with respect to Transfers
(i) to Permitted Transferees in accordance with Section 1(b), (ii) as a
Tag-Along Securityholder pursuant to Section 2 hereof, (iii) in an
Approved Sale pursuant to Section 5 hereof, and (iv) that are Public
Sales made in accordance with this Agreement.

 

(e)                                  The
restrictions set forth in this Section 3 shall continue with respect to
each unit of Securities until the earlier of (i) the date on which such unit of
Securities has been transferred in a Public Sale in accordance with this
Agreement and (ii) the consummation of a Sale of the Company.

 

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4.                                       Preemptive
Rights.

 

(a)                                  If
the Company authorizes, after the date hereof, the issuance or sale of any
equity securities of the Company or any securities containing options or rights
to acquire equity securities of the Company, in each case, other than Exempt
Equity Issuances, to any Person (any such Person, the “Acquiring
Securityholder”), the Company will, at least 15 days prior to the issuance
or sale, notify each Securityholder that is an Accredited Investor in writing
of the price of and any material terms relating to the proposed issuance or
sale (to the extent then known). Each Securityholder may elect to purchase his,
her or its Pro Rata Portion of the securities to be issued in such issuance or
sale at the same price and on the terms identified in the notice. If electing
to participate, each Securityholder shall be required to purchase the same
strip of securities, on the same terms and conditions, that the Acquiring
Securityholder in such issuance is purchasing. Each Securityholder’s election
to participate in any such additional financing must be made in writing and be
delivered to the Company within 15 days after such Securityholder’s receipt of
the notice from the Company provided under this Section 4; provided
that if there is a material change in the terms included in such notice, each
Securityholder will have 10 days after receipt of notice of the revised terms
to reconfirm such Securityholder’s intention to invest. If after notifying the
Securityholders, the Company elects not to proceed with the issuance or sale,
any elections made by Securityholders shall be deemed rescinded.

 

(b)                                 Upon
the expiration of the offering periods described above, the Company shall be
entitled to sell such securities which the Securityholders have not elected to
purchase during the 180 calendar days following such expiration at a price not
less than, and on other terms and conditions substantially similar to those
offered to such Securityholders. Any securities offered or sold by the Company
after such 180 day period (or, if prior to such 180-day period, at a price less
than, or on other terms and conditions not substantially similar to those
offered to such Securityholders) must be reoffered to such Securityholders
pursuant to the terms of this Section 4.

 

(c)                                  Notwithstanding
anything herein to the contrary, if the Board determines that compliance with
the time periods described in this Section 4 would not be in the best
interests of the Company and its Subsidiaries because of the liquidity needs of
the Company and its Subsidiaries, then, in lieu of offering any securities to
the Securityholders at the time such securities are otherwise being issued or
sold, the Company may comply with the provisions of this Section 4 by
making an offer to sell to the Securityholders their Pro Rata Portion of such
securities promptly, and in no event later than 10 days, after a sale to the
Acquiring Securityholder is consummated. In such event, for all purposes of
this Section 4, each Securityholder’s Pro Rata Portion shall be
determined taking into consideration the actual number of securities sold so as
to achieve the same economic effect as if such offer would have been made prior
to such sale.

 

(d)                                 This
Section 4 shall terminate upon the first to occur of (i) the
consummation of a Sale of the Company and (ii) the consummation of a Qualified
Public Offering.

 

6

 

5.                                       Sale
of the Company.

 

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

 

(b)                                 Each
holder of Securities shall be severally obligated to join and become a party to
any agreement approved by the holders of the Required Interest with respect to
an Approved Sale (based on his, her or its Pro Rata Portion) providing for
representations and warranties, indemnification obligations (including escrows,
hold back or other similar arrangements to support such indemnity obligations),
releases or other obligations to which MDCP LLC or its Affiliates (other than
the Company or any Subsidiary) agree in connection with such Approved Sale
(other than any such obligations that relate specifically to a particular
Securityholder, such as indemnification with respect to representations and
warranties given by a holder of Securities regarding such holder’s title to and
ownership of Securities as to which obligations each such holder shall be
solely liable (except to the extent of amounts held in escrow or otherwise not
paid at the closing); provided, that each Executive’s and each Other
Securityholder’s obligations in respect of any such indemnification obligations
shall not exceed his, her or its proceeds from such Approved Sale; provided,
further, that no Other Securityholder shall be obligated to make any
representations or warranties other than the representations and warranties
with respect to such Other Securityholder (although such Other Securityholder
may be liable with respect to representations and warranties of others to the
extent that MDCP LLC or its Affiliates (other than the Company or any
Subsidiary) are so liable). Each holder of Securities (i) hereby appoints MDCP
LLC or its designee as its representative in connection with any sale agreement
with customary provisions (including the right to resolve any potential
indemnification claims or other disputes on behalf of all holders of
Securities) and (ii) hereby irrevocably grants to, and appoints, MDCP LLC or
its designee, such holder’s proxy and attorney-in-fact (with full power of
substitution), for and in the name, place and stead of such holder, to vote the
Securities held by such holder, or to grant a consent or approval in respect of
such Securities, in connection with any meeting of the members of the Company
or any action by written consent in lieu of a meeting of the members of the
Company with respect to an Approved Sale. Each holder of Securities hereby
affirms that the irrevocable proxy set forth in this Section 5(b)
is given to secure the performance of the duties of such holder under this
Agreement. Each holder of Securities hereby further affirms that the
irrevocable proxy set forth in this Section 5(b) is coupled with an
interest and irrevocable.

 

(c)                                  The
obligations of the holders of Securities with respect to the Approved Sale are
subject to the terms of Section 6 below.

 

(d)                                 Holders
of Securities will bear their Pro Rata Portion of the costs of any sale of such
Securities pursuant to an Approved Sale to the extent such costs are incurred
for the 

 

7

 

benefit of all holders of Securities and are not
otherwise paid by the Company or the acquiring party. For purposes of this Section
5(d), costs incurred in exercising reasonable efforts to take all actions
in connection with the consummation of an Approved Sale in accordance with Section 5(a)
shall be deemed to be for the benefit of all holders of Securities. Costs
incurred by holders of Securities on their own behalf will not be considered
costs of the transaction hereunder.

 

(e)                                  This
Section 5 and Section 6 shall terminate upon the first to occur
of (i) the consummation of a Sale of the Company and (ii) the consummation of a
Qualified Public Offering.

 

6.                                       Distributions
upon Sale of the Company. In the event of an Approved Sale, each
Securityholder shall receive in exchange for the Securities held by such
Securityholder the same portion of the aggregate consideration to be paid in
respect of the securities sold in such sale or exchange that such
Securityholder would have received if such aggregate consideration had been
distributed by the Company pursuant to the terms of Section 4.1(a)
of the LLC Agreement; provided, that each Executive and each Other
Securityholder shall have the right to receive the same form and amount of
consideration per unit (after taking into account the differing amounts that
units within a class may be entitled to pursuant to Section 4.1(a) of
the LLC Agreement) as all Investors holding units of the same class, and if any
Investor is given an option as to the form and amount of consideration to be
received, all Executives and all Other Securityholders will be given the same
option. Each holder of Securities shall take all necessary or desirable actions
in connection with the distribution of such aggregate consideration from such
sale or exchange as requested by the Company.

 

7.                                       Certificates.
If the Board determines to issue certificates evidencing some or all of the
Securities, (i) the Board shall determine the appropriate legend or legends to
be stamped or otherwise imprinted on such certificates and the rules (which the
Securityholders shall be subject to) for adding and removing any such legends
(including requiring an opinion of counsel) and (ii) if and to the extent
requested by the Board, each Executive shall execute in blank security transfer
powers in a form acceptable to the Board (the “Security Powers”) with
respect to his, her or its Securities and shall deliver such Security Powers to
the Company. The Security Powers shall authorize the Company to assign,
transfer and deliver the Securities to the appropriate acquiror thereof
pursuant to the terms of this Agreement. Any certificate evidencing Securities
held by an Executive or Permitted Transferee thereof (other the Company or the
Investors) shall be retained by the Company and shall not be delivered to such
Executive or Permitted Transferee until the consummation of a Qualified Public
Offering, and then only certificate(s) evidencing Vested Common Units shall be
so delivered to such Executive or such Permitted Transferee.

 

8.                                       Demand
Registrations.

 

(a)                                  Requests
for Registration. The Securityholders contemplate the organization of a
corporation and reorganization or recapitalization of the Company pursuant to Section
15.7 of the LLC Agreement. The corporate successor to the Company shall be
referred to herein as 

 

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the “Corporation.”  At any time and from time to time after the
organization of the Corporation, the holders of a majority of the Investor
Registrable Securities may request registration under the Securities Act of all
or any portion of their Registrable Securities on Form S-1 or any similar
long-form registration (“Long-Form Registrations”), or on Form S-2 or
S-3 (including pursuant to Rule 415 under the Securities Act) or any similar
short-form registration (“Short-Form Registrations”), if available. All
registrations requested pursuant to this Section 8(a) are referred to
herein as “Demand Registrations.” 
Each request for a Demand Registration shall specify the approximate
number of Registrable Securities requested to be registered and the anticipated
per share or per unit price range for such offering. Within ten days after
receipt of any such request, the Corporation shall give written notice of such
requested registration to all other holders of Registrable Securities and shall
include in such registration all Registrable Securities with respect to which
the Corporation has received written requests for inclusion therein within 15
days after the receipt of the Corporation’s notice (the “Included
Registrable Securities”).

 

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

 

(c)                                  Investor
Short-Form Registrations. In addition to the Long-Form Registrations
provided pursuant to Section 8(b), the holders of  Investor Registrable Securities shall be
entitled to request an unlimited number of Short-Form Registrations in which
the Corporation shall pay all Registration Expenses. Demand Registrations shall
be Short-Form Registrations whenever the Corporation is permitted to use any
applicable short form. After the Corporation has become subject to the
reporting requirements of the Securities Exchange Act, the Corporation shall
use commercially reasonable efforts to make Short-Form Registrations on Form
S-3 available for the sale of Registrable Securities. If the Corporation,
pursuant to the request of the holder(s) of a majority of Investor Registrable
Securities, is qualified to and has filed with the Securities Exchange
Commission a registration statement under the Securities Act on Form S-3
pursuant to Rule 415 under the Securities Act (the “Required Registration”),
then the Corporation shall use commercially reasonable efforts to cause the
Required Registration to be declared effective under the Securities Act as soon
as practicable after filing, and, once effective, the Corporation shall cause
such Required Registration to remain effective for a period ending on the
earlier of (i) the date on which all Included Registrable Securities have been
sold pursuant to the Required Registration, or (ii) the date as of which (A)
the holder(s) of the Included Registrable Securities who are affiliates of the
Corporation are able to sell all of the Investor Registrable Securities then
held by them within a ninety-day period in compliance with Rule 144 under the
Securities Act, and (B) the holder(s) of the Included Registrable Securities
who are not affiliates of the Corporation are able to sell all of the Investor
Registrable Securities then held by them pursuant to Rule 144(k) under the
Securities Act.

 

(d)                                 Priority
on Demand Registrations. The Corporation shall not include in any Demand
Registration any securities that are not Registrable Securities without the
prior written consent of the holders of a majority of the Investor Registrable
Securities included in such registration. If a Demand Registration is an
underwritten offering and the managing underwriters advise the Corporation in
writing that, in their opinion, the number of Registrable 

 

9

 

Securities and, if permitted hereunder, other
securities requested to be included in such offering exceeds the number of
Registrable Securities and other securities, if any, that can be sold in an
orderly manner in such offering within a price range acceptable to the holders
of a majority of the Investor Registrable Securities to be included in such
registration, then the Corporation shall include in such registration, prior to
the inclusion of any securities that are not Registrable Securities, the number
of Registrable Securities requested to be included that, in the opinion of such
underwriters, can be sold in an orderly manner within the price range of such
offering, pro rata among the respective holders thereof on the basis of the
amount of Registrable Securities owned by each such holder.

 

(e)                                  Restrictions
on Long-Form Registrations. The Corporation shall not be obligated to
effect any Long-Form Registration within 90 days after the effective date of a
previous Long-Form Registration or a previous registration in which the holders
of Registrable Securities were given piggyback rights pursuant to Section 9
and in which there was no reduction in the number of Registrable Securities
requested to be included. The Corporation may postpone for up to 180 days the
filing or the effectiveness of a registration statement for a Demand
Registration if the Corporation and the holders of a majority of the Investor
Registrable Securities agree that such Demand Registration would reasonably be
expected to have a material adverse effect on any proposal or plan by the
Corporation or any of its Subsidiaries to acquire financing, engage in any
acquisition of assets (other than in the ordinary course of business), or
engage in any merger, consolidation, tender offer, reorganization, or similar
transaction; provided that, in such event, the holders of Investor Registrable
Securities initially requesting such Demand Registration shall be entitled to
withdraw such request and the Corporation shall pay all Registration Expenses
in connection with such registration. The Corporation may delay a Demand
Registration hereunder only once in any 12-month period.

 

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

 

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

 

(h)                                 Obligations
of Holders of Registrable Securities. Subject to the Corporation’s
obligations under Section 11(e) hereof, each holder of Registrable
Securities shall cease using any prospectus after receipt of written notice
from the Corporation of the happening of any event as a result of which such
prospectus contains an untrue statement of a material fact or omits any fact
necessary to make the statements therein not misleading in light of the
circumstances under which they were made or is otherwise not legally available
to support sales of Registrable Securities.

 

(i)                                     Subsidiary
Public Offering. If, after an initial public offering of the equity
securities of a Subsidiary of the Company, the Company distributes securities
of such Subsidiary 

 

10

 

to members of the Company, then the rights and
obligations of the Corporation pursuant to this Agreement, as contemplated
after the organization of a corporation and reorganization or recapitalization
of the Company into the Corporation as provided in Section 8(a) above
(regardless whether or not such transaction is actually consummated), shall
apply, mutatis mutandis, to such Subsidiary, and the Company or the
Corporation, as applicable, shall cause such Subsidiary to comply with such
Subsidiary’s obligations under this Agreement.

 

9.                                       Piggyback
Registrations.

 

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

 

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

 

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

 

(d)                                 Priority
on Secondary Registrations. If a Piggyback Registration is an underwritten
secondary registration on behalf of holders of the Corporation’s securities
other than holders of Registrable Securities (it being understood that
secondary registrations on behalf of holders of Registrable Securities are
addressed in Section 8 above rather than this Section 9(d)),
and the managing underwriters advise the Corporation in writing that, in their
opinion, the number of securities requested to be included in such registration
exceeds the number which can be sold in an orderly manner in such offering
within a price range acceptable to the holders initially requesting such
registration, then the Corporation shall include in such registration (i)
first, the securities requested to be included therein by the holders
requesting such registration (other than holders of Registrable Securities),
(ii) second, the Registrable Securities 

 

11

 

requested to be included in such registration, pro
rata among the holders of such Registrable Securities on the basis of the
number of Registrable Securities owned by each such holder, and (iii) third,
the other securities requested to be included in such registration.

 

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

 

(f)                                    Other
Registrations. If the Corporation has previously filed a registration
statement with respect to Registrable Securities pursuant to Section 8
or pursuant to this Section 9, and if such previous registration
has not been withdrawn or abandoned, then, unless such previous registration is
a Required Registration, the Corporation shall not file or cause to be effected
any other registration of any of its equity securities or securities
convertible or exchangeable into or exercisable for its equity securities under
the Securities Act (except on Form S-8 or any successor form), whether on its
own behalf or at the request of any holder or holders of such securities, until
a period of at least 180 days has elapsed from the effective date of such
previous registration.

 

10.                                 Holdback
Agreements.

 

(a)                                  Each
holder of Registrable Securities agrees that in connection with the Corporation’s
initial public offering and any Demand Registration or Piggyback Registration
that is an underwritten public offering of the Corporation’s equity securities,
he, she or it shall not (i) offer, sell, contract to sell, pledge or otherwise
dispose of (including sales pursuant to Rule 144), directly or indirectly, any
equity securities of the Corporation (including, without limitation, equity
securities of the Corporation which may be deemed to be owned beneficially by
such holder in accordance with the rules and regulations of the Securities and
Exchange Commission) (collectively, the “Holdback Securities”), or any
securities, options, or rights convertible into or exchangeable or exercisable
for Holdback Securities (the “Other Holdback Securities”), (ii) enter
into a transaction which would have the same effect as described in clause (i)
of this section, (iii) enter into any swap, hedge or other arrangement that
transfers, in whole or in part, any of the economic consequences or ownership
of any Holdback Securities or Other Holdback Securities, whether such
transaction is to be settled by delivery of such Holdback Securities, Other
Holdback Securities, in cash or otherwise, or (iv) publicly disclose the
intention to enter into any transaction described in (i), (ii) or (iii) above,
from the date on which the Corporation gives notice to the holders of
Registrable Securities that a preliminary prospectus has been circulated for
such underwritten public offering to the date that is 180-days following the
date of final prospectus for such underwritten public offering (or such shorter
period as agreed to by the underwriters designated as “book-runners” managing such
registered public offering) (such period referred to herein as the the “Holdback
Period”), unless such book-runners otherwise agree in writing. If
(x) the Company issues an earnings release or other material news or a
material event relating to the Company and its Subsidiaries occurs during the
last 17 days of the Holdback Period or (y) prior to the expiration of the
Holdback Period, the Company announces that it will release earnings results
during the 16-day period beginning upon the expiration of the Holdback Period,
then to the extent necessary for the book-runners required hereunder to comply 

 

12

 

with NASD Rule 2711(f)(4), the Holdback Period shall
be extended until 18 days after the earnings release or the occurrence of the
material news or event, as the case may be (such period referred to herein as
the “Holdback Extension”). The Company may impose stop-transfer
instructions with respect to the shares of the Corporation’s common stock (or
other securities) subject to the foregoing restriction until the end of such
period, including any period of Holdback Extension.

 

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

 

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

 

(d)                                 Notwithstanding
the foregoing, it being understood and agreed that the provisions of this Section
10 shall not prevent any Securityholder from participating in the
Corporation’s initial public offering and any Demand Registration or Piggyback
Registration that is an underwritten public offering of the Corporation’s
equity securities, to the extent he, she or it has a right to participate in
such initial Public Offering, Demand Registration or Piggyback Registration
pursuant to Sections 8 or 9.

 

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

 

(a)                                  prepare
and, within 60 days after the end of the period within which requests for
registration may be given to the Corporation, file with the Securities and
Exchange Commission a registration statement with respect to such Registrable
Securities and use commercially reasonable efforts to cause such registration
statement to become effective (provided that, before filing a
registration statement or prospectus or any amendments or 

 

13

 

supplements thereto, the Corporation shall furnish to
the counsel selected by the holders of a majority of the Investor Registrable
Securities covered by such registration statement copies of all such documents
proposed to be filed, which documents shall be subject to the review and
comment of such counsel);

 

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

 

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

 

(d)                                 use
commercially reasonable efforts to register or qualify such Registrable
Securities under such other securities or blue sky laws of such jurisdictions
as any seller reasonably requests and do any and all other acts and things
which may be reasonably necessary or advisable to enable such seller of
Registrable Securities to consummate the disposition in such jurisdictions of
the Registrable Securities owned by such seller of Registrable Securities
(provided that the Corporation shall not be required to (i) qualify generally
to do business in any jurisdiction where it would not otherwise be required to
qualify but for this Section 11(d), (ii) subject itself to taxation in
any such jurisdiction, or (iii) consent to general service of process in any
such jurisdiction);

 

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

 

14

 

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

 

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

 

(h)                                 enter
into such customary agreements (including underwriting agreements in customary
form) and take all such other actions as the holders of a majority of the
Registrable Securities being sold or the underwriters, if any, reasonably request
in order to expedite or facilitate the disposition of Registrable Securities
(including effecting a share or unit split or a combination of shares or
units);

 

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

 

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

 

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

 

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

 

(m)                               obtain
one or more cold comfort letters, dated the effective date of such registration
statement (and, if such registration includes an underwritten public offering,
dated 

 

15

 

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

 

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

 

12.                                 Registration
Expenses.

 

(a)                                  Subject
to Section 12(b) below, all expenses incident to the Corporation’s
performance of or compliance with this Agreement, including all registration
and filing fees, fees and expenses of compliance with securities or blue sky
laws, printing expenses, travel expenses, filing expenses, messenger and
delivery expenses, fees and disbursements of custodians, and fees and
disbursements of counsel for the Corporation, and fees and disbursements of all
independent certified public accountants, underwriters including, if necessary,
a “qualified independent underwriter” within the meaning of the rules of the
National Association of Securities Dealers, Inc. (in each case, excluding
discounts and commissions), and other Persons retained by the Corporation or by
holders of Investor Registrable Securities or their affiliates on behalf of the
Corporation (all such expenses being herein called “Registration Expenses”),
shall be borne as provided in this Agreement, except that the Corporation
shall, in any event, pay its internal expenses (including all salaries and
expenses of its officers and employees performing legal or accounting duties),
the expense of any annual audit or quarterly review, the expense of any
liability insurance, and the expenses and fees for listing the securities to be
registered on each securities exchange on which similar securities issued by
the Corporation are then listed or on the NASD automated quotation system (or
any successor or similar system).

 

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

 

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

 

16

 

13.                                 Indemnification.

 

(a)                                  The
Corporation agrees to indemnify and hold harmless, to the fullest extent
permitted by law, each holder of Registrable Securities, its officers,
directors, agents, and employees, and each Person who controls such holder
(within the meaning of the Securities Act) against all losses, claims, damages,
liabilities, and expenses (or actions or proceedings, whether commenced or
threatened, in respect thereof), whether joint and several or several, together
with reasonable costs and expenses (including reasonable attorney’s fees) to
which any such indemnified party may become subject under the Securities Act or
otherwise (collectively, “Losses”) caused by, resulting from, arising
out of, based upon, or relating to (i) any untrue or alleged untrue statement
of material fact contained in (A) any registration statement, prospectus or
preliminary prospectus, or any amendment thereof or supplement thereto or (B)
any application or other document or communication (in this Section 13,
collectively called an “application”) executed by or on behalf of the
Corporation or based upon written information furnished by or on behalf of the
Corporation filed in any jurisdiction in order to qualify any securities
covered by such registration under the “blue sky” or securities laws thereof or
(ii) any omission or alleged omission of a material fact required to be stated
therein or necessary to make the statements therein not misleading, and the
Corporation will reimburse such holder and each such director, officer, and
controlling Person for any legal or any other expenses incurred by them in
connection with investigating or defending any such Losses; provided
that the Corporation shall not be liable in any such case to the extent that
any such Losses result from, arise out of, are based upon, or relate to an
untrue statement or alleged untrue statement, or omission or alleged omission,
made in such registration statement, any such prospectus, or preliminary
prospectus or any amendment or supplement thereto, or in any application, in
reliance upon, and in conformity with, written information prepared and
furnished in writing to the Corporation by such holder expressly for use
therein or by such holder’s failure to deliver a copy of the registration
statement or prospectus or any amendments or supplements thereto after the
Corporation has furnished such holder with a sufficient number of copies of the
same. In connection with an underwritten offering, the Corporation shall
indemnify such underwriters, their officers and directors, and each Person who
controls such underwriters (within the meaning of the Securities Act) to the
same extent as provided above with respect to the indemnification of the
holders of Registrable Securities.

 

(b)                                 In
connection with any registration statement in which a holder of Registrable
Securities is participating, each such holder will furnish to the Corporation
in writing such information and affidavits as the Corporation reasonably
requests for use in connection with any such registration statement or
prospectus and, to the fullest extent permitted by law, shall indemnify and
hold harmless the other holders of Registrable Securities and the Corporation,
and their respective officers, directors, agents, and employees, and each other
Person who controls the Corporation (within the meaning of the Securities Act)
against any Losses caused by, resulting from, arising out of, based upon, or
relating to (i) any untrue or alleged untrue statement of material fact
contained in the registration statement, prospectus or preliminary prospectus,
or any amendment thereof or supplement thereto or in any application, or (ii)
any omission or alleged omission of a material fact required to be stated
therein or necessary to make the statements therein not misleading, but only to
the extent that such untrue statement or omission is made in such registration
statement, any such prospectus or preliminary prospectus

 

17

 

or any amendment or supplement thereto, or in any
application, in each case, in reliance upon and in conformity with written
information prepared and furnished to the Corporation by such holder expressly
for use therein, and such holder will reimburse the Corporation and each such
other indemnified party for any legal or any other expenses incurred by them in
connection with investigating or defending any such Losses; provided
that the obligation to indemnify will be individual, not joint and several, for
each holder and shall be limited to the net amount of proceeds received by such
holder from the sale of Registrable Securities pursuant to such registration
statement.

 

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

 

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

 

(e)                                  If
the indemnification provided for in this Section 13 is unavailable to or
is insufficient to hold harmless an indemnified party under the provisions
above in respect to any Losses referred to therein, then each indemnifying
party shall contribute to the amount paid or payable by such indemnified party
as a result of such Losses (i) in such proportion as is appropriate to reflect
the relative fault of the Corporation on the one hand and the sellers of
Registrable Securities and any other sellers participating in the registration
statement on the other hand or (ii) if the allocation provided by clause (i)
above is not permitted by applicable law, then in such proportion as is
appropriate to reflect not only the relative fault referred to in clause (i)
above but also the relative benefit of the Corporation on the one hand and of
the sellers of Registrable Securities and any other sellers participating in
the registration statement on the other in connection with the statement or
omissions which resulted in such Losses, as well as any other relevant
equitable considerations. The relative benefits received by the Corporation on
the one hand and the sellers of Registrable Securities and any other sellers
participating in the registration statement on the other shall be deemed to be
in the same proportion as the total net proceeds from the offering (before deducting
expenses) to the Corporation bear to the total net 

 

18

 

proceeds from the offering (before deducting expenses)
to the sellers of Registrable Securities and any other sellers participating in
the registration statement. The relative fault of the Corporation on the one
hand and of the sellers of Registrable Securities and any other sellers
participating in the registration statement on the other shall be determined by
reference to, among other things, whether the untrue statement or alleged
omission to state a material fact relates to information supplied by the
Corporation or by the sellers of Registrable Securities or other sellers
participating in the registration statement and the parties’ relative intent,
knowledge, access to information, and opportunity to correct or prevent such
statement or omission.

 

(f)                                    The
Corporation and the sellers of Registrable Securities agree that it would not
be just and equitable if contribution pursuant to this Section 13 were
determined by pro rata allocation (even if the sellers of Registrable
Securities were treated as one entity for such purpose) or by any other method
of allocation which does not take account of the equitable considerations
referred to in Section 13(e) above. The amount paid or payable by an
indemnified party as a result of the Losses referred to in Section 13(e)
above shall be deemed to include, subject to the limitations set forth above,
any legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any such action or claim. Notwithstanding
the provisions of this Section 13, no seller of Registrable Securities
shall be required to contribute pursuant to this Section 13 any amount
in excess of the sum of (i) any amounts paid pursuant to Section 13(b)
above and (ii) the net proceeds received by such seller from the sale of
Registrable Securities covered by the registration statement filed pursuant
hereto. No Person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any
Person who was not guilty of such fraudulent misrepresentation.

 

14.                                 Participation
in Underwritten Registrations.

 

(a)                                  No
Person may participate in any underwritten registration hereunder unless such
Person (i) agrees to sell such Person’s securities on the basis provided in any
underwriting arrangements approved by the Person or Persons entitled hereunder
to approve such arrangements (including pursuant to the terms of any
over-allotment or “green shoe” option requested by the managing underwriter(s),
provided that no holder of Registrable Securities will be required to
sell more than the number of Registrable Securities that such holder has requested
the Corporation to include in any registration) and (ii) completes and executes
all questionnaires, powers of attorney, indemnities, underwriting agreements,
and other documents reasonably required under the terms of such underwriting
arrangements; provided that no holder of Registrable Securities included
in any underwritten registration shall be required to make any representations
or warranties to the Corporation or the underwriters (other than
representations and warranties regarding such holder and such holder’s intended
method of distribution) or to undertake any indemnification obligations to the
Corporation or the underwriters with respect thereto, except as otherwise
provided in Section 13 hereof.

 

(b)                                 Each
Person that is participating in any registration hereunder agrees that, upon
receipt of any notice from the Corporation of the happening of any event of the
kind described in Section 11(e) above, such Person will immediately
discontinue the disposition of its Registrable Securities pursuant to the
registration statement until such Person’s receipt of the 

 

19

 

copies of a supplemented or amended prospectus as
contemplated by Section 11(e). In the event the Corporation shall give
any such notice, the applicable time period mentioned in Section 11(b)
during which a Registration Statement is to remain effective shall be extended
by the number of days during the period from and including the date of the
giving of such notice pursuant to this Section 14(b) to and including
the date when each seller of a Registrable Security covered by such
registration statement shall have received the copies of the supplemented or
amended prospectus contemplated by Section 11(e).

 

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

 

16.                                 Valuation
of Securities; Fair Market Value. If at any time Securities are not listed
on any securities exchange or quoted in the NASDAQ System or the over the
counter market, the Company shall from time to time engage a nationally
recognized firm that is engaged in the business of valuing non public securities
to provide written reports to the Board, no less frequently than once every
fiscal quarter, of its determination of the fair value of such Securities
taking into account all relevant factors determinative of value (but without
regard to the lack of liquidity of such securities due to the Company’s status
as a privately held company, any discounts for minority interests and any
additional discounts as a result of any contractual transfer or forfeiture
restrictions applicable thereto), using valuation techniques then prevailing in
the securities industry (e.g., discounted cash flows and/or comparable
companies) and assuming full disclosure of all relevant information and a
reasonable period of time for effectuating such sale (any such report, a “Valuation
Report”). For purposes of a Management Unit Purchase Agreement, “Fair
Market Value” of each unit of Securities means (i) the average of the
closing prices of the sales of such Securities on all securities exchanges on
which such Securities may at the time be listed, or, if there have been no
sales on any such exchange on any day, the average of the highest bid and
lowest asked prices on all such exchanges at the end of such day, or, if on any
day such Securities are not so listed, the average of the representative bid
and asked prices quoted in the NASDAQ System as of 4:00 P.M., New York time,
or, if on any day such Securities are not quoted in the NASDAQ System, the
average of the highest bid and lowest asked prices on such day in the domestic
over the counter market as reported by the National Quotation Bureau
Incorporated, or any similar successor organization, in each such case averaged
over a period of 21 days consisting of the day as of which the Fair Market
Value is being determined and the 20 consecutive business days prior to such
day or (ii) if at any time such Securities are not listed on any securities
exchange or quoted in the NASDAQ System or the over the counter market, the
Fair Market Value will be the fair value of such Securities as set forth in the
most recent Valuation Report or, if such report only provides a range of fair
values, the mid-point of such range for such Securities in such report.

 

20

 

17.                                 Definitions.

 

“Accredited Investor” means an “accredited
investor” within the meaning of Regulation D of the Securities Act.

 

“Affiliate” of any particular Person means any
other Person controlling, controlled by, or under common control with such
particular Person, where “control” means the possession, directly or
indirectly, of the power to direct the management and policies of a Person
whether through the ownership of voting securities, by contract, or otherwise.

 

“Board” means the Board of Managers of the
Company or any successor governing body thereto.

 

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

 

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

 

“Designated Executives” means, as of any date,
the top thirteen (13) Executives measured by their respective holdings of Class
A Common Units as of such date.

 

“Executive Registrable Securities” means, (i)
any Common Stock issued or distributed in respect of units of the Company
issued to the Executives, (ii) common equity securities of the Company or a
Subsidiary of either the Company or the Corporation issued or issuable with
respect to the securities referred to in clause (i) above by way of
dividend, distribution, split or combination of securities, or any
recapitalization, merger, consolidation or other reorganization and (iii) other
Common Stock held by Persons holding securities described in clause (i) above. Such
securities shall cease to be Executive Registrable Securities when they
(i) have been distributed to the public pursuant to an offering registered
under the Securities Act or sold to the public through a broker, dealer, or
market maker in compliance with Rule 144 under the Securities Act (or any
similar rule then in force), (ii) have been effectively registered under a
registration statement including, without limitation, a registration statement
on Form S-8 (or any successor form), or (iii) have been repurchased by the
Company. In addition, all Executive Registrable Securities held by any Person
shall cease to be Executive Registrable Securities when all such Executive
Registrable Securities become eligible to be sold to the public through a
broker, dealer, or market maker pursuant to Rule 144 (or any similar provision
then in force), other than Rule 144(k), during a single 90-day period. For
purposes of this Agreement, a Person shall be deemed to be a holder of
Executive Registrable Securities whenever such Person has the right to acquire
such Executive Registrable Securities (upon conversion or exercise in 

 

21

 

connection with a
transfer of securities or otherwise, but disregarding any restrictions or
limitations upon the exercise of such right), whether or not such acquisition
has actually been effected; provided that this sentence shall not apply
to shares of the common equity securities of the Company issuable upon the
exercise of unvested options originally issued to employees or former employees
of the Company, the Corporation or their Subsidiaries.

 

“Exempt Equity Issuances” means issuances of
equity securities of the Company or rights to acquire equity securities of the
Company (i) convertible into or exercisable for any securities of the Company
issued on or before the date hereof or in an Exempt Equity Issuance after the
date hereof in compliance with the provisions of Section 4, (ii) in
consideration for the acquisition of all or part of another business (whether
by merger, purchase of stock or assets or otherwise) from an independent third
party, (iii) pursuant to a Public Sale, (iv) to directors, employees, service
providers or consultants of the Company or its Subsidiaries pursuant to
compensation plans, agreements or arrangements approved from time to time by
the Board, (v) as a distribution on outstanding equity securities or as a
result of a unit split, (vi) as consideration paid to a Person in connection
with the initial capitalization of a joint venture or similar strategic
arrangement with an independent third party that was approved by the Board, and
(vii) to lenders, financial institutions or lessors in connection with any
borrowings, credit arrangements, equipment financings or similar transactions
that are approved by the Board; provided that in the case of the foregoing
clauses (ii), (vi) and (vii), any portion of such issuances that are to be made
to the Investors or their Affiliates shall not be deemed to be Exempt Equity
Issuances.

 

“Family Group” means (i) a Person’s spouse and
descendants (whether natural or adopted), siblings and parents and any trust,
family limited partnership, limited liability company or other entity wholly
owned, directly or indirectly, by such Person or such Person’s spouse,
descendants, siblings and/or parents, that is and remains solely for the
benefit of such Person and/or such Person’s spouse, descendants, siblings and/or
parents and any retirement plan for such Person and (ii) the heirs, executors,
administrators and personal representatives upon the death, incompetency or
disability of such Person or Permitted Transferee.

 

“GSMP Investor” means each of GSMP 2006 Onshore
US, Ltd., an exempted Cayman Islands limited liability company, GSMP 2006
Offshore US, Ltd., an exempted Cayman Islands limited liability company, and
GSMP 2006 Institutional US, Ltd., an exempted Cayman Islands limited liability
company.

 

“Independent Third Party” means any Person or
any group of Persons (within the meaning of Section 13(d)(3) of the Securities
Exchange Act) who, immediately prior to the contemplated transaction, do not
own in the aggregate in excess of 15% of the Common Units on a fully-diluted
basis (a “15% Owner”), who are not controlling, controlled by or under
common control with any such 15% Owner and who are not the spouse or descendent
(by birth or adoption) of any such 15% Owner or a trust for the benefit of such
15% Owner and/or such other Persons.

 

“Investor Registrable Securities” means, (i)
any Common Stock issued or distributed in respect of units of the Company
issued to the Investors pursuant to the Purchase Agreement, (ii) common equity
securities of the Company or a Subsidiary of either the Company 

 

22

 

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

 

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

 

“LLC Agreement” means the Limited Liability
Company Agreement of the Company, dated on or about the date hereof, among the
parties from time to time party thereto, as amended from time to time pursuant
to its terms.

 

“Management Unit Purchase Agreements” means any
Management Unit Purchase Agreement entered into from time to time among the
Company, any Subsidiary of the Company and/or an employee of the Company or its
Subsidiaries, as the same may be amended from time to time pursuant to the
terms thereof (including, without limitation, any other agreements designated
as Management Unit Purchase Agreements for the sale of equity securities
between the Company and any employees or other service providers of the Company
or its Subsidiaries and any Incentive Unit Agreements (as defined in the LLC
Agreement), all as approved by the Board).

 

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

 

23

 

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

 

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

 

“Plan” means the Company’s 2007 Securities
Purchase Plan, as amended.

 

“Pro Rata Portion” means, with respect to each
Securityholder, a percentage equal to the quotient obtained by dividing (1) the
aggregate number of Common Units then held by such Securityholder, by (2) the
aggregate number of Common Units then outstanding.

 

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

 

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

 

“Qualified Public Offering” means a Public
Offering having an aggregate offering value of at least $200 million.

 

“Registrable Securities” means the Investor
Registrable Securities, the Executive Registrable Securities and the Other
Registrable Securities.

 

“Required Interest” means, as of a given time,
a majority of the Class A Common Units outstanding at such time.

 

24

 

“Sale of the Company” means any transaction or
series of transactions pursuant to which any Independent Third Party in the
aggregate acquire(s) (i) a majority of the voting equity securities of the
Company (whether by merger, liquidation, consolidation, reorganization,
combination, sale or transfer of the Company’s equity securities,
securityholder or voting agreement, proxy, power of attorney or otherwise) or
(ii) all or substantially all of the Company’s assets determined on a consolidated
basis and, in each case, after which the Investors and their Affiliates hold in
the aggregate less than 15% of the Class A Common Units on a fully-diluted
basis.

 

“Securities” means (i) any Class A Preferred
Units or Class A Common Units purchased or otherwise acquired by any
Securityholder, (ii) any equity securities issued or issuable directly or
indirectly with respect to the Units referred to in clause (i) above by
way of unit dividend or unit split or in connection with a combination of
units, conversion, recapitalization, merger, consolidation or other
reorganization (including a distribution of securities of a Subsidiary of the
Company to the members of the Company following or with respect to a Subsidiary
Public Offering), and (iii) any other units of any class or series of equity
securities of the Company (or a corporate successor to the Company) held by a
Securityholder. Except as otherwise provided in this Agreement or the LLC
Agreement, Securities will continue to be Securities in the hands of any other
holder (other than transferees in a permitted Public Sale and other than the
Company or the Investors). As to any particular equity securities constituting
Securities, such Securities will cease to be Securities when they have been
sold in a permitted Public Sale. Except as otherwise provided in this Agreement
or the LLC Agreement, each holder of Securities will succeed to all rights and
obligations hereunder of the previous holder of such Securities (except for
transferees in a permitted Public Sale and Transfers to the Company or the
Investors) and shall, with respect to the acquired Securities, be deemed to
have joined this Agreement in the same capacity (i.e., Investor, Executive, or
Other Securityholder) as the previous holder of such Securities. With respect
to Securities subject to a Management Unit Purchase Agreement, all Unvested
Founder Common Units (as defined in such Management Unit Purchase Agreement)
shall remain Unvested Founder Common Units after any Transfer thereof (except
Transfers to the Company or the Investors) and shall only become Vested Common
Units (as defined in such Management Unit Purchase Agreement) thereafter to the
extent provided in such Management Unit Purchase Agreement.

 

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

 

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

 

“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, 

 

25

 

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.

 

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

 

“Transfer” means to sell, transfer, assign,
pledge or otherwise dispose of (whether with or without consideration and
whether voluntarily or involuntarily or by operation of law), but explicitly
excluding exchanges of one class of Securities to or for another class of
Securities.

 

“Unvested Common Units” means, as of any given
time, any Class A Common Units that are subject to vesting or a similar
forfeiture provision pursuant to any Management Unit Purchase Agreement and
which have not yet vested or are still subject to a similar forfeiture
provision in accordance with the terms of such Management Unit Purchase
Agreement.

 

“Vested Common Units” means all Class A Common
Units other than Unvested Common Units.

 

18.                                 Transfers;
Transfers in Violation of Agreement. Prior to Transferring any Securities
that will continue to be Securities following such Transfer to any Person, the
transferring Securityholder shall cause the prospective transferee to execute
and deliver to the Company a counterpart of this Agreement. Any Transfer or
attempted Transfer of any Securities in violation of any provision of this
Agreement shall be void, and the Company shall not record such Transfer on its
books or treat any purported transferee of such Securities as the owner of such
securities for any purpose.

 

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

 

20.                                 Representations
and Warranties. Each Securityholder represents and warrants that
(i) this Agreement has been duly authorized, executed and delivered by
such Securityholder and constitutes the valid and binding obligation of such
Securityholder, enforceable in accordance with its terms, and (ii) such
Securityholder has not granted and is not a 

 

26

 

party to any proxy, voting trust or other agreement
that is inconsistent with, conflicts with or violates any provision of this
Agreement or the LLC Agreement.

 

21.                                 Amendment
and Waiver. This Agreement may be amended from time to time as set forth
elsewhere in this Agreement and this Agreement may be amended from time to time
by a written consent of the holders of the Required Interest; provided
that no amendment pursuant to this Section 21 that would alter or change
the powers, preferences, or special rights hereunder of a class of Securities
or group of Securityholders (as the case may be) so as to affect them adversely
in a manner adversely different than any other class of Securities or group of
Securityholders (as the case may be) shall be effective against the holders of
such class of Securities or group of Securityholders (as the case may be)
without the prior written consent of the holders of at least a majority of the
outstanding Securities of such class of Securities or group of Securityholders
(as the case may be); provided  further that no amendment pursuant
to this Section 21 that would alter or change adversely the special
rights hereunder of a Securityholder or group of Securityholders (as the case
may be) specifically granted such rights by name hereunder shall be effective
against such Securityholder or group of Securityholders (as the case may be)
without that Securityholder’s (or a majority of that group of Securityholders’)
prior written consent; provided  further that no amendment
pursuant to this Section 21 that would alter or change adversely the
rights hereunder of the Executives under Sections 2, 4, 8-14,
16 or 21 shall be effective against the Executives without that
prior written consent of the holders of a majority of the Class A Common Units
held by the Designated Executives; provided  further that any
amendment or modification of this Agreement for the purpose of adding a new
Securityholder or deleting a former Securityholder, in each case shall not be
deemed to be an amendment, modification or waiver of any provision of this
Agreement requiring the consent of any Securityholder.

 

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

 

23.                                 Entire
Agreement. This Agreement, those documents expressly referred to herein and
other documents of even date herewith embody the complete agreement and
understanding among the parties hereto with respect to the subject matter
hereof and supersede and preempt any prior understandings, agreements or
representations by or among the parties, written or oral, which may have
related to the subject matter hereof in any way.

 

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

 

27

 

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

 

26.                                 Remedies.
The Company and each Securityholder shall be entitled to enforce their rights
under this Agreement specifically to recover damages by reason of any breach of
any provision of this Agreement and to exercise all other rights existing in
their favor. The parties hereto agree and acknowledge that money damages may
not be an adequate remedy for any breach of the provisions of this Agreement
and that the Company and each Securityholder may in its sole discretion apply
to any court of law or equity of competent jurisdiction for specific
performance and/or injunctive relief (without posting a bond or other security)
in order to enforce or prevent any violation of the provisions of this
Agreement.

 

27.                                 Notices.
All notices, demands, or other communications to be given or delivered under or
by reason of the provisions of this Agreement shall be in writing and shall be
deemed to have been given or made (i) when delivered personally to the
recipient, (ii) when telecopied to the recipient (with hard copy sent to the
recipient by reputable overnight courier service (charges prepaid) that same
day) if telecopied before 5:00 p.m. Chicago, Illinois time on a business day, and
otherwise on the next business day, (iii) one business day after being sent to
the recipient by reputable overnight courier service (charges prepaid) or (iv)
when received via electronic mail by the recipient (with hard copy sent to the
recipient by reputable overnight courier service (charges prepaid) that same
day) if received via electronic mail before 5:00 p.m. Chicago, Illinois time on
a business day, and otherwise on the next business day after such receipt. Such
notices, demands, and other communications shall be sent to the Company at the
following address and to any 
Securityholder at the address for such Securityholder set forth in the
Unit Ownership Ledger (as defined in the LLC Agreement), or to such other
address or to the attention of such other person as the recipient party has
specified by prior written notice to the sending party.

 

Varietal Distribution Holdings LLC

c/o VWR International, Inc.

1310 Goshen Parkway

PO Box 2656

West Chester, Pennsylvania 19380

Facsimile:  (610) 701-9896

Telephone:  (610) 719-7072

Electronic mail: George_VanKula@vwr.com

Attention:  George Van Kula, Esq.

 

with copies to (which
shall not constitute notice):

 

Madison Dearborn Capital
Partners 

Three First National Plaza

38th Floor

Chicago, Illinois  60602

Facsimile:  (312) 895-1056

 

28

 

Telephone:  (312)
895-1000

Electronic mail:  mtresnowski@MDCP.com

Attention:  General Counsel

 

and

 

Kirkland & Ellis LLP 

200 East Randolph Drive 

Chicago, IL 60601

Facsimile:  (312) 861-2200

Telephone: (312) 861-2000

Electronic mail:  sperl@kirkland.com;
mfennell@kirkland.com

Attention:  Sanford E. Perl, P.C.

                                                Mark
A. Fennell

 

28.                                 Applicable
Law. This Agreement shall be governed by, and construed in accordance with,
the laws of the State of Delaware, without giving effect to any choice of law
or conflict of law rules or provisions (whether of the State of Delaware or any
other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of Delaware.

 

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

 

30.                                 Descriptive
Headings; Interpretation. The descriptive headings of this Agreement are
inserted for convenience only and do not constitute a substantive part of this
Agreement. Whenever required by the context, any pronoun used in this Agreement
shall include the corresponding masculine, feminine, or neuter forms, and the
singular form of nouns, pronouns, and verbs shall include the plural and vice
versa. The use of the word “including” in this Agreement shall be by way of
example rather than by limitation. Reference to any agreement, document, or
instrument means such agreement, document, or instrument as amended or
otherwise modified from time to time in accordance with the terms thereof, and,
if applicable, hereof. Wherever required by the context, references to a Fiscal
Year shall refer to a portion thereof. The use of the words “or,” “either,” and
“any” shall not be exclusive. Wherever a conflict exists between this Agreement
and any other agreement, this Agreement shall control but solely to the extent
of such conflict.

 

29

 

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

 

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

 

*   *   *   *   *

 

30

 

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

 

	
   

  	
  VARIETAL
  DISTRIBUTION HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Its:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MADISON
  DEARBORN CAPITAL PARTNERS 

  V-A, L.P.

  
	
   

  	
   

  
	
   

  	
  By: Madison Dearborn
  Partners V-A&C, L.P.

  
	
   

  	
  Its: General Partner

  
	
   

  	
   

  
	
   

  	
  By: Madison Dearborn
  Partners, LLC

  
	
   

  	
  Its: General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Its: Managing Director

  
	
   

  	
   

  
	
   

  	
  MADISON
  DEARBORN CAPITAL PARTNERS 

  V-C, L.P.

  
	
   

  	
   

  
	
   

  	
  By: Madison Dearborn
  Partners V-A&C, L.P.

  
	
   

  	
  Its: General Partner

  
	
   

  	
   

  
	
   

  	
  By: Madison Dearborn
  Partners, LLC

  
	
   

  	
  Its: General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Its: Managing Director

  

 

 

[SIGNATURE PAGE TO SECURITYHOLDERS AGREEMENT]

 

 

	
   

  	
  MADISON
  DEARBORN CAPITAL PARTNERS V EXECUTIVE-A, L.P.

  
	
   

  	
   

  
	
   

  	
  By: Madison Dearborn
  Partners V-A&C, L.P.

  
	
   

  	
  Its: General Partner

  
	
   

  	
   

  
	
   

  	
  By: Madison Dearborn
  Partners, LLC

  
	
   

  	
  Its: General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Its: Managing Director

  
	
   

  	
   

  
	
   

  	
  MDCP
  CO-INVESTORS (VARIETAL), L.P.

  
	
   

  	
   

  
	
   

  	
  By: Madison Dearborn
  Partners V-A&C, L.P.

  
	
   

  	
  Its: General Partner

  
	
   

  	
   

  
	
   

  	
  By: Madison Dearborn
  Partners, LLC

  
	
   

  	
  Its: General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Its: Managing Director

  
	
   

  	
   

  
	
   

  	
  MDCP
  CO-INVESTORS (VARIETAL-2), L.P.

  
	
   

  	
   

  
	
   

  	
  By: Madison Dearborn
  Partners V-A&C, L.P.

  
	
   

  	
  Its: General Partner

  
	
   

  	
   

  
	
   

  	
  By: Madison Dearborn
  Partners, LLC

  
	
   

  	
  Its: General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Its: Managing Director

  

 

 

[SIGNATURE PAGE TO SECURITYHOLDERS AGREEMENT]

 

 

Exhibit A

 

SECURITYHOLDERS
AGREEMENT

 

Joinder

 

The undersigned is executing and delivering this
Joinder pursuant to the Securityholders Agreement dated as of                     ,
2007 (as the same may hereafter be amended, the “Securityholders Agreement”),
among Varietal Distribution Holdings, LLC (the “Company”), Madison
Dearborn Capital Partners V-A, L.P., Madison Dearborn Capital Partners V-C,
L.P., Madison Dearborn Capital Partners V Executive-A, L.P. and the other
persons named as parties therein from time to time.

 

By executing and delivering to the Company this
Joinder, the undersigned hereby agrees to become a party to, to be bound by,
and to comply with the provisions of the Securityholders Agreement as an
[Investor and Securityholder//Executive and Securityholder//Other
Securityholder and Securityholder] in the same manner as if the undersigned were
an original signatory to the Securityholders Agreement.

 

Unless otherwise specified in writing by the
undersigned, the initial address for notices to the undersigned for purposes of
the Agreement is the current home address, in the case of an individual, or
current address of the headquarters, in the case of an entity, for the
undersigned set forth in the books and records of the Company or its
Subsidiaries.

 

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

 

	
   

  	
  [Securityholder]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Its:Exhibit 10.3(d)

 

Execution Copy

 

MANAGEMENT UNIT PURCHASE AGREEMENT

 

THIS MANAGEMENT UNIT PURCHASE AGREEMENT
(this “Agreement”) is made as of June 29, 2007, by and between Varietal
Distribution Holdings, LLC, a Delaware limited liability company (the “Company”),
and the executive identified on the signature page attached hereto  (“Executive”) and is being entered
into pursuant to the Company’s 2007 Securities Purchase Plan (as amended, the “Plan”).
Certain definitions are set forth in Section 7 of this Agreement
and on the signature page attached hereto, which shall be deemed a part of this
Agreement. Capitalized terms used but not otherwise defined herein shall have
the meaning given to such terms in the LLC Agreement (as defined below).

 

WHEREAS, the Company, Varietal Distribution Merger Sub, Inc., a
Delaware corporation (“MergerCo”), and CDRV Investors, Inc., a Delaware
corporation (which is to be renamed VWR Funding, Inc. in connection with the
Merger) (“VWR”), have entered into that certain Agreement and Plan of
Merger, dated May 2, 2007 (as amended, the “Merger Agreement”), pursuant
to which, subject to the terms and conditions of the Merger Agreement, MergerCo
will merge with and into VWR (the “Merger”), with VWR as the surviving
corporation and as a result of which VWR will become a Subsidiary of the
Company;

 

WHEREAS, Executive owns a number of shares of VWR’s common stock, par
value $0.01 per share (“VWR Common Stock”) equal to the Number of Shares
of VWR Common Stock;

 

WHEREAS, Executive is an employee of the Company, VWR or their
respective Subsidiaries, and prior to the Merger, Executive desires to purchase
certain of the Company’s Class A Common Units and the Company’s Class A
Preferred Units by transferring to the Company shares of VWR Common Stock owned
by him or her and/or cash in exchange therefore on the terms and conditions
provided herein.

 

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

 

1.             Purchase and Sale of
Securities.

 

(a)           At the Closing (defined
below), upon the terms and conditions set forth in this Agreement and pursuant
to the Plan, Executive will purchase, and the Company will sell, (i) a
number of Class A Common Units equal to the Number of Common Units at a price
per unit of $1.00 (the “Purchased Common Units”) and (ii) a number of
Class A Preferred Units equal to the Number of Preferred Units at a price per
unit of $1,000.00 (the “Purchased Preferred Units” and together with the
Purchased Common Units, the “Purchased Securities”).

 

(b)           Subject to the terms and
conditions contained in this Agreement, the closing of the transactions
contemplated by this Agreement (the “Closing”) shall take place at the
offices of Kirkland & Ellis LLP, 200 East Randolph Drive, Chicago, Illinois
60601 immediately prior to the Effective Time (as defined in the Merger
Agreement) of the Merger or at such other 

 

 

time and date prior to the
Effective Time of the Merger or at such other place as the Company and
Executive may determine. The date on which the Closing occurs is referred to
herein as the “Closing Date.”  At
the Closing,

 

(i)            if the Number
of Rollover Shares (as defined below) is greater than zero, Executive shall
contribute, transfer and assign to the Company, free and clear of all
Encumbrances, and the Company shall acquire from Executive, all of Executive’s
right, title and interest in and to a number of shares of VWR Common Stock
equal to the Number of Rollover Shares (the “Rollover Shares”);

 

(ii)           if the Number
of Rollover Shares is greater than zero, Executive shall deliver to the Company
a stock certificate or certificates representing the Rollover Shares, accompanied
by a duly executed Assignment Separate from Certificate in the form of Exhibit
A hereto for the Rollover Shares;

 

(iii)          if the Cash
Purchase Price is greater than zero, Executive shall deliver to the Company an
amount of cash equal to the Cash Purchase Price by means of a cashier’s or
certified check or wire transfer of immediately available funds to an account
designated by the Company; and

 

(iv)          subject to the
receipt of the consideration and documents contemplated by the foregoing
clauses (i) through (iii), the Company shall update the Unit Ownership Ledger
(as defined in the LLC Agreement) to reflect the issuance of the Purchased
Securities to Executive (including recording a Capital Contribution by
Executive in respect of the Purchased Securities equal to the Aggregate Units
Purchase Price).

 

For purposes of this Agreement, “Number of Rollover Shares”
means a number of shares of VWR Common Stock equal to the result of (A) the
Aggregate Units Purchase Price minus the Cash Purchase Price, divided
by (B) the Per Share Merger Consideration (as defined in and determined
under the Merger Agreement).

 

(c)           The Company and Executive
agree (A) that the fair market value of the Purchased Securities is equal to
the fair market value of the consideration given by Executive pursuant to
clauses (i) and (iii) of Section 1(b) above, (B) that the consideration
given by Executive pursuant to clauses (i) and (iii) of Section 1(b)
above is intended to be a tax-free contribution of property to a partnership
pursuant to Code Section 721, and (C) to prepare or cause to be prepared their
tax returns in accordance with the foregoing clauses (A) and (B).

 

(d)           Executive shall not be
entitled to be paid any consideration pursuant to the Merger Agreement in
respect of the Rollover Shares. Executive shall not be entitled to submit a
letter of transmittal pursuant to the Merger Agreement covering any Rollover
Shares and to the extent any such letter has been or is submitted covering any
Rollover Shares, the Company, VWR and the paying agent under the Merger
Agreement shall be entitled to treat such letter of 

 

2

 

transmittal as not covering
any Rollover Shares. VWR and the paying agent under the Merger Agreement are
intended third party beneficiaries of this Section 1(d).

 

(e)           Within 30 days after the
Closing Date, Executive will make an effective election with the Internal
Revenue Service under Section 83(b) of the Internal Revenue Code and the
regulations promulgated thereunder, as amended (the “Code”), in the form
of Exhibit B attached hereto; provided that if Executive is
not a resident of United States and not otherwise subject to income taxation
under the laws of the United States, then Executive shall not be required to
make such an election (but may make such election at his or her option).

 

(f)            In connection with the
purchase and sale of the Purchased Securities, Executive represents and
warrants to the Company that as of the date hereof and as of the Closing:

 

(i)            The Purchased
Securities to be acquired by Executive pursuant to this Agreement will be
acquired for Executive’s own account and not with a view to, or intention of,
distribution thereof in violation of the Securities Act, or any applicable
state or foreign securities laws, and the Purchased Securities will not be
disposed of in contravention of the Securities Act or any applicable state or
foreign securities laws.

 

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

 

(iii)          All of the
Rollover Shares are owned of record and beneficially by Executive, free and
clear of all security interests, claims, liens, pledges, options, encumbrances,
charges, agreements, voting trusts, proxies and other arrangements or
restrictions whatsoever (“Encumbrances”). All of the Rollover Shares are
validly issued, fully paid and nonassessable. At the Closing, Executive shall
transfer to the Company the Rollover Shares, free and clear of all Encumbrances.

 

(iv)          Executive is an
employee of the Company, VWR or their respective Subsidiaries, is sophisticated
in financial matters and is able to evaluate the risks and benefits of the
investment in the Purchased Securities.

 

(v)           If the Company
has notified Executive (including, without limitation, by a notice set forth on
the signature page attached hereto) that it is relying or may rely on an
exemption pursuant to Regulation D of the Securities Act for the issuance of
the Purchased Securities to Executive, Executive is an “accredited investor”
within the meaning of Regulation D of the Securities Act.

 

(vi)          Executive is
able to bear the economic risk of his investment in the Purchased Securities
for an indefinite period of time because the Purchased Securities 

 

3

 

have
not been registered under the Securities Act and, therefore, cannot be sold
unless subsequently registered under the Securities Act or an exemption from
such registration is available.

 

(vii)         Executive (A)
has had an opportunity to ask questions and receive answers concerning the
terms and conditions of the offering of Purchased Securities, (B) has had
full access to such other information concerning the Company, VWR and their
respective Subsidiaries as he or she has requested in connection with the
investments contemplated hereby and (C) has received and reviewed a copy of
each of the Transaction Documents and the Confidential Information Memorandum,
dated June 2007, from VWR a reasonable period of time before the date hereof.

 

(viii)        Except as
otherwise set forth on the signature page hereto and except for any written
employment agreement entered into on or about the date hereof between Executive
and the Company, VWR or their respective Subsidiaries (such employment
agreement, if any, the “Employment Agreement”), Executive is neither
party to, nor bound by, any other employment agreement, consulting agreement,
noncompete agreement, non-solicitation agreement or confidentiality agreement.

 

(ix)           Executive is a
resident of the city, state and country indicated in Executive’s Address.

 

(g)           Executive acknowledges that
the Company is relying upon the accuracy and completeness of the
representations contained herein in complying with its obligations under
applicable securities laws.

 

(h)           Subject to the Employment
Agreement, if any, as an inducement to the Company to issue the Purchased
Securities to Executive, and as a condition thereto, Executive acknowledges and
agrees that neither the issuance of the Purchased Securities to Executive nor
any provision contained in this Agreement shall entitle Executive to remain in
the employment of the Company, VWR or their respective Subsidiaries or affect
the right of the Company, VWR or their respective Subsidiaries to terminate
Executive’s employment at any time for any reason.

 

(i)            At the Closing, if Executive
is lawfully married and Executive’s Address or the permanent residence of
Executive’s spouse is located in a community property jurisdiction, Executive’s
spouse shall execute and deliver to the Company the Consent in the form of Exhibit
C attached hereto.

 

(j)            At the Closing, Executive
shall become a party to the LLC Agreement and the Securityholders Agreement by
executing and delivering to the Company counterparts to such agreements in the
form of Exhibits D-1 and D-2 hereto. The Company’s obligation to
consummate the purchase and sale of the Purchased Securities pursuant to this Section
1 is conditioned upon Executive executing and delivering such counterparts
at the Closing.

 

4

 

(k)           The Company and Executive
hereby acknowledge and agree that this Agreement has been executed and
delivered, and the Purchased Securities have been issued hereunder, in
connection with and as a part of the compensation and incentive arrangements
between the Company and Executive, and pursuant and subject to the provisions
of the Plan. Executive agrees to be bound by and subject to the terms and
conditions of the Plan.

 

2.             Vesting of Founder Common
Units.

 

(a)           The Purchased Common Units
(other than the Founder Common Units) (the “Co-Invest Common Units”) and
the Purchased Preferred Units shall be fully vested upon the purchase thereof. A
number of Purchased Common Units equal to the Number of Founder Common Units
(the “Founder Common Units”) shall be subject to vesting in the manner
specified in this Section 2.

 

(b)           Except as otherwise provided
in this Section 2, the Founder Common Units shall become vested on a
daily, straight-line basis from the Closing Date through the fourth anniversary
of the Closing Date such that 100% of the Founder Common Units will have vested
as of the fourth anniversary of the Closing Date, but only as long as Executive
remains employed by the Company, VWR or any of their respective Subsidiaries.

 

(c)           Upon the occurrence of a
Sale of the Company, all Founder Common Units which have not yet become vested
shall become vested as of the date of consummation of the Sale of the Company,
if, as of such date, Executive has been continuously employed by the Company,
VWR or any of their Subsidiaries from the Closing Date through and including
such date; provided, that if Executive’s employment with the Company,
VWR or any of their Subsidiaries is terminated by such employer without Cause
during the 180 day period prior to the date of consummation of the Sale of the
Company, then all Founder Common Units which have not yet become vested shall
become vested as of the date of consummation of the Sale of the Company.

 

(d)           Upon the occurrence of a
Public Offering or Subsidiary Public Offering (the “IPO”), all Founder
Common Units which were scheduled to vest pursuant to Section 2(b) above
during the one-year period following the date of the IPO will instead vest as
of the consummation of the IPO, provided that Executive is employed by the
Company, VWR or any of their respective Subsidiaries as of the occurrence of
the IPO. All remaining unvested Founder Common Units will continue to vest on a
daily, straight-line basis from the Closing Date through the third anniversary
of the Closing Date such that 100% of the Founder Common Units will have vested
as of the third anniversary of the Closing Date, but only as long as Executive
remains employed by the Company, VWR or any of their respective Subsidiaries.

 

(e)           Upon the termination of
Executive’s employment by the Company, VWR or their respective Subsidiaries by
reason of Executive’s death or Disability, all Founder Common Units which were
scheduled to vest pursuant to Section 2(b) above during the one-year
period following the date of such termination of employment will instead vest
as of the date of such termination of employment.

 

5

 

(f)            Founder Common Units that
have become vested (“Vested Founder Common Units”) and the Co-Invest
Common Units are referred to herein collectively as “Vested Common Units.”  All Founder Common Units that have not vested
are referred to herein as “Unvested Founder Common Units.”  All Purchased Securities other than Unvested
Founder Common Units are referred to herein collectively as “Vested Units.”  All Vested Units that were originally subject
to vesting and that have been vested for less than six months as of the
Separation Date, if any, are referred to herein collectively as “Immature
Vested Units”.

 

3.             Repurchase Option.

 

(a)           In the event of a
Separation, the Purchased Securities (whether vested or unvested and whether
held by Executive or one or more of Executive’s transferees, other than the
Company and the Investors) will be subject to repurchase, in each case by the
Company and the Investors pursuant to the terms and conditions set forth in
this Section 3 and in Section 5 (the “Repurchase Option”).
If there is a Subsidiary Public Offering and the securities of such Subsidiary
are distributed to the members of the Company, then such Subsidiary will be
treated as the Company for purposes of this Section 3 and Section 5
with respect to any repurchase of the securities of such Subsidiary.

 

(b)           In the event of a
Separation, the Company (with the approval of the Board in the case of any
repurchase in excess of $100,000) may irrevocably elect to purchase all, but
not less than all, of the Unvested Founder Common Units and/or all, but not
less than all, of the Vested Units (subject to Section 5(b), other than
Immature Vested Units, if any) pursuant to this Section 3 and Section
5 by delivering written notice (a “Company Repurchase Notice”) to
the holder or holders of such securities within a period of 90 days after the
Separation Date (such period, a “Repurchase Option Period”); provided
that the Company may not exercise the Repurchase Option prior to the date that
is 18 months after the date hereof and, for all purposes of this Agreement, if
the Separation Date occurs prior to such date, the Repurchase Option Period
shall instead be a period of 90-days after the date that is 18 months after the
date hereof. Any Company Repurchase Notice will set forth the number of units
of each class to be acquired from each holder, the aggregate consideration to
be paid for such units and the time and place for the closing of the
transaction.

 

(c)           If for any reason the
Company does not elect to purchase all of the Purchased Securities pursuant to
the Repurchase Option, the Investors shall be entitled to exercise the
Repurchase Option for all, but not less than all, of the Unvested Founder
Common Units that the Company has not elected to purchase and/or all, but not
less than all, of the Vested Units (subject to Section 5(b), other than
Immature Vested Units, if any) that the Company has not elected to purchase
(collectively, “Available Securities”). As soon as practicable after the
Company has determined that it will not exercise the Repurchase Option with
respect to the Available Securities, but in any event within 20 days prior to
the expiration of the applicable Repurchase Option Period, the Company shall
give written notice (an “Option Notice”) to the Investors setting forth
the number of units of each class the Investors are entitled to purchase and
the purchase price for each type of the Available Securities. The Investors may
irrevocably elect 

 

6

 

to purchase all, but not
less than all, of the Unvested Founder Common Units that are Available
Securities and/or all, but not less than all, of the Vested Units (subject to Section
5(b), other than Immature Vested Units, if any), if any, that are Available
Securities by giving written notice to the Company within 20 days after
receiving the Option Notice. If more than one Investor elects to purchase an
aggregate number of Available Securities of a class or type greater than the
number of Available Securities of such class or type, the Available Securities
to be purchased by each such Investor shall be allocated among such Investors
based upon the number of Class A Common Units owned by each Investor. If the
Investors have elected to purchase any Available Securities, within 10 days
after the expiration of the 20-day period set forth above, the Company shall
notify each holder of Purchased Securities as to the number of units of each
class each Investor is entitled to purchase, the aggregate purchase price and
the time and place of the closing of the transaction (the “Investor
Repurchase Notice”). At the time the Company delivers the Investor
Repurchase Notice to the holder(s) of Purchased Securities, the Company shall
also deliver written notice to each Investor setting forth the number of units
of each class such Investor is entitled to purchase, the aggregate purchase
price and the time and place of the closing of the transaction.

 

(d)           The closing of the purchase
of the Purchased Securities pursuant to an exercise of the Repurchase Option
shall take place on the later of the date designated by the Company in the
applicable Company Repurchase Notice or the applicable Investor Repurchase
Notice, which date shall not be more than 30 days nor less than 15 days after
the later of the delivery of the applicable Company Repurchase Notice or the applicable
Investor Repurchase Notice, as applicable. The Company and each Investor, as
the case may be, will pay the purchase price for the Purchased Securities to be
purchased by it pursuant to the Repurchase Option by check(s) or wire
transfer(s) of good and immediately available funds. The Company and the
Investors will be entitled to receive customary representations and warranties
with respect to title and enforceability from the sellers regarding such sale.

 

(e)           The provisions of this Section
3 will terminate with respect to all Purchased Securities (other than
Unvested Founder Common Units) upon the consummation of a Qualified Public
Offering, and with respect to all Purchased Securities upon the consummation of
a Sale of the Company.

 

4.             Put Option.

 

(a)           In the event that a
Separation has occurred and the Company and the Investors have not together
elected to purchase all of the Purchased Securities prior to the expiration of
the applicable Repurchase Option Period, Executive may irrevocably elect to require
the Company to repurchase all, but not less than all, of the Purchased
Securities (subject to Section 5(b), other than Immature Vested Units,
if any) that the Company and the Investors have not elected to purchase
pursuant to the terms and conditions set forth in this Section 4 and Section
5 (the “Put Option”).

 

7

 

(b)           If Executive is entitled to
(as provided in Section 4(a)) and desires to exercise the Put Option,
Executive must notify the Company and each other holder of Purchased Securities
of such exercise in writing no earlier than the end of the applicable
Repurchase Option Period and no later than 60 days after the end of the
applicable Repurchase Option Period (a “Put Option Notice”). Within 10
days after the Company receives a Put Option Notice in accordance with this
Agreement, the Company shall send to each holder of Purchased Securities a
notice that will set forth the number of units of each class to be acquired
from each holder, the amount of the aggregate consideration to be paid for any
Purchased Securities that are Class A Preferred Units (“Preferred Units
Purchase Price”), if any, and the amount of the aggregate consideration to
be paid for any Purchased Securities that are not Class A Preferred Units (“Common
Units Purchase Price”) and the time and place for the closing of the
transaction (a “Put Option Closing Notice”).

 

(c)           The closing of the purchase
of any Purchased Securities pursuant to a Put Option shall take place on the
date designated by the Company in the applicable Put Option Closing Notice,
which date shall not be more than 30 days nor less than five days after the
delivery of the applicable Put Option Closing Notice. The Company will pay the
purchase price for the Purchased Securities to be purchased by it pursuant to a
Put Option (A) by check(s) or wire transfer(s) of good and immediately
available funds in an aggregate amount equal to the Preferred Units Purchase
Price, if any, and (B) by delivery of subordinated promissory note(s), in an
aggregate initial principal amount equal to the Common Units Purchase Price,
issued by the Company or a Subsidiary thereof payable in full in one lump sum
on the earlier of (i) a Sale of the Company, (ii) an IPO, but to the extent
that such payment is then prohibited by the Company’s or its Subsidiaries’
credit facility, payment shall instead be made as soon as permitted thereunder
and (iii) and the fifth anniversary of the date of issuance, which note(s)
shall bear interest at a rate of 8% per annum with such interest being payable
in arrears in cash on a quarterly basis.

 

(d)           The provisions of this Section
4 will terminate with respect to all Purchased Securities upon the earlier
to occur of a Sale of the Company and the consummation of a Qualified Public
Offering.

 

5.             Other Terms Applicable to
the Repurchase Option and the Put Option.

 

(a)           In the event of a
Separation, in connection with the exercise of either a Repurchase Option or a
Put Option, (i) the purchase price for each Unvested Founder Common Unit will
be the lesser of (A) Executive’s Original Cost for such unit and (B) the Fair
Market Value of such unit as of the date of the sending of the applicable
Company Repurchase Notice or the applicable Investor Repurchase Notice (for
purchases in connection with the exercise of a Repurchase Option), as
applicable, and/or as of the date of the sending of the applicable Put Option
Closing Notice for purchases in connection with the exercise of a Put Option
and (ii) the purchase price for each Class A Preferred Unit, each Co-Invest
Common Unit and each Vested Founder Common Unit, respectively, will be the Fair
Market Value of such unit as of the date of the sending of the applicable
Company Repurchase Notice or the applicable Investor Repurchase 

 

8

 

Notice (for purchases in
connection with the exercise of a Repurchase Option), as applicable, and/or as
of the date of the sending of the applicable Put Option Closing Notice for
purchases in connection with the exercise of a Put Option; provided,
however, that if Executive’s employment is terminated with Cause, the purchase
price for each Vested Founder Common Unit will be the lesser of (A) Executive’s
Original Cost for such unit and (B) the Fair Market Value of such unit as of
the date of the sending of the applicable Company Repurchase Notice or the
applicable Investor Repurchase Notice (for purchases in connection with the
exercise of a Repurchase Option), as applicable, and/or as of the date of the
sending of the applicable Put Option Closing Notice for purchases in connection
with the exercise of a Put Option.

 

(b)           Notwithstanding anything to
the contrary in this Agreement, (i) the Company may exercise the Repurchase
Option with respect to any Immature Vested Units at any time during the
eight-month period following the Separation Date on a basis consistent with the
procedures set forth in Section 3 and this Section 5 and for such
units the Repurchase Option Period shall instead be such eight-month period,
(ii) the Investors may exercise the Repurchase Option with respect to any
Immature Vested Units that are Available Securities consistent with Section
3 and Section 5 and the applicable Repurchase Option Period for such
exercise shall be the eight-month period as provided in the prior clause (i)
and (iii) Executive may exercise the Put Option with respect to any Immature
Vested Units that have not been elected to be repurchased pursuant to the
Repurchase Option but no earlier than the end of the applicable Repurchase
Option Period for Immature Vested Units (i.e., the eight-month period following
the Separation Date) and no later than 60 days following the end of such
Repurchase Option Period on a basis consistent with the procedures set forth in
Section 4 and this Section 5.

 

(c)           Notwithstanding anything to
the contrary contained in this Agreement, all repurchases of Purchased
Securities by the Company pursuant to the Repurchase Option or the Put Option
shall be subject to applicable restrictions contained in the Delaware Limited
Liability Company Act, the Delaware General Corporation Law or such other
governing corporate or limited liability company law, and in the Company’s and
its Subsidiaries’ debt financing agreements. If any such restrictions prohibit (i)
the repurchase of Purchased Securities hereunder which the Company is otherwise
entitled or required to make or (ii) dividends or other transfers of funds from
one or more Subsidiaries to the Company to enable such repurchases, then the
time periods provided in Sections 3 and 4 and in this Section
5 shall be suspended, and the Company may make such purchases at the
applicable purchase price therefore determined as of the time of repurchase, as
soon as it is permitted to do so under such restrictions.

 

(d)           Notwithstanding anything to
the contrary contained in this Agreement, the Company may pay all or any
portion of the purchase price to be paid by it as a result of its exercise of a
Repurchase Option or the exercise by Executive of a Put Option by distributing
to Executive securities issued by VWR Investors, Inc. or any other direct
Subsidiary of the Company, so long as VWR Investors, Inc. or such Subsidiary
directly or indirectly owns all or substantially all of the assets of the
Company on a consolidated basis, as provided in Section 4.7 of the LLC
Agreement.

 

9

 

6.             Restrictions on Transfer of
Purchased Securities. The Purchased Securities shall be subject to the
restrictions on Transfer of such units in the LLC Agreement and the
Securityholders Agreement and the holders of Purchased Securities shall not
Transfer any interest in any Purchased Securities, except in accordance with
such agreements or the provisions of Section 3 hereof.

 

7.             Definitions.

 

“Affiliate” of any particular Person means any other Person
controlling, controlled by, or under common control with such particular
Person, where “control” means the possession, directly or indirectly, of the
power to direct the management and policies of a Person whether through the
ownership of voting securities, by contract, or otherwise.

 

“Board” means the Company’s board of managers or any successor
governing body thereto. The Board may delegate to a committee thereof the
duties and role of the Board contemplated hereby.

 

“Cause” means (A) if Executive is a party to an Employment
Agreement and such Employment Agreement defines the term “Cause”, the
definition of Cause set forth in such Employment Agreement or (B) otherwise (i)
the commission of a felony or a crime involving moral turpitude or the
commission of any other act or omission involving dishonesty or fraud with
respect to the Company, VWR or any of their respective Subsidiaries or any of
their customers or suppliers, (ii) substantial and repeated failure to perform
duties as reasonably directed by the Board or a supervisor or report, after
providing Executive with 15 days written notice and a reasonable opportunity to
remedy such failure, (iii) gross negligence or willful misconduct with respect
to the Company, VWR or any of their respective Subsidiaries, (iv) conduct
tending to bring the Company, VWR or any of their respective Subsidiaries into
substantial public disgrace or disrepute, and (v) any breach by Executive of
any non-competition, non-solicitation or confidentiality covenants to which
Executive is subject.

 

“Disability” means the disability of Executive caused by any
physical or mental injury, illness or incapacity as a result of which Executive
is unable to effectively perform the functions of Executive’s duties for a
continuous period of more than 90 days or for 120 days (whether or not
continuous) within a 180 day period, as reasonably determined by the Board in
good faith.

 

“Fair Market Value” has the meaning given to such term in the
Securityholders Agreement.

 

“Investors” has the meaning given to such term in the
Securityholders Agreement.

 

“LLC Agreement” means the Limited Liability Company Agreement of
the Company, dated on or about the date hereof, among the parties from time to
time party thereto, as amended from time to time pursuant to its terms.

 

10

 

“Original Cost” means, (i) with respect to each Class A Common
Unit purchased hereunder, $1.00 (as proportionately adjusted for all subsequent
unit splits, unit dividends and other recapitalizations) and (ii) with respect
to each Class A Preferred Unit purchased hereunder, $1,000.00 (as
proportionately adjusted for all subsequent unit splits, unit dividends and
other recapitalizations).

 

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

 

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

 

“Purchased Securities” will continue to be Purchased Securities
in the hands of any holder other than Executive (except for the Company and the
Investors and except for transferees in a Public Sale (as defined in the
Securityholders Agreement)), and except as otherwise provided herein, each such
other holder of Purchased Securities will succeed to all rights and obligations
attributable to Executive as a holder of Purchased Securities hereunder. Purchased
Securities will also include equity of the Company (or a corporate successor to
the Company or a Subsidiary of the Company) issued with respect to Purchased
Securities (i) by way of a unit split, unit dividend, conversion, or other
recapitalization, (ii) by way of reorganization or recapitalization of the Company
in connection with the incorporation of a corporate successor prior to a Public
Offering or (iii) by way of a distribution of securities of a Subsidiary of the
Company to the members of the Company following or with respect to a Subsidiary
Public Offering. Notwithstanding the foregoing, all Unvested Founder Common
Units shall remain Unvested Founder Common Units after any Transfer thereof and
shall only become Vested Common Units thereafter to the extent provided in Section
2 hereof.

 

“Qualified Public Offering” has the meaning given to such term
in the Securityholders Agreement.

 

“Sale of the Company” means any transaction or series of
transactions pursuant to which any Independent Third Party (as defined in the
Securityholders Agreement) in the aggregate acquire(s) (i) a majority of the
voting equity securities of the Company (whether by merger, liquidation,
consolidation, reorganization, combination, sale or transfer of the Company’s
equity securities, securityholder or voting agreement, proxy, power of attorney
or otherwise) or (ii) all or substantially all of the Company’s assets
determined on a consolidated basis.

 

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

 

11

 

“Securityholders Agreement” means the Securityholders Agreement,
dated on or about the date hereof, among the Company and certain of its
securityholders, as amended from time to time pursuant to its terms.

 

“Separation” means Executive ceasing to be employed by the
Company, VWR or any of their respective Subsidiaries for any reason.

 

“Separation Date” means the date on which Executive ceases to be
employed by the Company, VWR or any of their respective Subsidiaries for any
reason.

 

“Subsidiary” has the meaning given to such term in the LLC
Agreement.

 

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

 

“Transaction Documents” means this Agreement, the Plan, the LLC
Agreement, the Securityholders Agreement and all other agreements, instruments,
certificates, and other documents to be entered into or delivered by Executive
in connection with the transactions contemplated to occur pursuant to this
Agreement, the Plan, the LLC Agreement, the Securityholders Agreement and any
side agreements related to the foregoing.

 

“Transfer” means to sell, transfer, assign, pledge or otherwise
dispose of (whether with or without consideration and whether voluntarily or
involuntarily or by operation of law), but explicitly excluding exchanges of
one class of Purchased Securities to or for another class of Purchased
Securities.

 

8.             Notices. All notices,
demands, or other communications to be given or delivered under or by reason of
the provisions of this Agreement shall be in writing and shall be deemed to
have been given or made (i) when delivered personally to the recipient, (ii)
when telecopied to the recipient (with hard copy sent to the recipient by
reputable overnight courier service (charges prepaid) that same day) if
telecopied before 5:00 p.m. Chicago, Illinois time on a business day, and
otherwise on the next business day after being telecopied, (iii) one business
day after being sent to the recipient by reputable overnight courier service
(charges prepaid), or (iv) when received via electronic mail by the recipient
(with hard copy sent to the recipient by reputable overnight courier service
(charges prepaid) that same day) if received via electronic mail before 5:00
p.m. Chicago, Illinois time on a business day, and otherwise on the next
business day after such receipt. Such notices, demands, and other
communications shall be sent to the Company at the following address and to
Executive at Executive’s Address or to the address for Executive set forth from
time to time in the Company’s books and records (and if Executive has notified
the Company that he or she is represented by legal counsel in connection with
the transactions contemplated hereby, with a copy (which shall not constitute
notice) to such counsel’s address as listed by Executive on the signature page
hereto), or to such other address or to the attention of such other person as
the recipient party has specified by prior written notice to the sending party.

 

12

 

Varietal Distribution Holdings, LLC

c/o VWR International, LLC

1310 Goshen Parkway

PO Box 2656

West Chester, Pennsylvania 19380

Facsimile:  (610) 701-9896

Telephone:  (610) 719-7072

Electronic mail: George_VanKula@vwr.com

Attention:  George Van Kula, Esq.

 

with copies to (which shall not constitute
notice):

 

Madison Dearborn Capital Partners

Three First National Plaza

38th Floor

Chicago, Illinois  60602

Facsimile:  (312) 895-1056

Telephone:  (312) 895-1000

Electronic mail: 
mtresnowski@MDCP.com

Attention:  General Counsel

 

and

 

Kirkland & Ellis LLP

200 East Randolph Drive

Chicago, IL 60601

Facsimile:  (312) 861-2200

Telephone: (312) 861-2000

Electronic mail: 
sperl@kirkland.com; mfennell@kirkland.com

Attention:  Sanford E. Perl, P.C.

Mark A. Fennell

 

9.             Additional Provisions
Applicable to Non-US Residents. If Executive is a resident
(as indicated by the address for notices to Executive set forth on the
signature page hereto) of a country other than the United States, the
provisions of Annex 1 attached hereto, if any, shall also be applicable
to Executive and the Company and shall constitute a part of this Agreement as
if set forth herein.

 

10.           General Provisions.

 

(a)           Termination Related to
Merger Agreement Termination. If the Closing has not
occurred prior to the earliest to occur of (the “Early Termination Date”)
(i) the termination of the Merger Agreement pursuant to the terms thereof and
(ii) the first anniversary 

 

13

 

of the date hereof, this
Agreement shall terminate and be of no further force or effect as of the Early
Termination Date.

 

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

 

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

 

(d)           Entire Agreement. This
Agreement, those documents expressly referred to herein, the other documents of
even date herewith, and the other Transaction Documents embody the complete
agreement and understanding among the parties and supersede and preempt any
prior understandings, agreements, or representations by or among the parties,
written or oral, which may have related to the subject matter hereof in any way.
Any rights of Executive against VWR or its Affiliates or otherwise to acquire
or be granted capital stock of VWR or options exercisable for capital stock of
VWR or restricted stock units or deferred share units with respect to the
equity of VWR shall be superseded by this Agreement; provided that the
foregoing shall not supersede any of Executive’s rights under the Merger
Agreement with respect to outstanding shares of Company Stock (as defined in
the Merger Agreement), Company Options (as defined in the Merger Agreement),
RSUs (as defined in the Merger Agreement) or DSUs (as defined in the Merger
Agreement). As of the date hereof, this Agreement constitutes the legal, valid
and binding obligation of the Company, enforceable in accordance with its
terms, and the execution, delivery and performance of this Agreement by the
Company does not and will not conflict with, violate or cause a breach of any
agreement or instrument to which the Company is a party or subject or any
judgment, order or decree to which the Company is subject.

 

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

 

(f)            Counterparts. This
Agreement may be executed in multiple counterparts with the same effect as if
all signing parties had signed the same document. All counterparts shall be
construed together and constitute the same instrument.

 

(g)           Successors and Assigns. Except as
otherwise provided herein, this Agreement shall bind and inure to the benefit
of and be enforceable by the Company, Executive and the Investors and their
respective successors and assigns (including subsequent holders of Purchased
Securities); provided that the rights and obligations of Executive under
this 

 

14

 

Agreement shall not be
assignable except in connection with a permitted transfer of Purchased
Securities hereunder.

 

(h)           Applicable Law. This
Agreement shall be governed by, and construed in accordance with, the laws of
the State of Delaware, without giving effect to any choice of law or conflict
of law rules or provisions (whether of the State of Delaware or any other
jurisdiction) that would cause the application of the laws of any jurisdiction
other than the State of Delaware.

 

(i)            Consent to Jurisdiction. Executive
irrevocably submits to the nonexclusive jurisdiction of the United States
District Court for the State of Delaware and the state courts of the State of
Delaware for the purposes of any suit, action or other proceeding arising out
of this Agreement or any transaction contemplated hereby. Executive further
agrees that service of any process, summons, notice or document by United
States certified or registered mail to Executive’s Address and to Executive’s
address set forth in the Company’s books and records or such other address or
to the attention of such other person as the recipient party has specified by
prior written notice to the sending party shall be effective service of process
in any action, suit or proceeding in Delaware with respect to any matters to
which it has submitted to jurisdiction as set forth above in the immediately
preceding sentence. Executive irrevocably and unconditionally waives any
objection to the laying of venue of any action, suit or proceeding arising out
of this Agreement or the transactions contemplated hereby in the United States
District Court for the State of Delaware or the state courts of the State of
Delaware and hereby irrevocably and unconditionally waives and agrees not to
plead or claim in any such court that any such action, suit or proceeding
brought in such court has been brought in an inconvenient forum.

 

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

 

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

 

15

 

(l)            Remedies. Each of the
parties to this Agreement (and the Investors as third-party beneficiaries) will
be entitled to enforce its rights under this Agreement specifically, to recover
damages caused by any breach of any provision of this Agreement and to exercise
all other rights existing in its favor. The parties hereto agree and
acknowledge that money damages may not be an adequate remedy for any breach of
the provisions of this Agreement and that any party may in its sole discretion
apply to any court of law or equity of competent jurisdiction (without posting
any bond or deposit) for specific performance and/or other injunctive relief in
order to enforce or prevent any violations of the provisions of this Agreement.
In the event of a contest between the Company and Executive regarding a breach
or alleged breach of this Agreement in which Executive substantially prevails,
then the Company agrees to pay (within ten business days of receipt of an
invoice from Executive), all legal fees and expenses that Executive has
incurred as a result of such contest.

 

(m)          Amendment and Waiver. The
provisions of this Agreement may be amended and waived only with the prior
written consent of the Company, Executive and the holders of the Required
Interest (as defined in the Securityholders Agreement).

 

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

 

(o)           Survival. All
covenants, representations and warranties contained herein or made in writing
by any party in connection herewith shall survive the execution and delivery of
this Agreement and the consummation of the transactions contemplated hereby. Except
as set forth in Section 10(a) above, this Agreement shall survive a
Separation and shall remain in full force and effect after such Separation.

 

(p)           Adjustments of Numbers. All numbers
set forth herein that refer to unit prices or amounts will be appropriately
adjusted to reflect unit splits, unit dividends, combinations of units and
other recapitalizations affecting the subject class of equity.

 

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

 

16

 

(r)            Rights Granted to the
Investors and their Affiliates. Any rights granted to
Executive or to the Investors and their respective Affiliates hereunder may
also be exercised (in whole or in part) by their designees.

 

(s)           Subsidiary Public Offering. If, after
consummation of a Subsidiary Public Offering, the Company distributes
securities of such Subsidiary to members of the Company, then such securities
will be treated in the same manner as (but excluding any “preferred” features
of the units with respect to which they were distributed) the units with
respect to which they were distributed for purposes of Sections 1, 2,
3, 4 and 5 hereof.

 

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

 

(u)           Currency. All
transactions contemplated by this Agreement are contemplated to occur in United
States dollars and any reference herein to dollars or “$” shall be deemed to
refer to United States dollars.

 

*  *  *  *  *

 

17

 

IN WITNESS WHEREOF, the parties hereto have executed this Management
Unit Purchase Agreement as of the day and year first above written.

 

	
   

  	
  VARIETAL DISTRIBUTION HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Its:

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
						

 

The following additional definitions shall apply to the Agreement:

 

“Aggregate Units Purchase Price” means $              .

 

“Cash Purchase Price” means $              .

	
  “Executive’s Address “ means:

  [Name of Executive]

  [Address 1]

  [Address 2]

  [Country]

  	
   

  	
  Address of legal counsel, if any to Executive:

  

 

“Number of Common Units” means          
Class A Common Units.

 

“Number of Founder Common Units” means              
Class A Common Units.

 

“Number of Preferred Units” means             
Class A Preferred Units.

 

“Number of Shares of VWR Common Stock” means             
shares of VWR Common Stock.

 

The Company hereby notifies you that it may rely on one or more of the
following exemptions that are indicated with a check or “x” from the
registration requirements of the Securities Act with respect to the sale of the
Purchased Securities hereunder:         Rule
701;         Regulation D;        
Regulation S.

 

[Signature Page to Management Unit Purchase
Agreement]

 

 

EXHIBIT A

 

ASSIGNMENT SEPARATE FROM CERTIFICATE

 

FOR VALUE RECEIVED, [name of executive] does hereby sell, assign and
transfer unto Varietal Distribution Holdings, LLC, a Delaware limited liability
company (the “LLC”),                    
shares of the common stock, par value $0.01 per share, of CDRV Investors, Inc.
(the “Corporation”) standing in the undersigned’s name on the books of
the Corporation represented by Certificate Nos.                          
herewith and does hereby irrevocably constitute and appoint each officer of the
LLC and any other person designated by one of them (acting alone or with one or
more other such officers) as attorney to transfer said shares on the books of
the Corporation with full power of substitution in the premises.

 

	
  Dated:

  	
   

  	
  , 2007

  	
   

  	
   

  
	
   

  	
  [NAME]

  	
   

  
						

 

 

EXHIBIT
B

 

                       ,
2007

 

PROTECTIVE ELECTION TO INCLUDE MEMBERSHIP

INTEREST IN GROSS INCOME PURSUANT TO

SECTION 83(b) OF THE INTERNAL REVENUE CODE

 

On                     ,
2007 (the “Acquisition Date”), the undersigned acquired a limited
liability company  membership interest
(the “Membership Interest”) in Varietal Distribution Holdings, LLC, a
Delaware limited liability company (the “Company”), for $                    .
Pursuant to the Limited Liability Company Agreement of the Company, the
undersigned is entitled to an interest in Company capital exactly equal to the
amount paid therefor and an interest in Company profits.

 

Based on current Treasury Regulation §1.721-1(b), Proposed Treasury
Regulation §1.721-1(b)(1), and Revenue Procedures 93-27 and 2001-43, the
undersigned does not believe that issuance of the Membership Interest to the
undersigned is subject to the provisions of §83 of the Internal Revenue Code
(the “Code”). In the event that the sale is so treated, however, the
undersigned desires to make an election to have the receipt of the Membership
Interest taxed under the provisions of Code §83(b) at the time the undersigned
acquired the Membership Interest.

 

Therefore, pursuant to Code §83(b) and Treasury Regulation §1.83-2
promulgated thereunder, the undersigned hereby makes an election, with respect
to the Membership Interest, to report as taxable income for the calendar year
2007  the excess (if any) of the
value of the Membership Interest on the Acquisition Date over the purchase
price thereof.

 

The following information is supplied in accordance with Treasury
Regulation § 1.83-2(e):

 

1.             The name, address and social security
number of the undersigned:

 

[to be inserted]

 

 

 

2.             A description of the property with respect
to which the election is being made:  A
membership interest in the Company entitling the undersigned to an interest in
the Company’s capital exactly equal to the amount paid therefore and a
percentage of the Company’s profits.

 

 

3.             The date on which the Membership Interest
was transferred:  the Acquisition Date. The
taxable year for which such election is made: 2007.

 

4.             The restrictions to which the property is
subject: If the undersigned ceases to be employed by the Company or any of its
subsidiaries, the unvested portion of the units will be subject to repurchase
by the Company at the lower of cost or fair market value.

 

5.             The fair market value on the Acquisition
Date of the property with respect to which the election is being made,
determined without regard to any lapse restrictions and in accordance with
Revenue Procedure 93-27: $                        .

 

6.             The amount paid or to be paid for such
property: $                        .

 

*   *   *   *   *

 

A copy of this election is being furnished to the Company pursuant to
Treasury Regulation § 1.83-2(e)(7). A copy of this election will be
submitted with the 2007  federal
income tax return of the undersigned pursuant to Treasury Regulation
§ 1.83-2(c), if any.

 

	
  Dated:  

  	
   

  	
  , 2007

  
	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Name to be inserted]

  
					

 

 

EXHIBIT
C

 

SPOUSAL CONSENT

 

The undersigned spouse of Executive hereby acknowledges that I have
read the foregoing Management Unit Purchase Agreement executed by Executive as
of the date hereof, and each of the LLC Agreement and the Securityholders
Agreement referred to therein, and that I understand their contents. I am aware
that the foregoing Management Unit Purchase Agreement and the Securityholders
Agreement provide for the sale or repurchase of my spouse’s Purchased
Securities under certain circumstances and/or impose other restrictions on such
securities (including, without limitation, restrictions on transfer). I agree
that my spouse’s interest in these securities is subject to these restrictions
and any interest that I may have in such securities shall be irrevocably bound
by these agreements and further, that my community property interest, if any,
shall be similarly bound by these agreements.

 

	
   

  	
   

  	
   

  	
  Date: 

  	
   

  	
  , 2007

  
	
   

  	
   

  
	
   

  	
   

  	
  Spouse’s Name:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Date:

  	
   

  	
  , 2007

  
	
   

  	
   

  
	
   

  	
  Witness’

  	
   

  	
  Name:

  	
   

  	
   

  
												

 

 

EXHIBIT
D-1

 

LLC AGREEMENT

 

Joinder

 

The undersigned is executing and delivering this Joinder pursuant to
the Limited Liability Company Agreement of Varietal Distribution Holdings, LLC
(the “Company”) dated on or about the date hereof (as the same may
hereafter be amended, the “LLC Agreement”), among the Company and the
Company’s unitholders named therein from time to time.

 

By executing and delivering to the Company this Joinder, the
undersigned hereby agrees to become a party to, to be bound by, and to comply
in full with the provisions of the LLC Agreement as a Unitholder in the same
manner as if the undersigned were an original signatory to the LLC Agreement.

 

Accordingly, the undersigned has executed and delivered this Joinder as
of                    ,
2007.

 

 

	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  

 

EXHIBIT
D-2

 

SECURITYHOLDERS AGREEMENT

 

Joinder

 

The undersigned is executing and delivering this Joinder pursuant to
the Securityholders Agreement dated on or about the date hereof (as the same
may hereafter be amended, the “Securityholders Agreement”), among
Varietal Distribution Holdings, LLC (the “Company”), Madison Dearborn
Capital Partners V-A, L.P., Madison Dearborn Capital Partners V-C, L.P.,
Madison Dearborn Capital Partners V Executive-A, L.P. and the other persons
named as parties therein from time to time.

 

By executing and delivering to the Company this Joinder, the
undersigned hereby agrees to become a party to, to be bound by, and to comply
with the provisions of the Securityholders Agreement as a Securityholder and as
an Executive in the same manner as if the undersigned were an original
signatory to the Securityholders Agreement.

 

Accordingly, the undersigned has executed and delivered this Joinder as
of                  ,
2007.

 

	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name

  

 

 

ANNEX
1

 

SUPPLEMENTAL PROVISIONS FOR NON-US RESIDENTS

 

If Executive is a resident (as indicated by the address for notices to
Executive set forth on the signature page hereto) of a country other than the
United States, Executive represents, warrants and/or covenants to the Company
as follows:  (A) Executive is not a “U.S.
person” (as defined in Rule 902 as promulgated under the Securities Act), (B)
Executive is not acquiring any Purchased Securities for the account or benefit
of any person who is a U.S. person and the issuance of the Purchased Securities
to Executive constitutes an “Offshore Transaction,” as defined in Rule 902 as
promulgated under the Securities Act, (C) Executive will only transfer or
resell the Purchased Securities, in whole or in part, in accordance with the
Plan, this Agreement, the LLC Agreement, the Securityholders Agreement and (1)
the provisions of Regulation S (Rule 901 through 905) and the Preliminary Notes
(as defined in Regulation S), (2) pursuant to registration under the Securities
Act, or (3) pursuant to an available exemption from the registration
requirements of the Securities Act, (D) Executive will not engage in hedging
transactions with regard to any Purchased Securities unless in compliance with
the Securities Act and (E) Executive’s Purchased Securities have not been
registered under the Securities Act and may not be offered or sold in the
United States or to U.S. persons (other than distributors) unless such
securities are registered under the Securities Act, or an exemption from the
registration requirements of the Securities Act is available.

 

 

Named Executive Officer Invested Amounts

 

	
  John M. Ballbach

  	
   

  	
  -

  	
   

  	
  $

  	
  6,299,280

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jack L. Wyszomierski

  	
   

  	
  -

  	
   

  	
  $

  	
  2,144,655

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  George Van Kula

  	
   

  	
  -

  	
   

  	
  $

  	
  1,800,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Theodore C. Pulkownik

  	
   

  	
  -

  	
   

  	
  $

  	
  2,500,000

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]