Document:

Exhibit 10.22

SALE PARTICIPATION AGREEMENT

KKR Vision Aggregator L.P.

9 West 57th Street, 42nd Floor

New York, NY 10019

March 13, 2014

 

To:

Dear

You have entered into a Management Stockholder’s Agreement, dated as of the date hereof, between Nautilus Parent, Inc., a Delaware corporation (the “Company”), and you (the “Stockholder’s Agreement”) relating to (i) the exchange of all or a portion of your shares of common stock of Vision Holding Corp., a Delaware corporation (“VHC”), held by you immediately prior to the effective time of the Merger for Common Stock of the Company pursuant to the Contribution Agreement to be entered into between you and the Company prior to the date hereof, (ii) the exchange of all or a portion of your options to purchase shares of common stock of VHC outstanding immediately prior to the effective time of the Merger for fully-exercisable options to purchase shares of Common Stock after the Merger (the “Rollover Options”), (ii) the purchase/subscription by you of Purchased Stock; and/or (iii) the grant by the Company to you of options (the “New Options”, and together with the Rollover Options, the “Options”) to purchase/subscribe for Common Stock. Capitalized terms used but not defined herein shall have the meaning ascribed to such terms in the Stockholder’s Agreement. KKR Vision Aggregator L.P., a Delaware limited partnership (“Investor Holdings”), which is the parent entity of the Company, hereby agrees with you as follows pursuant to the terms of this Sale Participation Agreement (this “Agreement”), effective as of the Effective Date:

1. (a) In the event that at any time on or after the Effective Date, Investor Holdings or any of its Affiliates proposes to sell directly for cash or any other consideration any Common Stock owned by Investor Holdings or any such Affiliate, in any transaction other than (x) a Public Offering or (y) a sale, directly or indirectly, to an Affiliate of Investor Holdings, then, unless Investor Holdings is entitled to and does exercise the drag-along rights pursuant to Section 8 below and the Drag Transaction is consummated, Investor Holdings will notify the applicable Management Stockholder Entities in writing (a “Notice”) of such proposed sale (a “Proposed Sale”) specifying the principal terms and conditions of the Proposed Sale, including (i) the number of shares of Common Stock to be included in the Proposed Sale, (ii) the percentage of the outstanding Common Stock at the time the Notice is given that is represented by the number of shares of Common Stock to be included in the Proposed Sale, (iii) the price per share of Common Stock subject to the Proposed Sale, including a description of any pricing formulae and of any non-cash consideration sufficiently detailed to permit valuation thereof, (iv) the Tag Along Sale Percentage (as defined below), (v) the name and address of the Person or Persons to whom the offered Common Stock is proposed to be sold, and (vi) if known, the date of the Proposed Sale.

(b) If, within ten (10) Business Days after the delivery of Notice under Section 1(a) (the “Exercise Period”), Investor Holdings receives from a Management Stockholder Entitya written request (a “Request”) to include an amount of Common Stock held by such Person in the Proposed Sale (which Request shall be irrevocable except (i) as set forth in paragraphs (c) and (d) of this Section 1 below or (ii) if otherwise mutually agreed to in writing by the Management Stockholder Entity and Investor Holdings), then the Common Stock held by the Management Stockholder Entities, including shares of Common Stock which the Management Stockholder Entities are then entitled to acquire under any unexercised portion of Options, to the extent such Option is then exercisable or would become exercisable as a result of the consummation of the Proposed Sale (not in any event to exceed the Tag Along Sale Percentage multiplied by the aggregate number of shares of Common Stock held by the Management Stockholder Entities plus all shares of Common Stock which the Management Stockholder Entities are then entitled to acquire under any unexercised portion of Options, to the extent such Option is then exercisable or would become exercisable as a result of the consummation of the Proposed Sale) will be so included as provided herein; provided that only one Request, which shall be executed by the Management Stockholder Entities may be delivered with respect to any Proposed Sale. Promptly after the execution of the sale agreement entered into in connection with the Proposed Sale (the “Sale Agreement”), Investor Holdings will furnish the Management Stockholder Entities with a copy of such Sale Agreement, if any. For purposes of this Agreement, the “Tag Along Sale Percentage” shall mean the fraction, expressed as a percentage, determined by dividing the number of shares of Common Stock to be purchased from Investor Holdings and any of its Affiliates in the Proposed Sale by the total number of shares of Common Stock owned directly or indirectly by Investor Holdings and all of its Affiliates. In any Request, a Management Stockholder Entity shall be entitled to elect whether the Common Stock to be sold by such Person in the Proposed Sale shall consist of (x) Investment Stock owned by such Person and/or (y) shares of Common Stock which the Management Stockholder Entities are then entitled to acquire under any unexercised portion of Options, to the extent such Option is then exercisable or would become exercisable as a result of the consummation of the Proposed Sale, the amounts of securities referenced in each of (x) or (y) to be included in the Proposed Sale, and any preference to be given to securities referenced in either of (x) or (y) as compared to the other in any Proposed Sale. Subject to the other limitations set forth in this Agreement, Investor Holdings agrees to be bound by, and effectuate, any election made in accordance with the immediately preceding sentence to the extent reasonably practical and not otherwise detrimental to the Proposed Sale.

(c) Notwithstanding anything to the contrary contained in this Agreement, if any of the economic terms of the Proposed Sale change in a manner that is materially less favorable to the selling Management Stockholder Entities than those described in the Notice, including without limitation if the per share price will be less than the per share price disclosed in the Notice, Investor Holdings will provide written notice thereof to each Management Stockholder Entity who has made a Request and each such Person will then be given an opportunity to withdraw the offer contained in such holder’s Request (by providing prompt (and in any event within five (5) Business Days or, if the proposed closing with respect to the Proposed Sale is to occur within five (5) Business Days or less, no later than three (3) Business Days prior to such closing) written notice of such withdrawal to Investor Holdings), whereupon such withdrawing Person will be released from all obligations thereunder.

(d) If Investor Holdings does not complete the Proposed Sale by the end of the 180th day following the date of the effectiveness of the Notice, each selling Management Stockholder Entity may elect to be released from all obligations under the applicable Request by notifying Investor Holdings in writing of its desire to so withdraw. Upon receipt of that withdrawal notice, the Notice of the relevant Management Stockholder Entity shall be null and void, and it will then be necessary for a separate Notice to be furnished, and the terms and provisions of paragraphs (a) and (b) of this Section 1 separately complied with, in order to consummate such Proposed Sale pursuant to this Section 1, unless the failure to complete such Proposed Sale resulted from any failure by any selling Management Stockholder Entity to comply with the terms of this Section 1.

2.   (a) The number of shares of Common Stock that the Management Stockholder Entities will be permitted to include in a Proposed Sale pursuant to a Request will be the lesser of (i) the number of shares of Common Stock that such Management Stockholder Entities have offered to sell in the Proposed Sale as set forth in the Request (which shall be based upon such Management Stockholder Entities’ Tag Along Sale Percentage) and (ii) the number of shares of Common Stock determined by multiplying (A) the number of shares of Common Stock that the purchaser in the Proposed Sale has agreed to purchase by (B) a fraction the numerator of which is the number of shares of Common Stock owned by the Management Stockholder Entities plus all shares of Common Stock which the Management Stockholder Entities are then entitled to acquire under any unexercised portion of Options, to the extent such Option is then exercisable or would become exercisable as a result of the consummation of the Proposed Sale and the denominator of which is the total number of shares of Common Stock owned by the Management Stockholder Entities and all other Persons participating in such sale as tag-along sellers pursuant to Other Management Stockholder Agreements or other agreements (all such participants, the “Tag Along Sellers”) plus all shares of Common Stock which the Tag Along Sellers are then entitled to acquire under any unexercised portion of Options, to the extent such Options are then exercisable or would become exercisable as a result of the consummation of the Proposed Sale, plus all shares of Common Stock owned by Investor Holdings and all of its Affiliates. For purposes of the foregoing, each Management Stockholder Entity shall be eligible to conditionally exercise its exercisable Options through, at the Management Stockholder Entity’s election, withholding an aggregate number of shares of Common Stock subject to such exercisable Options having a fair market value equal to the aggregate exercise price and minimum withholding for taxes due in respect of such exercise, with the completion of such exercise being subject to the completion of the Proposed Sale.

(b) If one or more Tag Along Sellers elect not to include the maximum number of shares of Common Stock which such holders would have been permitted to include in a Proposed Sale pursuant to Section 2(a) (such non-included shares, the “Eligible Shares”), then each of Investor Holdings and the remaining Tag Along Sellers, or any of them, will have the right to sell in the Proposed Sale a number of additional shares of its Common Stock equal to its pro rata portion of the number of Eligible Shares, based on the relative number of shares of Common Stock then held by each such holder plus all shares of Common Stock which such holder is then entitled to acquire under any unexercised portion of Options, to the extent such Options are then exercisable or would become exercisable as a result of the consummation of the Proposed Sale; provided that such additional shares of Common Stock which any such holder or holders propose to sell shall not be included in any calculation made pursuant to Section 2(a) for the purpose of determining the number of shares of Common Stock which the Management Stockholder Entities will be permitted to include in a Proposed Sale. Investor Holdings will have the right to sell in the Proposed Sale additional shares of Common Stock owned by it equal to the number, if any, of remaining Eligible Shares which will not be included in the Proposed Sale pursuant to the foregoing.

3.   Except as may otherwise be provided herein, shares of Common Stock subject to a Request will be included in a Proposed Sale pursuant hereto and in any agreements with purchasers relating thereto on the same terms and subject to the same conditions applicable to the shares of Common Stock which Investor Holdings proposes to sell in the Proposed Sale. Such terms and conditions shall include, without limitation: the sale price; the payment of fees, commissions and expenses; the provision of, and customary representations and warranties as to, information reasonably requested by Investor Holdings covering matters regarding the Management Stockholder Entities’ ownership of shares; and the provision of requisite indemnification on a several but not joint basis; provided that any indemnification provided by the Management Stockholder Entities shall, with respect to each claim for indemnification made against the sellers, be paid by the sellers pro rata in proportion with the number of shares of Common Stock to be sold; provided, further, that no Management Stockholder Entity shall be required to indemnify any Person for an amount, in the aggregate, in excess of the net cash proceeds received by such Management Stockholder Entity in such Proposed Sale. Notwithstanding anything to the contrary in the foregoing, if the consideration payable for shares of Common Stock is securities and the acquisition of such securities by a Management Stockholder Entity would reasonably be expected to be prohibited under applicable U.S., foreign, or state securities laws, such Management Stockholder Entity shall be entitled to receive an amount in cash equal to the value of any such securities such Management Stockholder Entity would otherwise be entitled to receive.

4.   Upon delivering a Request, the Management Stockholder Entities will, if requested by Investor Holdings, execute and deliver a custody agreement and power of attorney in form and substance reasonably satisfactory to Investor Holdings with respect to the shares of Common Stock which are to be sold by the Management Stockholder Entities pursuant hereto (a “Custody Agreement and Power of Attorney”). The Custody Agreement and Power of Attorney will contain customary provisions and will provide, among other things, that the Management Stockholder Entities will deliver to and deposit in custody with the custodian and attorney-in-fact named therein a certificate or certificates (if such shares are certificated) representing such shares of Common Stock (duly endorsed in blank by the registered owner or owners thereof) and irrevocably appoint said custodian and attorney-in-fact as the Management Stockholder Entities’ agent and attorney-in-fact with full power and authority to act under the Custody Agreement and Power of Attorney on such Persons’ behalf with respect to the matters specified therein (including without any limitation to make any entry in any books of the Company if such shares of Common Stock are in registered form).

5.   The Management Stockholder Entities’ right pursuant hereto to participate in a Proposed Sale shall be contingent on such Persons’ material compliance with each of the provisions hereof and such Persons’ respective willingness to execute such documents in connection therewith as may be reasonably requested by Investor Holdings.

6.   Notwithstanding any terms to the contrary in this Agreement, only full shares of Common Stock are transferable under this Agreement. In case a number of shares of Common Stock as determined pursuant to the terms of this Agreement contains a fraction of a share of Common Stock, such number shall be reduced to the nearest number of full shares of Common Stock.

7.   If the consideration to be paid in exchange for shares of Common Stock in a Proposed Sale pursuant to Section 1 includes any securities, and the receipt thereof by a Management Stockholder Entity would require under applicable law (a) the registration or qualification of such securities or of any Person as a broker or dealer or agent with respect to such securities or (b) the provision to any selling Management Stockholder Entity of any information regarding the Company, its Subsidiaries, such securities, or the issuer thereof that would not be required to be delivered in an offering solely to a limited number of “accredited investors” under Regulation D promulgated under the Securities Act of 1933, as amended, and the rules and regulations in effect thereunder, such Management Shareholder Entity shall not, subject to the following sentence, have the right to sell shares of Common Stock in such proposed sale. In such event, Investor Holdings shall have the right to cause to be paid to such selling Management Shareholder Entity in lieu thereof, against surrender of the shares of Common Stock which would have otherwise been sold by such selling Management Shareholder Entity to the prospective buyer in the Proposed Sale, an amount in cash equal to the value of any such securities such Management Stockholder Entity would otherwise be entitled to receive.

8.   (a) If Investor Holdings or any of its Affiliates (including Parent) that owns shares of Common Stock proposes to transfer, directly or indirectly, a number of shares of Common Stock the sale of which would result in a Change of Control, taking into account all interests being dragged hereunder and under any other agreement containing similar rights (such Person or Persons to whom such shares would be transferred, the “Drag-Along Purchaser”), then if requested by Investor Holdings, the Management Stockholder Entities shall be required to sell a number of shares of Common Stock equal to the aggregate number of shares of Common Stock held by such Persons (including shares of Common Stock underlying exercisable Options) multiplied by the Tag Along Sale Percentage (such transaction, a “Drag Transaction”).

(b) Shares of Common Stock held by the Management Stockholder Entities included in a Drag Transaction will be included in any agreements with the Drag-Along Purchaser relating thereto on the same terms and subject to the same economic conditions applicable to the shares of Common Stock which Investor Holdings or any of its Affiliates propose to sell in the Drag Transaction. Such terms and conditions shall include: (i) the pro rata reduction of the number of shares of Common Stock to be sold by Investor Holdings and the Management Stockholder Entities to be included in the Drag Transaction if required by the Drag- Along Purchaser, (ii) the sale price, (iii) the payment of fees, commissions, and expenses, (iv) the provision of, and representation and warranty as to, information reasonably requested by Investor Holdings covering matters regarding the Management Stockholder Entities’ ownership of shares, and (v) the provision of requisite indemnification on a several but not joint basis; provided that any indemnification provided by the Management Stockholder Entities shall, with respect to each indemnification claim made against the sellers, be paid by the sellers pro rata in proportion with the total number of shares of Common Stock to be sold by all sellers; provided, further, that no Management Stockholder Entity shall be required to indemnify any Person for an amount, in the aggregate, in excess of the net cash proceeds received by such Management Stockholder Entity  in such Proposed Sale.

(c) Your pro rata share of any indemnity amount to be paid by you and the other Company stockholders pursuant to Paragraph 3 or 8(b) shall be based upon the number of shares of Common Stock intended to be transferred by the Management Stockholder Entities plus the number of shares of Common Stock you would have the right to acquire under any unexercised portion of an Option which is then vested or would become vested as a result of the Proposed Sale or Drag Transaction, assuming that you received a payment in respect of such Option.

(d) Notwithstanding anything to the contrary in the foregoing, if the consideration payable for shares of Common Stock is securities and the acquisition of such securities by a Management Stockholder Entity would reasonably be expected to be prohibited under applicable U.S., foreign, or state securities laws, such Person shall be entitled to receive an amount in cash equal to the value of any such securities such Person would otherwise be entitled to receive.

(e) Notwithstanding anything to the contrary herein, in the event the Sponsor and/or the limited partners of Parent propose to sell limited partnership units in Parent that would result in a Change of Control of the Company, you agree that appropriate provisions shall be made (and you shall take any reasonable actions required in connection therewith) in order to permit, if contemplated by the purchaser, the purchase of your shares of Common Stock on a pro rata basis similar to the terms provided herein for a sale by Investor Holdings of Common Stock.

9.   The obligations of Investor Holdings hereunder shall extend only to you and transferees of Permitted Transfers (“Permitted Transferees”), and none of the Management Stockholder Entities’ successors or assigns, with the exception of any Permitted Transferee and only with respect to the Common Stock acquired by such Permitted Transferee pursuant to a Permitted Transfer, shall have any rights pursuant hereto.

10. This Agreement shall terminate and be of no further force or effect on the occurrence of the earlier of (a) the consummation of an Initial Public Offering and (b) a Change of Control, except that any obligations of the Parties that have arisen prior to the expiration of this Agreement or in connection with such Initial Public Offering or Change of Control shall remain in full force and effect until satisfied in accordance with the applicable provisions hereof.

11. All notices and other communications required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by confirmed facsimile if sent during normal business hours of the recipient, if not, then on the next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) business day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to such party’s address as set forth below or at such other address or to such other person as the party shall have furnished to each other party in writing in accordance with this provision:

If to Investor Holdings or the Company, at the following addresses:

c/o Kohlberg Kravis Roberts & Co. L.P.

2800 Sand Hill Road, Suite 200

Menlo Park, California 94025

Attention: Nate Taylor

Facsimile: (650) 233-6553

with a copy to:

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, New York 10017

Attention: Marni J. Lerner

Facsimile: (212) 455-2502

If to you, at the address set forth on the Omnibus Signature Page to this Agreement;

If to your Management Stockholder’s Estate, Management Stockholder’s Trust, Director Stockholder’s Estate or Director Stockholder’s Trust, to the address provided to the Company by such entity.

12. The laws of the State of New York shall govern the interpretation, validity, and performance of the terms of this Agreement. In the event of any controversy among the parties hereto arising out of, or relating to, this Agreement which cannot be settled amicably by the parties, such controversy shall be finally, exclusively, and conclusively settled by mandatory arbitration conducted expeditiously in accordance with the American Arbitration Association rules, by a single independent arbitrator. Such arbitration process shall take place in New York, New York. The decision of the arbitrator shall be final and binding upon all parties hereto and shall be rendered pursuant to a written decision, which contains a detailed recital of the arbitrator’s reasoning. Judgment upon the award rendered may be entered in any court having jurisdiction thereof. Each party shall bear its own legal fees and expenses, unless otherwise determined by the arbitrator. Each party hereto hereby irrevocably waives any right that it may have had to bring an action in any court, domestic or foreign, or before any similar domestic or foreign authority with respect to this Agreement. In the event of any arbitration or other disputes with regard to this Agreement or any other document or agreement referred to herein, each Party shall pay its own legal fees and expenses, unless otherwise determined by the arbitrator.

13. This Agreement may be executed in counterparts, and by different parties on separate counterparts, each of which shall be deemed an original, but all such counterparts shall together constitute one and the same instrument.

14. It is the understanding of the undersigned that you are aware that no Proposed Sale is contemplated and that such a sale may never occur.

15. This Agreement may be amended or modified by Investor Holdings at any time upon written notice to you thereof; provided that any amendment or modification that materially disadvantages you shall not be effective unless and until you have consented thereto in writing and you hereby expressly agree to be bound by any such amendment.

[Signatures on following pages]Exhibit 10.23

CONTRIBUTION AGREEMENT

This Contribution Agreement, dated as of March 13, 2014 (this “Agreement”) is entered into by and among Nautilus Parent, Inc., a Delaware corporation (the “Company”) and the individual named in the signature page hereto (the “Management Stockholder”). Capitalized terms used and not otherwise defined herein shall have the meanings set forth in the Merger Agreement (as defined below).

WHEREAS, pursuant to an Agreement and Plan of Merger, dated as of February 6, 2014 (the “Merger Agreement”), among Vision Holding Corp., a Delaware corporation (“VHC”), Nautilus Acquisition Holdings, Inc., a Delaware corporation and wholly-owned subsidiary of the Company (“Buyer”), and Nautilus Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of Buyer (“Merger Sub”), on the Closing Date, Merger Sub will be merged with and into VHC with VHC as the surviving corporation and a wholly-owned indirect subsidiary of the Company (the “Merger”);

WHEREAS, the Company will, at the consummation of the Merger, own, through a wholly-owned subsidiary, 100% of the equity interest of VHC, and immediately following the Merger, VHC will merge with and into National Vision, Inc., with National Vision, Inc. as the surviving corporation after such merger;

WHEREAS, in connection with the Merger, the Management Stockholder desires to contribute a number of shares of common stock of VHC, par value $0.01 per share (“VHC Stock”), with an Aggregate Closing Share Value (as defined below) equal to $1,000,000 (the “Contributed Shares”) to the Company in exchange for shares of common stock, par value $.01 per share, of the Company ( “Common Stock”) and the Company has agreed thereto;

WHEREAS, immediately following the Contribution, the Company shall contribute the Contributed Shares to Buyer; and

WHEREAS, the Contributed Shares shall be automatically cancelled and extinguished without payment of any consideration therefor in connection with the consummation of the Merger;

NOW, THEREFORE, in consideration of the foregoing and the respective representations, warranties, covenants and agreements set forth in this Agreement, and intending to be legally bound hereby, the parties hereto agree as follows:

ARTICLE I

THE CONTRIBUTION

1.1          The Contribution. Upon the terms and subject to the conditions set forth in this Agreement, at the Contribution Closing (as defined below), the Management Stockholder holding Contributed Shares shall transfer (the “Contribution”) all right, title and interest in and to such Contributed Shares, free and clear of any Liens (as defined below), to the Company in exchange for a number of shares of Common Stock having a value equal to the Aggregate Closing Share Value. For purposes of this agreement, “Aggregate Closing Share Value’’ means the aggregate pre-tax dollar amount of the cash Closing Per Share Price for all of such Management Stockholder’s Contributed Shares less such Management Stockholder’s Pro Rata Share of the Holdback Amount (as defined in the Letter of Transmittal) with respect to the Contributed Shares, determined as of the date of the closing of the Merger, that would be expected to be paid to the Management Stockholder in respect of the Management Stockholder’s shares of VHC Stock in connection with the Merger if the Contribution were not to occur. Each of the parties hereto agrees that  the contribution by the Management Stockholder of Contributed Shares to the Company in exchange for shares of Common Stock is intended to qualify as an exchange described in Section 351 of the Internal Revenue Code of 1986, as amended.

1.2          Contribution Closing. The closing (the “Contribution Closing”) of the Contribution shall take place at the offices of Weil, Gotshal & Manages LLP, 100 Federal Street, 34th Floor, Boston Massachusetts, 02110, on the Closing Date but immediately prior to the consummation of the Merger, provided that the conditions set forth in Section 5.1 hereof shall have been satisfied or waived on or prior thereto. At the Contribution Closing, the Management Stockholder will deliver and surrender or will cause to be delivered and surrendered to the Company the certificate or certificates representing the Contributed Shares, in each case duly endorsed for transfer to the Company and/or accompanied by stock or other appropriate powers duly endorsed in blank or such other instruments of transfer as the Company may reasonably request, including if applicable a Spousal Consent in the form attached as Exhibit A hereto, and a properly completed Internal Revenue Service Form W-9 or an applicable Internal Revenue Service Form W-8. Immediately after the Closing, the Company will deliver or cause to be delivered to the Management Stockholder that number of shares of Common Stock to be received by such Management Stockholder pursuant to this Agreement.

1.3          Closing under the Merger Agreement. In the event that the Contribution Closing has occurred but the Closing does not occur for any reason whatsoever, the Company shall return, as promptly as practicable, to the Management Stockholder such Management Stockholder’s Contributed Shares transferred to the Company at the Contribution Closing. Upon compliance with the foregoing, no party shall have any further rights or obligations under this Agreement.

1.4          Transfer. Except as otherwise permitted by that certain Management Stockholders Agreement (the “Management Stockholders Agreement’’) and by that certain Sale Participation Agreement (the “Sale Participation Agreement”), each to be entered into at the Contribution Closing, the shares of Common Stock issued to the Management Stockholder pursuant to this Agreement may not be directly or indirectly offered, transferred, sold, assigned, pledged, hypothecated or otherwise disposed of by the Management Stockholder.

ARTICLE II

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

The Company hereby represents and warrants to the Management Stockholder as of the date hereof and the date of the Contribution Closing that:

2.1          Corporate Existence and Power; Authorization. The Company is a corporation duly formed, validly existing and in good standing under the laws of the State of Delaware. The execution, delivery and performance by the Company of this Agreement and the consummation of the transactions contemplated hereby are within the Company’s corporate powers and have been duly authorized by all necessary action on the part of the Company. This Agreement has been duly and validly authorized, executed and delivered by the Company. Assuming this Agreement is the valid and binding agreement of the Management Stockholder, this Agreement constitutes the legal, valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors’ rights generally and general equitable principles.

2.2          Noncontravention. The execution, delivery and performance by the Company of this Agreement does not and will not (a) violate the organizational documents of the Company, (b) violate any law, rule, regulation, judgment, injunction, order or decree applicable to or binding upon the Company, (c) require any consent or other action by any person under, constitute a default under (with due notice or lapse of time or both), or give rise to any right of termination, cancellation or acceleration of any right or obligation of the Company or to a loss of any benefit to which the Company is entitled under any provisions of any material agreement or other instrument binding upon the Company or any of its assets or properties or (d) result in the creation or imposition of any material mortgage, lien, pledge, charge, security interest or encumbrance (each, a “Lien”) on any property or asset of the Company.

2.3          Valid Issuance of Securities. The Common Stock which is being issued to the Management Stockholder hereunder will, when issued, sold and delivered in accordance with the terms hereof for the consideration expressed herein, have been duly and validly authorized and issued.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE MANAGEMENT STOCKHOLDER

The Management Stockholder hereby represents and warrants to the Company as of the date hereof and the date of the Contribution Closing that:

3.1          Authorization. This Agreement has been duly and validly executed and delivered by the Management Stockholder. Assuming this Agreement is the valid and binding agreement of the Company, this Agreement constitutes the legal, valid and binding agreement of the Management Stockholder, enforceable against the Management Stockholder in accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors’ rights generally and general equitable principles. The Management Stockholder has due power to execute and perform his or her obligations under this Agreement.

3.2          Noncontravention. The execution, delivery and performance by the Management Stockholder of this Agreement does not and will not (a) violate any law, rule, regulation, judgment, injunction, order or decree applicable to or binding upon the Management Stockholder, (b) require any consent or other action by any person under, constitute a default under (with due notice or lapse of time or both), or give rise to any right of termination, cancellation or acceleration of any right or obligation of the Management Stockholder or to a loss of any benefit to which the Management Stockholder is entitled under any provisions of any material agreement or other instrument binding upon the Management Stockholder or any of his or her assets or properties or (c) result in the creation or imposition of any material Lien on any property or asset of the Management Stockholder.

3.3          Valid Title. The Management Stockholder is the sole (or joint with his or her spouse) record and beneficial owner of the Contributed Shares which are to be transferred by the Management Stockholder to the Company hereunder and the Management Stockholder has good and valid title to those securities, free and clear of any preemptive rights, Liens, transfer taxes, claims, charges, assessments or encumbrances of any kind or other restrictions on transfer. Upon delivery of the Contributed Shares at the Contribution Closing as contemplated by this Agreement, the Management Stockholder will convey good and valid title to those securities, free and clear of any preemptive rights, Liens, transfer taxes, claims, charges, assessments or encumbrances of any kind or other restrictions on transfer

3.4          Held For Own Account; Investment Experience. The shares of Common Stock being acquired by the Management Stockholder hereunder are being acquired by the Management Stockholder for his or her own account for investment purposes only and not with a view to resale or distribution. The Management Stockholder has such knowledge and experience in financial and business matters that the Management Stockholder is capable of evaluating the merits and risks of such investment, is able to incur a complete loss of such investment and is able to bear the economic risk of such investment for an indefinite period of time. The Management Stockholder is an “accredited investor” as that term is defined in Regulation D under the Securities Act.

3.5          Restricted Securities. The Management Stockholder has been advised that the shares of Common Stock being acquired by the Management Stockholder hereunder have not been registered under the Securities Act or any state securities laws and, therefore, cannot be resold unless they are registered under the Securities Act and applicable state securities laws or unless an exemption from such registration requirements is available. The Management Stockholder is aware that, except as may be provided in the Management Stockholders Agreement, the Company is under no obligation to effect any such registration with respect to the shares of Common Stock being acquired by the Management Stockholder hereunder or to file for or comply with any exemption from registration.

ARTICLE IV

COVENANTS OF THE COMPANY AND THE MANAGEMENT STOCKHOLDER

4.1          Other Agreements. Concurrently with the Contribution Closing, the Management Stockholder shall enter into the Management Stockholders Agreement and the Sale Participation Agreement. Each Management Stockholder acknowledges and agrees that any shares of Common Stock received at the Contribution Closing or thereafter and such Management Stockholder’s rights in respect thereof shall be subject to the terms and conditions set forth in the Management Stockholders Agreement and the Sale Participation Agreement, including without limitation the restrictions on transfer set forth therein.

4.2          Further Assurances. The Company and each Management Stockholder agree that, from time to time, whether on or after the date of the Contribution Closing, each of them will execute and deliver such further instruments of conveyance and transfer and take such other actions as may be necessary to carry out the purposes and intents of this Agreement.

ARTICLE V

CONDITIONS TO CONTRIBUTION CLOSING; TERMINATION

5.1          Conditions to the Contribution Closing.

(a)          Each party’s respective obligation to consummate the transactions contemplated by Article I is subject to each party to the Merger Agreement being ready, willing and able to consummate the Merger following completion of the transactions contemplated by this Agreement.

(b)          The Company’s obligation to consummate the transactions contemplated by Article I with respect to the Management Stockholder is further subject to (i) the representations and warranties of the Management Stockholder contained in this Agreement being true in all material respects when made and at and as of the Closing Date, as if made at and as of such date, (ii) the Management Stockholder having performed in all material respects all of its respective obligations hereunder required to be performed by it on or prior to the Closing Date, (iii) the Management Stockholder having executed and delivered the Management Stockholder’s Agreement and the Sale Participation Agreement, (iv) the Management Stockholder having delivered to the Company a properly completed Internal Revenue Service Form W-9 or an applicable Internal Revenue Service Form W-8,(v) if applicable, the Management Stockholder having delivered to the Company an executed Spousal Consent in the form attached hereto as Exhibit A and (vi) the Management Stockholder having delivered the stock certificate representing the Contributed Shares and an executed blank stock power with respect to such Contributed Shares.

(c)          The Management Stockholder’s obligation to consummate the transactions contemplated by Article I is further subject to (i) the representations and warranties of the Company contained in this Agreement being true in all material respects when made and at and as of the Closing Date, as if made at and as of such date, (ii) the Company having performed in all material respects all of its respective obligations hereunder required to be performed by it on or prior to the Closing Date, and (iii) the Company and the Management Stockholder having duly executed and delivered the Management Stockholders Agreement.

5.2          Termination. This Agreement shall terminate automatically without any action on the part of the parties hereto on the termination of the Merger Agreement in accordance with the terms thereof.

5.3          Effect of Termination. If this Agreement is terminated pursuant to Section 5.2, this Agreement shall forthwith become null and void and there shall be no liability or obligation on the part of the Company or the Management Stockholder or their respective Affiliates. Notwithstanding the foregoing, (i) nothing in this Section 5.3 shall relieve any party to this Agreement of liability for its willful and material breach of this Agreement and (ii) the provisions in Sections 1.3, 6.4, 6.5 and 6.6 will survive the termination hereof. For purposes of this Agreement, “willful and material breach” means a breach that is a consequence of an act undertaken by the breaching party with knowledge (actual or constructive) that the taking of such act would, or would reasonably be expected to, cause a breach of this Agreement.

ARTICLE VI

MISCELLANEOUS

6.1          Notices. Unless otherwise provided herein, all notices and other communications hereunder shall be in writing and shall be deemed given and received (a) if delivered in person, on the date delivered, (b) if transmitted by facsimile (provided receipt is confirmed by telephone), on the date sent or (c) if delivered by an express courier, on the second Business Day after mailing, to the parties at the following addresses (or at such other address for a party as shall be specified by like notice):

if to the Company, to:

c/o Kohlberg Kravis Roberts & Co. L.P.

2800 Sand Hill Road, Suite 200

Menlo Park, California 94025

Attention: Nate Taylor

Facsimile: (650) 233-6553

with copies to:

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, New York 10017

Attention: Marni J. Lerner

Facsimile: (212) 455-2502

if to the Management Stockholder, at the Management Stockholder’s address as set forth on his signature page hereto,

6.2          Amendments and Waivers. (a) Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by each party to this Agreement, or in the case of a waiver, by the party against whom the waiver is to be effective.

(b)          No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.

6.3          Successors and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns, provided that no party may assign, delegate or otherwise transfer any of its rights or obligations under this Agreement without the consent of the other party.

6.4          Governing Law. This Agreement, the legal relations between the parties and the adjudication and the enforcement thereof, shall be governed by and interpreted and construed in accordance with the laws of the State of New York applicable to agreements made and to be performed entirely within the State of New York, without regard to the conflict of law provisions thereof that could result in the application of the laws of any other jurisdiction.

6.5          Jurisdiction. Each party irrevocably submits to the jurisdiction of the Supreme Court of the State of New York, County of New York, and the United States District Court for the Southern District of New York (and appellate courts thereof), for the purposes of any suit, action or other proceeding arising out of this Agreement or the transactions contemplated hereby. Each party further agrees that service of any process, summons, notice or document by U.S. registered mail to such party’s respective address set forth above shall be effective service of process for any action, suit or proceeding in New York with respect to any matters to which it has submitted to jurisdiction in this Section 6.5. Each party 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 Supreme Court of the State of New York, County of New York, or the United States District Court for the Southern District of New York (and appellate courts thereof), and hereby and thereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum.

6.6          Waiver Of Jury Trial. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION, SUIT OR PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (i) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF SUCH ACTION, SUIT OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER, (ii) SUCH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (iii) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (iv) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 6.6.

6.7          Counterparts; Third Party Beneficiaries. This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures hereto were upon the same instrument. No provision of this Agreement shall confer upon any person other than the parties hereto any rights or remedies hereunder.

6.8          Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter of this Agreement and supersedes all prior agreements and understandings, both oral and written, between the parties with respect to the subject matter of this Agreement.

6.9          Captions. The captions herein are included for convenience of reference only and shall be ignored in the construction or interpretation hereof.

6.10          Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be deemed to be excluded from this Agreement and the balance of this Agreement shall be interpreted as if such provision were so excluded and shall be enforced in accordance with its terms to the maximum extent permitted by law.

6.11          Interpretation. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

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