Document:

Exhibit 10.1

 

INDEMNIFICATION AGREEMENT

 

This Indemnification
Agreement (“Agreement”) is made as of this ____ day of ____________________ 2016, by and between Simulations Plus,
Inc., a California corporation (the “Company”), and ___________________________ (“Indemnitee”).

 

WHEREAS, the Company
and Indemnitee recognize the difficulty in obtaining directors and officers liability insurance that fully and adequately covers
directors and officers for their acts and omissions on behalf of the Company and its subsidiaries;

 

WHEREAS, the Company
and Indemnitee further recognize the substantial increase in corporate litigation in general, subjecting officers and directors
to expensive litigation risks that may not be fully covered by liability insurance;

 

WHEREAS, Indemnitee
does not regard the current protection available as adequate under the present circumstances, and Indemnitee and other officers
and directors of the Company may not be willing to continue to serve as officers and directors without additional protection; and

 

WHEREAS, the Company
desires to attract and retain the services of highly qualified individuals, such as Indemnitee, to serve as officers and directors
of the Company and to indemnify its officers and directors so as to provide them with the maximum protection permitted by law.

 

NOW, THEREFORE, the
Company and Indemnitee hereby agree as follows:

 

Section
1.             
Services By Indemnitee. Indemnitee hereby agrees to serve or continue to serve,
at the will of the Company, as a director, officer or key employee of the Company, for as long as Indemnitee is duly elected or
appointed, as the case may be, or until Indemnitee tenders his or her resignation or is removed. For avoidance of doubt, the Company’s
obligations under this Agreement shall continue to the extent provided for in this Agreement, notwithstanding that Indemnitee may
have ceased to be a director, officer or key employee of the Company.

 

Section
2.             
Indemnification.

 

(a)            
Third Party Proceedings. In connection with any Proceeding other than those instituted
by or in the right of the Company, the Company shall indemnify Indemnitee against any and all Expenses and Liabilities, in either
case, actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf by reason of Indemnitee’s Corporate
Status unless the Company shall establish, in accordance with the procedures described in Section 3 of this Agreement, that Indemnitee
did not act in good faith and in a manner Indemnitee reasonably believed to be in the best interests of the Company, and, with
respect to any criminal Proceeding, had no reasonable cause to believe Indemnitee’s conduct was unlawful.

 

(b)            
Proceedings by or in the Right of the Company. In connection with any Proceeding instituted by or in the right
of the Company, the Company shall indemnify Indemnitee against any and all Expenses and, to the fullest extent permitted by law,
amounts paid in settlement, in each case to the extent actually and reasonably incurred by Indemnitee or on Indemnitee’s
behalf by reason of Indemnitee’s Corporate Status unless the Company shall establish, in accordance with the procedures
described in Section 3 of this Agreement, that Indemnitee did not act in good faith and in a manner Indemnitee reasonably believed
to be in the best interests of the Company and its shareholders, except that no indemnification shall be made in respect of any
claim, issue or matter as to which Indemnitee shall have been adjudged to be liable to the Company in the performance of Indemnitee’s
duty to the Company or any Subsidiary of the Company unless and only to the extent that the court in which such Proceeding is
or was pending shall determine upon application that, in view of all the circumstances of the case, Indemnitee is fairly and reasonably
entitled to indemnity for Expenses or amounts paid in settlement and then only to the extent that the court shall determine.

 

 

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(c)            
Witness Expenses. Notwithstanding any other provision of this Agreement, to the
extent that Indemnitee is, by reason of his or her Corporate Status, a witness in any Proceeding to which Indemnitee is not a party,
he or she shall be indemnified against all Expenses incurred by Indemnitee or on his or her behalf in connection therewith.

 

Section
3.             
Advancement of Expenses; Indemnification Procedure.

 

(a)            
Advancement of Expenses. The Company shall advance all Expenses incurred by Indemnitee
in connection with any Proceeding referenced in Section 2(a) or Section 2(b) of this Agreement (but not amounts actually paid in
settlement of any such Proceeding). Indemnitee hereby undertakes to repay such amounts advanced only if, and to the extent that,
it shall ultimately be determined that Indemnitee is not entitled to be indemnified by the Company as authorized hereby. The advances
to be made hereunder shall be paid by the Company to Indemnitee within 20 days following delivery of a written request therefor
by Indemnitee to the Company. Advances shall be unsecured and interest free. Advances shall be made without regard to Indemnitee’s
ability to repay such amounts and without regard to Indemnitee’s ultimate entitlement to indemnification under the other
provisions of this Agreement. Advances shall include any and all Expenses incurred pursuing an action to enforce this right of
advancement, including Expenses incurred preparing and forwarding statements to the Company to support the advances claimed.

 

(b)            
Notice by Indemnitee. Indemnitee shall give the Company notice in writing as soon
as practicable of any Proceeding in respect of which Indemnitee intends to seek indemnification or advancement of Expenses hereunder.
Notice to the Company shall be directed to the General Counsel of the Company at the address shown in Section 16(a) of this Agreement
(or such other address as the Company shall designate in writing to Indemnitee). The omission by Indemnitee to so notify the Company
will not relieve the Company from any liability that it may have to Indemnitee hereunder or otherwise.

 

(c)            
Determination of Entitlement.

 

(i)             
Where there has been a written notice by Indemnitee for indemnification pursuant to Section 3(b), then as soon as
is reasonably practicable (but in any event not later than 60 days) after final disposition of the relevant Proceeding, the Company
shall make a determination, if and in the manner required by applicable law, with respect to Indemnitee’s entitlement thereto;
provided, however, that, if a Change in Control shall have occurred, the determination shall be made by an Independent Counsel
(selected pursuant to Section 3(c)(ii)) in a written opinion to the Company’s Board of Directors, a copy of which shall be
delivered to Indemnitee. If it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be
made within ten (10) days after such determination. Indemnitee shall reasonably cooperate with the person, persons or entity making
such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons
or entity upon reasonable advance request any documentation or information that is not privileged or otherwise protected from disclosure
and that is reasonably available to Indemnitee and reasonably necessary to such determination. Any costs or expenses (including
attorneys’ fees and disbursements) actually and reasonably incurred by Indemnitee in so cooperating with the person, persons
or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement
to indemnification).

 

(ii)           
If entitlement to indemnification is to be determined by an Independent Counsel after a Change in Control pursuant
to Section 3(c)(i), such Independent Counsel shall be selected by Indemnitee, and Indemnitee shall give written notice to the Company
advising it of the identity of the Independent Counsel so selected. Within 10 days after such written notice of selection shall
have been received, the Company may deliver to Indemnitee a written objection to such selection; provided, however, that such objection
may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent
Counsel” as defined in Section 13(a) of this Agreement, and the objection shall set forth with particularity the factual
basis of such assertion. Absent a proper and timely objection, the person so selected shall act as the Independent Counsel. If
such written objection is so made and substantiated, the Independent Counsel so selected may not serve as the Independent Counsel
unless and until such objection is withdrawn or a court of competent jurisdiction has determined that such objection is without
merit. If, within 20 days after the final disposition of the Proceeding, no Independent Counsel shall have been selected and not
objected to, either the Company or Indemnitee may petition a court of competent jurisdiction for resolution of any objection which
shall have been made by the Company to Indemnitee’s selection of the Independent Counsel and/or for the appointment as the
Independent Counsel of a person selected by the court or by such other person as the court shall designate, and the person with
respect to whom all objections are so resolved or the person so appointed shall act as the Independent Counsel under Section 3(c)(i)
hereof. Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 4(a) of this Agreement, the Independent
Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of
professional conduct then prevailing).

 

 

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(iii)         
The Company agrees to pay the reasonable fees and expenses of any Independent Counsel serving under this Agreement.

 

(d)            
Presumptions and Burdens of Proof.

 

(i)             
In making any determination with respect to entitlement to indemnification hereunder, the person, persons or entity
making such determination shall, to the fullest extent not prohibited by law, presume that Indemnitee is entitled to indemnification
under this Agreement, and the Company shall have, to the fullest extent not prohibited by law, the burden of proof to overcome
that presumption in connection with the making of any determination contrary to that presumption. Neither the failure of the person,
persons or entity to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification
is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the
person, persons or entity that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or
create a presumption that Indemnitee has not met the applicable standard of conduct.

 

(ii)           
The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction,
or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself
adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and
in a manner that he or she reasonably believed to be in or not opposed to the best interests of the Company or, with respect to
any criminal Proceeding, that Indemnitee had reasonable cause to believe that Indemnitee’s conduct was unlawful.

 

(iii)         
For purposes of any determination of good faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee’s
action is in good faith reliance on the records or books of account of any Enterprise, including financial statements, or on information
supplied to Indemnitee by the officers of such Enterprise in the course of their duties, or on the advice of legal counsel for
such Enterprise or on information or records given or reports made to such Enterprise by an independent certified public accountant
or by an appraiser or other expert selected by such Enterprise. The provisions of this Section 3(d)(iii) shall not be deemed to
be exclusive or to limit in any way the other circumstances in which Indemnitee may be deemed or found to have met the applicable
standard of conduct set forth in this Agreement.

 

(e)            
Notice to Insurers. If, at the time of the receipt of a notice of a Proceeding pursuant
to Section 3(b) of this Agreement, the Company has director and officer liability insurance in effect, the Company shall give prompt
notice of the commencement of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies.
Thereafter, the Company shall take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee,
all amounts payable as a result of such Proceeding in accordance with the terms of such policies.

 

 

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(f)             
Relationship to Other Sources. Indemnitee shall not be required to exercise any
rights against any other parties (for example, under any insurance policy purchased by the Company, Indemnitee or any other person
or entity) before Indemnitee enforces this Agreement. However, to the extent the Company actually indemnifies Indemnitee or advances
Expenses, the Company shall be entitled to enforce any such rights that Indemnitee may have against third parties. Indemnitee shall
assist the Company in enforcing those rights if the Company pays Indemnitee’s reasonable costs and expenses of doing so.

 

(g)            
Defense of Claims; Selection of Counsel.

 

(i)             
The Company shall not settle any action, claim, or Proceeding (in whole or in part) that would impose any Expense,
judgment, fine, penalty or limitation on Indemnitee, without Indemnitee’s prior written consent; provided, however, that,
with respect to settlements requiring solely the payment of money either by the Company or by Indemnitee for which the Company
is obligated to reimburse Indemnitee promptly and completely, in either case without recourse to Indemnitee, no such consent of
Indemnitee shall be required. Indemnitee shall not settle any action, claim or Proceeding (in whole or in part) that would impose
any Expense, judgment, fine, penalty or limitation on the Company without the Company’s prior written consent, such consent
not to be unreasonably withheld.

 

(ii)           
In the event the Company shall be obligated under Section 3(a) of this Agreement to pay the Expenses of any Proceeding
against Indemnitee, the Company, if appropriate, shall be entitled to assume the defense of such proceeding, with counsel approved
by Indemnitee, which approval shall not be unreasonably withheld, upon the delivery to Indemnitee of written notice of its election
so to do. After delivery of such notice, approval of such counsel by Indemnitee and the retention of such counsel by the Company,
the Company will not be liable to Indemnitee under this Agreement for any fees of counsel subsequently incurred by Indemnitee with
respect to the same Proceeding, provided that (i) Indemnitee shall have the right to employ Indemnitee’s own counsel in any
such Proceeding at Indemnitee’s expense; and (ii) if (A) the employment of counsel by Indemnitee has been previously authorized
by the Company, (B) Indemnitee shall have concluded in good faith that there may be a conflict of interest between the Company
and Indemnitee or between Indemnitee and any other persons represented by the same counsel, in the conduct of any such defense,
or (C) the Company, in fact, shall not have employed counsel to assume the defense of such Proceeding, then the reasonable fees
and expenses of Indemnitee’s counsel shall be at the expense of the Company.

 

Section
4.             
Remedies of Indemnitee.

 

(a)            
In the event of any dispute between Indemnitee and the Company hereunder as to entitlement to indemnification, contribution
or advancement of Expenses (including where (i) a determination is made pursuant to Section 3(c) of this Agreement that Indemnitee
is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 3(a)
of this Agreement, (iii) payment of indemnification pursuant to Section 3(c) of this Agreement is not made within 10 days after
a determination has been made that Indemnitee is entitled to indemnification, (iv) no determination as to entitlement to indemnification
is timely made pursuant to Section 3(c) of this Agreement, or (v) a contribution payment is not made in a timely manner pursuant
to Section 9 of this Agreement), then Indemnitee shall be entitled to an adjudication by a court of Indemnitee’s entitlement
to such indemnification, contribution or advancement. Alternatively, in such case, Indemnitee, at Indemnitee’s option, may
seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American
Arbitration Association. The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration.

 

 

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(b)            
In the event that a determination shall have been made pursuant to Section 3(c) of this Agreement that Indemnitee
is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 4 shall be conducted
in all respects as a de novo trial, or arbitration, on the merits, and Indemnitee shall not be prejudiced by reason of that adverse
determination. In any judicial proceeding or arbitration commenced pursuant to this Section 4, the Company shall have the burden
of proving Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be, and the Company may not
refer to or introduce into evidence any determination pursuant to Section 3(c) of this Agreement adverse to Indemnitee for any
purpose. If Indemnitee commences a judicial proceeding or arbitration pursuant to this Section 4, Indemnitee shall not be required
to reimburse the Company for any advances pursuant to Section 3(a) until a final determination is made with respect to Indemnitee’s
entitlement to indemnification (as to which all rights of appeal have been exhausted or lapsed).

 

(c)            
If a determination shall have been made pursuant to Section 3(c) of this Agreement that Indemnitee is entitled to
indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant
to this Section 4, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make
Indemnitee’s statement not materially misleading, in connection with such determination of Indemnitee’s entitlement
to indemnification, or (ii) a prohibition of such indemnification under applicable law.

 

(d)            
The Company shall be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this
Section 4 that the procedures and presumptions of this Agreement are not valid, binding or enforceable and shall stipulate in any
such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement.

 

(e)            
The Company shall indemnify Indemnitee to the fullest extent permitted by law against all Expenses incurred by Indemnitee
in connection with any judicial proceeding or arbitration brought by Indemnitee for (i) indemnification or advances of Expenses
by the Company (or otherwise for the enforcement, interpretation or defense of his or her rights) under this Agreement or any other
agreement, including any other indemnification, contribution or advancement agreement, or any provision of the Company’s
Articles of Incorporation or By-laws now or hereafter in effect or (ii) recovery or advances under any directors and officers liability
insurance policy maintained by the Company, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification,
contribution, advancement or insurance recovery, as the case may be; provided, however, that this Section 4(e) shall not apply
if, as part of such judicial proceeding or arbitration, the court of competent jurisdiction or the arbitrator, as the case may
be, determines that the material assertions made by Indemnitee as a basis for such judicial proceeding or arbitration were not
made in good faith or were frivolous.

 

Section
5.             
Additional Indemnification Rights; Nonexclusivity.

 

(a)            
Scope. Notwithstanding any other provision of this Agreement, the Company hereby
agrees to indemnify the Indemnitee to the fullest extent permitted by law, notwithstanding that such indemnification is not specifically
authorized by the other provisions of this Agreement, the Company’s Articles of Incorporation, the Company’s By-Laws
or by statute. In the event of any change, after the date of this Agreement, in any applicable law, statute or rule that expands
the right of a California corporation to indemnify a member of its or a Subsidiary’s Board of Directors or an officer, such
changes shall be, ipso facto, within the purview of Indemnitee’s rights and the Company’s obligations, under this Agreement.
In the event of any change in any applicable law, statute or rule that narrows the right of a California corporation to indemnify
a member of the Board of Directors or an officer of the Company or a Subsidiary, such changes, to the extent not otherwise required
by such law, statute or rule to be applied to this Agreement, shall have no effect on this Agreement or the parties’ rights
and obligations hereunder.

 

 

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(b)            
Nonexclusivity. The rights of indemnification, contribution and advancement of Expenses
as provided by this Agreement shall not be deemed exclusive of any rights to which Indemnitee may be entitled under the Company’s
Articles of Incorporation, its By-Laws, any agreement, any vote of shareholders or disinterested directors, the General Corporation
Law of the State of California, or otherwise, both as to action in Indemnitee’s official capacity and as to action or inaction
in another capacity while holding such office. The indemnification provided under this Agreement shall continue as to Indemnitee
for any action taken or not taken while serving in an indemnified capacity even though Indemnitee may have ceased to serve in such
capacity at the time of any covered Proceeding is commenced.Section 6.Partial Indemnification.
If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of the
Expenses and Liabilities actually or reasonably incurred by Indemnitee in any Proceeding, but not, however, for the total amount
thereof, the Company shall nevertheless indemnify Indemnitee for the portion of such Expenses and Liabilities to which Indemnitee
is entitled.

 

Section
7.             
Mutual Acknowledgment. Both the Company and Indemnitee acknowledge that, in certain
instances, Federal law or applicable public policy may prohibit the Company from indemnifying its directors and officers under
this Agreement or otherwise. Indemnitee understands and acknowledges that the Company has undertaken or may be required in the
future in certain circumstances to undertake with the Securities and Exchange Commission to submit the question of indemnification
to a court for a determination of the Company’s right under public policy to indemnify Indemnitee.Section
8.Directors and Officers Liability Insurance. The Company, from time to time, shall
make the good faith determination whether or not it is practicable for the Company to obtain and maintain a policy or policies
of insurance with reputable insurance companies providing the officers and directors of the Company with coverage for losses from
wrongful acts or to ensure the Company’s performance of its indemnification obligations under this Agreement. Among other
considerations, the Company will weigh the costs of obtaining such insurance coverage against the protection afforded by such coverage.
In all policies of directors and officers liability insurance, Indemnitee shall be named as an insured in such a manner as to provide
Indemnitee the same rights and benefits as are accorded to the most favorably insured of the Company’s directors, if Indemnitee
is a director; or of the Company’s officers, if Indemnitee is not a director of the Company but is an officer. Notwithstanding
the foregoing, the Company shall have no obligation to obtain or maintain such insurance if the Company determines in good faith
that such insurance is not reasonably available, if the premium costs for such insurance are disproportionate to the amount of
coverage provided, if the coverage provided by such insurance is limited by exclusions so as to provide an insufficient benefit,
or if Indemnitee is covered by similar insurance maintained by a Subsidiary or parent of the Company.

 

Section
9.             
Contribution. To the fullest extent permissible under applicable law, if the indemnification
provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee,
shall contribute to the amount incurred by Indemnitee, whether for Liabilities and/or for Expenses, in connection with any Proceeding
relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of
the circumstances of such Proceeding in order to reflect (1) the relative benefits received by the Company and Indemnitee as a
result of the event(s) and/or transaction(s) giving rise to such Proceeding; and (2) the relative fault of the Company (and its
directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s).

 

 

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Section
10.         
Severability. Nothing in this Agreement is intended to require or shall be construed
as requiring the Company to do or fail to do any act in violation of applicable law. The Company’s inability, pursuant to
court order, to perform its obligations under this Agreement shall not constitute a breach of this Agreement. The provisions of
this Agreement shall be severable as provided in this Section 10. If this Agreement or any portion hereof shall be invalidated
on any ground by any court of competent jurisdiction, then the Company shall nevertheless indemnify Indemnitee to the full extent
permitted by any applicable portion of this Agreement that shall not have been invalidated, and the balance of this Agreement not
so invalidated shall be enforceable in accordance with its terms.

 

Section
11.         
Exceptions. Any other provision herein to the contrary notwithstanding, the Company
shall not be obligated pursuant to the terms of this Agreement:

 

(a)            
Excluded Acts. To indemnify Indemnitee for any acts or omissions or transactions
from which a director, officer, employee or agent may not be relieved of liability under applicable law; or

 

(b)            
Claims Initiated by Indemnitee. To indemnify or advance Expenses to Indemnitee with
respect to any Proceeding initiated or brought voluntarily by Indemnitee and not by way of defense, except with respect to Proceedings
brought to establish or enforce a right to indemnification under this Agreement or any other statute or law or otherwise as required
under Section 317 of the California General Corporation Law, but such indemnification or advancement of Expenses may be provided
by the Company in specific cases if the Company’s Board of Directors has approved the initiation or bringing of such Proceeding;
or

 

(c)                                                    
Lack of Good Faith. To indemnify Indemnitee for any Expenses incurred by the Indemnitee
with respect to any Proceeding instituted by Indemnitee to enforce or interpret this Agreement, if a court of competent jurisdiction
determines that the material assertions made by the Indemnitee in such Proceeding were not made in good faith or were frivolous;
or

 

(d)                                                    
Insured Claims. To indemnify Indemnitee for Expenses or Liabilities that have been
paid directly to Indemnitee by an insurance carrier under a policy of directors and officers liability insurance maintained by
the Company; or

 

(e)            
Claims under Section 16(b). To indemnify Indemnitee for Expenses and the payment
of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 16(b) of the Exchange Act or
any similar successor statute; or

 

(f)             
Claims under Sarbanes-Oxley Act of 2002. To indemnify Indemnitee for any reimbursement
of the Company by Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by Indemnitee
from the sale of securities of the Company, as required in each case under the Exchange Act (including any such reimbursements
that arise from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002, or the payment
to the Company of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley
Act of 2002).

 

Section
12.         
Effectiveness of Agreement. This Agreement shall be effective as of the date set
forth on the first page and shall apply to acts or omissions of Indemnitee which occurred prior to such date if Indemnitee was
serving in any Corporate Status at the time such act or omission occurred.

 

 

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Section
13.         
Construction of Certain Phrases.

 

(a)            
As used in this Agreement:

 

“Change of
Control” means any one of the following circumstances occurring after the date hereof: (i) there shall have occurred
an event required to be reported with respect to the Company in response to Item 6(e) of Schedule 14A of Regulation 14A (or in
response to any similar item or any similar schedule or form) under the Exchange Act, regardless of whether the Company is then
subject to such reporting requirement; (ii) any “person” or “group” (as such terms are used in Sections
13(d) and 14(d) of the Exchange Act) shall have become, without prior approval of the Company’s Board of Directors by approval
of at least a majority of the Continuing Directors, the “beneficial owner” (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of securities of the Company representing 40% or more of the combined voting power of the Company’s
then outstanding voting securities (provided that, for purposes of this clause (ii), the term “person” shall exclude
(x) the Company, (y) any trustee or other fiduciary holding securities under an employee benefit plan of the Company, and (z) any
corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership
of stock of the Company); (iii) there occurs a merger or consolidation of the Company with any other entity, other than a merger
or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation
continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity)
more than 51% of the combined voting power of the voting securities of the surviving entity outstanding immediately after such
merger or consolidation and with the power to elect at least a majority of the board of directors or other governing body of such
surviving entity; (iv) all or substantially all the assets of the Company are sold or disposed of in a transaction or series of
related transactions; (v) the approval by the stockholders of the Company of a complete liquidation of the Company; or (vi) the
Continuing Directors cease for any reason to constitute at least a majority of the members of the Company’s Board of Directors.

 

“Continuing
Director” means (i) each director on the Company’s Board of Directors on the date hereof or (ii) any new director
whose election or nomination for election by the Company’s stockholders was approved by a vote of at least a majority of
the directors then still in office who were directors on the date hereof or whose election or nomination was so approved.

 

“Corporate
Status” means the status of a person who is or was a director, officer, trustee, general partner, managing member, fiduciary,
board of directors’ committee member, employee or agent of the Company or of any other Enterprise.

 

“Enterprise”
means the Company, any Subsidiary and any other corporation, limited liability company, partnership, joint venture, trust, employee
benefit plan or other enterprise of which Indemnitee is or was serving at the request of the Company as a director, officer, trustee,
general partner, managing member, fiduciary, board of directors’ committee member, employee or agent.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Expenses”
means all direct and indirect costs (including without limitation attorneys’ fees, retainers, court costs, transcripts, fees
of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery
service fees, and all other disbursements or expenses) reasonably and actually incurred in connection with (i) prosecuting, defending,
preparing to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise participating in, a Proceeding
or (ii) establishing or enforcing a right to indemnification under this Agreement, the Company’s Articles of Incorporation
or By-Laws, applicable law or otherwise. Expenses also shall include Expenses incurred in connection with any appeal resulting
from any Proceeding, including the premium, security for, and other costs relating to any cost bond, supersedeas bond, or other
appeal bond or its equivalent. For the avoidance of doubt, however, Expenses shall not include any Liabilities.

 

 

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“Independent
Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporate law and neither currently
is, nor in the five years prior to its selection or appointment has been, retained to represent (i) the Company or Indemnitee in
any matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement or of other
indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification
hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the
applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company
or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.

 

“Liabilities”
means any losses or liabilities, including without limitation any judgments, fines, ERISA excise taxes and penalties, penalties
and amounts paid in settlement, arising out of or in connection with any Proceeding (including all interest, assessments and other
charges paid or payable in connection with or in respect of any such judgments, fines, ERISA excise taxes and penalties, penalties
or amounts paid in settlement).

 

“Proceeding”
means any threatened, pending or completed action, derivative action, suit, claim, counterclaim, cross claim, arbitration, alternate
dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding,
whether civil (including intentional and unintentional tort claims), criminal, administrative or investigative, including any appeal
therefrom, and whether instituted by or on behalf of the Company or any other party, or any inquiry or investigation that Indemnitee
in good faith believes might lead to the institution of any such action, suit or other proceeding hereinabove listed in which Indemnitee
was, is or will be involved as a party, potential party, non-party witness or otherwise by reason of any Corporate Status of Indemnitee,
or by reason of any action taken (or failure to act) by him or her or of any action (or failure to act) on his or her part while
serving in any Corporate Status.

 

(b)            
For purposes of this Agreement:

 

References to “Company”
shall include, in addition to the resulting corporation, any constituent corporation (including any constituent of a constituent)
absorbed in a consolidation or merger that, if its separate existence had continued, would have had power and authority to indemnify
its directors, officers, employees or agents, so that, if Indemnitee is or was a director, officer, employee or agent of such constituent
corporation, or is or was serving at the request of such constituent corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise, Indemnitee shall stand in the same position under the provisions
of this Agreement with respect to the resulting or surviving corporation as Indemnitee would have with respect to such constituent
corporation if its separate existence had continued.

 

References to “Subsidiary”
shall include a corporation, company or other entity:

 

(ii)           
50% or more of whose outstanding shares or securities (representing the right to vote for the election of directors
or other managing authority) are, or

 

(iii)         
that does not have outstanding shares or securities (as may be the case in a partnership, joint venture or unincorporated
association), but 50% or more of whose ownership interest representing the right to make decisions for such other entity is,

 

now or hereafter, owned or controlled,
directly or indirectly, by the Company, or one or more Subsidiaries.

 

References to “other
enterprises” shall include employee benefit plans; references to “fines” shall include any excise taxes assessed
on Indemnitee with respect to an employee benefit plan; and references to “serving at the request of the Company” shall
include any service as a director, officer, employee or agent of the Company that imposes duties on, or involves services by, such
director, officer, employee or agent with respect to an employee benefit plan, its participants, or beneficiaries.

 

 

    	 	9	 

     

    

 

Section
14.         
Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall constitute an original.

 

Section
15.         
Successors and Assigns. This Agreement shall be binding upon the Company and its
successors and assigns and shall inure to the benefit of Indemnitee and Indemnitee’s estate, heirs, legal representatives
and assigns.

 

Section
16.         
Notice. All notices, requests, demands and other communications under this Agreement
shall be in writing and shall be deemed duly given (i) if delivered by hand or recognized courier and receipted for by the party
addressee, on the date of such receipt, (ii) if mailed by domestic certified or registered mail with postage prepaid, on the fifth
business day after the date postmarked, or (iii) if sent by confirmed facsimile, on the date sent. Notices shall be addressed as
follows:

 

(a)            
if to the Company:

 

Simulations Plus, Inc.

42505 10th Street West

Lancaster, California 93534-7059

Telephone: (661) 723-7723

Facsimile: (661) 723-5524

Attention: Chief Executive Officer

 

(b)            
if to Indemnitee, to the address of Indemnitee set forth under Indemnitee’s signature below;

 

or to such other address or attention of
such other person as any party shall advise the other parties in writing.

 

Section
17.         
Consent to Jurisdiction; Choice of Venue. The Company and Indemnitee each hereby
irrevocably consent to the jurisdiction of the courts of the State of California and the federal courts within the State for all
purposes in connection with any action or proceeding that arises out of or relates to this Agreement and agrees that any action
instituted under this Agreement shall be brought only in the United States District Court for the Southern District of California
and any California State court within that District.

 

Section
18.         
Choice of Law. This Agreement shall be governed by and its provisions construed
in accordance with the laws of the State of California as applied to contracts between California residents entered into and to
be performed entirely within California.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

 

    	 	10	 

     

    

 

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

 

	 	 	SIMULATIONS PLUS, INC.
	 	 	 
	 	 	 	By:	 
	 	 	 	Name:	 
	 	 	 	Title:	 
	 
	AGREED TO AND ACCEPTED:
	 	 	 	 	 
	INDEMNITEE:	 	 
	By:	 	 	 	 
	Name:	 	 	 	 
	Title:	 	 	 	 
	 	 	 	 	 	 	 	 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	11Exhibit 10.1

 

MANAGEMENT SHAREHOLDER AGREEMENT

 

This Management Shareholder Agreement, dated as of June 1,  2016 (this “Agreement”), is entered into by and between Interpool, Inc., d/b/a TRAC Intermodal, a Delaware corporation (the “Company”), SCT Chassis Inc., a Marshall Islands corporation (“SCT Chassis”), and KEVIN SNYDER (the “Management Investor”).

 

WHEREAS, the Company desires to grant to the Management Investor certain restricted shares of the common stock of SCT Chassis (the “Common Stock”) on the date hereof, effective as provided herein;

 

NOW, THEREFORE, in consideration of the foregoing premises and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                                      Grant of Common Stock.

 

(a)                                 On June 1, 2016 (the “Grant Date”), the Company shall grant to the Management Investor, and the Management Investor hereby accepts, effective as of the date of such grant, a number of restricted shares of Common Stock set forth on Appendix A, attached hereto with the Fair Market Value (as defined below) per share of Common Stock set forth on Appendix A (the “Restricted Shares”).

 

(b)                                 For the avoidance of doubt, the Restricted Shares shall be considered to be “Common Stock” hereunder upon grant (including prior to the vesting of any Restricted Shares).

 

(c)                                  Subject to the terms of Section 1(d) below and the other terms and provisions of this Agreement, the Restricted Shares shall vest in one-fourth (1/4) increments beginning on January 1, 2017 and thereafter on January 1st of each of the three years following such date (each such date, a “Vesting Date”), in each case provided that the Management Investor is still employed by the Company on such date;

 

(d)                                 Without limiting any of the other terms and provisions of this Agreement, the Restricted Shares shall be subject to the following terms:

 

(i)                                     Except as provided in Section 1(d)(ii)(A) below, if (A) other than for death or Disability, the Management Investor’s employment is terminated by the Company without Cause and (B) a waiver and release reasonably acceptable to the Company (a “Release”) is executed by the Management Investor within the time period prescribed therein after the date of such termination and becomes effective in accordance with its terms, the Management Investor shall immediately vest (upon the expiration of any revocation period applicable to such Release) as the owner of each tranche of Restricted Shares that would have vested under Section 1(c)) above, as the case may be, on the next succeeding Vesting Date applicable thereto following such termination.

 

(ii)                                  The Management Investor shall immediately vest as the owner of all Restricted Shares that have not theretofore vested upon the occurrence of any of the following:

 

 

A.                                    the termination of the Management Investor’s employment by the Company without Cause within twelve (12) months after a Change of Control (as defined below), subject to the Management Investor’s execution and non-revocation of a Release within the time period prescribed therein after the date of such termination; or

 

B.                                    the termination of the Management Investor’s employment due to the Management Investor’s death or Disability (as defined below), subject to the Management Investor’s (or if applicable, the Management Investor’s representative) execution and non-revocation of a Release within the time period prescribed therein after the date of such termination.

 

(iii)                               Except as provided in Sections 1(d)(i) and 1(d)(ii) above, all of the unvested Restricted Shares shall be automatically forfeited, and be deemed to have been repurchased by the Company at a purchase price of zero dollars, upon the Management Investor ceasing to be an employee of the Company (whether as a result of termination for Cause, termination without Cause, resignation, death, Disability or otherwise).

 

(iv)                              For purposes of clarification, except as otherwise expressly provided in this Agreement, the Management Investor will have all of the rights of a shareholder with respect to all of the Restricted Shares granted hereunder, including, without limitation, the right to vote such shares (subject to Section 1(d)(vi) below) and the right to receive all dividends or other distributions with respect to such shares; provided, however, any dividends or other distributions paid with respect to any Restricted Shares which have not previously vested shall be withheld by the Company and shall be paid to the Management Investor only when, and if, such Restricted Shares shall become fully vested pursuant to Section 1.

 

(v)                                 The Restricted Shares shall be registered in the Management Investor’s name, but any certificates evidencing such Restricted Shares shall be retained by SCT Chassis during the period prior to the vesting of such shares as set forth herein.  The Management Investor shall execute a share transfer substantially in the form of Exhibit A attached hereto, in blank, with respect to such Restricted Shares and deliver the same to SCT Chassis.  Upon vesting in accordance with the terms of this Agreement, the Restricted Shares shall be issued to the Management Investor free and clear of all liens, other than restrictions and legends required pursuant to federal and state securities laws and the terms of this Agreement.

 

(vi)                              To the fullest extent permitted by applicable law, the Management Investor hereby appoints FIG LLC (“FIG LLC”) as its proxy with respect to all vested and unvested Restricted Shares of which the Management Investor may be the record holder from time to time to (A) attend all meetings of the holders of the Common Stock, with full power to vote and act for the Management Investor with respect to such Restricted Shares in the same manner and to the same extent that the Management Investor might were the Management Investor personally present at such meetings, and (B) execute and deliver, on behalf of the Management Investor, any written consent in lieu of a meeting of the holders of the Common Stock in the same manner and to the

 

2

 

same extent that the Management Investor might but for the proxy granted pursuant to this sentence.  The proxy hereby granted by the Management Investor is, and shall be, irrevocable by the Management Investor (until the closing of an IPO (as defined below) upon which such proxy shall automatically terminate with respect to the Restricted Shares).  FIG LLC shall have full power to substitute another person as the Management Investor’s proxy and to revoke the appointment of any such substitute proxy.  Concurrently herewith, the Management Investor is hereby executing and delivering to SCT Chassis an irrevocable proxy in the form of Exhibit B attached hereto, and the Management Investor hereby agrees that it shall execute and deliver any further instrument, and take all other actions, reasonably requested by FIG LLC from time to time to evidence or otherwise give effect to the provisions of this Section 1(d)(vi).

 

(e)                                  Anything herein to the contrary notwithstanding, the Restricted Shares may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of, alienated or encumbered (each such action, a “Transfer”) until the applicable restrictions set forth herein are removed or expire or are expressly waived by SCT Chassis in writing, and any additional requirements or restrictions contained in this Agreement have been satisfied, terminated or expressly waived by SCT Chassis in writing.  Any purported or attempted Transfer that does not comply with the terms of this Agreement shall be null and void and the purported transferee shall not be deemed to be a shareholder of SCT Chassis and shall not be entitled to receive a stock certificate (if any) or any dividends or other distributions on or in respect of the Restricted Shares subject to such purported or attempted Transfer.

 

(f)                                   In connection with the payment of any dividends, distributions or other type of payment to the Management Investor in respect of the Restricted Shares, the Company, as applicable law may provide, shall be entitled to deduct any taxes or other amounts required by any governmental authority to be withheld and paid over to such authority for the Management Investor’s account.

 

(g)                                  For the purposes of this Agreement, the following terms have the respective meanings set forth below:

 

(i)                                     “Act” means the Securities Act of 1933, as amended.

 

(ii)                                  An “affiliate” of, or a person “affiliated” with, a specified person, is a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the person specified.

 

(iii)                               A termination for “Cause” shall mean termination of the Management Investor’s employment with the Company and its subsidiaries as a result of any of the following:

 

(A)                               the Management Investor commits any act of fraud, intentional misrepresentation or serious misconduct in connection with the business of the Company or any of its affiliates, including, but not limited to, falsifying any documents or agreements (regardless of form); or

 

3

 

(B)                               the Management Investor violates any rule or policy of the Company or any of its affiliates (I) for which violation an employee may be terminated pursuant to the written policies of the Company or any of its affiliates reasonably applicable to such an employee or (II) which violation results in material damage to the Company or any of its affiliates or (III) which, after written notice to do so, the Management Investor fails to correct within 30 days; or

 

(C)                               the Management Investor willfully breaches or habitually neglects any aspect of the Management Investor’s duties assigned to the Management Investor by the Company or any of its affiliates, which assignment was reasonable in light of the Management Investor’s position with the Company or its subsidiaries (all of the foregoing duties, “Duties”); or

 

(D)                               the Management Investor fails adequately to perform any Duties (which failure has not been cured within thirty (30) days after a written demand for substantial performance has been delivered to the Management Investor) and such failure is reasonably likely to have a material adverse impact upon the Company or any of its affiliates or the operations of any of them; or

 

(E)                                the Management Investor fails to comply with a specific directive from the board of directors (or similar body) of the Company (the “Board of Directors”) or any of its affiliates with respect to a material matter, which directive is made specifically to the Management Investor and was reasonable in light of the Management Investor’s position with the Company or its subsidiaries; or

 

(F)                                 while employed by the Company or its subsidiaries, and without the written approval of the Board of Directors, the Management Investor performs services for any other corporation or person which competes with the Company or any of its subsidiaries or otherwise violates Section 5 or 6 hereof; or

 

(G)                               the Management Investor is convicted by a court of competent jurisdiction of, or enters a plea of nolo contendere to, a felony (other than a traffic or moving violation) or any crime involving dishonesty; or

 

(H)                              any other action or condition that may result in termination of an employee for cause pursuant to any generally applied standard, of which standard the Management Investor knew or reasonably should have known, adopted in good faith by the Company or any of its subsidiaries from time to time prior to the occurrence of such action or condition.

 

In the event that there is a dispute between the Management Investor and the Company as to whether “Cause” for termination exists:  (x) such termination shall nonetheless be effective, and (y) the payments or deliveries, if any, to be made by the Company or any Fortress Entity in connection with a sale or purchase of the Common Stock held by the

 

4

 

Management Investor pursuant to Section 4 of this Agreement shall be delayed until the final resolution of such dispute.

 

(iv)                              “Change of Control” means an event or series of events by which one or more Fortress Entities collectively directly or indirectly legally or beneficially own less than 50% of the voting stock (or other equity interest) of the Company, in each case adjusted pursuant to any stock (or share) split, stock (or share) dividend, recapitalization or reclassification of the capital of the Company; provided, however, that a “Change of Control” shall not be deemed to occur:

 

(A)                               upon an acquisition, merger, amalgamation, continuation into another jurisdiction or other business combination involving the Company, including the sale of all or substantially all of the assets of the Company (each, a “Business Combination”), if one or more Fortress Entities collectively (I) directly or indirectly legally or beneficially own at least 30% of the voting stock (or other equity interest) of the Company or the surviving/acquiring entity, as the case may be, and (II) continue to be the largest shareholder (or other holder of equity) of the Company or the surviving/acquiring entity, as the case may be, following such Business Combination, and a “Change of Control” will not result after any such Business Combination so long as the conditions set forth in clauses (I) and (II) continue to be satisfied; or

 

(B)                               (I) upon an IPO (without regard to the percentage of voting stock (or other equity interest) of SCT Chassis or any of its subsidiaries, as applicable, directly or indirectly legally or beneficially owned by the Fortress Entities immediately after such IPO) or (II) without limiting clause (I), if at any time following an IPO one or more Fortress Entities collectively directly or indirectly legally or beneficially own at least 30% of the voting stock (or other equity interest) of the Company or SCT Chassis, as applicable, and are the largest shareholder (or other holder of equity) of the Company or SCT Chassis, as applicable.

 

(v)                                 “Disability” means, as determined by the Board of Directors in good faith, the Management Investor’s inability, due to disability or incapacity, to perform all of the Management Investor’s Duties on a full-time basis for (A) periods aggregating one hundred eighty (180) days, whether or not continuous, in any continuous period of three hundred and sixty five (365) days or, (B) where the Management Investor’s absence is adversely affecting the performance of the Company in a significant manner, periods greater than ninety (90) days and the Management Investor is unable to resume the Management Investor’s Duties on a full time basis within ten (10) days after receipt of written notice of the Board of Directors’ determination under this clause (v).

 

(vi)                              “Fair Market Value” of each share of Common Stock shall be determined as of the time of the event requiring valuation of such stock hereunder by the board of directors (or similar body) of SCT Chassis (“SCT Chassis Board”) in good faith; provided, however, that such determination shall be based upon the Company or SCT Chassis, as the case may be, as a going concern and shall not discount the value of such

 

5

 

shares either because they are subject to the restrictions set forth in this Agreement, or because they constitute only a minority interest in the Company or SCT Chassis, as the case may be.

 

(vii)                           “Fortress Entity” means (A) any private equity fund managed by an affiliate of FIG LLC (or its successors or assigns) or any affiliate of any such fund, (B) any investment vehicle (whether formed as a private investment fund, stock company or otherwise) managed directly or indirectly by FIG LLC (or its successors or assigns) or any of its affiliates or (C) any general partner, limited partner, managing member or person occupying a similar role of or with respect to any of the foregoing.

 

(viii)                        “IPO” means a firmly underwritten initial public offering pursuant to a registration statement declared effective under the Act covering the offer and sale of the common stock of SCT Chassis or any of its subsidiaries to the public generally in which the net proceeds to either SCT Chassis or such subsidiary, as applicable are not less than US$50,000,000.

 

(ix)                              “Pre-Tax Earnings” shall be measured in accordance with Generally Accepted Accounting Principles (“GAAP”) as in effect on the Grant Date.  For purposes of determining the achievement of the performance targets set forth above, “Pre-Tax Earnings” shall exclude the following: non-cash interest and one-time charges resulting from the termination or modification of interest rate swaps; losses related to the acceleration of amortization of deferred debt issue costs; and gains or losses resulting from other onetime events as determined by the board of directors of SCT Chassis.

 

2.                                      Transfers of Stock.

 

(a)                                 Resale of Stock.  Subject to the provisions of Sections 2(c) and 4, the Management Investor shall not Transfer the Restricted Shares or any other shares of Common Stock or other shares or capital of SCT Chassis now or hereinafter owned by the Management Investor, other than in accordance with both the provisions of this Section 2 and the federal and state securities laws.

 

(b)                                 Tag-Along Right; Drag-Along Right.

 

(i)                                     As used in this Agreement, the term “Holder” means the Management Investor or a Related Transferee (as defined below) of the Management Investor, and the term “Holder’s Shares” means all shares of Common Stock held by a Holder at any time of determination.

 

(ii)                                  Tag-Along Right.  Notwithstanding any other provision hereof, prior to one or more Fortress Entities selling more than fifty percent (50%) of the outstanding Common Stock (such selling entities, the “Selling Fortress Entities”) to one or more third persons who are not a Fortress Entity (collectively, a “Third Party”) pursuant to a single transaction or a series of related transactions (such sale, a “Third Party Sale”), the Selling Fortress Entities shall deliver a written notice (a “Tag-Along Notice”) to the Management Investor and each Related Transferee (or if any such individual is deceased, to the decedent’s personal representative) which satisfies the requirements of Section 2(b)(ii)(A)

 

6

 

below.  Such Tag-Along Notice shall be so delivered not less than forty (40) days prior to the respective Third Party Sale.

 

(A)                               Tag-Along Notice.  Each Tag-Along Notice shall set forth:  (i) the name and address of the Third Party; (ii) the proposed amount and form of consideration to be paid per share of Common Stock and the terms and conditions of payment offered by the Third Party; (iii) the aggregate number of shares of Common Stock held by the Selling Fortress Entities as of the date that the Tag-Along Notice is first delivered, mailed or sent by courier or facsimile to the Management Investor and each Related Transferee (or if any such individual is deceased, the decedent’s personal representative); (iv) the Tag-Along Sale Percentage (as defined below); (v) the proposed date of the Third Party Sale (the “Third Party Sale Date”); and (vi) confirmation that the proposed Third Party has agreed to purchase the Holder’s Shares in accordance with the terms hereof.

 

(B)                               Exercise of Tag-Along Right.  Upon the receipt of a Tag-Along Notice by the Management Investor or a Related Transferee (or if any such individual is deceased, to the decedent’s personal representative), each Holder shall have the right (such right, a “Tag-Along Right”), exercisable in its sole discretion, to sell to the respective Third Party up to the same percentage of the total number of Holder’s Shares held by such Holder on the date of the Tag-Along Notice (whether or not the restrictions on Transfer of Common Stock have lapsed) as the percentage of the total number of shares of Common Stock held by the Selling Fortress Entities as of the date of the Tag-Along Notice that such Selling Fortress Entities are selling in the Third Party Sale (the “Third Party Sale Percentage”), at the same price and on the same terms and conditions as such Selling Fortress Entities have agreed to with such Third Party; provided, however, that each such Holder shall not be permitted to sell any unvested Holder’s Shares; provided further, such Selling Fortress Entities shall use their reasonable, good faith efforts to provide (I) that the only representation and warranty which such Holder shall be required to make in connection with the Third Party Sale is a representation and warranty with respect to such Holder’s own ownership of the Holder’s Shares to be sold by it and its ability to convey title thereto free and clear of liens, encumbrances and adverse claims, (II) that the liability of such Holder with respect to any representation and warranty made in connection with the Third Party Sale is the several liability of such Holder (and not joint with any other person) and that such liability is limited to the amount of proceeds actually received by such Holder in the Third Party Sale and (III) each Holder with either an opinion of counsel to the effect that the Third Party Sale is not in violation of applicable federal and state securities or other laws or, if such Holder is not provided with an opinion with respect to the matters contemplated by this clause (III), an indemnity from such Selling Fortress Entities for any such violation.  If any Third Party Sale in respect of which a Holder has exercised its Tag-Along Right is in the form of a merger transaction, such Holder agrees to vote its Holder’s Shares in favor of such merger and not to exercise any rights of appraisal or dissent afforded under applicable law.

 

7

 

(C)                               Tag-Along Exercise Notice.  Each Holder may exercise the Tag-Along Right by providing the Selling Fortress Entities with written notice (a “Tag-Along Exercise Notice”) thereof not less than twenty-five (25) days prior to the proposed Third Party Sale Date specified in the respective Tag-Along Notice.  Such Tag-Along Exercise Notice must affirmatively state that such Holder is irrevocably exercising its Tag-Along Right and shall specify the number of vested Holder’s Shares held by it which it desires to sell to the Third Party pursuant to the Third Party Sale (which number shall in no event be greater than the product of (x) the number of Holder’s Shares held by such Holder and (y) the Third Party Sale Percentage specified in the respective Tag-Along Notice).  If the Selling Fortress Entities receive a Tag-Along Exercise Notice no later than the twenty-fifth (25th) day prior to the proposed Third Party Sale Date specified in the respective Tag-Along Notice, none of the Selling Fortress Entities to which the Tag-Along Exercise Notice relates shall consummate the respective Third Party Sale unless the Third Party also purchases the number of vested Holder’s Shares specified in such Tag Along Exercise Notice (in accordance with the terms of Section 2(b)(ii)(B) above).  If the Selling Fortress Entities have not received a Tag-Along Exercise Notice from a Holder by the twenty-fifth (25th) day prior to the proposed Third Party Sale Date specified in the respective Tag-Along Notice, such Holder shall be deemed to have waived its Tag-Along Right with respect to the Third Party Sale to which such Tag-Along Notice relates.

 

(D)                               Authority to Record Transfer/Delivery of Certificates.  SCT Chassis (or SCT Chassis’ transfer agent, if any) shall record in SCT Chassis’ books and records the transfer of the number of vested Holder’s Shares subject to a Tag-Along Exercise Notice which is not represented by one or more certificates issued by SCT Chassis, from the respective Holder to the Third Party, on the Third Party Sale Date.  If any part of such Holder’s Shares is represented by one or more certificates issued by SCT Chassis, the Holder shall deliver such certificate or certificates for such shares, duly endorsed for transfer with signatures guaranteed, to such Third Party on the Third Party Sale Date in the manner and at the address indicated in the Tag-Along Notice against delivery of the purchase price for the shares; provided, however, that in the event SCT Chassis has possession of any such certificate(s) pursuant to this Agreement, upon the written request of the Holder at least five (5) business days in advance of the Third Party Sale Date, SCT Chassis shall deliver such certificate(s) to the Third Party at the time and in the manner described above.

 

(iii)                               Drag-Along Right.  Notwithstanding any other provision hereof, if any Holder has not exercised its Tag-Along Right with respect to the maximum number of Holder’s Shares for which such Holder is permitted (pursuant to Section 2(b)(ii)(B) above) to exercise such Tag-Along Right in respect of a Third Party Sale, then, upon the demand of any Selling Fortress Entity participating in such Third Party Sale (in each such entity’s sole discretion), such Holder shall sell to the respective Third Party the number of whole Holder’s Shares (rounded upwards or downwards, as applicable), whether or not the restrictions on Transfer of Common Stock have lapsed, equal to the product of (x) the total number of Holder’s Shares held by such Holder on the date of the Drag-Along

 

8

 

Notice (as defined below) and (y) the Third Party Sale Percentage, at the same price and on the same terms and conditions as such Selling Fortress Entity has agreed to with such Third Party; provided, however, that each such Holder shall not be permitted to sell any unvested Holder’s Shares (provided that the Company may, in its sole discretion, accelerate the vesting of any unvested Holder’s Shares); provided further that such Selling Fortress Entity shall use its reasonable, good faith efforts to provide that (A) the only representation and warranty which such Holder shall be required to make in connection with the Third Party Sale is a representation and warranty with respect to such Holder’s own ownership of the Holder’s Shares to be sold by it and its ability to convey title thereto free and clear of liens, encumbrances and adverse claims and (B) the liability of such Holder with respect to any representation and warranty made in connection with the Third Party Sale is the several liability of such Holder (and not joint with any other person) and that such liability is limited to the amount of proceeds actually received by such Holder in the Third Party Sale; provided further, that a Holder shall not be obligated to participate in any Third Party Sale pursuant to this Section 2(b)(iii) unless such Holder is provided an opinion of counsel to the effect that the Third Party Sale is not in violation of applicable federal and state securities or other laws or, if such Holder is not provided with an opinion with respect to the matters contemplated by this proviso, each Selling Fortress Entity who has delivered a Drag-Along Notice to such Holder shall indemnify such Holder for any such violation.  If the Third Party Sale is in the form of a merger transaction, each Holder agrees to vote its Holder’s Shares in favor of such merger and not to exercise any rights of appraisal or dissent afforded under applicable law.

 

(A)                               Drag-Along Notice.  If a Selling Fortress Entity elects (in its sole discretion) to exercise the option described in this Section 2(b)(iii), such Selling Fortress Entity shall provide the Holder(s) with written notice (the “Drag-Along Notice”) thereof not more than twenty-four (24) nor less than ten (10) days prior to the proposed date of the Third Party Sale Date.  The Drag-Along Notice shall set forth:  (i) the name and address of the Third Party; (ii) the proposed amount and form of consideration to be paid per share and the terms and conditions of payment offered by the Third Party; (iii) the aggregate number of shares of Common Stock held by such Selling Fortress Entity as of the date that the Drag-Along Notice is first delivered, mailed or sent by courier or facsimile to the Holder; (iv) the Third Party Sale Percentage; (v) the proposed Third Party Sale Date; and (vi) confirmation that the proposed Third Party has agreed to purchase vested Holder’s Shares held by such Holder in accordance with the terms hereof.

 

(B)                               Authority to Record Transfer/Delivery of Certificates.  If a Selling Fortress Entity elects (in its sole discretion) to exercise the option described in this Section 2(b)(iii), SCT Chassis (or SCT Chassis’ transfer agent, if any) shall record in SCT Chassis’ books and records the transfer of the number of vested Holder’s Shares subject to the Drag-Along Notice which is not represented by one or more certificates issued by SCT Chassis, from the Holder to the Third Party, on the Third Party Sale Date.  If any part of such Holder’s Shares is represented by one or more certificates issued by SCT Chassis, the Holder shall deliver such certificate or certificates for such shares, duly endorsed for transfer with signatures guaranteed, to such Third Party on the Third Party Sale Date in the

 

9

 

manner and at the address indicated in the Drag-Along Notice against delivery of the purchase price for the shares; provided, however, that in the event that SCT Chassis has possession of any such certificate(s) pursuant to this Agreement, SCT Chassis shall deliver such certificate(s) to the Third Party at the time and in the manner described above.

 

(iv)                              Consideration.  The provisions of this Section 2(b) shall apply regardless of the form of consideration received in the Third Party Sale.

 

(c)                                  Transfer to Related Transferees.  Notwithstanding anything to the contrary contained in Section 1(f) and this Section 2, the Management Investor may Transfer shares of Common Stock without restriction to the Management Investor’s Related Transferees; provided that each such Related Transferee shall first (i) execute a written consent in form and substance satisfactory to the Company to be bound by all of the provisions of this Agreement and (ii) give a duplicate original of such consent to the Company.  The “Related Transferees” of the Management Investor shall consist of his spouse, his adult lineal descendants, the adult spouses of such lineal descendants, trusts solely for the benefit of the Management Investor’s spouse or his minor or adult lineal descendants and, in the event of death, his personal representatives (in their capacities as such), estate and named beneficiaries.  In the event of any Transfer by the Management Investor to his Related Transferees of all or any part of the shares of Common Stock owned by him (or in the event of any subsequent Transfer of such shares by any such Related Transferee to another Related Transferee of the Management Investor), such Related Transferees shall receive and hold said Common Stock subject to (and shall be bound by) the terms of this Agreement and the rights and obligations hereunder of the Management Investor, from whom such Common Stock was originally transferred, as though said Common Stock was still owned by the Management Investor, and such Related Transferees shall be treated as if they were the Management Investor for the purposes their stock-related rights and obligations under this Agreement.  There shall be no further Transfer of such Common Stock by a Related Transferee except between and among such Related Transferee, the Management Investor and the other Related Transferees of the Management Investor, or except as may otherwise be permitted by this Agreement.

 

(d)                                 Termination.  This Section 2 shall terminate upon the closing of an IPO; provided, however, the restrictions set forth in Section 2(a) shall continue to apply with respect to unvested Restricted Shares.

 

3.                                      The Management Investor’s Representations; Legends on Certificates.

 

(a)                                 Investment Risk.  The Management Investor represents and acknowledges that:  (i) as a result of the Management Investor’s experience in financial matters, the Management Investor is properly able (on his own) to evaluate the capital structure of SCT Chassis and its subsidiaries, the business of SCT Chassis and its subsidiaries and the risks inherent therein; (ii) the Management Investor has been given the opportunity to obtain any additional information or documents from and to ask questions, and receive answers of, the officers and representatives of SCT Chassis and its subsidiaries to the extent necessary to evaluate the merits and risks related to an investment in SCT Chassis; (iii) the Management Investor has been and will be, to the extent he deems necessary, advised by legal counsel of his

 

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choice at his expense in connection with this Agreement and the grant of the Restricted Shares hereunder; and (iv) the grant of the Restricted Shares hereunder will be consistent, in both nature and amount, with the Management Investor’s overall investment program and financial condition, and his financial condition will be such that he will be able to bear the economic risk of holding unregistered Common Stock for which there is no market and to suffer a complete loss of his investment therein.  The Management Investor further acknowledges that investment in the Restricted Shares involves significant risks and that these risks include, without limitation, the fact that SCT Chassis and its subsidiaries may have a leveraged financial structure.

 

(b)                                 Acquired for Investment.

 

(i)                                     The Management Investor represents and warrants that:  (A)  Restricted Shares will be acquired for his own account for investment, without any present intention of selling or further distributing the same, and he does not have any reason to anticipate any change in his circumstances or any other particular occasion or event which would cause him to sell any of such Common Stock; and (B) he is fully aware that in agreeing to grant such Common Stock to him, the Company and SCT Chassis will be relying upon the truth and accuracy of these representations and warranties.  The Management Investor agrees that he will not Transfer any Restricted Shares prior to an IPO, except to a Related Transferee in accordance with the terms of this Agreement or as otherwise may be permitted or required under this Agreement.  Any such Transfer must be in compliance with the Act, the rules and regulations of the Securities and Exchange Commission thereunder, the relevant state securities laws applicable to the Management Investor’s action and the terms of this Agreement.

 

(ii)                                  The Management Investor acknowledges that no trading market for the Common Stock exists currently and that there is no assurance that one will exist at any time in the foreseeable future (if at all) and that, as a result, the Management Investor may be unable to sell any of the Common Stock acquired hereunder for an indefinite period.  Further, SCT Chassis has no obligation to register any of the Common Stock (including any of the Restricted Shares) for sale or resale under the Act or any other applicable law (including any “blue sky” law).

 

(iii)                               The Management Investor acknowledges and agrees that nothing herein, including the provisions of Section 1 of this Agreement or the opportunity to make an investment in SCT Chassis, shall be deemed to create any implication concerning the adequacy of the Management Investor’s services to the Company or any of its affiliates.

 

(c)                                  Legend on Certificates.  If, in the sole discretion of SCT Chassis, share certificates are issued to the Management Investor prior to the closing of an IPO, each share certificate issued to the Management Investor representing Common Stock issued hereunder shall bear the following (or substantially equivalent) legends on the face or reverse side thereof:

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE

 

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REGISTRATION STATEMENT UNDER THE ACT COVERING SUCH SECURITIES, THE SALE IS MADE IN ACCORDANCE WITH RULE 144 OR ANY SUCCESSOR RULE UNDER THE ACT OR SCT CHASSIS INC. (THE “COMPANY”) RECEIVES AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.  THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A MANAGEMENT SHAREHOLDER AGREEMENT DATED JUNE 1, 2016, BY AND BETWEEN KEVIN SNYDER, INTERPOOL, INC., D/B/A TRAC INTERMODAL AND THE COMPANY, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY, AND THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE VOTED, TRANSFERRED, SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS SUCH VOTING, TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION COMPLIES WITH THE PROVISIONS OF SUCH AGREEMENT.

 

Any share certificate issued at any time in exchange or substitution for any certificates bearing such legends (except a new certificate issued upon the completion of a public distribution of Common Stock represented thereby) shall also bear such (or substantially equivalent) legends, unless the Common Stock represented by such certificate is no longer subject to the provisions of this Agreement and, in the opinion of counsel for SCT Chassis, the Common Stock represented thereby need no longer be subject to restrictions pursuant to the Act or applicable state securities law.  SCT Chassis shall not be required to transfer on its books any certificate for Common Stock in violation of the provisions of this Agreement.

 

4.                                      Company “Call” Option.

 

(a)                                 Upon the termination of the Management Investor’s employment with the Company for any reason (including if the Management Investor dies while an employee of the Company) prior to the effective date of an IPO (a “Call Purchase Event”), subject to the provisions of this Section 4, the Company may, at its sole option exercisable by written notice (a “Purchase Notice”) delivered to the Management Investor (or in the case of a deceased Management Investor, the Management Investor’s personal representative) within ninety (90) days after the applicable Call Purchase Event (or, in the event the applicable Call Purchase Event is the death of the Management Investor, within thirty (30) days after the appointment and qualification of the deceased Management Investor’s personal representative, if later), elect to purchase and, upon the giving of such notice, the Company shall be obligated to purchase, and the Management Investor (and the Related Transferees, if any, of the Management Investor or, in the case of a deceased Management Investor, his personal representative) (the Management Investor or his personal representative and each Related Transferee being referred to herein as a “Seller”) shall be obligated to sell, all, or any lesser portion indicated in the Purchase Notice, of the Common Stock held by the Sellers at a per share price equal to:

 

(i)                                     in the case of vested Restricted Shares, if the Management Investor’s employment is terminated by the Company for Cause or the Management Investor

 

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resigns as an employee of the Company, the lesser of (x) the Fair Market Value thereof as of the applicable date of grant hereunder of the Restricted Shares or (y) the Fair Market Value thereof as of the date of the Call Purchase Event; or

 

(ii)                                  in the case of vested Restricted Shares, if the Management Investor’s employment is terminated by the Company without Cause, or due to the Management Investor death or Disability while an employee of the Company, the Fair Market Value thereof as of the date of the Call Purchase Event.

 

(b)                                 If the Company does not elect to exercise its option set forth in Section 4(a) above, the Company shall give written notice that it is not so electing to each Fortress Entity owning Common Stock within the time periods specified in Section 4(a) for the giving of the Purchase Notice.  Upon receipt of such notice from the Company, each Fortress Entity owning Common Stock shall have the option, exercisable by written notice (a “Fortress Entity Purchase Notice”) delivered to the Sellers within fifteen (15) days after receipt of such notice from the Company, to purchase from the Sellers (and, upon the giving of the Fortress Entity Purchase Notice, such Fortress Entity shall be obligated to purchase and the Sellers shall be obligated to sell) all, or any lesser portion indicated in the Fortress Entity Purchase Notice, of the Common Stock held by the Sellers; provided, however, if oversubscribed by more than one such Fortress Entity providing a Fortress Entity Purchase Notice, each such Fortress Entity shall purchase a pro rata portion of such Common Stock held by Sellers determined by its pro rata portion of all shares of Common Stock owned by such subscribing Fortress Entities) at the per share price determined in accordance with paragraph (a) of this Section 4.

 

(c)                                  In the event a purchase of shares of Common Stock pursuant to this Section 4 shall be prohibited by law or would cause a default under the terms of any indenture or loan agreement or other instrument to which the Company or any of its affiliates may be a party, the obligations of the Sellers and the Company pursuant to this Section 4 shall be suspended and no such default shall be caused; provided, however, that (x) the purchase price to be paid by the Company for the shares shall accrue interest at the lowest rate necessary to prevent the imputation of interest or original issue discount under the Internal Revenue Code of 1986, as amended (the “Code”), reduced by any dividends or distributions received by the Management Investor (but not to an amount less than zero) on such Common Stock during the period of such suspension, which interest shall likewise be paid when such prohibition first lapses or is waived and no such default would be caused and (y) in the event of any such suspension, if one or more Fortress Entities so elect and no violation of law would be caused and no default under the terms of any indenture or loan agreement or other instrument to which the Company or any of its affiliates may be a party would result, the Company shall transfer its obligations under this Section 4 to such Fortress Entities, in which case such Fortress Entities and the Sellers shall be obligated to complete the purchase of shares of Common Stock pursuant to this Section 4.

 

5.                                      Restrictive Covenants.  The Management Investor acknowledges that during the period of the Management Investor’s employment with the Company the Management Investor shall have access to secret and confidential information, knowledge and/or data relating to the Company and its businesses, and will meet and develop relationships with potential and existing suppliers, financing sources, clients, customers and employees of the Company.

 

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(a)                                 Noncompetition; Nonsolicitation.  The Management Investor agrees that during the period of the Management Investor’s employment with the Company, and for the one (1) year period immediately following termination of such employment (whether as a result of termination for Cause, termination other than for Cause, resignation, death, Disability or otherwise), the Management Investor shall not:

 

(i)                                     directly or indirectly (whether as principal, agent, independent contractor, partner, member, manager, officer, director or otherwise) own, manage, operate, control, participate in, perform services for, make any investment in or otherwise carry on, any business that is competitive with any business engaged in or conducted by the Company, or any business that the Company proposes or contemplates to engage in or conduct, at such time, including, but not limited to, the business of owning, leasing (as lessor, sublessor, lessee or sublessee) or managing intermodal chassis; or

 

(ii)                                  directly or indirectly, engage in the recruiting, soliciting or inducing of any nonclerical employee or employees of the Company to terminate their employment with, or otherwise cease their relationship with, the Company, or in hiring or assisting another person or entity to hire any nonclerical employee of the Company or any person who within six (6) months before had been a nonclerical employee of the Company and were recruited or solicited for such employment or other retention while an employee of the Company (other than any of the foregoing activities engaged in with the prior written approval of the Company); or

 

(iii)                               directly or indirectly solicit, induce or encourage or attempt to persuade any agent, supplier or customer of the Company to terminate such agency or business relationship.

 

Nothing contained in this Agreement shall limit or otherwise affect the ability of the Management Investor to own not more than one percent (1.0%) of the outstanding capital stock of any entity that is engaged in a business competitive with the Company, provided that such investment is a passive investment and such Management Investor is not directly or indirectly involved in the management or operation of such business or otherwise providing consulting services to such business.  In the event that the Management Investor inadvertently accumulates more than one percent (1.0%) of such competitive entity, provided the Management Investor gives the Company immediate written notice thereof and divests himself of such passive investment within thirty (30) days of his accumulating more than one percent (1.0%) of such competitive entity, the Company will not seek any other relief for violation of this provision.

 

(b)                                 Disparaging Comments.  The Management Investor and the Company agree that both during and after the Management Investor’s employment with the Company, the Management Investor and the Company shall not make any disparaging or defamatory comments regarding the other, or make any disparaging or defamatory comments concerning any aspect of the termination of the employment relationship.  The obligations of the Management Investor and the Company under this subparagraph shall not apply to disclosures required by applicable law, regulation or order of any court or governmental agency.

 

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Nothing contained in this Section 5 shall limit any common law or statutory obligation that the Management Investor may have to the Company.  For purposes of the foregoing provisions of this Section 5, each reference to “the Company” shall be deemed to include any incorporated or unincorporated affiliates of the Company (including, without limitation, subsidiaries), including any entity which becomes the Management Investor’s employer as a result of any business transaction, reorganization or restructuring of the Company for any reason.

 

The Company shall be entitled, in connection with tax planning or other reasons, to terminate the Management Investor’s employment (which termination shall not be considered a termination without Cause for purposes of this Agreement or otherwise) in connection with an invitation from another affiliate of the Company to accept employment with such affiliate in which case the terms and conditions hereof shall apply to the Management Investor’s employment relationship with such entity mutatis mutandis.

 

6.                                      Confidentiality.  During employment and following termination of employment, the Management Investor will hold and keep confidential all secret and confidential information, knowledge or data relating to the Company and its businesses, including any confidential information as to customers of the Company (i) obtained by the Management Investor during employment by the Company, and (ii) not otherwise public knowledge or known within the applicable industry.  Upon termination of employment with the Company, or at any time as the Company may request, the Management Investor will promptly deliver to the Company, as requested, all documents (whether prepared by the Company, the Management Investor or a third party) relating to the Company or any of its businesses or property which the Management Investor may possess or have under the Management Investor’s direction or control other than documents provided to the Management Investor as a participant in any employee benefit plan, policy or program of the Company or any agreement by and between the Management Investor, SCT Chassis and/or the Company with regard to the Management Investor’s employment or severance.  For purposes of the foregoing provisions of this Section 6, each reference to “the Company” shall be deemed to include any incorporated or unincorporated affiliates of the Company (including, without limitation, subsidiaries), including any entity which becomes the Management Investor’s employer as a result of any business transaction, reorganization or restructuring of the Company for any reason.

 

The Management Investor shall not, without prior written consent of the Company, unless compelled pursuant to the order of a court or other governmental or legal body having jurisdiction over such matter, communicate or divulge any such information, knowledge or data to anyone other than the Company and those designated by it.  In the event the Management Investor is compelled by order of a court or other governmental or legal body to communicate or divulge any such information, knowledge or data to anyone other than the foregoing, the Management Investor will promptly notify the Company of any such order and will cooperate fully with the Company in protecting such information to the extent possible under applicable law.  The Company agrees to reimburse the Management Investor for all reasonable expenses actually incurred and paid in connection with such cooperation, including reasonable attorneys’ fees for separate counsel for the Management Investor, which counsel the Management Investor may select in his sole reasonable discretion.

 

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7.                                      Notices.  All notices or other communications under this Agreement shall be given in writing and shall be deemed duly given and received on the third full business day following the day of the mailing thereof by registered or certified mail or when delivered personally or sent by facsimile transmission as follows:

 

(a)                                 if to the Management Investor, at the address of the Management Investor as it appears on the signature page to this Agreement or at such other place as the Management Investor shall have designated by notice as herein provided to the Company; and

 

(b)                                 if to the Company or SCT Chassis, at 750 College Road East, Princeton, New Jersey 08540, Attention: General Counsel; and

 

(c)                                  if to any Fortress Entity, at Fortress Investment Group LLC, 1345 Avenue of the Americas, 46th Floor, New York, New York 10105, Attention:  Randal A. Nardone, or at such other place as such person shall have designated by notice as herein provided to the Management Investor.

 

8.                                      Specific Performance, Forfeiture, Right to Repurchase.

 

(a)                                 Specific Performance.  Due to the fact that the securities of SCT Chassis cannot be readily purchased or sold in the open market and because damages to the Company, its subsidiaries and affiliates will be difficult to ascertain and remedies at law to the Company, its subsidiaries and affiliates will be inadequate and for other reasons, the parties will be irreparably damaged in the event that this Agreement is not specifically enforced.  In the event of a breach or threatened breach of the terms, covenants and/or conditions of this Agreement by any of the parties hereto, the other parties shall, in addition to all other remedies, be entitled (without any bond or other security being required) to a temporary and/or permanent injunction, without showing any actual damage or that monetary damages would not provide an adequate remedy, and/or a decree for specific performance, in accordance with the provisions hereof.

 

(b)                                 Forfeiture, Right to Repurchase.  The Management Investor acknowledges that if (x) the Management Investor breaches any term or condition contained in Section 5 or 6 of this Agreement and (y) the Company provides the Management Investor with written notice of such breach:

 

(i)                                     if such notice is given prior to the effective date of an IPO, (A) all of the Restricted Shares shall be automatically forfeited, and be deemed to have been repurchased by the Company at a purchase price of zero dollars, upon the giving of such notice as such breach of Section 5 or 6, together with the giving of such notice, shall be deemed a Call Purchase Event (as of the date of such notice) due to a termination for Cause; and

 

(ii)                                  if such notice is given after the effective date of an IPO, all of the Restricted Shares that have not vested prior to the date of such notice shall be automatically forfeited, and be deemed to have been repurchased by the Company at a purchase price of zero dollars, upon the giving of such notice.

 

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9.                                      Further Assurances in Connection with an IPO.  The Management Investor agrees that he will, to the extent requested by the Company, reasonably cooperate with and provide assistance to SCT Chassis and its affiliates in connection with an IPO or other offering of securities by SCT Chassis or an affiliate thereof, and any restructuring necessary in connection with an IPO including but not limited to the exchange of vested or unvested Restricted Shares for shares in an affiliate of the Company, including, without limitation, by executing and delivering reasonably requested certificates, instruments and other documents.  Without limiting the foregoing, the Management Investor agrees that he will execute and deliver a lock-up agreement with respect to any or all of the Common Stock (or any such shares of an affiliate of the Company issued in exchange therefor) owned by the Management Investor in connection with an IPO or other offering of securities by SCT Chassis or any of its affiliates, in form and substance reasonably requested by any underwriter or by SCT Chassis or any affiliate thereof, as applicable, provided that such lock-up agreement shall not be more onerous in its terms than the lock-up agreements provided by other senior executive officers of the Company in accordance with the requirements of the underwriter.

 

10.                               Miscellaneous.

 

(a)                                 This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof and may not be modified or amended except by a written agreement signed by the Company, SCT Chassis and the Management Investor.  This Agreement supersedes any prior agreements or understandings between the parties with respect to the subject matter hereof.  The Management Investor represents that he is free to enter into this Agreement without violating any agreement or covenant with, or obligation to, any other entity or individual.

 

(b)                                 In the event any capital stock of the Company or any other corporation shall be distributed on, with respect to, or in exchange for shares of Common Stock as a stock (or share) dividend, stock (or share) split, spin-off, reclassification or recapitalization in connection with any merger, amalgamation, continuation into another jurisdiction or reorganization, the restrictions, rights and options set forth in this Agreement shall apply with respect to such other capital stock to the same extent as they are, or would have been applicable, to the Common Stock acquired hereunder on, or with respect to, which such other capital stock was distributed.

 

(c)                                  No waiver of any breach or default hereunder shall be considered valid unless in writing, and no such waiver shall be deemed a waiver of any subsequent breach or default of the same or similar nature.  Anything in this Agreement to the contrary notwithstanding, any waiver, consent or other instrument under or pursuant to this Agreement signed by, or binding upon, the Management Investor shall be valid and binding upon any and all persons or entities (other than the Company and its affiliates, including the Fortress Entities) who may, at any time, have or claim any rights under or pursuant to this Agreement in respect of the Restricted Shares.

 

(d)                                 Except as otherwise expressly provided herein, this Agreement shall be binding upon and inure to the benefit of the Company, SCT Chassis and their respective affiliates, including the Fortress Entities, and their respective successors and assigns and the Management Investor and the Management Investor’s heirs, personal representatives, successors

 

17

 

and assigns; provided, however, that nothing contained herein shall be construed as granting the Management Investor the right to Transfer any of the Restricted Shares, except in accordance with this Agreement and any transferee shall hold the Restricted Shares having only those rights, and being subject to the restrictions, provided for in this Agreement.  Except as specified herein, this Agreement shall not be assignable.

 

(e)                                  Any provision hereof which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  To the fullest extent permitted by applicable law, the parties hereby waive any provision of law which may render any provision hereof prohibited or unenforceable in any respect.

 

(f)                                   Should any party to this Agreement be required to commence any litigation concerning any provision of this Agreement or the rights and duties of the parties hereunder, the prevailing party in such proceeding shall be entitled, in addition to such other relief as may be granted, to the reasonable attorneys’ fees and court costs incurred by reason of such litigation.

 

(g)                                  The section headings contained herein are for the purposes of convenience only and are not intended to define or limit the contents of said sections.

 

(h)                                 Words in the singular shall be read and construed as though in the plural and words in the plural shall be read and construed as though in the singular in all cases where they would so apply.  Words herein of any gender are deemed to include each other gender.

 

(i)                                     This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same agreement, and all signatures need not appear on any one counterpart.

 

(j)                                    The Management Investor agrees that, subsequent to any termination of his employment, he will continue to cooperate with the Company and SCT Chassis in the prosecution and/or defense of any claim in which the Company or SCT Chassis may have an interest (with the right of reimbursement for reasonable out-of-pocket expenses (including reasonable attorneys’ fees) actually incurred) which may include, without limitation, being available to participate in any proceeding involving the Company or SCT Chassis, permitting interviews with representatives of the Company or SCT Chassis, appearing for depositions and trial testimony, and producing and/or providing any documents or names of other persons with relevant information in the Management Investor’s possession or control arising out of his employment in a reasonable time, place and manner.

 

(k)                                 All payments pursuant to this Agreement shall be subject to regular withholding and deductions.  The Management Investor shall pay the applicable entity promptly upon request, and in any event at the time he recognizes taxable income in respect to any Restricted Shares which vest pursuant to this Agreement or otherwise, an amount equal to the

 

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taxes the Company determines it is required to withhold.  The Company may, in its sole discretion, permit the Management Investor to elect to pay a portion or all of such withholding taxes (i) in cash (ii) by delivery of shares of Common Stock or (iii) by having shares of Common Stock withheld by the Company from any shares of Common Stock that would have otherwise been received by the Management Investor.

 

(l)            The Management Investor hereby irrevocably consents and agrees that any legal action, suit or proceeding against him with respect to his obligations or liabilities or any other matter under or arising out of or in connection with this Agreement shall be brought in the United States District Court of the Southern District of New York or in the courts of the State of New York, sitting in New York County and, by execution and delivery of this Agreement, the Management Investor, to the fullest extent permitted by applicable law, hereby (i) irrevocably accepts and submits to the exclusive jurisdiction of each of the aforesaid courts, in person, generally and unconditionally with respect to any such action, suit or proceeding, (ii) agrees not to commence any such action, suit or proceeding in any jurisdiction other than those of the aforesaid courts, (iii) waives any objection to the laying of venue of any such action, suit or proceeding therein, (iv) agrees not to plead or claim that such action, suit or proceeding has been brought in an inconvenient forum and (v) consents to service of process in connection with an such action, suit or proceeding by the delivery of notice to such Management Investor’s address set forth in this Agreement.

 

(m)          The terms of this Agreement have been designed to be exempt from, or, where applicable, to comply with, the requirements of Section 409A of the Code and shall be interpreted and administered in a manner consistent with such intent.

 

(n)           This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York, without regard to any choice-of-law rules thereof which might apply the laws of any other jurisdiction.

 

(o)           WAIVER OF JURY TRIAL.  EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE SUBJECT MATTER HEREOF.  EACH PARTY ALSO WAIVES ANY BOND OR SURETY OR SECURITY UPON SUCH BOND WHICH MIGHT, BUT FOR THIS WAIVER, BE REQUIRED OF SUCH PARTY.  THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MIGHT BE FILED IN ANY COURT AND THAT MAY RELATE TO THE SUBJECT MATTER OF THIS AGREEMENT, INCLUDING ALL COMMON LAW AND STATUTORY CLAIMS.  EACH PARTY FURTHER REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH SUCH LEGAL COUNSEL.  THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THE WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, MODIFICATIONS, SUPPLEMENTS OR RESTATEMENTS HEREOF.  IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

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[signature page follows]

 

20

 

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

 

	
 
    	
INTERPOOL, INC.,
    
	
 
    	
d/b/a   TRAC INTERMODALTM
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   Keith Lovetro 
    
	
 
    	
 
    	
Title:   CEO
    
	
 
    	
 
    	
 
    
	
 
    	
SCT   CHASSIS INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   Gregg F. Carpene 
    
	
 
    	
 
    	
Title:   Vice President, Secretary, General Counsel
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
MANAGEMENT   INVESTOR
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Kevin   Snyder
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Address:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

 

Appendix A

 

Restricted Shares

 

	
Number of shares of Common Stock:
    	
 
    	
35,682
    	
 
    
	
Price   per share:
    	
 
    	
$
    	
11.21
    	
 
    
					

 

 

Exhibit A

 

SHARE TRANSFER

 

FOR VALUE RECEIVED, KEVIN SNYDER hereby sells, assigns and transfers unto                                                           (      ) shares of the Common Stock of SCT Chassis Inc. (“SCT Chassis”) standing in his name on the books of SCT Chassis represented by Certificate No(s).        herewith, and does hereby irrevocably constitute and appoint                                 as attorney-in-fact to transfer the shares on the books of SCT Chassis with full power of substitution in the premises.

 

	
Dated:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   by:
    	
 
    	
In   the presence of:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Witness
    

 

Exhibit A – Page 1

 

 

Exhibit B

 

Irrevocable Proxy pursuant to

Section 1(d)(vi) of the Management

Shareholder Agreement

Dated            , 2016 (the “Agreement”)

 

Proxy

 

SCT Chassis Inc. (“SCT Chassis”)

 

I, KEVIN SNYDER, being a shareholder of SCT Chassis, HEREBY APPOINT FIG LLC, to be my proxy for and in my name, place and stead to attend all meetings of the shareholders of SCT Chassis and to vote any and all Restricted Shares in SCT Chassis at the time standing in my name and to exercise all consensual rights in respect of such shares (including without limitation giving or withholding written consents of shareholders and calling special general meetings of shareholders) within the scope and pursuant to terms set out in Section 1(d)(vi) of the Agreement.  This proxy shall automatically terminate upon the closing of an IPO.

 

Signed as of the      day of           , 2016.

 

	
 
    	
 
    
	
Name:
    	
 
    
	
Address:
    	
 
    

 

Exhibit B – Page 1

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