Document:

Exhibit 10.1

 

Execution
Version

 

AMENDMENT TO SHARE PURCHASE AGREEMENT

 

This AMENDMENT TO SHARE PURCHASE
AGREEMENT, dated as of August 27, 2021 (this “Amendment”), is made by and among Digital Turbine, Inc. (the
 “Parent”), Digital Turbine Media, Inc. (the “Purchaser”), Digital Turbine AdColony AS (“DT
AdColony”), AdColony Holding AS (the “Company”) and Otello Corporation ASA (the “Seller”
and, together with the Parent, the Purchaser, and the Company, collectively, the “Parties”).

 

RECITALS

 

WHEREAS, the Parties (other
than DT AdColony) entered into a Share Purchase Agreement, dated as of February 26, 2021 (the “Purchase Agreement”),
pursuant to which, among other things, the Purchaser agreed to purchase, and the Seller agreed to sell, all of the Company Securities;

 

WHEREAS, the Purchaser assigned
certain of its rights and obligations under the Purchase Agreement to DT AdColony;

 

WHEREAS, on April 29,
2021, the Parties consummated the transactions contemplated by the Purchase Agreement; and

 

WHEREAS, the Parties desire
to amend the Purchase Agreement to (a) agree on a fixed dollar amount for the Earn-Out Payment Amount and a payment date for such
amount and (b) eliminate all of the earn-out support obligations.

 

NOW, THEREFORE, in consideration
of the mutual covenants, agreements and obligations herein contained, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Parties hereby covenant and agree as follows:

 

1.            Purchase
Price. Section 1.2(c) of the Purchase Agreement is hereby deleted in its entirety and replaced with the following:

 

“(c) (i) $204,500,000
in cash (the “Earn-Out Payment Amount”) to be paid in accordance with Section 1.4(b), less (ii) the
aggregate amount of all Transaction-Related Bonuses payable on or promptly following the time of payment of the Earn-Out Payment Amount.”

 

2.            Payments
Following Closing. Section 1.4(b) of the Purchase Agreement is hereby deleted in its entirety and replaced with the
following:

 

“(b) Earn-Out Payment
Amount. On or before January 15, 2022 (such date, the “Earn-Out Payment Amount Date”), Purchaser shall pay:
(i) to the Seller, (A) the Earn-Out Payment Amount, less (B) the aggregate amount of all Transaction-Related Bonuses
payable on or promptly following the Earn-Out Payment Amount Date (such amount, the “Earn-Out Bonus Amount”); and (ii) to
each Specified Individual entitled to receive a Transaction-Related Bonus on or promptly following the Earn-Out Payment Amount Date, the
portion of the Earn-Out Bonus Amount payable to such Specified Individual, in each case of subsections “(i)” and “(ii),”
in cash by wire transfer of immediately available funds in accordance with the wire instructions provided by Seller.”

 

     

     

    

 

3.            Employees
and Benefits.

 

		a.	Section 6.6(a)(i) of the Purchase Agreement is hereby amended by deleting the following
parenthetical therefrom: “(it being understood that without Seller’s written consent, any reduction in base salary or wages
in excess of ten percent (10%), regardless of any increase in bonus opportunity, shall be deemed to not be as favorable in the aggregate
to any Continuing Employee as required under this paragraph)”.

 

		b.	The last sentence of Section 6.6(b) of the Purchase Agreement is hereby deleted.

 

4.            Definitions.
Exhibit A to the Purchase Agreement is hereby amended as follows:

 

		a.	The definitions of “AdColony Companies,” “Cause,” “Company
Sale,” “Default Events,” “Direct Reports,” “Earn-Out Objection Notice,”
 “Earn-Out Statement,” “Earn-Out Target Amount,” “Good Reason,” and “Net
Revenue” are deleted in their entirety;

 

		b.	The definition of “Earn-Out Period” is deleted in its entirety and replaced with the
following: “‘Earn-Out Period’ means the twelve (12) month period ending on December 31, 2021.”; and

 

		c.	The definition of “Key Employees” is deleted in its entirety and replaced with the
following: “‘Key Employees’ means the employees listed on Schedule 1.2(c)(ii).”

 

5.            Schedules.
Each of Schedules 1.2(c) and 1.2(c)(i) of the Purchase Agreement is hereby deleted in its entirety.

 

6.            Remainder
of Purchase Agreement Unchanged. Except as expressly set forth in Sections 1 through 5 above, the Purchase Agreement
shall remain unchanged and in full force and effect.

 

7.            Governing
Law. This Amendment shall be construed and interpreted in accordance with the laws of the State of Delaware, without regard to the
conflict of laws rules thereof, and the Parties agree to submit any dispute arising out of this Amendment to the courts of such State.

 

8.            Entire
Agreement. This Amendment, along with the Purchase Agreement (as subsequently amended), sets forth the entire understanding of the
Parties relating to the subject matter hereof and supersedes all prior agreements and understandings among or between any of those Parties
relating to the subject matter hereof.

 

9.            Binding
Effect. This Amendment shall be binding upon the Parties hereto and their respective successors and permitted assigns, and shall inure
to the benefit of the Parties hereto, their respective successors and permitted assigns.

 

    2 

     

    

 

10.          No
Assignment. This Amendment shall not be assigned by any Party without the express prior written consent of the other Parties hereto,
except that the Purchaser may, without the prior approval of any Seller Party, and provided that each of the Purchaser and the Parent
continue to remain fully liable for its obligations and liabilities hereunder, (a) assign its rights, interests, and obligations
hereunder to any Affiliate, and (b) grant Liens in respect of its rights and interests hereunder to its lenders (and any agent for
the lenders), and the Parties consent to any exercise by such lenders (and such agent) of their rights and remedies with respect to such
collateral.

 

11.          Counterparts.
This Amendment may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of
which together shall constitute one and the same agreement. The execution and delivery of this Amendment by facsimile, electronic mail
(including email, .pdf or other digital copies of signatures) or another form of electronic signature or transmission shall be sufficient
to evidence the Parties’ intent to sign this Amendment and bind each Party to the terms and provisions of this Amendment.

 

12.          Construction.
As used in this Amendment, the words “include” and “including,” and variations thereof, shall not be deemed to
be terms of limitation, but rather shall be deemed to be followed by the words “without limitation.” The terms “hereof,”
 “herein,” “hereunder,” “hereby” and “herewith” and words of similar import shall, unless
otherwise stated, be construed to refer to this Amendment as a whole and not to any particular provision of this Amendment. Capitalized
terms used herein and not otherwise defined shall have the meanings ascribed to such terms in the Purchase Agreement.

 

[Remainder Of Page Intentionally Left Blank]

 

    3 

     

    

 

IN WITNESS WHEREOF, the Parties
hereto have caused this Amendment to be executed as of the date first above written.

 

	Dated: August 27, 2021	DIGITAL
    TURBINE, INC.
	 	 
	 	By:	/s/ William G. Stone III
	 	Name:
    William G. Stone III
	 	Title:
    Chief Executive Officer
	 	 
	 	DIGITAL
    TURBINE MEDIA, INC.
	 	 
	 	By:	/s/ William G. Stone III
	 	Name:
    William G. Stone III
	 	Title:
    Chief Executive Officer
	 	 
	 	DIGITAL
    TURBINE ADCOLONY AS
	 	 
	 	By:	/s/ William G. Stone III
	 	Name:
    William G. Stone III
	 	Title:
    Chairman of the Board
	 	 
	 	OTELLO
    CORPORATION ASA
	 	 
	 	By:	/s/ Lars Boilesen
	 	Name:
    Lars Boilesen
	 	Title:
    Chief Executive Officer
	 	 
	 	ADCOLONY
    HOLDING AS
	 	 
	 	By:	/s/ William G. Stone III
	 	Name:
    William G. Stone III
	 	Title:
    Chairman of the Board
	 	 
	 	By:	/s/ Lars Boilesen
	 	Name:
    Lars Boilesen
	 	Title:
    Director

 

Signature Page to Amendmentsnaponeallteammemberssto

            SNAP ONE HOLDINGS CORP.  STOCKHOLDERS AGREEMENT  Dated as of July 27, 2021      

 

  ii  TABLE OF CONTENTS  Page  ARTICLE I    DEFINITIONS  Section 1.1. Definitions ................................................................................................ 1  Section 1.2. Definitions Cross References .................................................................... 6  Section 1.3. General Interpretive Principles ................................................................. 7  ARTICLE II    REPRESENTATIONS AND WARRANTIES  Section 2.1. Representations and Warranties of the Parties .......................................... 7  ARTICLE III    GOVERNANCE  Section 3.1. Board of Directors .................................................................................... 8  Section 3.2. Sharing of Information .............................................................................. 9  ARTICLE IV    TRANSFER RESTRICTIONS  Section 4.1. General Restrictions on Transfers. .......................................................... 10  Section 4.2. Permitted Transfers ................................................................................. 11  Section 4.3. Transfer Restriction Period ..................................................................... 11  ARTICLE V    REGISTRATION RIGHTS  Section 5.1. Certain Definitions .................................................................................. 12  Section 5.2. Shelf Registration ................................................................................... 14  Section 5.3. Demand Registration .............................................................................. 18  Section 5.4. Piggyback Registration ........................................................................... 19  Section 5.5. Expenses of Registration ........................................................................ 21  Section 5.6. Obligations of the Company ................................................................... 21  Section 5.7. Indemnification ....................................................................................... 23  Section 5.8. Information by Holder ............................................................................ 25  Section 5.9. Transfer of Registration Rights ............................................................... 25  Section 5.10. Delay of Registration .............................................................................. 25  Section 5.11. Limitations on Subsequent Registration Rights ...................................... 25  Section 5.12. Rule 144 Reporting ................................................................................. 26  Section 5.13. “Market Stand Off” Agreement .............................................................. 26  Section 5.14. Termination of Registration Rights ........................................................ 26  Section 5.15. Other Obligations .................................................................................... 27  

 

  iii  ARTICLE VI    ADDITIONAL AGREEMENTS OF THE PARTIES  Section 6.1. Further Assurances ................................................................................. 27  Section 6.2. Other Businesses; Waiver of Certain Duties .......................................... 27  Section 6.3. Legends on Securities. ............................................................................ 28  Section 6.4. Reimbursement ....................................................................................... 29  ARTICLE VII    ADDITIONAL PARTIES  Section 7.1. Additional Parties ................................................................................... 29  ARTICLE VIII    INDEMNIFICATION  Section 8.1. Indemnification ....................................................................................... 30  Section 8.2. Insurance ................................................................................................. 31  ARTICLE IX    MISCELLANEOUS  Section 9.1. Entire Agreement; Third Party Beneficiaries ......................................... 31  Section 9.2. Specific Performance .............................................................................. 32  Section 9.3. Governing Law ....................................................................................... 32  Section 9.4. Submission to Jurisdiction ...................................................................... 32  Section 9.5. Obligations .............................................................................................. 33  Section 9.6. Consents, Approvals and Actions ........................................................... 33  Section 9.7. Amendments ........................................................................................... 33  Section 9.8. Assignment of Rights by the H&F Stockholders .................................... 34  Section 9.9. Subsequent Acquisition of Securities ..................................................... 34  Section 9.10. Binding Effect ......................................................................................... 34  Section 9.11. Termination; Effect of Termination ........................................................ 34  Section 9.12. Notices .................................................................................................... 34  Section 9.13. Severability ............................................................................................. 35  Section 9.14. Aggregation of Securities ....................................................................... 35  Section 9.15. No Third Party Liabilities ....................................................................... 35  Section 9.16. Independent Nature of Stockholders’ Obligations and Rights ................ 36  Section 9.17. Effectiveness ........................................................................................... 36  Section 9.18. Counterparts; Electronic Delivery .......................................................... 37  Section 9.19. Logo ........................................................................................................ 37  Section 9.20. Waiver of Jury Trial ................................................................................ 37  Section 9.21. Reinstatement of Terms of Unitholders Agreement ............................... 37          

 

  iv    EXHIBITS    Exhibit A Joinder Agreement  Exhibit B Consent of Spouse  Exhibit C Specified Stockholders  Exhibit D  Specified Management Stockholders    

 

1  SNAP ONE HOLDINGS CORP.  STOCKHOLDERS AGREEMENT  This STOCKHOLDERS AGREEMENT (as amended, restated, supplemented or  otherwise modified from time to time in accordance with its terms, this “Agreement”) is dated as of July  27, 2021, and is entered into by and among:  (i) the Company (as defined below); (ii) (a) Hellman & Friedman Capital Partners VIII, L.P., a Cayman Islands exempted limited partnership (“HFCP VIII”), (b) Hellman & Friedman Capital Partners VIII (Parallel), L.P., a  Cayman Islands exempted limited partnership (“VIII Parallel”), (c) HFCP VIII (Parallel-A), L.P., a  Delaware limited partnership (“Parallel-A”), (d) Hellman & Friedman Executives VIII, L.P., a Cayman  Islands exempted limited partnership (“Executives VIII”), (e) H&F Associates VIII, L.P., a Cayman  Islands exempted limited partnership (“Associates VIII”) and (f) H&F Copper Holdings VIII, L.P., a  Delaware limited Partnership (“Copper VIII” and together with HFCP VIII, VIII Parallel, Parallel-A,  Executives VIII and Associates VIII, the “Initial H&F Stockholders”);   (iii) the Employee Stockholders (as defined below) that have executed and delivered a signature page to this Agreement or a Joinder Agreement (as defined below); and  (iv) any other Person (as defined below) who becomes a party hereto pursuant to Article VII.  WHEREAS, in accordance with the terms of the Unitholders Agreement (as defined  below) and the Partnership Agreement (as defined below), shares of Common Stock (as defined below)  will be distributed to the holders of outstanding interests in the Partnership (as defined below) and the  Partnership will subsequently be dissolved;  WHEREAS, the Company intends to consummate an Initial Public Offering (as defined  below) of shares of Common Stock and enter into the Underwriting Agreement (as defined below) in  connection therewith; and  WHEREAS, in connection with such events, the parties hereto desire to provide for  certain governance rights and other matters upon the effectiveness of this Agreement.  NOW, THEREFORE, in consideration of the mutual covenants and agreements  contained herein, the parties hereto mutually agree as follows:  ARTICLE I  DEFINITIONS  Section 1.1. Definitions.  As used in this Agreement, the following terms shall have  the meanings set forth below:  “Adverse Disclosure” means public disclosure of material non-public information which,  in the Board’s good faith judgment, after consultation with outside counsel to the Company, (i) would be  required to be made in any report or Registration Statement filed with the SEC by the Company so that  such report or Registration Statement would not be materially misleading; (ii) would not be required to be  

 

  2  made at such time but for the filing, effectiveness or continued use of such report or Registration  Statement; and (iii) the Company has a bona fide business purpose for not disclosing publicly.  “Affiliate” means, with respect to any Person, any other Person that controls, is  controlled by, or is under common control with such Person.  The term “control,” as used in this  definition, means the power to direct or cause the direction of the management and policies of such  Person, directly or indirectly, whether through the ownership of voting securities, by contract or  otherwise.  “Controlled” and “controlling” have meanings correlative to the foregoing.  Notwithstanding  the foregoing, (i) the Company, its Subsidiaries and its other controlled Affiliates shall not be considered  Affiliates of any Stockholder or any of such Stockholder’s Affiliates (other than the Company, its  Subsidiaries and its other controlled Affiliates) (and vice versa), and (ii) none of the H&F Stockholders  shall be considered Affiliates of any portfolio company in which the H&F Stockholders or any of their  investment fund Affiliates have made a debt or equity investment (and vice versa).  “Applicable Employee” means (i) with respect to any Employee Stockholder that is a  Service Provider, such Service Provider and (ii) with respect to any Employee Stockholder that is not a  Service Provider, the Service Provider with respect to whom such Employee Stockholder is (or is  permitted to be) a Permitted Assignee.   “Beneficial ownership” and “beneficially own” and similar terms have the meaning set  forth in Rule 13d-3 under the Exchange Act; provided, however, that (i) no Stockholder shall be deemed  to beneficially own any Securities held by any other Stockholder solely by virtue of the provisions of this  Agreement (other than this definition) and (ii) with respect to any Securities held by a Stockholder that  are exercisable for, convertible into or exchangeable for Shares upon delivery of consideration to the  Company or any of its Subsidiaries, such Shares shall not be deemed to be beneficially owned by such  Stockholder unless, until and to the extent such Securities have been exercised, converted or exchanged  and such consideration has been delivered by such Stockholder to the Company or such Subsidiary.  “Board” means the Board of Directors of the Company.    “Business Day” means any day, other than a Saturday, Sunday or one on which banks are  authorized by law to be closed in New York City, New York.  “Common Stock” means the Company’s common stock, par value $0.01 per share.  “Company” means Snap One Holdings Corp., a Delaware corporation (including any  successors or assigns thereof).  “Consent of Spouse” means a consent of spouse substantially in the form of Exhibit B  attached hereto or otherwise acceptable to the Company or the Board.  “Controlled Entity” means any other corporation, limited liability company, partnership,  joint venture, trust, employee benefit plan or other enterprise controlled by the Company.  “Covered Person” means (i) each Director, officer or liquidating trustee, in each case in  his, her or its capacity as such, (ii) any Person of which a Director is an officer, director, shareholder,  partner, member, employee, representative or agent, or (iii) any Affiliate, officer, director, manager,  trustee, shareholder, partner, member, beneficiary, representative or agent of any of the foregoing,  whether or not such Person continues to have the applicable status referred to in such clauses.  

 

  3  “Director” means an individual elected or appointed to, or otherwise serves on, the  Board.  “Employee Stockholder” means (i) each Stockholder that is a Service Provider for so  long as he or she holds Securities, (ii) any other individual who (a) holds Securities, (b) has become a  party to this Agreement pursuant to Article IX and (c) is a Service Provider at the time he or she becomes  a party to this Agreement and (iii) any Permitted Assignee of any of the Stockholders identified in the  immediately foregoing clauses (i) and (ii) that beneficially owns and holds of record, Securities.  “Employee Stockholders Approval” means the affirmative approval or consent of the  Employee Stockholders holding a majority of the outstanding Shares held by all Employee Stockholders.  “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to  time, and the rules and regulations promulgated pursuant thereto.  “FINRA” means the Financial Industry Regulatory Authority.  “H&F Stockholders” means the Initial H&F Stockholders that hold Securities and any of  their Affiliates or successors that hold Securities and have become parties to this Agreement pursuant to  Article IX.  “Initial Public Offering” means the consummation of the initial underwritten public  offering of Shares (or any other Securities) that is registered under the Securities Act.  “Joinder Agreement” means a joinder substantially in the form of Exhibit A attached  hereto or otherwise acceptable to the Company, the Board and the H&F Stockholders.  “Necessary Action” means, with respect to a specified result, all actions (to the extent  such actions are permitted by applicable law) necessary to cause such specified result, including (i) voting  or providing a written consent or proxy with respect to a Stockholder’s Shares (or any other voting  Securities, if any) whether at any annual or special meeting, by written consent or otherwise, (ii) causing  the adoption of stockholders’ resolutions and amendments to the certificate of incorporation, bylaws or  equivalent governing document, (iii) causing members of the Board (to the extent such members were  nominated or designated by the Person obligated to undertake the Necessary Action, and subject to any  fiduciary duties that such members may have as directors) to act in a certain manner or causing them to be  removed in the event they do not act in such a manner, (iv) executing agreements and instruments  necessary to achieve such specified result and (v) making, or causing to be made, with governmental,  administrative or regulatory authorities, all filings, registrations or similar actions that are required to  achieve such specified result.  “Non-H&F Stockholders” means each of the Stockholders other than the H&F  Stockholders.   “Partnership” means Crackle Holdings, L.P., a Delaware limited partnership.   “Partnership Agreement” means the Amended and Restated Limited Partnership  Agreement of the Partnership, dated as of August 4, 2017, as amended, restated, supplemented or  otherwise modified from time to time in accordance with its terms.   “Permitted Assignee” means:  

 

  4  (i) with respect to an Employee Stockholder, (x) the Applicable Employee with  respect to such Employee Stockholder and/or (y) a transferee by testamentary or intestate disposition or  any trust, limited partnership or other legal entity the beneficiary of which is one or more members of  the immediate family of the Applicable Employee with respect to such Employee Stockholder  (consisting of his or her spouse, ex-spouse, children, step-children, children-in-law, parents, step- parents or parents-in-law, including adoptive relationships, or their respective lineal descendants) and  which is controlled by such Applicable Employee (an entity shall be deemed to be controlled by an  Applicable Employee if such Applicable Employee has the power to direct the disposition and voting of  the Securities transferred to such trust or other legal entity); provided, however, that, during the period  that any such trust or other legal entity holds any right, title or interest in any Securities, no Person other  than such Applicable Employee or one or more of such Applicable Employee’s immediate family  members may be or may become beneficiaries, stockholders, limited or general partners or members  thereof;  (ii) in the case of any H&F Stockholder, any of its respective (x) Affiliates or (y)  partners, members or other investors of any H&F Stockholder that become parties to this Agreement in  connection with a distribution prior to or following an Initial Public Offering; and  (iii) with respect to any other Stockholder, an Affiliate of such Stockholder so long as  such Affiliate is either (x) wholly owned by such Stockholder or (y) directly or indirectly wholly owns  such Stockholder.  “Person” means an individual, any general partnership, limited partnership, limited  liability company, corporation, trust, business trust, joint stock company, joint venture, unincorporated  association, cooperative or association or any other legal entity or organization of whatever nature, and  shall include any successor (by merger or otherwise) of such entity.  “Registration Expenses” means any and all expenses incident to the performance by the  Company of its obligations under Article V or of a Registration or other Transfer, including (i) all SEC or  stock exchange registration and filing fees (including, if applicable, the fees and expenses of any  “qualified independent underwriter,” as such term is defined in Rule 5121 of FINRA (or any successor  provision), and of its counsel), (ii) all fees and expenses of complying with securities or “blue sky” laws  (including fees and disbursements of counsel for the underwriters in connection with “blue sky”  qualifications of the Registrable Securities), (iii) all printing, messenger and delivery expenses, (iv) all  fees and expenses incurred in connection with the listing of the Registrable Securities on any securities  exchange and all rating agency fees, (v) the fees and disbursements of counsel for the Company and of its  independent public accountants, including the expenses of any special audits and/or comfort letters  required by or incident to such performance and compliance, (vi) any fees and disbursements of  underwriters customarily paid by the issuers or sellers of securities, including liability insurance if the  Company so desires or if the underwriters so require, and the reasonable fees and expenses of any special  experts retained in connection with the requested registration, but excluding underwriting discounts and  commissions and transfer taxes, if any, (vii) the fees and out-of-pocket expenses of not more than one law  firm (as selected by the H&F Stockholders and/or the holders of a majority of the Registrable Securities  included in the applicable registration or other Transfer) incurred by all the Holders in connection with  the applicable registration or other Transfer, (viii) the costs and expenses of the Company relating to  analyst and investor presentations or any “road show” undertaken in connection with the registration  and/or marketing of the Registrable Securities (including the reasonable out-of-pocket expenses of the  Holders) and (ix) any other fees and disbursements customarily paid by the issuers of securities.  “SEC” means the U.S. Securities and Exchange Commission or any successor agency.  

 

  5  “SEC Restricted Securities” means all Securities other than (i) Securities, the offer and  sale of which have been registered under a registration statement pursuant to the Securities Act and sold  thereunder, (ii) Securities, with respect to which a sale or other disposition has been made in reliance on  and in accordance with Rule 144 (or any successor provision) under the Securities Act, or (iii) Securities,  with respect to which the holder thereof shall have delivered to the Company (a) an opinion of counsel in  form and substance reasonably satisfactory to the Company, delivered by counsel reasonably satisfactory  to the Company, (b) a “no action” letter from the SEC, or (c) such other evidence as may be reasonably  satisfactory to the Company, in each case to the effect that subsequent transfers of such Securities may be  effected without registration under the Securities Act.  “Securities” means, as of the relevant time of determination (without any double  counting), Shares and any other equity securities (and any securities convertible into or exercisable or  exchangeable for Shares or other equity securities) of the Company or any of its Subsidiaries.  “Securities Act” means the Securities Act of 1933, as amended from time to time, and the  rules and regulations promulgated pursuant thereto.  “Service Provider” means any officer, employee, director, consultant and/or other  individual service provider of the Company or its Subsidiaries.  “Share Equivalents” means, as of the relevant time of determination (without any double  counting), (i) Shares and (ii) Shares issuable upon exercise, conversion or exchange of any Security that is  currently exercisable for, convertible into or exchangeable for, as of any such date of determination,  Shares without payment to the Company of any additional consideration.  “Shares” means, as of the relevant time of determination (without any double counting),  any shares of Common Stock and any other equity securities of the Company received in respect of such  Common Stock in connection with any combination, recapitalization, merger, consolidation or other  reorganization or by way of stock split, combination or reclassification, stock dividend or other  distribution.  “Specified Stockholders” means each of the Stockholders set forth on Exhibit C attached  hereto and their respective Permitted Assignees that hold Securities from time to time.  “Stockholders” means each of the Persons specified in the preamble that hold Securities  and each additional Person who becomes a party to this Agreement pursuant to Article IX hereof as a  holder of Securities.  “Subsidiary” means, with respect to any Person, any entity of which (i) a majority of the  total voting power of shares of stock or equivalent ownership interests entitled (without regard to the  occurrence of any contingency) to vote in the election of directors, managers, trustees or other members  of the applicable governing body thereof is at the time owned or controlled, directly or indirectly, by that  Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (ii) if no such  governing body exists at such entity, a majority of the total voting power of shares of stock or equivalent  ownership interests of the entity is at the time owned or controlled, directly or indirectly, by that Person or  one or more Subsidiaries of that Person or a combination thereof.  For purposes hereof, a Person or  Persons shall be deemed to have a majority ownership interest in a limited liability company, partnership,  association or other business entity if such Person or Persons shall be allocated a majority of limited  liability company, partnership, association or other business entity gains or losses or shall be or control  the managing member or general partner of such limited liability company, partnership, association or  other business entity.  

 

  6  “Underwriting Agreement” means an underwriting agreement among the Company,  Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and the other investment banks party thereto  with respect to an underwritten initial Public Offering.   “Unitholders Agreement” means the Unitholders Agreement, dated as of August 4, 2017,  by and among the Partnership, Crackle Holdings GP, LLC as general partner and the other Persons from  time to time parties thereto, as may be amended, supplemented, restated or modified from time to time in  accordance with its terms.   Section 1.2. Definitions Cross References.  Automatic Shelf Registration Statement ................................................................................... Section 5.1(a)  Claims ....................................................................................................................................... Section 8.1(a)  Confidential Information .............................................................................................................. Section 3.2  Demand Delay ..................................................................................................................... Section 5.3(a)(ii)  Demand Period.......................................................................................................................... Section 5.3(c)  Demand Registration ................................................................................................................ Section 5.3(a)  Eligible Take-Down Holders ................................................................................................... Section 5.1(b)  H&F Initiating Holders ............................................................................................................. Section 5.1(c)  H&F Nominees ..................................................................................................................... Section 3.1(b)(i)  Holder ...................................................................................................................................... Section 5.1(d)  Indemnification Sources .......................................................................................................... Section 8.1(b)  Indemnified Party ...................................................................................................................... Section 5.7(c)  Indemnifying Party ................................................................................................................... Section 5.7(c)  Indemnitee................................................................................................................................. Section 8.1(a)  Indemnitee-Related Entities ..................................................................................................... Section 8.1(b)  Jointly Indemnifiable Claims ................................................................................................... Section 8.1(b)  Majority Shelf Holders ............................................................................................................ Section 5.2(b)  Marketed ................................................................................................................................... Section 5.1(e)  Marketed Underwritten Shelf Take-Down .......................................................................... Section 5.2(d)(ii)  Prospectus ................................................................................................................................. Section 5.1(f)  Registrable Securities ............................................................................................................... Section 5.1(h)  Registration Statement ............................................................................................................. Section 5.1(g)  Representatives ............................................................................................................................. Section 3.2  Restricted Shelf Take-Down ......................................................................................... Section 5.2(d)(iii)(A)  Restricted Shelf Take-Down Notice ............................................................................. Section 5.2(d)(iii)(A)  Restricted Take-Down Selling Holders ........................................................................ Section 5.2(d)(iii)(A)  Shelf Holder .............................................................................................................................. Section 5.2(a)  Shelf Registration Notice .......................................................................................................... Section 5.2(a)  Shelf Registration Statement ..................................................................................................... Section 5.1(i)  Shelf Suspension ....................................................................................................................... Section 5.2(c)  Shelf Take-Down Initiating Holder ...................................................................................... Section 5.2(d)(i)  Take-Down Participation Notice .................................................................................. Section 5.2(d)(iii)(B)  Take-Down Tagging Holders........................................................................................ Section 5.2(d)(iii)(A)  Third Party Holder ................................................................................................................... Section 5.1(k)  Third Party Shelf Holder ........................................................................................................... Section 5.2(a)  Transfer ..................................................................................................................................... Section 4.1(a)  Transfer Restriction Period ....................................................................................................... Section 4.3(a)  Underwritten Shelf Take-Down ...................................................................................... Section 5.2(d)(i)(A)  Underwritten Shelf Take-Down Notice .......................................................................... Section 5.2(d)(i)(A)  Well-Known Seasoned Issuer ................................................................................................... Section 5.1(l)  

 

  7  Section 1.3. General Interpretive Principles.  The name assigned to this Agreement  and the section captions used herein are for convenience of reference only and shall not be construed to  affect the meaning, construction or effect hereof.  Unless otherwise specified, the terms “hereof,” “herein”  and similar terms refer to this Agreement as a whole, and references herein to Articles or Sections refer to  Articles or Sections of this Agreement.  For purposes of this Agreement, the words, “include,” “includes”  and “including,” when used herein, shall not be limiting and shall be deemed in each case to be followed  by the words “without limitation.”  The terms “dollars” and “$” shall mean United States dollars.  The use  of “Affiliates” and “Subsidiaries” shall be deemed to be followed by the words “as such entities exist as  of the relevant date of determination.”  Any reference to “days” shall mean calendar days unless such  reference is to a “Business Day”.  The parties hereto have participated jointly in the negotiation and  drafting of this Agreement.  If an ambiguity or question of intent or interpretation arises, this Agreement  will be construed as if drafted jointly by the parties and no presumption or burden of proof will arise  favoring or disfavoring any party because of the authorship of any provision of this Agreement.    ARTICLE II    REPRESENTATIONS AND WARRANTIES  Section 2.1. Representations and Warranties of the Parties.  Each of the parties hereto  hereby represents and warrants to each of the other parties, as of the date hereof (and in respect of Persons  who become a party to this Agreement after the date hereof, such party hereby represents and warrants to  each of the other parties on the date of its, his or her execution of this Agreement or a Joinder Agreement)  as follows:  (a) Such party, to the extent applicable, is duly organized or incorporated, validly  existing and in good standing under the laws of the jurisdiction of its organization or incorporation and  has all requisite power and authority to conduct its business as it is now being conducted and is  proposed to be conducted.  (b) Such party has the full power, authority and legal right to execute, deliver and  perform this Agreement.  The execution, delivery and performance of this Agreement have been duly  authorized by all necessary action, corporate or otherwise, of such party.  This Agreement has been  duly executed and delivered by such party and constitutes its, his or her legal, valid and binding  obligation, enforceable against it, him or her in accordance with its terms, subject to applicable  bankruptcy, insolvency and similar laws affecting creditors’ rights generally.  (c) The execution and delivery by such party of this Agreement and the performance  by such party of its, his or her obligations hereunder by such party does not and will not violate (i) in  the case of parties who are not individuals, any provision of its by-laws, charter, articles of association,  partnership agreement or other similar document, (ii) any provision of any material agreement to which  it, he or she is a party or by which it, he or she is bound or (iii) any law, rule, regulation, judgment,  order or decree to which it, he or she is subject.  (d) No consent, waiver, approval, authorization, exemption, registration, license or  declaration is required to be made or obtained by such party in connection with the execution, delivery  or enforceability of this Agreement or the consummation of any of the transactions contemplated  herein.  (e) Such party is not currently in violation of any law, rule, regulation, judgment,  order or decree, which violation could reasonably be expected at any time to have a material adverse  

 

  8  effect upon such party’s ability to enter into this Agreement or to perform its, his or her obligations  hereunder.  (f) There is no pending legal action, suit or proceeding that would materially and  adversely affect the ability of such party to enter into this Agreement or to perform its, his or her  obligations hereunder.  (g) To the extent such party is an Employee Stockholder or a natural person, if such  Person is resident in a community property state, such Person’s spouse, if any, has duly executed, or  solely if consented to in advance by the Company, will duly execute, a Consent of Spouse, and such  Consent of Spouse was delivered as of the date of this Agreement, or, if later, the date such Person  became a party.  Such Consent of Spouse was or will be duly authorized, executed and delivered by  such spouse and effectively binds such spouse to the terms set forth therein.  ARTICLE III    GOVERNANCE  Section 3.1. Board of Directors.  (a) Board Size.  The size of the Board shall be determined in the manner set forth  from time to time in the Company’s certificate of incorporation or bylaws.  As of the date of this  Agreement, the initial size of the Board is eight Directors.    (b) Board Representation.    (i) Unless otherwise agreed in writing by the H&F Stockholders, to the  extent permitted by applicable law and the rules of the principal stock exchange or inter-dealer  quotation system on which the Shares are then traded or listed, the H&F Stockholders shall have  the right to nominate a number of individuals for election to the Board equal to the product of the  following (such individuals, the “H&F Nominees”):  (x) the percentage of the outstanding Share  Equivalents beneficially owned by the H&F Stockholders, taken together, multiplied by (y) the  number of Directors then on the Board, rounded up to the nearest whole number; provided, that  the H&F Stockholders shall have the right to nominate at least one H&F Nominee for so long as  the H&F Stockholders beneficially own, in the aggregate, at least two and one half percent (2.5%)  of the then outstanding Share Equivalents of the Company, except that such right set forth in this  proviso shall not apply with respect to any such election if the Board is divided into multiple  classes of Directors, an H&F Nominee has previously been elected to the Board and the term of  such H&F Nominee is not expiring concurrently with such election.  (ii) For so long as the H&F Stockholders have the right to nominate an H&F  Nominee for election pursuant to Section 3.1(b), in connection with each election of Directors,  the Company shall nominate each such H&F Nominee for election as a Director as part of the  slate that is included in the proxy statement (or consent solicitation or similar document) of the  Company relating to the election of Directors, and shall provide the highest level of support for  the election of each H&F Nominee as it provides to any other individual standing for election as a  Director of the Company as part of the Company’s slate of Directors.     (iii) In the event that an H&F Nominee shall cease to serve as a Director for  any reason (other than the failure of the stockholders of the Company to elect such individual as a  Director), the H&F Stockholders shall have the right to nominate another H&F Nominee to fill  

 

  9  the vacancy resulting therefrom. For the avoidance of doubt, it is understood that the failure of the  stockholders of the Company to elect any H&F Nominee shall not affect the right of the Persons  entitled to designate such H&F Nominee pursuant to Section 3.1(b)(i) to designate an H&F  Nominee for election pursuant to Section 3.1(b)(i) in connection with any future election of  Directors of the Company.  (iv) Each Non-H&F Stockholder hereby agrees with the Company to take all  Necessary Action to effect the appointment of each H&F Nominee nominated in accordance  herewith.  (v) Upon the classification of the Board into three (3) classes, the initial  H&F Nominees shall be Erik Ragatz, Jacob Best, and Annmarie Neal.  Upon the classification of  the Board into three (3) classes, the initial Class I Directors shall consist of Erik Ragatz, John  Heyman, and Martin Plaehn, the initial Class II Directors shall consist of Kenneth Wagers III,  Adalio Sanchez, and Annmarie Neal, and the initial Class III Directors shall consist of Jacob Best  and Amy Steel Vanden-Eykel.  Section 3.2. Sharing of Information.  To the extent permitted by antitrust, competition  or any other applicable Law, each of the Company and the H&F Stockholders agrees and acknowledges  that the Directors affiliated with or nominated by the H&F may share confidential, non-public  information about the Company and its subsidiaries (“Confidential Information”) with the H&F  Stockholders and their Affiliates and their respective employees, auditors, investors, partners, members,  creditors, advisors, counsel and other representatives (collectively, “Representatives”).  Each of the H&F  Stockholders recognizes that it, or its Representatives, has acquired or will acquire Confidential  Information the use or disclosure of which could cause the Company substantial loss and damages that  could not be readily calculated and for which no remedy at law would be adequate.  Accordingly, each of  the H&F Stockholders covenants and agrees with the Company that it will not (and will cause its  respective controlled affiliates and will instruct its Representatives not to) at any time, except with the  prior written consent of the Company, directly or indirectly, disclose any Confidential Information known  to it to any third party (other than the H&F Stockholders and their Representatives), unless (a) such  information becomes known to the public through no breach of this Section 3.2 by such party, (b)  disclosure is required by applicable law, regulation, legal or judicial process or requested by a regulatory,  self-regulatory or governmental entity or authority or bank examiner; provided, that (other than in the  case of any required filing following the date of this Agreement with the SEC or in connection with any  audit or examination as described below) the H&F Stockholders or such Representatives promptly notify  the Company of such requirement or request and takes commercially reasonable steps, at the sole cost and  expense of the Company, to minimize the extent of any such required disclosure, (c) such information  was available or becomes available to the H&F Stockholders or such Representatives before, on or after  the date of this Agreement, without restriction, from a source (other than the Company) without any  breach of duty to the Company or (d) such information was independently developed by such H&F  Stockholders or such Representatives without the use of the Confidential Information.  Notwithstanding  the foregoing, nothing in this Agreement shall prohibit any of the H&F Stockholders or their  Representatives from disclosing Confidential Information (x) to any actual or prospective investor,  limited partner, member or shareholder or private equity or other investment fund of an H&F Stockholder  or any of its Affiliates, provided, that such Person shall be bound by or subject to an obligation of  confidentiality with respect to such Confidential Information, (y) if such disclosure is made to a  governmental or regulatory entity or authority with jurisdiction over such party in connection with any  audit or examination that is not specifically directed at the Company or the Confidential Information,  provided, that such party shall request that confidential treatment be accorded to any information so  disclosed or (z) if such disclosure is reasonably required or advisable in connection with a tax audit  involving such Party or its affiliates.  No Confidential Information shall be deemed to be provided to any  

 

  10  Person, including any affiliate or representative of the H&F Stockholders, unless such Confidential  Information is actually provided to such Person.  ARTICLE IV    TRANSFER RESTRICTIONS  Section 4.1. General Restrictions on Transfers.  (a) Each Stockholder hereby agrees with the Company that such Stockholder shall  not, directly or indirectly, sell, exchange, assign, pledge, hypothecate, gift or otherwise transfer, dispose  of or encumber (all of which acts shall be deemed included in the term “Transfer” as used in this  Agreement) any Securities or any legal, economic or beneficial interest in any Securities (in each case,  whether held in its own right or by its representative and whether voluntary or involuntary or by  operation of law) unless (i) to the extent such Transfer constitutes a Transfer of Securities, such  Transfer of Securities is made on the books of the Company (or its transfer agent) and is not in violation  of the provisions of this Article IV and (ii) the transferee of such Securities (if other than (A) the  Company or any of its Subsidiaries, (B) a transferee in a sale of Securities made under Rule 144 under  the Securities Act after an Initial Public Offering, (C) a transferee of Securities pursuant to an offer and  sale registered under the Securities Act or pursuant to clause (vi) of Section 4.3(a) or (D) a partner,  member or other investor of any Stockholder that is a private equity fund that makes a distribution prior  to or following an Initial Public Offering) agrees to become a party to this Agreement pursuant to  Article VII hereof and executes such further documents as may be necessary, in the reasonable  judgment of the Company, to make him, her or it a party hereto, including, to the extent such transferee  is a resident in a community property state (including California), a Consent of Spouse, duly authorized,  executed and delivered by such transferee’s spouse, if any.  For the avoidance of doubt, it is understood  and agreed that solely with respect to the H&F Stockholders, a bona fide direct or indirect Transfer of  partnership interests in any private equity fund affiliated with, or managed by, Hellman & Friedman  LLC, or its Affiliates, as the case may be, or any Person that holds a direct or indirect interest in such  private equity fund, to another partner or to a third party, shall not constitute a Transfer for purposes of  this Agreement.  (b) Any purported Transfer of Securities or any interest in any Securities other than  in accordance with this Agreement by any Stockholder shall be null and void ab initio, and the  Company shall refuse to recognize any such Transfer for any purpose and shall not reflect in its records  any change in record ownership of Securities pursuant to any such Transfer.  (c) Each Stockholder acknowledges that the SEC Restricted Securities have not been  registered under the Securities Act and may not be transferred except pursuant to an effective  registration statement under the Securities Act or pursuant to an exemption from registration under the  Securities Act.  Each Stockholder agrees that it, he or she will not Transfer any SEC Restricted  Securities at any time if such action would constitute a violation of any securities laws of any applicable  jurisdiction or a breach of the conditions to any exemption from registration of SEC Restricted  Securities under any such laws or a breach of any undertaking or agreement of such Stockholder  entered into pursuant to such laws or in connection with obtaining an exemption thereunder.  Each  Stockholder agrees that any SEC Restricted Securities to be held by it, him or her that are represented  by certificates shall bear the restrictive legend set forth in Section 6.3.  (d) No Non-H&F Stockholder shall grant any proxy or enter into or agree to be  bound by any voting trust with respect to any Securities or enter into any agreements or arrangements  of either kind with any person with respect to any Securities inconsistent with the provisions of this  

 

  11  Agreement, including agreements or arrangements with respect to the acquisition, disposition or voting  (if applicable) of any Securities, nor shall any Non-H&F Stockholder act, for any reason, as a member  of a group or in concert with any other Persons in connection with the acquisition, disposition or voting  (if applicable) of any Securities in any manner which is inconsistent with the provisions of this  Agreement.  Section 4.2. Permitted Transfers.   (a) (i) Each Stockholder (other than an Employee Stockholder) may Transfer any or  all of the Securities held by it to any of its Permitted Assignees without complying with the provisions  of this Article IV, other than Section 4.1; provided, however, that, with respect to a Transfer to a  Permitted Assignee, (x) such Permitted Assignee shall have agreed with the Company, in a written  instrument reasonably satisfactory to the Company, that it will immediately convey record and  beneficial ownership of all Securities and all rights and obligations hereunder to such Stockholder or  another Permitted Assignee of such Stockholder prior to such time as it would cease to be a Permitted  Assignee of such Stockholder and (y) as a condition to such Transfer, such Permitted Assignee shall  become a party to this Agreement as provided in Section 4.1(a) and (ii) any Stockholder that is a private  equity fund may, subject to compliance with Section 5.13 distribute any or all of the Securities held by  it to its partners, members or other investors without complying with the provisions of this Article IV,  other than Section 4.1.  (b) Each Stockholder that is an Employee Stockholder may Transfer any or all of the  Securities held by him, her or it to a Permitted Assignee of such Employee Stockholder without  complying with the provisions of this Article IV other than Section 4.1; provided, that (i) such  Permitted Assignee shall have agreed with the Company, in a written instrument reasonably satisfactory  to the Company, that he, she or it will immediately convey record and beneficial ownership of all  Securities and all rights and obligations hereunder to such transferring Employee Stockholder or  another Permitted Assignee of such transferring Employee Stockholder if he, she or it ceases to be a  Permitted Assignee of such Employee Stockholder and (ii) as a condition to such Transfer, such  Permitted Assignee shall become a party to this Agreement as provided in Section 4.1.  Section 4.3. Transfer Restriction Period.    (a) During the period beginning on the date hereof and ending on (and, for the  avoidance of doubt, not including) (x) in the case of the Specified Stockholders, the twelve-(12) month  anniversary of an Initial Public Offering, and (y) in the case of all Stockholders other than the Specified  Stockholders and the H&F Stockholders, one hundred eighty (180) days after the effective date of a  Registration Statement of the Company filed in connection with an Initial Public Offering (such period,  the “Transfer Restriction Period”), each Stockholder (other than the H&F Stockholders) hereby agrees  with the Company that such Stockholder shall not Transfer any Securities to any Person, except, subject  to compliance with Section 4.1, Transfers:  (i) to the Company or any of its Affiliates or to any H&F Stockholder or any  of its Affiliates;  (ii) to a Permitted Assignee or as otherwise contemplated pursuant to and in  compliance with Section 4.2 (Permitted Transfers);  (iii) pursuant to and in compliance with Article V (Registration Rights);   (iv) pursuant to the Underwriting Agreement;  

 

  12  (v) by the Stockholders set forth on Exhibit D of a number of Shares in  connection with the Initial Public Offering not to exceed the number of Shares set forth  opposite such Stockholder’s name on Exhibit D;  (vi) by Employee Stockholders of Shares purchased or acquired by such  Employee Stockholders (A) pursuant to the Company’s directed share program in  connection with its Initial Public Offering or (B) following the consummation of the  Initial Public Offering, (I) pursuant to the Company’s 2021 Employee Stock Purchase  Plan or (II) in an “open market” transaction; and/or  (vii) with the prior written consent of the Company.  (b) If and to the extent any H&F Stockholder requests in connection with an actual  or potential Transfer of Securities by such H&F Stockholder, the Company shall, and shall cause its  Subsidiaries to, make members of the Company’s and its Subsidiaries’ management available to meet  with prospective transferees, provide for the reasonable inspection of the Company’s and its  Subsidiaries’ facilities and reasonable access to the Company’s and its Subsidiaries financial  information and other books and records by prospective transferees and otherwise cooperate in any  prospective transferee’s due diligence review of the Company and its Subsidiaries, including facilitating  the cooperation of the Company’s counsel and independent public accountants with any such due  diligence review, all pursuant to such potential transferee having entered into a customary  confidentiality agreement regarding all confidential information received in connection with such due  diligence review.  ARTICLE V    REGISTRATION RIGHTS  The Company hereby grants to each of the Holders (as defined below) the registration rights set  forth in this Article V, with respect to the Registrable Securities (as defined below) owned by such  Holders.  Section 5.1. Certain Definitions.  As used in this Article V:  (a) “Automatic Shelf Registration Statement” shall have the meaning set forth in  Rule 405 (or any successor provision) of the Securities Act.  (b) “Eligible Take-Down Holders” means any and all of the H&F Initiating Holders.  (c) “H&F Initiating Holders” means one or more H&F Stockholders or any assignee  to whom an H&F Stockholder has transferred rights pursuant to Section 5.9.  (d) “Holder” (collectively, “Holders”) means any Stockholder (and any transferee  pursuant to Section 5.9) holding Registrable Securities, securities exercisable or convertible into  Registrable Securities or securities exercisable for securities convertible into Registrable Securities.  (e) “Marketed” means the use or involvement of a customary “road show”  (including an “electronic road show”) or other substantial marketing effort by underwriters over a  period of at least 48 hours.  

 

  13  (f) “Prospectus” means the prospectus included in any Registration Statement, all  amendments and supplements to such prospectus, including post-effective amendments, and all other  material incorporated by reference in such prospectus.   (g) “register”, “registered” and “registration” means a registration effected pursuant  to a registration statement filed with the SEC (the “Registration Statement”) in compliance with the  Securities Act, and the declaration or ordering by the SEC of the effectiveness of such Registration  Statement.  (h) “Registrable Securities” means (i) Shares held (whether now held or hereafter  acquired) by a Stockholder or any transferee to the extent permitted by Section 5.9 or, without  duplication, by any holder of Securities of the Company that holds registration or similar rights  pursuant to an agreement between such holder of Securities and the Company and (ii) any Shares issued  as (or, as of any such date of determination, then currently issuable upon the conversion or exercise of  any warrant, right or other security that is issued as) a dividend or other distribution with respect to, or  in exchange or in replacement of, such Shares contemplated by the immediately foregoing clause (i);  provided, however, that Shares shall cease to be treated as Registrable Securities if (a) a Registration  Statement covering such securities has been declared effective by the SEC and such security has been  disposed of pursuant to such effective Registration Statement, (b) a Registration Statement on Form S-8  (or any successor form) covering such Shares is effective and the Transfer of such Share is no longer  subject to the restrictions on Transfer set forth in Section 4.3, (c) such Shares are sold pursuant to Rule  144 or 145 promulgated under the Securities Act (or another exemption from the registration  requirements of the Securities Act), (d) such Shares cease to be outstanding or (e) the Holder thereof,  together with his, her or its Permitted Assignees, beneficially owns (excluding any securities covered by  the foregoing clause (b)) less than one percent (1%) of the Shares that are outstanding at such time and  such Holder is able to dispose of all of its Registrable Securities in any ninety (90) day period pursuant  to Rule 144 or 145 (or any similar or analogous rule) promulgated under the Securities Act and the  Transfer of such Share is no longer subject to the restrictions on Transfer set forth in Section 4.3.  For  the avoidance of doubt, it is understood that, with respect to any Registrable Securities for which a  Holder holds Securities which are subject to one or more vesting criteria or conditions, such vesting  criteria or conditions must be satisfied for such Registrable Securities to be sold pursuant to this  Article V.  For the avoidance of doubt, it is understood that, with respect to any Registrable Securities  for which a Holder holds Securities exercisable for, convertible into or exchangeable for Registrable  Securities, to the extent that such Registrable Securities are to be sold pursuant to this Article V, such  Holder must exercise the relevant Security or exercise, convert or exchange such relevant Security and  transfer the relevant underlying securities that are Registrable Securities (in each case, net of any  amounts required to be withheld by the Company in connection with such exercise).  (i) “Shelf Registration Statement” means a Registration Statement of the Company  filed with the SEC on Form S-3 or on Form S-1 for an offering to be made on a continuous basis  pursuant to Rule 415 under the Securities Act (or any similar rule that may be adopted by the SEC)  covering the Registrable Securities, as applicable.  (j) “Shelf Take-Down” means any offering or sale of Registrable Securities initiated  by an H&F Initiating Holder pursuant to a Shelf Registration Statement.  (k) “Third Party Holder” means any holder (other than a Holder) of Shares who  exercises contractual rights to participate in a registered offering of Shares.  (l) “Well-Known Seasoned Issuer” shall have the meaning set forth in Rule 405 (or  any successor provision) of the Securities Act.  

 

  14  Section 5.2. Shelf Registration.  (a) Filing.  Upon the first Business Day of the thirteenth calendar month following  an Initial Public Offering or upon an earlier demand by the H&F Initiating Holders, subject to the  Company’s rights under Section 5.2(c) and the limitations set forth in Section 5.2(d), the Company shall  (i) promptly (but in any event no later than ten (10) days prior to the date such Shelf Registration  Statement is declared effective) give written notice (a “Shelf Registration Notice”) of the proposed  registration to all Holders and (ii) use its reasonable best efforts to file as soon as reasonably practicable  after such date with the SEC or as soon as possible following receipt of such demand from the H&F  Initiating Holders and to cause to become effective under the Securities Act a Shelf Registration  Statement (which Shelf Registration Statement shall be designated by the Company as an Automatic  Shelf Registration Statement if the Company is a Well-Known Seasoned Issuer at the time of filing  such Shelf Registration Statement with the SEC) as will permit or facilitate the sale and distribution of  all Registrable Securities held by any of the H&F Stockholders (or, if the H&F Stockholders determine  to not include all of their Registrable Securities therein, such lesser amount as such Holder shall request  to the Company in writing), together with (x) all or such portion of the Registrable Securities of any  Holder or Holders as are specified in a written request received by the Company within five (5) days  after such Shelf Registration Notice is given (each such Holder, and each H&F Stockholder, a “Shelf  Holder”) (such amount not in any event to exceed the total Registrable Securities held by such Shelf  Holder as of the date of such written notice) and (y) all or such portion of the Securities of any Third  Party Holder that the Company determines may register securities in such registration (each such Third  Party Holder, a “Third Party Shelf Holder”); provided, however, that, if the Company is permitted by  applicable law, rule or regulation to add selling securityholders to a Shelf Registration Statement  without filing a post-effective amendment, a Holder may request the inclusion of such Holder’s  Registrable Securities (such amount not in any event to exceed the total Registrable Securities held by  such Shelf Holder) in such Shelf Registration Statement at any time or from time to time, and the  Company shall add such Registrable Securities to the Shelf Registration Statement as promptly as  reasonably practicable, and such Holder shall be deemed a Shelf Holder. If, on the date of any demand  by the H&F Initiating Holders for the Company to file a Shelf Registration Statement, the Company  does not qualify to file a Shelf Registration Statement, then the provisions of Section 5.3 shall apply  instead of this Section 5.2. In no event shall the Company be required to file, and maintain effectiveness  pursuant to Section 5.2(b) of, more than one Shelf Registration Statement at any one time pursuant to  this Section 5.2.  (b) Continued Effectiveness.  Except as otherwise agreed by the H&F Initiating  Holders, the Company shall use its reasonable best efforts to keep such Shelf Registration Statement  filed pursuant to this Section 5.2 continuously effective under the Securities Act (including by filing  and having declared effective an additional Shelf Registration Statement if the then effective Shelf  Registration Statement is not permitted to be used pursuant to Rule 415(a)(5) under the Securities Act)  in order to permit the Prospectus forming a part thereof to be usable by the Shelf Holders until the  earlier of (i) the date as of which all Registrable Securities registered by such Shelf Registration  Statement have been sold and (ii) such shorter period as the Shelf Holders of a majority of the  Registrable Securities registered on such Shelf Registration Statement, which majority must include the  H&F Stockholders to the extent they are Shelf Holders owning Registrable Securities registered on such  Shelf Registration Statement (the “Majority Shelf Holders”) may determine.  (c) Suspension of Filing or Registration.  If the Company shall furnish to the  Majority Shelf Holders, a certificate signed by the Chief Executive Officer or equivalent senior  executive of the Company, stating that the filing, effectiveness or continued use of the Shelf  Registration Statement would require the Company to make an Adverse Disclosure, then the Company  shall have a period of not more than sixty (60) days or such longer period as the Majority Shelf Holders  

 

  15  shall consent to in writing, within which to delay the filing or effectiveness (but not the preparation) of  such Shelf Registration Statement or, in the case of a Shelf Registration Statement that has been  declared effective, to suspend the use by Shelf Holders of such Shelf Registration Statement (in each  case, a “Shelf Suspension”); provided, however, that, unless consented to in writing by the Majority  Shelf Holders, the Company shall not be permitted to exercise in any twelve (12) month period (i) more  than two (2) Shelf Suspensions pursuant to this Section 5.2(c) and Demand Delays pursuant to  Section 5.3(a)(ii) in the aggregate or (ii) aggregate Shelf Suspensions pursuant to this Section 5.2(c) and  Demand Delays pursuant to Section 5.3(a)(ii) of more than ninety (90) days. Each Shelf Holder shall  keep confidential the fact that a Shelf Suspension is in effect, the certificate referred to above and its  contents for the permitted duration of the Shelf Suspension or until otherwise notified by the Company,  except (A) for disclosure to such Shelf Holder’s employees, agents and professional advisers who need  to know such information and are obligated to keep it confidential, (B) for disclosures to the extent  required in order to comply with reporting obligations to its limited partners who have agreed to keep  such information confidential and (C) as required by law. In the case of a Shelf Suspension that occurs  after the effectiveness of the Shelf Registration Statement, the Shelf Holders agree to suspend use of the  applicable Prospectus for the permitted duration of such Shelf Suspension in connection with any sale  or purchase of, or offer to sell or purchase, Registrable Securities, upon receipt of the certificate  referred to above. The Company shall notify the Shelf Holders as soon as reasonably practicable upon  the termination of any Shelf Suspension, and (1) in the case of a Shelf Registration Statement that has  not been declared effective, shall promptly thereafter file the Shelf Registration Statement and use its  reasonable best efforts to have such Shelf Registration Statement declared effective under the Securities  Act and (2) in the case of an effective Shelf Registration Statement, shall amend or supplement the  Prospectus, if necessary, so it does not contain any material misstatement or omission prior to the  expiration of the Shelf Suspension and furnish to the Shelf Holders such numbers of copies of the  Prospectus as so amended or supplemented as the Shelf Holders may reasonably request. The Company  agrees, if necessary, to supplement or make amendments to the Shelf Registration Statement if required  by the registration form used by the Company for the Shelf Registration Statement or by the  instructions applicable to such registration form or by the Securities Act or the rules or regulations  promulgated thereunder or as may reasonably be requested by the Majority Shelf Holders.  (d) Shelf Take-Downs.  (i) Generally. Subject to the terms and provisions of this Article IV, a Shelf  Take-Down proposed to be initiated by an H&F Initiating Holder (the “Shelf Take-Down  Initiating Holder”) may or may not be underwritten and/or Marketed, in each case, as shall be  specified in the written demand delivered by the Shelf Take-Down Initiating Holder to the  Company pursuant to the provisions of this Section 5.2(d).  For the avoidance of doubt, only an  H&F Initiating Holder may initiate a Shelf Take-Down.  (A) Underwritten Shelf Take Downs.  A Shelf Take-Down Initiating  Holder (and not any other Shelf Holder) may elect in a written demand delivered to the  Company (an “Underwritten Shelf Take-Down Notice”) for any Shelf Take-Down that it  has initiated (including any Restricted Shelf Take-Down) to be in the form of an  underwritten offering (an “Underwritten Shelf Take-Down”), and the Company shall, if  so requested, file and effect an amendment or supplement of the Shelf Registration  Statement for such purpose as soon as practicable; provided, that any such Underwritten  Shelf Take-Down must comply with the minimum size requirements of a Demand  Registration set forth in Section 5.3(a). The applicable Shelf Take-Down Initiating  Holder shall have the right to select the underwriter or underwriters to administer such  Underwritten Shelf Take-Down; provided, that such underwriter or underwriters shall be  reasonably acceptable to the Company.  

 

  16  (B) With respect to any Underwritten Shelf Take-Down (including  any Marketed Underwritten Shelf Take-Down), in the event that a Shelf Holder otherwise  would be entitled to participate in such Underwritten Shelf Take-Down pursuant to  Section 5.2(d)(iii), the right of such Shelf Holder to participate in such Underwritten  Shelf Take-Down shall be conditioned upon such Shelf Holder’s participation in such  underwriting and the inclusion of such Shelf Holder’s Registrable Securities in the  underwriting to the extent provided herein. The Company shall, together with all Shelf  Holders and Third Party Shelf Holders of Registrable Securities of the Company  proposing to distribute their securities through such Underwritten Shelf Take-Down,  enter into an underwriting agreement in customary form with the underwriter or  underwriters selected in accordance with Section 5.2(d)(i)(A). Notwithstanding any other  provision of this Section 5.2, if the underwriter shall advise the Company that marketing  factors (including an adverse effect on the per security offering price) require a limitation  of the number of Registrable Securities to be underwritten in an Underwritten Shelf  Take-Down, then the Company shall so advise all Shelf Holders and Third Party Shelf  Holders of Registrable Securities that have requested to participate in such Underwritten  Shelf Take-Down, and the number of Registrable Securities that may be included in such  Underwritten Shelf Take-Down shall be allocated pro rata among such Shelf Holders and  Third Party Shelf Holders thereof in proportion, as nearly as practicable, to the respective  amounts of Registrable Securities held by such Shelf Holders and Third Party Shelf  Holders at the time of such Underwritten Shelf Take-Down; provided, that any  Registrable Securities thereby allocated to a Shelf Holder or Third Party Shelf Holder  that exceeds such Shelf Holder’s or Third Party Shelf Holder’s request shall be  reallocated among the remaining Shelf Holders and Third Party Shelf Holders in like  manner. No Registrable Securities excluded from an Underwritten Shelf Take-Down by  reason of the underwriter’s marketing limitation shall be included in such underwritten  offering.  (ii) Marketed Underwritten Shelf Take-Downs.  The Shelf Take-Down  Initiating Holder submitting an Underwritten Shelf Take-Down Notice shall indicate in such  notice that it delivers to the Company pursuant to Section 5.2(d)(i) whether it intends for such  Underwritten Shelf Take-Down to be Marketed (a “Marketed Underwritten Shelf Take-Down”);  provided, that any such Marketed Underwritten Shelf Take-Down shall be deemed to be, for  purposes of Section 5.3(a), a Demand Registration and must comply with the minimum size  requirements set forth therein. Upon receipt of an Underwritten Shelf Take-Down Notice  indicating that such Underwritten Shelf Take-Down will be a Marketed Underwritten Shelf Take- Down, the Company shall promptly (but in any event no later than ten (10) days prior to the  expected date of such Marketed Underwritten Shelf Take-Down) give written notice of such  Marketed Underwritten Shelf Take-Down to all other Shelf Holders of Registrable Securities  under such Shelf Registration Statement and any such Shelf Holders requesting inclusion in such  Marketed Underwritten Shelf Take-Down must respond in writing within five (5) days after the  receipt of such notice. Each such Shelf Holder that timely delivers any such request shall be  permitted to sell in such Marketed Underwritten Shelf Take-Down subject to the terms and  conditions of this Section 5.2(d).  (iii) Non-Marketed Underwritten Shelf Take-Downs.  (A) With respect to each Underwritten Shelf Take-Down initiated by  a Shelf Take-Down Initiating Holder that is not a Marketed Underwritten Shelf Take- Down (a “Restricted Shelf Take-Down”), the Shelf Take-Down Initiating Holder  initiating such Restricted Shelf Take-Down shall provide written notice (a “Restricted  

 

  17  Shelf Take-Down Notice”) of such Restricted Shelf Take-Down to the Company as far in  advance of the completion of such Restricted Shelf Take-Down as shall be reasonably  practicable in light of the circumstances applicable to such Restricted Shelf Take-Down  and the Company shall promptly distribute such Restricted Shelf Take-Down Notice to  all other Eligible Take-Down Holders, which Restricted Shelf Take-Down Notice shall  set forth (I) the total number of Registrable Securities expected to be offered and sold in  such Restricted Shelf Take-Down, (II) the expected plan of distribution of such  Restricted Shelf Take-Down, (III) an invitation to each Eligible Take-Down Holder to  elect (Eligible Take-Down Holders who make such an election being “Take-Down  Tagging Holders” and, together with the Shelf Take-Down Initiating Holders and all  other Persons (other than any Affiliates of the Shelf Take-Down Initiating Holders) who  otherwise are transferring, or have exercised a contractual or other right to transfer,  Registrable Securities in connection with such Restricted Shelf Take-Down, the  “Restricted Take-Down Selling Holders”) to include in the Restricted Shelf Take-Down  Registrable Securities held by such Take-Down Tagging Holder (but subject to  Section 5.2(d)(i)(B)) and (IV) the action or actions required (including the timing thereof)  in connection with such Restricted Shelf Take-Down with respect to each Eligible Take- Down Holder that elects to exercise such right (including the delivery of one or more  stock certificates representing Registrable Securities of such Eligible Take-Down Holder  to be sold in such Restricted Shelf Take-Down).  (B) Upon delivery of a Restricted Shelf Take-Down Notice, each  Eligible Take-Down Holder may elect to sell Registrable Securities in such Restricted  Shelf Take-Down, at the same price per Registrable Security and pursuant to the same  terms and conditions with respect to payment for the Registrable Securities as agreed to  by the Shelf Take-Down Initiating Holders, by sending an irrevocable written notice (a  “Take-Down Participation Notice”) to the Shelf Take-Down Initiating Holders and the  Company within the time period specified in such Restricted Shelf Take-Down Notice,  indicating its, his or her election to sell up to the number of Registrable Securities in the  Restricted Shelf Take-Down specified by such Eligible Take-Down Holder in such Take- Down Participation Notice (but, in all cases, subject to Section 5.2(d)(i)(B)). Following  the time period specified in such Restricted Shelf Take-Down Notice, each Take- Down  Tagging Holder that has delivered a Take-Down Participation Notice shall be permitted  to sell in such Restricted Shelf Take-Down on the terms and conditions set forth in the  Restricted Shelf Take-Down Notice, concurrently with the Shelf Take-Down Initiating  Holders and the other Restricted Take-Down Selling Holders, the number of Registrable  Securities calculated pursuant to Section 5.2(d)(i)(B). For the avoidance of doubt, it is  understood that in order to be entitled to exercise its, his or her right to sell Registrable  Securities in a Restricted Shelf Take-Down pursuant to this Section 5.2(d)(iii), each  Take-Down Tagging Holder must agree to make the same representations, warranties,  covenants, indemnities and agreements, if any, as the Shelf Take-Down Initiating Holders  agree to make in connection with the Restricted Shelf Take-Down, with such additions or  changes as are required of such Take-Down Tagging Holder by the underwriters. All  costs and expenses incurred by the Shelf Take-Down Initiating Holders in connection  with such Restricted Shelf Take-Down shall be borne on a pro rata basis in accordance  with the number of Registrable Securities being sold by each of the Restricted Take- Down Selling Holders.  (C) Notwithstanding the delivery of any Restricted Shelf Take-Down  Notice, all determinations as to whether to complete any Restricted Shelf Take-Down and  as to the timing, manner, price and other terms and conditions of any Restricted Shelf  

 

  18  Take-Down shall be at the sole discretion of the Shelf Take-Down Initiating Holders.  Each of the applicable Shelf Holders agrees to reasonably cooperate with each of the  other applicable Shelf Holders to establish notice, delivery and documentation procedures  and measures to facilitate such other applicable Shelf Holder’s participation in future  potential Restricted Shelf Take-Downs pursuant to this Section 5.2(d)(iii).  (D) Notwithstanding anything herein to the contrary, except as  otherwise agreed by the applicable Shelf Take-Down Initiating Holder that delivered a  Restricted Shelf Take-Down Notice to the Company pursuant to Section 5.2(d)(iii)(A),  no Shelf Holders other than the Eligible Take-Down Holders will have the right to  participate in any Restricted Shelf Take-Down.  Section 5.3. Demand Registration.  (a) Holders’ Demand for Registration.  If the Company shall receive from the H&F  Initiating Holders at any time a written demand that the Company effect any registration (a “Demand  Registration”) of Registrable Securities held by such Holders having a reasonably anticipated net  aggregate offering price (after deduction of underwriter commissions and offering expenses) of at least  the lesser of (x) $25,000,000 and (y) the value of all remaining Registrable Securities held by the H&F  Initiating Holders, the Company will:  (i) promptly (but in any event within ten (10) days prior to the date such  registration becomes effective under the Securities Act) give written notice of the proposed  registration to all other Holders; and   (ii) use its reasonable best efforts to effect such registration as soon as  practicable as will permit or facilitate the sale and distribution of all or such portion of such H&F  Initiating Holders’ Registrable Securities as are specified in such demand, together with all or  such portion of the Registrable Securities of any other Holders joining in such demand as are  specified in a written demand received by the Company within five (5) days after such written  notice is given; provided, that the Company shall not be obligated to file any Registration  Statement or other disclosure document pursuant to this Section 5.3 (but shall be obligated to  continue to prepare such Registration Statement or other disclosure document) if the Company  shall furnish to such Holders a certificate signed by the Chief Executive Officer or equivalent  senior executive of the Company, stating that the filing or effectiveness of such Registration  Statement would require the Company to make an Adverse Disclosure, in which case the  Company shall have an additional period (each, a “Demand Delay”) of not more than sixty (60)  days (or such longer period as may be agreed upon by the H&F Initiating Holders) within which  to file such Registration Statement; provided, however, that the Company shall not exercise, in  any twelve (12) month period, (x) more than two (2) Demand Delays pursuant to this  Section 5.3(a)(ii) and Shelf Suspensions pursuant to Section 5.2(c) in the aggregate or (y)  aggregate Demand Delays pursuant to this Section 5.3(a)(ii) and Shelf Suspensions pursuant to  Section 5.2(c) of more than ninety (90) days. Each Holder shall keep confidential the fact that a  Demand Delay is in effect, the certificate referred to above and its contents for the permitted  duration of the Demand Delay or until otherwise notified by the Company, except (A) for  disclosure to such Holder’s employees, agents and professional advisers who need to know such  information and are obligated to keep it confidential, (B) for disclosures to the extent required in  order to comply with reporting obligations to its limited partners who have agreed to keep such  information confidential and (C) as required by law.   

 

  19  (b) Underwriting.  If the H&F Initiating Holders intend to distribute the Registrable  Securities covered by their demand by means of an underwritten offering, they shall so advise the  Company as part of their demand made pursuant to this Section 5.3, and the Company shall include  such information in the written notice referred to in Section 5.3(a)(i). In such event, the right of any  Holder to registration pursuant to this Section 5.3 shall be conditioned upon such Holder’s participation  in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the  extent provided herein. The Company shall, together with all holders of Registrable Securities of the  Company proposing to distribute their securities through such underwriting, enter into an underwriting  agreement in customary form with the underwriter or underwriters selected by a majority-in-interest of  the H&F Initiating Holders and reasonably satisfactory to the Company. Notwithstanding any other  provision of this Section 5.3, if the underwriter shall advise the Company that marketing factors  (including an adverse effect on the per security offering price) require a limitation of the number of  Registrable Securities to be underwritten, then the Company shall so advise all Holders of Registrable  Securities that have requested to participate in such offering, and the number of Registrable Securities  that may be included in the registration and underwriting shall be allocated pro rata among such  Holders and other holders of Registrable Securities exercising a contractual or other right to dispose of  Registrable Securities in such underwriting thereof in proportion, as nearly as practicable, to the  respective amounts of Registrable Securities held by such persons at the time of filing the Registration  Statement; provided, that any Registrable Securities thereby allocated to any such person that exceed  such person’s request shall be reallocated among the remaining requesting Holders and other requesting  holders of Registrable Securities in like manner; and provided, further, that the number of Registrable  Securities to be included in such underwriting shall not be reduced unless all other Securities are first  entirely excluded from the underwriting. No Registrable Securities excluded from the underwriting by  reason of the underwriter’s marketing limitation shall be included in such registration. If the  underwriter has not limited the number of Registrable Securities to be underwritten, the Company may  include securities for its own account (or for the account of any other Persons) in such registration if the  underwriter so agrees and if the number of Registrable Securities would not thereby be limited.  (c) Effective Registration.  The Company shall be deemed to have effected a  Demand Registration if the Registration Statement pursuant to such registration is declared effective by  the SEC and remains effective for not less than one hundred eighty (180) days (or such shorter period as  will terminate when all Registrable Securities covered by such Registration Statement have been sold or  withdrawn), or, if such Registration Statement relates to an underwritten offering, such longer period as,  in the opinion of counsel for the underwriters, a prospectus is required by law to be delivered in  connection with sales of Registrable Securities by an underwriter or dealer (the applicable period, the  “Demand Period”). No Demand Registration shall be deemed to have been effected if (i) during the  Demand Period such registration is interfered with by any stop order, injunction or other order or  requirement of the SEC or other governmental agency or court or (ii) the conditions specified in the  underwriting agreement, if any, entered into in connection with such registration are not satisfied other  than by reason of a wrongful act, misrepresentation or breach of such applicable underwriting  agreement by a participating Holder.  Section 5.4. Piggyback Registration.  (a) If at any time or from time to time the Company shall determine to register any  of its equity securities, either for its own account or for the account of security holders (other than (1) in  a registration relating solely to employee benefit plans, (2) a Registration Statement on Form S-4 or S-8  (or such other similar successor forms then in effect under the Securities Act), (3) a registration  pursuant to which the Company is offering to exchange its own securities for other securities, (4) a  Registration Statement relating solely to dividend reinvestment or similar plans, (5) a Shelf Registration  Statement pursuant to which only the initial purchasers and subsequent transferees of debt securities or  

 

  20  preferred stock of the Company or any Subsidiary that are convertible into or exchangeable for  Securities and that are initially issued pursuant to Rule 144A and/or Regulation S (or any successor  provision) of the Securities Act may resell such notes or preferred stock and sell the Securities into  which such notes or preferred stock may be converted or exchanged or (6) a registration pursuant to  Section 5.2 or Section 5.3 hereof) the Company will:  (i) promptly (but in no event less than ten (10) days before the effective date  of the relevant Registration Statement) give to each Holder written notice thereof; and  (ii) include in such registration (and any related qualification under state  securities laws or other compliance), and in any underwriting involved therein, all the Registrable  Securities specified in a written request or requests made within five (5) days after receipt of such  written notice from the Company by any Holder or Holders, except as set forth in Section 5.3(b)  below.  Notwithstanding anything herein to the contrary, this Section 5.4 shall not apply (i) prior to the one-year  anniversary of an Initial Public Offering in respect of any Holder, unless (x) one or more of the H&F  Stockholders elect to participate in such registration or (y) the H&F Stockholders, in their sole discretion,  elect by written notice to the Company for this Section 5.4 to apply to the Registrable Securities of any  one or more other Holders specified in such notice and/or (ii) to any Shelf Take-Down irrespective of  whether such Shelf Take-Down is an Underwritten Shelf Take-Down or not an Underwritten Shelf Take- Down.  (b) Underwriting.  If the registration of which the Company gives notice is for a  registered public offering involving an underwriting, the Company shall so advise the Holders as a part  of the written notice given pursuant to Section 5.4(a)(i). In such event the right of any Holder to  registration pursuant to this Section 5.4 shall be conditioned upon such Holder’s participation in such  underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent  provided herein. All Holders proposing to dispose of their Registrable Securities through such  underwriting, together with the Company and the other parties distributing their securities through such  underwriting, shall enter into an underwriting agreement in customary form with the underwriter or  underwriters selected for such underwriting by the Company. Notwithstanding any other provision of  this Section 5.4, if the underwriters shall advise the Company that marketing factors (including, without  limitation, an adverse effect on the per security offering price) require a limitation of the number of  Registrable Securities to be underwritten, then the Company may limit the number of Registrable  Securities to be included in the registration and underwriting, subject to the terms of this Section 5.4.  The Company shall so advise all Holders of Registrable Securities that have requested to participate in  such offering, and the number of Registrable Securities that may be included in the registration and  underwriting shall be allocated in the following manner: first, to the Company and second, to the  Holders and other holders of Registrable Securities exercising a contractual or other right to dispose of  Registrable Securities in such underwriting on a pro rata basis based on the total number of Registrable  Securities held by such persons; provided, that any Registrable Securities thereby allocated to any such  person that exceed such person’s request shall be reallocated among the remaining requesting Holders  and other requesting holders of Registrable Securities in like manner. No such reduction shall (i) reduce  the Securities being offered by the Company for its own account to be included in the registration and  underwriting, or (ii) reduce the amount of securities of the selling Holders included in the registration  below twenty-five percent (25%) of the total amount of Securities included in such registration, unless  such offering does not include Securities of any other selling security holders, in which event any or all  of the Registrable Securities of the Holders may be excluded in accordance with the immediately  preceding sentence. No securities excluded from the underwriting by reason of the underwriter’s  marketing limitation shall be included in such registration. For the avoidance of doubt, nothing in this  

 

  21  Section 5.4(b) is intended to diminish the number of securities to be included by the Company in the  underwriting.  (c) Right to Terminate Registration.  The Company shall have the right to terminate  or withdraw any registration initiated by it under this Section 5.4 prior to the effectiveness of such  registration whether or not any Holder has elected to include securities in such registration.  Section 5.5. Expenses of Registration.  All Registration Expenses incurred in  connection with all registrations effected pursuant to Section 5.2, Section 5.3 or Section 5.4 or in  connection with any other Transfer by the H&F Stockholders shall be borne or reimbursed by the  Company; provided, however, that the Company shall not be required to pay stock transfer taxes,  underwriters’ discounts or selling commissions relating to Registrable Securities.  Section 5.6. Obligations of the Company.  Whenever required under this Article V to  effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably  possible:  (a) prepare and file with the SEC a Registration Statement with respect to such  Registrable Securities and use its reasonable best efforts to cause such Registration Statement to  become effective, and keep such Registration Statement effective for (i) the lesser of one hundred  eighty (180) days or until the Holder or Holders have completed the distribution relating thereto or (ii)  for such longer period as may be prescribed herein;  (b) prepare and file with the SEC such amendments and supplements to such  Registration Statement and the prospectus used in connection with such Registration Statement as may  be necessary to keep such Registration Statement effective and to comply with the provisions of the  Securities Act with respect to the disposition of all securities covered by such Registration Statement in  accordance with the intended methods of disposition by sellers thereof set forth in such Registration  Statement;  (c) permit any Holder that (in the good faith reasonable judgment of such Holder)  might be deemed to be a controlling person of the Company to participate in good faith in the  preparation of such Registration Statement and to cooperate in good faith to include therein material,  furnished to the Company in writing, that in the reasonable judgment of such Holder and its counsel  should be included;  (d) furnish to the Holders such numbers of copies of the Registration Statement and  the related Prospectus, including all exhibits thereto and documents incorporated by reference therein  and a preliminary prospectus, in conformity with the requirements of the Securities Act, and such other  documents as they may reasonably request in order to facilitate the disposition of Registrable Securities  owned by them;   (e) in the event of any underwritten public offering, enter into and perform its  obligations under an underwriting agreement, in usual and customary form, with the managing  underwriter(s) of such offering.  Each Holder participating in such underwriting shall also enter into and  perform its obligations under such an agreement;  (f) notify each Holder of Registrable Securities covered by such Registration  Statement as soon as reasonably possible after notice thereof is received by the Company of any written  comments by the SEC or any request by the SEC or any other federal or state governmental authority  

 

  22  for amendments or supplements to such Registration Statement or such prospectus or for additional  information;  (g) notify each Holder of Registrable Securities covered by such Registration  Statement, at any time when a prospectus relating thereto is required to be delivered under the  Securities Act, of the happening of any event as a result of which the prospectus included in such  Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state  a material fact required to be stated therein or necessary to make the statements therein not misleading  in the light of the circumstances then existing;  (h) notify each Holder of Registrable Securities covered by such Registration  Statement as soon as reasonably practicable after notice thereof is received by the Company of the  issuance by the SEC of any stop order suspending the effectiveness of such Registration Statement or  any order by the SEC or any other regulatory authority preventing or suspending the use of any  preliminary or final prospectus or the initiation or threatening of any proceedings for such purposes, or  any notification with respect to the suspension of the qualification of the Registrable Securities for  offering or sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose;  (i) use its reasonable best efforts to prevent the issuance of any stop order  suspending the effectiveness of any Registration Statement or of any order preventing or suspending the  use of any preliminary or final prospectus and, if any such order is issued, to obtain the withdrawal of  any such order as soon as practicable;  (j) make available for inspection by each Holder including Registrable Securities in  such registration, any underwriter participating in any distribution pursuant to such registration, and any  attorney, accountant or other agent retained by such Holder or underwriter, all financial and other  records, pertinent corporate documents and properties of the Company, as such parties may reasonably  request, and cause the Company’s officers, directors and employees to supply all information  reasonably requested by any such Holder, underwriter, attorney, accountant or agent in connection with  such Registration Statement;  (k) use its reasonable best efforts to register or qualify, and cooperate with the  Holders of Registrable Securities covered by such Registration Statement, the underwriters, if any, and  their respective counsel, in connection with the registration or qualification of such Registrable  Securities for offer and sale under the “Blue Sky” or securities laws of each state and other jurisdiction  of the United States as any such Holder or underwriters, if any, or their respective counsel reasonably  request in writing, and do any and all other things reasonably necessary or advisable to keep such  registration or qualification in effect for such period as required by Section 5.2(b) and Section 5.2(c), as  applicable; provided, that the Company shall not be required to qualify generally to do business in any  jurisdiction where it is not then so qualified or take any action which would subject it to taxation service  of process in any such jurisdiction where it is not then so subject;  (l) obtain for delivery to the Holders of Registrable Securities covered by such  Registration Statement and to the underwriters, if any, an opinion or opinions from counsel for the  Company, dated the effective date of the Registration Statement or, in the event of an underwritten  offering, the date of the closing under the underwriting agreement, in customary form, scope and  substance, which opinions shall be reasonably satisfactory to such holders or underwriters, as the case  may be, and their respective counsel;  (m) in the case of an underwritten offering, obtain for delivery to the Company and  the underwriters, with copies to the Holders of Registrable Securities included in such registration, a  

 

  23  cold comfort letter from the Company’s independent certified public accountants in customary form  and covering such matters of the type customarily covered by cold comfort letters as the managing  underwriter or underwriters reasonably request, dated the date of execution of the underwriting  agreement and brought down to the closing under the underwriting agreement;  (n) use its reasonable best efforts to list the Registrable Securities that are covered by  such Registration Statement with any securities exchange or automated quotation system on which the  Securities are then listed;  (o) provide and cause to be maintained a transfer agent and registrar for all  Registrable Securities covered by the applicable Registration Statement from and after a date not later  than the effective date of such Registration Statement;  (p) cooperate with Holders including Registrable Securities in such registration and  the managing underwriters, if any, to facilitate the timely preparation and delivery of certificates  representing Registrable Securities to be sold, such certificates to be in such denominations and  registered in such names as such Holders or the managing underwriters may request at least two (2)  Business Days prior to any sale of Registrable Securities;  (q) use its reasonable best efforts to comply with all applicable securities laws and  make available to its Holders, as soon as reasonably practicable, an earnings statement satisfying the  provisions of section 11(a) of the Securities Act and the rules and regulations promulgated thereunder;  and  (r) in the case of an underwritten offering, cause the senior executive officers of the  Company to participate in the customary “road show” presentations that may be reasonably requested  by the underwriters and otherwise to facilitate, cooperate with and participate in each proposed offering  contemplated herein and customary selling efforts related thereto.  Section 5.7. Indemnification.  (a) The Company will, and does hereby undertake to, indemnify and hold harmless  each Holder of Registrable Securities and each of such Holder’s officers, directors, trustees, employees,  partners, managers, members, equityholders, beneficiaries, affiliates and agents and each Person, if any,  who controls such Holder, within the meaning of either section 15 of the Securities Act or section 20 of  the Exchange Act, with respect to any registration, qualification, compliance or sale effected pursuant  to this Article IV, and each underwriter, if any, and each Person who controls any underwriter, of the  Registrable Securities held by or issuable to such Holder, against all claims, losses, damages and  liabilities (or actions in respect thereto) to which they may become subject under the Securities Act, the  Exchange Act, or other federal or state law arising out of or based on (i) any untrue statement (or  alleged untrue statement) of a material fact contained in any prospectus, offering circular, free writing  prospectus or other similar document (including any related Registration Statement, notification, or the  like) incident to any such registration, qualification, compliance or sale effected pursuant to this  Article IV, or based on any omission (or alleged omission) to state therein a material fact required to be  stated therein or necessary to make the statements therein not misleading in light of the circumstances  in which they were made, (ii) any violation or alleged violation by the Company of any federal, state or  common law rule or regulation applicable to the Company in connection with any such registration,  qualification, compliance or sale, or (iii) any failure to register or qualify Registrable Securities in any  state where the Company or its agents have affirmatively undertaken or agreed in writing (including  pursuant to Section 5.6(k)) that the Company (the undertaking of any underwriter being attributed to the  Company) will undertake such registration or qualification on behalf of the Holders of such Registrable  

 

  24  Securities (provided, that in such instance the Company shall not be so liable if it has undertaken its  reasonable best efforts to so register or qualify such Registrable Securities) and will reimburse, as  incurred, each such Holder, each such underwriter and each such director, officer, trustee, employee,  partner, manager, member, equityholder, beneficiary, affiliate, agent and controlling person, for any  legal and any other expenses reasonably incurred in connection with investigating or defending any  such claim, loss, damage, liability or action; provided, that the Company will not be liable in any such  case to the extent that any such claim, loss, damage, liability or expense arises out of or is based on any  untrue statement or omission made in reliance and in conformity with written information furnished to  the Company by such Holder or underwriter expressly for use therein.  (b) Each Holder (if Registrable Securities held by or issuable to such Holder are  included in such registration, qualification, compliance or sale pursuant to this Article IV) does hereby  undertake to indemnify and hold harmless, severally and not jointly, the Company, each of its officers,  directors, employees, equityholders, affiliates and agents and each Person, if any, who controls the  Company within the meaning of either section 15 of the Securities Act or section 20 of the Exchange  Act, each underwriter, if any, and each Person who controls any underwriter, of the Company’s  securities covered by such a Registration Statement, and each other Holder, each of such other Holder’s  officers, directors, employees, partners, equityholders, affiliates and agents and each Person, if any,  who controls such Holder within the meaning of either section 15 of the Securities Act or section 20 of  the Exchange Act, against all claims, losses, damages and liabilities (or actions in respect thereof)  arising out of or based on any untrue statement (or alleged untrue statement) of a material fact  contained in any such Registration Statement, prospectus, offering circular, free writing prospectus or  other document, or any omission (or alleged omission) to state therein a material fact required to be  stated therein or necessary to make the statements therein not misleading in light of the circumstances  in which they were made, and will reimburse, as incurred, the Company, each such underwriter, each  such other Holder, and each such officer, director, trustee, employee, partner, equityholder, beneficiary,  affiliate, agent and controlling person of the foregoing, for any legal or any other expenses reasonably  incurred in connection with investigating or defending any such claim, loss, damage, liability or action,  in each case to the extent, but only to the extent, that such untrue statement (or alleged untrue  statement) or omission (or alleged omission) was made in such Registration Statement, prospectus,  offering circular, free writing prospectus or other document, in reliance upon and in conformity with  written information furnished to the Company by such Holder expressly for use therein; provided,  however, that the aggregate liability of each Holder hereunder shall be limited to the gross proceeds  after underwriting discounts and commissions received by such Holder upon the sale of the Registrable  Securities giving rise to such indemnification obligation. It is understood and agreed that the  indemnification obligations of each Holder pursuant to any underwriting agreement entered into in  connection with any Registration Statement shall be limited to the obligations contained in this  Section 5.7(b).  (c) Each party entitled to indemnification under this Section 5.7 (the “Indemnified  Party”) shall give notice to the party required to provide such indemnification (the “Indemnifying  Party”) of any claim as to which indemnification may be sought promptly after such Indemnified Party  has actual knowledge thereof, and shall permit the Indemnifying Party to assume the defense of any  such claim or any litigation resulting therefrom; provided, that counsel for the Indemnifying Party, who  shall conduct the defense of such claim or litigation, shall be subject to approval by the Indemnified  Party (whose approval shall not be unreasonably withheld) and the Indemnified Party may participate in  such defense at the Indemnifying Party’s expense if representation of such Indemnified Party would be  inappropriate due to actual or potential differing interests between such Indemnified Party and any other  party represented by such counsel in such proceeding; and provided, further, that the failure of any  Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its  obligations under this Section 5.7, except to the extent that such failure to give notice materially  

 

  25  prejudices the Indemnifying Party in the defense of any such claim or any such litigation.  An  Indemnifying Party, in the defense of any such claim or litigation, may, without the consent of each  Indemnified Party, consent to entry of any judgment or enter into any settlement that (i) includes as a  term thereof the giving by the claimant or plaintiff therein to such Indemnified Party of an  unconditional release from all liability with respect to such claim or litigation and (ii) does not include  any recovery (including any statement as to or an admission of fault, culpability or a failure to act by or  on behalf of such Indemnified Party) other than monetary damages, and provided, that any sums  payable in connection with such settlement are paid in full by the Indemnifying Party.  (d) In order to provide for just and equitable contribution in case indemnification is  prohibited or limited by law, the Indemnifying Party, in lieu of indemnifying such Indemnified Party,  shall contribute to the amount paid or payable by such Indemnified Party as a result of such losses,  claims, damages or liabilities in such proportion as is appropriate to reflect the relative fault of the  Indemnifying Party and Indemnified Party in connection with the actions which resulted in such losses,  claims, damages or liabilities, as well as any other relevant equitable considerations.  The relative fault  of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other  things, whether any action in question, including any untrue or alleged untrue statement of material fact  or omission or alleged omission to state a material fact, has been made by, or relates to information  supplied by, such Indemnifying Party or Indemnified Party, and such party’s relative intent, knowledge,  access to information and opportunity to correct or prevent such actions; provided, however, that, in any  case, (i) no Holder will be required to contribute any amount in excess of the gross proceeds after  underwriting discounts and commissions received by such Holder upon the sale of the Registrable  Securities giving rise to such contribution obligation and (ii) no Person guilty of fraudulent  misrepresentation (within the meaning of section 11(f) of the Securities Act) will be entitled to  contribution from any Person who was not guilty of such fraudulent misrepresentation.  (e) The indemnities provided in this Section 5.7 shall survive the transfer of any  Registrable Securities by such Holder.  Section 5.8. Information by Holder.  The Holder or Holders of Registrable Securities  included in any registration shall furnish to the Company such information regarding such Holder or  Holders and the distribution proposed by such Holder or Holders as the Company may reasonably request  in writing and as shall be required in connection with any registration, qualification or compliance  referred to in this Article V.  Section 5.9. Transfer of Registration Rights.  The rights contained in Section 5.2,  Section 5.3 and Section 5.4 hereof to cause the Company to register the Registrable Securities may be  assigned or otherwise conveyed by a Holder pursuant to a Transfer permitted under Article IV.  Section 5.10. Delay of Registration.   No Holder shall have any right to obtain, and  hereby waives any right to seek, an injunction restraining or otherwise delaying any such registration as  the result of any controversy that might arise with respect to the interpretation or implementation of this  Article V.   Section 5.11. Limitations on Subsequent Registration Rights.  From and after the date  of this Agreement, the Company shall not, without the prior written consent of the H&F Stockholders,  enter into any agreement with any holder or prospective holder of any securities of the Company that  would allow such holder or prospective holder to (i) require the Company to effect a registration or (ii)  include any securities in any registration filed under Section 5.2, Section 5.3 and/or Section 5.4, unless, in  each case, under the terms of such agreement, such holder or prospective holder may include such  

 

  26  securities in any such registration only to the extent that the inclusion of such securities will not diminish  the amount of Registrable Securities that are included in such registration.   Section 5.12. Rule 144 Reporting.  With a view to making available to the Holders the  benefits of certain rules and regulations of the SEC that may permit the sale of the Registrable Securities  to the public without registration, the Company agrees to use its reasonable best efforts to:  (a) make and keep current public information available, within the meaning of Rule  144 (or any similar or analogous rule) promulgated under the Securities Act, at all times after it has  become subject to the reporting requirements of the Exchange Act;  (b) file with the SEC, in a timely manner, all reports and other documents required of  the Company under the Securities Act and Exchange Act (after it has become subject to such reporting  requirements); and  (c) so long as a Holder owns any Registrable Securities, furnish to such Holder  forthwith upon request a written statement by the Company as to its compliance with the reporting  requirements of Rule 144 under the Securities Act (at any time commencing ninety (90) days after the  effective date of the first registration filed by the Company for an offering of its securities to the general  public), the Securities Act and the Exchange Act (at any time after it has become subject to such  reporting requirements); a copy of the most recent annual or quarterly report of the Company; and such  other reports and documents as a Holder may reasonably request in availing itself of any rule or  regulation of the SEC allowing it to sell any such securities without registration.  Section 5.13. “Market Stand Off” Agreement.  Notwithstanding anything herein to the  contrary, the Company and each Holder hereby agrees, and the Company agrees to cause its directors and  executive officers to agree that, during the period beginning ten (10) days before the effective date of a  Registration Statement of the Company filed in connection with an Initial Public Offering, and ending not  more than one hundred eighty (180) days thereafter, with respect to any underwritten offering following  an Initial Public Offering (including any Underwritten Shelf Take-Down), (x) from and after the effective  date of a Registration Statement of the Company filed under the Securities Act in connection with such  underwritten offering or (y) in the case of an Underwritten Shelf Take-Down off of a Registration  Statement filed not in connection with such underwritten offering, during the period from and after the  date of the filing of, or after the date of effectiveness of, a preliminary prospectus or prospectus  supplement relating to such offering (or if there is no such filing, from and after the first contemporaneous  press release announcing commencement of such Underwritten Shelf Take-Down), and ending on such  date thereafter as the H&F Initiating Holder that has initiated such underwritten offering (in the case of  clause (x)) or such Underwritten Shelf Take-Down (in the case of clause (y)) may agree to with the  underwriter or underwriters of such underwritten offering (which period shall in no event exceed ninety  (90) days), it and its Affiliates shall not, to the extent requested by the Company and/or any underwriter,  sell, pledge, hypothecate, transfer, make any short sale of, loan, grant any option or right to purchase of,  or otherwise transfer or dispose of (other than to donees who agree to be similarly bound) any Securities  held by it at any time during such period, except Securities included in such registration. The Company  and each applicable Holder shall, and the Company agrees to cause its directors and executive officers to,  deliver to the underwriter or underwriters of any offering to which this Section 5.13 is applicable a  customary agreement reflecting its agreement set forth in this Section 5.13.  Section 5.14. Termination of Registration Rights.  The rights of any particular Holder  to cause the Company to register securities under Section 5.2, Section 5.3 or Section 5.4 shall terminate as  to such Holder on the date that such Holder, together with its Affiliates and Permitted Assignees,  beneficially owns (excluding any securities covered by clause (b) of the proviso set forth in the definition  

 

  27  of “Registrable Securities”) less than one percent (1%) of the Securities that are outstanding at such time  and such Holder is able to dispose of all of its Registrable Securities in any 90 day period pursuant to  Rule 144 or 145 (or any similar or analogous rule) promulgated under the Securities Act.  Section 5.15. Other Obligations.  In connection with a Transfer of Registrable  Securities exempt from Section 5 of the Securities Act or through any broker-dealer transactions  described in the plan of distribution set forth within a prospectus related to the Shelf Registration  Statement of which such prospectus forms a part, the Company shall, subject to applicable Law, as  interpreted by the Company with the advice of counsel, and the receipt of any customary documentation  required from the applicable Stockholders in connection therewith, (a) promptly instruct its transfer agent  to remove any restrictive legends applicable to the Registrable Securities being Transferred and (b) cause  its legal counsel to deliver the necessary legal opinions, if any, to the transfer agent in connection with the  instruction under clause (a). In addition, the Company shall cooperate reasonably with, and take such  customary actions as may reasonably be requested by the Stockholders, in connection with the  aforementioned Transfers.  ARTICLE VI    ADDITIONAL AGREEMENTS OF THE PARTIES  Section 6.1. Further Assurances.  From time to time, at the reasonable request of the  Company or the H&F Stockholders and without further consideration, each party hereto shall execute and  deliver such additional documents and take all such further action as may be necessary or appropriate to  consummate and make effective, in the most expeditious manner practicable, the transactions  contemplated by this Agreement.  Section 6.2. Other Businesses; Waiver of Certain Duties.  (a) The parties expressly acknowledge and agree that to the fullest extent permitted  by applicable law, each of the H&F Stockholders (including (x) their respective Affiliates, (y) any  portfolio company in which they or any of their respective Affiliates have made an investment and (z)  any of their respective limited partners, non-managing members or other similar direct or indirect  investors) and the directors of the Company or any of its Subsidiaries appointed by any of the H&F  Stockholders:   (i) have the right to, and shall have no duty (fiduciary, contractual or  otherwise) not to, directly or indirectly engage in and possess interests in other business ventures  of every type and description, including those engaged in the same or similar business activities  or lines of business as the Company or any of its Subsidiaries or deemed to be competing with the  Company or any of its Subsidiaries, on its own account, or in partnership with, or as an employee,  officer, director or shareholder of any other Person, with no obligation to offer to the Company or  any of its Subsidiaries or any Stockholder of the Company or any of its Subsidiaries the right to  participate therein;   (ii) may invest in, or provide services to, any Person that directly or  indirectly competes with the Company or any of its Subsidiaries; and   (iii) shall have no duty (fiduciary, contractual or otherwise) to communicate  or present any knowledge of a potential transaction or matter that may be a corporate or other  business opportunity for the Company or any of its Subsidiaries to the Company or any of its  Subsidiaries or any Stockholder of the Company or any of its Subsidiaries, and, notwithstanding  

 

  28  any provision of this Agreement to the contrary, shall not be liable to the Company or any of its  Subsidiaries or any Stockholder of the Company or any of its Subsidiaries (or their respective  Affiliates) for breach of any duty (fiduciary, contractual or otherwise) by reason of the fact that  such Person, directly or indirectly, pursues or acquires such opportunity for itself, directs such  opportunity to another Person or does not present such opportunity to the Company or any of its  Subsidiaries or any Stockholder of the Company or any of its Subsidiaries (or their respective  Affiliates).    For the avoidance of doubt, the parties acknowledge that this paragraph is intended to disclaim and  renounce, to the fullest extent permitted by applicable law, any right of the Company or any of its  Subsidiaries with respect to the matters set forth herein, and this paragraph shall be construed to effect  such disclaimer and renunciation to the fullest extent permitted by law.  (b) The provisions of this Section 6.2, to the extent that they restrict the duties and  liabilities of any of the H&F Stockholders or any director of the Company appointed by any of the H&F  Stockholders otherwise existing at law or in equity, are agreed by the parties hereto to replace such  other duties and liabilities of the H&F Stockholders or any such director of the Company appointed by  any of the H&F Stockholders to the fullest extent permitted by applicable law.  Section 6.3. Legends on Securities.  (a) Each certificate (or book entry share) evidencing Securities owned by a  Stockholder and which are subject to the terms of this Agreement shall bear (or be subject to in the case  of book entry shares) a legend substantially in the following form:  THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER  STATE SECURITIES LAWS.  THESE SECURITIES MAY NOT BE RESOLD OR  TRANSFERRED UNLESS REGISTERED OR EXEMPT FROM REGISTRATION UNDER  SUCH ACT AND APPLICABLE STATE SECURITIES LAWS.    IN ADDITION, THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT  TO THE TERMS OF A STOCKHOLDERS AGREEMENT, DATED AS OF JULY 27, 2021  (AS MAY BE AMENDED, RESTATED, MODIFIED OR SUPPLEMENTED FROM TIME TO  TIME), AND MAY NOT BE VOTED, SOLD, TRANSFERRED OR OTHERWISE DISPOSED  OF EXCEPT IN ACCORDANCE WITH SUCH AGREEMENT.  In the event that any such Securities shall cease to be SEC Restricted Securities and such Securities  shall continue to be represented by certificates (or be in book entry form), the Company shall, upon the  written request of the holder thereof, issue to such holder a new certificate (or book entry share)  representing such Securities without the first paragraph of the legend required by this Section 6.3.  In  the event that any Securities so represented by certificates (or in book entry form) shall cease to be  subject to the restrictions on transfer set forth in this Agreement and such Securities shall continue to be  represented by certificates (or be in book entry form), the Company shall, upon the request of the holder  thereof, issue to such holder a new certificate (or book entry share) representing such Securities without  the second paragraph of the legend required by this Section 6.3.  (b) To the extent any SEC Restricted Securities hereafter issued, whether upon  transfer or original issue, are to be represented by certificates (or in book entry form), all such SEC  Restricted Securities shall be endorsed with a like legend.  

 

  29  Section 6.4. Reimbursement.   (a) The Company, will, and will cause its Subsidiaries to, pay directly or reimburse,  or cause to be paid directly or reimbursed, the H&F Stockholders and each of their respective Affiliates  the actual and reasonable out-of-pocket costs and expenses incurred by the H&F Stockholders and their  respective Affiliates in connection with their investment in the Company, including (i) fees and actual  and reasonable out-of-pocket disbursements of any independent professionals and organizations,  including independent accountants, outside legal counsel or consultants retained by such H&F  Stockholders or any of their Affiliates, (ii) reasonable costs of any outside services or independent  contractors such as financial printers, couriers, business publications, on-line financial services or  similar services, retained or used by such H&F Stockholders or any of their respective Affiliates, (iii)  any actual and reasonable out-of-pocket costs and expenses incurred by the H&F Stockholders and their  Affiliates in connection with the provision of any personnel or services to the Company or its  Subsidiaries, and (iv) transportation, word processing expenses or any similar expense not associated  with their or their Affiliates’ ordinary operations.  (b) For the avoidance of doubt, no Stockholder or its Affiliates will receive any  monitoring, transaction or similar fee from the Company or any of its Subsidiaries.  (c) All payments or reimbursement for such expenses will be made by wire transfer  in same-day funds to the bank account designated by such H&F Stockholders or its relevant Affiliate  promptly upon or as soon as practicable following request for reimbursement.  (d) Directors shall be reimbursed by the Company or a Subsidiary of the Company  for all actual and reasonable out-of-pocket costs and expenses incurred by them in connection with their  service on the Board (including accommodation and travel costs (which in the case of air travel shall be  limited to travel by commercial airlines; provided, that if a director of the Board elects to travel by  private aircraft for a particular trip, the amount reimbursed shall not exceed the amount of a first-class  flight for an equivalent trip)).  In the case of a director who is also an employee of the Company or any  Subsidiary, the foregoing expense reimbursement shall not include any costs and expenses incurred by  such director with respect to entering into an employment, equity, award, grant or other arrangements  with the Company or any Subsidiary, except as otherwise agreed to in writing between the Company  (and approved in advance by the Board) and any such director.  In the case of any director who is a  partner or employee of any Affiliate of the H&F Stockholders, such reimbursement may be paid to any  of the H&F Stockholders or their Affiliate.  ARTICLE VII    ADDITIONAL PARTIES  Section 7.1. Additional Parties.  Additional parties may be added to and be bound by  and receive the benefits and be subject to the obligations provided by this Agreement upon the signing  and delivery of a counterpart of this Agreement or a Joinder Agreement (and, if applicable a Consent of  Spouse) to the Company and the acceptance thereof by such additional parties and, to the extent permitted  by Section 7.1, amendments may be effected to this Agreement reflecting such rights and obligations,  consistent with the terms of this Agreement, of such Stockholder as the Company and such Stockholder  may agree.  In the case of execution of a counterpart of this Agreement as opposed to a joinder hereto,  promptly after signing and delivering such a counterpart of this Agreement, the Company will deliver a  conformed copy thereof to all of the parties.  

 

  30  ARTICLE VIII    INDEMNIFICATION   Section 8.1. Indemnification.    (a) To the fullest extent permitted by law, the Company shall, and shall cause its  Controlled Entities to, indemnify and hold harmless each Covered Person and each former Covered  Person from and against any and all losses, claims, demands, liabilities, expenses, judgments, fines,  settlements and other amounts arising from any and all claims, demands, actions, suits or proceedings,  civil, criminal, administrative or investigative (collectively, “Claims”), by reason of the fact that he or  she, his or her testator or intestate is or was a director or officer of the Company, any of its Controlled  Entities or any of their respective predecessors or serves or served at any other enterprise as a director,  officer, partner, shareholder, member or manager at the request of the Company, any of its Controlled  Entities or any of their respective processors (an “Indemnitee”) and, upon request of such Indemnitee,  the Company shall, and shall cause its Controlled Entities to, advance expenses to such Indemnitee in  connection with any such Claim (subject to such Indemnitee providing an undertaking to repay such  advances if it is ultimately determined that such individual is not entitled to indemnification); provided,  that the foregoing indemnification shall not apply to (i) any Claim with respect to which a court of  competent jurisdiction has determined that such Indemnitee has engaged in fraud, willful misconduct,  bad faith or gross negligence, (ii) any Claim initiated by such Indemnitee unless such Claim (or part  thereof) (A) was brought to enforce such Indemnitee’s rights to indemnification hereunder or (B) was  authorized or consented to by the Board or (iii) any Claims from any transaction from which such  Indemnitee derived an improper personal benefit.   (b) The Company acknowledges and agrees that the Company shall, and to the  extent applicable shall cause its Controlled Entities to, be fully and primarily responsible for the  payment to the Indemnitee in respect of indemnified liabilities in connection with any Jointly  Indemnifiable Claims (as defined below), pursuant to and in accordance with (as applicable) the terms  of (i) in the case of the Company and any Controlled Entities that are Delaware corporations, the  Delaware General Corporation Law, as amended; in the case of any Controlled Entities that are  Delaware limited partnerships, the Delaware Revised Uniform Limited Partnership Act, as amended; in  the case of any Controlled Entities that are Delaware limited liability companies, the Delaware Limited  Liability Company Act, as amended, (ii) this Agreement and the certificate of incorporation and bylaws  of the Company, (iii) any director indemnification agreement, (iv) any other agreement between the  Company or any of its Controlled Entities and the Indemnitee pursuant to which the Indemnitee is  indemnified, (v) the laws of the jurisdiction of incorporation or organization of the Company or any  Controlled Entity and/or (vi) the certificate of incorporation, certificate of organization, bylaws,  partnership agreement, operating agreement, certificate of formation, certificate of limited partnership  or other organizational or governing documents of any Controlled Entity ((i) through (vi) collectively,  the “Indemnification Sources”), irrespective of any right of recovery the Indemnitee may have from any  corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other  enterprise (other than the Company, any Controlled Entity or the insurer under and pursuant to an  insurance policy of the Company or any Controlled Entity) from whom an Indemnitee may be entitled  to indemnification with respect to which, in whole or in part, the Company or any Controlled Entity  may also have an indemnification obligation (collectively, the “Indemnitee-Related Entities”).  Under  no circumstance shall the Company or any Controlled Entity be entitled to any right of subrogation or  contribution by the Indemnitee-Related Entities and no right of advancement or recovery the  Indemnitee may have from the Indemnitee-Related Entities shall reduce or otherwise alter the rights of  the Indemnitee or the obligations of the Company or any Controlled Entity under the Indemnification  Sources.  In the event that any of the Indemnitee-Related Entities shall make any payment to the  

 

  31  Indemnitee in respect of indemnification with respect to any Jointly Indemnifiable Claim, (x) the  Company shall, and to the extent applicable shall cause the Controlled Entities to, reimburse the  Indemnitee-Related Entity making such payment to the extent of such payment promptly upon written  demand from such Indemnitee-Related Entity, (y) to the extent not previously and fully reimbursed by  the Company and/or any Controlled Entity pursuant to clause (x), the Indemnitee-Related Entity  making such payment shall be subrogated to the extent of the outstanding balance of such payment to  all of the rights of recovery of the Indemnitee against the Company and/or any Controlled Entity, as  applicable, and (z) Indemnitee shall execute all papers reasonably required and shall do all things that  may be reasonably necessary to secure such rights, including the execution of such documents as may  be necessary to enable the Indemnitee-Related Entities effectively to bring suit to enforce such rights.   The Company and the Indemnitees agree that each of the Indemnitee-Related Entities shall be third- party beneficiaries with respect to this Section 8.1(b), entitled to enforce this Section 8.1(b) as though  each such Indemnitee-Related Entity were a party to this Agreement.  The Company shall cause each of  the Controlled Entities to perform the terms and obligations of this Section 8.1(b) as though each such  Controlled Entity was a party to this Agreement.  For purposes of this Section 8.1(b), the term “Jointly  Indemnifiable Claims” shall be broadly construed and shall include, without limitation, any indemnified  liabilities for which the Indemnitee shall be entitled to indemnification from both (1) the Company  and/or any Controlled Entity pursuant to the Indemnification Sources, on the one hand, and (2) any  Indemnitee-Related Entity pursuant to any other agreement between any Indemnitee-Related Entity and  the Indemnitee pursuant to which the Indemnitee is indemnified, the laws of the jurisdiction of  incorporation or organization of any Indemnitee-Related Entity and/or the certificate of incorporation,  certificate of organization, bylaws, partnership agreement, operating agreement, certificate of  formation, certificate of limited partnership or other organizational or governing documents of any  Indemnitee-Related Entity, on the other hand.  (c) Neither any amendment nor repeal of this Section 8.1, nor the adoption of any  provision of this Agreement inconsistent with this Section 8.1, shall eliminate or reduce the effect of  this Section 8.1 in respect of any matter occurring, or any action or proceeding accruing or arising or  that, but for this Section 8.1, would accrue or arise, prior to such amendment, repeal or adoption of an  inconsistent provision.  (d) The rights of any Indemnitee to indemnification pursuant to this Section 8.1 will  be in addition to any other rights any such Person may have under any other Section of this Agreement  or any other agreement or instrument to which such Indemnitee is or becomes a party or is or otherwise  becomes a beneficiary or under law or regulation or under the certificate of limited partnership, limited  partnership agreement, certificate of incorporation or bylaws (or equivalent governing documents) of  the Company or any of its Subsidiaries.  Section 8.2. Insurance.  The Company shall maintain in effect at all times directors’  and officers’ liability insurance reasonably satisfactory to the Board.  ARTICLE IX    MISCELLANEOUS  Section 9.1. Entire Agreement; Third Party Beneficiaries.  This Agreement (including  any exhibits hereto) and the other documents and agreements referred to herein and therein (including any  agreement pursuant to which any Security was granted or issued) constitute the entire understanding and  agreement among the parties hereto as to restrictions on the transferability of Securities and the other  matters covered herein and therein and supersedes and replaces any prior understanding, agreement or  statement of intent, in each case, written or oral, of any and every nature with respect thereto.  In the event  

 

  32  of any inconsistency between this Agreement and any document executed or delivered to effect the  purposes of this Agreement, this Agreement shall govern as among the parties hereto.  Except for  Section 8.1 and Article VII (which will also be for the benefit of the applicable Persons set forth therein  that are not parties to this Agreement, and any such Person will have the rights provided for therein), this  Agreement does not create any rights, claims or benefits inuring to any Person that is not a party hereto,  and it does not create or establish any third party beneficiary hereto.  Section 9.2. Specific Performance.  Subject to Section 5.10, the parties hereto agree  that the obligations imposed on them in this Agreement are special, unique and of an extraordinary  character, and that, in the event of breach by any party, damages would not be an adequate remedy and  each of the other parties shall be entitled to specific performance and injunctive and other equitable relief  in addition to any other remedy to which it may be entitled, at law or in equity.  The parties hereto further  agree to waive any requirement for the securing or posting of any bond in connection with the obtaining  of any such injunctive or other equitable relief.  Section 9.3. Governing Law.  This Agreement shall be governed by and construed in  accordance with the laws of the State of Delaware applicable to contracts entered into and performed  entirely within such State.  Section 9.4. Submission to Jurisdiction.   (a) Each of the parties hereto hereby irrevocably acknowledges and consents that  any legal action or proceeding brought with respect to any of the obligations arising under or relating to  this Agreement may be brought in the courts of the State of Delaware or in the United States District  Court for the District of Delaware and each of the parties hereto hereby irrevocably submits to and  accepts with regard to any such action or proceeding, for itself and in respect of its property, generally  and unconditionally, the exclusive jurisdiction of the aforesaid courts. Each party hereby further  irrevocably waives any claim that any such courts lack jurisdiction over such party, and agrees not to  plead or claim, in any legal action or proceeding with respect to this Agreement or the transactions  contemplated hereby brought in any of the aforesaid courts, that any such court lacks jurisdiction over  such party.  Each party irrevocably consents to the service of process in any such action or proceeding  by the mailing of copies thereof by registered or certified mail, postage prepaid, to such party, at its  address for notices as provided in Section 9.12 of this Agreement, such service to become effective ten  (10) days after such mailing. Each party hereby irrevocably waives any objection to such service of  process and further irrevocably waives and agrees not to plead or claim in any action or proceeding  commenced hereunder or under any other documents contemplated hereby that service of process was  in any way invalid or ineffective. Subject to Section 9.4(b), the foregoing shall not limit the rights of  any party to serve process in any other manner permitted by applicable law. The foregoing consents to  jurisdiction shall not constitute general consents to service of process in the State of Delaware for any  purpose except as provided above and shall not be deemed to confer rights on any Person other than the  respective parties to this Agreement.  (b) Each of the parties hereto hereby waives any right it may have under the laws of  any jurisdiction to commence by publication any legal action or proceeding with respect to this  Agreement. To the fullest extent permitted by applicable law, each of the parties hereto hereby  irrevocably waives the objection which it may now or hereafter have to the laying of the venue of any  suit, action or proceeding arising out of or relating to this Agreement in any of the courts referred to in  Section 9.4(a) and hereby further irrevocably waives and agrees not to plead or claim that any such  court is not a convenient forum for any such suit, action or proceeding.  

 

  33  (c) The parties hereto agree that any judgment obtained by any party hereto or its  successors or assigns in any action, suit or proceeding referred to above may, in the discretion of such  party (or its successors or assigns), be enforced in any jurisdiction, to the extent permitted by applicable  law.  Section 9.5. Obligations.  All obligations hereunder shall be satisfied in full without  set-off, defense or counterclaim.  Section 9.6. Consents, Approvals and Actions.  If any consent, approval or action of  the H&F Stockholders is required at any time pursuant to this Agreement, such consent, approval or  action shall be deemed given if the holders of a majority of the outstanding Shares held by the H&F  Stockholders at such time provide such consent, approval or action in writing at such time.  Section 9.7. Amendments.   (a) This Agreement may be amended, restated, modified or waived, in whole or in  part, at any time pursuant to an agreement in writing executed by the Company and the H&F  Stockholders; provided, that, subject to Section 9.7(b) below:  (i) any amendment, restatement, modification or waiver of this Agreement  shall also require the Employee Stockholders Approval if such amendment or  modification would materially and adversely affect the Employee Stockholders without  similarly and proportionately adversely affecting all Stockholders similarly situated;  provided, that the Employee Stockholders Approval shall not be required to amend or  modify any of the following sections unless such amendment or modification would  adversely affect the Employee Stockholders:  Section 4.2(b) or Section 4.3 (Restrictions  on Transfer), Article V (Registration Rights) or this Section 9.7 (Amendments) (in each  case including the definitions used therein);   (ii) no such amendment, restatement, modification or waiver requiring the  Employee Stockholders Approval pursuant to clause (i) shall be effective as to a  particular Employee Stockholder if such amendment or modification would materially  and adversely affect such Employee Stockholder without similarly and proportionately  adversely affecting all Employee Stockholders similarly situated, unless such Employee  Stockholder has voted in favor thereof;  (iii) in the event the H&F Stockholders no longer hold any Shares, this  Agreement may be amended, restated, modified or waived with the written consent of  (A) the Company and (B) the Stockholders holding a majority of the Shares held by the  Stockholders; and  (iv) notwithstanding anything herein to the contrary, including this  Section 9.7(a), any amendment, restatement, modification or waiver that has the effect of  adversely affecting the rights of the H&F Stockholders under Section 3.1 (Board of  Directors), Article V (Registration Rights), Section 6.2 (Other Businesses; Waiver of  Certain Duties), Section 6.4 (Reimbursement), Article VIII (Indemnification), Section 9.6  (Consents, Approvals and Actions), Section 9.11 (Termination; Effect of Termination),  Section 9.14 (Aggregation of Securities), Section 9.15 (No Third Party Liabilities),  Section 9.16 (Independent Nature of Stockholders’ Obligations and Rights), Section 9.19  (Logo) or this Section 9.7 (Amendments) shall, in each case, require the prior written  consent of the H&F Stockholders.  

 

  34  (b) Notwithstanding anything to the contrary in Section 9.7(a), in addition to other  amendments or modifications authorized herein, amendments or modifications may be made to this  Agreement from time to time by the Company and the H&F Stockholders without the consent of any  other Stockholder or group of Stockholders, (i) to correct typographical or ministerial errors, (ii) to add  or delete any provision of this Agreement required to be added or deleted in order to comply with, or  avoid a violation of, applicable law, (iii) in connection with the admission of any Person as an  additional Stockholder, to provide such Persons with (w) the right to nominate one or more directors to  the Board, (x) consent or other protective rights with respect to potential actions by the Company and/or  its Subsidiaries (and the grant of such rights to the H&F Stockholders) and (y) the pro rata right to  participate in (or be subject to or receive) the rights set forth in Article V and/or Section 9.7 of this  Agreement; (iv) to fix for any new class or series of Securities such voting powers, distinctive  designations, preferences and relative, participating, optional or other special rights and such  qualifications, limitations or restrictions thereof, as shall be stated and expressed in such amendment;  and (v) to cure any ambiguity or correct or supplement any provision of this Agreement that may be  incomplete or inconsistent with any other provision contained in this Agreement; provided, that such  amendment does not materially and adversely affect any Stockholder without similarly and  proportionately adversely affecting all Stockholders similarly situated, unless such Stockholder has  voted in favor thereof.  Section 9.8. Assignment of Rights by the H&F Stockholders.  Notwithstanding  anything in this Agreement to the contrary, the H&F Stockholders shall have the right to assign any or all  of their rights under this Agreement to any Person or Persons to whom an H&F Stockholder or transfers  Securities in compliance with Article IV.  Section 9.9. Subsequent Acquisition of Securities.  Any Securities acquired  subsequent to the date hereof by a Stockholder shall be subject to the terms and conditions of this  Agreement and such securities shall be considered to be “Shares”, “Securities” and/or “Share  Equivalents,” as applicable, as such terms are used herein for purposes of this Agreement.  Section 9.10. Binding Effect.  Except as otherwise expressly provided herein, the  provisions hereof shall inure to the benefit of, and be binding upon, the parties’ successors and permitted  assigns.  Section 9.11. Termination; Effect of Termination.  Subject to the last sentence of this  Section 9.11, the rights and obligations of a Stockholder shall automatically terminate without any further  action upon from and after such time as such Stockholder no longer owns Securities.  This Agreement  shall terminate automatically upon the earliest to occur of (i) such time that the H&F Stockholders  collectively no longer own any Securities, (ii) the written consent of the H&F Stockholders and the  holders of a majority of the issued and outstanding Securities held by the Non-H&F Stockholders and (iii)  the dissolution or liquidation of the Company.  This Article IX, Section 5.7, Section 6.2, Section 6.4 (until  all applicable fees, costs and/or expenses have been paid or reimbursed by the Company) and Article VIII  shall survive any termination of this Agreement, and any termination of rights and obligations of a  Stockholder, in each case pursuant to this Section 9.11.  Section 9.12. Notices.    (a) Any and all notices, consents, designations, offers, acceptances or other  communications required, or contemplated under, or otherwise provided for, herein shall be given in  writing unless otherwise specified herein, by personal delivery or email, or overnight delivery service,  which shall be addressed, in the case of the Company to the address set forth below, and, in the case of  any Stockholder, (x) to such Stockholder’s address appearing on the signature page of such Stockholder  

 

  35  to this Agreement or appearing in the Joinder Agreement entered into by such Stockholder, (y) to such  party’s address appearing in the books of the Company and/or (z) such other address as may be  designated by such party in writing to the Company.    If to the Company, to:  Snap One Holdings Corp.  1800 Continental Blvd, Suite 300  Charlotte, NC 28273  Attention: JD Ellis, Chief Legal Officer  Email: Legal@SnapOne.com  with a copy (which shall not constitute actual or constructive notice) to:  Simpson Thacher & Bartlett LLP  2475 Hanover Street  Palo Alto, California 94304  Attn:  William B. Brentani   Atif I. Azher  Email: wbrentani@stblaw.com     aazher@stblaw.com  (b) Any demand, notice or other communication given by personal delivery shall be  conclusively deemed to have been given on the day of actual delivery thereof (with confirmation of  receipt), and, if given by email, subject to receipt of non-automated confirmation of receipt, on the day  of transmittal thereof if given during the normal business hours of the recipient, and on the Business  Day during which such normal business hours next occur if not given during such hours on any day,  and one (1) Business Day after sending if by overnight delivery service.    (c) Each party shall have the right to change its address set forth in the books and  records maintained by the Company by delivering notice complying with the foregoing provisions of  this Section 9.12 to the Company.  Section 9.13. Severability.  If any portion of this Agreement shall be declared void or  unenforceable by any court or administrative body of competent jurisdiction, such portion shall be  deemed severable from the remainder of this Agreement, which shall continue in all respects valid and  enforceable.  Section 9.14. Aggregation of Securities.  All Securities beneficially owned by the H&F  Stockholders shall be aggregated together for purposes of determining the rights or obligations of any  member of the H&F Stockholders or the application of any restrictions to any member of H&F  Stockholders under this Agreement in each instance in which such right, obligation or restriction is  determined by any ownership threshold.  Section 9.15. No Third Party Liabilities.  This Agreement may only be enforced  against the named parties hereto.  All claims or causes of action (whether in contract or tort) that may be  based upon, arise out of or relate to any of this Agreement, or the negotiation, execution or performance  of this Agreement (including any representation or warranty made in or in connection with this  Agreement or as an inducement to enter into this Agreement), may be made only against the entities that  are expressly identified as parties hereto, as applicable; and no past, present or future director, officer,  employee, incorporator, member, partner, stockholder, Affiliate, portfolio company in which any such  

 

  36  party or any of its investment fund Affiliates have made a debt or equity investment (and vice versa),  agent, attorney or representative of any party hereto (including any Person negotiating or executing this  Agreement on behalf of a party hereto), unless a party to this Agreement, shall have any liability or  obligation with respect to this Agreement or with respect any claim or cause of action (whether in  contract or tort) that may arise out of or relate to this Agreement, or the negotiation, execution or  performance of this Agreement (including a representation or warranty made in or in connection with this  Agreement or as an inducement to enter into this Agreement).  Section 9.16. Independent Nature of Stockholders’ Obligations and Rights.  Each  Stockholder and the Company agrees that the arrangements contemplated by this Agreement are not  intended to constitute the formation of a “group” (as defined in section 13(d)(3) of the Exchange Act).   Each Stockholder agrees that, for purposes of determining beneficial ownership of such Stockholder, it  shall disclaim any beneficial ownership by virtue of this Agreement of the Shares owned by the other  Stockholders (other than, in the case of the H&F Stockholders, as amongst the Stockholders within such  defined group), and the Company agrees to recognize any such disclaimer in its Exchange Act and  Securities Act reports.  The obligations of each Stockholder under this Agreement are several and not  joint with the obligations of any other Stockholder, and no Stockholder shall be responsible in any way  for the performance of the obligations of any other Stockholder under this Agreement.  Nothing contained  herein, and no action taken by any Stockholder pursuant hereto, shall be deemed to constitute the  Stockholders as, and the Company acknowledges that the Stockholders do not so constitute, a partnership,  an association, a joint venture or any other kind of group or entity, or create a presumption that the  Stockholders are in any way acting in concert or as a group or entity with respect to such obligations or  the transactions contemplated by this Agreement and the Company acknowledges that the Stockholders  are not acting in concert or as a group, and the Company shall not assert any such claim, in each case,  with respect to such obligations or the transactions contemplated by this Agreement. The decision of each  Stockholder to enter into this Agreement has been made by such Stockholder independently of any other  Stockholder. Each Stockholder acknowledges that no other Stockholder has acted as agent for such  Stockholder in connection with such Stockholder making its investment in the Company and that no other  Stockholder will be acting as agent of such Stockholder in connection with monitoring such  Stockholder’s investment in the Shares or enforcing its rights under this Agreement. The Company and  each Stockholder confirms that each Stockholder has had the opportunity to independently participate  with the Company and its subsidiaries in the negotiation of the transaction contemplated hereby with the  advice of its own counsel and advisors.  Each Stockholder shall be entitled to independently protect and  enforce its rights, including, without limitation, the rights arising out of this Agreement, and it shall not be  necessary for any other Stockholder to be joined as an additional party in any proceeding for such  purpose. The use of a single agreement to effectuate the rights and obligations contemplated hereby was  solely in the control of the Company, not the action or decision of any Stockholder, and was done solely  for the convenience of the Company and its subsidiaries and not because the Company was required to do  so by any Stockholder. It is expressly understood and agreed that each provision contained in this  Agreement is between the Company and a Stockholder, solely, and not between the Company and the  Stockholders collectively and not between and among the Stockholders.  Section 9.17. Effectiveness.  This Agreement shall become effective on the day  immediately preceding the date on which a registration statement on Form 8-A, or any successor form  thereto, with respect to the Common Stock first becomes effective under the Exchange Act.  This  Agreement shall automatically terminate if the Underwriting Agreement is terminated prior to the  completion of the Initial Public Offering referenced therein for any reason or the Initial Public Offering  contemplated by the Underwriting Agreement is not consummated on or before the tenth (10th) Business  Day following the date of this Agreement.  

 

  37  Section 9.18. Counterparts; Electronic Delivery.  This Agreement and any other  notices and other documents delivered pursuant to this Agreement may be executed and delivered in one  or more counterparts and by fax, email or other electronic transmission, each of which shall be deemed an  original and all of which shall be considered one and the same agreement. No party hereto shall raise the  use of a fax machine or email to deliver a signature or the fact that any signature or agreement or  instrument was transmitted or communicated through the use of a fax machine or email as a defense to the  formation or enforceability of a contract and each party to this Agreement forever waives any such  defense. The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating  to this Agreement or any document to be signed in connection with this Agreement shall be deemed to  include electronic signatures, deliveries or the keeping of records in electronic form, each of which shall  be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery  thereof or the use of a paper-based recordkeeping system, as the case may be, and the parties hereto  consent to conduct the transactions contemplated hereunder by electronic means.  Section 9.19. Logo.  The Company hereby irrevocably consents to the use of its and its  Subsidiaries’ trademarks (including logos, as well as trade names) by each of the H&F Stockholders in  relation to its investment business, including in reports to investors and potential investors, on its website  or other online fora or media, and/or in offering memoranda and other marketing materials for its related  investment funds or Affiliates.    Section 9.20. Waiver of Jury Trial.  TO THE EXTENT NOT PROHIBITED BY  APPLICABLE LAW THAT CANNOT BE WAIVED, EACH PARTY HEREBY IRREVOCABLY  WAIVES, AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF,  DEFENDANT OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT  OF ANY ISSUE, CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING IN WHOLE OR  IN PART UNDER, RELATED TO, BASED ON OR IN CONNECTION WITH THIS AGREEMENT  OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY OR THE  SUBJECT MATTER HEREOF, WHETHER NOW EXISTING OR HEREAFTER ARISING AND  WHETHER SOUNDING IN TORT OR CONTRACT OR OTHERWISE.  ANY PARTY HERETO  MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 9.20 WITH ANY  COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER  OF ITS RIGHT TO TRIAL BY JURY.  Section 9.21. Reinstatement of Terms of Unitholders Agreement.  The parties hereto  hereby agree that in the event this Agreement becomes effective but is subsequently terminated pursuant  to Section 9.17, the parties shall execute a stockholders agreement with terms that are substantially  equivalent (to the extent practicable) to, mutatis mutandis, the terms of the Unitholders Agreement.     [Remainder of page intentionally left blank]  

 

[Signature Page to Stockholders Agreement]  IN WITNESS WHEREOF, each of the undersigned has executed this Agreement or caused  this Agreement to be signed by its officer thereunto duly authorized as of the date first written above.  COMPANY:  SNAP ONE HOLDINGS CORP.  By: ______________________________  Name: JD Ellis   Title: Chief Legal Officer  

 

[Signature Page to Stockholders Agreement]  IN WITNESS WHEREOF, each of the undersigned has executed this Agreement or  caused this Agreement to be signed by its officer thereunto duly authorized as of the date first written  above.  INITIAL H&F STOCKHOLDERS:  HELLMAN & FRIEDMAN CAPITAL PARTNERS  VIII, L.P.  By:  HELLMAN & FRIEDMAN INVESTORS VIII,  L.P., its general partner  By:  H&F CORPORATE INVESTORS VIII, LTD., its  general partner  By: ______________________________  Name: Erik Ragatz  Title: Vice President   HELLMAN & FRIEDMAN CAPITAL PARTNERS  VIII (PARALLEL), L.P.  By:  HELLMAN & FRIEDMAN INVESTORS VIII,  L.P., its general partner  By:  H&F CORPORATE INVESTORS VIII, LTD., its  general partner  By: _______________________________________  Name: Erik Ragatz  Title: Vice President  

 

IN WITNESS WHEREOF, each of the undersigned has executed this Agreement or  caused this Agreement to be signed by its officer thereunto duly authorized as of the date first written  above.  [ADDITIONAL SIGNATURES TO COME]  By: [Employee Stockholder] Name:  Title:  Address  Email  

 

Exhibit A  JOINDER AGREEMENT  The undersigned is executing and delivering this omnibus joinder agreement (this “Joinder  Agreement”) pursuant to the Stockholders Agreement of Snap One Holdings Corp., a Delaware  corporation, dated as of _______, 2021 (as may be amended, supplemented, restated or modified from  time to time in accordance with its terms, the “Stockholders Agreement”).  Capitalized terms used but not  defined in this Joinder Agreement shall have the respective meanings ascribed to them in the  Stockholders Agreement.  By executing and delivering this Joinder Agreement, the undersigned hereby adopts and approves  the Stockholders Agreement and agrees, effective commencing on the date on which the undersigned first  becomes the owner of any Shares, to become a party to, to be bound by, to comply with, and that his, her  or its Shares are subject to the Stockholders Agreement in the same manner as if the undersigned were an  original signatory to such agreement as a Stockholder.  The undersigned expressly acknowledges and agrees that the undersigned shall not be entitled to  any rights pursuant to the Stockholders Agreement unless the undersigned shall have executed and  delivered this Joinder Agreement.  Accordingly, the undersigned has executed and delivered this Joinder Agreement as of the __ day  of ____________, 202_.  Signature  Print Name  Address  Email  [Employee Stockholder] 

 

Exhibit B  CONSENT OF SPOUSE  I, _________________, the undersigned spouse of _________________, hereby  acknowledge that I am aware that the Stockholders Agreement of Snap One Holdings Corp., a Delaware  corporation, dated as of July 27, 2021 (as may be amended, supplemented, restated or modified from time  to time in accordance with its terms, the “Stockholders Agreement”), imposes certain transfer obligations  and restrictions on my spouses’ Shares (as defined in the Stockholders Agreement).  I agree that my  spouse’s interest in the Shares are subject to the Stockholders Agreement and any interest I may have in  such Shares shall also be irrevocably bound by such Stockholders Agreement and, further, that my  community property interest in such Stockholders Agreement, if any, shall be similarly bound by such  Stockholders Agreement.  I am aware that the legal, financial and other matters contained in the Stockholders  Agreement are complex and I am encouraged to seek advice with respect thereto from independent legal  and/or financial counsel.  I have either sought such advice or determined after carefully reviewing the  Stockholders Agreement that I hereby waive such right.   Acknowledged and agreed this ___ day of _____, 202_  Insert Signature of Spouse Above  Provide Address of Spouse Below:  Telephone:  Email:   

 

Exhibit C  SPECIFIED STOCKHOLDERS  David Moore  Galen Paul Hess Jr.  Jeff Dungan  Jeff Hindman  John Heyman  Joshua Ellis  Michael Carlet  Ryan Marsh  Kathleen Creech  

 

Exhibit D  SPECIFIED MANAGEMENT STOCKHOLDERS  Management Stockholder No. of Shares  John Heyman 46,820  Michael Carlet 21,085  Jeffrey Hindman 21,085  Galen Paul Hess 14,989

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