Document:

EX-4.5

 Exhibit 4.5 

SECOND AMENDED AND RESTATED STOCKHOLDERS AGREEMENT 

by and among 
 PARTY CITY HOLDCO
INC., 
 THL PC TOPCO, L.P. 
 and

 THE OTHER STOCKHOLDERS THAT ARE SIGNATORIES HERETO 

Dated as of March 12, 2018 

 TABLE OF CONTENTS 

 

							
	 Section 1.
	 	 Definitions
	  	 	1	 
			
	 1.1.
	 	 Definitions
	  	 	1	 
			
	 1.2.
	 	 General Interpretive Principles
	  	 	6	 
			
	 Section 2.
	 	 Methodology for Calculations
	  	 	6	 
			
	 Section 3.
	 	 Corporate Governance
	  	 	7	 
			
	 3.1.
	 	 Board of Directors
	  	 	7	 
			
	 3.2.
	 	 Expenses and Indemnification
	  	 	8	 
			
	 Section 4.
	 	 Restrictions on Transfers of Stock by Stockholders;
Tag-Along Rights
	  	 	9	 
			
	 Section 5.
	 	 Financial and Business Information
	  	 	10	 
			
	 Section 6.
	 	 Confidentiality
	  	 	10	 
			
	 Section 7.
	 	 Corporate Opportunities
	  	 	11	 
			
	 Section 8.
	 	 Termination
	  	 	11	 
			
	 Section 9.
	 	 Further Assurances
	  	 	11	 
			
	 Section 10.
	 	 Amendment and Waiver
	  	 	11	 
			
	 Section 11.
	 	 Entire Agreement
	  	 	12	 
			
	 Section 12.
	 	 Successors and Assigns
	  	 	12	 
			
	 Section 13.
	 	 Severability
	  	 	12	 
			
	 Section 14.
	 	 Remedies
	  	 	12	 
			
	 Section 15.
	 	 Notices
	  	 	12	 
			
	 Section 16.
	 	 Governing Law; Submission to Jurisdiction; Waiver of Jury Trial
	  	 	14	 
			
	 Section 17.
	 	 No Publicity
	  	 	15	 
			
	 Section 18.
	 	 Company Logo
	  	 	15	 
			
	 Section 19.
	 	 Descriptive Headings
	  	 	15	 
			
	 Section 20.
	 	 Conflicting Agreements
	  	 	15	 
			
	 Section 21.    
	 	 Counterparts
	  	 	15	 

  
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 SECOND AMENDED AND RESTATED STOCKHOLDERS AGREEMENT 

This SECOND AMENDED AND RESTATED STOCKHOLDERS AGREEMENT (as it may be amended from time to time in accordance with the terms hereof, the
“Agreement”) dated as of March 12, 2018 is made by and among Party City Holdco Inc., a Delaware corporation (the “Company”), THL PC Topco, L.P. (the “THL Party”, which term includes any
Affiliates of the foregoing which own Stock from time to time) and the Persons listed as Management Holders1 on the signature pages hereto. 

RECITALS 
 WHEREAS, on
July 27, 2012, the THL Party, Advent-Party City Acquisition Limited Partnership, a Delaware limited partnership (the “Advent Party”), the Company and certain other parties entered into a Stockholders Agreement (the
“Original Agreement”); 
 WHEREAS, on April 21, 2015, the Company consummated an initial public offering (the
“IPO”) of its shares of Common Stock pursuant to an underwriting agreement dated April 15, 2015 and amended and restated the Original Agreement (the “Amended and Restated Agreement”); 

WHEREAS, in December 2017, the Advent Party sold all of its shares of Common Stock and, as a result, ceased to be a party to the Amended and
Restated Agreement; and 
 WHEREAS, on the date hereof, the parties hereto desire to amend and restate the Amended and Restated Agreement in
order to remove provisions applicable to the Advent Party and to set forth their agreement with respect to certain rights and obligations associated with ownership of shares of capital stock of the Company. 

NOW, THEREFORE, in consideration of the premises and of the mutual covenants and obligations hereinafter set forth, the parties hereby agree
as follows: 
 Section 1.    Definitions. 

1.1.    Definitions. As used herein, the following terms shall have the following meanings: 

“Advent Party” has the meaning ascribed to such term in the Recitals. 

“Affiliate” means with respect to any Person, any other Person directly or indirectly controlling or controlled by or under
direct or indirect common control with such specified Person, where “control” means the possession, directly or indirectly, of the power to direct the management and policies of a Person whether through the ownership of voting securities,
contract or otherwise. For the avoidance of doubt, neither the Company nor any Person controlled by the Company shall be deemed to be an Affiliate of any Stockholder or of any Affiliate of any Stockholder. 

 
  

	1 	Note to Draft: need to determine who will be party to this agreement. Some Management Holders may have left the Company and would no longer be party to this agreement. Others (e.g., Dan Sullivan), should be included.

  
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 “Amended and Restated Agreement” has the meaning set forth in the Recitals. 

“Agreement” has the meaning ascribed to such term in the Preamble. 

“Board” means the board of directors of the Company. 

“Cause” shall have the meaning set forth below, except with respect to any Management Holder who is employed by the Company
or one of its Subsidiaries pursuant to an effective written employment agreement, if any, between the Company and/or one of its Subsidiaries and such Management Holder in which there is a definition of “Cause,” in which event the
definition of “Cause” as set forth in such employment agreement shall be deemed to be the definition of “Cause” herein solely for such Management Holder and only for so long as such employment agreement remains effective. In all
other events, the term “Cause” shall mean the Board has determined, in its reasonable judgment, that any one or more of the following has occurred: (a) the Management Holder shall have been convicted of, or shall have pleaded guilty
or nolo contendere to, any felony or any crime involving dishonesty or moral turpitude; (b) the Management Holder shall have committed any fraud, theft, embezzlement, misappropriation of funds, breach of fiduciary duty or act of dishonesty;
(c) the Management Holder shall have breached in any material respect any of the provisions of any agreement between the Management Holder and the Company or its Affiliates, including, without limitation, this Agreement; (d) the Management
Holder shall have engaged in conduct likely to make the Company or any of its Affiliates subject to criminal liabilities other than those arising from the Company’s normal business activities; or (e) the Management Holder shall have
willfully engaged in any other conduct that involves a breach of fiduciary obligation on the part of the Management Holder or otherwise could reasonably be expected to have a material adverse effect upon the business, interests or reputation of the
Company or any of its Affiliates. 
 “Certificate of Incorporation” means the certificate of incorporation of the Company
as in effect from time to time. 
 “Chief Executive Officer” means the chief executive officer of the Company then in
office. 
 “Common Stock” means the common stock, par value $0.01 per share, of the Company and any and all securities of
any kind whatsoever of the Company which may be issued after the date of this Agreement in respect of, or in exchange for, such shares of common stock of the Company pursuant to a merger, consolidation, stock split, stock dividend or
recapitalization of the Company or otherwise. 
 “Common Stock Equivalents” means all securities convertible into, or
exchangeable or exercisable for (at any time or upon the occurrence of any event or contingency and without regard to any vesting or other conditions to which such securities may be subject) (i) shares of Common Stock or (ii) other Equity
Securities convertible into, or exchangeable or exercisable for (at any time or upon the occurrence of any event or contingency and without regard to any vesting or other conditions to which such securities may be subject), Common Stock. 

“Company” has the meaning ascribed to such term in the Preamble. 

  
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 “Equity Securities” means any capital Stock or other equity security of the
Company or any of its Subsidiaries, including Common Stock and Common Stock Equivalents. 
 “GAAP” means generally accepted
accounting principles in the United States as in effect from time to time. 
 “Group” means two or more Persons who agree
to act together for the purpose of acquiring, holding, voting or disposing of Stock. 
 “HSR Act” means the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. 
 “IPO” has the meaning set forth in the Recitals. 

“Issue” means to issue or in any other way directly or indirectly sell or exchange, or agree to issue, sell or exchange, any
security or any legal or beneficial interest therein. 
 “Majority Management Holders” means the Senior Management Holders
holding a majority of the aggregate Voting Shares held by the Senior Management Holders. 
 “Management Holder” means any
current or former director, officer or employee of the Company or any of its Subsidiaries (or any Affiliate of such Person (other than the THL Party and the THL Directors)) who is a Stockholder and any Permitted Management Holder Transferee who is a
Stockholder. 
 “Maximum Tag-Along Sale Number” has the meaning ascribed to such
term in Section 4.2. 
 “Minimum Percentage” means, at any given time, a fraction (expressed as a
percentage), with the numerator being the number of shares, in the aggregate, held by such Stockholder at such time and the denominator being the number of shares of Common Stock, in the aggregate, held by such Stockholder immediately following the
closing of the IPO (including any additional closing pursuant to the underwriters’ over-allotment option). 
 “Necessary
Action” means, with respect to any party and a specified result, all actions (to the extent such actions are permitted by law and within such party’s control) necessary to cause such result, including (i) voting or providing a
written consent or proxy with respect to the Common Stock, (ii) causing the adoption of stockholders’ resolutions and amendments to the organizational documents of the Company, (iii) executing agreements and instruments, and
(iv) making, or causing to be made, with governmental, administrative or regulatory authorities, all filings, registrations or similar actions that are required to achieve such result. 

“Original Agreement” has the meaning set forth in the Recitals. 

“Option Plan” means the Company’s 2012 Omnibus Equity Incentive Plan, as amended from time to time. 

  
 -3- 

 “Option Stock” means Common Stock received upon the exercise of Common Stock
Equivalents (including Plan Options and Plan Stock Appreciation Rights). 
 “Permanent Disability” shall have the meaning
set forth below, except with respect to any Management Holder who is employed by the Company or one of its Subsidiaries pursuant to an effective written employment agreement, if any, between the Company and/or one of its Subsidiaries and such
Management Holder in which there is a definition of “Permanent Disability,” in which event the definition of “Permanent Disability” as set forth in such employment agreement shall be deemed to be the definition of “Permanent
Disability” herein solely for such Management Holder and only for so long as such employment agreement remains effective. In all other events, the term “Permanent Disability” shall mean: a determination by independent competent
medical authority (selected by the Board) that the Management Holder is unable to perform his duties and in all reasonable medical likelihood such inability shall continue for a consecutive period of 90 days or for a period in excess of 120 days in
any 365 day period. 
 “Permitted Management Holder Transferee” means any transferee who obtained Stock as a direct or
indirect result of a Permitted Management Transfer by a Management Holder. 
 “Permitted Management Transfer” means any
Transfer of Stock by a Management Holder (i) to spouses, children, and exclusive benefit trusts, in each case, so long as such Management Holder retains voting control of such Stock, (ii) to the Company or (iii) upon the death of an
individual Management Holder, pursuant to the terms of any trust or will of the deceased individual Management Holder or by the laws of intestate succession. 

“Person” means any individual, corporation, limited liability company, limited or general partnership, joint venture,
association, joint-stock company, trust, unincorporated organization, governmental entity or agency or other entity of any kind or nature. 

“Plan Options” means, options to purchase Common Stock of the Company pursuant to the Option Plan. 

“Plan Stock Appreciation Rights” means the right to receive Common Stock or cash payments in connection with the appreciation
of a specified number of shares of Common Stock pursuant to the Option Plan. 
 “Proprietary Information” has the meaning
ascribed to such term in Section 6. 
 “Registration Rights Agreement” means the Amended and
Restated Registration Rights Agreement, dated April 21, 2015, among the Company, the THL Party, the Advent Party and certain other parties, as amended from time to time. 

“SEC” means the Securities and Exchange Commission or such other federal agency which at such time administers the Securities
Act. 
 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations of the SEC issued
under such act, as they may from time to time be in effect. 

  
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 “Senior Management Holders” means the Management Holders who, as of
April 21, 2015, each hold at least 56,000 shares of Common Stock and each of whom is an “accredited investor” (as defined in Rule 501(a) under the Securities Act) or, if not an accredited investor, has retained a “purchaser
representative” (as defined in Rule 501(h) under the Securities Act) or has such knowledge and experience in financial and business matters that he or she is capable of evaluating the merits and risks of the action(s) contemplated. 

“Stock” means any shares of Common Stock or of any other class or series of authorized capital stock of the Company, whether
owned, issued or authorized on the date of this Agreement or hereafter, including any Option Stock but excluding any Plan Options. 

“Stockholders” means the parties to this Agreement (other than the Company) and any other subsequent holder of Stock who
agrees to be bound by the terms of this Agreement. 
 “Subsidiary” means, with respect to any Person, (i) any
corporation, limited liability company, partnership or other entity of which shares of capital stock or other ownership interests having ordinary voting power to elect a majority of the board of directors or other similar managing body of such
corporation, limited liability company, partnership or other entity are at the time directly or indirectly owned or controlled by such Person, or (ii) the management of which is otherwise controlled, directly or indirectly, by such Person. 

“Tag-Along Notice” has the meaning ascribed to such term in
Section 4.2. 
 “Tag-Along Offeror” has the meaning
ascribed to such term in Section 4.2. 
 “Tag-Along
Period” has the meaning ascribed to such term in Section 4.2. 

“Tag-Along Sale Number” has the meaning ascribed to such term in
Section 4.2. 
 “Tag-Along Right” has the meaning
ascribed to such term in Section 4.2. 
 “Tag-Along Sale”
means any Transfer of Stock pursuant to the exercise of Tag-Along Rights. 
 “Tag-Along Stockholders” has the meaning ascribed to such term in Section 4.2. 

“Tagging Stockholders” has the meaning ascribed to such term in Section 4.2. 

“Third Party Sale” means a sale, other than pursuant to a sale under an effective registration statement filed with the SEC,
of Stock to a single third party in which the THL Party proposes to sell to the third party at least 50% of its Stock. 
 “THL
Director” means a director designated by the THL Party. 
 “THL Party” has the meaning ascribed to such term in
the Preamble. 
 “THL Stockholder Party” has the meaning ascribed to such term in Section 7. 

“THL Supplemental Director” has the meaning ascribed to such term in Section 3.1(a)(ii). 

  
 -5- 

 “Total Tag-Along Shares” has the meaning
ascribed to such term in Section 4.2. 
 “Transition and Consulting Agreement” means the
Transition and Consulting Agreement, dated March 15, 2017, between the Company and Gerald C. Rittenberg. 
 “Transfer”
means to transfer, sell, assign, distribute, pledge, encumber, hypothecate, assign, exchange, or in any other way directly or indirectly dispose of, in whole or in part, either voluntarily or involuntarily, including by gift, by way of merger
(forward or reverse) or similar transaction, by operation of law or otherwise, any security or any legal or beneficial interest therein, including the grant of an option or other right or interest that would result in the transferor no longer having
the economic consequences of ownership in, or the power to vote, such security. 
 “Trigger Date” has the meaning ascribed
to such term in Section 3.1(d) 
 “Voting Shares” means, at any time, any securities of the
Company, the holders of which are generally entitled to vote for the election of directors to the Board (including all outstanding shares of Common Stock). 

1.2.    General Interpretive Principles. When a reference is made in this Agreement to a Section, Schedule or
Exhibit such reference shall be to a Section of, or a Schedule or Exhibit to, this Agreement unless otherwise indicated. The table of contents and headings contained in this Agreement are for reference purposes only and shall not affect in any way
the meaning or interpretation of this Agreement. Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without
limitation.” The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole (including the Schedules and
Exhibits) and not to any particular provision of this Agreement. All terms defined in this Agreement shall have the defined meanings when used in any document made or delivered pursuant hereto unless otherwise defined therein. The definitions
contained in this Agreement are applicable to the singular as well as the plural forms of such terms and, except as otherwise expressly provided or unless the context otherwise requires, any noun or pronoun shall be deemed to cover all genders. Any
statute, rule, order or regulation defined or referred to in this Agreement or in any agreement or instrument that is referred to in this Agreement shall mean such statute, rule, order or regulation as from time to time amended, updated, modified,
supplemented or superseded, including by succession of comparable successor statutes, rules, orders or regulations and references to all attachments thereto and instruments incorporated therein. Where specific language is used to clarify by example
a general statement contained herein, such specific language shall not be deemed to modify, limit or restrict in any manner the construction of the general statement to which it relates. The language used in this Agreement shall be deemed to be the
language chosen by the parties hereto to express their mutual intent, and no rule of strict construction shall be applied against any party. 

Section 2.    Methodology for Calculations. Except as otherwise expressly provided in this Agreement, for
purposes of calculating (a) the amount of outstanding shares of Common Stock as of any date and (b) the amount of shares of Common Stock owned by a Person hereunder (and the percentage of the outstanding shares of Common Stock owned by a
Person 

  
 -6- 

 
hereunder), no Common Stock Equivalents of the Company shall be treated as having been converted, exchanged or exercised. In the event of any stock split, stock dividend, reverse stock split, any
combination of the shares of Stock or any similar event, with respect to all references in this Agreement to a Stockholder or Stockholders holding a number of shares of Stock, the applicable number shall be appropriately adjusted to give effect to
such stock split, stock dividend, reverse stock split, any combination of the shares of Stock or similar event. 

Section 3.    Corporate Governance. 

3.1.    Board of Directors. 

(a)    THL Party Representation. 

(i)    For so long as the THL Party holds a number of shares of Common Stock representing the Minimum Percentages shown
below, the Company shall, and the Management Holders shall take all Necessary Action to, include in the slate of nominees recommended by the Board for election as directors at each applicable annual or special meeting of stockholders at which
directors are to be elected, or pursuant to a written consent, that number of individuals designated by the THL Party that, if elected, will result in the THL Party having the number of directors serving on the Board that is shown below. 

 

					
	 Minimum Percentage
	  	Number of THL Directors	 
	 30% or greater
	  	 	3	 
	 Less than 30% but greater than or equal to 15%
	  	 	2	 
	 Less than 15% but greater than or equal to 5%
	  	 	1	 

 (ii)    In addition, for so long as the THL Party holds a number of shares of Common Stock
representing the Minimum Percentages shown below, the Company shall, and the Management Holders will take all Necessary Action to, include in the slate of nominees recommended by the Board for election as directors at each applicable annual or
special meeting of stockholders at which directors are to be elected, or pursuant to a written consent, that number of individuals designated by the THL Party that, if elected, will result in the having the number of directors, in addition to the
directors designated in accordance with Section 3.1(a)(i), serving on the Board that is shown below (each, a “THL Supplemental Director”). 

 

					
	 Minimum Percentage
	  	Number of THL Supplemental Directors	 
	 50% or greater
	  	 	2	 
	 Less than 50% but greater than or equal to 40%
	  	 	1	 

 (b)    The Chief Executive Officer will serve on the Board, and the THL Party agrees to
vote in favor of the Chief Executive Officer as a director. Gerald C. Rittenberg will serve on the Board through the Consulting Period (as defined in the Transition and Consulting Agreement) and the THL Party agrees to vote in favor of
Mr. Rittenberg as a director through the Consulting Period. 

  
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 (c)    In the event that a vacancy is created at any time by the death,
disability, retirement, resignation or removal of any THL Director, the Company hereby agrees to take all Necessary Action to cause the vacancy created thereby to be filled as soon as practicable by a THL Director for so long as the THL Party has
the right to designate an individual for nomination to the Board under this Agreement. 
 (d)    For so long as the THL
Party holds a majority of the outstanding shares of Common Stock (the “Trigger Date”), any director of the Company may be removed with our without cause by holders of a majority of the outstanding shares of Common Stock. At and
following the Trigger Date, directors may only be removed for cause by the affirmative vote of the holders of at least 75 percent of the voting power of the outstanding Stock. 

(e)    Subject to Section 3.1(a)(ii), the Board shall not, and the Company will take all Necessary Action to ensure
that the Board shall not, consist of fewer than three or greater than 15 directors, the exact number of directors to be determined from time to time by resolution adopted by the affirmative vote of a majority of the Board, including the THL
Directors. 
 (f)    Upon any decrease in the number of directors that the THL Party is entitled to designate for
nomination to the Board, the THL Party shall take all Necessary Action to cause the appropriate number of THL Directors to offer to tender resignation. If such resignation is then accepted by the Board, the Company and the THL Party shall take all
Necessary Action to cause the authorized size of the Board to be reduced accordingly. 
 (g)    Except as required by
applicable law, the business and affairs of the Company shall be managed by or under the direction of the Board. At all meetings of the Board, a quorum shall consist of not less than a number of directors holding a majority of the votes held by all
directors; provided, that until the Trigger Date, the attendance of at least one THL Director shall be required for a quorum to be present. At each meeting of the Board (or committee thereof) at which a quorum is present, each director shall
be entitled to one vote on each matter to be voted on at such meeting. All actions of the Board shall require the affirmative vote of at least a majority of the votes held by all directors present at such meeting. Subject to applicable law, any
action that may be taken at a meeting of the Board may also be taken by written consent of the members of the Board in lieu of a meeting. 

(h)    The Company and the THL Party shall take all Necessary Action to ensure that the composition of the Board complies
with all applicable law and stock exchange rules upon loss of the “controlled company” exemption under the applicable stock exchange rules. 

3.2.    Expenses and Indemnification. The Company shall pay the reasonable out-of-pocket expenses incurred by each member of the Board in connection with performing his or her duties as a member of the Board, including the reasonable out-of-pocket expenses incurred by such person for attending meetings of the Board or any committee thereof or meetings of any board of directors or other similar managing body (and any committee thereof) of
any Subsidiary of the Company. The Company shall obtain customary director and officer liability insurance on commercially reasonable terms. 

  
 -8- 

 Section 4.    Restrictions on Transfers of Stock by Stockholders; Tag-Along Rights. 
 4.1.    No Stockholder shall Transfer any Stock other than
(i) pursuant to a Permitted Management Transfer, (ii) with the prior written consent of the THL Party, (iii) pursuant to a Tag-Along Sale or (iv) to any Person either (A) pursuant to
the exercise of registration rights under the Registration Rights Agreement, or (B) pursuant to an exemption from registration under the Securities Act, provided, that, until the Minimum Percentage of the THL Party is less than
10 percent, no Transfers shall be permitted under this clause (iv) if, after giving effect to any such Transfers, the Minimum Percentage held by such Stockholder and his Permitted Management Holder Transferee is less than the Minimum
Percentage of the THL Party. 
 4.2.    In the event that the THL Party enters into an agreement to Transfer Stock
pursuant to a Third Party Sale, the THL Party shall give written notice (the “Tag-Along Notice”) of such Transfer to each other Stockholder that is not an Affiliate of the THL Party (the
“Tag-Along Stockholders”), which shall specifically identify the identity of the offeror in the Third Party Sale (the “Tag-Along
Offeror”), the number of shares of Stock that is to be Transferred by the THL Party to the Tag-Along Offeror (the “Tag-Along Sale Number”), the
maximum number of shares of Stock that the Tag-Along Offeror is willing to purchase (the “Maximum Tag-Along Sale Number”), the purchase price therefor,
and a summary of the other material terms and conditions of the proposed Transfer. For a period ending on the fifth (5) day after the delivery of the Tag-Along Notice (the “Tag-Along Period”), each Tag-Along Stockholder shall have the right (the “Tag-Along Right”), at the same
price per share to be paid to and upon the same terms offered to the THL Party, to sell to the Tag-Along Offeror, that number of shares of Stock of such Tag-Along
Stockholder as is equal to the product of (x) a fraction, the numerator of which is the Tag-Along Sale Number and the denominator of which is the aggregate number of shares of Stock owned as of the date
of the Tag-Along Notice by the THL Party and its Affiliates and (y) the number of shares of Stock owned by such Tag-Along Stockholder as of the date of the Tag-Along Notice; provided that the number of shares of Stock required to be purchased from such Tag-Along Stockholder by the
Tag-Along Offeror shall be subject to reduction in accordance with the last sentence of this Section 4.2. A copy of the Tag-Along Notice shall
promptly be sent to the Company. The Tag-Along Rights may be exercised in whole or in part at the option of each of the Tag-Along Stockholders (all Tag-Along Stockholders who exercise such Tag-Along Rights, together with the THL Party, the “Tagging Stockholders”). Notice of any Tag-Along Stockholder’s intention to exercise such Tag-Along Rights, in whole or in part, shall be evidenced by a writing signed by such
Tag-Along Stockholder and delivered to the Tag-Along Offeror and the Company prior to the end of the Tag-Along Period, setting
forth the number of shares of Stock that such Tag-Along Stockholder elects to Transfer. In the event that the number of shares of Stock proposed to be Transferred to a
Tag-Along Offeror (the “Total Tag-Along Shares”) is greater than the Maximum Tag-Along Sale Number, each Tagging
Stockholder shall be entitled to Transfer to the Tag-Along Offeror only that number of shares of Stock that is equal to (A) the number of shares that it sought or elected, as applicable, to be Transferred
to such Tag-Along Offeror by such Tagging Stockholder, multiplied by (B) a fraction the numerator of which is the Maximum Tag-Along Sale Number and the denominator
of which is the Total Tag-Along Shares. 
 4.3.    All Transfers of Stock to the
Tag-Along Offeror pursuant to this Section 4 shall be consummated contemporaneously at the offices of the Company on the later of (i) a mutually satisfactory business day as soon
as practicable, but in no event more than sixty (60) days after the expiration of the Tag-Along Period, or (ii) the tenth (10) business day following the

  
 -9- 

 
expiration or termination of all waiting periods under the HSR Act or receipt of other regulatory approvals applicable to such Transfers, or at such other time and/or place as the THL Party and
the Tag-Along Offeror may agree. If applicable, the delivery of certificates or other instruments evidencing such Stock duly endorsed for transfer shall be made on such date against payment of the purchase
price for such Stock. 
 Section 5.    Financial and Business Information. For so long as the THL Party,
together with its Affiliates, has the right to designate a member of the Board, the Company shall provide to the THL Party the following information (i) unaudited consolidated quarterly financial reports of the Company and its consolidated
subsidiaries prepared in accordance with GAAP for the first three fiscal quarters of each year, which shall be provided at the same time that the Company provides such financial reports to the Company’s lenders and no later than 60 days
after the end of such fiscal quarter, (ii) audited consolidated annual financial reports of the Company and its consolidated subsidiaries prepared in accordance with GAAP, which shall be provided at the same time that the Company is required to
provide such financial reports to the Company’s lenders and no later than 120 days after the end of the Company’s fiscal year, (iii) an annual consolidated budget for the Company and its Subsidiaries as approved by the Board no later
than 90 days after the end of the Company’s fiscal year, (iv) complete copies of the quarterly information packages distributed to the Company’s lenders at the same time the Company provides such information packets to the
Company’s lenders and no later than 60 days after the end of each fiscal quarter and (v) all information that is provided to the Board in connection with any meeting thereof, which information shall be provided to the THL Party at the
same time it is provided to the Board; provided, however, that the THL Party receiving information pursuant to this Section 5 shall comply with the requirements of Section 6 herein. 

Section 6.    Confidentiality. Each Stockholder shall maintain the confidentiality of any confidential and
proprietary information of the Company, including any information received by the THL Party pursuant to Section 5 hereof (“Proprietary Information”), using the same standard of care, but in no event less
than reasonable care, as it applies to its own confidential information; provided, however, that a Stockholder may disclose Proprietary Information (a) to its representatives in connection with monitoring its investment in the
Company, (b) to any Affiliate, partner, limited partner, member, trustee, investor or related investment fund of such Stockholder and its and their respective investors, limited partners, directors, employees and consultants, in each case, in
the ordinary course of business, or (c) as may otherwise be required by law, rule, regulation or self-regulatory organization, and further provided, that (i) such Proprietary Information provided pursuant to clauses
(a) to (c) above is identified prior to disclosure by the Stockholder to the recipient as requiring confidential treatment, and (ii) the disclosing Stockholder shall be responsible for the acts and omissions
related to the Proprietary Information of any Person to whom such Stockholder discloses Proprietary Information (other than pursuant to clause (c) above). “Proprietary Information” shall not include any information
(a) that is publicly available (other than as a result of dissemination by such Stockholder) or a matter of public knowledge generally, (b) that was known to such Stockholder on a non-confidential
basis, without, to such Stockholders’ knowledge, breach of any third party’s confidentiality obligations, prior to its disclosure by the Company, or (c) that is or was independently developed or conceived by such Stockholder without
use of the Proprietary Information. 

  
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 Section 7.    Corporate Opportunities. To the fullest extent
permitted by applicable law, the Company, on behalf of itself and its Subsidiaries, and each of the Stockholders, hereby renounces any interest, duty or expectancy of the Company and its Subsidiaries in, or in being offered an opportunity to
participate in, business opportunities that are from time to time presented to the THL Party, any Affiliate of the THL Party or any director (or director of any Subsidiary of the Company) designated by any of the foregoing (each a “THL
Stockholder Party”) even if the opportunity is one that the Company or its Subsidiaries might reasonably be deemed to have pursued or had the ability or desire to pursue if granted the opportunity to do so and each THL Stockholder Party
shall have no duty to communicate or offer such business opportunity to the Company and to the fullest extent permitted by applicable law, shall not be liable to the Company or any of its Subsidiaries for breach of any fiduciary or other duty, as a
director or otherwise, by reason of the fact that such THL Stockholder Party pursues or acquires such business opportunity, directs such business opportunity to another Person or fails to present such business opportunity, or information regarding
such business opportunity, to the Company or its Subsidiaries. 
 Section 8.    Termination.
Section 3 shall terminate automatically (without any action by any party hereto) as to the THL Party upon the time at which the THL Party no longer has the right to designate an individual for nomination to the Board under
this Agreement; provided, that the provision in Section 3.2 shall survive such termination. The remainder of this Agreement shall terminate automatically (without any action by any party hereto) as to each
Stockholder when such Stockholder ceases to hold any Shares; provided, that this Agreement shall terminate with respect to each such Management Holder at such time when (i) such Management Holder is not a director, officer or employee of
the Company or any of its Subsidiaries (or any Affiliate of such Person (other than the THL Party and the THL Directors)), (ii) such Management Holder holds less than 1% of the Company’s outstanding shares of Common Stock and (iii) except
where such Management Holder is terminated without Cause or for Good Reason (to the extent defined in any applicable employment agreement), six months have elapsed since such Management Holder was a director, officer or employee of the Company or
any of its Subsidiaries. 
 Section 9.    Further Assurances. At any time or from time to time after the
date of this Agreement, the parties agree to cooperate with each other, and at the request of any other party, to execute and deliver any further instruments or documents and to take all such further action as the other party may reasonably request
in order to evidence or effectuate the consummation of the transactions contemplated hereby and to otherwise carry out the intent of the parties hereunder. 

Section 10.    Amendment and Waiver. Except as otherwise provided herein, no modification, amendment or waiver
of any provision of this Agreement shall be effective against the Company or any Stockholder unless such modification, amendment or waiver is approved in writing by the THL Party. Notwithstanding the foregoing, no amendment shall be made or waiver
granted in a manner that adversely affects (i) the Management Holders’ rights hereunder, to the extent that such amendment or waiver has a material and disproportionate impact or effect on the Management Holders’ as a Group as
compared to the other Stockholders, without the prior written consent of the Majority Management Holders, or (ii) any particular Management Holder’s rights or obligations hereunder to the extent (and only to the extent) such particular

  
 -11- 

 
Management Holder would be uniquely and adversely affected by such amendment or waiver, without the written consent of such Management Holder. The failure of any party to enforce any of the
provisions of this Agreement shall in no way be construed as a waiver of such provisions and shall not affect the right of such party thereafter to enforce each and every provision of this Agreement in accordance with its terms. 

Section 11.    Entire Agreement. This Agreement, the Registration Rights Agreement and the other writings
referred to herein or delivered pursuant hereto or which make specific reference to this Section 11 form a part hereof and contain the entire agreement and understanding among the parties hereto with respect to the subject
matter hereof and supersede and preempt any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way. 

Section 12.    Successors and Assigns. Except as otherwise provided herein, this Agreement shall bind and
inure to the benefit of and be enforceable by the Company and its successors and assigns and each Stockholder and its successors, permitted assigns, heirs and personal representatives. Subject to compliance with the provisions of this Agreement,
(i) the THL Party shall, at any time and without the consent of any other party hereto, have the right to assign all or part of its rights and obligations under this Agreement to one or more of its Affiliates or (ii) each Stockholder
shall, at any time and without the consent of any other party hereto, have the right to assign all or part of its rights and obligations under this Agreement to any Person to whom such Stockholder Transferred Stock in accordance with this Agreement.
Upon any such permitted assignment, such assignee shall have and be able to exercise and enforce all rights of the assigning party which are assigned to it and, to the extent such rights are assigned, any reference to the assigning Stockholder shall
be treated as a reference to the assignee. 
 Section 13.    Severability. Whenever possible, each provision
of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or
unenforceable provision had never been contained herein. 

Section 14.    Remedies.    Each party hereto shall be entitled to enforce its rights
under this Agreement specifically, to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights existing in its favor. The parties hereto agree and acknowledge that money damages may not be an
adequate remedy for any breach of the provisions of this Agreement and that each party may in its sole discretion apply to any court of law or equity of competent jurisdiction for specific performance and/or injunctive relief (without posting a bond
or other security) in order to enforce or prevent any violation of the provisions of this Agreement. 

Section 15.    Notices.    All notices, requests, consents and other communications
hereunder to any party shall be deemed to be sufficient if contained in a written instrument delivered in person or by telecopy (with a confirmatory copy sent by different means within 

  
 -12- 

 
three business days of such notice), nationally recognized overnight courier or first class registered or certified mail, return receipt requested, postage prepaid, addressed to such party at the
address set forth below and to any subsequent holder of Stock subject to this Agreement at such address as indicated by the Company’s records, or at such address or to the attention of such other person as may hereafter be designated in writing
by such party to the other parties: 
 if to the Company to: 

Party City Holdco Inc. 
 80
Grasslands Road 
 Elmsford, NY 10523 

Facsimile: (914) 345-2056 

Attention: Daniel Sullivan 

Email: dsullivan@amscan.com 

with a copy (which shall not constitute notice) to: 

Party City Holdco Inc. 
 80
Grasslands Road 
 Elmsford, NY 10523 

Facsimile: (914) 784-4339 

Attention: Joseph J. Zepf 
 Email:
jzepf@amscan.com 
 and 

Ropes & Gray LLP 
 1211
Avenue of the Americas 
 New York, NY 10036 

Facsimile: (646) 728-2554 

Attention: Michael Littenberg 

Email: michael.littenberg@ropesgray.com 

if to the THL Party, to: 
 c/o
Thomas H. Lee Partners, L.P. 
 100 Federal Street, 35th Floor 

Boston, MA 02110 
 Facsimile: (617) 227-3514 
 Attention: Todd M. Abbrecht and Joshua M. Nelson 

Email:    TAbbrecht@THL.com 

    JNelson@THL.com 

with a copy (which shall not constitute notice) to: 

Ropes & Gray LLP 
 1211
Avenue of the Americas 
 New York, NY 10036 

Facsimile: (646) 728-2554 

Attention: Michael Littenberg 

Email: michael.littenberg@ropesgray.com 

  
 -13- 

 if to any Management Holder, to: such address indicated in the records of the Company: 

with a copy (which shall not constitute notice) to: 

Ropes & Gray LLP 
 1211
Avenue of the Americas 
 New York, NY 10036 

Facsimile: (646) 728-2554 

Attention: Michael Littenberg 

Email: michael.littenberg@ropesgray.com 
 All
such notices, requests, consents and other communications will be deemed to have been given hereunder when received. 

Section 16.    Governing Law; Submission to Jurisdiction; Waiver of Jury Trial. 

(a)    This Agreement, including the validity hereof and the rights and obligations of the parties hereunder, all
amendments and supplements hereto and the transactions contemplated hereby, and all actions or proceedings arising out of or relating to this Agreement, of any nature whatsoever, shall be construed in accordance with and governed by the domestic
substantive laws of the State of Delaware without giving effect to any choice of law or conflicts of law provision or rule that might otherwise cause the application of the domestic substantive laws of any other jurisdiction. The parties hereto
hereby irrevocably submit to the exclusive jurisdiction of the state and federal courts located in the Borough of Manhattan within the State of New York in connection with any dispute arising out of or relating to this Agreement or any of the
transactions contemplated hereby (except for actions to enforce a judgment rendered by a state or federal court located in the Borough of Manhattan within the State of New York in connection with any dispute that arises out of this Agreement or any
of the transactions), and each party hereby irrevocably waives, to the fullest extent permitted by applicable law, any objection which they may now or hereafter have to the laying of venue of any such dispute brought in such court or any defense of
inconvenient forum or lack of personal jurisdiction in respect of such dispute. Each of the parties hereto agrees that a judgment rendered in any such dispute may be enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law. 
 (b)    Each party hereto hereby waives to the fullest extent permitted by applicable law any right
it may have to a trial by jury in respect of any legal proceeding directly or indirectly arising out of, under or in connection with this Agreement or any transaction contemplated hereby. Each party hereto (i) certifies that no representative,
agent or attorney of any other party has represented, expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce the foregoing waiver and (ii) acknowledges that it and the other parties hereto have been
induced to enter into this Agreement by, among other things, the mutual waivers and certifications in this Section 16. 

  
 -14- 

 Section 17.    No Publicity. 

(a)    None of the Stockholders or the Company shall issue any public announcements or make any published statements
regarding this Agreement, or the subject matter hereof, without the prior written consent of the THL Party; provided, that, this Section 17(a) shall not limit disclosures by any Stockholder if such disclosure is requested or
required by applicable law or any governmental entity or self-regulatory organization having jurisdiction over such Stockholder or its Affiliates or any of its respective representatives or advisers, or that such Stockholder deems advisable to
provide to such a governmental entity or self-regulatory organization, in each case whether in connection with an audit, examination or otherwise. 

(b)    The Company shall not, and shall ensure that its Affiliates and its and their respective officers, directors,
employees and other representatives do not, without the prior written consent of the THL Party, (i) use in advertising, publicity or otherwise the name of the THL Party, or any of its Affiliates, or the name of any member, stockholder, partner,
manager or employee of the THL Party or any of its Affiliates or any trade name, trademark, trade device, logo, service mark, symbol or any abbreviation, contraction or simulation thereof owned or used by the THL Party or any of its Affiliates,
(ii) represent, directly or indirectly, that any product or any service provided by the Company or any Affiliate of the Company has been approved, endorsed, recommended or provided by, or in association with, the THL Party or any of its
Affiliates after the date of this Agreement, or (iii) except as required by law, disclose the fact that the THL Party is a Stockholder of the Company. 

Section 18.    Company Logo.    The Company hereby grants the THL Party permission to use
the Company’s and its Subsidiaries’ name and logo in marketing materials. The THL Party, or Affiliates of the THL Party, as applicable, shall include a trademark attribution notice giving notice of the Company’s ownership of its
trademarks in the marketing materials in which the Company’s or any of its Subsidiaries’ name and logo appear. 

Section 19.    Descriptive Headings. The descriptive headings of this Agreement are inserted for convenience
only and do not constitute a part of this Agreement. 
 Section 20.    Conflicting Agreements. Other than
with respect to proxies or powers of attorney that the THL Party may have granted or grant to an Affiliate of the THL Party, each Stockholder represents and warrants that such Stockholder has not granted and is not a party to any proxy, voting trust
or other agreement which conflicts with any provision of this Agreement, and no holder of Stock shall grant any proxy or become party to any voting trust or other agreement which conflicts with any provision of this Agreement. 

Section 21.    Counterparts. This Agreement may be executed in separate counterparts each of which shall be an
original and all of which taken together shall constitute one and the same agreement. 
 [Remainder of Page Intentionally Left Blank]

  
 -15- 

 IN WITNESS WHEREOF, the parties hereto have executed this Second Amended and Restated
Stockholders Agreement as of the day and year first written above. 
  

			
	PARTY CITY HOLDCO INC.
		
	By:	 	 /s/ Daniel Sullivan

		 	Name: Daniel Sullivan
		 	Title:   Chief Financial Officer

  
 [SIGNATURE PAGE TO
STOCKHOLDERS AGREEMENT] 

 
			
	THE THL PARTY:
	
	THL PC TOPCO, L.P.
		
	By:	 	THL Equity Advisors VI, LLC,
		 	its general partner
		
	By:	 	Thomas H. Lee Partners, L.P.,
		 	its sole member
		
	By:	 	Thomas H. Lee Advisors, LLC,
		 	its general partner
		
	By:	 	THL Holdco, LLC,
		 	its managing member

  

					
	By:	 	 /s/ Todd M. Abbrecht

		 	Name:	 	Todd M. Abbrecht
		 	Title:	 	Managing Director

  
 [SIGNATURE PAGE TO
STOCKHOLDERS AGREEMENT] 

 
			
	MANAGEMENT HOLDER:
	
	CHARLES ARTHUR RITTENBERG 2008 TRUST
		
	By:	 	 /s/ Gernald C. Rittenberg

	Name:	 	Gerald C. Rittenberg
	Title:	 	Trustee

  
 [SIGNATURE PAGE TO
STOCKHOLDERS AGREEMENT] 

 
			
	MANAGEMENT HOLDER:
	
	JACK DOLLIVER RITTENBERG 2013 TRUST
		
	By:	 	 /s/ Gernald C. Rittenberg

	Name:	 	Gerald C. Rittenberg
	Title:	 	Trustee

  
 [SIGNATURE PAGE TO
STOCKHOLDERS AGREEMENT] 

 
			
	MANAGEMENT HOLDER:
	
	THEODORE FREDERICK RITTENBERG 2014 TRUST
		
	By:	 	 /s/ Gernald C. Rittenberg

	Name:	 	Gerald C. Rittenberg
	Title:	 	Trustee

  
 [SIGNATURE PAGE TO
STOCKHOLDERS AGREEMENT] 

 
			
	MANAGEMENT HOLDER:
	
	CRAIG M. RITTENBERG SELF-SETTLED TRUST U/A/D JUNE 28, 2008
		
	By:	 	 /s/ Gernald C. Rittenberg

	Name:	 	Gerald C. Rittenberg
	Title:	 	Trustee

  
 [SIGNATURE PAGE TO
STOCKHOLDERS AGREEMENT] 

 
			
	MANAGEMENT HOLDER:
	
	GARRETT J. RITTENBERG SELF-SETTLED TRUST U/A/D JUNE 28, 2008
		
	By:	 	 /s/ Gernald C. Rittenberg

	Name:	 	Gerald C. Rittenberg
	Title:	 	Trustee

  
 [SIGNATURE PAGE TO
STOCKHOLDERS AGREEMENT] 

 
	
	MANAGEMENT HOLDER:
	
	GERALD C. RITTENBERG
	
	 /s/ Gerald C. Rittenberg

	Gerald C. Rittenberg

  
 [SIGNATURE PAGE TO
STOCKHOLDERS AGREEMENT] 

 
					
	MANAGEMENT HOLDER:
	
	BJM2 LLC

 
					
		
	By:	 	       /s/ James M. Harrison

		 	Name: James M. Harrison
		 	Title:   Managing Member

  
 [SIGNATURE PAGE TO
STOCKHOLDERS AGREEMENT] 

 
					
	MANAGEMENT HOLDER:
	
	RITTS ENTERPRISES LLC

 
					
		
	By:	 	       /s/ Gerald Rittenberg

		 	Name: Gerald Rittenberg
		 	Title:   Managing Member

  
 [SIGNATURE PAGE TO
STOCKHOLDERS AGREEMENT] 

 
	
	MANAGEMENT HOLDER:
	
	JAMES M. HARRISON
	
	 /s/ James M. Harrison

	James M. Harrison

  
 [SIGNATURE PAGE TO
STOCKHOLDERS AGREEMENT] 

 
	
	MANAGEMENT HOLDER:
	
	 /s/ Gregg Melnick

	Gregg Melnick

  
 [SIGNATURE PAGE TO
STOCKHOLDERS AGREEMENT] 

 
					
	MANAGEMENT HOLDER:
	
	MELNICK 2008 FAMILY TRUST

 
					
		
	By:	 	 /s/ Gregg Melnick

		 	Name: Gregg Melnick
		 	Title:   Trustee

  
 [SIGNATURE PAGE TO
STOCKHOLDERS AGREEMENT] 

 
	
	MANAGEMENT HOLDER:
	
	 /s/ Diane Spaar

	Diane Spaar

  
 [SIGNATURE PAGE TO
STOCKHOLDERS AGREEMENT] 

 
					
	MANAGEMENT HOLDER:
	
	ETHAN REES SPAAR IRREVOCABLE TRUST

 
					
		
	By:	 	 /s/ Diane Spaar

		 	Name: Diane Spaar
		 	Title:   Trustee

  
 [SIGNATURE PAGE TO
STOCKHOLDERS AGREEMENT] 

 
					
	MANAGEMENT HOLDER:
	
	JULIA ROSE SPAAR IRREVOCABLE TRUST

 
					
		
	By:	 	 /s/ Diane Spaar

		 	Name: Diane Spaar
		 	Title:   Trustee

  
 [SIGNATURE PAGE TO
STOCKHOLDERS AGREEMENT] 

 
					
	MANAGEMENT HOLDER:
	
	KEITH ALAN SPAAR JR. IRREVOCABLE TRUST

 
					
		
	By:	 	 /s/ Diane Spaar

		 	Name: Diane Spaar
		 	Title:   Trustee

  
 [SIGNATURE PAGE TO
STOCKHOLDERS AGREEMENT] 

 
					
	MANAGEMENT HOLDER:
	
	WILLA ANNE SPAAR IRREVOCABLE TRUST

 
					
		
	By:	 	 /s/ Diane Spaar

		 	Name: Diane Spaar
		 	Title:   Trustee

  
 [SIGNATURE PAGE TO
STOCKHOLDERS AGREEMENT] 

 
	
	MANAGEMENT HOLDER:
	
	 /s/ Steven Skiba

	Steven Skiba

  
 [SIGNATURE PAGE TO
STOCKHOLDERS AGREEMENT] 

 
	
	MANAGEMENT HOLDER:
	
	 /s/ Michael Correale

	Michael Correale

  
 [SIGNATURE PAGE TO
STOCKHOLDERS AGREEMENT]EX-10.3

 Exhibit 10.3 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT (“Agreement”), dated as of the 12th day of March, 2018, by and between Party City
Holdings Inc., a Delaware corporation (the “Company”), Party City Holdco Inc., a Delaware corporation (“Holdco”), and James M. Harrison (the “Executive”) and effective as of the date hereof. 

WHEREAS, the Executive has served the Company as its Chief Executive Officer pursuant to an Employment Agreement, which was last amended and
restated effective as of January 1, 2015, and last amended on May 8, 2017 (as amended, the “Prior Employment Agreement”); and 

WHEREAS, the Company, Holdco and the Executive desire to set forth in this new Agreement the terms and conditions under which the Executive
will continue to be employed as the Chief Executive Officer of each of the Company and Holdco effective the date hereof; 
 NOW, THEREFORE,
IT IS HEREBY AGREED AS FOLLOWS: 
 1.    Employment Period. The Company and Holdco shall continue to employ the
Executive, and the Executive agrees to, and shall, serve the Company and Holdco, on the terms and conditions set forth in this Agreement, for the period beginning on the date hereof and ending on December 31, 2019, unless sooner terminated as
set forth hereinafter (the “Employment Period”). 
 2.    Position and Duties. 

(a)    During the Employment Period, the Executive shall continue to serve as Chief Executive Officer of the Company and of
Holdco with such duties and responsibilities as are assigned to him by the Board of Directors of Holdco (the “Board”) consistent with his position as Chief Executive Officer of the Company and Holdco, including, as the Board may
request, without additional compensation, to serve as an officer or director of certain subsidiaries and other affiliated entities of Holdco. 

(b)    During the Employment Period, and excluding any periods of vacation and sick leave to which the Executive is
entitled, the Executive shall devote his full attention and time during normal business hours to the business and affairs of the Company and Holdco and shall use his reasonable best efforts to carry out the responsibilities assigned to the Executive
faithfully and efficiently. It shall not be considered a violation of the foregoing for the Executive to (i) serve on civic or charitable boards or committees, (ii) deliver lectures, fulfill speaking engagements or teach at educational
institutions, (iii) serve on the board of directors of other companies, so long as the Board approves such appointments (such approval not to be unreasonably withheld), or (iv) manage personal investments, so long as such activities do not
compete with and are not provided to or for any entity that competes with or intends to compete with Holdco or any of its subsidiaries and affiliates and do not interfere with the performance of the Executive’s responsibilities as an employee
of the Company or Holdco in accordance with this Agreement. 

  
 -1- 

 3.    Compensation. 

(a)     Base Salary. Effective as of January 1, 2018, the Executive shall receive from the Company an annual
base salary (“Annual Base Salary”) of $1,785,802, payable in regular intervals in accordance with the Company’s customary payroll practices in effect during the Employment Period; provided that such Annual Base Salary
shall be increased by 2% (from the Annual Base Salary theretofore in effect) on each January 1 during the Employment Period commencing on January 1, 2019. 

(b)    Annual Bonus. In addition to the Annual Base Salary, the Executive shall be eligible to receive annual bonus
compensation (the “Annual Bonus”) consistent with the Company’s bonus plan for key executives as in effect from time to time (the “Bonus Plan”). The Annual Bonus, if any, shall be paid no later than two and one-half months following the end of the calendar year to which such Annual Bonus corresponds. During the Employment Period, the target amount of the Annual Bonus shall be 60% of the Annual Base Salary and the
maximum amount of the Annual Bonus shall be 120% of the Annual Base Salary, with the actual amount of the Annual Bonus, if any, to be determined by the Board or the Compensation Committee of the Board (the “Committee”) in accordance
with the Bonus Plan. Except as otherwise provided in Section 5 of this Agreement, for any year during which the Executive is employed by the Company and Holdco for less than the entire calendar year (including a year in which the
Executive’s employment is terminated), the Annual Bonus, if any, shall be determined based on actual performance, pro-rated for the period during which the Executive was employed during such calendar year
(based on the number of days in such calendar year the Executive was so employed divided by 365), as determined in good faith by the Board or the Committee and payable no later than two and one-half months
following the end of the calendar year to which such Annual Bonus corresponds. 
 (c)    Other Benefits. During
the Employment Period: (i) the Executive shall be eligible to participate in all incentive, savings and retirement plans, practices, policies and programs of the Company, and shall be entitled to paid vacation, to the same extent and on the
same terms and conditions as peer executives; (ii) the Company shall pay on the Executive’s behalf, disability insurance premiums up to $2,000.00 per month pursuant to which policy the Executive shall be entitled to designate the
beneficiary; and (iii) the Executive and/or the Executive’s family, as the case may be, shall be eligible for participation in, and shall receive all benefits under, all other welfare benefit plans, practices, policies and programs
provided by the Company (including, to the extent provided, without limitation, medical, prescription, dental, disability, employee life insurance, group life insurance, accidental death and travel accident insurance plans and programs) to the same
extent and on the same terms and conditions as peer executives; provided, however, that nothing in this Agreement shall impose on the Company any obligation to offer to the Executive participation in any stock, stock option, restricted
stock, bonus or other incentive award, plan, practice, policy or program. The term “peer executives” means the Executive Chairman and Senior Vice Presidents of the Company, if such positions exist, and if such positions do not exist, the
definition of the term “peer executives” shall be determined by the Board or the Committee in good faith. 

  
 -2- 

 (d)     Expenses. During the Employment Period, the Executive shall be
entitled to receive reimbursement for all reasonable travel and other expenses incurred by the Executive in carrying out the Executive’s duties under this Agreement; provided that the Executive complies with the policies, practices and
procedures of the Company for submission of expense reports, receipts, or similar documentation of such expenses. 

4.    Termination of Employment. 

(a)    Death or Permanent Disability. The Executive’s employment shall terminate automatically upon the
Executive’s death during the Employment Period. The Company or Holdco shall be entitled to terminate the Executive’s employment because of the Executive’s Permanent Disability during the Employment Period. “Permanent
Disability” means that the Executive (i) is unable to perform his duties under this Agreement by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for
a continuous period of not less than 12 months; (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12
months receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Company; or (iii) has been determined to be totally disabled by the Social Security
Administration. A termination of the Executive’s employment by the Company or Holdco for Permanent Disability shall be communicated to the Executive by written notice and shall be effective on the 30th day after receipt of such notice by
the Executive (the “Disability Effective Date”), unless the Executive returns to full-time performance of the Executive’s duties in accordance with the provisions of Section 2 before such 30th day. In the event of a dispute as to whether the Executive has suffered a Permanent Disability, the final determination shall be made by a licensed physician selected by the Board and acceptable to
the Executive in the Executive’s reasonable judgment. 
 (b)    Other than Death or Disability. The Company
or Holdco may terminate the Executive’s employment at any time during the Employment Period at any time with or without Cause upon notice to the Executive. 

(c)    Good Reason. The Executive may terminate his employment at any time during the Employment Period for Good
Reason, upon written notice to the Company setting forth in reasonable detail the nature of such Good Reason, as set forth below. For purposes of this Agreement, “Good Reason” is defined as any one or more of the following: any
attempt to relocate the Executive to a work location that is more than 100 miles from the Company’s offices in Elmsford, New York; any material diminution in the nature or scope of the Executive’s responsibilities or duties as defined
under this Agreement (provided that each of (a) a change in reporting relationships resulting from the direct or indirect control of the Company or Holdco (or a successor corporation) by another corporation or other person(s) and (b) any
diminution of the business of the Company or Holdco or any of their respective affiliates, shall not be deemed to constitute “Good Reason”); any material breach by the Company or any affiliate of the Company of any provision of this
Agreement or any other written agreement with the Executive, which breach is not cured within twenty (20) days following written notice by the Executive to the Company; or any material failure of the Company to provide the Executive with at
least the 

  
 -3- 

 
Annual Base Salary and/or any other compensation or benefits in accordance with the terms of Section 3 hereof, other than an inadvertent failure which is cured within ten (10) business
days following written notice from the Executive specifying in reasonable detail the nature of such failure. Notwithstanding the foregoing, the appointment of an interim Chief Executive Officer during any period of the Executive’s disability
(which may potentially result in a Permanent Disability) will not be considered “Good Reason” (so long as the Executive continues to be compensated pursuant to the terms of this Agreement), until the occurrence of a Permanent
Disability as defined in Section 4(a). 
 (d)    Change in Control. If there occurs a “Change in
Control” (as hereinafter defined) during the Employment Period, and the Company terminates the Executive’s employment without Cause or the Executive terminates his employment for Good Reason, in either case, within six (6) months
prior to, or twenty-four (24) months following, the consummation of such Change in Control (the “Change in Control Protection Period”), the Executive shall be deemed to have had a “Change in Control
Termination”. As used herein, a “Change in Control” shall be deemed to have occurred upon the occurrence of any of the following events: 

(i)    a change in the ownership of Holdco within the meaning of Treasury Regulation Section 1.409A-3(i)(5)(v) as in effect on the date hereof; 

(ii)    a change in the effective control of Holdco within the meaning of Treasury Regulation Section 1.409A-3(i)(5)(vi)(2) as in effect on the date hereof; or 

(iii)    a change in the ownership of all or substantially all of Holdco’s assets within the meaning
of Treasury Regulation Section 1.409A-3(i)(5)(vii) as in effect on the date hereof. 

Notwithstanding anything to the contrary set forth in d(i)(ii) or (iii) hereinabove, no Change in Control shall be deemed to have
occurred so long as affiliates of Thomas H. Lee Partners continue to own at least 50% of the stock of Holdco in the aggregate. 

(e)    Date of Termination. The “Date of Termination” means the date of the Executive’s
death, the Disability Effective Date or the date on which the termination of the Executive’s employment by the Company and Holdco, or by the Executive, is effective, as the case may be, including by reason of the expiration of the Employment
Period. 
 5.    Obligations of the Company Upon Termination. 

(a)    By the Company Upon the Executive’s Death or Permanent Disability. If the Executive dies during the
Employment Period or the Company or Holdco terminates the Executive’s employment due to the Executive’s Permanent Disability, the Company shall pay the Executive or his legal representative: 

(i)     the Executive’s accrued but unpaid cash compensation (the “Accrued Obligations”), which
shall equal the sum of (1) any portion of the Executive’s Annual Base Salary through the Date of Termination that has not yet been paid; (2) any Annual Bonus that the 

  
 -4- 

 
Executive has earned for a prior full calendar year that has ended prior to the Date of Termination but which has not yet been calculated and paid; and (3) any accrued but unpaid vacation
pay; and 
 (ii)    a pro rata Annual Bonus for the year of termination, calculated and paid in accordance with
Section 3(b). 
 The Accrued Obligations shall be paid in cash within thirty (30) days of the Date of Termination. Notwithstanding
anything to the contrary set forth herein, the Executive shall not be entitled any payment pursuant to subsection (ii) of this Section 5(a) or Section 9(d)(i) unless the Executive (or the Executive’s beneficiary previously
designated in writing to the Company or, if no such beneficiary has been so designated, the Executive’s estate, as applicable) shall have, at the written request of the Company or Holdco, executed a release of any and all legal claims in the
form attached hereto as Exhibit A (which such form may be modified by the Company to the extent necessary to reflect execution by a person other than the Executive) (the “Release”) no later than forty-five (45) days following
the Date of Termination (which period shall be sixty-five (65) days following the Date of Termination in the case of a termination of the Executive’s employment due to his death) and shall not have revoked such release in accordance with
its terms. 
 (b)    By the Company for Cause. If the Executive’s employment is terminated by the Company or
Holdco for “Cause” (as hereinafter defined), then the Executive shall be entitled to only the payment of the Accrued Obligations which shall be paid to the Executive in cash in a lump sum within thirty (30) days of the Date of
Termination and neither the Company nor Holdco shall have any further obligation under this Agreement. For purposes of this Agreement, “Cause” shall mean (1) conviction of the Executive by a court of competent jurisdiction of a
felony (excluding felonies under the Vehicle and Traffic Code of the State of New York or any similar law of another state within the United States of America); (2) any act of intentional fraud in connection with his duties under this Agreement;
(3) any act of gross negligence or willful misconduct with respect to the Executive’s duties under this Agreement; and (4) any act of willful disobedience in violation of specific reasonable directions of the Board consistent with the
Executive’s duties. 
 (c)    By the Company for any reason other than Cause or by the Executive for Good
Reason. If the Executive’s employment is terminated during the Employment Period (i) by the Company or Holdco other than for Cause, death or Permanent Disability or (ii) by the Executive for Good Reason, in each case, except if
such termination is a Change in Control Termination, the Company shall pay to the Executive (A) the Accrued Obligations, (B) the Executive will also be entitled to receive a pro rata Annual Bonus for the year of termination, calculated and
paid in accordance with Section 3(b), and (C) a severance payment (the “Severance Payment”), in an amount equal to the product of (x) the Executive’s then current Annual Base Salary multiplied by (y) the
number of years in the post employment Restriction Period, calculated in accordance with Section 9(d) hereinafter. Notwithstanding anything to the contrary set forth herein, the Executive shall not be entitled to any payment pursuant to clauses
(B) or (C) of this Section 5(c) unless the Executive shall have, at the written request of the Company or Holdco, executed the Release no later than forty-five (45) days following the Date of Termination and shall not have revoked
such release in accordance with its terms. 

  
 -5- 

 (d)     Change in Control Termination. Notwithstanding anything to the
contrary set forth herein, in the event of a Change in Control Termination: 
 (i)     the Company shall
pay to the Executive the Accrued Obligations; 
 (ii)     the Company shall pay to the Executive: 

(A)     an amount equal to two and one-half (2 1/2) times the sum of
(1) Executive’s then current Annual Base Salary and (2) the target Annual Bonus, 
 (B)     an amount
equal to a pro rata Annual Bonus for the year of termination, calculated and paid in accordance with Section 3(b), and 
 (C)
    provided that the Executive timely elects to continue his coverage in the Company’s group health plan under the federal law known as “COBRA”, a monthly amount equal to that portion of the monthly health
premiums for such coverage paid by the Company on behalf of the Executive prior to the date of the Change in Control Termination until the date that is twenty-four (24) months following the date of the Change in Control Termination (the
“Health Continuation Benefits”); and 
 (iii)     any stock options, restricted stock, restricted stock
units, performance stock units or similar awards granted on or after January 1, 2014 (or any awards or rights issued in exchange for such grants in connection with a Change in Control or otherwise) shall be treated as follows: (A) such
awards or rights that vest solely based on the Executive’s continued service over time shall immediately become fully vested as of the date of the Change in Control Termination and (B) such awards or rights that vest upon the occurrence of
specified performance metrics, shall be treated as earned and vest as follows: (1) if the full performance period has elapsed as of the date of the Change in Control Termination, such awards and rights shall be earned based on actual
achievement of the applicable performance goals, as provided in the applicable award agreement and shall immediately become vested without pro-ration and (2) otherwise, such awards and rights shall be
earned based on assumed achievement of the applicable performance goals at 100% of the performance target, as provided in the applicable award agreement, and shall immediately vest as to a prorated portion of each such award or right based on the
number of days of the Executive’s actual employment or other service with the Company prior to the Change in Control Termination during the applicable full performance period; provided, that, if the Executive does not experience a Change in
Control Termination prior to the end of the applicable original performance period, such awards and rights shall be earned based on assumed achievement of the applicable performance goals at 100% of the performance target, as provided in the
applicable award agreement, and shall be eligible to vest as of the last day of the applicable original performance period without pro-ration, subject to the terms of the applicable award agreement. Any stock
options, restricted stock, restricted stock units, performance stock units or similar awards granted on or after January 1, 2014 (or any awards or rights issued in exchange for such grants in connection with a Change in Control or otherwise)
that do not vest after application of the preceding sentence shall be immediately 

  
 -6- 

 
forfeited without payment due thereon. For the avoidance of doubt, upon the occurrence of a Change in Control Termination, the vesting of any stock option granted prior to January 1, 2014
(or awards or rights issued in exchange therefor) shall be determined pursuant to the terms of the applicable award agreement. 

Notwithstanding the foregoing, in the event that the Health Continuation Benefits would subject the Executive or the Company to any tax or
penalty under the ACA or Section 105(h) of the Code (as defined below), or applicable subsequent regulations, guidance or successor statutes, the Executive and the Company agree to work together in good faith to restructure the Health
Continuation Benefits in a manner that avoids such adverse consequences. All amounts payable hereunder (except the Annual Bonus which is payable in accordance with Section 3(b), the Accrued Obligations, which shall be calculated and paid in a
lump sum in cash within thirty (30) days of the date of the Change in Control Termination and the Health Continuation Benefits, which shall be paid as described above in this Section 5(d)) shall be paid in cash in a lump sum on the date
that is the later of sixty (60) days following the date of the Change in Control Termination or sixty (60) days following the consummation of the Change in Control. Notwithstanding anything to the contrary set forth herein, the Executive
shall not be entitled to any payment or benefit pursuant to clauses (ii) or (iii) of this Section 5(d) unless the Executive shall have, at the written request of the Company or Holdco, executed the Release no later than forty-five
(45) days following the date of the Change in Control Termination and shall not have revoked such release in accordance with its terms. 

(e)    By the Executive other than for Good Reason. If during the Employment Period the Executive terminates his
employment with the Company and Holdco other than for Good Reason, the Company shall pay the Accrued Obligations to the Executive in a lump sum in cash within thirty (30) days of the Date of Termination and neither the Company nor Holdco shall
have any further obligation under this Agreement. 
 (f)    Expiration of the Term. Unless otherwise terminated
pursuant to any of the foregoing clauses of this Section 5, the Executive’s employment hereunder will automatically terminate at the expiration of the Employment Period and the Company shall pay to the Executive (i) the Accrued
Obligations, and (ii) the Annual Bonus for the year in which the Employment Period ends; provided, however, that if the Company allows the Executive’s employment to terminate due to a expiration of the Employment Period occurring
during the Change in Control Protection Period, the Executive will be deemed to have had a Change in Control Termination and will be entitled to the payments and benefits described in Section 5(d) above and shall not otherwise receive payment
under this Section 5(f). The Annual Bonus shall be calculated and paid in accordance with Section 3(b) and the Accrued Obligations shall be paid in a lump sum in cash within thirty (30) days of the Date of Termination. Notwithstanding
anything to the contrary set forth herein, the Executive shall not be entitled any payment pursuant to clause (ii) of this Section 5(f) unless the Executive shall have, at the written request of the Company, executed the Release no later
than forty-five (45) days following the Date of Termination and shall not have revoked such release in accordance with its terms. Upon expiration of the Employment Period, no Severance Payment will be due and no further Restriction Period shall
apply. 

  
 -7- 

 (g)    Continuing Rights under Benefits Programs. Notwithstanding
anything to the contrary set forth herein, upon termination of employment for any reason other than death, termination by the Company for Cause, or termination by the Executive without Good Reason, the Executive shall be entitled to receive at the
Executive’s expense, continued coverage under the Company’s health insurance policy comparable to the family coverage received by the Executive at the Date of Termination, so long as the Company’s Plan at the Date of Termination and
thereafter permits coverage of former employees. 
 6.     Section 409A. The parties intend for the compensation
provided under this Agreement to comply with, or be exempt from, the provisions of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) (together with the regulations thereunder,
“Section 409A”). Notwithstanding the foregoing, in no event shall the Company, Holdco or any of their respective affiliates have any liability to the Executive or to any other person claiming rights under this
Agreement relating to the failure or alleged failure of any payment or benefit under this Agreement to comply with, or be exempt from, the provisions of Section 409A. 

(a)    Definitions. For purposes of this Agreement, all references to “termination of employment” and
similar or correlative phrases shall be construed to require a “separation from service” (as defined in Section 1.409A-1(h) of the Treasury regulations after giving effect to the presumptions
contained therein), and the term “specified employee” means an individual determined by Holdco to be a specified employee under Treasury regulation Section 1.409A-1(i). 

(b)    Certain Delayed Payments. If any payment or benefit hereunder constituting “nonqualified deferred
compensation” subject to Section 409A would be subject to subsection (a)(2)(B)(i) of Section 409A (relating to payments made to “specified employees” of publicly-traded companies upon separation from service), any such
payment or benefit to which the Executive would otherwise be entitled during the six (6) month period following the Executive’s separation from service will instead be provided or paid without interest on the first business day following
the expiration of such six (6) month period, or if earlier, the date of the Executive’s death. 

(c)    Separate Payments. Each payment made under this Agreement shall be treated as a separate payment. 

(d)    Reimbursements. Notwithstanding anything to the contrary in this Agreement, any reimbursement that
constitutes or could constitute nonqualified deferred compensation subject to Section 409A will be subject to the following additional requirements: (i) the expenses eligible for reimbursement will have been incurred during the term of
this Agreement, (ii) the amount of expenses eligible for reimbursement during any calendar year will not affect the expenses eligible for reimbursement in any other taxable year; (iii) reimbursement will be made not later than
December 31 of the calendar year following the calendar year in which the expense was incurred; and (iv) the right to reimbursement will not be subject to liquidation or exchange for any other benefit. 

7.    Full Settlement. The Company’s obligations to make the payments provided for in, and otherwise to
perform its obligations under, this Agreement shall not be affected by any 

  
 -8- 

 
set-off, counterclaim, recoupment, defense or other claim, right or action that the Company may have against the Executive or others. In no event shall the
Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement and such amounts shall not be reduced, regardless of whether the
Executive obtains other employment. 
 8.    Confidential Information. The Executive shall hold in a fiduciary
capacity for the benefit of the Company and Holdco all secret or confidential information, knowledge or data relating to the Company, Holdco or any company affiliated with the Company or Holdco and their respective businesses that the Executive
obtains during the Executive’s employment by the Company and Holdco (whether before, during or after the Employment Period) and that is not public knowledge (other than as a result of the Executive’s violation of this Section 8)
(“Confidential Information”). The Executive shall not communicate, divulge or disseminate Confidential Information at any time during or after the Executive’s employment with the Company and Holdco, except with the prior
written consent of the Company or as otherwise required by law. For the avoidance of doubt, (a) nothing contained in the Agreement or any other agreement containing confidentiality provisions or other restrictive covenants in favor of any the
Company or any of its affiliates or subsidiaries shall be construed to limit, restrict or in any other way affect the Executive’s communicating with any governmental agency or entity, or communicating with any official or staff person of a
governmental agency or entity, concerning matters relevant to the governmental agency or entity and (b) the Executive will not be held criminally or civilly liable under any federal or state trade secret law for disclosing a trade secret
(i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law, or (ii) in a complaint or other
document filed under seal in a lawsuit or other proceeding; provided that notwithstanding this immunity from liability, the Executive may be held liable if the Executive unlawfully accesses trade secrets by unauthorized means. 

9.    Noncompetition; Nonsolicitation. 

(a)    Non-Competition. During the Employment Period, and following
termination of the Executive’s employment with the Company, Holdco and any of their affiliates, during the “Restriction Period” (as hereinafter defined), the Executive shall not directly or indirectly participate in or permit his name
directly or indirectly to be used by or become associated with (including as an advisor, representative, agent, promoter, independent contractor, provider of personal services or otherwise) any person, corporation, partnership, firm, association or
other enterprise or entity (a “person”) that is, or intends to be, engaged in any business which is in competition with any business of the Company, Holdco or any of their respective subsidiaries or controlled affiliates in any geographic
area in which the Company, Holdco or any of their respective subsidiaries or controlled affiliates operate, compete or are engaged in such business or at such time intend so to operate, compete or become engaged in such business (a
“Competitor”); provided, however, that the foregoing will not prohibit the Executive from participating in or becoming associated with a person if (i) less than 10% of the consolidated gross revenues of such
person, together with its affiliates, derive from activities or businesses that are in competition with any business of the Company or any of its subsidiaries or controlled affiliates (a “Competitive Business”) and (ii) the
Executive does not, directly or 

  
 -9- 

 
indirectly, participate in, become associated with, or otherwise have responsibilities that relate to the conduct or operations of, any Competitive Business that is conducted by such person or a
division, group, or subsidiary or affiliate of such person. For purposes of this Agreement, the term “participate” includes any direct or indirect interest, whether as an officer, director, employee, partner, sole proprietor, trustee,
beneficiary, agent, representative, independent contractor, consultant, advisor, provider of personal services, creditor, or owner (other than by ownership of less than five percent of the stock of a publicly-held corporation whose stock is traded
on a national securities exchange or in an over-the-counter market). 

(b)    Non-Solicitation. During the Employment Period, and during the
Restriction Period following termination of employment, the Executive shall not, directly or indirectly, encourage or solicit, or assist any other person or firm in encouraging or soliciting, any person that during the three-year period preceding
such termination of the Executive’s employment with the Company and Holdco (or, if such action occurs during the Employment Period, on the date such action was taken) is or was engaged in a business relationship with the Company or Holdco, any
of their respective subsidiaries or controlled affiliates to terminate its relationship with the Company or Holdco or any of their respective subsidiaries or controlled affiliates or to engage in a business relationship with a Competitor. 

(c)    No Hire. During the Employment Period, and during the Restriction Period following termination of
employment, the Executive will not, except with the prior written consent of the Company, directly or indirectly, induce any employee of the Company, Holdco or any of their respective subsidiaries or controlled affiliates to terminate employment
with such entity, and will not, directly or indirectly, either individually or as owner, agent, employee, consultant or otherwise, employ, offer employment or cause employment to be offered to any person (including employment as an independent
contractor) who is or was employed by the Company, Holdco or any of their respective subsidiaries or controlled affiliates unless such person shall have ceased to be employed by such entity for a period of at least twelve months. For purposes of
this Section 9(c), “employment” shall be deemed to include rendering services as an independent contractor and “employees” shall be deemed to include independent contractors. 

(d)    Restriction Period. The term “Restriction Period” as used herein, shall mean the following
periods: 
 (i)    In the event the Employment Period is terminated by (1) the Company or Holdco
prior to its expiration (except as provided in Section 9(d)(iii) hereinafter) other than (A) for Cause or (B) due to the Executive’s death or Permanent Disability, or (2) the Executive for Good Reason, the Company
shall elect, in its sole and absolute discretion, to limit the Restriction Period following termination to a one, two or three-year period (but no event less than one year), and the Company shall pay the Executive the Severance Payment (calculated
based on the number of years of the elected Restriction Period). If no Restriction Period election is made, the Company shall be deemed to have elected a three-year Restriction Period. The Severance Payment shall be payable in a lump sum on the date
that is sixty (60) days following the Date of Termination. 

  
 -10- 

 (ii)    In the event the Executive is terminated by the
Company or Holdco for Cause, or if the Executive resigns without Good Reason, then the Restriction Period shall be three years following termination of employment and no Severance Payment shall be payable to the Executive. 

(iii)     Notwithstanding anything to the contrary set forth herein, in the event of a Change in Control
Termination (or a deemed Change in Control Termination under Section 5(f)), the Restriction Period shall be three years following the date of such Change in Control Termination. 

(e)    Return of Confidential Information. Promptly following the Executive’s termination of employment,
including due to expiration of the Employment Period, the Executive shall return to the Company all property of the Company, Holdco and their respective subsidiaries and affiliates, and all copies thereof, in the Executive’s possession or under
his control, including, without limitation, all Confidential Information in whatever media such Confidential Information is maintained. 

(f)    Injunctive Relief. The Executive acknowledges and agrees that the Restriction Period and the covenants and
obligations of the Executive in Section 8 and this Section 9 with respect to non-competition, nonsolicitation and confidentiality and with respect to the property of the Company and its subsidiaries
and controlled affiliates, and the territories covered thereby, are fair and reasonable and the result of negotiation. The Executive further acknowledges and agrees that the covenants and obligations of the Executive in Section 8 and this
Section 9 with respect to noncompetition, nonsolicitation and confidentiality and with respect to the property of the Company, Holdco and their respective subsidiaries and controlled affiliates, and the territories covered thereby, relate to
special, unique and extraordinary matters and that a violation of any of the terms of such covenants and obligations will cause the Company, Holdco and their respective subsidiaries and affiliates irreparable injury for which adequate remedies are
not available at law. Therefore, the Executive agrees that the Company and Holdco shall be entitled to an injunction, restraining order or such other equitable relief as a court of competent jurisdiction may deem necessary or appropriate to restrain
the Executive from committing any violation of such covenants and obligations. These injunctive remedies are cumulative and are in addition to any other rights and remedies the Company and Holdco may have at law or in equity. If, at the time of
enforcement of Section 8 and/or this Section 9, a court holds that any of the restrictions stated herein are unreasonable under circumstances then existing, the parties hereto agree that the maximum period, scope, and/or geographical area
legally permissible under such circumstances will be substituted for the period, scope and/or area stated herein. 

10.    Successors. 

(a)    This Agreement is personal to the Executive and shall not be assignable by the Executive. This Agreement shall inure
to the benefit of and be enforceable by the Executive’s legal representatives and heirs and successors. 

(b)    This Agreement shall inure to the benefit of and be binding upon Holdco, the Company and their respective
successors and assigns. 

  
 -11- 

 11.    Section 280G. In the event that the Company undergoes a change
in control after it (or any affiliate of the Company, including Holdco, that would be treated, together with the Company, as a single corporation under Section 280G of the Code and the regulations thereunder) has stock that is readily tradeable
on an established securities market (within the meaning of Section 280G of the Code and the regulations thereunder), if all, or any portion, of the payments provided under this Agreement, either alone or together with other payments or benefits
which the Executive receives or is entitled to receive from the Company or an affiliate, could constitute an “excess parachute payment” within the meaning of Section 280G of the Code, then the Executive shall be entitled to receive
(i) an amount limited so that no portion thereof shall fail to be tax deductible under Section 280G of the Code (the “Limited Amount”), or (ii) if the amount otherwise payable hereunder (without regard to clause (i))
reduced by the excise tax imposed by Section 4999 of the Code and all other applicable federal, state and local taxes (with income taxes all computed at the highest applicable marginal rate) is greater than the Limited Amount reduced by all
taxes applicable thereto (with income taxes all computed at the highest marginal rate), the amount otherwise payable hereunder. If it is determined that the Limited Amount will maximize the Executive’s
after-tax proceeds, payments and benefits shall be reduced to equal the Limited Amount in the following order: (i) first, by reducing cash severance payments, (ii) second, by reducing other payments
and benefits to which Q&A 24(c) of Section 1.280G-1 of the Treasury Regulations does not apply, and (iii) finally, by reducing all remaining payments and benefits, with all such reductions done
on a pro rata basis. All determinations made pursuant this Section 11 will be made at the Company’s expense by the independent public accounting firm most recently serving as the Company’s outside auditors or such other accounting or
benefits consulting group or firm as the Company may designate. 
 12.    Miscellaneous. 

(a)    This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, without
reference to principles of conflict of laws. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may not be amended or modified except by a written agreement executed by the parties
hereto or their respective heirs, successors and legal representatives. 
 (b)    All notices and other communications
under this Agreement shall be in writing and shall be given by hand delivery to the other party or by overnight courier or by 

  
 -12- 

 
registered or certified mail, return receipt requested, postage prepaid, or by facsimile (with receipt confirmation), addressed as follows: 

 

			
	If to the Executive:	  	James M. Harrison
		  	At his most recent address
		  	shown in the Company’s records
		
	If to the Company:	  	Party City Holdings Inc.
		  	80 Grasslands Road
		  	Elmsford, NY 10523
		  	Attention: Corporate Secretary
		  	Fax no.: (914) 345-2056

 or to such other address as either party furnishes to the other in writing in accordance with this Section 12(b). Notices
and communications shall be effective when actually received by the addressee. 
 (c)    The invalidity or
unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. 

(d)    Notwithstanding any other provision of this Agreement, the Company may withhold from amounts payable under this
Agreement all federal, state, local and foreign taxes that are required to be withheld by applicable laws or regulations. In addition, the obligations of the Company under this Agreement shall be conditional on compliance with this
Section 12(d), and the Company shall, to the extent permitted by law, have the right to deduct any such taxes from any payment otherwise due to the Executive. 

(e)    Any party’s failure to insist upon strict compliance with any provision of, or to assert any right under, this
Agreement shall not be deemed to be a waiver of such provision or right or of any other provision of or right under this Agreement. 

(f)    The Executive acknowledges that this Agreement, together with the Exhibit hereto (and the other agreements referred
to herein and therein), supersedes all other agreements and understandings, both written and oral, between the Executive, on one hand, and the Company and Holdco, on the other, with respect to the subject matter hereof, including, without
limitation, the Prior Employment Agreement. Upon effectiveness of this Agreement, the Prior Agreement shall terminate and be of no further force and effect. 

(g)    This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which
shall together constitute one and the same instrument. 
 (h)    Provisions of this Agreement shall survive any
termination of employment if so provided herein or if necessary or desirable to accomplish the purposes of other surviving provisions, including, without limitation, the obligations of the Executive under Sections 8 and 9 hereof. 

[Remainder of Page Intentionally Left Blank] 

  
 -13- 

 IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and, pursuant
to the authorization of their respective boards of directors, the Company and Holdco have each caused this Agreement to be executed in its name on its behalf, all as of the day and year first above written. 

 

					
	PARTY CITY HOLDINGS INC.
		
	By:	 	 /s/ Daniel Sullivan

		 	Name:	 	Daniel Sullivan
		 	Title:	 	Chief Financial Officer & Executive Vice President
	
	PARTY CITY HOLDCO INC.
	
	 /s/ Daniel Sullivan

		 	Name:	 	Daniel Sullivan
		 	Title:	 	Chief Financial Officer & Executive Vice President
	
	 /s/ James M. Harrison

	JAMES M. HARRISON

  
 [Signature Page to
Employment Agreement] 

 Exhibit A 

FORM OF RELEASE OF CLAIMS 

This Release of Claims is provided by me, James M. Harrison (or by my designated beneficiary, in the event of my death during my employment),
pursuant to the Employment Agreement between me, Party City Holdings, Inc. (the “Company”) and Party City Holdco Inc. (“Holdco”) dated as of March 12, 2018 (the “Employment Agreement”). 

This Release of Claims is given in consideration of the severance benefits to be provided to me (or, in the event of my death during my
employment, to my designated beneficiary) in connection with the termination of my employment under Section 5 of the Employment Agreement (the “Separation Payments”), which are conditioned on my signing this Release of Claims and to
which I am not otherwise entitled, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged. On my own behalf and that of my heirs, executors, administrators, beneficiaries, representatives and
assigns, and all others connected with or claiming through me, I hereby release and forever discharge the Company from any and all causes of action, rights or claims of any type or description, known or unknown, which I have had in the past, now
have or might have, through the date of my signing of this Release of Claims. This includes, without limitation, any and all causes of action, rights or claims in any way resulting from, arising out of or connected with my employment by the Company
or the termination of that employment or pursuant to any federal, state or local law, regulation or other requirement, including without limitation Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Age
Discrimination in Employment Act, the fair employment practices statutes of the state or states in which I have provided services to the Company or any other federal, state, local or foreign law, all as amended, any contracts of employment, any tort
claims, or any agreements, plans or policies. Nothing in this Release of Claims shall be construed to prohibit you from filing a charge with or participating in any investigation or proceeding conducted by the federal Equal Employment Opportunity
Commission or a comparable state or local agency, except that you hereby agree to waive your right to recover monetary damages or other individual relief in any charge, complaint or lawsuit filed by you or by anyone else on your behalf. 

For purposes of this Release of Claims, the word “Company” always includes the Company, Holdco the subsidiaries and affiliates of
the Company or Holdco and all of their respective past, present and future officers, directors, trustees, shareholders, employees, employee benefit plans and any of the trustees or administrators thereof, agents, general and limited partners,
members, managers, investors, joint venturers, representatives, predecessors, successors and assigns, and all others connected with any of them, both individually and in their official capacities. 

Excluded from the scope of this Release of Claims is any rights to benefits that were vested under the Company’s employee benefit plans
on the date on which my employment with the Company terminated, in accordance with the terms of such plans. 

  
 -i- 

 In signing this Release of Claims, I give the Company assurance that I have returned to the
Company any and all documents, materials and information related to the business, whether present or otherwise, of the Company and all keys and other property of the Company that were in my possession or control, all as required by and consistent
with Section 9(e) of the Employment Agreement. I agree that I will not, for any purpose, attempt to access or use any computer or computer network or system of the Company, including without limitation their electronic mail systems. I further
acknowledge that I have disclosed to the Company all passwords necessary or desirable to enable the Company to access all information which I have password-protected on its computer network or system. 

In signing this Release of Claims, I agree that I have been paid in full all compensation due to me, whether for services rendered by me to
the Company or otherwise, through the date on which my employment with the Company terminated and that, exclusive only of the Separation Payments, no further compensation of any kind shall be due to me by the Company, whether arising under the
Employment Agreement or otherwise, in connection with my employment or the termination thereof. I also agree that except for any right I and my eligible dependents may have to continue participation in the Company’s health and dental plans
under the federal law commonly known as COBRA, my right to participate in any employee benefit plan of the Company will be determined in accordance with the terms of such plan. 

I acknowledge that my eligibility for the Separation Payments is not only contingent on my signing and returning this Release of Claims to the
Company in a timely manner and not revoking it thereafter, but also is subject to my compliance with the covenants contained in the Employment Agreement. 

In signing this Release of Claims, acknowledge that I have not relied on any promises or representations, express or implied, that are not set
forth expressly in this Release of Claims. I further acknowledge that I am waiving and releasing any rights I may have under the Age Discrimination in Employment Act of 1967, as amended (“ADEA”), and that this waiver and release is knowing
and voluntary and is being done with a full understanding of its terms. I agree that the consideration given for this wavier and release is in addition to anything of value to which I was already entitled. I further acknowledge that I have been
advised by this writing as required by the ADEA that: 
 1.    I have the right to and am advised by the Company to
consult with an attorney prior to executing this Release of Claims; and I acknowledge that I have had sufficient time to consider this Release of Claims and to consult with an attorney, if I wished to do so, or to consult with any other person of my
choosing before signing; 
 2.    I may not sign this Release of Claims prior to the termination of my employment, but
that I may consider the terms of this Release of Claims for up to twenty-one days (or, if the Company so instructs me in writing, for up to forty-five days) from the later of the date my employment with the
Company terminates or the date I receive this Release of Claims; 
 3.     I have seven (7) days following
execution of this Release of Claims to revoke this Release of Claims; and 

  
 -ii- 

 4.    This Release of Claims shall not be effective until the revocation
period has expired. 
 Intending to be legally bound, I have signed this Release of Claims under seal as of the date written below. 

 

									
	Signature:	 	  
	 		 	Date signed:	 	                                     
                       

 

			
	 Party City Holdings Inc.

	
	
                    

	 Name:
	 	
	 Title:
	 	
	
	 Party City Holdco Inc.

	
	
                    

	 Name:
	 	
	 Title:
	 	

  
 -iii-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00280-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00280-of-00352.parquet"}]]