Document:

Exhibit 4.4

 

EMPLOYEE SHAREHOLDERS’ AGREEMENT

 

dated as of

 

[   ], 2018

 

among

 

VICTORY CAPITAL HOLDINGS, INC.

 

and

 

THE EMPLOYEE SHAREHOLDERS NAMED HEREIN

 

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
PAGE
    
	
 
    	
 
    	
 
    
	
ARTICLE 1.   DEFINITIONS
    	
1
    
	
 
    	
 
    	
 
    
	
Section 1.01.
    	
Definitions
    	
1
    
	
Section 1.02.
    	
Other Definitional and   Interpretative Provisions
    	
4
    
	
 
    	
 
    	
 
    
	
ARTICLE 2.   VOTING AGREEMENT
    	
4
    
	
 
    	
 
    	
 
    
	
Section 2.01.
    	
Irrevocable Proxy and   Power of Attorney
    	
4
    
	
 
    	
 
    	
 
    
	
ARTICLE 3.   EMPLOYEE SHAREHOLDERS COMMITTEE
    	
5
    
	
 
    	
 
    	
 
    
	
Section 3.01.
    	
Initial Membership and   Composition
    	
5
    
	
Section 3.02.
    	
Membership Criteria
    	
6
    
	
Section 3.03.
    	
Replacement/Removal of   Committee Members
    	
6
    
	
Section 3.04.
    	
Determinations of and   Actions by the Employee Shareholders Committee
    	
6
    
	
Section 3.05.
    	
Vote Required for   Actions
    	
7
    
	
Section 3.06.
    	
Liability and Indemnity
    	
7
    
	
 
    	
 
    	
 
    
	
ARTICLE 4.   TRANSFER AND ISSUANCE OF SHARES
    	
7
    
	
 
    	
 
    	
 
    
	
Section 4.01.
    	
Restrictions on   Transfer of Shares
    	
7
    
	
Section 4.02.
    	
Issuance of Additional Common   Stock
    	
8
    
	
Section 4.03.
    	
Amendments
    	
8
    
	
 
    	
 
    	
 
    
	
ARTICLE 5.   REPRESENTATIONS AND WARRANTIES AND COVENANTS
    	
8
    
	
 
    	
 
    	
 
    
	
ARTICLE 6. OTHER   AGREEMENTS OF THE PARTIES
    	
10
    
	
 
    	
 
    	
 
    
	
Section 6.01.
    	
Adjustment upon Changes   in Capitalization; Adjustments upon Changes of Control
    	
10
    
	
 
    	
 
    	
 
    
	
ARTICLE 7.   MISCELLANEOUS
    	
10
    
	
 
    	
 
    	
 
    
	
Section 7.01.
    	
Term of the Agreement;   Termination of Certain Provisions
    	
10
    
	
Section 7.02.
    	
Headings
    	
11
    
	
Section 7.03.
    	
Entire Agreement
    	
11
    
	
Section 7.04.
    	
Addresses and Notices
    	
11
    
	
Section 7.05.
    	
Governing Law; Arbitration;   Waiver of Jury Trial
    	
12
    
	
Section 7.06.
    	
Severability
    	
13
    
	
Section 7.07.
    	
Successors, Assigns
    	
13
    
	
Section 7.08.
    	
Waivers; Amendments
    	
13
    
	
Section 7.09.
    	
Counterparts;   Effectiveness
    	
14
    
	
Section 7.10.
    	
Remedies; Specific   Performance
    	
14
    
	
Section 7.11.
    	
Further Assurances
    	
14
    

 

i

 

	
Section 7.12.
    	
Third Party   Beneficiaries
    	
14
    
	
Section 7.13.
    	
No Rights to Continued   Relationship
    	
14
    

 

	
Exhibit A
    	
Joinder
    
	
Exhibit B
    	
Spousal Consent
    
	
Schedule A
    	
Covered Persons
    

 

ii

 

EMPLOYEE SHAREHOLDERS’ AGREEMENT

 

EMPLOYEE SHAREHOLDERS’ AGREEMENT dated as of [   ], 2018 (this “Agreement”) among Victory Capital Holdings, Inc., a Delaware corporation (the “Company”), each Person listed on Schedule A, as such Schedule A may be amended from time to time in accordance with the terms of this Agreement (each such Person, a “Covered Person”), executing this Agreement or a joinder (the “Joinder”) substantially in the form attached as Exhibit A hereto.

 

WITNESSETH:

 

WHEREAS, the Covered Persons are employees of the Company or its Subsidiaries who own shares of Common Stock or the right to acquire shares of Common Stock and will include future employees of the Company or its Subsidiaries to whom the Company has issued shares of Common Stock or the right to acquire shares of Common Stock;

 

WHEREAS, on the date hereof, the Company has closed its initial public offering (the “IPO”) of the Class A Common Stock; and

 

WHEREAS, in connection with the IPO, the parties to this Agreement deem it in their best interests to agree to form an Employee Shareholders Committee having the powers set forth in this Agreement to facilitate the exercise of voting rights relating to the Covered Common Stock.

 

NOW, THEREFORE, in consideration of the covenants and agreements contained herein, the parties hereto agree as follows:

 

ARTICLE 1.

 

DEFINITIONS

 

Section 1.01.                          Definitions.  The following terms, as used herein, have the following meanings:

 

A “beneficial owner” of a security includes any Person who, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise has or shares: (a) voting power, which includes the power to vote, or to direct the voting of, such security (for the avoidance of doubt, including with respect to unvested restricted stock), and/or (b) investment power, which includes the power to dispose, or to direct the disposition of, such security, but for purposes of this Agreement a Person shall not be deemed a beneficial owner of Common Stock solely by virtue of the application of Exchange Act Rule 13d-3(d) or Exchange Act Rule 13d-5. “Beneficially own” and “beneficial ownership” shall have correlative meanings.

 

“Business Day” shall mean any day except a Saturday, Sunday or other day on which commercial banks in New York City are authorized by law to close.

 

“Charter” shall mean the certificate of incorporation of the Company, as the same may be amended from time to time.

 

1

 

“Common Stock” shall mean, collectively, Class A common stock of the Company, par value $0.01 per share (the “Class A Common Stock”), and Class B common stock of the Company, par value $0.01 per share (the “Class B Common Stock”), and any stock into which such common stock is hereafter converted or changed.

 

“Covered Common Stock” shall mean those shares of Common Stock that are beneficially owned at any particular time by a Covered Person and that were or are acquired by such Covered Person from the Company, including upon the exercise of options. For the avoidance of doubt, Covered Common Stock does not include shares of Common Stock that a Covered Person acquires on the open market or any issuer-directed Common Stock a Covered Person acquires in the IPO.

 

“Employee Shareholders Committee” shall mean the body constituted pursuant to Article 3 hereof.

 

“Exchange Act” shall mean the United States Securities Exchange Act of 1934, as amended from time to time.

 

“Exchange Act Rule” shall mean such rule or regulation of the SEC under the Exchange Act, as in effect from time to time or as replaced by a successor rule thereto.

 

“Permitted Transfer” shall mean, with respect to a Covered Person, any of the following: (a) any Transfer of shares of Covered Common Stock to a broker or other nominee; provided that the transferor, immediately following such Transfer, retains (i) the power (whether exclusive or shared) to vote or direct the voting of such share by proxy, voting agreement or otherwise, (ii) control over the disposition of such shares, and (iii) the economic consequences of ownership of such shares; and (b) any Transfer of shares of Covered Common Stock by a Covered Person who is a natural person to a trust the beneficiaries of which, or any corporation, limited liability company or partnership the stockholders, members or partners of which, include only such Covered Person or the spouse or lineal descendants (whether natural or adopted) of such Covered Person and which is controlled solely by such Covered Person; provided that the transferor, immediately following such Transfer, retains the power (whether exclusive or shared) to vote or direct the voting of such share by proxy, voting agreement or otherwise. The transferee of any such Permitted Transfer shall be referred to as a “Permitted Transferee.”

 

A “Person” shall include, as applicable, an individual, corporation, limited liability company, partnership, association, trust or other entity or organization, including a government or political subdivision or an agency or instrumentality thereof.

 

“Requisite Vote” shall mean, as of any time, the affirmative vote or consent of Covered Persons holding a majority of the voting power associated with the shares of Covered Common Stock.

 

“SEC” shall mean the United States Securities and Exchange Commission.

 

“Sole Beneficial Owner” shall mean a person who is the beneficial owner of shares of Common Stock, who does not share beneficial ownership of such shares of Common Stock with any other person (other than pursuant to this Agreement or applicable community

 

2

 

property laws) and who is the only person (other than pursuant to applicable community property laws) with a direct economic interest in such shares of Common Stock. The interest of a spouse or a domestic partner in a joint account, and an economic interest of the Company as pledgee, shall be disregarded for this purpose.

 

“Subsidiary” shall mean, with respect to any Person, any entity of which securities or other ownership interests having ordinary voting power to elect a majority of the board of directors or other persons performing similar functions are at the time directly or indirectly owned by such Person.

 

“Transfer” shall mean, with respect to any share of Covered Common Stock, directly or indirectly, any sale, assignment, transfer, conveyance, hypothecation, exchange, pledge, encumbrance, distribution, bequest, donation or other transfer or disposition of such share or any legal or beneficial interest in such share, whether or not for value and whether voluntary or involuntary or by operation of law (including by merger, consolidation or otherwise), including, without limitation, the transfer of, or entering into a binding agreement with respect to, the power (whether exclusive or shared) to vote or direct the voting of such share by proxy, voting agreement or otherwise. Notwithstanding the foregoing, the following shall not be considered a “Transfer” of a share of Covered Common Stock:

 

(a)                                 the granting by a Covered Person of a proxy to (x) the Employee Shareholders Committee pursuant to this Agreement, (y) officers or directors of the Company at the request of the Board of Directors in connection with actions to be taken at an annual or special meeting of stockholders or in connection with any action by written consent of the stockholders or (z) a representative of such Covered Person, in connection with actions to be taken at an annual or special meeting of stockholders or in connection with any action by written consent of the stockholders;

 

(b)                                 the pledge of shares of Covered Common Stock by a Covered Person that creates a mere security interest in such shares pursuant to a bona fide loan or indebtedness transaction for so long as such Covered Person continues to exercise the power (whether exclusive or shared) to vote or direct the voting of such pledged shares by proxy, voting agreement or otherwise; provided, however, that a foreclosure on such shares or other similar action by the pledgee shall constitute a “Transfer” unless such foreclosure or similar action qualifies as a “Permitted Transfer” at such time;

 

(c)                                  the entering into of a support or similar voting agreement (with or without granting a proxy) in connection with (x) any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, (y) any sale, lease, exclusive license or other disposition of all or substantially all of the assets of the Company, or (z) any consolidation or merger of the Company with or into any other Person or any other corporate reorganization; or

 

(d)                                 the fact that the spouse of any Covered Person possesses or obtains an interest in such Covered Person’s shares of Covered Common Stock arising solely by reason of the application of the community property laws of any jurisdiction, so long as no other event or circumstance shall exist or have occurred that constitutes a “Transfer” of such shares of Covered Common Stock.

 

3

 

A “Transfer” shall be deemed to have occurred with respect to a share of Covered Common Stock beneficially held by a Permitted Transferee on the date that such Permitted Transferee ceases to meet the qualifications to be a Permitted Transferee of the Covered Person who effected the Transfer of such shares to such Permitted Transferee.

 

“vote” shall include actions taken or proposed to be taken by written consent.

 

Section 1.02.                          Other Definitional and Interpretative Provisions.  The words “hereof,” “herein” and “hereunder” and words of like import used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement.  The captions herein are included for convenience of reference only and shall be ignored in the construction or interpretation hereof.  References to Articles, Sections, Exhibits and Annexes are to Articles, Sections, Exhibits and Annexes to or of this Agreement unless otherwise specified.  All Exhibits and Annexes attached hereto or referred to herein are hereby incorporated in and made a part of this Agreement as if set forth in full herein.  Any capitalized terms used in any Exhibit or Annex but not otherwise defined therein shall have the meaning as defined in this Agreement.  Any singular term in this Agreement shall be deemed to include the plural, and any plural term the singular.  Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation,” whether or not they are in fact followed by those words or words of like import.  “Writing,” “written” and comparable terms refer to printing, typing and other means of reproducing words (including electronic media) in a visible form.  References to any agreement or contract are to that agreement or contract as amended, modified or supplemented from time to time in accordance with the terms hereof and thereof; provided that, with respect to any agreement or contract listed on any schedules hereto, all such amendments, modifications or supplements must also be listed in the appropriate schedule.  References to any statute or regulation are to the statute or regulation as amended, modified or supplemented from time to time and, in the case of statutes, include any rules and regulations promulgated thereunder, and references to any section of any statute or regulation include any successors of such sections.  References to any Person include the successors and permitted assigns of that Person.  References from or through any date mean, unless otherwise specified, from and including or through and including, respectively.

 

ARTICLE 2.

 

VOTING AGREEMENT

 

Section 2.01.                          Irrevocable Proxy and Power of Attorney.

 

(a)                                 By signing this Agreement or a Joinder, each Covered Person irrevocably appoints and constitutes the members of the Employee Shareholders Committee (each a “Committee Member”), acting jointly or each and any of them acting in his or her capacity as a Committee Member in accordance with the other provisions hereof, with full power of substitution and resubstitution, as its true and lawful proxy to vote, abstain from voting or otherwise act, for and in such Covered Person’s name, place and stead, with respect to all of the Covered Person’s Covered Common Stock as of the relevant record date or other date used for purposes of determining holders of Common Stock entitled to vote or take any action, as fully, to the same extent and with the same effect as such Covered Person might or could do under any

 

4

 

applicable laws or regulations governing the rights and powers of stockholders of a Delaware corporation. The proxy granted the Committee Members pursuant to this Section 2.01(a) shall revoke all prior proxies granted by the Covered Person with respect to the Covered Common Stock, shall be irrevocable during the term set forth in the last sentence of this Section 2.01(a), shall survive the bankruptcy or dissolution of the Covered Person and shall be deemed to be coupled with an interest sufficient at law to support an irrevocable power. The Committee Members are authorized to execute that certain Second Amended and Restated Shareholders’ Agreement, dated as of the date hereof (the “Second A&R Shareholders’ Agreement”), and the Employee Shareholders Committee, as such committee may be reconstituted from time to time, is authorized to vote Covered Common Stock in order to ensure that the composition of the board of directors of the Company is as set forth in Section 2.01 of the Second A&R Shareholders’ Agreement.  For the avoidance of doubt, the Committee Members are authorized to vote Covered Common Stock in favor of the election of one or more Committee Members in elections of directors of the Company. Each Covered Person agrees that this irrevocable proxy may be exercised by the Committee Members with respect to all Covered Common Stock of such Covered Person for the period beginning on the effective date of this Agreement and ending on the earlier of (i) the date this Agreement shall have been terminated pursuant to Section 7.01(a) and (ii) the date of termination of this Agreement as to such Covered Person pursuant to Section 7.01(b).

 

(b)                                 By signing this Agreement or a Joinder, each Covered Person irrevocably appoints and constitutes the Committee Members, acting jointly or each and any of them acting in his or her capacity as a Committee Member in accordance with the other provisions hereof, with full power of substitution and resubstitution, his or her true and lawful attorney-in-fact to direct the voting of any Covered Common Stock held of record by any other Person but beneficially owned by such Covered Person, granting to such attorneys, and each of them, full power and authority to do and perform each and every act and thing whatsoever that such attorney or attorneys may deem necessary, advisable or appropriate to carry out fully the intent of this Section 2.01 as such Covered Person might or could do personally, hereby ratifying and confirming all acts and things that such attorney or attorneys may do or cause to be done by virtue of this power of attorney. It is understood and agreed by each Covered Person that this appointment, empowerment and authorization may be exercised by the aforementioned Persons with respect to all Covered Common Stock of such Covered Person, and held of record by another Person, for the period beginning on the effective date of this Agreement and ending on the earlier of (i) the date this Agreement shall have been terminated pursuant to Section 7.01(a) and (ii) the date of termination of this Agreement as to such Covered Person pursuant to Section 7.01(b). The power of attorney granted by the Covered Person hereunder is a durable power of attorney and shall survive the dissolution or bankruptcy of the Covered Person and shall revoke any and all prior powers of attorney granted by the Covered Person with respect to the shares of Covered Common Stock subject hereto.

 

ARTICLE 3.

 

EMPLOYEE SHAREHOLDERS COMMITTEE

 

Section 3.01.                          Initial Membership and Composition.  The Employee Shareholders Committee shall consist of three individuals.  The initial Committee Members shall be David C.

 

5

 

Brown, the Chief Executive Officer of the Company (the “CEO”), Michael D. Policarpo, the Chief Operating Officer of the Company (the “COO”), and Kelly S. Cliff, the President, Investment Franchises of the Company (the “President”).

 

Section 3.02.                          Membership Criteria. The Committee Members shall be individuals who are employees of the Company or one or more of its Subsidiaries and who own shares of Common Stock (the “Membership Criteria”).

 

Section 3.03.                          Replacement/Removal of Committee Members.

 

(a)                                 If the individual holding the position of CEO ceases to hold such position for any reason, such individual will automatically cease to be a Committee Member and the new individual appointed as CEO shall automatically become a Committee Member upon such appointment. For the avoidance of doubt, the CEO cannot be removed by the Covered Persons.

 

(b)                                 If the individual holding the position of COO or President ceases to hold such position for any reason, if such individual was a Committee Member at such time, such individual will automatically cease to be a Committee Member and the new individual appointed as COO or President shall automatically become a Committee Member upon such appointment.  If no individual is appointed as a replacement COO or President (or a substantially similar position in lieu thereof) within 90 days, such vacancy may be temporarily filled with an individual satisfying the Membership Criteria designated by Covered Persons holding the Requisite Vote, until such time as a replacement appointment of such officer is made.

 

(c)                                  Any Committee Member, other than the CEO, may be removed for any reason and replaced by an individual satisfying the Membership Criteria designated by Covered Persons holding the Requisite Vote.

 

(d)                                 No Committee Member that is then CEO, COO or President may resign from the Employee Shareholders Committee without resigning as an officer of the Company; any other Committee Member may resign at any time upon written notice to the Company and the other Committee Members. Such resignation will take effect at the time specified in the related notice, and unless otherwise specified in the notice no acceptance of the resignation will be necessary to make it effective.  If any Committee Member resigns or ceases to satisfy the Membership Criteria or is unable to serve as a Committee Member by reason of his or her death, such individual shall immediately cease to be a Committee Member and shall, if not replaced pursuant to Section 3.03(b), be replaced by an individual satisfying the Membership Criteria designated by Covered Persons holding the Requisite Vote.

 

(e)                                  Any successor Committee Member must become a party to this Agreement as a Committee Member by executing documentation reasonably satisfactory to the Company.

 

Section 3.04.                          Determinations of and Actions by the Employee Shareholders Committee.

 

(a)                                 All determinations necessary or advisable under this Agreement with respect to the Covered Persons (including determinations of beneficial ownership and status as a

 

6

 

Covered Person) shall be made by the Employee Shareholders Committee, the determinations of which, absent manifest error, shall be final and binding.

 

(b)                                 Each Covered Person recognizes and agrees that the Committee Members in acting hereunder shall at all times be acting in their capacities as Committee Members and not as directors or officers of the Company and in so acting or failing to act shall not have any fiduciary duties to the Covered Persons as a Committee Member by virtue of the fact that one or more of such Committee Members may also be serving as a director or officer of the Company or otherwise.

 

(c)                                  The Employee Shareholders Committee may act at a meeting (in person or telephonically) or by a written instrument signed by the number of Committee Members the consent or approval of which is otherwise required for action. Meetings of the Employee Shareholders Committee may be held at any time or place, whenever called by any Committee Member. Reasonable notice thereof will be given by the Committee Member or Committee Members calling the meeting to the other Committee Members.

 

Section 3.05.                          Vote Required for Actions.  The vote or consent, as applicable, of at least two Committee Members present at a meeting of the Employee Shareholders Committee or acting by written consent (or of the sole Committee Member, if there is only one such member) shall be the act of the Employee Shareholders Committee.

 

Section 3.06.                          Liability and Indemnity.  No Committee Member shall be liable for any error of judgment or mistake of fact or law, or for any action or omission under this Agreement, except in the case of such Committee Member’s fraud, bad faith or willful misconduct. No Committee Member shall be liable for acting on any notice, request or instruction or other document believed to be genuine by such Committee Member and to have been executed by or on behalf of the proper party or parties. The Company shall pay all reasonable expenses of the Committee Members, including counsel fees, and shall discharge all liabilities incurred by them in connection with the exercise of their powers and the performance of their duties under this Agreement. Any action or omission undertaken by a Committee Member in good faith in accordance with the advice of legal counsel shall be binding and conclusive on the parties to this Agreement. The Company shall also defend, indemnify and hold the Committee Members harmless from and against any and all claims and liabilities in connection with or arising out of the exercise of any powers or the performance of any duties by the Committee Members as herein provided or contemplated, except for such claims or liabilities as shall arise from the fraud, bad faith or willful misconduct of the Committee Members.

 

ARTICLE 4.

 

TRANSFER AND ISSUANCE OF SHARES

 

Section 4.01.                          Restrictions on Transfer of Shares.  No Covered Person shall Transfer any shares of Common Stock to a Permitted Transferee who is not a Covered Person unless such transferee has executed and delivered to the Company a Joinder substantially in the form of Exhibit A. In the event that a Covered Person Transfers any of its shares of Class B Common Stock to a Person other than a Permitted Transferee, such shares shall, effective upon the

 

7

 

consummation of such Transfer, be converted into shares of Class A Common Stock in accordance with the Charter.

 

Section 4.02.                          Issuance of Additional Common Stock.  If the Company issues additional shares of Common Stock to employees of the Company or its Subsidiaries, the proposed recipient of any such shares shall be required as a condition of such issuance to execute and deliver to the Company a Joinder substantially in the form of Exhibit A.

 

Section 4.03.                          Amendments.  The Company shall amend Schedule A as necessary from time to time to reflect any changes in the Covered Persons pursuant to this Article 4.

 

ARTICLE 5.

 

REPRESENTATIONS AND WARRANTIES AND COVENANTS

 

Each Covered Person severally represents and warrants or agrees, as applicable, for itself that:

 

(a)                                 Such Covered Person has (and, with respect to shares of Common Stock to be acquired, will have) good, valid and marketable title to the shares of Common Stock of which the Covered Person is the Sole Beneficial Owner, free and clear of any pledge, lien, security interest, charge, claim, equity or encumbrance of any kind, other than pursuant to this Agreement, an agreement with the Company by which such Covered Person is bound and to which the shares of Common Stock are subject or as permitted by the policies of the Company in effect from time to time;

 

(b)                                 Such Covered Person has (and, with respect to shares of Common Stock to be acquired, will have) the right to vote pursuant to Section 2.01 of this Agreement all shares of Common Stock of which the Covered Person is the Sole Beneficial Owner;

 

(c)                                  If the Covered Person is not a natural person:

 

(i)                                     such Covered Person is duly organized and validly existing in good standing under the laws of the jurisdiction of such Covered Person’s formation;

 

(ii)                                  such Covered Person has full right, power and authority to enter into and perform this Agreement;

 

(iii)                               the execution and delivery of this Agreement and the performance of the transactions contemplated herein have been duly authorized, and no further proceedings on the part of such Covered Person are necessary to authorize the execution, delivery and performance of this Agreement; and this Agreement has been duly executed by such Covered Person;

 

(iv)                              the Person signing this Agreement on behalf of such Covered Person has been duly authorized by such Covered Person to do so;

 

8

 

(d)                                 this Agreement constitutes the legal, valid and binding obligation of such Covered Person, enforceable against such Covered Person in accordance with its terms (subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles);

 

(e)                                  neither the execution and delivery of this Agreement by such Covered Person nor the consummation of the transactions contemplated herein conflicts with or results in a breach of any of the terms, conditions or provisions of any agreement or instrument to which such Covered Person is a party or by which the assets of such Covered Person are bound (including without limitation the organizational documents of such Covered Person, if such Covered Person is other than a natural person), or constitutes a default under any of the foregoing, or violates any law or regulation;

 

(f)                                   such Covered Person has obtained all authorizations, consents, approvals and clearances of all courts, governmental agencies and authorities, and any other Person, if any (including the consent of the spouse of such Covered Person with respect to the interest of such spouse in the shares of Common Stock of such Covered Person; such consent in substantially the form of Exhibit B), required to permit such Covered Person to enter into this Agreement and to consummate the transactions contemplated herein;

 

(g)                                  there are no actions, suits or proceedings pending, or, to the knowledge of such Covered Person, threatened against or affecting such Covered Person or such Covered Person’s assets in any court or before or by any federal, state, municipal or other governmental department, commission, board, bureau, agency or instrumentality which, if adversely determined, would impair the ability of such Covered Person to perform this Agreement;

 

(h)                                 the performance of this Agreement will not violate any order, writ, injunction, decree or demand of any court or federal, state, municipal or other governmental department, commission, board, bureau, agency or instrumentality to which such Covered Person is subject;

 

(i)                                     no statement, representation or warranty made by such Covered Person in this Agreement, nor any information provided by such Covered Person for inclusion in a registration statement filed by the Company in connection with the IPO, contains or will contain any untrue statement of a material fact or omits or will omit to state a material fact necessary in order to make the statements, representations or warranties contained herein or information provided therein not misleading; and

 

(j)                                    Each Covered Person severally, and not jointly, agrees for itself that the foregoing provision of this Article 5 shall be a continuing representation and covenant by it during the period that it shall be a Covered Person, and it shall take all actions as shall from time to time be necessary to cure any breach or violation and to obtain any authorizations, consents, approvals and clearances in order that such representations shall continue to be true and correct during that period.

 

9

 

ARTICLE 6.

 

OTHER AGREEMENTS OF THE PARTIES

 

Section 6.01.                          Adjustment upon Changes in Capitalization; Adjustments upon Changes of Control.

 

(a)                                 In the event of any change in the outstanding Common Stock by reason of stock dividends, stock splits, reverse stock splits, spin-offs, split-ups, recapitalizations, combinations, exchanges of shares and the like, the terms “Class A Common Stock” and “Class B Common Stock,” as applicable, shall refer to and include the securities received or resulting therefrom, but only to the extent such securities are received in exchange for or in respect of Common Stock. Upon the occurrence of any event described in the immediately preceding sentence, the Employee Shareholders Committee shall make such adjustments to or interpretations of any provisions of this Agreement as it shall deem necessary, advisable or appropriate to carry out the intent of such provisions. If the Employee Shareholders Committee deems it necessary, advisable or appropriate, any such adjustments may take effect from the record date, the “when issued trading date,” the “ex dividend date” or another appropriate date.

 

(b)                                 In the event of any business combination, restructuring, recapitalization or other extraordinary transaction involving the Company, its Subsidiaries or any of their respective securities or assets as a result of which any of the parties hereto (other than the Company) holds voting securities of a Person other than the Company and in which the shares of capital stock of the Company outstanding immediately prior to such transaction continue to represent, or are converted into or exchanged for shares of capital stock or other equity securities that represent, immediately following such transaction, at least a majority, by voting power, of the capital stock or other equity securities of the surviving or resulting entity or of the parent entity of such surviving or resulting entity, such party agrees that this Agreement shall also continue in full force and effect with respect to such voting securities of such other Person formerly representing or distributed in respect of Common Stock and the terms “Class A Common Stock,” “Class B Common Stock” and “the Company” shall refer to such voting securities formerly representing or distributed in respect of shares of Class A Common Stock, Class B Common Stock, and such other Person, respectively. Upon the occurrence of any event described in the immediately preceding sentence, the Employee Shareholders Committee shall make such adjustments to or interpretations of any provisions of this Agreement as it shall deem necessary, advisable or appropriate to carry out the intent of such provisions. If the Employee Shareholders Committee deems it necessary, advisable or appropriate, any such adjustments may take effect from the record date or another appropriate date.

 

ARTICLE 7.

 

MISCELLANEOUS

 

Section 7.01.                          Term of the Agreement; Termination of Certain Provisions.

 

(a)                                 This Agreement may be terminated in its entirety as follows:

 

10

 

(i)                                     at any time by written consent of all of the parties to this Agreement; or

 

(ii)                                  following the conversion of all the shares of Class B Common Stock into shares of Class A Common Stock, in accordance with the Charter, by written consent of Covered Persons holding at least two-thirds of the total number of outstanding shares of Covered Common Stock.

 

(b)                                 Any Person who has Transferred all of its shares of Covered Common Stock, other than to a Permitted Transferee, died, or whose employment with the Company or any of its Subsidiaries has been terminated, shall cease to be a Covered Person and shall no longer be bound by, or have any rights pursuant to, the provisions of this Agreement, and such Person’s name shall be removed from Schedule A to this Agreement. Additionally, the shares of Class B Common Stock owned by any such Person, if any, shall automatically convert into shares of Class A Common Stock, in accordance with the Charter.

 

(c)                                  Sections 3.04 and 3.06 shall survive the termination of this Agreement and shall continue to apply to each Person who ceases to be a Covered Person.

 

Section 7.02.                          Headings.  The headings in this Agreement are for convenience of reference only and shall not control or affect the meaning or construction of any provisions hereof.

 

Section 7.03.                          Entire Agreement.  This Agreement constitutes the entire agreement and understanding among the parties hereto in respect of the subject matter contained herein, and there are no restrictions, promises, representations, warranties, covenants or undertakings with respect to the subject matter hereof other than those expressly set forth or referred to herein.  This Agreement supersedes all prior and contemporaneous agreements and understandings among the parties hereto with respect to the subject matter hereof.

 

Section 7.04.                          Addresses and Notices.  All notices, requests or other communications to any party hereunder shall be in writing (which may include facsimile transmission) and shall be given,

 

if to the Company or the Employee Shareholders Committee, to:

 

4900 Tiedeman Road

Brooklyn, Ohio 44144

Attention:  Michael Policarpo

Nina Gupta

Telephone:  (216) 898-2552

Facsimile:  (216) 370-9011

 

and if to any other party hereto, to the address or facsimile number set forth on the signature page hereto or any other address or facsimile number in the United States as such party hereafter may specify for such purpose to the Company.

 

11

 

All such notices, requests and other communications shall be deemed received by the recipient thereof on the date of receipt if received prior to 5 p.m. in the place of receipt and such day is a Business Day in the place of receipt.  Otherwise, any such notice, request or communication shall be deemed not to have been received until the next succeeding Business Day in the place of receipt.

 

Section 7.05.                          Governing Law; Arbitration; Waiver of Jury Trial.

 

(a)                                 This Agreement shall be governed by, and construed under, the laws of the State of Delaware, and all rights and remedies shall be governed by said laws, without regard to conflict of laws principles.

 

(b)

 

(i)                                     To the fullest extent permitted by law, the parties hereto agree that any claim, dispute or controversy based on any matter arising out of or in connection with this Agreement or the other agreements or transactions contemplated hereby shall be submitted to and resolved exclusively by arbitration conducted in accordance with this Section 7.05(b).

 

(ii)                                  Any party may, by delivering a written demand to any other party, submit any such claim, dispute or controversy to binding arbitration conducted in New York City, New York (or such other location as the parties thereto may agree) in accordance with the applicable rules of the American Arbitration Association then in effect, and the arbitration shall be heard and determined by a panel of three arbitrators in accordance with such rules (except that in the event of any inconsistency between such rules and this Section 7.05(b), the provisions of this Section 7.05(b) shall control).  Each demand shall briefly set forth the nature of the underlying dispute and the amount, if any, involved.  The arbitration panel may not modify the arbitration rules specified above without the prior written approval of all parties to the arbitration (provided that, notwithstanding the foregoing, in the case of any arbitration between the Company and/or the Employee Shareholders Committee, on the one hand, and one or more Covered Persons, on the other hand, the arbitration panel may modify such arbitration rules with the prior written approval of the Company, the Employee Shareholders Committee and Covered Persons owning a majority of the Covered Common Stock owned by the Covered Persons who are party to such arbitration).

 

(iii)                               Within ten Business Days after the receipt of a demand, each party shall designate one arbitrator, each of whom shall have experience involving complex business or legal matters, but shall not have any prior, existing or potential material business relationship with any party to the arbitration (provided that, notwithstanding the foregoing, in the case of any arbitration between the Company and/or the Employee Shareholders Committee, on the one hand, and one or more Covered Persons, on the other hand, the Company and/or the Employee Shareholders Committee shall designate one arbitrator, and Covered Persons owning a majority of the Covered Common Stock owned by the Covered Persons who are party to such arbitration shall designate one arbitrator).  The two arbitrators so designated shall select a third arbitrator, who shall

 

12

 

preside over the arbitration, shall be similarly qualified as the two arbitrators and shall have no prior, existing or potential material business relationship with any party to the arbitration; provided that if the two arbitrators are unable to agree upon the selection of such third arbitrator, such third arbitrator shall be designated in accordance with the arbitration rules referred to above.

 

(iv)                              The arbitrators will decide the dispute by majority decision, and the decision shall be rendered in writing and shall bear the signatures, the arbitration and the party or parties who shall be charged therewith, or the allocation of the expenses among the parties in the discretion of the panel.  The arbitration decision shall be rendered as soon as possible, but in any event not later than 120 days after the constitution of the arbitration panel.  The arbitration decision shall be final and binding upon all parties to the arbitration.  The parties hereto agree that judgment upon any award rendered by the arbitration panel may be entered in the United States District Court for the Southern District of New York or any New York State court sitting in New York City.  To the maximum extent permitted by law, the parties hereby irrevocably waive any right of appeal from any judgment rendered upon any such arbitration award in any such court.  Notwithstanding Section 7.05(b)(i), any party may seek injunctive relief in any such court.

 

(c)                                  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

Section 7.06.                          Severability.  If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party.  Upon such a holding by a court or other authority, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner so that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.

 

Section 7.07.                          Successors, Assigns.  The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

 

Section 7.08.                          Waivers; Amendments.

 

(a)                                 Any provision of this Agreement may be waived if, but only if, such waiver is in writing and is signed, by the party or parties against whom the waiver is to be effective.  Except as expressly set forth herein, no failure or delay on the part of any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any

 

13

 

single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

 

(b)                                 No provision of this Agreement may be amended or otherwise modified except by the prior written consent of (a) the Company, (b) the Employee Shareholders Committee, and (c) the Covered Persons holding the Requisite Vote; provided that any amendment to Section 7.01(a)(ii) shall require the consent of Covered Persons holding at least two-thirds of the total number of outstanding shares of Covered Common Stock.  Notwithstanding the foregoing, this Agreement shall be deemed amended from time to time to reflect the addition of a party to this Agreement pursuant to Article 4 hereof, and no consent pursuant to this Section 7.08 shall be required in connection with any such amendment.

 

Section 7.09.                          Counterparts; Effectiveness.  This Agreement may be executed in any number of counterparts (including by electronic mail portable document format (*.pdf) (or similar electronic means) or facsimile signature), each of which shall be an original with the same effect as if the signatures thereto and hereto were upon the same instrument.

 

Section 7.10.                          Remedies; Specific Performance.  Except as otherwise specifically provided for in this Agreement, (a) the rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law and (b) each party hereto acknowledges that the remedies at law of the other parties for a breach or threatened breach of this Agreement would be inadequate and, in recognition of this fact, any party to this Agreement, without posting any bond, shall be entitled to obtain equitable relief in the form of specific performance, a temporary restraining order, a temporary or permanent injunction or any other equitable remedy that may then be available.

 

Section 7.11.                          Further Assurances.  The Company and each party hereto shall take, or cause to be taken, all actions and do, or cause to be done, all things necessary or desirable under applicable law to consummate the transactions contemplated by this Agreement.

 

Section 7.12.                          Third Party Beneficiaries.  Nothing in this Agreement, express or implied, is intended to confer on any Person other than the parties hereto and their respective successors and permitted assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement.

 

Section 7.13.                          No Rights to Continued Relationship.  Neither this Agreement nor any action taken or omitted to be taken hereunder shall be deemed to create or confer on any Person any right to be retained in any employment, consultant, advisory, director, manager or other such relationship by the Company or any of its Subsidiaries, or to interfere with or to limit in any way the right of the Company or any of its Subsidiaries to terminate such relationship with any such Person at any time.

 

[Signature page follows.]

 

14

 

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

 

	
 
    	
VICTORY CAPITAL HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: David C. Brown
    
	
 
    	
 
    	
Title: Chief Executive Officer
    

 

[Signature Page to Employee Shareholders’ Agreement]

 

 

	
 
    	
[COVERED PERSONS]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Address:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

[Signature Page to Employee Shareholders’ Agreement]

 

 

	
 
    	
EMPLOYEE SHAREHOLDERS COMMITTEE
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name: David C. Brown
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name: Michael D. Policarpo
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name: Kelly S. Cliff
    

 

[Signature Page to Employee Shareholders’ Agreement]

 

 

EXHIBIT A

 

JOINDER TO EMPLOYEE SHAREHOLDERS’ AGREEMENT

 

In consideration of the [Transfer (as defined in the Shareholders’ Agreement)] [issuance by Victory Capital Holdings, Inc.] to the undersigned of shares of Covered Common Stock (as defined in the Shareholders’ Agreement), the undersigned hereby consents and agrees to become a party to and be bound by the Employee Shareholders’ Agreement (the “Shareholders’ Agreement”), dated as of [   ], 2018, as amended (receipt of a copy of which is hereby acknowledged), as fully as if the undersigned were one of the original Covered Persons (as defined in the Shareholders’ Agreement), and all shares of Covered Common Stock beneficially owned by the undersigned shall be held in accordance with and restricted by the terms of such Shareholders’ Agreement and such stockholder’s name shall be listed on Schedule A.

 

Date: [        ]

 

	
Name of Covered Person:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Sign Name:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Print Name:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
SSN/EIN:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Approved by:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
VICTORY CAPITAL HOLDINGS, INC.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    	
 
    
						

 

1

 

EXHIBIT B

 

SPOUSAL CONSENT

 

Dated: [·]

 

I am the spouse, domestic partner, or partner under a civil union, as applicable (the “Spouse”), of [•], a party to that certain Employee Shareholders’ Agreement (the “Shareholders’ Agreement”), dated as of [   ], 2018, as amended.  Capitalized terms used and not defined herein have the meanings assigned to them in the Shareholders’ Agreement.

 

On behalf of myself and my heirs and legatees, I hereby confirm and acknowledge that I (i) have read the Shareholders’ Agreement in its entirety, (ii) understand and am familiar with the terms and conditions set forth therein, (iii) have been advised and encouraged to consult with independent counsel of my own choosing with respect to the Shareholders’ Agreement and the matters set forth therein, (iv) approve and consent to the execution and delivery by my Spouse of the Shareholders’ Agreement, (v) agree that my interest (community property or otherwise) in the Company will be subject to this consent and (vi) agree that my Spouse may join in any future amendments or modifications to the Shareholders’ Agreement or any related document without notice to me and without my further signature, acknowledgement, agreement or consent.

 

 

	
 
    	
 
    
	
[NAME]
    

 

2Exhibit 10.1

 

VICTORY CAPITAL HOLDINGS, INC.

 

INDEMNIFICATION AGREEMENT

 

 

INDEMNIFICATION AGREEMENT

 

THIS AGREEMENT is entered into, effective as of February [·], 2018, by and between Victory Capital Holdings, Inc., a Delaware corporation (the “Company”), and [        ] (“Indemnitee”).

 

WHEREAS, it is essential to the Company to retain and attract as directors and officers the most capable persons available;

 

WHEREAS, Indemnitee is a director and/or officer of the Company [and also serves on the Employee Shareholders Committee (the “Employee Shareholders Committee”) pursuant to that certain Employee Shareholders’ Agreement, dated as of February [·], 2018, to which the Company is a party], and/or is serving or may in the future serve as a director, officer or other fiduciary of one or more other corporations, partnerships, limited liability companies, joint ventures, trusts, employee benefit plans or other enterprises (“Related Entities”) at the request or direction of the Company or on behalf of the investors or limited partners for which the Company or an affiliate acts as general partner or investment advisor (the “Company’s Request or Direction”);

 

WHEREAS, both the Company and Indemnitee recognize the risk of litigation and other claims being asserted against directors and/or officers of corporations and other entities [and the members of the Employee Shareholders Committee]; and

 

WHEREAS, the Company’s Certificate of Incorporation (as the same may be amended from time to time, the “Certificate of Incorporation”) and Bylaws (as the same may be amended from time to time, the “Bylaws”) require the Company to indemnify, and to advance expenses to, its directors and officers to the fullest extent permitted under Delaware law, and the Indemnitee has agreed to serve as a director and/or officer of the Company [and also serves on the Employee Shareholders Committee], and has agreed or may agree to serve as a director, officer or other fiduciary of one or more Related Entities at the Company’s Request or Direction, in part in reliance on such provisions; and

 

WHEREAS, in recognition of Indemnitee’s reliance on the aforesaid provisions in the Certificate of Incorporation and the Bylaws, and Indemnitee’s desire for (i) additional protection against personal liability, including protection in circumstances that may or may not presently be covered in the Certificate of Incorporation and the Bylaws, and (ii) specific contractual assurance that the protection promised by the Certificate of Incorporation and the Bylaws, and may be otherwise available under Delaware law, will be extended to Indemnitee (regardless of, among other things, any amendment to or revocation of any provision of the Certificate of Incorporation or the Bylaws or any change in the composition of the Company’s Board of Directors or acquisition transaction relating to the Company), and as an inducement to provide services to the Company and/or any Related Entity at the Company’s Request or Direction, the Company wishes to provide in this Agreement for the indemnification of and the advancing of expenses to Indemnitee to the fullest extent (whether partial or complete) permitted under Delaware law and as set forth in this Agreement, and, to the extent directors’ and officers’ liability insurance is maintained by the Company, to provide for the continued coverage of Indemnitee under such policies of insurance.

 

1

 

NOW, THEREFORE, in consideration of the above premises and of Indemnitee continuing to serve the Company and the Related Entities at the Company’s Request or Direction, and intending to be legally bound hereby, the parties agree as follows:

 

1.                                      Certain Definitions:

 

(a)                                 Board: the Board of Directors of the Company.

 

(b)                                 Affiliate: any corporation or other person or entity that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, the person specified.

 

(c)                                  Change in Control: shall be deemed to have occurred if, for any reason whatsoever, (i) Crestview Victory, L.P. and its Affiliates (“Crestview”) shall cease to be entitled to appoint or elect a majority of the Board, or the board of directors or equivalent governing body of the Company’s direct or indirect majority parent entities, or (ii) Crestview shall cease to be the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), directly or indirectly, of securities of the Company representing more than 50% of the total voting power represented by the Company’s then outstanding Voting Securities.

 

(d)                                 Expenses: all direct or indirect costs and expenses (including attorneys’ fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees and all other disbursements or expenses) reasonably incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, participating, or being or preparing to be a witness in a Proceeding, or responding to, or objecting to, a request to provide discovery in any Proceeding. Expenses also shall include (i) any of the foregoing costs or expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent, and (ii) any federal, state, local or foreign taxes imposed on the Indemnitee as a result of the actual or deemed receipt of any payments in respect of the foregoing amounts under this Agreement.

 

(e)                                  Indemnifiable Event: any event or occurrence that takes place either prior to or after the execution of this Agreement related to (i) the fact that Indemnitee is or was (w) a director or officer of the Company, (x) a director, officer, or other fiduciary of any Related Entity serving at the Company’s Request or Direction, (y) a director, officer, or other fiduciary of any predecessor of the Company or any Related Entity serving at the request or direction of such predecessor or (z) a member of the Employee Shareholders Committee, or (ii) anything done or not done by Indemnitee in any such capacity, including any Proceeding related to any of the foregoing matters, whether or not the basis of such Proceeding is alleged action or inaction in the Indemnitee’s official capacity as a director, officer, or other fiduciary of the Company, any Related Entity, or any predecessor of the Company or any Related Entity or as a member of the Employee Shareholders Committee, or in any other capacity while serving as a director, officer, or other fiduciary of the Company, any Related Entity, or any predecessor of the Company or any Related Entity or as a member of the Employee Shareholders Committee, or otherwise as

 

2

 

described above, in each case, whether or not serving in such capacity at the time any liability or Expense is incurred for which indemnification, reimbursement or advancement of Expenses can be provided under this Agreement.

 

(f)                                   Independent Counsel: the person or body appointed in connection with Section 3.

 

(g)                                  Losses: all losses or liabilities, including any judgments, fines, penalties and amounts paid in settlement, arising out of or in connection with any Proceeding (including without limitation all interest, assessments and other charges paid or payable in connection with or in respect of any such judgments, fines, penalties or amounts paid in settlement). Losses also shall include any federal, state, local or foreign taxes imposed on the Indemnitee as a result of the actual or deemed receipt of any payments in respect of the foregoing amounts under this Agreement. Notwithstanding the foregoing, Losses shall not include amounts paid in respect of settlement by Indemnitee unless such settlement is entered into a manner in accordance with the terms set forth in Section 6(c).

 

(h)                                 Proceeding: any threatened, pending or completed action, suit, claim, counterclaim, cross claim, arbitration, mediation, alternative dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding (including an action by or in the right of the Company), or any inquiry, hearing, or investigation that Indemnitee in good faith believes might lead to the institution of any such action, suit, alternative dispute resolution mechanism, or other proceeding, in each case whether of a civil, criminal, administrative, regulatory, legislative or investigative (formal or informal) nature, and whether initiated or conducted by the Company or any other party, including any appeal therefrom, and including without limitation any such Proceeding pending as of the date of this Agreement in which Indemnitee was, is or will be involved as a party, potential party, non-party witness or otherwise by reason of alleged action or inaction in the Indemnitee’s official capacity as a director, officer, or other fiduciary of the Company, any Related Entity, or any predecessor of the Company or any Related Entity or as a member of the Employee Shareholders Committee, or in any other capacity while serving as a director, officer, or other fiduciary of the Company, any Related Entity, or any predecessor of the Company or any Related Entity or as a member of the Employee Shareholders Committee, or otherwise as described above.

 

(i)                                     Reviewing Party: the person or body appointed in accordance with Section 3.

 

(j)                                    Voting Securities: any securities of the Company that vote generally in the election of directors.

 

2.                                      Agreement to Indemnify.

 

(a)                                 General Agreement. In the event Indemnitee was, is, or becomes a party to or witness or other participant in, or is threatened to be made a party to or witness or other participant in, a Proceeding by reason of (or arising in part out of) an Indemnifiable Event, the Company shall indemnify Indemnitee from and against any and all Expenses and Losses to the fullest extent permitted by law, as the same exists or may hereafter be amended or interpreted

 

3

 

(but in the case of any such amendment or interpretation, only to the extent that such amendment or interpretation permits the Company to provide broader indemnification rights than were permitted prior thereto). The parties hereto intend that this Agreement shall provide for indemnification in excess of that expressly permitted by statute, the Certificate of Incorporation, the Bylaws or the vote of the Company’s shareholders or disinterested directors.

 

(b)                                 Initiation of Proceedings. Notwithstanding anything in this Agreement to the contrary, Indemnitee shall not be entitled to indemnification pursuant to this Agreement in connection with any Proceeding initiated by Indemnitee against the Company or any director or officer of the Company unless (i) the Company has joined in or the Board has consented to the initiation of such Proceeding; (ii) the Proceeding is one to enforce Indemnitee’s rights under this Agreement; (iii) such Proceeding arises in connection with any mandatory counterclaim or cross-claim or affirmative defense brought or raised by Indemnitee in any Proceeding (or any part of any Proceeding); or (iv) the Proceeding is instituted after a Change in Control (other than a Change in Control approved by a majority of the directors on the Board who were directors immediately prior to such Change in Control).

 

(c)                                  Expense Advances. If so requested by Indemnitee, the Company shall advance (within ten business days of such request) any and all Expenses to Indemnitee (an “Expense Advance”) in connection with any Proceeding; provided that such an Expense Advance shall be made on the condition that an undertaking by or on behalf of the Indemnitee shall have been made to repay the amount thereof if it is ultimately determined that Indemnitee is not entitled to be indemnified by the Company; provided, further, that the execution and delivery by Indemnitee hereof shall constitute such undertaking. If and to the extent that the Reviewing Party determines that Indemnitee would not be permitted to be so indemnified under applicable law, the Company shall be entitled to be reimbursed by Indemnitee for all such amounts theretofore paid; provided that if Indemnitee has commenced or commences legal proceedings in a court of competent jurisdiction to secure a determination that Indemnitee should be indemnified under applicable law, as provided in Section 4, any determination made by the Reviewing Party that Indemnitee would not be permitted to be indemnified under applicable law shall not be binding, and Indemnitee shall not be required to reimburse the Company for any Expense Advance, until a final judicial determination is made with respect thereto (as to which all rights of appeal therefrom have been exhausted or have lapsed). The advancement of Expenses provided for in this Agreement shall be made without regard to Indemnitee’s ability to repay the Expenses and without regard to Indemnitee’s ultimate entitlement to indemnification under the other provisions of this Agreement. Indemnitee’s obligation to reimburse the Company for Expense Advances shall be unsecured and no interest shall be charged thereon.

 

(d)                                 Mandatory Indemnification. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee has been successful on the merits or otherwise in defense of any Proceeding relating in whole or in part to an Indemnifiable Event or in defense of any issue or matter therein, Indemnitee shall be indemnified against all Expenses and Losses incurred in connection therewith.  If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses and Losses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with or related to each successfully resolved claim, issue or matter to the fullest extent permitted

 

4

 

by applicable law. For purposes of this Section 2(d) and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

 

(e)                                  Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of Expenses and Losses, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.

 

(f)                                   Prohibited Indemnification. No indemnification pursuant to this Agreement shall be paid by the Company (i) on account of any Proceeding in which judgment is rendered against Indemnitee for an accounting of profits made from the purchase or sale by Indemnitee of securities of the Company pursuant to the provisions of Section 16(b) of the Exchange Act or similar provisions of any federal, state, or local laws, or (ii) for any reimbursement of the Company by Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by Indemnitee from the sale of securities of the Company, as required in each case under the Exchange Act (including without limitation any such reimbursements that arise under the Sarbanes-Oxley Act of 2002).

 

(g)                                  Indemnification for Expenses of a Witness. Notwithstanding any other provision of this Agreement, to the fullest extent permitted by applicable law and to the extent that Indemnitee is, by reason of Indemnitee’s status as a director, officer, or other fiduciary of the Company, any Related Entity, or any predecessor of the Company or any Related Entity or as a member of the Employee Shareholders Committee, or in any other capacity while serving as a director, officer, or other fiduciary of the Company, any Related Entity, or any predecessor of the Company or any Related Entity or as a member of the Employee Shareholders Committee, or otherwise as described above, a witness, is or was made (or asked) to respond to discovery requests in any Proceeding or otherwise asked to participate in any aspect of a Proceeding to which Indemnitee is not a party, he or she shall be indemnified against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith.

 

3.                                      Reviewing Party.

 

For purposes hereof, (i) the “Reviewing Party” shall be (x) prior to any Change in Control, any appropriate person or body consisting of a member or members of the Board or any other person or body appointed by the Board who is not a party to the particular Proceeding with respect to which Indemnitee is seeking indemnification; and (y) after a Change in Control, the Independent Counsel referred to below; and (ii) the “Independent Counsel” shall be a law firm, or a member of a law firm, (x) experienced in matters of corporate law, (y) selected by Indemnitee and approved by the Company (which approval shall not be unreasonably withheld, delayed or conditioned), and (z) who or which has not otherwise performed services for the Company or Indemnitee (other than in connection with indemnification matters hereunder or under other similar indemnification agreements) or for any other party to the Proceeding giving rise to a claim for indemnification hereunder, in each case in this clause (z), within the last five years; provided that the Independent Counsel shall not be any law firm or person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights

 

5

 

under this Agreement. Where there has been a written demand by Indemnitee for indemnification hereunder, then as soon as is reasonably practicable, the Reviewing Party shall make a determination with respect to Indemnitee’s entitlement thereto, which determination shall be set forth in a written opinion delivered to the Company and Indemnitee. Indemnitee shall reasonably cooperate with the Reviewing Party, including providing to the Reviewing Party upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination. Any Expenses reasonably incurred by Indemnitee in so cooperating with the Reviewing Party shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification). The Company agrees to pay the reasonable fees of the Independent Counsel and to indemnify fully such counsel against any and all expenses (including attorneys’ fees), claims, liabilities, loss, and damages arising out of or relating to this Agreement or the engagement of Independent Counsel pursuant hereto.

 

4.                                      Indemnification Process and Appeal.

 

(a)                                 Indemnification Payment. Indemnitee shall be entitled to Expense Advances and indemnification of Expenses and Losses, and shall receive payment thereof, from the Company in accordance with this Agreement as soon as practicable after Indemnitee has made written demand on the Company for such Expense Advances or indemnification, unless the Reviewing Party has made a determination that Indemnitee is not entitled to such Expense Advances or indemnification.

 

(b)                                 Suit to Enforce Rights. Regardless of any action by the Reviewing Party, if Indemnitee has not received the full amount of any Expense Advances or full indemnification, as applicable, within thirty days after making a demand in accordance with Section 4(a), Indemnitee shall have the right to enforce its rights under this Agreement by commencing litigation in the Court of Chancery of the State of Delaware (the “Delaware Chancery Court”), seeking an initial determination by such court or challenging any determination by the Reviewing Party or any aspect thereof. The Company hereby consents to service of process and to appear in any such proceeding. The remedy provided for in this Section 4 shall be in addition to any other remedies available to Indemnitee at law or in equity.

 

(c)                                  Defense to Indemnification, Burden of Proof, and Presumptions. It shall be a defense to any action brought by Indemnitee against the Company to enforce this Agreement (other than an action brought to enforce a claim for Expenses incurred in defending a Proceeding in advance of its final disposition) that the Company is prohibited by applicable law from indemnifying Indemnitee for the amount claimed. In connection with any such action or any determination by the Reviewing Party or otherwise as to whether Indemnitee is entitled to be indemnified hereunder, it shall be presumed, to the fullest extent not prohibited by law, that Indemnitee is entitled to indemnification under this Agreement, and the burden of proof to establish such defense or overcome such presumption shall be on the Company. Neither the failure of the Reviewing Party or the Company (including the Board, independent legal counsel, or its stockholders) to have made a determination prior to the commencement of such action by Indemnitee that indemnification of the claimant is proper under the circumstances because Indemnitee has met the standard of conduct set forth in applicable law, nor an actual determination by the Reviewing Party or the Company (including the Board, independent legal

 

6

 

counsel, or its stockholders) that Indemnitee had not met any applicable standard of conduct, shall be a defense to the action or create a presumption that the Indemnitee has not met the applicable standard of conduct. For purposes of this Agreement, the termination of any claim, action, suit, or proceeding, by judgment, order, settlement (whether with or without court approval), conviction, or upon a plea of nolo contendere, or its equivalent, shall not create a presumption that Indemnitee did not meet any particular standard of conduct or have any particular belief or that a court has determined that indemnification is prohibited by applicable law.

 

(d)                                 Knowledge of Others. The knowledge and/or actions, or failure to act, of any other director, trustee, partner, managing member, fiduciary, officer, agent or employee of the Company or any Related Entity of which Indemnitee is or was serving at the Company’s Request or Direction as a director, officer, trustee, general partner, managing member, fiduciary, board of directors’ committee member, employee or agent, shall not be imputed to Indemnitee for purposes of determining any right to indemnification under this Agreement.

 

5.                                      Indemnification for Expenses Incurred in Enforcing Rights.

 

The Company shall indemnify Indemnitee against any and all Expenses that are incurred by Indemnitee in connection with any action brought by Indemnitee for (i) indemnification or advance payment of Expenses by the Company under this Agreement, the Certificate of Incorporation, the Bylaws or applicable law, in each case now or hereafter in effect relating to advancement of Expenses or indemnification for Indemnifiable Events, and/or (ii) recovery under directors’ and officers’ liability insurance policies maintained by the Company, except to the extent not permitted by law. In addition, the Company shall advance all Expenses incurred by Indemnitee in pursuing an action to enforce Indemnitee’s rights under this Agreement.

 

6.                                      Notification and Defense of Proceeding.

 

(a)                                 Notice. Promptly after receipt by Indemnitee of notice of the commencement of any Proceeding, Indemnitee shall, if a claim in respect thereof is to be made against the Company under this Agreement, notify the Company of the commencement thereof; but the failure so to notify the Company will not relieve the Company from any liability that it may have to Indemnitee.

 

(b)                                 Defense. With respect to any such Proceeding, (i) Indemnitee shall be entitled to control the prosecution or defense thereof with (x) before a Change in Control, counsel of the Company’s choosing, which shall be reasonably acceptable to Indemnitee, or (y) after a Change in Control, counsel of Indemnitee’s choosing, which shall be reasonably acceptable to the Company; provided that, regardless of whether or not a Change in Control has occurred, Indemnitee agrees to jointly engage the same counsel as the other individuals party to similar indemnification agreements with the Company with respect to any Proceeding arising from the same or substantially similar facts and circumstances, except that Indemnitee may engage separate counsel to the extent that (x) the Company has previously authorized Indemnitee in writing to do so or (y) Indemnitee shall have reasonably concluded upon the advice of counsel that there is a conflict of interest between Indemnitee and the other individuals party to similar indemnification agreements with the Company in respect of the conduct of the prosecution or

 

7

 

defense of such Proceeding, and (ii) the Company will be entitled to participate in the Proceeding at its own expense.

 

(c)                                  Settlement of Claims. The Company shall not be liable to indemnify Indemnitee under this Agreement or otherwise for any amounts paid in settlement of any Proceeding effected without the Company’s written consent, such consent not to be unreasonably withheld, conditioned or delayed; provided, however, that if a Change in Control has occurred (other than a Change in Control approved by a majority of the directors on the Board who were directors immediately prior to such Change in Control), the Company shall be liable for indemnification of Indemnitee for amounts paid in settlement if the Independent Counsel has approved the settlement. The Company shall not settle any Proceeding in any manner that would impose any Losses or limitation on Indemnitee, or would constitute or result in any admission of negligence or wrongdoing or the making of any other statement against Indemnitee’s interest, without Indemnitee’s written consent.

 

7.                                      Entire Agreement.

 

This Agreement and the documents referred to herein constitute the entire agreement between the parties hereto with respect to the matters covered hereby, and any other prior or contemporaneous oral or written understandings or agreements with respect to the matters covered hereby are superseded by this Agreement; provided that this Agreement is a supplement to and in furtherance of the Certificate of Incorporation and the Bylaws of the Company and applicable law, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.

 

8.                                      Non-Exclusivity.

 

The rights of Indemnitee hereunder shall be in addition to any other rights Indemnitee may have under the Certificate of Incorporation, the Bylaws, applicable law, or otherwise; provided, however, that this Agreement shall supersede any prior indemnification agreement between the Company and Indemnitee. To the extent that a change in applicable law (whether by statute or judicial decision) permits greater indemnification or advancement than would be afforded currently under the Certificate of Incorporation, the Bylaws, applicable law, or this Agreement, it is the intent of the parties that Indemnitee enjoy by this Agreement the greater benefits so afforded by such change.

 

9.                                      Liability Insurance.

 

To the extent the Company maintains an insurance policy or policies providing general and/or directors’ and officers’ liability insurance, Indemnitee shall be covered by such policy or policies, in accordance with its or their terms, to the maximum extent of the coverage available for any Company director or officer or member of the Employee Shareholders Committee.

 

10.                               Period of Limitations.

 

No legal action shall be brought and no cause of action shall be asserted by or on behalf of the Company or any Affiliate of the Company against Indemnitee, Indemnitee’s spouse, heirs, executors, or personal or legal representatives after the expiration of two years from the date of

 

8

 

accrual of such cause of action, or such longer period as may be required by state law under the circumstances. Any claim or cause of action of the Company or any of its Affiliates shall be extinguished and deemed released unless asserted by the timely filing and notice of a legal action within such period; provided, however, that if any shorter period of limitations is otherwise applicable to any such cause of action, the shorter period shall govern.

 

11.                               Duration of Agreement.

 

This Agreement shall continue until and terminate upon the later of (a) ten (10) years after the date that Indemnitee shall have ceased to serve as a director, officer, employee or agent of the Company or member of the Employee Shareholders Committee or (b) one year after the final termination of any Proceeding then pending in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses hereunder and of any proceeding (including any appeal thereof) commenced by Indemnitee pursuant to this Agreement relating thereto. The indemnification and advancement of expenses rights provided by or granted pursuant to this Agreement shall be binding upon and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), shall continue as to an Indemnitee who has ceased to be a director, officer, employee or agent of the Company or of any other Related Entity or member of the Employee Shareholders Committee, and shall inure to the benefit of Indemnitee and Indemnitee’s spouse, assigns, heirs, devisees, executors and administrators and other legal representatives.

 

12.                               Amendment of this Agreement.

 

No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be binding unless in the form of a writing signed by the party against whom enforcement of the waiver is sought, and no such waiver shall operate as a waiver of any other provisions hereof (whether or not similar), nor shall such waiver constitute a continuing waiver. Except as specifically provided herein, no failure to exercise or any delay in exercising any right or remedy hereunder shall constitute a waiver thereof.

 

13.                               Subrogation.

 

In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and shall do everything that may be necessary to secure such rights, including the execution of such documents necessary to enable the Company effectively to bring suit to enforce such rights.

 

14.                               No Duplication of Payments.

 

The Company shall not be liable under this Agreement to make any payment to Indemnitee hereunder to the extent Indemnitee has otherwise received payment (under any insurance policy, the Certificate of Incorporation, the Bylaws or otherwise) of the amounts indemnifiable hereunder.

 

9

 

15.                               Binding Effect.

 

This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors (including any direct or indirect successor by purchase, merger, consolidation, or otherwise to all or substantially all of the business and/or assets of the Company), assigns, spouses, heirs, and personal and legal representatives. The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation, or otherwise) to all, substantially all, or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place. The indemnification provided under this Agreement shall continue as to Indemnitee for any action taken or not taken while serving in an indemnified capacity pertaining to an Indemnifiable Event even though he may have ceased to serve in such capacity at the time of any Proceeding.

 

16.                               Severability.

 

If any provision (or portion thereof) of this Agreement shall be held by a court of competent jurisdiction to be invalid, void, or otherwise unenforceable, the remaining provisions shall remain enforceable to the fullest extent permitted by law. Furthermore, to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of this Agreement containing any provision held to be invalid, void, or otherwise unenforceable, which is not itself invalid, void, or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, void, or unenforceable.

 

17.                               Enforcement.

 

The Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve or continue to serve as a director or officer of the Company or member of the Employee Shareholders Committee, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as a director or officer of the Company or member of the Employee Shareholders Committee.

 

18.                               Entire Agreement.

 

This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof; provided, however, that this Agreement is a supplement to and in furtherance of the Certificate of Incorporation, the Bylaws, any directors’ and officers’ liability insurance maintained by the Company and applicable law, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.

 

19.                               Governing Law.

 

This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware applicable to contracts made and to be performed in such State

 

10

 

without giving effect to its principles of conflicts of laws. The Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Delaware Chancery Court, and not in any other state or federal court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of such court for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) waive any objection to the laying of venue of any such action or proceeding in such court, and (iv) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in such court has been brought in an improper or inconvenient forum.

 

20.                               Contribution.

 

(a)           Whether or not the indemnification provided in this agreement is available, in respect of any Proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), the Company shall pay, in the first instance, the entire amount of any judgment or settlement of such Proceeding without requiring Indemnitee to contribute to such payment, and the Company hereby waives and relinquishes any right of contribution it may have against Indemnitee. The Company shall not enter into any settlement of Proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such Proceeding) unless such settlement provides for a full and final release of all claims asserted against Indemnitee. The Company shall not settle any Proceeding in a manner that would impose any penalty or admission of guilt or liability on Indemnitee without Indemnitee’s written consent.

 

(b)           Without diminishing or impairing the obligations of the Company set forth in the preceding subparagraph, if, for any reason, Indemnitee shall elect or be required to pay all or any portion of any judgment or settlement in any Proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such Proceeding), the Company shall contribute to the amount of Expenses and Losses paid or payable by Indemnitee in proportion to the relative benefits received by the Company and all officers, directors or employees of the Company or members of the Employee Shareholders Committee, other than Indemnitee, who are jointly liable with Indemnitee (or would be if joined in such Proceeding), on the one hand, and Indemnitee, on the other hand, from the transaction from which such Proceeding arose; provided, however, that the proportion determined on the basis of relative benefit may, to the extent necessary to conform to law, be further adjusted by reference to the relative fault of the Company and all officers, directors or employees of the Company or members of the Employee Shareholders Committee other than Indemnitee who are jointly liable with Indemnitee (or would be if joined in such Proceeding), on the one hand, and Indemnitee, on the other hand, in connection with the events that resulted in such Expenses and/or Losses, as well as any other equitable considerations which the applicable law may require to be considered. The relative fault of the Company and all officers, directors or employees of the Company, other than Indemnitee, who are jointly liable with Indemnitee (or would be if joined in such Proceeding), on the one hand, and Indemnitee, on the other hand, shall be determined by reference to, among other things, the degree to which their actions were motivated by intent to gain personal profit or advantage, the degree to which their liability is primary or secondary and the degree to which their respective conduct is active or passive.

 

11

 

(c)           The Company hereby agrees to fully indemnify and hold Indemnitee harmless from any claims of contribution which may be brought by officers, directors or employees of the Company or members of the Employee Shareholders Committee, other than Indemnitee, who may be jointly liable with Indemnitee.

 

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

 

21.                               Notices.

 

All notices, demands, and other communications required or permitted hereunder shall be made in writing and shall be deemed to have been duly given, if delivered by hand, against receipt, or if mailed, postage prepaid, certified or registered mail, return receipt requested, and addressed (i) if to the Company, at Victory Capital Holdings, Inc., 4900 Tiedeman Road, Brooklyn, Ohio, Attention: Chief Legal Officer and Secretary, and (ii) if to Indemnitee, at the address set forth on the Indemnitee’s signature page hereto. Notice of change of such addresses shall be effective only when given in accordance with this Section. All notices complying with this Section shall be deemed to have been received on the date of hand delivery or on the third business day after mailing.

 

22.                               Counterparts.

 

This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

23.                               Headings.

 

The Section headings in this Agreement are for convenience of reference only, and shall not be deemed to alter or affect the meaning or interpretation of any provisions hereof.

 

12

 

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

 

	
 
    	
VICTORY CAPITAL HOLDINGS. INC.
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
INDEMNITEE
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
Address:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00278-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00278-of-00352.parquet"}]]