Document:

Exhibit 10.15

 

AMENDED
AND RESTATED

SENIOR MANAGEMENT AGREEMENT

 

THIS AMENDED AND RESTATED SENIOR
MANAGEMENT AGREEMENT (this “Agreement”) is made as of
April 13, 2006, by and among Solera Holdings, LLC, a Delaware limited liability
company (the “Company”), Solera, Inc., a Delaware corporation (“Employer”),
and John Schwinn (“Executive”).

 

On April 11, 2005, pursuant to the Senior Management
Agreement, dated as of April 11, 2005, by and among the Company, Employer and
Executive (the “Prior Senior Management Agreement”), Executive purchased
from the Company (i) 799,537 of the Company’s Class A Common Units (as defined
below) and (ii) 1.771 of the Company’s Class BPreferred
Units (as defined below). On the date hereof, pursuant to the terms and
conditions of this Agreement, (i) the Company will purchase from Executive
187,484 Class A Common Units and (ii) Executive will purchase from the Company
187.023 Class B Preferred Units. All Class B Preferred Units and Class A Common
Units owned by Executive or acquired by Executive pursuant to this Agreement or
the Prior Senior Management Agreement are referred to herein as “Executive
Securities”. Certain definitions are set forth in Section 9 of
this Agreement.

 

On the date hereof, the Company and GTCR Fund VIII,
L.P., a Delaware limited partnership, GTCR Fund VIII/B, L.P., a Delaware
limited partnership, and GTCR Co-Invest II, L.P., a Delaware limited
partnership (together with any other investment fund managed by GTCR I (as
defined below) or GTCR II (as defined below) that at any time executes a
counterpart to the Purchase Agreement or otherwise agrees to be bound thereby,
collectively, the “Investors”, and each, an “Investor”), are
entering into an Amended and Restated Unit Purchase Agreement (the “Purchase
Agreement”).

 

In connection with the execution of the Purchase
Agreement, the Company, Employer and Executive desire to amend and restate the
Prior Senior Management Agreement in its entirety. Certain provisions of this
Agreement are intended for the benefit of, and will be enforceable by, the
Investors.

 

NOW, THEREFORE, in consideration of the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties to the
Prior Senior Management Agreement hereby agree to amend and restate the Prior
Senior Management Agreement in its entirety as follows and all parties hereto
hereby agree as follows:

 

PROVISIONS RELATING TO EXECUTIVE
SECURITIES

 

1.             Purchase and Sale
of Executive Securities.

 

(a)           Pursuant
to the Prior Senior Management Agreement, on April 11, 2005, Executive
purchased, and the Company sold, (i) 799,537 Class A Common Units and (ii)
1.771 Class B Preferred Units. On such date, the Company delivered to Executive
a copy of the certificates evidencing such Executive Securities, and Executive
delivered to Employer, for the benefit of the Company, a cashier’s or certified
check or wire transfer of immediately available funds in an aggregate amount
equal to $81,725.00 as payment for such Executive Securities.

 

 

(b)           Upon
the execution of this Agreement, (i) the Company will purchase, and Executive
will sell, 187,484 Class A Common Units at a price of $0.10 per unit and (ii)
Executive will purchase, and the Company will sell, 187.023 Class B Preferred
Units at a price of $1,000.00 per unit. On the date hereof, Executive will
deliver to the Company a cashier’s or certified check or wire transfer of
immediately available funds in an aggregate amount equal to $168,275.00 as net
payment for such purchases and sales. Following such sale of Class A Common
Units and such purchase of Class B Preferred Units, Executive will own the
following Executive Securities: (i) 533,388 Class A Common Units, which units
shall be referred to herein as the “Carried Common Units”; (ii) 78,665
Class A Common Units, which units shall be referred to herein as the “Co-Invest
Common Units”; and (iii) 188.794 Class B Preferred Units. The Company will
deliver to Executive copies of the certificates representing such Executive
Securities. The Co-Invest Common Units, together with the Class B Preferred
Units acquired by Executive pursuant to the Prior Senior Management Agreement
and/or hereunder, shall be referred to herein as the “Co-Invest Units”.

 

(c)           On
April 22, 2005, Executive made an effective election with the Internal Revenue
Service under Section 83(b) of the Internal Revenue Code and the
regulations promulgated thereunder in the form of Exhibit A
attached to the Prior Senior Management Agreement.

 

(d)           Until
released upon the occurrence of a Sale of the Company or a Public Offering as
provided below, all certificates evidencing Executive Securities shall be held
by the Company for the benefit of Executive and the other holder(s) of
Executive Securities. Upon the occurrence of a Sale of the Company, the Company
will return all certificates in its possession evidencing Executive Securities
to the record holders thereof. Upon the consummation of a Public Offering, the
Company will return to the record holders thereof certificates in its
possession evidencing the Co-Invest Units and the Vested Carried Common Units
(as defined below).

 

(e)           In
connection with the purchase and sale of the Executive Securities, Executive
represents and warrants to the Company that:

 

(i)            The
Executive Securities to be acquired by Executive pursuant to this Agreement
will be acquired for Executive’s own account and not with a view to, or
intention of, distribution thereof in violation of the Securities Act, or any
applicable state securities laws, and the Executive Securities will not be
disposed of in contravention of the Securities Act or any applicable state
securities laws.

 

(ii)           Executive
is an executive officer of the Company and/or Employer, is sophisticated in
financial matters and is able to evaluate the risks and benefits of the
investment in the Executive Securities.

 

(iii)          Executive is an “accredited investor” within
the meaning of Rule 501 of Regulation D of the Securities and Exchange
Commission.

 

(iv)          Executive
is able to bear the economic risk of his investment in the Executive Securities
for an indefinite period of time because the Executive Securities 

 

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have not been
registered under the Securities Act and, therefore, cannot be sold unless
subsequently registered under the Securities Act or an exemption from such
registration is available.

 

(v)           Executive
has had an opportunity to ask questions and receive answers concerning the
terms and conditions of the offering of Executive Securities and has had full
access to such other information concerning the Company as he has requested.

 

(vi)          This
Agreement constitutes the legal, valid and binding obligation of Executive,
enforceable in accordance with its terms, and the execution, delivery and
performance of this Agreement by Executive does not and will not conflict with,
violate or cause a breach of any agreement, contract or instrument to which
Executive is a party or any judgment, order or decree to which Executive is
subject.

 

(vii)         Except for (A) the Non-Solicitation and
Non-Competition Agreement, dated September 18, 2001, between Executive and
Mitchell International, Inc. (the “Prior Agreement”) and (B) this
Agreement, Executive is neither party to, nor bound by, any other employment
agreement, consulting agreement, noncompete agreement, non-solicitation
agreement or confidentiality agreement.

 

(viii)        Executive is a resident of the State of
California.

 

(f)            As
an inducement to the Company to issue the Executive Securities to Executive,
and as a condition thereto, Executive acknowledges and agrees that neither the
issuance of the Executive Securities to Executive nor any provision contained
in this Section 1 shall entitle Executive to remain in the employment of
the Company, Employer or their respective Subsidiaries or affect the right of
the Company, Employer or their respective Subsidiaries to terminate Executive’s
employment at any time for any reason.

 

(g)           In
accordance with the terms of the Prior Senior Management Agreement, Executive
has executed in blank ten security transfer powers (the “Security Powers”)
with respect to the Executive Securities acquired pursuant to the Prior Senior
Management Agreement and has delivered such Security Powers to the Company. Concurrently
with the execution of this Agreement, Executive shall execute in blank ten
Security Powers in the form of Exhibit A attached hereto with
respect to the Executive Securities acquired hereunder and shall deliver such
Security Powers to the Company. The Security Powers shall authorize the Company
to assign, transfer and deliver the Executive Securities acquired hereunder to
the appropriate acquiror thereof pursuant to Section 3 below or Section
4 of the Securityholders Agreement and under no other circumstances.

 

(h)           Concurrently
with the execution of this Agreement, if Executive is lawfully married,
Executive’s spouse shall execute the Consent in the form of Exhibit B
attached hereto.

 

(i)            On
April 11, 2005, Executive became a party to the LLC Agreement and a party to
the Securityholders Agreement and the Registration Agreement, in each case, in
the capacity of an Executive and Securityholder.

 

3

 

2.             Vesting of Carried
Common Units.

 

(a)           The
Co-Invest Units shall be fully vested upon the execution of this Agreement. The
Carried Common Units shall be subject to vesting in the manner specified in
this Section 2.

 

(b)           Except
as otherwise provided in this Section 2, the Carried Common Units shall
become vested, in accordance with the following schedule, if as of each such
date Executive is employed by the Company or any of its Subsidiaries:

 

	
  Date

  	
   

  	
  Cumulative 

  Percentage of Carried Common

   Units Vested

  	
   

  
	
  April 11, 2006

  	
   

  	
  20.00

  	
  %

  
	
  June 30, 2006

  	
   

  	
  25.00

  	
  %

  
	
  September 30, 2006

  	
   

  	
  30.00

  	
  %

  
	
  December 31, 2006

  	
   

  	
  35.00

  	
  %

  
	
  March 31, 2007

  	
   

  	
  40.00

  	
  %

  
	
  June 30, 2007

  	
   

  	
  45.00

  	
  %

  
	
  September 30, 2007

  	
   

  	
  50.00

  	
  %

  
	
  December 31, 2007

  	
   

  	
  55.00

  	
  %

  
	
  March 31, 2008

  	
   

  	
  60.00

  	
  %

  
	
  June 30, 2008

  	
   

  	
  65.00

  	
  %

  
	
  September 30, 2008

  	
   

  	
  70.00

  	
  %

  
	
  December 31, 2008

  	
   

  	
  75.00

  	
  %

  
	
  March 31, 2009

  	
   

  	
  80.00

  	
  %

  
	
  June 30, 2009

  	
   

  	
  85.00

  	
  %

  
	
  September 30, 2009

  	
   

  	
  90.00

  	
  %

  
	
  December 31, 2009

  	
   

  	
  95.00

  	
  %

  
	
  March 31, 2010

  	
   

  	
  100.00

  	
  %

  

 

(c)           Upon
the occurrence of a Sale of the Company, all Carried Common Units which have
not yet become vested shall become vested as of the date of consummation of the
Sale of the Company, if, as of such date, Executive has been continuously
employed by the Company, Employer or any of their Subsidiaries from the date of
this Agreement through and including such date.

 

(d)           Carried
Common Units that have become vested (“Vested Carried Common Units”) and
the Co-Invest Units that are Class A Common Units are referred to herein as “Vested
Common Units.”  The Vested Common
Units and the Class B Preferred Units are collectively referred to herein as “Vested
Units.”  All Carried Common Units
that have not vested are referred to herein as “Unvested Carried Common
Units.”

 

3.             Repurchase Option.

 

(a)           In
the event of a Separation, the Executive Securities (whether vested or unvested
and whether held by Executive or one or more of Executive’s transferees, other
than the 

 

4

 

Company and the Investors) will be subject to
repurchase, in each case by the Company and the Investors pursuant to the terms
and conditions set forth in this Section 3 (the “Repurchase
Option”). The Company may assign its repurchase rights set forth in this Section
3 to any Person; provided that if there is a Subsidiary Public
Offering and the securities of such Subsidiary are distributed to the members
of the Company, then such Subsidiary will be treated as the Company for
purposes of this Section 3 with respect to any repurchase of the
securities of such Subsidiary.

 

(b)           In
the event of a Separation, (i) the purchase price for each Unvested Carried
Common Unit will be the lesser of (A) Executive’s Original Cost for such unit
and (B) the Fair Market Value of such unit as of the delivery date of the
Repurchase Notice or Supplemental Repurchase Notice, as the case may be, in
either case first delivered pursuant to Section 3(c) and (ii) the
purchase price for each Vested Carried Common Unit and Co-Invest Unit will be
the Fair Market Value of such unit as of the delivery date of the Repurchase
Notice or Supplemental Repurchase Notice, as the case may be, in either case
delivered pursuant to Section 3(c); provided, however, that if
Executive’s employment is terminated with Cause, the purchase price for each
Vested Carried Common Unit will be the lesser of (A) Executive’s Original Cost
for such unit and (B) the Fair Market Value of such unit as of the delivery
date of the Repurchase Notice or Supplemental Repurchase Notice, as the case
may be.

 

(c)           In
the event of a Separation, the Company (with the approval of the Board) may
elect to purchase all or any portion of the Executive Securities pursuant to
this Section 3 by delivering written notice (the “Repurchase Notice”)
to the holder or holders of such securities within six months and 10 days after
the Separation. The Repurchase Notice will set forth the number and type (i.e.,
Unvested Carried Common Unit, Vested Carried Common Unit, Co-Invest Common Unit
or Class B Preferred Unit) of Executive Securities to be acquired from each
holder, the aggregate consideration to be paid for such units and the time and
place for the closing of the transaction. Executive Securities to be
repurchased by the Company shall first be satisfied to the extent possible from
the Executive Securities held by Executive at the time of delivery of the
Repurchase Notice. If the number of Executive Securities of the type(s) to be
repurchased by the Company then held by Executive is less than the total number
of such type(s) of the applicable Executive Securities that the Company has
elected to purchase, the Company shall purchase the remaining Executive
Securities elected to be purchased from the other holder(s) of Executive
Securities under this Agreement (i.e., Executive’s Permitted Transferees), pro
rata according to the number of Executive Securities of such type held by such other
holder(s) at the time of delivery of such Repurchase Notice (determined as
nearly as practicable to the nearest unit). The number of Unvested Carried
Common Units and Vested Common Units to be repurchased hereunder will be
allocated among Executive and the other holders of Executive Securities (if
any) pro rata according to the number of Class A Common Units to be purchased
from such Person.

 

(d)           If
for any reason the Company does not elect to purchase all of the Executive
Securities pursuant to the Repurchase Option, the Investors shall be entitled
to exercise the Repurchase Option for all or any portion of the Executive
Securities that the Company has not elected to purchase (the “Available
Securities”). As soon as practicable after the Company has determined that
there will be Available Securities, but in any event within five months after
the Separation, the Company shall give written notice (the “Option Notice”)
to the Investors setting 

 

5

 

forth the number and type (i.e., Unvested Carried
Common Unit, Vested Carried Common Unit, Co-Invest Common Unit or Class B
Preferred Unit) of Available Securities and the purchase price(s) for such
Available Securities. The Investors may elect to purchase any or all of the
Available Securities by giving written notice to the Company within six months
and 10 days after the Separation. If the Investors elect to purchase an
aggregate number of any type of the Available Securities that is greater than
the number of such type of Available Securities, the Available Securities of
such type shall be allocated among the Investors based upon the number of
Executive Securities owned by each Investor. As soon as practicable, and in any
event within ten days, after the expiration of the six-month and ten-day period
set forth above, the Company shall notify each holder of Executive Securities
as to the number and type of units being purchased from such holder by the
Investors (the “Supplemental Repurchase Notice”). At the time the
Company delivers the Supplemental Repurchase Notice to the holder(s) of
Executive Securities, the Company shall also deliver written notice to each
Investor setting forth the number and type of units such Investor is entitled
to purchase, the aggregate purchase price and the time and place of the closing
of the transaction. The number of Unvested Carried Common Units and Vested
Common Units to be repurchased hereunder shall be allocated among the Company
and the Investors pro rata according to the number of Class A Common Units to
be purchased by each of them.

 

(e)           The
closing of the purchase of the Executive Securities pursuant to the Repurchase
Option shall take place on the date designated by the Company in the Repurchase
Notice or Supplemental Repurchase Notice, which date shall not be more than one
month nor less than five days after the delivery of the later of either such
notice to be delivered. The Company will pay for the Executive Securities to be
purchased by it pursuant to the Repurchase Option by first offsetting amounts
outstanding under any bona fide debts owed by Executive to the Company, and
will pay the remainder of the purchase price by, at its option, (A) a check or
wire transfer of funds, (B) if the purchase is being made by a corporate successor
to the Company, the issuance of a subordinated promissory note of the Company
bearing interest at a rate equal to such rate as may be determined by the Board
(provided that such rate may not be less than the prime rate (as published in The
Wall Street Journal from time to time)) and having such maturity provisions
as the Company shall determine in good faith, (C) issuing in exchange for such
securities a number of the Company’s Class A Preferred Units (having the rights
and preferences set forth in the LLC Agreement) equal to (x) the aggregate
portion of the repurchase price for such Executive Securities determined in
accordance with this Section 3 to be paid by the issuance of Class A
Preferred Units divided by (y) 1,000, and for purposes of the LLC
Agreement each such Class A Preferred Unit shall as of its issuance be deemed
to have Capital Contributions (as defined in the LLC Agreement) made with
respect to such Class A Preferred Unit equal to $1,000, or (D) any combination
of (A), (B) and (C) as the Board may elect in its discretion; provided that, to
the extent that the Company has readily available cash resources in excess of
its working capital and other reasonable cash needs and without imposing any
obligation on the Company to raise financing to fund the repurchases or to
materially impair its financial liquidity or condition, the Company shall use
reasonable efforts to pay the purchase price for such Executive Securities
pursuant to the foregoing clause (A). Each Investor will pay for the Executive
Securities purchased by it by a check or wire transfer of funds. The Company
and the Investors will be entitled to receive customary representations and
warranties from the sellers regarding such sale and require that all sellers’
signatures be guaranteed.

 

6

 

By way of example only for the purpose of clarifying
the mechanics of clause (C) of Section 3(e), if the Company intends to
repurchase Executive Securities consisting of 3,000,000 Class A Common Units by
issuance of Class A Preferred Units and the aggregate repurchase price for such
Class A Common Units determined in accordance with this Section 3 is
$400,500, then the Company would issue to Executive 400.5 Class A Preferred
Units, and for purposes of the LLC Agreement each whole Class A Preferred Unit
issued to Executive would as of its issuance be deemed to have Capital
Contributions made for such Class A Preferred Unit of $1,000, and the Capital
Contributions made for the one-half Class A Preferred Unit would be $500.

 

(f)            Notwithstanding
anything to the contrary contained in this Agreement, all repurchases of
Executive Securities by the Company pursuant to the Repurchase Option shall be
subject to applicable restrictions contained in the Delaware Limited Liability
Company Act, the Delaware General Corporation Law or such other governing
corporate or limited liability company law, and in the Company’s and its
Subsidiaries’ debt and equity financing agreements. If any such restrictions
prohibit (i) the repurchase of Executive Securities hereunder which the Company
is otherwise entitled or required to make or (ii) dividends or other transfers
of funds from one or more Subsidiaries to the Company to enable such
repurchases, then the Company may make such repurchases as soon as it is
permitted to make repurchases or receive funds from Subsidiaries under such
restrictions.

 

(g)           Notwithstanding
anything to the contrary contained in this Agreement, if the Fair Market Value
of Executive Securities is finally determined to be an amount at least 10%
greater than the per unit repurchase price for such unit of Executive
Securities in the Repurchase Notice or in the Supplemental Repurchase Notice,
each of the Company and the Investors shall have the right to revoke its
exercise of the Repurchase Option for all or any portion of the Executive
Securities elected to be repurchased by it by delivering notice of such
revocation in writing to the holders of Executive Securities during the thirty-day
period beginning on the date that the Company and/or the Investors are given
written notice that the Fair Market Value of a unit of Executive Securities was
finally determined to be an amount at least 10% greater than the per unit
repurchase price for Executive Securities set forth in the Repurchase Notice or
in the Supplemental Repurchase Notice.

 

(h)           The
provisions of this Section 3 will terminate with respect to all
Executive Securities upon the consummation of a Public Offering or a Sale of
the Company.

 

4.             Restrictions on Transfer
of Executive Securities.

 

(a)           Transfer
of Executive Securities. The holders of Executive Securities shall not
Transfer any interest in any Executive Securities, except pursuant to
(i) the provisions of Section 3 hereof, (ii) the provisions of
Section 2 of the Securityholders Agreement (a “Participating
Sale”), (iii) an Approved Sale (as defined in Section 4 of the
Securityholders Agreement), or (iv) the provisions of Section 4(b)
below.

 

(b)           Certain
Permitted Transfers. The restrictions in this Section 4 will
not apply with respect to any Transfer of Executive Securities made
(i) pursuant to applicable laws of descent and distribution or to such
Person’s legal guardian in the case of any mental incapacity or 

 

7

 

among such Person’s Family Group, or (ii) subject
to the restrictions on transfer set forth in the Registration Agreement
(including, without limitation, in Section 3 thereof) or any agreement
entered into pursuant thereto, of Class A Common Units at such time as the
Investors sell Class A Common Units in a Public Sale, but in the case of
this clause (ii) only an amount of Class A Common Units (the “Transfer
Amount”) equal to the lesser of (A) the sum of the number of Vested Carried
Common Units and Co-Invest Common Units owned by Executive and (B) the product
of (I) the number of Class A Common Units owned by Executive and (II) a
fraction (the “Transfer Fraction”), the numerator of which is the number
of Class A Common Units sold by the Investors in such Public Sale and the
denominator of which is the total number of Class A Common Units held by the
Investors prior to such Public Sale; provided that, if at the time of a
Public Sale of units by the Investors, Executive chooses not to Transfer the Transfer
Amount, Executive shall retain the right to Transfer an amount of Class A
Common Units at a future date equal to the lesser of (x) the sum of the number
of Vested Carried Common Units and Co-Invest Common Units owned by Executive at
such future date and (y) the product of the number of Class A Common Units
owned by Executive at such future date and the Transfer Fraction; provided
further that the restrictions contained in this Section 4 will
continue to be applicable to the Executive Securities after any Transfer of the
type referred to in clause (i) above and the transferees of such
Executive Securities must agree in writing to be bound by the provisions of
this Agreement. Any transferee of Executive Securities pursuant to a Transfer
in accordance with the provisions of clause (i) of this Section 4(b)
is herein referred to as a “Permitted Transferee.”  Upon the Transfer of Executive Securities
pursuant to this Section 4(b), the transferring holder of Executive
Securities will deliver a written notice (a “Transfer Notice”) to the
Company. In the case of a Transfer pursuant to clause (i) hereof, the
Transfer Notice will disclose in reasonable detail the identity of the
Permitted Transferee(s).

 

(c)           Termination
of Restrictions. The restrictions set forth in this Section 4
will continue with respect to each unit of Executive Securities until the
earlier of (i) the date on which such unit of Executive Securities has
been transferred in a Public Sale permitted by this Section 4, or
(ii) the consummation of a Sale of the Company.

 

5.             Additional
Restrictions on Transfer of Executive Securities.

 

(a)           Legend.
The certificates representing the Executive Securities will bear a legend in
substantially the following form:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE WERE
ORIGINALLY ISSUED AS OF APRIL 13, 2006, HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY NOT BE SOLD OR
TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT
OR AN EXEMPTION FROM REGISTRATION THEREUNDER. THE SECURITIES REPRESENTED BY
THIS CERTIFICATE ARE ALSO SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER,
CERTAIN REPURCHASE OPTIONS AND CERTAIN OTHER AGREEMENTS SET FORTH IN AN AMENDED
AND RESTATED SENIOR MANAGEMENT AGREEMENT BETWEEN THE COMPANY AND AN EXECUTIVE
OF THE COMPANY AND OTHER PARTIES, DATED AS OF APRIL 13, 2006, AS 

 

8

 

AMENDED. A COPY OF SUCH AGREEMENT MAY BE OBTAINED BY
THE HOLDER HEREOF AT THE COMPANY’S PRINCIPAL PLACE OF BUSINESS WITHOUT CHARGE.”

 

(b)           Opinion
of Counsel. No holder of Executive Securities may Transfer any Executive
Securities (except pursuant to Section 3 or 4(b) of this Agreement, Section
4 of the Securityholders Agreement or an effective registration statement
under the Securities Act) without first delivering to the Company a written
notice describing in reasonable detail the proposed Transfer, together with an
opinion of counsel (reasonably acceptable in form and substance to the Company)
that neither registration nor qualification under the Securities Act and
applicable state securities laws is required in connection with such transfer. In
addition, if the holder of the Executive Securities delivers to the Company an
opinion of counsel that no subsequent Transfer of such Executive Securities
shall require registration under the Securities Act, the Company shall promptly
upon such contemplated Transfer deliver new certificates for such Executive
Securities that do not bear the Securities Act portion of the legend set forth
in Section 5(a). If the Company is not required to deliver new
certificates for such Executive Securities not bearing such legend, the holder
thereof shall not Transfer the same until the prospective transferee has
confirmed to the Company in writing its agreement to be bound by the conditions
contained in this Section 5.

 

PROVISIONS RELATING TO EMPLOYMENT

 

6.             Employment.         Employer agrees to employ
Executive and Executive accepts such employment for the period beginning as of
the date hereof and ending upon his separation pursuant to Section 6(c)
hereof (the “Employment Period”).

 

(a)           Position
and Duties.

 

(i)            During
the Employment Period, Executive shall serve as the Senior Vice President of
Employer and shall have the normal duties, responsibilities and authority
implied by such position, subject to the power of Employer’s Chief Executive
Officer and the Board to expand or limit such duties, responsibilities and
authority and to override actions of the Senior Vice President.

 

(ii)           Executive
shall report to Employer’s Chief Executive Officer, and Executive shall devote
his reasonable efforts and his full business time and attention to the business
and affairs of the Company, Employer and their Subsidiaries.

 

(b)           Salary,
Bonus and Benefits. During the Employment Period, Employer will pay
Executive a base salary of $200,000 per annum (the “Annual Base Salary”).
During the Employment Period, beginning with the fiscal year ending June 30,
2007 and for each fiscal year thereafter, Executive shall be eligible for an
annual bonus (“Annual Bonus”) in an amount up to 40% of the Annual Base
Salary based upon the achievement by the Company, Employer and their
Subsidiaries of financial and other objectives set by the Board. An Annual
Bonus, if any, will be paid to Executive by Employer 120 days after the end of
the fiscal year to which such Annual Bonus relates.

 

9

 

(c)           Separation.
The Employment Period will continue until (i) Executive’s resignation, Disability
or death, or (ii) Employer’s Chief Executive Officer or the Board decides
to terminate Executive’s employment with or without Cause. If Executive’s
employment is terminated by Employer without Cause or by Executive with Good
Reason, then during the six-month period commencing on the date of termination
subject to extension pursuant to the following sentence (the “Severance
Period”), Employer shall pay to Executive an aggregate amount equal to 50%
of his Annual Base Salary, payable in equal installments on the Employer’s
regular salary payment dates (the “Wage Severance”), and Executive shall
continue to participate in employee benefit programs for senior executive
employees (other than bonus and incentive compensation plans) to the extent
permitted under the terms of such programs and under applicable law
(collectively, the “Severance Payments”). In addition, Employer shall
have the option, by delivering written notice to the Executive within six
months after the Separation to extend the Severance Period for an additional
twelve-month period during which time the Company shall continue to make
Severance Payments to Executive at the same annual rate (pro rated as
applicable). Notwithstanding the foregoing, (A) Executive shall not be entitled
to receive any payments pursuant to this Section 6(c) unless Executive
has executed and delivered to Employer a general release in form and substance
satisfactory to Employer and (B) Executive shall be entitled to receive such
payments only so long as Executive has not breached the provisions of Sections
7 or 8 hereof.

 

7.             Confidential
Information.

 

(a)           Obligation
to Maintain Confidentiality. Executive acknowledges that the information,
observations and data (including trade secrets) of a confidential, proprietary
or secret nature obtained by him during the course of his performance under
this Agreement concerning the business or affairs of the Company, Employer and
their respective Subsidiaries and Affiliates (“Confidential Information”)
are the property of the Company, Employer or such Subsidiaries and Affiliates,
including information concerning acquisition opportunities in or reasonably
related to the Company’s and Employer’s business or industry of which Executive
becomes aware during the Employment Period. Therefore, Executive agrees that he
will not disclose to any unauthorized Person or use for his own account any
Confidential Information without the Board’s written consent, unless and to the
extent that the Confidential Information, (i) becomes generally known to and
available for use by the public other than as a result of Executive’s acts or
omissions to act, (ii) was known to Executive prior to Executive’s employment
with Employer, the Company or any of their Subsidiaries and Affiliates, or
(iii) is required to be disclosed pursuant to any applicable law or court order.
Executive shall deliver to the Company at a Separation, or at any other time
the Company may request, all memoranda, notes, plans, records, reports,
computer tapes, printouts and software and other documents and data (and copies
thereof) relating to the Confidential Information, Work Product (as defined
below) or the business of the Company, Employer and their respective
Subsidiaries and Affiliates (including, without limitation, all acquisition prospects,
lists and contact information) which he may then possess or have under his
control.

 

(b)           Ownership
of Property. Executive acknowledges that all discoveries, concepts, ideas,
inventions, innovations, improvements, developments, methods, processes, programs,
designs, analyses, drawings, reports, patent applications, copyrightable work
and mask work (whether or not including any confidential information) and all
registrations or applications 

 

10

 

related thereto, all other proprietary information and
all similar or related information (whether or not patentable) that relate to
the Company’s, Employer’s or any of their respective Subsidiaries’ or
Affiliates’ actual or anticipated business, research and development, or
existing or future products or services and that are conceived, developed,
contributed to, made, or reduced to practice by Executive (either solely or
jointly with others) while employed by the Company, Employer or any of their
respective Subsidiaries or Affiliates (including any of the foregoing that
constitutes any proprietary information or records) (“Work Product”)
belong to the Company, Employer or such Subsidiary or Affiliate and Executive
hereby assigns, and agrees to assign, all of the above Work Product to the
Company, Employer or to such Subsidiary or Affiliate. Any copyrightable work
prepared in whole or in part by Executive in the course of his work for any of
the foregoing entities shall be deemed a “work made for hire” under the copyright
laws, and the Company, Employer or such Subsidiary or Affiliate shall own all
rights therein. To the extent that any such copyrightable work is not a “work
made for hire,” Executive hereby assigns and agrees to assign to the Company,
Employer or such Subsidiary or Affiliate all right, title, and interest,
including without limitation, copyright in and to such copyrightable work. Executive
shall promptly disclose such Work Product and copyrightable work to the Board
and perform all actions reasonably requested by the Board (whether during or
after the Employment Period) to establish and confirm the Company’s, Employer’s
or such Subsidiary’s or Affiliate’s ownership (including, without limitation,
assignments, consents, powers of attorney, and other instruments). Executive
understands, however, that there is no obligation being imposed on him to
assign to the Company or any Subsidiary or Affiliate, any invention falling
within the definition of Work Product for which no equipment, supplies,
facility, or trade secret information of the Company or any of its Subsidiaries
or Affiliates was used and that was developed entirely on his own time,
unless:  (i) such Work Product relates
(A) to the Company’s, or its Subsidiaries’ or Affiliates’ businesses or (B) to
their actual or demonstrably anticipated research or development, or (ii) the
Work Product results from any work performed by him for them under this
Agreement. Executive has identified on the signature page to this Agreement all
Work Product that is or was owned by him or was written, discovered, made,
conceived or first reduced to practice by him alone or jointly with another
person prior to his employment under this Agreement. If no such Work Product is
listed, Executive represents to the Company that he does not now nor has he
ever owned, nor has he made, any such Work Product.

 

(c)           Third
Party Information. Executive understands that the Company, Employer and
their respective Subsidiaries and Affiliates will receive from third parties
confidential or proprietary information (“Third Party Information”)
subject to a duty on the Company’s, Employer’s and their respective
Subsidiaries and Affiliates’ part to maintain the confidentiality of such
information and to use it only for certain limited purposes. During the
Employment Period and thereafter, and without in any way limiting the
provisions of Section 7(a) above, Executive will hold Third Party
Information in the strictest confidence and will not disclose to anyone (other
than personnel and consultants of the Company, Employer or their respective
Subsidiaries and Affiliates who need to know such information in connection
with their work for the Company, Employer or their respective Subsidiaries and
Affiliates) or use, except in connection with his work for the Company,
Employer or their respective Subsidiaries and Affiliates, Third Party
Information unless expressly authorized by a member of the Board in writing.

 

(d)           Use
of Information of Prior Employers. During the Employment Period, Executive
will not improperly use or disclose any confidential information or trade
secrets, if 

 

11

 

any, of any former employers or any other Person to
whom Executive has an obligation of confidentiality, and will not bring onto
the premises of the Company, Employer or any of their respective Subsidiaries
or Affiliates any unpublished documents or any property belonging to any former
employer or any other Person to whom Executive has an obligation of
confidentiality unless consented to in writing by the former employer or Person.
Executive will use in the performance of his duties only information which is
(i) generally known and used by persons with training and experience comparable
to Executive’s and which is (x) common knowledge in the industry or (y) is
otherwise legally in the public domain, (ii) is otherwise provided or developed
by the Company, Employer or any of their respective Subsidiaries or Affiliates
or (iii) in the case of materials, property or information belonging to any
former employer or other Person to whom Executive has an obligation of
confidentiality, approved for such use in writing by such former employer or
Person.

 

8.             Restrictive
Covenants. Executive acknowledges that in the course of his employment with
Employer he will become familiar with the Company’s, Employer’s and their
respective Subsidiaries’ trade secrets and with other confidential information
concerning the Company, Employer and such Subsidiaries and that his services
will be of special, unique and extraordinary value to the Company, Employer and
such Subsidiaries. Therefore, Executive agrees that:

 

(a)           Nonsolicitation.
During the Employment Period and (x) during the Severance Period if the
Employment Period is terminated by the Company or Employer without Cause or by
Executive with Good Reason, or (y) for a period of two years thereafter if the
Employment Period is terminated by Executive, the Company or Employer for any
other reason, Executive shall not directly or indirectly through another entity
(i) induce or attempt to induce any employee of the Company, Employer or
their respective Subsidiaries to leave the employ of the Company, Employer or
such Subsidiary, or in any way interfere with the relationship between the
Company, Employer and any of their respective Subsidiaries and any employee
thereof (which restriction shall not preclude placing advertisements in trade
publications or similar general solicitations for employment, so long as such
advertisements or solicitations do not target any employee of the Company,
Employer or their respective Subsidiaries), (ii) hire any person who was
an employee of the Company, Employer or any of their respective Subsidiaries
within 180 days after such person ceased to be an employee of the Company, Employer
or any of their respective Subsidiaries, (iii) induce or attempt to induce
any customer, supplier, licensee or other business relation of the Company,
Employer or any of their respective Subsidiaries to cease doing business with
the Company, Employer or such Subsidiary or in any way interfere with the
relationship between any such customer, supplier, licensee or business relation
and the Company, Employer and any Subsidiary, in each case, if any such
inducement, attempted inducement or interference would involve, use or rely
upon any of the Company’s, Employer’s or any of their respective Subsidiaries’
trade secrets or other confidential information or (iv) directly or
indirectly acquire or attempt to acquire an interest in any business relating
to the business of the Company, Employer or any of their respective
Subsidiaries and with which the Company, Employer and any of their respective
Subsidiaries has engaged in discussions regarding the acquisition of an
interest in such business or has requested and received information relating to
the acquisition of such business by the Company, Employer or any of their
respective Subsidiaries in the two year period immediately preceding a
Separation.

 

12

 

(b)           Compliance
with Prior Agreement. During the Employment Period, Executive agrees that
he will comply with, and will take reasonable actions that are necessary or
desirable in order to comply with, his obligations under the Prior Agreement. Executive
acknowledges that the Company and Employer and GTCR have instructed Executive
to do the same.

 

(c)           Enforcement.
If, at the time of enforcement of Section 7 or this Section 8,
a court holds that the restrictions stated herein are unreasonable under
circumstances then existing, the parties hereto agree that the maximum
duration, scope or geographical area reasonable under such circumstances shall
be substituted for the stated period, scope or area and that the court shall be
allowed to revise the restrictions contained herein to cover the maximum
duration, scope and area permitted by law. Because Executive’s services are
unique and because Executive has access to confidential information, the
parties hereto agree that money damages would be an inadequate remedy for any
breach of this Agreement. Therefore, in the event a breach or threatened breach
of this Agreement, the Company, Employer, their respective Subsidiaries or
their successors or assigns may, in addition to other rights and remedies
existing in their favor, apply to any court of competent jurisdiction for
specific performance and/or injunctive or other relief in order to enforce, or
prevent any violations of, the provisions hereof (without posting a bond or
other security).

 

(d)           Additional
Acknowledgments. Executive acknowledges that the provisions of this Section
8 are in consideration of: 
(i) employment with the Employer, (ii) the issuance of the
Executive Securities by the Company and (iii) additional good and valuable
consideration as set forth in this Agreement. In addition, Executive agrees and
acknowledges that the restrictions contained in Section 7 and this Section 8
do not preclude Executive from earning a livelihood, nor do they unreasonably
impose limitations on Executive’s ability to earn a living. In addition,
Executive acknowledges (i) that the business of the Company, Employer and their
respective Subsidiaries will be conducted throughout the United States and
other jurisdictions where the Company, Employer or their respective
Subsidiaries conduct business during the Employment Period, (ii)
notwithstanding the state of organization or principal office of the Company,
Employer or any of their respective Subsidiaries, or any of their respective
executives or employees (including the Executive), it is expected that the
Company and Employer will have business activities and have valuable business
relationships within its industry throughout the United States and other
jurisdictions where the Company, Employer or their respective Subsidiaries
conduct business during the Employment Period, and (iii) as part of his
responsibilities, Executive will be traveling throughout the United States and
other jurisdictions where the Company, Employer or their respective
Subsidiaries conduct business during the Employment Period in furtherance of
Employer’s business and its relationships. Executive agrees and acknowledges
that the potential harm to the Company and Employer of the non-enforcement of Section 7
and this Section 8 outweighs any potential harm to Executive of its
enforcement by injunction or otherwise. Executive acknowledges that he has
carefully read this Agreement and has given careful consideration to the
restraints imposed upon Executive by this Agreement, and is in full accord as
to their necessity for the reasonable and proper protection of confidential and
proprietary information of the Company and Employer now existing or to be
developed in the future. Executive expressly acknowledges and agrees that each
and every restraint imposed by this Agreement is reasonable with respect to
subject matter, time period and geographical area.

 

13

 

GENERAL PROVISIONS

 

9.             Definitions.

 

“Affiliate” means, (i) with respect to any
Person, any Person that controls, is controlled by or is under common control
with such Person or an Affiliate of such Person, and (ii) with respect to any
Investor, any general or limited partner of such Investor, any employee or
owner of any such partner, or any other Person controlling, controlled by or
under common control with such Investor; it being understood and agreed that
GTCR I and its Affiliates shall for all purposes hereunder shall be Affiliates
of GTCR II.

 

“Board” means the Company’s board of managers.

 

“Cause” means (i) the commission of a
felony or a crime involving moral turpitude or the commission of any other act
or omission involving dishonesty or fraud with respect to the Company, Employer
or any of their respective Subsidiaries or any of their customers or suppliers,
(ii) substantial and repeated failure to perform duties of the office held by
Executive as reasonably directed by the Board, (iii) gross negligence or
willful misconduct with respect to the Company, Employer or any of their
respective Subsidiaries, (iv) conduct tending to bring the Company, Employer or
any of their respective Subsidiaries into substantial public disgrace or
disrepute, and (v) any breach by Executive of Sections 6(a)(ii),
7 or 8 of this Agreement.

 

“Class A Common Units” means the Class A Common
Units of the Company having the rights and obligations set forth in the LLC
Agreement.

 

“Class B Preferred Units” means the Class B
Preferred Units of the Company having the rights and obligations set forth in
the LLC Agreement.

 

“Disability” means
the disability of Executive caused by any physical or mental injury, illness or
incapacity as a result of which Executive is or will be unable to effectively
perform the essential functions of Executive’s duties for a continuous period
of more than 60 days or for 90 days (whether or not continuous) within a 180
day period, as determined by the Board in good faith.

 

“Executive Securities” will continue to be
Executive Securities in the hands of any holder other than Executive (except
for the Company and the Investors and except for transferees in a Public Sale),
and except as otherwise provided herein, each such other holder of Executive
Securities will succeed to all rights and obligations attributable to Executive
as a holder of Executive Securities hereunder. Executive Securities will also
include equity of the Company (or a corporate successor to the Company or a
Subsidiary of the Company) issued with respect to Executive Securities (i) by
way of a unit split, unit dividend, conversion, or other recapitalization, (ii)
by way of reorganization or recapitalization of the Company in connection with
the incorporation of a corporate successor prior to a Public Offering or (iii)
by way of a distribution of securities of a Subsidiary of the Company to the
members of the Company following or with respect to a Subsidiary Public
Offering. Notwithstanding the foregoing, all Unvested Carried Common Units
shall remain Unvested Carried Common Units after any Transfer thereof.

 

14

 

“Fair Market Value” of each unit of Executive
Securities means the average of the closing prices of the sales of such
Executive Securities on all securities exchanges on which such Executive
Securities may at the time be listed, or, if there have been no sales on any
such exchange on any day, the average of the highest bid and lowest asked
prices on all such exchanges at the end of such day, or, if on any day such
Executive Securities are not so listed, the average of the representative bid
and asked prices quoted in the NASDAQ System as of 4:00 P.M., New York
time, or, if on any day such Executive Securities are not quoted in the NASDAQ
System, the average of the highest bid and lowest asked prices on such day in
the domestic over-the-counter market as reported by the National Quotation
Bureau Incorporated, or any similar successor organization, in each such case
averaged over a period of 21 days consisting of the day as of which the Fair
Market Value is being determined and the 20 consecutive business days prior to
such day. If at any time such Executive Securities are not listed on any
securities exchange or quoted in the NASDAQ System or the over-the-counter
market, the Fair Market Value will be the fair value of such Executive
Securities as determined in good faith by the Board. If Executive reasonably
disagrees with such determination, Executive shall deliver to the Board a
written notice of objection within ten days after delivery of the Repurchase
Notice (or if no Repurchase Notice is delivered, then within ten days after
delivery of the Supplemental Repurchase Notice). Upon receipt of Executive’s
written notice of objection, the Board and Executive will negotiate in good
faith to agree on such Fair Market Value. If such agreement is not reached
within 30 days after the delivery of the Repurchase Notice (or if no Repurchase
Notice is delivered, then within 30 days after the delivery of the Supplemental
Repurchase Notice), Fair Market Value shall be determined by an appraiser
jointly selected by the Board and Executive, which appraiser shall submit to
the Board and Executive a report within 30 days of its engagement setting forth
such determination. If the parties are unable to agree on an appraiser within
45 days after delivery of the Repurchase Notice or the Supplemental Repurchase
Notice, within seven days, each party shall submit the names of four nationally
recognized firms that are engaged in the business of valuing non-public
securities, and each party shall be entitled to strike two names from the other
party’s list of firms, and the appraiser shall be selected by lot from the
remaining four appraisal firms. The expenses of such appraiser shall be borne
by Executive unless the appraiser’s valuation is more than 10% greater than the
amount determined by the Board, in which case the expenses of the appraiser
shall be borne by the Company. In making such appraisal, the appraiser shall
determine the fair value of the Company as a whole without discount for either
lack of control or contractual restrictions on transfer applicable to the
Executive Securities. The determination of such appraiser as to Fair Market
Value shall be final and binding upon all parties.

 

“Family Group” means a Person’s spouse and
descendants (whether natural or adopted), and any trust, family limited
partnership, limited liability company or other entity wholly owned, directly
or indirectly, by such Person or such Person’s spouse and/or descendants that
is and remains solely for the benefit of such Person and/or such Person’s
spouse and/or descendants and any retirement plan for such Person.

 

“Good Reason” means (i) a significant reduction
in Executive’s Annual Base Salary, (ii) a material diminution in Executive’s
duties or responsibilities inconsistent with his title, or (iii) a change
in Executive’s principal office to a location more than 25 miles from 12230 El
Camino Real, Suite 200, San Diego, California, in each case without the prior
written consent of Executive; provided that written notice of Executive’s
resignation must be delivered to the 

 

15

 

Company within 30 days of
his actual knowledge of any such event in order for such resignation to be with
Good Reason for any purpose hereunder.

 

“GTCR I” means GTCR Golder Rauner, L.L.C., a
Delaware limited liability company.

 

“GTCR II” means GTCR Golder Rauner II, L.L.C.,
a Delaware limited liability company.

 

“Letter Agreement” means that certain letter
agreement, dated as of February 7, 2006, among the Company and each of the
individuals party to a Senior Management Agreement (as defined in the LLC
Agreement).

 

“LLC Agreement” means the Limited Liability
Company Agreement of the Company, as amended from time to time pursuant to its
terms.

 

“Original Cost” means, with respect to each
Common Unit purchased under the Prior Senior Management Agreement or hereunder,
$0.10 (as proportionately adjusted for all subsequent unit splits, unit
dividends and other recapitalizations).

 

“Person” means an individual, a partnership, a
limited liability company, a corporation, an association, a joint stock
company, a trust, a joint venture, an unincorporated organization, investment
fund, any other business entity and a governmental entity or any department,
agency or political subdivision thereof.

 

“Public Offering” means the sale in an
underwritten public offering registered under the Securities Act of equity
securities of the Company or a corporate successor to the Company.

 

“Public Sale” means (i) any sale pursuant
to a registered public offering under the Securities Act or (ii) any sale
to the public pursuant to Rule 144 promulgated under the Securities Act
effected through a broker, dealer or market maker (other than pursuant to Rule
144(k) prior to a Public Offering).

 

“Registration Agreement” means the Registration
Rights Agreement, dated as of April 1, 2005, among the Company and certain of
its securityholders, as amended from time to time pursuant to its terms.

 

“Sale of the Company” means any transaction or
series of related transactions pursuant to which any Person or group of related
Persons other than, except for purposes of Section 2(d), the Investors
or their Affiliates in the aggregate acquire(s) (i) equity securities of
the Company possessing the voting power (other than voting rights accruing only
in the event of a default, breach or event of noncompliance) to elect a
majority of the Board (whether by merger, consolidation, reorganization,
combination, sale or transfer of the Company’s equity, securityholder or voting
agreement, proxy, power of attorney or otherwise) or (ii) all or
substantially all of the Company’s assets determined on a consolidated basis; provided
that a Public Offering shall not constitute a Sale of the Company.

 

16

 

“Securities Act” means the Securities Act of
1933, as amended from time to time.

 

“Securityholders Agreement” means the
Securityholders Agreement, dated as of April 1, 2005, among the Company and
certain of its securityholders, as amended from time to time pursuant to its
terms.

 

“Separation” means Executive ceasing to be
employed by the Company, Employer or any of their respective Subsidiaries for
any reason.

 

“Subsidiary” means, with respect to any Person,
any corporation, limited liability company, partnership, association, or
business entity of which (i) if a corporation, a majority of the total
voting power of shares of stock entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers, or trustees
thereof is at the time owned or controlled, directly or indirectly, by that
Person or one or more of the other Subsidiaries of that Person or a combination
thereof, or (ii) if a limited liability company, partnership, association,
or other business entity (other than a corporation), a majority of partnership
or other similar ownership interest thereof is at the time owned or controlled,
directly or indirectly, by that Person or one or more Subsidiaries of that
Person or a combination thereof. For purposes hereof, a Person or Persons shall
be deemed to have a majority ownership interest in a limited liability company,
partnership, association, or other business entity (other than a corporation)
if such Person or Persons shall be allocated a majority of limited liability
company, partnership, association, or other business entity gains or losses or
shall be or control any managing director or general partner of such limited
liability company, partnership, association, or other business entity. For
purposes hereof, references to a “Subsidiary” of any Person shall be
given effect only at such times that such Person has one or more Subsidiaries,
and, unless otherwise indicated, the term “Subsidiary” refers to a
Subsidiary of the Company.

 

“Subsidiary Public Offering” means the sale in
an underwritten public offering registered under the Securities Act of equity
securities of Employer or another Subsidiary of the Company.

 

“Transfer” means to sell, transfer, assign,
pledge or otherwise dispose of (whether with or without consideration and
whether voluntarily or involuntarily or by operation of law).

 

10.           Notices. All
notices, demands or other communications to be given or delivered under or by
reason of the provisions of this Agreement shall be in writing and shall be
deemed to have been given when (i) delivered personally to the recipient, (ii)
sent to the recipient by reputable express courier service (charges prepaid),
(iii) mailed to the recipient by certified or registered mail, return receipt
requested and postage prepaid, or (iv) telecopied to the recipient (with hard
copy sent to the recipient by reputable overnight courier service (charges
prepaid) that same day) if telecopied before 5:00 p.m. Chicago, Illinois time
on a business day, and otherwise on the next business day. Such notices,
demands and other communications shall be sent to the parties at the addresses
indicated below:

 

17

 

If to Employer:

 

Solera, Inc.

12230 El Camino Real,
Suite 200

San
Diego, CA 92130

Attention:  Chief
Executive Officer

Facsimile:  (858) 812-3011

 

with copies to:

 

GTCR Fund VIII, L.P.,
GTCR Fund VIII/B, L.P., and

GTCR Co-Invest II, L.P.

c/o GTCR Golder Rauner
II, L.L.C.

6100 Sears Tower

Chicago, Illinois 60606-6402

Attention:  Philip
A. Canfield

Craig A. Bondy

Facsimile: (312)
382-2201

 

Kirkland & Ellis
LLP

200 East Randolph Drive

Chicago, Illinois 60601

Attention:  Stephen
L. Ritchie, P.C.

Facsimile: (312) 861-2200

 

If to the Company:

 

Solera Holdings, LLC

12230 El Camino Real,
Suite 200

San
Diego, CA 92130

Attention:  Chief
Executive Officer

Facsimile:  (858) 812-3011

 

with copies to:

 

GTCR Golder Rauner II,
L.L.C.

6100 Sears Tower

Chicago, Illinois 60606-6402

Attention:  Philip
A. Canfield

Craig A. Bondy

Facsimile: (312)
382-2201

 

and

 

18

 

Kirkland & Ellis
LLP

200 East Randolph Drive

Chicago, Illinois 60601

Attention:  Stephen
L. Ritchie, P.C.

Facsimile: (312)
861-2200

 

If to Executive:

 

John Schwinn

8407 Watson Ranch Road

San Diego, CA 92129

Facsimile:  (413) 502-8174

 

If to the Investors:

 

GTCR Golder Rauner II,
L.L.C.

6100 Sears Tower

Chicago, Illinois 60606-6402

Attention:  Philip
A. Canfield

Craig A. Bondy

Facsimile: (312)
382-2201

 

with a copy to:

 

Kirkland & Ellis
LLP

200 East Randolph Drive

Chicago, Illinois 60601

Attention:  Stephen
L. Ritchie, P.C.

Facsimile: (312)
861-2200

 

or such other address or
to the attention of such other Person as the recipient party shall have
specified by prior written notice to the sending party.

 

11.           General Provisions.

 

(a)           Transfers
in Violation of Agreement. Any Transfer or attempted Transfer of any
Executive Securities in violation of any provision of this Agreement shall be
void, and the Company shall not record such Transfer on its books or treat any
purported transferee of such Executive Securities as the owner of such equity
for any purpose.

 

(b)           Severability.
Whenever possible, each provision of this Agreement will be interpreted in such
manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be invalid, illegal or unenforceable in any
respect under any applicable law or rule in any jurisdiction, such invalidity,
illegality or unenforceability will not affect any other provision or any other
jurisdiction, but this Agreement will be reformed, construed and enforced in
such jurisdiction as if such invalid, illegal or unenforceable provision had
never been contained herein.

 

19

 

(c)           Complete
Agreement. The Prior Senior Management Agreement is amended, restated and
superseded by this Agreement in its entirety; provided that, notwithstanding
the foregoing or anything else to the contrary in this Agreement, nothing
herein shall relieve any party from any liability for any breach prior to the
date hereof of the Prior Senior Management Agreement and any provision so
breached shall not be superseded by this Agreement for purposes of actions
taken in connection with such breach and liabilities related thereto and the
rights of the parties hereto under Section 1(e) of the Prior Senior
Management Agreement shall survive this amendment and restatement. This
Agreement, those documents expressly referred to herein and other documents of
even date herewith embody the complete agreement and understanding among the
parties and supersede and preempt any prior understandings, agreements or
representations by or among the parties, written or oral, which may have
related to the subject matter hereof in any way, including, but not limited to,
the Letter Agreement.

 

(d)           No
Strict Construction. The language used in this Agreement shall be deemed to
be the language chosen by the parties hereto to express their mutual intent,
and no rule of strict construction shall be applied against any party.

 

(e)           Counterparts.
This Agreement may be executed in separate counterparts (including by means of
facsimile), each of which is deemed to be an original and all of which taken
together constitute one and the same agreement.

 

(f)            Successors
and Assigns. Except as otherwise provided herein, this Agreement shall bind
and inure to the benefit of and be enforceable by Executive, the Company,
Employer, the Investors and their respective successors and assigns (including
subsequent holders of Executive Securities); provided that the rights
and obligations of Executive under this Agreement shall not be assignable
except in connection with a permitted transfer of Executive Securities
hereunder.

 

(g)           Choice
of Law. The law of the State of Delaware will govern all questions
concerning the relative rights of the Company, Employer and its securityholders.
All other questions concerning the construction, validity and interpretation of
this Agreement and the exhibits hereto will be governed by and construed in
accordance with the internal laws of the State of Delaware, without giving
effect to any choice of law or conflict of law provision or rule (whether of
the State of Delaware or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of Delaware.

 

(h)           MUTUAL
WAIVER OF JURY TRIAL. BECAUSE
DISPUTES ARISING IN CONNECTION WITH COMPLEX TRANSACTIONS ARE MOST QUICKLY AND
ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH
APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE
PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH
APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF
THE JUDICIAL SYSTEM AND OF ARBITRATION, EACH PARTY TO THIS AGREEMENT HEREBY
WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT
TO RESOLVE ANY DISPUTE BETWEEN OR AMONG ANY OF THE PARTIES HERETO, WHETHER
ARISING IN CONTRACT, TORT, OR OTHERWISE, ARISING OUT OF, 

 

20

 

CONNECTED WITH, RELATED OR INCIDENTAL TO THIS
AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREBY AND/OR THE RELATIONSHIP
ESTABLISHED AMONG THE PARTIES HEREUNDER.

 

(i)            Executive’s
Cooperation. During the Employment Period and thereafter, Executive shall
cooperate with the Company, Employer and their respective Subsidiaries and
Affiliates in any disputeswith
third parties, internal investigation or administrative, regulatory or judicial
proceeding as reasonably requested by the Company (including, without
limitation, Executive being available to the Company upon reasonable notice for
interviews and factual investigations, appearing at the Company’s request to
give testimony without requiring service of a subpoena or other legal process,
volunteering to the Company all pertinent information and turning over to the
Company all relevant documents which are or may come into Executive’s
possession, all at times and on schedules that are reasonably consistent with
Executive’s other permitted activities and commitments). In the event the
Company requires Executive’s cooperation in accordance with this paragraph
during the Employment Period or the Severance Period, the Company shall
reimburse Executive solely for reasonable travel expenses (including lodging
and meals, upon submission of receipts). In the event the Company requires
Executive’s cooperation in accordance with this paragraph after the Severance
Period, the Company shall reimburse Executive for reasonable travel expenses
(including lodging and meals, upon submission of receipts) and compensate
Executive at a reasonable rate for such cooperation, as determined by mutual
agreement of the Company and Executive.

 

(j)            Remedies.
Each of the parties to this Agreement (and the Investors as third-party
beneficiaries) will be entitled to enforce its rights under this Agreement
specifically, to recover damages and costs (including attorney’s fees) caused
by any breach of any provision of this Agreement and to exercise all other
rights existing in its favor. The parties hereto agree and acknowledge that
money damages may not be an adequate remedy for any breach of the provisions of
this Agreement and that any party may in its sole discretion apply to any court
of law or equity of competent jurisdiction (without posting any bond or
deposit) for specific performance and/or other injunctive relief in order to
enforce or prevent any violations of the provisions of this Agreement.

 

(k)           Amendment
and Waiver. The provisions of this Agreement may be amended and waived only
with the prior written consent of the Company, Employer, Executive and the
Majority Holders (as defined in the Purchase Agreement).

 

(l)            Insurance.
The Company, at its discretion, may apply for and procure in its own name and
for its own benefit life and/or disability insurance on Executive in any amount
or amounts considered available. Executive agrees to cooperate in any
reasonable medical or other examination, supply any information, and to execute
and deliver any applications or other instruments in writing as may be
reasonably necessary to obtain and constitute such insurance. Executive hereby
represents that he has no reason to believe that his life is not insurable at
rates now prevailing for healthy men of his age.

 

(m)          Business
Days. If any time period for giving notice or taking action hereunder
expires on a day which is a Saturday, Sunday or holiday in the state in which
the Company’s 

 

21

 

chief executive office is located, the time period
shall be automatically extended to the business day immediately following such
Saturday, Sunday or holiday.

 

(n)           Indemnification
and Reimbursement of Payments on Behalf of Executive. The Company and its
Subsidiaries shall be entitled to deduct or withhold from any amounts owing
from the Company or any of its Subsidiaries to Executive any federal, state,
local or foreign withholding taxes, excise taxes, or employment taxes (“Taxes”)
imposed with respect to Executive’s compensation or other payments from the
Company or its Subsidiaries or Executive’s ownership interest in the Company,
including, without limitation, wages, bonuses, dividends, the receipt or
exercise of equity options and/or the receipt or vesting of restricted equity. In
the event the Company or its Subsidiaries does not make such deductions or
withholdings, Executive shall indemnify the Company and its Subsidiaries for
any amounts paid with respect to any such Taxes, together with any interest,
penalties and related expenses thereto.

 

(o)           Reasonable
Expenses. Employer agrees to pay the reasonable fees and expenses of
Executive’s counsel arising in connection with the negotiation and execution of
this Agreement and the consummation of the transactions contemplated by this
Agreement.

 

(p)           Termination.
This Agreement (except for the provisions of Sections 6(a) and (b))
shall survive a Separation and shall remain in full force and effect after such
Separation.

 

(q)           Adjustments
of Numbers. All numbers set forth herein that refer to unit prices or
amounts will be appropriately adjusted to reflect unit splits, unit dividends,
combinations of units and other recapitalizations affecting the subject class
of equity.

 

(r)            Deemed
Transfer of Executive Securities. If the Company (and/or the Investors and/or
any other Person acquiring securities) shall make available, at the time and
place and in the amount and form provided in this Agreement, the consideration
for the Executive Securities to be repurchased in accordance with the
provisions of this Agreement, then from and after such time, the Person from
whom such units are to be repurchased shall no longer have any rights as a
holder of such units (other than the right to receive payment of such
consideration in accordance with this Agreement), and such units shall be
deemed purchased in accordance with the applicable provisions hereof and the
Company (and/or the Investors and/or any other Person acquiring securities)
shall be deemed the owner and holder of such units, whether or not the
certificates therefor have been delivered as required by this Agreement.

 

(s)           No
Pledge or Security Interest. The purpose of the Company’s retention of
Executive’s certificates and executed security powers is solely to facilitate
the provisions set forth in Section 3 herein and Section 4 of the
Securityholders Agreement and does not by itself constitute a pledge by
Executive of, or the granting of a security interest in, the underlying equity.

 

(t)            Rights
Granted to GTCR and its Affiliates. Any rights granted to GTCR and its
Affiliates hereunder may also be exercised (in whole or in part) by their
designees.

 

(u)           Subsidiary
Public Offering. If, after consummation of a Subsidiary Public Offering,
the Company distributes securities of such Subsidiary to members of the Company,
then such securities will be treated in the same manner as (but excluding any “preferred”
features 

 

22

 

of the units with respect to which they were
distributed) the units with respect to which they were distributed for purposes
of Sections 1, 2, 3, 4 and 5 hereof.

 

(v)           Delivery
by Facsimile. This Agreement, the agreements referred to herein, and each
other agreement or instrument entered into in connection herewith or therewith
or contemplated hereby or thereby, and any amendments hereto or thereto, to the
extent signed and delivered by means of a facsimile machine, shall be treated
in all manner and respects as an original agreement or instrument and shall be
considered to have the same binding legal effect as if it were the original
signed version thereof delivered in person. At the request of any party hereto
or to any such agreement or instrument, each other party hereto or thereto
shall reexecute original forms thereof and deliver them to all other parties. No
party hereto or to any such agreement or instrument shall raise the use of a
facsimile machine to deliver a signature or the fact that any signature or
agreement or instrument was transmitted or communicated through the use of a
facsimile machine as a defense to the formation or enforceability of a contract
and each such party forever waives any such defense.

 

*     *    
*     *     *

 

23

 

IN WITNESS WHEREOF, the parties hereto have executed
this Amended and Restated Senior Management Agreement on the date first above
written.

 

	
   

  	
  SOLERA
  HOLDINGS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tony Aquila

  
	
   

  	
  Name:

  	
  Tony Aquila

  
	
   

  	
  Its:

  	
  Chief Executive
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SOLERA,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tony Aquila

  
	
   

  	
  Name:

  	
  Tony Aquila

  
	
   

  	
  Its: 

  	
  Chief Executive
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ John Schwinn

  
	
   

  	
  JOHN
  SCHWINN

  

 

 

Signature Page to Amended
and Restated Senior Management Agreement of John Schwinn

 

24

 

	
  Agreed and Accepted:

  
	
  THE INVESTORS:

  
	
   

  	
   

  
	
  GTCR FUND VIII, L.P.

  
	
   

  
	
  By:

  	
  GTCR Partners VIII,
  L.P.

  
	
  Its:

  	
  General Partner

  
	
   

  	
   

  
	
  By:

  	
  GTCR Golder Rauner II,
  L.L.C.

  
	
  Its:

  	
  General Partner

  
	
   

  	
   

  
	
  By:

  	
  /s/ Philip A. Canfield

  	
   

  
	
  Name:

  	
  Philip A. Canfield

  
	
  Its:

  	
  Principal

  
	
   

  	
   

  
	
   

  	
   

  
	
  GTCR FUND VIII/B, L.P.

  
	
   

  	
   

  
	
  By:

  	
  GTCR Partners VIII, L.P.

  
	
  Its:

  	
  General Partner

  
	
   

  	
   

  
	
  By:

  	
  GTCR Golder Rauner II,
  L.L.C.

  
	
  Its:

  	
  General Partner

  
	
   

  	
   

  
	
  By:

  	
  /s/ Philip A. Canfield

  	
   

  
	
  Name:

  	
  Philip A. Canfield

  
	
  Its:

  	
  Principal

  
	
   

  	
   

  
	
   

  	
   

  
	
  GTCR CO-INVEST II, L.P.

  
	
   

  	
   

  
	
  By:

  	
  GTCR Golder Rauner II,
  L.L.C.

  
	
  Its:

  	
  General Partner

  
	
   

  	
   

  
	
  By:

  	
  /s/ Philip A. Canfield

  	
   

  
	
  Name:

  	
  Philip A. Canfield

  
	
  Its:

  	
  Principal

  
				

 

 

Signature Page to Amended
and Restated Senior Management Agreement of John Schwinn

 

25Exhibit 10.16

 

AMENDED
AND RESTATED

SENIOR MANAGEMENT AGREEMENT

 

THIS AMENDED AND RESTATED SENIOR
MANAGEMENT AGREEMENT (this “Agreement”) is made as of
April 13, 2006, by and among Solera Holdings, LLC, a Delaware limited liability
company (the “Company”), Solera, Inc., a Delaware corporation (“Employer”),
and Michael Conway (“Executive”).

 

On April 11, 2005, pursuant to the Senior Management
Agreement, dated as of April 11, 2005, by and among the Company, Employer and
Executive (the “Prior Senior Management Agreement”), Executive purchased
from the Company (i) 566,357 of the Company’s Class A Common Units (as defined
below) and (ii) 2.041 of the Company’s Class B Preferred Units (as defined
below). On the date hereof, pursuant to the terms and conditions of this
Agreement, (i) the Company will purchase from Executive 112,576 Class A Common
Units and (ii) Executive will purchase from the Company 202.608 Class B Preferred
Units. All Class B Preferred Units and Class A Common Units owned by Executive
or acquired by Executive pursuant to this Agreement or the Prior Senior
Management Agreement are referred to herein as “Executive Securities”. Certain
definitions are set forth in Section 9 of this Agreement.

 

On the date hereof, the Company and GTCR Fund VIII,
L.P., a Delaware limited partnership, GTCR Fund VIII/B, L.P., a Delaware
limited partnership, and GTCR Co-Invest II, L.P., a Delaware limited
partnership (together with any other investment fund managed by GTCR I (as
defined below) or GTCR II (as defined below) that at any time executes a
counterpart to the Purchase Agreement or otherwise agrees to be bound thereby,
collectively, the “Investors”, and each, an “Investor”), are
entering into an Amended and Restated Unit Purchase Agreement (the “Purchase
Agreement”).

 

In connection with the execution of the Purchase
Agreement, the Company, Employer and Executive desire to amend and restate the
Prior Senior Management Agreement in its entirety. Certain provisions of this
Agreement are intended for the benefit of, and will be enforceable by, the
Investors.

 

NOW, THEREFORE, in consideration of the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties to the
Prior Senior Management Agreement hereby agree to amend and restate the Prior
Senior Management Agreement in its entirety as follows and all parties hereto
hereby agree as follows:

 

PROVISIONS RELATING TO EXECUTIVE
SECURITIES

 

1.             Purchase and Sale
of Executive Securities.

 

(a)           Pursuant
to the Prior Senior Management Agreement, on April 11, 2005, Executive
purchased, and the Company sold, (i) 566,357 Class A Common Units and (ii)
2.041 Class B Preferred Units. On such date, the Company delivered to Executive
a copy of the certificates evidencing such Executive Securities, and Executive
delivered to Employer, for the benefit of the Company, a cashier’s or certified
check or wire transfer of immediately available funds in an aggregate amount
equal to $58,650.00 as payment for such Executive Securities.

 

 

(b)           Upon
the execution of this Agreement, (i) the Company will purchase, and the
Executive will sell, 112,576 Class A Common Units at a price of $0.10 per unit
and (ii) Executive will purchase, and the Company will sell, 202.608 Class B
Preferred Units at a price of $1,000.00 per unit. On the date hereof, Executive
will deliver to the Company a cashier’s or certified check or wire transfer of
immediately available funds in an aggregate amount equal to $191,350.00 as net
payment for such purchases and sales. Following such sale of Class A Common
Units and such purchase of Class B Preferred Units, Executive will own the
following Executive Securities: (i) 368,523 Class A Common Units, which units
shall be referred to herein as the “Carried Common Units”; (ii) 85,259
Class A Common Units, which units shall be referred to herein as the “Co-Invest
Common Units”; and (iii) 204.622 Class B Preferred Units. The Company will
deliver to Executive copies of the certificates representing such Executive
Securities. The Co-Invest Common Units, together with the Class B Preferred
Units acquired by Executive pursuant to the Prior Senior Management Agreement
and/or hereunder, shall be referred to herein as the “Co-Invest Units”.

 

(c)           On
April 22, 2005, Executive made an effective election with the Internal Revenue
Service under Section 83(b) of the Internal Revenue Code and the
regulations promulgated thereunder in the form of Exhibit A
attached to the Prior Senior Management Agreement.

 

(d)           Until
released upon the occurrence of a Sale of the Company or a Public Offering as
provided below, all certificates evidencing Executive Securities shall be held
by the Company for the benefit of Executive and the other holder(s) of
Executive Securities. Upon the occurrence of a Sale of the Company, the Company
will return all certificates in its possession evidencing Executive Securities
to the record holders thereof. Upon the consummation of a Public Offering, the
Company will return to the record holders thereof certificates in its
possession evidencing the Co-Invest Units and the Vested Carried Common Units
(as defined below).

 

(e)           In
connection with the purchase and sale of the Executive Securities, Executive
represents and warrants to the Company that:

 

(i)            The
Executive Securities to be acquired by Executive pursuant to this Agreement
will be acquired for Executive’s own account and not with a view to, or
intention of, distribution thereof in violation of the Securities Act, or any
applicable state securities laws, and the Executive Securities will not be
disposed of in contravention of the Securities Act or any applicable state
securities laws.

 

(ii)           Executive
is an executive officer of the Company and/or Employer, is sophisticated in
financial matters and is able to evaluate the risks and benefits of the
investment in the Executive Securities.

 

(iii)          Executive is an “accredited investor” within
the meaning of Rule 501 of Regulation D of the Securities and Exchange
Commission.

 

(iv)          Executive
is able to bear the economic risk of his investment in the Executive Securities
for an indefinite period of time because the Executive Securities 

 

2

 

have not been
registered under the Securities Act and, therefore, cannot be sold unless
subsequently registered under the Securities Act or an exemption from such
registration is available.

 

(v)           Executive
has had an opportunity to ask questions and receive answers concerning the
terms and conditions of the offering of Executive Securities and has had full
access to such other information concerning the Company as he has requested.

 

(vi)          This
Agreement constitutes the legal, valid and binding obligation of Executive,
enforceable in accordance with its terms, and the execution, delivery and
performance of this Agreement by Executive does not and will not conflict with,
violate or cause a breach of any agreement, contract or instrument to which
Executive is a party or any judgment, order or decree to which Executive is
subject.

 

(vii)         Except for this Agreement, Executive is
neither party to, nor bound by, any other employment agreement, consulting
agreement, noncompete agreement, non-solicitation agreement or confidentiality
agreement.

 

(viii)        Executive is a resident of the State of
California.

 

(f)            As
an inducement to the Company to issue the Executive Securities to Executive,
and as a condition thereto, Executive acknowledges and agrees that neither the
issuance of the Executive Securities to Executive nor any provision contained
in this Section 1 shall entitle Executive to remain in the employment of
the Company, Employer or their respective Subsidiaries or affect the right of
the Company, Employer or their respective Subsidiaries to terminate Executive’s
employment at any time for any reason.

 

(g)           In
accordance with the terms of the Prior Senior Management Agreement, Executive
has executed in blank ten security transfer powers (the “Security Powers”)
with respect to the Executive Securities acquired pursuant to the Prior Senior
Management Agreement and has delivered such Security Powers to the Company. Concurrently
with the execution of this Agreement, Executive shall execute in blank ten
Security Powers in the form of Exhibit A attached hereto with
respect to the Executive Securities acquired hereunder and shall deliver such
Security Powers to the Company. The Security Powers shall authorize the Company
to assign, transfer and deliver the Executive Securities acquired hereunder to
the appropriate acquiror thereof pursuant to Section 3 below or Section
4 of the Securityholders Agreement and under no other circumstances.

 

(h)           In
accordance with the terms of the Prior Senior Management Agreement, Executive’s
spouse executed a Spousal Consent with respect to the Executive Securities acquired
pursuant to the Prior Senior Management Agreement. Concurrently with the
execution of this Agreement, if Executive is lawfully married, Executive’s
spouse shall execute the Consent in the form of Exhibit B attached
hereto.

 

(i)            On
April 11, 2005, Executive became a party to the LLC Agreement and a party to
the Securityholders Agreement and the Registration Agreement, in each case, in
the capacity of an Executive and Securityholder.

 

3

 

2.             Vesting of Carried
Common Units.

 

(a)           The
Co-Invest Units shall be fully vested upon the execution of this Agreement. The
Carried Common Units shall be subject to vesting in the manner specified in
this Section 2.

 

(b)           Except
as otherwise provided in this Section 2, the Carried Common Units shall
become vested, in accordance with the following schedule, if as of each such
date Executive is employed by the Company or any of its Subsidiaries:

 

	
  Date

  	
   

  	
  Cumulative 

  Percentage of Carried Common

  Units Vested

  	
   

  
	
  April 11, 2006

  	
   

  	
  20.00

  	
  %

  
	
  June 30, 2006

  	
   

  	
  25.00

  	
  %

  
	
  September 30, 2006

  	
   

  	
  30.00

  	
  %

  
	
  December 31, 2006

  	
   

  	
  35.00

  	
  %

  
	
  March 31, 2007

  	
   

  	
  40.00

  	
  %

  
	
  June 30, 2007

  	
   

  	
  45.00

  	
  %

  
	
  September 30, 2007

  	
   

  	
  50.00

  	
  %

  
	
  December 31, 2007

  	
   

  	
  55.00

  	
  %

  
	
  March 31, 2008

  	
   

  	
  60.00

  	
  %

  
	
  June 30, 2008

  	
   

  	
  65.00

  	
  %

  
	
  September 30, 2008

  	
   

  	
  70.00

  	
  %

  
	
  December 31, 2008

  	
   

  	
  75.00

  	
  %

  
	
  March 31, 2009

  	
   

  	
  80.00

  	
  %

  
	
  June 30, 2009

  	
   

  	
  85.00

  	
  %

  
	
  September 30, 2009

  	
   

  	
  90.00

  	
  %

  
	
  December 31, 2009

  	
   

  	
  95.00

  	
  %

  
	
  March 31, 2010

  	
   

  	
  100.00

  	
  %

  

 

(c)           Upon
the occurrence of a Sale of the Company, all Carried Common Units which have
not yet become vested shall become vested as of the date of consummation of the
Sale of the Company, if, as of such date, Executive has been continuously
employed by the Company, Employer or any of their Subsidiaries from the date of
this Agreement through and including such date.

 

(d)           Carried
Common Units that have become vested (“Vested Carried Common Units”) and
the Co-Invest Units that are Class A Common Units are referred to herein as “Vested
Common Units.”  The Vested Common
Units and the Class B Preferred Units are collectively referred to herein as “Vested
Units.”  All Carried Common Units
that have not vested are referred to herein as “Unvested Carried Common
Units.”

 

3.             Repurchase Option.

 

(a)           In
the event of a Separation, the Executive Securities (whether vested or unvested
and whether held by Executive or one or more of Executive’s transferees, other
than the 

 

4

 

Company and the Investors) will be subject to
repurchase, in each case by the Company and the Investors pursuant to the terms
and conditions set forth in this Section 3 (the “Repurchase
Option”). The Company may assign its repurchase rights set forth in this Section
3 to any Person; provided that if there is a Subsidiary Public Offering
and the securities of such Subsidiary are distributed to the members of the
Company, then such Subsidiary will be treated as the Company for purposes of
this Section 3 with respect to any repurchase of the securities of such
Subsidiary.

 

(b)           In
the event of a Separation, (i) the purchase price for each Unvested Carried
Common Unit will be the lesser of (A) Executive’s Original Cost for such unit
and (B) the Fair Market Value of such unit as of the delivery date of the
Repurchase Notice or Supplemental Repurchase Notice, as the case may be, in
either case first delivered pursuant to Section 3(c) and (ii) the
purchase price for each Vested Carried Common Unit and Co-Invest Unit will be
the Fair Market Value of such unit as of the delivery date of the Repurchase
Notice or Supplemental Repurchase Notice, as the case may be, in either case
delivered pursuant to Section 3(c); provided, however, that if
Executive’s employment is terminated with Cause, the purchase price for each
Vested Carried Common Unit will be the lesser of (A) Executive’s Original Cost
for such unit and (B) the Fair Market Value of such unit as of the delivery
date of the Repurchase Notice or Supplemental Repurchase Notice, as the case
may be.

 

(c)           In
the event of a Separation, the Company (with the approval of the Board) may
elect to purchase all or any portion of the Executive Securities pursuant to
this Section 3 by delivering written notice (the “Repurchase Notice”)
to the holder or holders of such securities within six months and 10 days after
the Separation. The Repurchase Notice will set forth the number and type (i.e.,
Unvested Carried Common Unit, Vested Carried Common Unit, Co-Invest Common Unit
or Class B Preferred Unit) of Executive Securities to be acquired from each
holder, the aggregate consideration to be paid for such units and the time and
place for the closing of the transaction. Executive Securities to be
repurchased by the Company shall first be satisfied to the extent possible from
the Executive Securities held by Executive at the time of delivery of the
Repurchase Notice. If the number of Executive Securities of the type(s) to be
repurchased by the Company then held by Executive is less than the total number
of such type(s) of the applicable Executive Securities that the Company has
elected to purchase, the Company shall purchase the remaining Executive
Securities elected to be purchased from the other holder(s) of Executive
Securities under this Agreement (i.e., Executive’s Permitted Transferees), pro
rata according to the number of Executive Securities of such type held by such
other holder(s) at the time of delivery of such Repurchase Notice (determined
as nearly as practicable to the nearest unit). The number of Unvested Carried
Common Units and Vested Common Units to be repurchased hereunder will be
allocated among Executive and the other holders of Executive Securities (if
any) pro rata according to the number of Class A Common Units to be purchased
from such Person.

 

(d)           If
for any reason the Company does not elect to purchase all of the Executive
Securities pursuant to the Repurchase Option, the Investors shall be entitled
to exercise the Repurchase Option for all or any portion of the Executive
Securities that the Company has not elected to purchase (the “Available Securities”).
As soon as practicable after the Company has determined that there will be
Available Securities, but in any event within five months after the Separation,
the Company shall give written notice (the “Option Notice”) to the
Investors setting 

 

5

 

forth the number and type (i.e., Unvested Carried
Common Unit, Vested Carried Common Unit, Co-Invest Common Unit or Class B
Preferred Unit) of Available Securities and the purchase price(s) for such
Available Securities. The Investors may elect to purchase any or all of the
Available Securities by giving written notice to the Company within six months
and 10 days after the Separation. If the Investors elect to purchase an
aggregate number of any type of the Available Securities that is greater than
the number of such type of Available Securities, the Available Securities of
such type shall be allocated among the Investors based upon the number of
Executive Securities owned by each Investor. As soon as practicable, and in any
event within ten days, after the expiration of the six-month and ten-day period
set forth above, the Company shall notify each holder of Executive Securities
as to the number and type of units being purchased from such holder by the
Investors (the “Supplemental Repurchase Notice”). At the time the
Company delivers the Supplemental Repurchase Notice to the holder(s) of
Executive Securities, the Company shall also deliver written notice to each
Investor setting forth the number and type of units such Investor is entitled
to purchase, the aggregate purchase price and the time and place of the closing
of the transaction. The number of Unvested Carried Common Units and Vested
Common Units to be repurchased hereunder shall be allocated among the Company
and the Investors pro rata according to the number of Class A Common Units to
be purchased by each of them.

 

(e)           The
closing of the purchase of the Executive Securities pursuant to the Repurchase
Option shall take place on the date designated by the Company in the Repurchase
Notice or Supplemental Repurchase Notice, which date shall not be more than one
month nor less than five days after the delivery of the later of either such
notice to be delivered. The Company will pay for the Executive Securities to be
purchased by it pursuant to the Repurchase Option by first offsetting amounts
outstanding under any bona fide debts owed by Executive to the Company, and
will pay the remainder of the purchase price by, at its option, (A) a check or
wire transfer of funds, (B) if the purchase is being made by a corporate
successor to the Company, the issuance of a subordinated promissory note of the
Company bearing interest at a rate equal to such rate as may be determined by
the Board (provided that such rate may not be less than the prime rate (as
published in The Wall Street Journal from time to time)) and having such
maturity provisions as the Company shall determine in good faith, (C) issuing
in exchange for such securities a number of the Company’s Class A Preferred
Units (having the rights and preferences set forth in the LLC Agreement) equal
to (x) the aggregate portion of the repurchase price for such Executive
Securities determined in accordance with this Section 3 to be paid by
the issuance of Class A Preferred Units divided by (y) 1,000, and for
purposes of the LLC Agreement each such Class A Preferred Unit shall as of its
issuance be deemed to have Capital Contributions (as defined in the LLC
Agreement) made with respect to such Class A Preferred Unit equal to $1,000, or
(D) any combination of (A), (B) and (C) as the Board may elect in its
discretion; provided that, to the extent that the Company has readily available
cash resources in excess of its working capital and other reasonable cash needs
and without imposing any obligation on the Company to raise financing to fund
the repurchases or to materially impair its financial liquidity or condition,
the Company shall use reasonable efforts to pay the purchase price for such
Executive Securities pursuant to the foregoing clause (A). Each Investor will
pay for the Executive Securities purchased by it by a check or wire transfer of
funds. The Company and the Investors will be entitled to receive customary
representations and warranties from the sellers regarding such sale and require
that all sellers’ signatures be guaranteed.

 

6

 

By way of example only for the purpose of clarifying
the mechanics of clause (C) of Section 3(e), if the Company intends to
repurchase Executive Securities consisting of 3,000,000 Class A Common Units by
issuance of Class A Preferred Units and the aggregate repurchase price for such
Class A Common Units determined in accordance with this Section 3 is
$400,500, then the Company would issue to Executive 400.5 Class A Preferred
Units, and for purposes of the LLC Agreement each whole Class A Preferred Unit
issued to Executive would as of its issuance be deemed to have Capital
Contributions made for such Class A Preferred Unit of $1,000, and the Capital
Contributions made for the one-half Class A Preferred Unit would be $500.

 

(f)            Notwithstanding
anything to the contrary contained in this Agreement, all repurchases of
Executive Securities by the Company pursuant to the Repurchase Option shall be
subject to applicable restrictions contained in the Delaware Limited Liability
Company Act, the Delaware General Corporation Law or such other governing
corporate or limited liability company law, and in the Company’s and its
Subsidiaries’ debt and equity financing agreements. If any such restrictions
prohibit (i) the repurchase of Executive Securities hereunder which the Company
is otherwise entitled or required to make or (ii) dividends or other transfers
of funds from one or more Subsidiaries to the Company to enable such
repurchases, then the Company may make such repurchases as soon as it is
permitted to make repurchases or receive funds from Subsidiaries under such
restrictions.

 

(g)           Notwithstanding
anything to the contrary contained in this Agreement, if the Fair Market Value
of Executive Securities is finally determined to be an amount at least 10%
greater than the per unit repurchase price for such unit of Executive
Securities in the Repurchase Notice or in the Supplemental Repurchase Notice,
each of the Company and the Investors shall have the right to revoke its
exercise of the Repurchase Option for all or any portion of the Executive
Securities elected to be repurchased by it by delivering notice of such
revocation in writing to the holders of Executive Securities during the thirty-day
period beginning on the date that the Company and/or the Investors are given
written notice that the Fair Market Value of a unit of Executive Securities was
finally determined to be an amount at least 10% greater than the per unit
repurchase price for Executive Securities set forth in the Repurchase Notice or
in the Supplemental Repurchase Notice.

 

(h)           The
provisions of this Section 3 will terminate with respect to all
Executive Securities upon the consummation of a Public Offering or a Sale of
the Company.

 

4.             Restrictions on
Transfer of Executive Securities.

 

(a)           Transfer
of Executive Securities. The holders of Executive Securities shall not
Transfer any interest in any Executive Securities, except pursuant to
(i) the provisions of Section 3 hereof, (ii) the provisions of
Section 2 of the Securityholders Agreement (a “Participating
Sale”), (iii) an Approved Sale (as defined in Section 4 of the
Securityholders Agreement), or (iv) the provisions of Section 4(b)
below.

 

(b)           Certain
Permitted Transfers. The restrictions in this Section 4 will
not apply with respect to any Transfer of Executive Securities made
(i) pursuant to applicable laws of descent and distribution or to such
Person’s legal guardian in the case of any mental incapacity or 

 

7

 

among such Person’s Family Group, or (ii) subject
to the restrictions on transfer set forth in the Registration Agreement
(including, without limitation, in Section 3 thereof) or any agreement
entered into pursuant thereto, of Class A Common Units at such time as the
Investors sell Class A Common Units in a Public Sale, but in the case of
this clause (ii) only an amount of Class A Common Units (the “Transfer
Amount”) equal to the lesser of (A) the sum of the number of Vested Carried
Common Units and Co-Invest Common Units owned by Executive and (B) the product
of (I) the number of Class A Common Units owned by Executive and (II) a
fraction (the “Transfer Fraction”), the numerator of which is the number
of Class A Common Units sold by the Investors in such Public Sale and the
denominator of which is the total number of Class A Common Units held by the
Investors prior to such Public Sale; provided that, if at the time of a
Public Sale of units by the Investors, Executive chooses not to Transfer the
Transfer Amount, Executive shall retain the right to Transfer an amount of
Class A Common Units at a future date equal to the lesser of (x) the sum of the
number of Vested Carried Common Units and Co-Invest Common Units owned by
Executive at such future date and (y) the product of the number of Class A
Common Units owned by Executive at such future date and the Transfer Fraction; provided
further that the restrictions contained in this Section 4 will
continue to be applicable to the Executive Securities after any Transfer of the
type referred to in clause (i) above and the transferees of such
Executive Securities must agree in writing to be bound by the provisions of
this Agreement. Any transferee of Executive Securities pursuant to a Transfer
in accordance with the provisions of clause (i) of this Section 4(b)
is herein referred to as a “Permitted Transferee.”  Upon the Transfer of Executive Securities
pursuant to this Section 4(b), the transferring holder of Executive
Securities will deliver a written notice (a “Transfer Notice”) to the
Company. In the case of a Transfer pursuant to clause (i) hereof, the
Transfer Notice will disclose in reasonable detail the identity of the
Permitted Transferee(s).

 

(c)           Termination
of Restrictions. The restrictions set forth in this Section 4
will continue with respect to each unit of Executive Securities until the
earlier of (i) the date on which such unit of Executive Securities has
been transferred in a Public Sale permitted by this Section 4, or
(ii) the consummation of a Sale of the Company.

 

5.             Additional
Restrictions on Transfer of Executive Securities.

 

(a)           Legend.
The certificates representing the Executive Securities will bear a legend in
substantially the following form:

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE WERE
ORIGINALLY ISSUED AS OF APRIL 13, 2006, HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY NOT BE SOLD OR
TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT
OR AN EXEMPTION FROM REGISTRATION THEREUNDER. THE SECURITIES REPRESENTED BY
THIS CERTIFICATE ARE ALSO SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER,
CERTAIN REPURCHASE OPTIONS AND CERTAIN OTHER AGREEMENTS SET FORTH IN AN AMENDED
AND RESTATED SENIOR MANAGEMENT AGREEMENT BETWEEN THE COMPANY AND AN EXECUTIVE
OF THE COMPANY AND OTHER PARTIES, DATED AS OF APRIL 13, 2006, AS 

 

8

 

AMENDED. A COPY OF SUCH AGREEMENT MAY BE OBTAINED BY
THE HOLDER HEREOF AT THE COMPANY’S PRINCIPAL PLACE OF BUSINESS WITHOUT CHARGE.”

 

(b)           Opinion
of Counsel. No holder of Executive Securities may Transfer any Executive
Securities (except pursuant to Section 3 or 4(b) of this Agreement, Section
4 of the Securityholders Agreement or an effective registration statement
under the Securities Act) without first delivering to the Company a written
notice describing in reasonable detail the proposed Transfer, together with an
opinion of counsel (reasonably acceptable in form and substance to the Company)
that neither registration nor qualification under the Securities Act and
applicable state securities laws is required in connection with such transfer. In
addition, if the holder of the Executive Securities delivers to the Company an
opinion of counsel that no subsequent Transfer of such Executive Securities
shall require registration under the Securities Act, the Company shall promptly
upon such contemplated Transfer deliver new certificates for such Executive Securities
that do not bear the Securities Act portion of the legend set forth in Section
5(a). If the Company is not required to deliver new certificates for such
Executive Securities not bearing such legend, the holder thereof shall not
Transfer the same until the prospective transferee has confirmed to the Company
in writing its agreement to be bound by the conditions contained in this Section
5.

 

PROVISIONS RELATING TO EMPLOYMENT

 

6.             Employment.         Employer agrees to employ
Executive and Executive accepts such employment for the period beginning as of
the date hereof and ending upon his separation pursuant to Section 6(c)
hereof (the “Employment Period”).

 

(a)           Position
and Duties.

 

(i)            During
the Employment Period, Executive shall serve as the Vice President of Employer
and shall have the normal duties, responsibilities and authority implied by
such position, subject to the power of Employer’s Chief Executive Officer and
the Board to expand or limit such duties, responsibilities and authority and to
override actions of the Vice President.

 

(ii)           Executive
shall report to Employer’s Chief Executive Officer, and Executive shall devote
his reasonable efforts and his full business time and attention to the business
and affairs of the Company, Employer and their Subsidiaries.

 

(b)           Salary,
Bonus and Benefits. During the Employment Period, Employer will pay
Executive a base salary of $200,000 per annum (the “Annual Base Salary”).
During the Employment Period, beginning with the fiscal year ending June 30,
2007 and for each fiscal year thereafter, Executive shall be eligible for an
annual bonus (“Annual Bonus”) in an amount up to 35% of the Annual Base
Salary based upon the achievement by the Company, Employer and their
Subsidiaries of financial and other objectives set by the Board. An Annual
Bonus, if any, will be paid to Executive by Employer 120 days after the end of
the fiscal year to which such Annual Bonus relates.

 

9

 

(c)           Separation.
The Employment Period will continue until (i) Executive’s resignation,
Disability or death, or (ii) Employer’s Chief Executive Officer or the
Board decides to terminate Executive’s employment with or without Cause. If
Executive’s employment is terminated by Employer without Cause or by Executive
with Good Reason, then during the five-month period commencing on the date of
termination subject to extension pursuant to the following sentence (the “Severance
Period”), Employer shall pay to Executive an aggregate amount equal to 42%
of his Annual Base Salary, payable in equal installments on the Employer’s
regular salary payment dates (the “Wage Severance”), and Executive shall
continue to participate in employee benefit programs for senior executive
employees (other than bonus and incentive compensation plans) to the extent
permitted under the terms of such programs and under applicable law
(collectively, the “Severance Payments”). In addition, Employer shall
have the option, by delivering written notice to the Executive within four
months after the Separation to extend the Severance Period for an additional
twelve-month period during which time the Company shall continue to make
Severance Payments to Executive at the same annual rate (pro rated as
applicable). Notwithstanding the foregoing, (A) Executive shall not be entitled
to receive any payments pursuant to this Section 6(c) unless Executive
has executed and delivered to Employer a general release in form and substance
satisfactory to Employer and (B) Executive shall be entitled to receive such
payments only so long as Executive has not breached the provisions of Sections
7 or 8 hereof.

 

7.             Confidential
Information.

 

(a)           Obligation
to Maintain Confidentiality. Executive acknowledges that the information,
observations and data (including trade secrets) of a confidential, proprietary
or secret nature obtained by him during the course of his performance under
this Agreement concerning the business or affairs of the Company, Employer and
their respective Subsidiaries and Affiliates (“Confidential Information”)
are the property of the Company, Employer or such Subsidiaries and Affiliates,
including information concerning acquisition opportunities in or reasonably
related to the Company’s and Employer’s business or industry of which Executive
becomes aware during the Employment Period. Therefore, Executive agrees that he
will not disclose to any unauthorized Person or use for his own account any
Confidential Information without the Board’s written consent, unless and to the
extent that the Confidential Information, (i) becomes generally known to and
available for use by the public other than as a result of Executive’s acts or
omissions to act, (ii) was known to Executive prior to Executive’s employment
with Employer, the Company or any of their Subsidiaries and Affiliates, or
(iii) is required to be disclosed pursuant to any applicable law or court order.
Executive shall deliver to the Company at a Separation, or at any other time
the Company may request, all memoranda, notes, plans, records, reports, computer
tapes, printouts and software and other documents and data (and copies thereof)
relating to the Confidential Information, Work Product (as defined below) or
the business of the Company, Employer and their respective Subsidiaries and
Affiliates (including, without limitation, all acquisition prospects, lists and
contact information) which he may then possess or have under his control.

 

(b)           Ownership
of Property. Executive acknowledges that all discoveries, concepts, ideas,
inventions, innovations, improvements, developments, methods, processes,
programs, designs, analyses, drawings, reports, patent applications,
copyrightable work and mask work (whether or not including any confidential
information) and all registrations or applications 

 

10

 

related thereto, all other proprietary information and
all similar or related information (whether or not patentable) that relate to
the Company’s, Employer’s or any of their respective Subsidiaries’ or
Affiliates’ actual or anticipated business, research and development, or
existing or future products or services and that are conceived, developed,
contributed to, made, or reduced to practice by Executive (either solely or
jointly with others) while employed by the Company, Employer or any of their
respective Subsidiaries or Affiliates (including any of the foregoing that
constitutes any proprietary information or records) (“Work Product”)
belong to the Company, Employer or such Subsidiary or Affiliate and Executive
hereby assigns, and agrees to assign, all of the above Work Product to the
Company, Employer or to such Subsidiary or Affiliate. Any copyrightable work
prepared in whole or in part by Executive in the course of his work for any of
the foregoing entities shall be deemed a “work made for hire” under the
copyright laws, and the Company, Employer or such Subsidiary or Affiliate shall
own all rights therein. To the extent that any such copyrightable work is not a
“work made for hire,” Executive hereby assigns and agrees to assign to the
Company, Employer or such Subsidiary or Affiliate all right, title, and
interest, including without limitation, copyright in and to such copyrightable
work. Executive shall promptly disclose such Work Product and copyrightable
work to the Board and perform all actions reasonably requested by the Board
(whether during or after the Employment Period) to establish and confirm the
Company’s, Employer’s or such Subsidiary’s or Affiliate’s ownership (including,
without limitation, assignments, consents, powers of attorney, and other
instruments). Executive understands, however, that there is no obligation being
imposed on him to assign to the Company or any Subsidiary or Affiliate, any
invention falling within the definition of Work Product for which no equipment,
supplies, facility, or trade secret information of the Company or any of its
Subsidiaries or Affiliates was used and that was developed entirely on his own
time, unless:  (i) such Work Product relates
(A) to the Company’s, or its Subsidiaries’ or Affiliates’ businesses or (B) to
their actual or demonstrably anticipated research or development, or (ii) the
Work Product results from any work performed by him for them under this
Agreement. Executive has identified on the signature page to this Agreement all
Work Product that is or was owned by him or was written, discovered, made,
conceived or first reduced to practice by him alone or jointly with another
person prior to his employment under this Agreement. If no such Work Product is
listed, Executive represents to the Company that he does not now nor has he
ever owned, nor has he made, any such Work Product.

 

(c)           Third
Party Information. Executive understands that the Company, Employer and
their respective Subsidiaries and Affiliates will receive from third parties
confidential or proprietary information (“Third Party Information”)
subject to a duty on the Company’s, Employer’s and their respective
Subsidiaries and Affiliates’ part to maintain the confidentiality of such
information and to use it only for certain limited purposes. During the
Employment Period and thereafter, and without in any way limiting the
provisions of Section 7(a) above, Executive will hold Third Party
Information in the strictest confidence and will not disclose to anyone (other
than personnel and consultants of the Company, Employer or their respective
Subsidiaries and Affiliates who need to know such information in connection
with their work for the Company, Employer or their respective Subsidiaries and
Affiliates) or use, except in connection with his work for the Company,
Employer or their respective Subsidiaries and Affiliates, Third Party
Information unless expressly authorized by a member of the Board in writing.

 

(d)           Use
of Information of Prior Employers. During the Employment Period, Executive
will not improperly use or disclose any confidential information or trade
secrets, if 

 

11

 

any, of any former employers or any other Person to
whom Executive has an obligation of confidentiality, and will not bring onto
the premises of the Company, Employer or any of their respective Subsidiaries
or Affiliates any unpublished documents or any property belonging to any former
employer or any other Person to whom Executive has an obligation of
confidentiality unless consented to in writing by the former employer or Person.
Executive will use in the performance of his duties only information which is
(i) generally known and used by persons with training and experience comparable
to Executive’s and which is (x) common knowledge in the industry or (y) is
otherwise legally in the public domain, (ii) is otherwise provided or developed
by the Company, Employer or any of their respective Subsidiaries or Affiliates
or (iii) in the case of materials, property or information belonging to any
former employer or other Person to whom Executive has an obligation of
confidentiality, approved for such use in writing by such former employer or
Person.

 

8.             Restrictive
Covenants. Executive acknowledges that in the course of his employment with
Employer he will become familiar with the Company’s, Employer’s and their
respective Subsidiaries’ trade secrets and with other confidential information
concerning the Company, Employer and such Subsidiaries and that his services
will be of special, unique and extraordinary value to the Company, Employer and
such Subsidiaries. Therefore, Executive agrees that:

 

(a)           Nonsolicitation.
During the Employment Period and (x) during the Severance Period if the
Employment Period is terminated by the Company or Employer without Cause or by
Executive with Good Reason, or (y) for a period of two years thereafter if the
Employment Period is terminated by Executive, the Company or Employer for any
other reason, Executive shall not directly or indirectly through another entity
(i) induce or attempt to induce any employee of the Company, Employer or
their respective Subsidiaries to leave the employ of the Company, Employer or
such Subsidiary, or in any way interfere with the relationship between the
Company, Employer and any of their respective Subsidiaries and any employee
thereof (which restriction shall not preclude placing advertisements in trade
publications or similar general solicitations for employment, so long as such advertisements
or solicitations do not target any employee of the Company, Employer or their
respective Subsidiaries), (ii) hire any person who was an employee of the
Company, Employer or any of their respective Subsidiaries within 180 days after
such person ceased to be an employee of the Company, Employer or any of their
respective Subsidiaries, (iii) induce or attempt to induce any customer,
supplier, licensee or other business relation of the Company, Employer or any
of their respective Subsidiaries to cease doing business with the Company,
Employer or such Subsidiary or in any way interfere with the relationship
between any such customer, supplier, licensee or business relation and the
Company, Employer and any Subsidiary, in each case, if any such inducement,
attempted inducement or interference would involve, use or rely upon any of the
Company’s, Employer’s or any of their respective Subsidiaries’ trade secrets or
other confidential information or (iv) directly or indirectly acquire or
attempt to acquire an interest in any business relating to the business of the
Company, Employer or any of their respective Subsidiaries and with which the
Company, Employer and any of their respective Subsidiaries has engaged in
discussions regarding the acquisition of an interest in such business or has
requested and received information relating to the acquisition of such business
by the Company, Employer or any of their respective Subsidiaries in the two
year period immediately preceding a Separation.

 

12

 

(b)           Enforcement.
If, at the time of enforcement of Section 7 or this Section 8,
a court holds that the restrictions stated herein are unreasonable under
circumstances then existing, the parties hereto agree that the maximum
duration, scope or geographical area reasonable under such circumstances shall
be substituted for the stated period, scope or area and that the court shall be
allowed to revise the restrictions contained herein to cover the maximum
duration, scope and area permitted by law. Because Executive’s services are
unique and because Executive has access to confidential information, the
parties hereto agree that money damages would be an inadequate remedy for any
breach of this Agreement. Therefore, in the event a breach or threatened breach
of this Agreement, the Company, Employer, their respective Subsidiaries or
their successors or assigns may, in addition to other rights and remedies
existing in their favor, apply to any court of competent jurisdiction for specific
performance and/or injunctive or other relief in order to enforce, or prevent
any violations of, the provisions hereof (without posting a bond or other
security).

 

(c)           Additional
Acknowledgments. Executive acknowledges that the provisions of this Section
8 are in consideration of: 
(i) employment with the Employer, (ii) the issuance of the
Executive Securities by the Company and (iii) additional good and valuable
consideration as set forth in this Agreement. In addition, Executive agrees and
acknowledges that the restrictions contained in Section 7 and this Section 8
do not preclude Executive from earning a livelihood, nor do they unreasonably
impose limitations on Executive’s ability to earn a living. In addition,
Executive acknowledges (i) that the business of the Company, Employer and their
respective Subsidiaries will be conducted throughout the United States and
other jurisdictions where the Company, Employer or their respective
Subsidiaries conduct business during the Employment Period, (ii) notwithstanding
the state of organization or principal office of the Company, Employer or any
of their respective Subsidiaries, or any of their respective executives or
employees (including the Executive), it is expected that the Company and
Employer will have business activities and have valuable business relationships
within its industry throughout the United States and other jurisdictions where
the Company, Employer or their respective Subsidiaries conduct business during
the Employment Period, and (iii) as part of his responsibilities, Executive
will be traveling throughout the United States and other jurisdictions where
the Company, Employer or their respective Subsidiaries conduct business during
the Employment Period in furtherance of Employer’s business and its
relationships. Executive agrees and acknowledges that the potential harm to the
Company and Employer of the non-enforcement of Section 7 and this Section
8 outweighs any potential harm to Executive of its enforcement by
injunction or otherwise. Executive acknowledges that he has carefully read this
Agreement and has given careful consideration to the restraints imposed upon
Executive by this Agreement, and is in full accord as to their necessity for
the reasonable and proper protection of confidential and proprietary
information of the Company and Employer now existing or to be developed in the
future. Executive expressly acknowledges and agrees that each and every
restraint imposed by this Agreement is reasonable with respect to subject
matter, time period and geographical area.

 

13

 

GENERAL PROVISIONS

 

9.             Definitions.

 

“Affiliate” means, (i) with respect to any
Person, any Person that controls, is controlled by or is under common control
with such Person or an Affiliate of such Person, and (ii) with respect to any
Investor, any general or limited partner of such Investor, any employee or
owner of any such partner, or any other Person controlling, controlled by or
under common control with such Investor; it being understood and agreed that
GTCR I and its Affiliates shall for all purposes hereunder shall be Affiliates
of GTCR II.

 

“Board” means the Company’s board of managers.

 

“Cause” means (i) the commission of a
felony or a crime involving moral turpitude or the commission of any other act
or omission involving dishonesty or fraud with respect to the Company, Employer
or any of their respective Subsidiaries or any of their customers or suppliers,
(ii) substantial and repeated failure to perform duties of the office held by
Executive as reasonably directed by the Board, (iii) gross negligence or
willful misconduct with respect to the Company, Employer or any of their
respective Subsidiaries, (iv) conduct tending to bring the Company, Employer or
any of their respective Subsidiaries into substantial public disgrace or
disrepute, and (v) any breach by Executive of Sections 6(a)(ii),
7 or 8 of this Agreement.

 

“Class A Common Units” means the Class A Common
Units of the Company having the rights and obligations set forth in the LLC
Agreement.

 

“Class B Preferred Units” means the Class B
Preferred Units of the Company having the rights and obligations set forth in
the LLC Agreement.

 

“Disability” means
the disability of Executive caused by any physical or mental injury, illness or
incapacity as a result of which Executive is or will be unable to effectively
perform the essential functions of Executive’s duties for a continuous period
of more than 60 days or for 90 days (whether or not continuous) within a 180
day period, as determined by the Board in good faith.

 

“Executive Securities” will continue to be
Executive Securities in the hands of any holder other than Executive (except
for the Company and the Investors and except for transferees in a Public Sale),
and except as otherwise provided herein, each such other holder of Executive
Securities will succeed to all rights and obligations attributable to Executive
as a holder of Executive Securities hereunder. Executive Securities will also
include equity of the Company (or a corporate successor to the Company or a
Subsidiary of the Company) issued with respect to Executive Securities (i) by
way of a unit split, unit dividend, conversion, or other recapitalization, (ii)
by way of reorganization or recapitalization of the Company in connection with
the incorporation of a corporate successor prior to a Public Offering or (iii)
by way of a distribution of securities of a Subsidiary of the Company to the
members of the Company following or with respect to a Subsidiary Public
Offering. Notwithstanding the foregoing, all Unvested Carried Common Units
shall remain Unvested Carried Common Units after any Transfer thereof.

 

14

 

“Fair Market Value” of each unit of Executive
Securities means the average of the closing prices of the sales of such
Executive Securities on all securities exchanges on which such Executive
Securities may at the time be listed, or, if there have been no sales on any
such exchange on any day, the average of the highest bid and lowest asked
prices on all such exchanges at the end of such day, or, if on any day such
Executive Securities are not so listed, the average of the representative bid
and asked prices quoted in the NASDAQ System as of 4:00 P.M., New York
time, or, if on any day such Executive Securities are not quoted in the NASDAQ
System, the average of the highest bid and lowest asked prices on such day in
the domestic over-the-counter market as reported by the National Quotation
Bureau Incorporated, or any similar successor organization, in each such case
averaged over a period of 21 days consisting of the day as of which the Fair
Market Value is being determined and the 20 consecutive business days prior to
such day. If at any time such Executive Securities are not listed on any
securities exchange or quoted in the NASDAQ System or the over-the-counter
market, the Fair Market Value will be the fair value of such Executive
Securities as determined in good faith by the Board. If Executive reasonably
disagrees with such determination, Executive shall deliver to the Board a
written notice of objection within ten days after delivery of the Repurchase
Notice (or if no Repurchase Notice is delivered, then within ten days after
delivery of the Supplemental Repurchase Notice). Upon receipt of Executive’s
written notice of objection, the Board and Executive will negotiate in good
faith to agree on such Fair Market Value. If such agreement is not reached
within 30 days after the delivery of the Repurchase Notice (or if no Repurchase
Notice is delivered, then within 30 days after the delivery of the Supplemental
Repurchase Notice), Fair Market Value shall be determined by an appraiser
jointly selected by the Board and Executive, which appraiser shall submit to
the Board and Executive a report within 30 days of its engagement setting forth
such determination. If the parties are unable to agree on an appraiser within
45 days after delivery of the Repurchase Notice or the Supplemental Repurchase
Notice, within seven days, each party shall submit the names of four nationally
recognized firms that are engaged in the business of valuing non-public
securities, and each party shall be entitled to strike two names from the other
party’s list of firms, and the appraiser shall be selected by lot from the
remaining four appraisal firms. The expenses of such appraiser shall be borne
by Executive unless the appraiser’s valuation is more than 10% greater than the
amount determined by the Board, in which case the expenses of the appraiser
shall be borne by the Company. In making such appraisal, the appraiser shall
determine the fair value of the Company as a whole without discount for either
lack of control or contractual restrictions on transfer applicable to the
Executive Securities. The determination of such appraiser as to Fair Market
Value shall be final and binding upon all parties.

 

“Family Group” means a Person’s spouse and
descendants (whether natural or adopted), and any trust, family limited
partnership, limited liability company or other entity wholly owned, directly
or indirectly, by such Person or such Person’s spouse and/or descendants that
is and remains solely for the benefit of such Person and/or such Person’s
spouse and/or descendants and any retirement plan for such Person.

 

“Good Reason” means (i) a significant reduction
in Executive’s Annual Base Salary, (ii) a material diminution in Executive’s
duties or responsibilities inconsistent with his title, or (iii) a change
in Executive’s principal office to a location more than 25 miles from 12230 El
Camino Real, Suite 200, San Diego, California, in each case without the prior
written consent of Executive; provided that written notice of Executive’s
resignation must be delivered to the 

 

15

 

Company within 30 days of
his actual knowledge of any such event in order for such resignation to be with
Good Reason for any purpose hereunder.

 

“GTCR I” means GTCR Golder Rauner, L.L.C., a
Delaware limited liability company.

 

“GTCR II” means GTCR Golder Rauner II, L.L.C.,
a Delaware limited liability company.

 

“Letter Agreement” means that certain letter
agreement, dated as of February 7, 2006, among the Company and each of the
individuals party to a Senior Management Agreement (as defined in the LLC
Agreement).

 

“LLC Agreement” means the Limited Liability
Company Agreement of the Company, as amended from time to time pursuant to its
terms.

 

“Original Cost” means, with respect to each
Common Unit purchased under the Prior Senior Management Agreement or hereunder,
$0.10 (as proportionately adjusted for all subsequent unit splits, unit
dividends and other recapitalizations).

 

“Person” means an individual, a partnership, a
limited liability company, a corporation, an association, a joint stock company,
a trust, a joint venture, an unincorporated organization, investment fund, any
other business entity and a governmental entity or any department, agency or
political subdivision thereof.

 

“Public Offering” means the sale in an
underwritten public offering registered under the Securities Act of equity
securities of the Company or a corporate successor to the Company.

 

“Public Sale” means (i) any sale pursuant
to a registered public offering under the Securities Act or (ii) any sale
to the public pursuant to Rule 144 promulgated under the Securities Act
effected through a broker, dealer or market maker (other than pursuant to Rule
144(k) prior to a Public Offering).

 

“Registration Agreement” means the Registration
Rights Agreement, dated as of April 1, 2005, among the Company and certain of
its securityholders, as amended from time to time pursuant to its terms.

 

“Sale of the Company” means any transaction or
series of related transactions pursuant to which any Person or group of related
Persons other than, except for purposes of Section 2(d), the Investors
or their Affiliates in the aggregate acquire(s) (i) equity securities of
the Company possessing the voting power (other than voting rights accruing only
in the event of a default, breach or event of noncompliance) to elect a
majority of the Board (whether by merger, consolidation, reorganization,
combination, sale or transfer of the Company’s equity, securityholder or voting
agreement, proxy, power of attorney or otherwise) or (ii) all or
substantially all of the Company’s assets determined on a consolidated basis; provided
that a Public Offering shall not constitute a Sale of the Company.

 

16

 

“Securities Act” means the Securities Act of
1933, as amended from time to time.

 

“Securityholders Agreement” means the
Securityholders Agreement, dated as of April 1, 2005, among the Company and
certain of its securityholders, as amended from time to time pursuant to its
terms.

 

“Separation” means Executive ceasing to be
employed by the Company, Employer or any of their respective Subsidiaries for
any reason.

 

“Subsidiary” means, with respect to any Person,
any corporation, limited liability company, partnership, association, or
business entity of which (i) if a corporation, a majority of the total
voting power of shares of stock entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers, or trustees
thereof is at the time owned or controlled, directly or indirectly, by that
Person or one or more of the other Subsidiaries of that Person or a combination
thereof, or (ii) if a limited liability company, partnership, association,
or other business entity (other than a corporation), a majority of partnership
or other similar ownership interest thereof is at the time owned or controlled,
directly or indirectly, by that Person or one or more Subsidiaries of that
Person or a combination thereof. For purposes hereof, a Person or Persons shall
be deemed to have a majority ownership interest in a limited liability company,
partnership, association, or other business entity (other than a corporation)
if such Person or Persons shall be allocated a majority of limited liability
company, partnership, association, or other business entity gains or losses or
shall be or control any managing director or general partner of such limited
liability company, partnership, association, or other business entity. For
purposes hereof, references to a “Subsidiary” of any Person shall be
given effect only at such times that such Person has one or more Subsidiaries,
and, unless otherwise indicated, the term “Subsidiary” refers to a
Subsidiary of the Company.

 

“Subsidiary Public Offering” means the sale in
an underwritten public offering registered under the Securities Act of equity
securities of Employer or another Subsidiary of the Company.

 

“Transfer” means to sell, transfer, assign,
pledge or otherwise dispose of (whether with or without consideration and
whether voluntarily or involuntarily or by operation of law).

 

10.           Notices. All
notices, demands or other communications to be given or delivered under or by
reason of the provisions of this Agreement shall be in writing and shall be
deemed to have been given when (i) delivered personally to the recipient, (ii)
sent to the recipient by reputable express courier service (charges prepaid),
(iii) mailed to the recipient by certified or registered mail, return receipt
requested and postage prepaid, or (iv) telecopied to the recipient (with hard
copy sent to the recipient by reputable overnight courier service (charges
prepaid) that same day) if telecopied before 5:00 p.m. Chicago, Illinois time
on a business day, and otherwise on the next business day. Such notices,
demands and other communications shall be sent to the parties at the addresses
indicated below:

 

17

 

If to Employer:

 

Solera, Inc.

12230 El Camino Real, Suite 200

San Diego, CA 
92130

Attention:  Chief
Executive Officer

Facsimile:  (858) 812-3011

 

with copies to:

 

GTCR Fund VIII, L.P.,
GTCR Fund VIII/B, L.P., and

GTCR Co-Invest II, L.P.

c/o GTCR Golder Rauner
II, L.L.C.

6100 Sears Tower

Chicago, Illinois  60606-6402

Attention:  Philip
A. Canfield

Craig A. Bondy

Facsimile: (312)
382-2201

 

 

Kirkland & Ellis
LLP

200 East Randolph Drive

Chicago, Illinois  60601

Attention:  Stephen
L. Ritchie, P.C.

Facsimile: (312)
861-2200

 

If to the Company:

 

Solera Holdings, LLC

12230 El Camino
Real, Suite 200

San Diego, CA  92130

Attention:  Chief
Executive Officer

Facsimile:  (858) 812-3011

 

with copies to:

 

GTCR Golder Rauner II,
L.L.C.

6100 Sears Tower

Chicago, Illinois  60606-6402

Attention:  Philip
A. Canfield

Craig A. Bondy

Facsimile: (312)
382-2201

 

and

 

18

 

Kirkland & Ellis
LLP

200 East Randolph Drive

Chicago, Illinois  60601

Attention:  Stephen
L. Ritchie, P.C.

Facsimile: (312)
861-2200

 

If to Executive:

 

Michael Conway

6393 Paseo Aspada

Carlsbad, CA  92009

Facsimile:  (858) 724-1614

 

If to the Investors:

 

GTCR Golder Rauner II,
L.L.C.

6100 Sears Tower

Chicago, Illinois  60606-6402

Attention:  Philip
A. Canfield

Craig A. Bondy

Facsimile: (312)
382-2201

 

with a copy to:

 

Kirkland & Ellis
LLP

200 East Randolph Drive

Chicago, Illinois  60601

Attention:  Stephen
L. Ritchie, P.C.

Facsimile: (312)
861-2200

 

or such other address or
to the attention of such other Person as the recipient party shall have
specified by prior written notice to the sending party.

 

11.           General Provisions.

 

(a)           Transfers
in Violation of Agreement. Any Transfer or attempted Transfer of any
Executive Securities in violation of any provision of this Agreement shall be
void, and the Company shall not record such Transfer on its books or treat any
purported transferee of such Executive Securities as the owner of such equity
for any purpose.

 

(b)           Severability.
Whenever possible, each provision of this Agreement will be interpreted in such
manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be invalid, illegal or unenforceable in any
respect under any applicable law or rule in any jurisdiction, such invalidity,
illegality or unenforceability will not affect any other provision or any other
jurisdiction, but this Agreement will be reformed, construed and enforced in
such jurisdiction as if such invalid, illegal or unenforceable provision had
never been contained herein.

 

19

 

(c)           Complete
Agreement. The Prior Senior Management Agreement is amended, restated and
superseded by this Agreement in its entirety; provided that, notwithstanding
the foregoing or anything else to the contrary in this Agreement, nothing
herein shall relieve any party from any liability for any breach prior to the
date hereof of the Prior Senior Management Agreement and any provision so
breached shall not be superseded by this Agreement for purposes of actions
taken in connection with such breach and liabilities related thereto and the
rights of the parties hereto under Section 1(e) of the Prior Senior
Management Agreement shall survive this amendment and restatement. This
Agreement, those documents expressly referred to herein and other documents of
even date herewith embody the complete agreement and understanding among the
parties and supersede and preempt any prior understandings, agreements or
representations by or among the parties, written or oral, which may have
related to the subject matter hereof in any way, including, but not limited to,
the Letter Agreement.

 

(d)           No
Strict Construction. The language used in this Agreement shall be deemed to
be the language chosen by the parties hereto to express their mutual intent,
and no rule of strict construction shall be applied against any party.

 

(e)           Counterparts.
This Agreement may be executed in separate counterparts (including by means of
facsimile), each of which is deemed to be an original and all of which taken
together constitute one and the same agreement.

 

(f)            Successors
and Assigns. Except as otherwise provided herein, this Agreement shall bind
and inure to the benefit of and be enforceable by Executive, the Company,
Employer, the Investors and their respective successors and assigns (including
subsequent holders of Executive Securities); provided that the rights
and obligations of Executive under this Agreement shall not be assignable
except in connection with a permitted transfer of Executive Securities
hereunder.

 

(g)           Choice
of Law. The law of the State of Delaware will govern all questions
concerning the relative rights of the Company, Employer and its securityholders.
All other questions concerning the construction, validity and interpretation of
this Agreement and the exhibits hereto will be governed by and construed in
accordance with the internal laws of the State of Delaware, without giving
effect to any choice of law or conflict of law provision or rule (whether of
the State of Delaware or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of Delaware.

 

(h)           MUTUAL
WAIVER OF JURY TRIAL. BECAUSE
DISPUTES ARISING IN CONNECTION WITH COMPLEX TRANSACTIONS ARE MOST QUICKLY AND
ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH
APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE
PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH
APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF
THE JUDICIAL SYSTEM AND OF ARBITRATION, EACH PARTY TO THIS AGREEMENT HEREBY
WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT
TO RESOLVE ANY DISPUTE BETWEEN OR AMONG ANY OF THE PARTIES HERETO, WHETHER
ARISING IN CONTRACT, TORT, OR OTHERWISE, ARISING OUT OF, 

 

20

 

CONNECTED WITH, RELATED OR INCIDENTAL TO THIS
AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREBY AND/OR THE RELATIONSHIP
ESTABLISHED AMONG THE PARTIES HEREUNDER.

 

(i)            Executive’s
Cooperation. During the Employment Period and thereafter, Executive shall
cooperate with the Company, Employer and their respective Subsidiaries and
Affiliates in any disputeswith
third parties, internal investigation or administrative, regulatory or judicial
proceeding as reasonably requested by the Company (including, without
limitation, Executive being available to the Company upon reasonable notice for
interviews and factual investigations, appearing at the Company’s request to
give testimony without requiring service of a subpoena or other legal process,
volunteering to the Company all pertinent information and turning over to the
Company all relevant documents which are or may come into Executive’s
possession, all at times and on schedules that are reasonably consistent with
Executive’s other permitted activities and commitments). In the event the
Company requires Executive’s cooperation in accordance with this paragraph
during the Employment Period or the Severance Period, the Company shall
reimburse Executive solely for reasonable travel expenses (including lodging
and meals, upon submission of receipts). In the event the Company requires
Executive’s cooperation in accordance with this paragraph after the Severance
Period, the Company shall reimburse Executive for reasonable travel expenses
(including lodging and meals, upon submission of receipts) and compensate
Executive at a reasonable rate for such cooperation, as determined by mutual
agreement of the Company and Executive.

 

(j)            Remedies.
Each of the parties to this Agreement (and the Investors as third-party
beneficiaries) will be entitled to enforce its rights under this Agreement
specifically, to recover damages and costs (including attorney’s fees) caused
by any breach of any provision of this Agreement and to exercise all other
rights existing in its favor. The parties hereto agree and acknowledge that
money damages may not be an adequate remedy for any breach of the provisions of
this Agreement and that any party may in its sole discretion apply to any court
of law or equity of competent jurisdiction (without posting any bond or deposit)
for specific performance and/or other injunctive relief in order to enforce or
prevent any violations of the provisions of this Agreement.

 

(k)           Amendment
and Waiver. The provisions of this Agreement may be amended and waived only
with the prior written consent of the Company, Employer, Executive and the
Majority Holders (as defined in the Purchase Agreement).

 

(l)            Insurance.
The Company, at its discretion, may apply for and procure in its own name and
for its own benefit life and/or disability insurance on Executive in any amount
or amounts considered available. Executive agrees to cooperate in any
reasonable medical or other examination, supply any information, and to execute
and deliver any applications or other instruments in writing as may be reasonably
necessary to obtain and constitute such insurance. Executive hereby represents
that he has no reason to believe that his life is not insurable at rates now
prevailing for healthy men of his age.

 

(m)          Business
Days. If any time period for giving notice or taking action hereunder
expires on a day which is a Saturday, Sunday or holiday in the state in which
the Company’s

 

21

 

chief executive office is located, the time period
shall be automatically extended to the business day immediately following such
Saturday, Sunday or holiday.

 

(n)           Indemnification
and Reimbursement of Payments on Behalf of Executive. The Company and its
Subsidiaries shall be entitled to deduct or withhold from any amounts owing
from the Company or any of its Subsidiaries to Executive any federal, state,
local or foreign withholding taxes, excise taxes, or employment taxes (“Taxes”)
imposed with respect to Executive’s compensation or other payments from the
Company or its Subsidiaries or Executive’s ownership interest in the Company,
including, without limitation, wages, bonuses, dividends, the receipt or
exercise of equity options and/or the receipt or vesting of restricted equity. In
the event the Company or its Subsidiaries does not make such deductions or
withholdings, Executive shall indemnify the Company and its Subsidiaries for
any amounts paid with respect to any such Taxes, together with any interest,
penalties and related expenses thereto.

 

(o)           Reasonable
Expenses. Employer agrees to pay the reasonable fees and expenses of
Executive’s counsel arising in connection with the negotiation and execution of
this Agreement and the consummation of the transactions contemplated by this
Agreement.

 

(p)           Termination.
This Agreement (except for the provisions of Sections 6(a) and (b))
shall survive a Separation and shall remain in full force and effect after such
Separation.

 

(q)           Adjustments
of Numbers. All numbers set forth herein that refer to unit prices or
amounts will be appropriately adjusted to reflect unit splits, unit dividends,
combinations of units and other recapitalizations affecting the subject class
of equity.

 

(r)            Deemed
Transfer of Executive Securities. If the Company (and/or the Investors
and/or any other Person acquiring securities) shall make available, at the time
and place and in the amount and form provided in this Agreement, the
consideration for the Executive Securities to be repurchased in accordance with
the provisions of this Agreement, then from and after such time, the Person
from whom such units are to be repurchased shall no longer have any rights as a
holder of such units (other than the right to receive payment of such
consideration in accordance with this Agreement), and such units shall be
deemed purchased in accordance with the applicable provisions hereof and the
Company (and/or the Investors and/or any other Person acquiring securities)
shall be deemed the owner and holder of such units, whether or not the
certificates therefor have been delivered as required by this Agreement.

 

(s)           No
Pledge or Security Interest. The purpose of the Company’s retention of
Executive’s certificates and executed security powers is solely to facilitate
the provisions set forth in Section 3 herein and Section 4 of the
Securityholders Agreement and does not by itself constitute a pledge by
Executive of, or the granting of a security interest in, the underlying equity.

 

(t)            Rights
Granted to GTCR and its Affiliates. Any rights granted to GTCR and its
Affiliates hereunder may also be exercised (in whole or in part) by their
designees.

 

(u)           Subsidiary
Public Offering. If, after consummation of a Subsidiary Public Offering,
the Company distributes securities of such Subsidiary to members of the
Company, then such securities will be treated in the same manner as (but
excluding any “preferred” features

 

22

 

of the units with
respect to which they were distributed) the units with respect to which they
were distributed for purposes of Sections 1, 2, 3, 4
and 5 hereof.

 

(v)           Delivery
by Facsimile. This Agreement, the agreements referred to herein, and each
other agreement or instrument entered into in connection herewith or therewith
or contemplated hereby or thereby, and any amendments hereto or thereto, to the
extent signed and delivered by means of a facsimile machine, shall be treated
in all manner and respects as an original agreement or instrument and shall be
considered to have the same binding legal effect as if it were the original
signed version thereof delivered in person. At the request of any party hereto
or to any such agreement or instrument, each other party hereto or thereto
shall reexecute original forms thereof and deliver them to all other parties. No
party hereto or to any such agreement or instrument shall raise the use of a
facsimile machine to deliver a signature or the fact that any signature or
agreement or instrument was transmitted or communicated through the use of a
facsimile machine as a defense to the formation or enforceability of a contract
and each such party forever waives any such defense.

 

*     *    
*     *     *

 

23

 

IN WITNESS WHEREOF, the parties hereto have executed
this Amended and Restated Senior Management Agreement on the date first above
written.

 

	
   

  	
  SOLERA
  HOLDINGS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tony Aquila

  
	
   

  	
  Name:

  	
  Tony Aquila

  
	
   

  	
  Its:

  	
  Chief Executive
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SOLERA,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tony Aquila

  
	
   

  	
  Name:

  	
  Tony Aquila

  
	
   

  	
  Its:

  	
  Chief Executive
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Michael Conway

  
	
   

  	
  MICHAEL
  CONWAY

  

 

 

Signature Page to Amended
and Restated Senior Management Agreement of Michael Conway

 

24

 

	
  Agreed and Accepted:

  
	
  THE INVESTORS:

  
	
   

  	
   

  
	
  GTCR FUND VIII, L.P.

  
	
   

  	
   

  
	
  By:

  	
  GTCR Partners VIII,
  L.P.

  
	
  Its:

  	
  General Partner

  
	
   

  	
   

  
	
  By:

  	
  GTCR Golder Rauner II,
  L.L.C.

  
	
  Its:

  	
  General Partner

  
	
   

  	
   

  
	
  By:

  	
  /s/ Philip A. Canfield

  	
   

  
	
  Name:

  	
  Philip A. Canfield

  
	
  Its:

  	
  Principal

  
	
   

  	
   

  
	
   

  	
   

  
	
  GTCR FUND VIII/B, L.P.

  
	
   

  	
   

  
	
  By:

  	
  GTCR Partners VIII,
  L.P.

  
	
  Its:

  	
  General Partner

  
	
   

  	
   

  
	
  By:

  	
  GTCR Golder Rauner II,
  L.L.C.

  
	
  Its:

  	
  General Partner

  
	
   

  	
   

  
	
  By:

  	
  /s/ Philip A. Canfield

  	
   

  
	
  Name:

  	
  Philip A. Canfield

  
	
  Its:

  	
  Principal

  
	
   

  	
   

  
	
   

  	
   

  
	
  GTCR CO-INVEST II, L.P.

  
	
   

  	
   

  
	
  By:

  	
  GTCR Golder Rauner II,
  L.L.C.

  
	
  Its:

  	
  General Partner

  
	
   

  	
   

  
	
  By:

  	
  /s/ Philip A. Canfield

  	
   

  
	
  Name:

  	
  Philip A. Canfield

  
	
  Its:

  	
  Principal

  
				

 

 

Signature Page to Amended
and Restated Senior Management Agreement of Michael Conway

 

25

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